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SPONSOR-SCOPE continued.
The Tod Storz stations have drawn some sharp ground rules to cut down abuses of the local rate.
New regulations which limit qualifications for the local rate — as drawn up at a Chicago meeting of Storz people with John Blair and Adam Young — -include these:
CONTINUITY: Must be written at the local level in each market. It must consist of such information as retailer's local name, address, telephone number, or any other local information or sales point for at least 51% of the commercial. General product or institutional copy must be limited to half the commercial time.
DISTRIBUTION OF PRODUCT: Limited to immediate trading area of the city; product must be manufactured or processed from only one source within this trading area.
AGENCY RECOGNITION: Local product account does not employ an ad agency or is not represented by an ad agency or branch of a national agency operating as a local agency. The billing must be rendered locally. Checks in payment must be on banks within the market involved.
As a Storz rep views the dividing line: It puts a stop in a realistic way to the practice of many accounts and agencies to take advantage of the lower rate by going around the rep and dealing directly with the station.
Accounts like Ford and Gidf would be barred from benefitting from the lower local rate.
Westclox has committed itself to around $400,000 worth of pre-Christmas promotion on CBS TV: half of the Wonderful Town special in December.
Over-all cost of the two-hour December event : $500,000 net for the program and $220240,000 gross for the time and facilities.
These may be taken as signs of the economic climate and a clue to where advertising strength lies:
1) The total beer market is getting stronger and the hard liquor field is beginning to feel stress and strain.
2) The soft drink and candy bar businesses are holding their own comfortably.
The heavy gains made by the Screen Actors Guild in commercial use payments could boomerang in the long run.
Agencies — SPONSOR-SCOPE learned from producers this week — are using fewer people in film commercials to save some of the additional extended payment money required bv the terms of the new SAG contract.
Compton appears to be more lenient than Benton & Bowles in penalizing tv stations for triple-spotting during chainbreaks.
Denver stations have been given a three-week reprieve by Compton to "clean up the situation." B&B previously had pulled its chainbreak spots from the same market.
Questioned by SPONSOR-SCOPE this week for the grounds of his agency's drastic action, B&B media director Lee Rich said:
"We have two reasons: (1) triple-spotting is bad business because it dilutes the effect of advertising, and (2) we're determined to preserve the effectiveness and integrity of tv, since 70% of our billings are in the medium."
Rich added that he was gratified with the results of B&B's attitude toward triple-spotting, and that he had received many letters of commendation from leaders of the broadcast industry.
Rich's comment on the NAB code: "In one paragraph it permits two 20-second commercials and an I.D. In another it admonishes against slicing off time from a network show. I challenge how anyone can get 50 seconds into a chainbreak without depriving a network advertiser of time he's paying for."
SPONSOR • 26 APRIL 1958