Broadcasting (Jan - June 1936)

Record Year Behind^ Radio Soars Onward Industry Leaders Optimistic; $100,000,000 Figure Forseen in 1936; Day and Summer Sales Expanding "AS RADIO GOES, so goes the nation's business." That phrase became almost axiomatic during 1935. I Broadcast advertising volume, i showing a 20% increase over the i preceding year, led all other advertising media, with an aggregate I likely to reach $87,000,000 when the final statements are checked for the 12-month period. First to shake off the depresI sion two years ago, radio now is looked upon by men in many industi'ial walks as a business baromi eter. They have not been deceived, because the general upturn I in business has followed closely the ; broadcast advertising indicator. With the record year behind, the broadcasting industry is looking ! toward a 1936 that may catapault it into the $100,000,000 class. An increase of only 13% over 1935 j will do the job. Early trade sumi; maries and the tenor of Broadcasting's annual symposium of ! prospects for the new year, abI stracted in this article, tend to i bear out this prediction, 'i Increases rather than cuts in radio appropi'iations will be the rule in 1936. Advertisers, more radiowise than ever before, are definitely inclined toward year-round rather than split-season schedules. The habitual summer sinking spell in broadcasting flattened out noticeably last year, and will be virtually non-exhistent during the next year or two, according to industry reactions. Day Hours in Demand DEMAND for daytime hours, which have proved their sales force, unprecedentedly large in 1935, will be accelerated in 1936. Supplementing the phenomenal increase in transcription and other spot business has been the use of locally built studio programs by I some national advertisers — a form of national placement that is des, tined to increase, j Transcription library services, ' j which came into their own last j year, proved a boon in local sales I and programming. Their full effect will be felt, in 1936, it is exI pected. i Of the $87,000,000 gross indicated for 1935, about $46,000,000 will be network return. This reflects an increase of some 22% over last year. Regional network volume was about 16% ahead, national non-network volume about 25 7o and li local advertising about 18V2%. The 20% net increase in broadcast advertising for the year, compares to approximate increases estimated for national magazines of something under 8%; newspaper lineage of less than 3% and farm paper advertising of about 4V^%. "Radio circulation" figures spurted during 1935 with the sale of some 5,000,000 new receiving sets. When 1934 closed the estimate was 21,500,000 receivers in about 19,000,000 American homes. The peak audience estimate, with four listeners to a home, was reckoned at nearly 80,000,000 of the nation's 125,000,000 people. Many of the new sets sold were replacements, but the audience available nevertheless was augmented appreciably. A great "mobile audience" also has been established for the radio advertiser during the last halfdozen years, with the increased popularity of automobile receivers. Latest figures of the Radio Manufacturers Association show that 4,000,000 auto receivers now are in everyday use. In the network field, the large demand for desirable time has placed chain facilities at a premium. The last year saw the Mutual Broadcasting System enter the network field as a major market project. Inter-City Group, comprising eight units along the Eastern Seaboard, led among the new regional groups formed. These regional groups are affording national and regional advertisers intensive coverage of particular markets. A decided improvement in program quality during the year, including all of the branches of the medium, was apparent. Springing from the highly competitive nature of the offering of sponsors, program offerings continued to bring to the microphone leadins personages of the theatrical and entertainment worlds. Sponsors have found that to obtain worth while audiences they must excel in programs and that a special radio technique is essential. Many of the evils that accompanied earlier programs have disappeared almost entirely. Prodded by actions of the FCC, stations have refused to let commercial credits run rampant, and advertisers and agencies have come to the realization that infinite care is essential in the preparation of commercial announcements. News Sponsorship THE greatest single advance in programming was the almost universal introduction and acceptance of news broadcasts for sponsorship. Following the lead of Transradio Press, both United Press and International News Service began sale of their news reports to stations for sponsorship. Some 300 stations now have regular news association services, most of which are sponsored. In 1936 the broadcasting industry is expected to develop along several lines. Already commanding the nation's ears, the fact that 1936 is a presidential year will mean more hours devoted to reception and more listeners for the program sponsor. Reallocation plans of the FCC, basically involving horizontal increases in station power, will intensify general cov Net works' Gross Monthly Time Sales NBC-WEAF (Red) % Oain 1935 Over 1934 1934 1933 1932 January $1,729,137 82.0 $1,309,662 $1,031,373 $1,421,034 February 1,620,977 33.3 1,215,998 908,531 1,379,120 March 1,802,741 31.1 1,374,910 1,028,935 1,484,906 April 1,656,283 22.2 1,355,587 809,508 1,297,903 May 1,614,969 12.0 1,441,900 816,665 1,150,152 June 1,464,124 15.1 1,272,480 824,155 979,262 July 1,360,833 12.3 1,212,168 759,155 938,295 August 1,214,807 4.5 1,161,581 869,054 911,950 September 1,234,766 1.4 1,218,219 884,699 904,071 October 1,727,229 6.5 1,621,119 1,228,692 1,064,059 November 1,571,658 .1 1,569,582 1,210,557 1,078,901 Total $16,923,921 14.7 $14,753,151 $10,366,824 $12,604,6.53 CBS January $1,768,949 25.8 $1,405,948 $941,465 $1,348,842 February 1,654,461 19.2 1,887,823 884,977 1,319,414 March 1,829,553 20.0 1,524,904 1,016,102 1,436,050 April 1,615,889 17.8 1,871,601 775,487 1,354,592 May 1,287,455 2.5 1,255,887 624,256 1,326,994 June 1,066,729 15.2 925,989 553,056 915,830 July 910,470 44.5 630,290 445,414 591,183 August 879,019 71.2 518,815 499,638 540,342 September 1,086,900 55.2 700,491 547,208 685.156 October 1,930,512 10.2 1,752,601 1,125,798 972,858 November 1,722.390 2.8 1,682,959 1,277,459 1,105,895 Total .$1.5,7.51.827 19.8 $13,151.7.58 $8,690,850 $11,596,656 NBC-WJZ (Blue) January $1,093,749 10.6 $988,503 $752,052 $1,068,868 February 1,072,186 18.7 902,866 744,209 1,054,490 March 1,156,082 12.4 1,028,552 859,572 1,228,844 April 975,970 5.6 924,623 783,898 1,227,580 May 1,007,981 8.7 926,880 761,281 1,041,195 June 863,511 5.1 821,607 609,830 1,002,039 July 795,525 38.0 576,429 589,662 810,948 August 756,797 55.0 488,202 459,413 756,873 September 873.890 51.5 577,033 582,837 813.377 October 973,789 —7.3 1,050,856 793,199 900,772 November 1.008,789 —2.4 1,028.742 862,949 779.204 Total $10,638,737 14.2 $9,314,293 $7,748,852 $10,684,140 erage. Rudimentary plans for the creation of a Radio Audit Bureau, outlined during 1935, will be carried to fi-uition in 1936, according to present indications. This will enable those who spend the radio dollar to guage more accurately the markets they are covering and the preferences of the audience. The bureau project is supported by stations, advertisers and agencies and would give to radio a counterpart of the Audit Bureau of Circulations in the publications field. Network Chiefs STARTING with the "A's", let's take a glimpse into 1936 with some of the important figures in the broadcasting world! Says M. H. Aylesworth, president of NBC, chairman of RKO, and pioneer in network broadcasting: "The business outlook for radio broadcasting for the year 1936 is excellent. The broadcasting companies will have all of the business that they can conveniently take care of. "We must remember, now that we have reached the stage of popularity, that we o\,'e an additional service of very great importance to the American people. We are offering through American industry and the competitive influence of sponsors, the finest radio entertainment in the world. We must always keep time free for religion, education and public affairs. "Our record is quite good so far and let us be sure that just as the newspaper publishes editorials in the news along with advertisins:, radio broadcasting will continue the great public service for which there is no revenue and which is supported by the money received from sponsors covering their own commercial programs of entertainment and sales." A Stabilized Industry WILLIAM S. PALEY, CBS president, optimistically measured the service of radio during the last decade, and peered into the next ten years of expected development. He said: "In the decade ending with 1935, radio broadcasting has become a stabilized national industry, established on a sound economic basis, and offering an increasingly useful service to the people through its expanding facilities, improved technique and higher quality of program content. "It seems probable that this coming decade will see the industry moving toward a much greater unification of policy as between stations, together with a far wider realization of the potentialities of radio's uses as a medium for communication to the public of cultural, educational and informative ideas, as well as wholesome entertainment. In the field of scientific research we may confidently look for an at least partial fruition of the study which is continually devoted to practical problems in physics and engineering as they affect radio. In the art of broadcasting we should see further gradual development of original and new techniques, applied not only to entertainment of every na(Conttyuted on page 4~) January J, 1936 • BROADCASTING Page 11 1