Broadcasting (Oct 1931-Dec 1932)

Proving That Broadcast Advertising Pays By ROY C. WITMER Vice President in Charge of Sales, NBC NBC Business Strides Held Typical of Entire Industry; Sponsors Testify as to Effectiveness in Sales IT IS INDEED a ticklish proposition for any industry which has maintained a rec j j ord of expansion j and progress during these days of generally reced: ing sales and profits to point Mr witmer i to that record : with any degree of emphasis. If j it is not handled discreetly, one I might be accused of boasting and ! "rubbing it in." But, after all, any industry which has forged ahead in the face : of recent economic conditions, naturally enough takes a pride in such a record; and, in citing our notable progress, we of the broadcasting field do so with anything but intent to gloat over it. Our : purpose is rather to demonstrate : to other industries that we are ad. mirably equipped to help them re: accomplish their former prosperity i and smoothness of operation. NBC Held Typical I, i THROUGH the past few years of ; business downswing, the broadcasting industry has been fortunate i enough to advance consistently. ! Generally speaking, the record of 1 the National Broadcasting Company typifies the continued busiI ness increase of organizations throughout the broadcasting industry. In order to clarify the following , comparisons, we shall eliminate fig' ures pertaining to the relatively few weeks of NBC's existence in 1926. (NBC was founded in NoI vember, 1926.) Here is a listing of NBC gross ; business (excluding talent charges) and number of NBC clients, yearly , from 1927 through 1931: NBC Gross Clients I 1927 $3,760,000 78 I 1928 8,780,333 137 I 1929 14,310,382 166 1930 20,088,887 192 1931 25,607,041 231 Increases Reflected t IN ORDER to make a comparison with 1932 possible, the following table shows how advertising expenditures on NBC networks have mounted, according to a comparison of the first six months' expenditures for each year since 1927. These figures are the gross amounts i for time alone (no talent included) : WHILE MOST industries have been on a marked decline during the last several years, broadcasters on the whole have experienced a considerable growth in business. This can mean but one thing, according to Mr. Witmer, and that is that radio has proved its efficacy as an advertising medium. Besides offering some figures showing NBC gains, he presents some emphatic testimonials regarding the radio medium as a whole. All of which should provide excellent material for broadcasters to use in winning over recalcitrant prospects. Januarv-June 1927 " 1928 " 1929 " 1930 " 1931 " 1932 $1,612,422 3,988,927 6,701,023 9,234,611 12,344,632 15,109,645 Is there an explanation for the remarkable way in which this upclimb has sustained itself? Yes! It is that broadcast advertising sells goods. In addition to stimulating sales, broadcast advertising accomplishes other important benefits. But that undeniably is the chief one. Some Examples IN THE FILES of NBC are numerous examples of mounting sales volumes brought about by broadcast campaigns conducted on NBC networks. Let me cite a few of them. The general manager of a perfume manufacturing organization reports that for the eight months' period his firm sponsored a program over NBC (to which a preponderant part of its advertising appropriation was devoted) sales increased 25 per cent over the preceding eight months. He adds: "It has created acceptance for a new, complete line of our products." The vice president of the advertising agency handling the account of a prominent cereal company states that the sales of this firm showed a marked increase from the very first week the program was on the air. He specifically says that sales for January, 1932, increased 11 per cent over January, 1931; sales for February, 1932, increased 18 per cent over February, 1931; sales for March, 1932, increased 58 per cent over March, 1931. Testimonials of Advertisers HERE IS an extract from an article by Martin L. Davey, president of the Davey Tree Expert Company, which appeared in a recent number of Broadcasting: "We began broadcasting the first Sunday in January, 1930, a short time after the stock market crash and we continued for six months. During the first five months of 1930, our volume ran 20 per cent ahead of the same period in 1929. The business in June, 1930, was equal to that for June, 1929. During the last half of 1930, we encountered a moderate decline in volume, but the total amount for the year 1930 was a little over $3,000,000 or almost the same amount that we did in the boom year of 1929. "During the year 1931 we experienced a moderate decline in volume, although we served just as many clients as we did the preceding year. This simply meant that the average order was somewhat smaller in 1930. Even in this bad year of 1932, we are serving almost as many clients as we did last year, although the average size of the orders is again somewhat smaller. "There is no doubt that our radio program has had a powerful effect in maintaining a very fair volume of business during this period Run on Stores THE GENERAL sales manager of a well known ginger ale company declares: "We have no hesitancy in saying that without radio broadcasting it would be impossible for us to enjoy the tremendous increases in busi ness we are experiencing each year." A letter from the advertising agency of a drug product manufacturer reports that "salesmen and dealers have reported a run on the stores after certain broadcasts." An official of Cities Service Company states in an article: "A salesman in Dallas, Texas, closed a contract for 9,000 gallons a month as a result of a contact brought about by our radio efforts. "Our security department has felt the effects of our broadcasting in no uncertain manner. Sales amounting to 2,000 shares of stock were made in one city as a result of a contact brought about by our radio efforts." Sales Pushed to Peak A PRODUCER of paints and varnishes reports as follows: "Among the dealers who were recently questioned on the value of the program in creating sales, 53 per cent had traced new customers and definite sales results to the broadcasts. Forty-three per cent were unable to give any dollar estimate of the results, but more than half of these, now that it was suggested to them, remember a few, or several, or many sales, when the customer had mentioned the program as a source of information." A honey producer instituted a program over NBC on Jan. 28. The advertising agency remarks: "It will undoubtedly interest you to know that during the month of February, honey sales were within $100 of the peak business month ever experienced by the company." A dairy organization writes as follows: "We went into radio believing it would give us the best publicity and sales stimulus during the period for the money spent and we were not disappointed." Copy in a trade paper advertisement of Swift & Company reads: "Meet the Stebbins Boys of Bucksport Point! Swift & Company's famous radio entertainers who broadcast nightly over 35 of the country's most powerful stations. In eight weeks they made Brookfield Butter over 50 per cent better known in 28 major cities." I could keep on citing similar examples by the dozen, but the ones enumerated are no doubt sufficient to demonstrate that broadcast advertising sells goods. And there you have the primary reason why volume of business and number of clients have mounted and continue to mount for the broadcast industry. JSe 1927 1928 1929 1930 1931 1932 UPSWING of radio advertising since inception of NBC, as indicated by expenditures on NBC networks. WFIW Seeks Move WFIW, Hopkinsville, Ky., on Sept. 10 filed with the Radio Commission an application for authority to remove to Louisville. The application presumably will be designated for hearing. September 15, 1932 • BROADCASTING Page 9