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THE DAY THE PRICES FELL

Norman King Stuck It To the full-service Agency and Changed the Media Business Forever.

By Erwin Ephron

 
 

J. Walter Thompson and Lord & Thomas set the tone in the 1920's and for fifty years advertising remained a gentleman's club. An ad man was as good as his word, commissions were 15% and media were bought on rate card.

Hondlers need not apply.

Then, like an overnight pimple on a starlet's nose, the media buying services broke out. There had been barter-houses that did some broadcast buying like Atwood Richards and Pepper Tanner, but they operated in the shadows. It was Norman King, the plump, pushy president of U.S. Media, who put the buying service right in the agency's face and changed the media business forever.

An historic confrontation occurred on April 15, 1970 at the annual TV meeting of the Association of National Advertisers. The place was the Seaview Country Club. It was Jackie Mason versus the WASPS. They knew he was buying TV for less than a gentleman could and it made them very uncomfortable. Here is what Norman King said to the ANA.

A Kid On A Bicycle

"Had you met me three-and-a-half years ago and asked me what I did I would have said, "Well, I have these few little clients and I buy broadcast for them -- a little television, a little radio and believe it or not, by trying harder and by getting deeper into it, I seem to buy it for less.

"I didn't know the term "media middleman"; I did not know the term "time-buying service". But I am all of these things.

"The need was there . . . I don't describe it as well as Mark Twain. [He] says that all media starts in the North Country -- with the giant redwood trees in Canada and they are worth millions of dollars. Millions of dollars more are spent to take these trees and fell them. More millions are spent to get these . . . trees to the multimillion dollar plants that make [them] into newsprint . . . on to the million-dollar buildings that house the great American newspapers, with millions of dollar's worth of talent; editors and publishers and photographers and writers, but would you believe it, the end product is delivered by a mere kid on a bicycle? And that is the story of broadcast media.

"There is some kid, not quite on a bicycle, who earns somewhere between a hundred and seventy and two and a quarter a week, who may have been in this business something less than a year--hopefully that long-- who's being entrusted with your money.

Nobody wants to be in media.
The pay is low.

"Now, I have heard about the direction, supervision and control. How can it be? Have you ever visited a giant agency? Have you seen all the little cubicles and all the little rooms? Do you know these kids don't talk to each other. They don't have time. They're all busy looking for other jobs. They're all wheeling and dealing and looking and trying. They all want to grow. Nobody wants to be in media. The pay is low . . . And these are the people who are spending your money.

"Walk along into five cubicles of the nineteen or twenty . . . and you'll find [they're] all buying Dallas, Texas on the same day. Same type of schedule. Nobody talks to each other. And three of them are paying different prices. Two matched by accident. This is a strange way to spend money.

". . . At U.S. Media . . . we've taken only the top people from the agencies: people who no longer buy; people who in theory only supervise . . . [and] doubled and tripled the money they're used to making . . . what you have at U.S. Media are former media directors, associate media directors, media supervisors, who are now buyers. Only someone . . . who was a top gun in an agency does the actual buying.

A station is one man...
a sales manager.

"Consider what a station is . . . A station is one man . . . a sales manager. He's put in his projections for the quarter . . . Let him get over it by a few dollars and he's a hero; let him be under it and there's some cause for concern . . . the station's not just bricks mortar and a tower . . . it's one man, easily replaced by another man--you work on that. And you know who knows this? [The buyers at] U.S. Media.

"Still, when I listen to the protestations of media directors, I recognize there's a doubt, an aspersion . . . I'd like to find the first man who, when you talk to him, will say: "You know, it really warrants a test.

"[Your agency] gives us the plan. We come back and say . . . we can increase its efficiency X per cent. Is it 10 per cent, is it 15 per cent? It isn't the wild numbers that have been thrown around -- 30, 40 per cent.

"But I tell you, there is a 10. Sometimes it's a 15 [or] 20. Sometimes it's only a seven or eight. What's wrong with seven or eight per cent on a giant budget? On the per share earnings of your company it's going to look pretty good. We're all going to look pretty good...

"For years, now, your agency has been spending millions of dollars and nobody's been really watching them. My suggestion is, let us spend [the money] and have your agency watch us."

Norman King was a prophet. Everything he said about agency buying was true and had to be changed. Today media services place close to $5 billion in national advertising dollars and their share is growing, but U.S. Media missed the bonanza. It went bankrupt late in 1970 and King left the business.

Today Norman King calls himself an "international banker and part-time author." His latest published work is "Madonna: The Book." You can’t make this stuff up.

- January 1, 1992 -
Originally published in Inside Media

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