Television digest with electronics reports (Jan-Dec 1958)

10 All Advertising Slipping? It’s a darkening picture for advertising as a whole painted by Wall Street Journal reporters Daniel M. Burnham & J. H. Rutledge in Feb. 19 story on space and time buying by major companies headlined: “Ad Slowdown, Recession Brings Drop in Outlays as Business Strives to Cut Costs. Look, Life, Reader’s Digest Space Sales Slip; New York Newspapers Lose Linage. More TV Sponsors Drop Out.” While 1957 dollar ad volume was at all-time high, showing increases over preceding year for all media save farm publications, ranging from 2.8% for newspapers to 4.4% for magazines, 7% for business papers, 8.7 % for TV, 14.3% for radio (see McCann-Erickson-Prmters’ Ink figures in our Vol. 14:5), big financial journal’s staffmen note a “growing wave of cutbacks and cancellations” that may presage “the first year-to-year drop in ad spending since 1942.” They say: “The ad cutback perhaps has been more sudden for network TV than any other major media,” coming hard on a “record 1966 volume of $516,000,000.” They also say: “Networks are now without sponsors for some of their high-priced evening pz’ograms ... A number of sponsors have cancelled programs in March, 3 months in advance of the season’s normal conclusion in June.” CBS sales v.p. Wm. H. Hylan is quoted: “There is a distinct attitude of caution on the part of companies concerning advertising expenditures [and] growing reluctance ... to make long commitments.” Newly named ABC-TV pres. Oliver Trezyz said: “The businessman is more cautious and much more cost conscious than last year.” Curiously, not a word is said about national TV spot, which now represents half or more of most stations’ income and which last year, according to McCann-EricksonPrinters’ Ink, went up 12.9% to $367,000,000, or about local which went up 10.1% to $281,000,000. « 4c i|s « Magazines began to feel the impact of cutbacks about first of year, article states. Survey of Jan. 1958 pages vs. Jan. 1957 in major weeklies shows Life down 25%, Newsweek 13%, Saturday Evening Post 10%, Time 12%, U. S. News & World Report 2%, Look (bi-weekly) 20%. (Among gainers were New Yorker, 10%; Sports Illustrated, 21%.) Monthlies fared no better : Declines were Ladies^ Home Journal 19%, Good Housekeeping 13%, Cosmopolitan 12%, Reader’s Digest 10%, Esquire 9%, Vogue 7%. (Up were Coronet, 43%; Holiday, 18%. ) Article reported Media Records Inc. as stating total newspaper linage in 1957 fell off 2.8% from 1956, which seems to be at variance with McCann-Erickson-Printers’ Ink figure showing newspapers enjoyed dollar ad volume increase of 2.8%. For Dec., newspaper linage was said to have fallen off 1.4% despite increases in retail and automotive copy. N. Y. Times was said to be way down in classified in Jan., mostly due to fewer help wanted ads. The “hard sell” types of advertising — direct mail and local radio — were found bucking the trend and still going up. Article concludes: “The business decline appears to have had a rolling effect on ad media . . . newspapers [were hit] first because they have the shortest lead time in placement of ad schedules and hence can be cut back most quickly. Magazines, with somewhat longer lead times, began to feel the cutbacks around the end of the year. And network TV, with the longest lead time, is just beginning to feel the advertising retrenchment.” * « * « As if in reply to Wall Street Journal’s thesis, though his remarks came day before article appeared, pres. Norman E. Cash, of Television Bureau of Advertising, speaking before Des Moines Ad Club Feb. 18, reported that “in the last 60 days TV budgets have increased and are currently running at levels as high or higher than any month in TV’s history.” For instance, he cites: “December 1957 network billings as compared with Dec. a year ago were up 11%,” doubtless referring to latest PIB reports (Vol. 14:6). “Trade indications and preliminary figures available to us for the month of Jan. indicate that this rate of increase has continued. There seems to be no doubt that increase in all 3 networks’ billing in Jan. ’58 wll be as great or even possibly better than the rate of increase shown in Dec.” While asserting “hard sell era is here,” Cash noted that “more advertisers will be using TV in 1958 because 42,500,000 homes o^vn at least one TV set and the average TV home is spending 5 hours, 51 minutes per day ... I am surprised at the reporting which refers to TV cutbacks and infers that hard sell can only be accomplished in newspapers.” Movies, TV & Labor: AFM struck major Hollywood studios this week over demand for 3% of gross revenue from TV exhibition of post-1948 features, but impact on producers — Columbia, MGM, Paramount, 20th CenturyFox, Warners — wasn’t felt immediately as none is scoring pictures. Secondary issue in strike was demand by AFM Pres. Petrillo for increased payments to union’s Music Performance Trust Fund from TV sales & rentals of pre1948 films. Meanwhile, Writers Guild of America membership voted to cancel contracts with movie producers as soon as possible and replace them with pacts granting writers royalties on films shown on pay TV. In other actions, WGA membership: (1) Approved March 22 strike against Republic Pictures as result of that studio’s sale of post-1948 features to TV (Vol. 14:3-4). (2) Authorized WGA screen board to give 60-day strike notice to producers associated with United Artists who have released post-1948 films to TV. (3) Voted to bar members of WGA’s TV & radio branches from taking motion picture assignments. First quarter billings of WABC-TV, N. Y. so far are running 53% ahead of same 1957 period, reports Robt. L. Stone, v.p. & gen. mgr. of ABC flagship. Since Dec. 20, station has written $1,700,000 new business. “Our business picture,” said Stone, “is completely contrary to the current attitude of pessimism. And we intend to keep it that way.” ’Round-the-clock telecasting Mon. thru Fri. was inaugurated last week by Triangle’s WFIL-TV, Philadelphia (Ch. 6), following start of 24-hour programming 7 days a week by same company’s WNBF-TV (Vol. 14:7). WFILTV will program feature films, news, weather and road reports, as well as news about factory and social activities, during the nighttime period. Westinghouse Broadcasting Co. is sending Benny Goodman Orchestra to Brussels World’s Fair for series of concerts May 25-31. Recordings of performances will be broadcast as ten 60-min. shows on Westinghouse radio stations and in special 30-min. documentary film on TV.