Sponsor (May-Aug 1957)

NETWORK RADIO BECOMES FASHIONABLE You II hear more tall; ulnmi uri radio this year than at (ins time since tv arrived* H hy? There are tiro big reasons! ( I ) Years of selling have penetrated, (~) The networks continue t<> re-shape programing and sales to the needs of all kinds and types of advertisers. Tlie blue-chip sponsors are back nml they' re pacing the rest Outlook Q. How does business look at this half-year point? A. Network radio business looks better than it has in seven years and gives promise of making even stronger dollar gains in the last half « > f this year. January, according to one network president, was the lowesl poinl in network radio's history. Since then, do/ens of new advertisers have made network buys, man) f» >r the first time. The biggesl money, <>f course, is coming from the blue-chip advertisers. Matthew J. Culligan, vice president in charge of \R(! Radio, says this spring 1') of the country's top 100 national advertisers were using network radio. This represents almost a 100', gain because at the same time last year there were onl\ L'i> such majors in the network radio lineup. Radio i "back in the media living room." he says. "The most deliberative buyers are buying it. ITiis return of the smart buyers is now a trickle bul it will be a flood within -i\ months." The SRO sign is alreadj being hung out In the networks on certain time periods and programs. Mutual, for example, has <">2' , of it half-hour!) newscasts sold. Thirt) -one a\ ailabilities in this news package are left, and when these are sold the network will he "in the black," says a top-level spokesman. NBC's increasing!) pop ular weekend Monitor i '>'.'>' , Bold OUt (\\> in the six-week period ending the third week of June reported I •", new contracts, one extension of a schedule and 17 renewal 36 orders. \R(! has tabbed 75 advertise! orders in the five-month period Bince 1 Januar) . a nel billing of more than 1 1 1 million "larger than the total of all 1956," < iulligan told sponsor. Robert Eastman, American new president, says his mosl important single ta-k i to jet more -ale at good rate and he'll hold firml) to the rate card line. He is planning seven or eight hour-long live music and personalit] -how which he think will attract a new group of advertisers. Rec -a use he think "network radio has been \er\ bad!) sold," he's spending a lot of time in sale planning. His primar) sales emphasis is on sales effectiveness. "We're selling our network on it own merit, and it most important merit i what it doe for the person who invests the dollar-. Q. Are the networks making money? A. None of the network-, at this point. i in the black. The) have high profit hope for the future, however. There are two main reasons t"i this optimism: I I I their losses are do reasing ever) yeai a the. make more sales and tighten Up their operation-, and (2) the) see a lot more mone) coming into their coffers as the) switch from a holding operation to mi i ssive types of programing and sales tactics. I he) ie -till ti imming a l"t <>{ fat. The) 've put in Full-a ale <■< onomii all levels, management i" engine* i I he) 're Bpending a lot of time 1) zing past mi-take-, rhe) re pre-planning evei \ move bo the) i aximum value for ever) dollar the) spend. Q. Why are advertisers showing a new interest in network radio? A. I hei e are man) i easons Fi •• emergence ol interest in and enthusiasm foi network radio. Vmong them: • Spadework carried on b) network sales and promotion departments tie past few years is just now in man) • ases beginning t" pa) "IT. • The networks have developed new and unique approaches i" selling their produi t. • I he i osts of the \ isual media television and print have risen \<> the point where re-appraisal of all aA budgets i a necessity. Network radio i estimated b) a ( BS ext i utive I i ne-third to on< -fourth thi ' t\ . • I \>\\\ \ investments b) su< h n a unts as Levei Bi I and Brown and Williamson have attracted industry interest and led adver i T? t . » the fold. • I he listening audience has leveled off anl i now a stable one • \n i n< reasing numl er "f advertiswanl t" rea< h listeners in radio' exclusive audieni e. • I he • ■• onom) of radio, disputed 1>\ n<> one. gives an advertisei affordable frequenc) in an era when quantit) it in 195' 161