Broadcasting (Oct 1931-Dec 1932)

id® ADC AST 0 The NEWS MAGAZINE of VOL. 3, NO. 7 WASHINGTON, D. C THE FIFTH ESTATE OCTOBER 1, 1932 $3.00 PER YEAR — 15c A COPY Price Quoting Held an Advertising Stimulus By MARTIN CODEL Leading Agency Executives Laud Decisions of Networks; Forecast Briefer Announcements, Added Business ALMOST with one accord, executives of leadingadvertising agencies handling radio accounts see a stimulus to radio business in the decisions of the NBC and CBS networks to Mr. Angus permit pricequoting in the commercial announcements accompanying sponsored programs. Responding to telegraphic inquiries from Broadcasting, these executives had nothing but praise of the networks for lifting their self-imposed taboo of the last five years against the mention of prices — a taboo now deemed unnecessary because of the listening public's interest in radio advertised goods and because of the fact that advertisers now have so many real bargains to offer. Listeners Not Disturbed THAT PRICE-QUOTING, in the two weeks since the ban was lifted, has not offended the radio audience, is indicated by the paucity of adverse comment from either the press or listeners. Had the networks not announced their decisions, it is probable that the average radio listener would never have noted the difference. Practically no fan mail protesting price mentioning has been received by the networks, although many sponsors immediately availed themselves of the price-q u o t i n g privilege. Broadca sting generally is ex Mr. Kynett pected to benefit by the decision, although most local accounts have long been allowed by practically all stations to quote prices, within limitations. The networks' determination to limit the number of price quotations (see article in Sept. 15 issue of Broadcasting) and to allow no competitive or comparative price mentions is accepted as entirely reasonable by the agency executives who answered the queries of the editors of this magazine. CBS made a public announcement of its decision, submitting a statement to the press and circularizing advertisers and agencies with a statement by its president, William S. Paley. NBC's decision was first reported through the columns of this magazine, and many of its advertisers almost immediately availed themselves of the privilege. NBC for some time had been allowing price mentions during daytime programs. First of the CBS accounts to quote prices were Funk and Wag nails, Literary Digest; Congress Cigar Co., La Palina, La Gerardine; J. L. Prescott Co., Oxol; Mr. Cecil Horn & Hardart, restaurants; William Rogers & Son, silverware; Barbasol Co., shaving cream; Bourjois, Evening in Paris, and General Cigar Co., Robert Burns. First of the NBC accounts to quote prices were the Great Atlantic & Pacific Tea Co., A. & P. Gypsies; American Tobacco Co., Lucky Strike; Bristol-Myers Co., drugs; Barbasol; General Foods; Stephano Bros., tobaccos; PortoRican American Tobacco Co. ; Dunn & McCarthy, Inc., Enna Jettick shoes; General Electric Co.; Canada Dry Co. ; Frigidaire Corp. ; Waitt & Bond, Inc.; Wildroot Co.; Pepsodent Co.; Campana Corp., and W. A. Schaeffer Pen Co. Lafount Advises Caution WITH THE statement that the Shepard Broadcasting Service believes that "radio advertising has been developed to such an advanced stage that reasonable price mention can be made without offense to the radio audience," John Shepard, III, president of the Yankee Network, announced that effective Sept. 15, it would follow the same policy of price mention inaugurated by CBS. The Yankee Network for years has permitted reasonable price quoting prior to 6 p. m. In announcing its new policy for night programs the Yankee Network stated that "we wish it definitely understood that price Mr. Gannon mention will be allowed only on a 15-minute or longer period." In addition to the agency executives responding to Broadcasting's query, a statement urging caution was made to the writer by Harold A. Lafount, acting chairman of the Radio Commission. That regulatory body has no jurisdiction over programs beyond the broad requirement that they meet standards of "public interest, convenience or necessity." Mr. Lafount's statement, while recalling that stations in the past have been disciplined for "rampant price quoting and direct merchandising" of a questionable character, indicated that the Commission is not averse to the networks' new step, but he cautioned against abuses. He said: "We of the Commission, with the obligation to the people of insuring broadcasting service of the type that will meet the standard of public interest, naturally are inclined to go slow on the innovation of the networks in allowing the mention prices. "It is my personal view that the step may be dangerous unless the utmost caution is exercised. By that I do not mean that the networks themselves will permit abuse of the privilege, but that enterprising independent broadcasters may overstep the bounds of good taste in following the lead of the chains. "The Commission in the past has severely disciplined certain stations for rampant price-quoting and direct merchandising of a character that was unquestionably objectionable to the public. In isolated other cases it has found that price-quoting, handled judiciously, is of distinct service to listeners, particularly those in rural and remote Mr. Hollinshead of commodity Dawson areas. It is an important part of the program to them, because they want to know what the particular commodity advertised which has aroused their interest will cost. "If price-quoting, properly handled, reduces the length of the sales message, it will be a distinct stride forward. Certainly direct mention of prices in programs could be no more objectionable than the long-winded blurbs used in some programs that do everything but mention the exact price of the commodity." Brevity Predicted HOWARD ANGUS, radio account executive of Batten, Barton, Durstine & Osborn, New York, believes that price mentions will obviate the circumlocutions employed by advertisers to get around the former taboo and that commercial programs hereafter will actually have shorter and yet more interesting announcements. "I have always advocated the mention of price on the air," said Mr. Angus, "and believe that it will not only increase the effectiveness of commercials but make the commercials more interesting to the listener. "You remember the days when the sponsors were only able to mention their names, then when the product could be mentioned, and later when they could say something about the product. The moment broadcasting allowed a sponsor to say something about his product he should have been permitted to mention price. It was just an old taboo that kept him from it. "Up to the present the sponsor tried to get over the price of his article by all kinds of subterfuges winked at by the broadcasting stations. This took time and made the commercial more lengthy. Feeling, also, that he could not mention price the sponsor felt he ought to say more about his product. So the mention of pince, in my opinion, will actually cut Mr. Winius October 1, 1932 • BROADCASTING Page 5