NAB reports (Jan-Dec 1941)

October 1940 Broadcast Advertising Unit Report Broadcast advertising volume, in terms of units, is presented on the following pages as reported by 200 broadcasting stations and the national networks. The report is complete for national net¬ works, including the business of the Columbia Broadcasting System, the Mutual Broadcasting System and the National Broadcasting Company. Regional network, national non-network and local business are not complete for the entire industry; the figures repre¬ sent the total of such business placed on the 200 stations reporting. On the last page of this analysis, there appears a complete roster of the 200 stations reporting their October business. There is in¬ cluded also in the list five additional stations whose reports were received too late for inclusion in this tabulation. Comparison with the list of stations reporting September busi¬ ness discloses that a majority of stations reported their business for both months. The total stations reporting October business is 200 as compared with 206 for September. However, some stations reporting October business had not submitted September business. The significance of this situation is that there is not a constant sample as between the two months which will permit of direct accurate comparison. What Does It Show? All stations having national network affiliation carried 3,058,101 program units of network business in the month of October. This represents a 58% increase over the 1,938,928 program units report¬ ing for September. Since these are complete figures for national network business, the comparison is completely accurate. The in¬ creases in network business were as follows: Political advertising rose from September program units of 28,863 to an October total of 480,091, an increase of 1,563.7%. Since political business is carried largely as a substitute for existing busi¬ ness, it is notable that there were other substantial increases which, by far, offset the expected decreases by business classifications. In general advertising, the building materials classification rose 180%; toilet requisites rose 71.9%; jewelry and silverware increased 69.2%; medical up 56.9%; groceries up 25.4%; automotive up 25.2%; publications up 22.6%. The most notable decreases were found in transportation with a decrease of 38.5%, wearing apparel down 20.6% and miscellaneous down 38.6%. In the field of station business, exact movements of business be¬ tween September and October cannot be given. However, it is obvious that station business increased upward of 9%. In retail advertising, station business held its own or possibly decreased slightly. National spot retail business rose sharply, but with small unit volume did not offset the material drop in locally placed retail advertising. Station business in general advertising increased to the order of 12%. Some of this is due to a 170% increase in political advertising. In so far as unit volume is concerned, the increase is most largely to be accounted for in a 56% increase in toilet requisites advertising, wearing apparel increase of 46%, a 99% increase in the medical classification, a 6.7% increase in agriculture, and a building mate¬ rials increase of 104%. All of the above percentages are based on program units without reference to announcement units. Announce¬ ment units rose approximately 20% ; in retail classification the increase was approximately 11%, and in the general classification an increase of approximately 33%. To Review -A program unit equals one minute of program time. An an¬ nouncement unit is equal to one announcement, unless the time consumed is one and one-half minutes or longer, in which case the units are calculated to the nearest number of minutes. Advertising business placed in radio is classified under two major headings — “Retail” and “General.” Retail advertising is defined as the advertising placed by businesses which sell direct to consumers. General is that advertising placed by businesses which sell for resale and not direct to consumers. In retail advertising the analysis presented here classifies retail businesses according to their principal retail line. No attempt is made to classify according to specific product advertised. This classification is most useful to the broadcasting industry since adver¬ tising is placed by the individual retail store and such buying units as have similar business are grouped together. In general advertising the classification is primarily an analysis of the products advertised by businesses engaged in selling to others for resale. The significance of this to the radio industry is that advertising campaigns are carried for individual products and in this analysis similar products are grouped together. Also included in the general classification are such service businesses as financial, insurance, professional and service, and transportation which, be¬ cause of their nature, could not properly be considered retail. There appears on the following page Table I of the October, 1940 Broadcast .Advertising Unit Report. In this table, program and announcment units are presented for retail and general adver¬ tising with a total of the two showing the source of such business by national network, regional network, national non-network and local placement. The tables which follow present: Table II pro¬ gram units by type of sponsoring business and source of business, first for retail and then for general advertising. Table HI presents program and announcement units by type of sponsoring business by class of station, first for retail advertising and then for general ad¬ vertising. Table IV presents program and announcement units by type of sponsoring business and by station metropolitan district or city population, first for retail, then for general advertising. How to Use It In the September unit report, it was pointed out that the value of this analysis could be found in the comparison of your station’s business with that of the industry as a whole or with the business of stations like yours — same power, same Commission classification, etc.; and, further, with stations located in cities approximately the same size as the one in which your station operates. The purpose of such comparison is to determine whether you have succeeded in selling all of those types of business which are using radio adver¬ tising. For example, if drug stores are using radio advertising any¬ where in the United States and continue over a period of time to do so, your logical conclusion would be to approach the drug stores in your city fortified with this report which shows that drug stores are using radio advertising. Going beyond the suggestions made in the September report, the October report furnishes new clues of value in your sales activity. Let’s consider first your quest for new business. In retail advertis¬ ing, which is largely locally placed, amusements are making a greater use of radio. One encouraging aspect of this increase is that pro¬ gram units are completely accountable for the increase since there was a slight decrease in announcement units. In theatre advertis¬ ing both program units and announcement units are up. In miscel¬ laneous program units are materially up and announcement units down. There’s a double clue — go after your local theatre and amusement people to place advertising. .And, if you already have them as announcement accounts, use this material to convert their business to programs. Building supplies and contractors show an increase in business placed. Drug stores are materially up. Heating and plumbing program units increased more than 150%. In general advertising, agriculture is up ; building materials more than 100% up; hotels and restaurants materially increased; housing equipment and supplies 50% up. Industrial advertising, though small in volume, increased more than six times in units. Medical up almost 100%. Public utilities increased; publications increased; toilet requisites and wearing apparel rose sharply. There is another side to examine in this analysis. ' Where busiftess is droppinf! off. there is an indication for sales effort and service to hold accounts. Automotive advertising, both retail and .general, declined in non¬ national network business. True enough this is largely due to auto show advertising in the month of September which did not r%eat in October, but the automotive field is a large one and the station will want to make every effort to hold that business. Professional and service advertising dropped sharply. The business placed by opticians-optometrists and chiropractors accounts largely for the decreases, although dentists placerl materially more advertising. It is realized that there exists serious limitation in the use of the unit report since only two months’ analyses are available. However, with each successive month, the value of the report increases. Future Reports The N.AB Research Committee at its meeting January 10th heard a report of the unit plan operation. The Committee was pleased with the cooperation of the industry in this undertaking. However, it is not satisfied that a sufficient number of stations are reporting to enable industry projection at thi,; time. They were particularly reluctant to attempt estimates of industry totals on a sample of cooperating stations which changes from month to month. In the near future the unit analysis will be presented in summary form in the NAB Reports and the complete analysis will be sent to only those stations cooperating. The reference filed by advertiser is receiving special attention at this time and this work is progressing rapidly. When the file is complete, reference work will be done for cooperating stations on a cost basis. The value of the broadcast advertising unit analysis is dependent upon the cooperation of the industry. By all means, see to it that your station is included. January 17, 1941 — 61