U. S. Radio (Jan-Dec 1960)

RATE CARDS (Cont'd from p. 27) Rules and contract conditions common to all rate cards are standardized in the front of the Petry portfolio for as many stations that could agree on the definitions. This "policy card" defines lor the stations in agreement such things as frequency discounts, weekly discounts, multiple product conditions, reljates, sliort rates, cancellation, rale protection and other items. .\rt McCoy, executive vice president, John Hlair & Co., also questions whether there ever will be — or shoidd be — complete standardization of all rate cards. "There never will be complete agreement, .\gencies themselves can't agree exactly on what tlicv waiu in a rate card." Mr. .McC;oy oliscrvcs that criticism of radio rate cards may l)e overstated. He notes that most representatives have made edorts to simplily cards as much as possible within the framework of dealing with stations that have individual situations and pi()l)k'ms. The Blair c^rgani/alion as lar l)ack as 1957 started a major effort to make cards simpler and easier to luiderstand. .\l present, most of its stations are using tiie siiuijlified version. In general, rates lor specified position are listed first, followed by rates lor annoimcement plans which start with 12 a week and go as high as 5)() or 100 weekly. The luiit and weekly cost for minutes and station l)reaks (20's and .SO's) are listed horizonialh. After the annouiiiement rates, the rate card lists such things as costs for news sponsorship and lluii programming. There are also longevity discounts for 26 weeks and 52 weeks. George IJietrich, director of national radio sales, NBC Spot Sales, believes that "the station which offers a simplified rate card has a big edge with agency timebuyers." He states, "NBC Spot Sales believes that rich benefits can accrue to radio by heeding the Madison Avenue plea for 'easy to use' rate cards. We are not suggesting that there is only one way to construct a card. "However, there are certain gen eralities— a framework — which can apply to all markets, all stations." .Mr. Dietrich believes there are at least two features of some radio rate cards that need changing. "Although there are many advertisers who still contract for long term conunitnieiUs. the majority use radio for short term saturation schedides. These short term advertisers expect — and are eiuitled to — maxinunn rate benefits for their nights. lUil many stations are still lied to an oiudated rate fornuila which allows maximum discounts on an amiual, rather than on a weekly liasis. ■.\nother hangover liom a bygone era is the concept ol fixed position annoiuicements. When station prcjgramming depended on the networks, there was a reason for cjuoling fixed time announcement rates. However, now thai stations program in 'blcxks,' this device is only ol negative \aUie to the station in that it takes choice a\ailal)ililies out ol (ircidation and to the acheitiser in that so few can be accommodated." Total Audience Plan H-R Representatives Inc. has been reconunending a new rate card formal Icjr its stations lor nearly a year now. James Alspaugh, vice president for radio, states that between a iliircl and a hall ol H-R stations aie using the sim])lifiecl lormat. .Mr. Alspaugh explains thai ihe highlight ol the new card is the Total Audience IMan which otlers advertisers two packages — one lor 25 announcements a week and liie other for S5 announcemeius a week. The idea l)ehind the ]>lan is to spread the buy throughout the broadcast day, including nighttime. .\ typical "35" plan woidd have five one-minute annoiincemeiUs in morning driving time, 15 during housewife hours, another five in late afternoon and evening driving time and 10 between the hoins ol 7 and 10 p.m. .Another feature of the new H-R staticjn rate card, states Mr. Alspaugh. is the Rotation Plan, in which announcements are rotatecl throughout the individual time bracket. Adam Y'oiuig Inc. has been on a campaign to simplify its station cards for three years. Steve Machc :inski, executive vice jjresident, declares that most of the firm's stations are using the simplified card. The Yoiuig organization has also made an effort to encoiuage through its rate card striuture greater use of the whole broadcast day. II, lor example, an advertiser buys a package ol 12 announcements a week in class .\ time, it is allowed to place a third (lour spots) in class .\.\ drive times. Mr. Machcinski declares that this has been a very popular feature of the card. It encoiuages greater use of the whole broadcast day, especially hoius between 9 a.m. and 1 p.m., and it provides a client with a reasonable rate while at the same time alfoicling him a chance lor exposure in the male-dominated traffic hoius. The seven-owned radio stations of CBS, represented by CBS Radio Spot Sales, have been on a simplified card since December 1957. Dick Hess, administrative assistant to the CBS vice ])resident lor station administration, declares that the card is as sim})lifiecl as it can get considering the talent and jjersonalities as well as the program featines that these stations ha\e to sell. Each card generally has three time classifications {A, B and C) which are spelled out clearly at the beginning. The individual time brackets have been standardized. 1 he card is broken down into three sections: (1) Station time; (2) fixed position and run-of-schedule announcemeius and participations, and (3) special leatures. Longevity discounts are in three categories — 1 to 25 weeks, 26 to 51 and 52 or more. There are also three categories of frecjuency — 12 to 20 annoimcements a week, 21 to 34 and 35 or more. The price is listed in net cost per unit. Mr. Hess observes that a recent trend in the changing ol the card has been away from staling the number of days per week lor announcements to the number of times per \\eek. He also believes that the palteni towards rate card simplification established by CBS was followed by a number of other stations throughout the country, including those rejjresented by CBS Radio Spot Sales. • • • 46 U. S. RADIO .August 19(30