NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS * Copyright, 1933, The National Association of Broadcasters Vol. 1 No. 34 SEPT. 30, 1933 JULY BROADCAST ADVERTISING VOLUME First Report of the NAB Statistical Service A total of $3,918,441.00 was spent by American business for radio broadcast advertising during July of the current year. This is the first time in the history of the broadcasting business that compre¬ hensive information regarding total broadcast advertising volume has been available, thus filling a long recognized need in the radio field. Information on which July figures are based was collected from national networks and from a carefully selected sample of individual stations, representing every class of broadcasting station and every section of the country. Response to the NAB inquiries as to volume of business has been splendid on the part of stations which have been asked to cooperate. It is to be regretted that the July report was delayed in preparation by virtue of the great amount of statistical work made necessary by the preparation and submittal of the Code of Fair Competition for the Broadcasting Industry. However, the August report will be available shortly after the close of September. Since the data pre¬ sented is as of the last day of the month covered by the report, this means that information made available by the service will be no more than thirty days old. It also is planned to extend the number of stations furnishing information during the coming months. The relative amount of money spent for broadcast advertising over national networks, regional networks and individual stations is found in Table I. TABLE I RADIO BROADCAST ADVERTISING VOLUME (July 1933) Gross Receipts Class of Business for Month National network companies . $1,809,473.00 Regional networks . 16,069.00 Individual stations . 2,092,899.00 Total . $3,918,441.00 The receipts in the preceding tables, as in this and all following reports, are for the sale of time only, and represent gross sums prior to the subtraction of any discounts. A comparison of the volume of broadcast advertising w'ith ad¬ vertising in other major media is found in Table II. TABLE II ADVERTISING VOLUME MAJOR MEDIA (July 1933) Gross Receipts Advertising Medium for Month Radio broadcasting . $3,918,441.00 National magazines(l) . 6.096,540.00 National farm papers . 236.505.00 Newspapers(2) . 32,450,000.00 Total . $42,701,486.00 (1) National magazine figures are on the basis of 108 periodicals, the summaries being prepared by Publishers’ Information Bureau, Inc., from which national network and farm paper summaries also are secured. The magazine figure represents August monthlies, due to the method used by the Bureau. (2) Newspaper money expenditures are based upon estimates made by the service. The volume of non-network broadcast advertising placed over stations of different classes of power and situated in different sections of the country are found in Tables III and IV. Several comments are necessary regarding these tables. In the case of both the power and geographical classifications, the varying number of stations in each class must be borne in mind. In the case of the table showing the receipts of stations of different classes of power, it should be noted that extremely wide variations exist in gross revenues of stations of any given class. These variations are so great as to indicate that there is no general correlation between a station’s power and its revenues. The real value of the table is to show the general economic position of certain broad classes of stations as a wrhole. TABLE III NON-NETWORK BROADCAST ADVERTISING BY POWER OF STATION (July 1933) Gross Receipts Power of Station for Month Over 5,000 watts . $960,795.00 2,500—5,000 watts . 288,980.00 250—1,000 watts . 668,535.00 100 watts and under . 174,589.00 Total . $2,092,899.00 TABLE IV NON-NETWORK BROADCAST ADVERTISING BY GEOGRAPHICAL DISTRICTS (July 1933) Gross Receipts Geographical District for Month New England — Middle Atlantic Area . $589,655.00 South Atlantic — South Central Area . 272,031.00 North Central Area . 712,529.00 Pacific and Mountain Area . 518,684.00 Total . $2,092,899.00 The relative volume of individual station business accruing from national spot accounts and from local sponsors of broadcast adver¬ tising is found in Table V. In this table, national spot business is defined as that which is secured from non-local sponsors, the same basis being employed as in the case of national and local newspaper business. TABLE V COMPARISON NATIONAL SPOT AND LOCAL BROADCAST ADVERTISING (July 1933) Gross Receipts Class of Business for Month National spot . $735,543.00 Local . 1,357,356.00 Total . $2,092,899.00 The relative volume of electrical transcription, live talent, record, and SDot announcement business placed during July over indi¬ vidual stations throughout the country is found in Table VI. ■ Page 1 77 ■