NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director Vol. 1 No. 38 * OCT. 19, 1933 NAB REPORTS Copyright. 1933, The National Association of Broadcasters NRA ★ ★ BROADCAST ADVERTISING IN AUGUST TABLE II With the publication of the summaries for radio broadcast adver¬ tising volume in August, the second NAB Statistical Service report makes its appearance. Due to code hearings and to the NAB Con¬ vention. the report has been slightly delayed. It is expected that with the September report, it will become possible to present monthly summaries of radio broadcast advertising trends within thirty days after the collection of information from cooperating stations. Plans are also being made for the extension of the sample upon which the reports are based. ADVERTISING VOLUME MAJOR MEDIA Advertising Medium Radio broadcasting National magazines1 . National farm papers Newspapers2 . July $3,918,441.00 6,096,540.00 236,505.00 32,450,000.00 1933 Gross Receipts August $3,693,247.00 6,644,831.00 373,134.00 37,790,096.00 Cumulative July August $7,611,688.00 12,741,371.00 609,639.00 70,240,096.00 Advertising Trends in August Total . $42,701,486.00 $48,501,308.00 $91,202,794.00 The total volume of broadcast advertising over national and regional networks and individual stations for the month of August is found in Table I: TABLE I 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. TOTAL RADIO BROADCAST ADVERTISING VOLUME 1933 Gross Receipts Cumulative Class of Business July August July-August National networks . . $1,809,473.00 $1,907,481.00 $3,716,954.00 Regional networks. . . 16,069.00 32,2 62.00 48,331.00 Individual stations . . 2,092,899.00 1,753,504.00 3,846,403.00 Total . $3,918,441.00 $3,693,247.00 $7,611,688.00 Total expenditures for broadcast advertising during the month of August were somewhat below those of July. August revenues for stations and networks totaled $3,693,246.00 as against $3,918,441.00 for the previous month, representing a decline of approximately 5.9%. The decline in broadcast advertising volume was entirely in the field of individual station business, station revenues dropping 1 1 .4% from the July level. A marked increase was experienced in regional network revenues. National network revenues increased 5.2% in August over the July volume. This is particularly encouraging, since in previous years August network advertising has tended to decline from 5% to 10% as compared with the preceding month. National networks have been improving their position since the low point of last April when network revenues lagged 38.5% behind that of the previous year. August revenues are but 16% behind those of the same month of 1932, while network revenues for the first eight months of 1933 are but 31% behind those of last year. Comparison with Other Media During August, increases were experienced by the leading adver¬ tising media of the country. Expenditures for advertising space in 108 leading general magazines increased 8.2% over July, and lagged but 4% behind August, 1932. National farm papers gained 53% over the preceding month, while newspapers gained 16.5%. Farm paper advertising was 19% behind August, 1932, and lagged 27% behind 1932 for the first eight months. Newspaper advertising was 9.5% under the August, 1932, volume, and 15% less than the volume for the first eight months of that year. August expenditures for leading advertising media are found in Table II: Evaluation of Trends Trends in broadcast advertising must be interpreted carefully if the correct conclusions are to be drawn from them. It must be remembered, in comparing radio with other media, that broadcast advertising did not show marked decline in volume until the year of 1932, by which time the older advertising media has experienced a severe curtailment in advertising revenue. Thus, through national network advertising revenue is but 31% behind its peak year, news¬ paper advertising is slightly more than 50% less than in the peak year of 1929. The trend in individual station revenue during the month of August is probably seasonal in nature. In previous years national network advertising has declined to about 20% below the monthly average for the entire year during the August low point. This year the anticipation of improved business and probably a desire to secure choice time, has led to an increase rather than a decrease in August network advertising. Since local broadcast advertising has always tended to follow the lead of network advertising, it is quite prob¬ able that the usual seasonal phenomena are behind the August de¬ clines in individual station revenue. Declines in revenue have been more marked on the part of the larger stations than with regard to the hundred-watt transmitters. There has also been a tendency toward a greater decrease in revenue in the eastern portion of the country as compared with other sec¬ tions. The southern area has experienced very little decline, the mid-western district 10%, the Pacific and Mountain district 14%, and the middle-Atlantic-New England district approximately 30%. Individual station revenues by classes of stations and various geo¬ graphical districts are found in Tables III and IV: TABLE III NON-NETWORK BROADCAST ADVERTISING BY POWER OF STATION Power of Station Over 5,000 watts . 2,500-5,000 watts.... 250-1,000 watts . 100 watts and under . Total . July $960,795.00 288,980.00 668,535.00 174,589.00 $2,092,899.00 1933 Gross Receipts August $772,736.00 224,241.00 560,790.00 195,737.00 $1,753,504.00 Cumulative JidyAugust $1,733,531.00 513,221.00 1,229,325.00 370,326.00 $3,846,403.00 Page 197