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

vantage of tht' turnoxci ol radio audience. Mr. Eastman's "sales builders" are also designed to entourage advertisers to spread their buys throughout the day by making it financially expedient to mix the various packages. For example, if an advertiser wishes to purchase 24 spots per week he may split them among several plans — perhaps six dining the captive housewife period, 12 dining driving times and six over the weekend— and still retain the 24-time rate on each plan he buys. The importance of convincing the advertiser and agency to use all time segments and reach radio's mass audiences is partially due, in Mr. McCoy's opinion, to "the excellent job salesmen have done in selling saturation. They did such a good job, in fact, that agency people woidd demand frequency abo\e other considerations. When confronted with a limited budget," Mr. McCoy says, "they woidd buy a smaller station to get spot volume. Cover All Stations "VV'e think Satureach Avill tell the other side of the story — the need to cover all a station's listeners throughout the day and to reach as many persons as possible with a gi\en station. "Radio had exceptionally good years in 1956 and 1957," Mr. McCoy points out, "and when a buyer asked for a time most stations were happy to give it to him. Driving times became popular and stations just raised their rates for those periods. "Now the era of hard sell is upon us," Mr. McCoy declares, "and we are going to have to do more than just give the buyer what he wants. We are going to have to educate him about the medium and all its advantages throughout the day." The rate card, Mr. McCo) believes, can help do this job just as it has been doing since saturation plans were introduced to combat tv competition. Package plans were initiated to induce the advertiser to buy frequency, the only buying method enabling radio to live up to its full potential as a medium, he says. Mr. Eastman agrees that package plans have lent great impetus to the spot radio business in the approxi pillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll^^ I Going Up: Radio Rates B According to the Katz Agent). <ia\tirne radio rates have increased M 3.2 percent in 1958 over 1957, compared with a 1.8 increase in 1957 g over 1956. These figures are based on Katz represented stations and M on schedules of 12 one-minute announcements for 13 weeks. One g time rates were not used because Katz felt they were "unrealistic." g Here are the results for the past two years (as of January 1 of H each year) : ■ Percent Increase Over 1 Previous Year ■ DAYTIME NIGHTTIME 1957 over 1956 1958 over 1957 + 1.8% +3.2 -3.2^ -0.5 mately five years since they have been in common usage because they allow the advertiser to buy the medium more efficiently. During this time, plans have evolved from 6's, 12's and 24's to frequencies commonly running as high as 60, 72, 84 and 96. Another development has been to increase the nimiber of commercials from minute announcements to include 30's, 20's and ID's. Back in the pre-television era an advertiser could buy one announcement on the Jack Benny program and reach 34 percent of America, another representative points out. After tv, the advertiser's thinking had to be revised in keeping with the new character of radio. In addition to promoting frequency, package plans were designed to attract business to a particular station, this spokesman says. Cutthroat Competition "When the nundaer of radio stations jumped from 800 to 3,200," he states, "competition became cutthroat. Stations and representatives began to xise packages to lure advertisers and timebuyers into their own corner. They began to pile package upon package always seeking to top the competition with a slightly different and cheaper version. "What has happened, as a result, is such a confusing jumble that agency people are beginning to rebel. They are begging for more uniformity and simplicity. They want, in particular, to have time period classifications standardized and to have fewer rate differentials for these same time periods." This executive states that since circulation figures are different for different times of the day, it would be impractical to charge a single rate, "although this would be ideal." Mr. McCoy would also like to see a single rate, but would settle for ■five or six" frequency rates in each time category. Daniel Denenholz, vice president in charge of research and promotion, Katz Agency, New York, feels that package plans as generally set up today "fit the current trend of timebuving practices because the advertiser doesn't want to buy the same time every day. He wants to reach the different audiences that tune in and out, and packages make it easier and cheaper for him to spread his buys throughout the day." Mr. Denenholz does not feel that it matters what terminology is employed in classifying these times "because it's the same time by any name." An executive of another New York representative firm believes that neither time classifications nor their rates can or should be standardized since "the sitiiations differ from market to market. In some cities, for example, driving times are longer than in other towns and draw larger listening audiences than in cities of similar size where commuting habits may involve greater use of public transportation facilities. As a result, both rates and classifications must vary according to individual tonditions." \\'hile the exact lornuda lor rate changes differs, representatives are showing increased interest in altering plans to meet what each feels are the needs of the advertiser and advertising agency. • • • U. S. RADIO September 1958 25