Weekly television digest (Jan-Dec 1960)

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14 JUNE 27, 1960 Shell to OBM: Medium-sized Ogilvy, Benson & Mather agency last week won the huge Shell Oil account from giant J. Walter Thompson. Shell is 2nd only to Texaco in TV spending among oil firms and is No. 1 in spot-TV-only field. The latter category accounted for 95% of Shell’s $2,564,000 gross time-spending last year. The official reason for the firm’s change, after 31 years at JWT, was stated as “a general reorientation of the company’s marketing program” by Shell Pres. H.S.M. Burns. But admen were quick to note the relationship between Shell’s spot-oriented TV spending and OBM’s growing success in the spot field. It scored first-place in the “Coffees & Teas” category of the recent American TV Commercials Festival & Forum with a Maxwell House Coffee film commercial. Maxwell House (which OBM won away from Benton & Bowles a few seasons back) is also a spot-conscious account, with a 1959 expenditure of $6 million in that area. * * ili Shopping for a strong TV agency last week was Hazel Bishop, whose mktg. vp Matthew Middleton was quoted as saying that the cosmetics firm believed TV to be “the prime medium for our operation.” What Hazel Bishop wants, according to adman Middleton: “An agency that knows TV inside & out & backward & forward; one whose primary billings are in ’TV.” Latest Hazel Bishop budget estimate: nearly $5 million. ■ “Deceptive” TV commercials for Rise shaving cream have been used by Carter Products Inc. and its agency Sullivan, Stauffer, Colwell & Bayles to disparage competing products, according to an FTC complaint. Citing a “typicial” commercial, FTC said a demonstration of how Rise stays “moist & creamy” while other lathers are “dried out” wasn’t what it was represented to be. “In reality,” FTC alleged, “the supposed competing lather is a formulation specially prepared for the demonstration and is not a product for shaving purposes.” Net & Spot Ahead on 6 Counts: The national ad volume in April rose 6% above the year-ago level, buoyed by gains of magazines (16%), business papers (12%) and network TV (5%). Printers’ Ink’s latest index also shows that the Jan.-Apr. ad investment was 10% greater than that cumulative period of 1959. But this was slightly off the 11% pace set during first-quarter 1960 (Vol. 16:23 pll). In April-over-March volume, network TV’s 1% gain looked big against the losses of other major media: network radio (down 21%) magazines (down 4%), newspapers (down 3%). Network radio & newspapers recorded the same declines (21% & 3%) in April ’60 vs. ’59. Index % Change from % Cumulative Mediam April April 1 month 1 year 19S3 1959 agro as:o Change General Index ... 238 225 — 1 -r 6 +10 Total Magazines „ 191 165 — 4 -1-16 -f-iV Weekly Women’s ... 217 189 — 5 -fl6 +23 ... 139 118 — 1 +18 +10 General Monthly . ... 236 193 -f 3 +22 +11 Farm „ 98 99 —12 — 1 + 8 Newspapers „ 209 216 — 3 — 3 + 9 Network Television . ... 473 452 “h 1 + 5 + 7 Network Radio ... 19 24 —21 —21 —17 Business Papers ... 256 229 + 4 +12 + 8 Outdoor ... 160 1st Qtr. '60 167 1st Qtr. '59 3 4 th Qtr. ’59 + 2 1 year ago + 8 Spot TV* ... 762 672 + 3 +13 All indexes have been seasonally adjusted. The index shown for each medium is based on estimated total advertising investmente in the medium, including talent, production and media costs. For each m^iu^rn. the base (100) is an average of total investments in the yeare 194^1943 except for the TV base, which covers the years 1950-62. Spot TV is not reflected in the general index. *Spot^ TV data» although shown monthly, report the preceding quarter’s activity. Film & Tape More about STRIKE DRAMA-ENTER, THE ACTORS: Just as Hollywood’s TV-film producers heaved their collective sigh of relief and regeared for full production, following the 22-week writers’ strike, they were faced with another labor crisis — ^with the actors. At the same time, WGA closed in on another agreement — ^with the networks. Screen Actors Guild’s negotiating committee, which held no sessions with the Alliance of Television Film Producers or the Assn, of Motion Picture Producers last week, did call a special meeting of SAG’s board for this Mon. (27) to discuss negotiations. The committee is expected to ask the board to call a membership meeting at which authority to call a strike will be sought. The board meeting is being called, said SAG bitterly, “in light of the failure of the producers to indicate any keen interest in bringing the negotiations to a conclusion.” This statement contrasted to that of Alliance Pres. Richard W. Jencks, who told us “we’re making progress.” WGA and the networks reached a verbal agreement late Fri., following lengthy negotiations for contracts covering TV films at the nets. Talks had boiled down to one question: How to compensate writers of sustaining shows under the new royalty concept? The networks told WGA negotiators they would go along with the Alliance-WGA deal. They would be willing to pay cash to writers of sustaining films. But the writers were seeking royalties. Because the royalty concept is based on growth, the sustainer presented unique & puzzling questions. However, it’s reported that in the final negotiations, the networks agreed to go along with the royalty plan for such shows, the figures to be determined later by the newly-formed industry fact-finding committee. Early Actors’ Strike Not Expected SAG’s action is motivated by what its negotiators feel is a “brushoff” attitude on the part of the producers, who think SAG wouldn’t dare strike again after already having had one strike this year (against the major movie studios). One of SAG’s principal objectives is a pension. While producers have agreed to this, the disagreement is in how to set it up. The producers offer to base it on 5% of the actor’s salary, up to double minimum, but SAG wants 5% of the total actor’s payroll in TV, including his residuals. The Alliance offered actors a raise in minimums of 10% the first 2 years and 5% the second 2 years (the same terms the writers accepted), but SAG wants a higher hike. Originally the Guild asked that the residual base of 140% be raised to 200%, but this was rejected by the producers. While SAG is the largest & most powerful of the Hollywood talent guilds and can shut down production more effectively & quickly than any other guild, there is presently no sense of urgency or expectancy of an early strike. An irony of the marathon writers strike is that it could have been ended in Feb. instead of June. That was when MCA’s Lew Wasserman offered as his solution a royalty plan to give writers 2.2% of the grosses, foreign & domestic, in lieu of the present fixed residuals. WGA immediately accepted the Wasserman proposal, but it was rejected by the Alliance. Eventually, after costly months of strike, the Alliance did accept a royalty formula, but because of the length of the strike, WGA had raised the ante, and got a guaranteed floor of 4% instead of the 2.2% it would have taken in Feb.