U. S. Radio (Oct 1957-Dec 1958)

1949 63 advertisers 68 advertisers 54 advertisers 68 advertisers 1957 1 18 advertisers 125 advertisers 98 advertisers Source: Number of advertisers on each network for the years indicated, as reported by the networics. 68 advertisers while it had 98 in 1957. Each of these four network spokesmen find the broadening of the advertising base a healthy situation for the industry. As one of them says, "It's safer not to have all your eggs in a few baskets. Now if several sponsors drop out we don't feel it to the extent that we did 10 years ago." Listening Habits All attribute the changes in both advertiser characteristics and program formats primarily to the oft-discussed alteration in America's listening habits after tv. ABC's John White says, "The difference between network radio a decade ago and today might be compared with the difference between a deer rifle and a shotgun. Then an advertiser fired a few bullets and reached everyone while today he must fire many to reach the same number of people. This has resulted in the trend away from longterm, large time buys. This is why we sell 10-second spots now and no segments longer than five minutes, except for the news." Mr. White believes that network radio offers several important advantages to any advertiser because he can consolidate an extensive amount of commercial time with one buy and one order. The advertiser and agency buying job is thus simplified and he gets "lots of tonnage" — mass atidience — in the bargain. Mr. Gardner of NBC adds that network radio'j new look has broadened the whole selling field, resulting in increased numbers of sponsors. Those who never could afford network radio before now find that it is well within their means. "For example, the minimum buy on our network 10 years ago would have been around $260,000 for a 15-minute sponsorship on a regular 13-week cycle. Now you can buy a minimum of minute spots a week at fl.OOO. He also points out that as a result of changes like this, whole new product categories have been opened up to radio, particularly the soft goods field. In other fields, relative newcomers are Evinrude Motors and the Hertz-Rent-A-Car Co. Mr. Gardner believes that the trend toward small participations will "never be reversed and that program sponsorships will only succeed with institutional advertising." He cites the Bell Telephone Hour as an example. On the other hand, CBS's Mr. Lochridge states that in his opinion there will always be a sizeable place for program sponsorship. "Network radio has room for two areas and program sponsorship is finding increasing favor today with advertisers and agencies." He mentions the Jack Benny Show sponsored by the Home Insurance Co., the Philip Morris Music Show and the Lowell Thomas broadcasts bought by Delco. Sponsor Choice Mr. Lochridge emphasizes the importance of giving the sponsor a choice between segmented formats, daytime serials and "the best regular programs with well-known personalities." Mutual's Mr. Gold points out that in his opinion "advertisers are not paying top dollars for talent today as they did 10 years ago. They get this in tv. Now they are paying fees for the medium, hence the lowering of rates and the greater number of sponsors." • • • U. S. RADIO Mav 1958 27