Sponsor (July-Dec 1951)

information. It is hoped that this data, result of an intensive check-up of leading reps, stations, agencies, and networks, will act as a convenient yardstick against which an advertiser can measure his future television plans. Who's affected? The station reps are not wooing every advertiser on the TV webs. For many sponsors, even the reps admit, network TV is better — under certain circumstances. Since networks are much more active in packaging TV shows than they have been in radio, a number of leading advertisers are firmly wedded to a network operation, whether they like it or not. Networks, by and large, will never give a sponsor permission to take a live or film "house package" — like Amos 'n' Andy on CBS; Lights Out on NBC; Breakfast Club on ABC; Magic Cottage on DuMont — and make a spot operation out of it. Live network shows are less a target than filmed network shows, because of cost factors. Even with cost-cutting in film production becoming an art, shifting a program from a "live" to a "film" basis nearly always costs more. And, due to the nature of the pitch for spot, a program virtually has to be already on film before spot's attraction can work for advertisers. So, who controls or owns the show is of top importance. Whether or not the program is now on film is vital. The real target for the reps is the sponsor who is firmly in the driver's seat with his show (either through direct control or through agency control), Spot or network for your filmed program? Arguments for spot TV 1. You can save from 10% up on your time costs by buying time slots on a spot basis. 2. Due to the difficulty of clearing new network time deals, advertisers are to all intents in spot note through their kinescope operations. 3. Even if a sponsor doesn't own his show or thinks the networks have them all tied up, more film packages are becoming available, many through reps. Arguments for network TV 1. Networks will not give an advertiser permission to take a networkcreated package and put it on a spot basis via film, and networks still have the cream shows. 2. When you leave a network, you are dropping your franchise on choice network time. This will be increasingly important as time goes on. 3. Advertisers will lose the promotion and publicity values of the network, as well as the network's prestige and acceptance, if they leave. and has it on film or who can transfer it to a film basis without adding tremendously to his costs. I inn costs In the cost category, reps present their most persuasive arguments for a purely spot operation, or a combined network-and-spot program campaign. In a booklet, "Straight Thinking on Television Costs," published by The Katz Agency, Inc., last March this was pointed up clearly : "For the same time on the same stations, you pay up to 19% less when you buy the period on spot than when you buy it on a network." It will be a surprise to many TV advertisers to discover that this is the case. When you buy network time, the rates are determined by the TV network involved. When you buy station time, the station is setting the rates. In the majority of cases, there is a differential — in favor of spot TV. Here's how it works out. A net work's gross time charge for a given time slot is not merely the sum total of all the rate-card charges of the stations involved, plus a profit for the network. Networks actually set an arbitrary, theoretical "station rate" when quoting a price, and this is usually higher than the station's published (as in Standard Rate & Data) rates. Three examples with rates as of July SRDS: On WBAL-TV, Baltimore, an hour of Class "A" time costs $700 on a spot basis, $1,000 through the network; on WPTZ, Philadelphia, it's $1,000 spot, $1,900 network; on KNBH, Los Angeles, it's $1,000 spot, $2,000 network. The Katz Agency points out in its booklet that time cost for a Class "A" evening half-hour, on a 52-week basis, was $671,580 on NBC's interconnected (35) TV stations. The same setup, on a spot basis, cost $563.305 — a saving of some 16%. (NOTE: These last rates are those (Please turn to page 62) 5JL Filmed fare like "Bigelow Theatre" can make jump to spot video Network-built shows like Arthur Godfrey's have to stay put at networks 30 JULY 1951 31