Sponsor (Oct-Dec 1964)

2 percent with the third group and increased by a sharp 17 percent with the largest and most important group. In the highest volume category television represented 38 percent of all advertising expenditures. • Radio advertising decreased in the first three groups, but with the larger breweries it registered a heavy 330 percent increase over the last two years. (From .056 percent of the per barrel advertising expenditures in 1961, radio enjoyed 17.8 percent of per barrel expenditures in 1963.) • The average per-barrel allocation for advertising among all four groups was $1.88 in 1963, varying with the size of the producer from $1.26 for the smallest to $2.43 for the largest. • Taking the average of $1.88 per barrel, ad money was distributed in the following proportions: television, 30.1 percent; outdoor, 18.5 percent; point-of -purchase, 20.1 percent; radio 15 percent; miscellaneous, 9.5 percent; newspapers, 4 percent; national magazines, 1 percent; regional magazines, 2 percent. • Television, which quickly loomed as the favorite medium of brewers, has shown a significant rise in use. Between 1958 and 1963 spot tv spendings rose 52.3 percent and network tv 48.2 percent. • Dollars in spot tv far outnumber the dollars in network tv. Figures for 1961 show brewers spent $45,977,000 in spot and $5,788,000 in network. In 1963, brewers spent up to $61,380,000 in spot and $7,062,000 in network. An Edward Petry and Co. study, released earlier this year, showed that the five largest-selling beer companies — Anheuser Busch, Schlitz, Pabst, Carling and Falstaff — nearly tripled their spot tv investment between 1957 and 1963 with an increase of more than $17 million. In 1963 the "big five" sp>ending in spot tv was double that of the second medium used to sell beer — outdoor advertising. (See Sponsor, July 27, for more on Petry study.) Radio advertising by brewers continues to grow. The Radio Bureau of Advertising lists brewers in 8 of the top 50 rankings in spot radio expenditures for 1963. Top user of radio was Anheuser-Busch with $6,110,000 followed by Carling with $4,875,000 and Ballantine with $2,992,500. These three breweries ranked 6, 8 and 12 respectively. Altogether, they accounted for about $40 million in radio advertising. Beer itself has not changed very much over the years, but packaging and advertising have. New innovations such as pull-tab lids, plastic handles and wide-mouth glass mugs have renewed interest in the ancient brew. Special tips to customers on serving beer with peanuts, cheese, bread or pizza also help increase consumption. And too, jxjpulation growth now includes WW-11 babies. In the next five years, one of the largest beer-drinking groups of all — 20 to 24 years — will increase by more than 20 percent, while the rest of the population will grow from 6 to 9 percent. Nowadays, beer drinkers buy more beer in supermarkets and food stores than in all other retail outlets combined. Beer sales have more than doubled in the average supermarket over the last ten years. A decade ago supermarkets were rc TOP 20 TV USERS -1963, BREWERS INCLUDING DISTRIBUTORS GROSS TIME BILLINGS 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Jos. Schlitz Brewing Co. Anheuser-Busch, Inc. Folstoff Brewing Corp. Pabst Brewing Co. Canadian Breweries, Ltd. Theo. Hamm Brewing Co. P. Ballantine & Sons Stroh Brewery Co. Pearl Brewing Co. F. & M. Schaefer Brewing Co. C. Schmidt & Sons, Inc. Lucky Lager Brewing Co. Piel Brothers Geo. Wiedemann Brewing Co. Miller Brewing Co. Jackson Brewing Co. Drewry's Ltd., U.SA., Inc. Liebmann Breweries, Inc Genesee Brewing Co. Duquesne Brewing Co. Network Spot Total $2,184,000 $7,957,830 $10,141,830 7,283,060 7,283,060 3,192,600 2,873,160 6,065,760 173,900 5,514,630 5,688,530 89,600 4,958,020 5,047,620 229,500 3,220,040 3,449,540 887,800 2,244,650 3,132,450 1,951,800 1,951,800 17,600 1,882,930 1,900,530 1,815,080 1,815,080 159,000 1,416,780 1,575,780 15,300 1,526,840 1,542,140 1,261,330 1,261,330 2,200 1,190,950 1,193,150 1,142,720 1,142,720 1,136,660 1,136,660 12,500 1,062,110 1,074,610 1,039,850 1,039,850 983,840 983,840 808,060 808,060 Sources: TvB/LNA-BAR f or network TvB-Rorabaugh for spot BEER AND ALE TV EXPENDITURES, 1958-1963 Spot Network Total 1958 $40,299,000 $5,874,000 $46,173,000 1959 42,945,000 6,021,000 48,966,000 1960 43,807,000 7,208,000 51,015,000 1961 45,977,000 5,788,000 51,765,000 1962 50,006,000 8,134,000 58,140,000 1963 61,380,000 7,062,000 68,442,000 Percent Change 1958-1963 +52.3% + 20.2% +48.2% Note: Figures are gross time billings only. They include both company and distributor money. Sources: LNA-BAR, N. C. Rorabaugh, TvB. 34 SPONSOR