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Panel spending $50 million annually is worried by rising TV costs, defends radio
high costs, and we are proceeding cautiously.
Q. How about your Divisions?
A. Our Chevrolet Division sponsored Dinah Shore on television last year. This year they have added the full NBC radio network to supplement their television coverage with Dinah. Our Pontiac Division is not doing any network radio or television at the present time. Our Buick Division is sponsoring a television show every fourth week with the Buick Circus Hour. Our Oldsmobile Division sponsors Doug Edwards on television three times a week. Our Cadillac Division has just started a CBS network radio show featuring Dr. Frank Black and the Choral Symphony, which I believe is a 15-minute program for 39 weeks. Our Frigidaire Division is sponsoring one of the segments of the Godfrey show over CBS in the morning. I might preface our thinking on radio and television by saying that all of our Divisions use spot radio and spot television very heavily at announcement time to create showroom traffic.
Q. And you are planning to sponsor the coronation this summer?
A. Yes, we bought the coronation rights on NBC for both radio and television.
Q. And that will be for General Motors as a whole, rather than one particular Division?
A. That's right; it will be on an institutional basis. We, of course, in our institutional advertising work in commercials for our five Car Divisions, Truck Division, Fisher Body, and Frigidaire.
Chairman: How about your General Tire and Bubber Company. Ralph?
Mr. Harrington: We are not using network radio or network television; it is all dealer co-op. We are not using television chiefly for three reasons: first, cost — I mean network television; second, inadequate and spotty coverage of
the available stations on a network basis; and third, because due to our highly selective and restricted distribution we think it is extremely important to identify by name and address the local dealer, which you can't do on network programs. Our dealers increasingly are using more radio on co-op, and quite a good many of them are doing television advertising on a local co-op basis, chiefly spots. And then a rapidly growing practice is for a group of dealers within the signal area of a TV station to get together as a group to sponsor local program television and radio advertising. The factory pays half the time of production and the dealers divide the other half among themselves on what they consider to be an equitable basis, and that group idea {Please turn to page 114)
SPONSOR panel affirmed these 5 points
1. Rising costs, especially labor, may drive smaller advertisers out of TV unless economies are made.
2. Nighttime radio is a good buy; many advertisers are so convinced of this they are returning to it.
3. Only a beginning has been made in producing both shows and commercials that reach and move consumers.
4. Use a psychological parenthesis in your commercials in which your announcer can say what he pleases.
5. Some advertisers would like to use their oivn film on TV if no difficulty develops with unions involved.
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20 APRIL 1953
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