Broadcasting (Oct 1931-Dec 1932)

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ilROADCASTD The NEWS MAGAZINE o/^THE FIFTH ESTATE VOL. 2, NO. 9 WASHINGTON, D. C. MAY 1, 1932 $3.00 PER YEAR — 15c A COPY Broadcasters Report Business Improving Prospects for Summer Advertising Brightest in Years; Networks and Well-Located Stations Optimistic THE BUSINESS of broadcasting is looking up. Retarded somewhat by the general depression, radio in many instances is nevertheless I reaping new rewards from the ! tendency on the part of many adivertisers, national and local, to give j the audible advertising medium at least a trial. Par from losing renewal accounts, or meeting insurj mountable obstacles in acquiring ii'new accounts, broadcasters stratI'j egically situated for serving favori| able markets are for the most part S finding business improving. This is true despite the spring j i and forthcoming summer seasons, which normally herald a diminution : of advertising budgets. Radio is j I rapidly proving itself an efficacious | year-round advertising medium, ,and for the exploitation of sum! I mer goods and services the prospects now appear brighter than in ! several years past. The conclusions here stated are general, based on reports reaching Broadcasting from broadcasters and agencies alike. There are exceptions aplenty, of course, particularly among local low power stations, but the exceptions do not disprove the general rule that radio advertising is definitely on the upgrade. Now is the time when the agencies are completing their summer schedules, making up their lists for all media for the hot months that follow Decoration Day, May 30. At this time many agencies are also making up their fall lists, some even preparing "copy" for early , 1933 placement. The rules followed I heretofore in preparing "copy" for printed media apply no less to the relatively new radio medium, and ! the stations on their toes for busi!ness during these and the ensuing ! j months are the ones most likely to |j be rewarded. Agencies Wide Awake THAT the agencies, more and more of which are going into the radio field, are alive to the tremendous sales-stimulating possibilities of radio was particularly manifest at the meeting of the American Association of Advertising Agencies in Washington in mid-April. The utmost friendliness toward radio and the problems of the broadcasters was evinced on all hands at the radio session of the A. A. A. A., particularly when radio programs came in for strong criticism for DESPITE the general depression, the business of broadcasting as a whole is on the upgrade. Although there are numerous exceptions, chiefly among the local low power stations, the majority of broadcasters and advertising agencies make encouraging reports. The networks particularly are increasing revenues over past years and are consequently expanding their facilities. Transcription manufacturers are optimistic in view of the prospect of politicians using their medium this election year. Offsetting this, however, are the fight being waged by foes of radio, the threatened copyright fee increase and, for some stations, the cost of reconditioning equipment. their "overcommercialism," as reported more fully elsewhere in this issue. Defending radio advertising as a sales medium, one delegate, W. C. Hoyt, president of the Charles W. Hoyt agency, New York, even went so far as to say: "A few years ago we didn't have radio as a means by which to advertise. We used newspapers, magazines, billboards and other forms of advertising. What has happened in the last few years in the case of certain advertisers is that they have given up all other forms of advertising and are using radio exclusively. In many instances where that has been done the sales are showing greater increases than they did when they used those other forms of advertising. It seems to me that that is rather indicative of the fact that certain programs must be pleasing to the public or they wouldn't respond in that way to the sales of the products advertised." Enlightened leaders in both the radio and agency business, not to omit managers of national advertising accounts, are finding radio a natural supplement to printed advertising. The argument is frequently advanced that nearly every product advertised in print can secure added marketing stimulus by the use of the radio medium, and many new accounts are coming from long-established print advertisers. Right now the emphasis, of course, is on seasonal products like outing goods, soft drinks, confections, gas and oil, automobiles and automotive supplies, foods and the like and on services like tourist travel, auto and tire repairs, etc. This is true both locally and nationally. Manufacturers of seasonal goods are turning more and more to radio, and it is significant that railroads, bus companies and tourist agencies of various kinds are doing likewise. In a few states appropriations to be devoted partially to radio advertising have actually been made to encourage tourist travel, while in many communities the local chambers of commerce are using the radio for similar purposes. More Transcriptions SIGNIFICANT too is the fact that at least one large transcription account to create confidence in business and banking is being launched throughout the United States by the New Business Corp., Chicago, bearing the endorsement of the Financial Advertisers Association. The banks, oddly enough, have been among the last to avail themselves of the tremendous good-will and confidence-building potentialities of radio. The placement of transcription business is definitely increasing. A survey by Batten, Barton, Durstine & Osborn, New York agency, revealed that last year there was an increase of 175 per cent in the number of sponsors of electrical transcription features. One transcription company estimates that transcriptions brought $12,000,000 and scores of new advertisers to radio stations in 1931. In the foregoing a rather roseate picture of the business of broadcasting and its prospects has been painted. The reverse is true in many individual instances, but the conclusions here stated seem to be borne out in the industry at large. Exceedingly fortunate these days is the station that commands audience in ripe marketing areas; the lugubrious reports come from stations not so well situated or established with regard to market and audience popularity. The Darker Side THE BROADCASTERS, of course, face many difficulties that sometimes more than offset the favorable conditions and portents for advertising getting. Under constant fire from enemies of Radio by the American Plan — newspaper interests, educators and reformers they must combat a well organized system of propaganda aimed against the integrity of their franchises. Many are now under the heavy expense of reconditioning their studio and transmitter apparatus, the obsolescence factor of which is high because of the rapid advances in the radio art. This means expense and heavy expense. Add to this the proposed levy of a 5-per-cent-of-gross by the copyright owners — an increase in operating costs that must be met in some cases by higher rates to sponsors—and their lot is not altogether a happy one. Among the other favorable conditions to report, however, are the advances being made by the major networks. Additions of stations in strategic locations are constantly being made, with few subtractions. The networks will probably benefit somewhat from politics this year, though, with better proportions of their time sold than before the national elections of 1928, they are not as eager as they formerly were for political business. Politics usually demands the more favorable hours, already sold, and established sponsors must relinquish them on a no-pay basis. Moreover, it is not likely that either of the big parties will have the $500,000 each that they spent on radio in 1928. An encouraging aspect for_ individual and non-network stations May 1, 1932 • BROADCASTING Page 5