U. S. Radio (Jan-Dec 1959)

(see hourly breakdown in accompanying chart) , will be weighted upward in the months to come. There are many other facets ot radio life that are expected to influence tlic How ol ad dollars to the sound medium: • Radio receivers have increased to 145 million sets, a jump of five million over 1957. « An estimated 37.8 million are in automobiles. « More than 49 million U. S. homes — better than 97 percent of 50.5 million — have at least one radio set, with 6.S percent having two or more sets. The year 1959 will be charac terized by one oi the biggest all-out industry sales efforts in the history of radio. Advertisers and agencies across the country will hear the radio story from the medium's ]jersonal representatives. New and up-dated research data, case studies on the varied uses of the medium, and data on listening p,iiterns, where radio sets are located in the home and the essentially adult complexion of the radio audience will be carried to the meeting room — and not the doorstep — of advertising decisicjn-makers. Plans for this year's effort have lieen formulated during the closing weeks of 1958. The reasons can ht found in the fact that although total radio billings increased in 1958, it did not satisfy the goals originally set up a year ago by radio's sales forces. Total gross radio billings in 1958 — like the moon-siiot Explorer — fell short of the mark but at the same time did make significant advances. In fact, radio and television are the only two national media to show increases in 1958. In the case of radio, gross billings increased three percent instead of nine percent as predicted a year ago by many industry observers. From a media point of view, radio fared well. According to the November 7 issue of Printers' ink, newspapers (national business) were nuining nine percent behind 1957 and magazines were off six percent. Television (network and spot) was up seven percent and radio (network and spot) was running two percent ahead of 1957. This radio estimate, of course, does not include local business which accounts for more than spot aiKl network combined. And from all indications, local billings have had another good year as radio more and more takes on the local characteristics of the new'spaper medium. It is no secret, in fact, that radio sales executives have set their sights on advertising lunds liadilionally directed at newspapers. The problems that radio as well as all media faced in 1958 were c hiefly twc^-fold: • There was a general slowdown in business activity. • Total advertising vcjlume dropjjed Icjr the first time since 1942. The 1958 estimate is $10.1 billion, a two percent decline from the all-time 1957 high ot $10..H billicm. There were also special problems that belonged to radio only that affected the medium's total volume for the year: • Network radio underwent a radical alteration — easily the most complete face-lifting since radio began. • Many advertisers capitalized on the dual rale structure of stations and scjught to buy spot time locally at lower rales than nationally at "spot" rates. One o{ the most significant developments of 1958 that has direct bearing on what will happen in 1959 was the re-evaluation — and in many cases a re-discovery of radio by advertisers. Many new firms entered radio for the first time last year; others invested an increasing share of theii budgets to the sound medium. In addition, there was a great variety of radio usage as advertisers capitalized on the medium's flexibility. Invested Heavily An example of an advertiser that re-evaluated its use of radio upward is Chevrolet which invested heavily in spot radio— to the tune of between $2 million and $3 million — aft^r an intensive sales effort by the radio industry. As for new advertisers, John Blair & Co. issued a list of 55 accounts who were "new" to radio for the first quarter of 1958 alone, (see Radio's Future Sales Opportunities, May 1958) . Among the varied and interesting uses of radio that popped up last year were the four-network purchase by Pepsi-Cola Co. involving a reported expenditure of $500,000 for 13 weeks (this is in addition to heavy spot use) as well as the preChristmas drive by Royal Type HOMES USING RADIO AVERAGE PER MINUTE — BY HOURS OF DAY (Increase in 13 of 18 Hours) New York Time Mon-Fri C < Sun-Sat Source: A. C. Nielsen Company Oct., 1958 (000) Oct., 1957 (000) 6-7 2,412 2,563 7-8 6,202 5,609 8-9 8.467 7.156 9-10 7,679 6.286 10-11 6.941 6,189 11-12 6.252 5,609 12-1 6.399 6,286 1-2 6,399 6,237 2-3 5.464 5,077 3-4 4.923 4,593 4-5 4,529 4.110 5-6 4,676 4,593 6-7 4.923 4,980 7-8 4.184 4,158 8-9 3.397 3.530 9-10 3.003 3.530 10-11 2.707 3,385 11-12 2.215 2,901 26 r. S. RADIO • January 1959