Sponsor (Nov 1946-Oct 1947)

TIh» Ayer IVx ,n l'oiiii-ol-S;il<* Storecasting supplies the missing factor essential for a definitive test <>/ the impact of broadcast commercials CI MMERC I \I. impact is being tested m terms oi actual -ales through a formula being developed bj Matthew ChappellforN W.Ayer. The study is being made for the Vyei organization itself and tl.i \ 'k n> t passing the bill along t" a client. Figures developed from the project arc in hands, hut (hey are not yet corn lated or evaluated. However, uiil. nut being weighed they reveal substantial point-of-sale information in relation to oral selling. Tlie lest was made at the Baltimore Markets in Philadelphia with the co-operation ni the storecasting division of National Wired Music. It grew out of a request of tie head ui the Baltimore chain to Ayer's Warner Shelly for a checkup on the effectiveness of storecasting. There's nothing m w about wind music, storecasting, and corrmercials in grocery stores. A & P tried and discarded it years ago. Muzak, grandpappy ol the music-by-wire business, tried a commercial wired music service for bars and grills without success. But storecasting is more than store music. It will be an increasing merchandising factor as giant markets become bigger and clerk selling in the stores shrink. The Baltimore chain wanted a test. Would it increase sales? Would it be a merchandising plus? And would it increase the per-person sale? Shelly was intrigued with the idea, sold Ayer on it and looked for a research man who would also be impressed with the possibilities. Chappell was suggested, called in licked his chops in anticipation of being able to test advertising effectiveness through the end product 'sales and took over. By this time Hay McClinton, radio chief of \\ri. was in the picture. He saw at once that what was coming up was not simply a study of storecasting but a test formula for .in commercials, and he declared himself in on the prom I The tests took 30 weeks. The first 20 were used to establish a control set of stores in which the commercials would not he heard, and a group of stores that would he guinea pigs, Five different types of ccrrmercials for each of seven products were d lor live weeks each. Inventories wen chicked, double-checked and rechecked through actual store auditing as well as deliveries. The check-ups wen made in stores which were operating under the ( ontrol group as well a tin ston in which the commercials were actually heard. The control and test groups were matched for normal sales potentials as far as humanly possible The loud speakers in the stores were tinned mi and the ten week project was under way. Without slide rule work certain facts have been uncovered. Storecasting doei increase store business foi the products advertised. It gives manufacturers merchandising information not available through any other source. And since it has been proven to mercl andise through sound, it naturally is an ideal test medium for air commercials. Int. i vu-v ers through* m th< stores not only observed reactions hut saw customers go right ovtr to the shelves and pick up the product which they had just heard adveri.s d. The impact was as immediate as that. All research is suspect until it has ; checked. As Warner Shelly puts it. a]] that has been done thus far is to research a reh method. Nothing will be available in detail until everything has been rechecked by further investigation in the same field and cross-checked by research in contiguous fields. Results however have answered the charge of Thurman Arnold that advertising promotes monopoly. Every fact thus far uncovered has proven that an entire industry profits when one of its brands does an agadvertising job. Typically a breakfast cereal commi rcial, featured in the storecasts, sold almost as much of the number two brand as it sold for itself. This case was admittedly extreme, because the products involved are very similar, although their tradenames are not. All other cases show increased product sale as well as advertised brand name sale but not to the same extent as with cereals. The case for building product use as well as brand name acceptance via advertising is only a sidelight on the Ayer-Storecast study. It is vital though and a comprehensive report on the subject will be made in a forthcoming edition of Sponsor. < I III > 1925 cials sold pany as Although the commerthe Cities Service Com"operators of publicutilities and oil properties," Wall Street and the investing publiclooked upon the Cities Service Quartet over WEAF and three other NBC stations as windowdressing for stock sales. The program was a pleasant presentation of "instrumental and vocal music by the mixed quartet." SERVICE 1946 Service features H.gha 37 Cltles ways in Melody piece string orchestra, soloists, the Cities Service Singers i Ken Christie Choir), and Instrumental novelties by members of the orchestra under Paul Lavalle. In the public mind Cities Service is an important factor in the gas, oil, and solvents business. It still purveys "pleasant" music on the air over 72 NBC stations. 20 SPONSOR