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ing in Tandem, Pyramid and similar network plans."
Just to nail down the lid — even if it's only temporary — Wythe Walker, well-known spot rep, had this to say of the NBC (and similar) proposals to set up a network "spot" system. "Networks hate spots like the Devil hates Holy Water," snapped Walker. "Now they plan to reverse their policy because a dollar doesn't care where it comes from."
Many radio advertisers, both spot and network, are still wondering what the shouting is all about. To most sponsors, the argument is one of those hair-splitting sessions, like the medieval preoccupation with the number of angels who could dance on the head of a pin.
Investigations by SPONSOR have disclosed, however, that the argument is far from academic. The radio future of many a national advertiser, who may have millions tied up in radio properties and air advertising, is at stake, in the minds of many observers. Networks, without exception, state that the various new sales gimmicks will do much to make radio more attractive to new advertisers, and to keep it on a healthy economic balance. Many reps and stations have other views, particularly in how the network plans may affect major radio advertisers.
Typical of the reaction of a large group of radio station officials is that of Fritz Morency, General Manager of Hartford's WTIC and chairman of the Affiliates Committee:
"If the leading radio networks start a concerted invasion of spot radio, the consequences for radio advertisers of
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all types, and for the industry itself, will be very bad. Sponsors will find, if station revenue — which comes largely from spot radio — is cut, the value of a sponsor's radio dollar will also be cut.
"Stations will have to trim their staffs to the bare minimum, and the whole standards of station programing will suffer. Also, there would be much less aggressive promotion and publicity behind network and spot advertisers' shows; the stations just couldn't afford it as a free service to sponsors.
"With weakened station operations, advertisers would find that the ability to 'beef-up' slow sales markets with intensive spot radio campaigns in a few select areas will be reduced or destroyed. Stations will be too poor to be aggressive for a spot sponsor. Networks and advertisers who try to work out network invasions of spot radio will find that they are dulling, not sharpening, radio's selling abilities," concluded WTIC's Morency.
On the other hand, networks predict that the various plans to alter network radio sponsorship will mean a happy radio future for advertisers. One network sales v.p. who declined to be quoted by name, told SPONSOR:
"I have a strong hunch that much of the complaining about recent network sales innovations is coming from station reps who feel they are being done out of their 15%. Actually, networks are making it easier for the limited-budget advertiser to get into network radio. Networks are giving sponsors an opportunity to buy into programs which they can merchandise both to their sales forces and to the public.
"No network wants to put its stations out of business. That would be ridiculous. But, radio networks need all the revenue they can get today to keep network programing at a level where it remains a good buy for advertisers.
"Incidentally, strong network programing benefits stations, as well as advertisers. With good network programs, network affiliates build their circulation, which is the basis of their selling approach to spot radio advertisers. Sure, some concessions will have to be made here and there by stations, but they will work out to everybody's advantage in the long run — the sponsor, the network and the station."
These, then, are the two conflicting viewpoints, the Alpha and Omega of
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