Broadcasting (Oct 1931-Dec 1932)

On Cooperation With Advertising Agencies By JOHN BENSON* President, The American Association of Advertising Agencies "uture of Broadcasting Said to Hang on Joint Solution of ^roblem of Keeping Radio Fresh and Intriguing \" MY last year's address to this ody, I dwelt at some length upon jae advertising agency and its alue to media owners like yourelves, I need not repeat that story ere. I merely wish to point out nat we are a commercial ally of roadcasting, and how. I In a nutshell, the agency's job is 3 make advertising pay. It is not q sell space or time for the media wner. It is not to gain undue adantage for the advertiser at the xpense of advertising or for the ublishers who provide a channel or it. Our dual position would be mtenable on that basis. As exerienced workmen we can serve oth masters in the most substanial way it is possible to serve ither. In making advertising prouctive we protect the investment f our clients; at the same time we erve the media owner by making is product, white space and circuition or time and coverage, of ommereial value. We make a maret for his product. That is the lost effective selling we can do. 'aking advantage of that market 5 his own job. In that respect he ells us. Three Chief Objects HAVE a large responsibility i three respects: In the first place, re must get results for our clients y a sound analysis of their needs, y skillful appeal to the consumer, y an effective choice of media, and y coordinating sales and advertisig effort. In the second place, as professional body we must de' elop advertising itself, improve its echnique, protect public confidence a it and extend our knowledge of larkets and media. I fear we have iade more progress in the first repect than in the second. There is till much to be done in making adertising copy more reliable and erviceable to the reader. And that nuch will be done, I feel sure, not '.11 at once, but one step at a time. The third obligation we have is o the publisher in giving to his me!ium a full appreciation of its nerit and to him a fair chance to >resent it. That involves on our •art courteous and open-minded reeption, an unbiased attitude and is much knowledge of media values is can be obtained. The Four A's is operating in all hree directions for the good of advertising as a whole. It has three RADIO advertising has become a young giant within a few years, but it is still in the novelty period. When this wears off, it will have to hold its own as a workaday medium against media that now do not offer serious competition. Such is the warning sounded by the head of the A. A. A. A. in this appeal to broadcasters. John Benson *From an address before Detroit Convenion of the National Association of Broadasters, Oct. 26. main objects: to define and promote sound value in circulation and copy appeal; to maintain good faith and fair play in all of our relations; to improve advertising technique and lessen its cost. It operates a research department for the study of circulation values in all media fields, including coverage, duplication and buying power of listeners and readers. It seeks to make it easier for publishers and agencies to do business with each other, on a basis of mutual confidence and help. Specifically, how does this affect the radio broadcasting medium ? We maintain a radio committee, just as we have committees representing every major medium of advertising, which acts as a connecting link between the broadcasting stations and our members, studying the needs of either and mediating between them. Our radio committee has been in current contact with the NAB commercial committee, discussing with them questions like coverage, what it is and how to define it; dual rates and differentials, and the harm they do; agency recognition and conditions for it, talent charges, time brokers, and station representation. These are all questions of timely and vital interest to us both, and they are being clarified and settled by joint consideration. What progress has been made during the past year ? Let us deal with each question separately. No agreement has yet been arrived at about coverage of stations nor any joint plan set up to measure it. There has been more oir less discussion about one method and another, but none has seemed adequate. Some stations have been doing the job themselves; the net works have done several jobs. These are all helpful, but not conclusive. Perhaps no conclusive survey can be made in so intangible a field. We advertising agents have been watching the development of the Crossley checking system, hoping that it might furnish the plan and the machinery for determining coverage, on a joint basis of support from advertisers, agencies and radio interests. That would mean considerable money in the aggregate, but with a light burden on each contributing unit. We are weighing this possibility and may have something to present in the near future. Hits Dual Rate THE DUAL rate is an evil the NAB can not officially deal with; it is air individual question between each station and its clientele. We have to work direct. We hope the stations will appreciate the inequity of two rates for the same thing, especially with a wide difference, and the handicap they impose upon the national advertiser's use of radio, in competition with the local. The rate differential in newspapers has been so grave a source of trouble during the past two or three years that radio stations might well take a leaf out of newspaper experience and early avoid its unfortunate results. Millions of advertising have drifted out of the press because of the rate differential and the confusion which it makes. In the recognition of advertising agencies some progress has been made. A sub-committee has been appointed by the NAB to define the basis of recognition and to set up machinery for naming agents entitled to receive commissions. The NAB committee has invited our cooperation, which we have been giving in the form of data as to what other publishing bodies do; we have suggested that the radio industry might improve upon what has been done in other fields, that it might grant agency commission only to those individuals and firms which sustain an agency relationship to clients and are equipped to do an agency job. This is the only restriction we offer in a broad policy of recognizing all applicants who can qualify. What we mean is that only professional service should be supported by an agency commission, and that involves three things: intimate acquaintance with the client's entire advertising and selling problem, a wide knowledge of advertising media and technique, and a disinterested position as far as media are concerned. These are the qualifications which mark the advertising agent. He does not produce material or sell time. We have no desire at all to see the field limited; everybody should be free to qualify for recognition who can. Talent questions have not been acute in the spot broadcasting field. Recordings have been largely used for national advertising, and steady progress has been made both in the making of records and in the use of them by station and advertiser. The question of station representation is strictly speaking no concern of ours, although we are deeply interested. In the first place, its expense is an element in rates, and secondly, it furnishes us our contact with stations. That contact is all important. We need uniform and reliable information about all the factors which enter into station value and we want that information direct or through channels organized by the stations themselves. It does not seem sound to have time brokers representing competing stations as loosely as they do. That is not fair to the station. Lauds Bureau Idea IT SEEMS to me the recent move to build up joint representation for a group of stations which do not compete, such as Advertisers Radio Service, Inc., is in the right direction. That is sure to prove economical and to do a straightforward selling job. NAB officers recently suggested (Continued on page 30) November 15, 1931 • BROADCASTING Page ia