Broadcasting (Oct 1931-Dec 1932)

down the length of the commercial announcement. "Another point: I have never known the radio audience to object to anything that was informative or entertaining, and price is informative. "It is not whether the advertiser does or does not mention price that makes commercials palatable or unpalatable to the listener. Any commercial that is entertaining enough to hold his interest he likes; any that is boring he dislikes. So we still have the major problem of how to make commercials more entertaining." Lure to Sponsors HERBERT R. BAYLE, manager of media and research of Brooke, Smith & French, Inc., Detroit, regards the decision of the networks to allow price-quoting as a step in the right direction toward "making radio more attractive to those manufacturers who, from past experience, have found that it was to their best interest to let the consumer know exactly what the cost will be for merchandise that he is asking them to buy. "Advertising," Mr. Bayle continued, "is simply a form of salesmanship, and it is putting too much of a burden on a salesman when you tell him that he can create all the interest and desire but he must not disclose the price that he expects you to pay for the article that he has for sale. "Of course, there should be the same sort of censorship as is maintained by the leading magazines and newspapers, so as to avoid any complications that might be brought up through making comparisons or knocking other products. The quoting of prices should be confined to the manufacturer's own product." J. M. Cecil, secretary of Cecil, Warwick & Cecil, New York, is in entire agreement with CBS in restricting price mentions and stipulating that the amount of time devoted to commercial credit be cut down. He said: "In response to your telegram of September 15th, I think Columbia has done wisely in permitting the mention of price in commercial credits. Columbia is especially wise in surrounding the permission with restrictions. The price of all advertising commodities is of interest of the listener, or the reader, if there exists any interest in the product itself. The radio world knows from experience that some broadcasters if left to their own devices will abuse the commercial aspect of broadcasting, and this experience makes it sure that mention of price would be likewise made abusive unless restrictions were imposed, as have been done by Columbia. Sales Talk Cut "REGARDING Columbia's stipulation that the amount of time devoted to the radio credit be cut down, I think that this too is a step in the right direction, although going too far in that path would eventually wreck the American system of broadcasting. Some kind of regulation of commercial credits must be imposed to conrol the few inconsiderate and shortsighted sponsors whose blatant and tiresome credits revolt the public. It is better that the radio industry itself imposes this restraint rather than the situation be allowed to drift until some outside commercial agency steps in with a stupid censorship." On Avoiding Abuses THAT ABUSES can easily be avoided by the chains, is averred by Joe M. Dawson, vice president and manager of Tracy-Locke-Dawson, Inc., Dallas, who also believes the new policy will stimulate radio accounts. He stated: "It is my opinion that the proper use of price quotations in radio programs is entirely right and proper, just as it is in any other form of advertising. It, of course, can be abused as it is in other forms of advertising, but with the opportunity for censorship existing in chain radio advertising, there is no reason but that it can be controlled. "Price is an important element in much advertising. It is likewise of extreme news interest, and I can see no reason why it should not be used, either in day-time or night programs. I do not think any advertiser should be permitted to use competitive prices or make any reference whatever directly or indirectly to competitive products. I have in mind a motor car manufacturer, who has a new model ready for the market at an attractive price. I can see no reason why this price should not be quoted over the radio. "I believe the proper use of price FORMATION of the Amalgamated Broadcasting System, Inc., a "creative radio program organization" designed to produce programs with the Broadway tradition for advertising agencies, networks and independent stations, was announced Sept. 23. Ed Wynn, celebrated comedian now being featured in the Texaco "Fire Chief" programs over NBC, is president of the new organization. Arthur Hopkins, noted Broadway producer, is director of productions, and Ota Gygi and T. W. Richardson, also wellknown names in the theatre, are directors. Elaborate offices have been established by the system at 551 Fifth Ave., New York. Full plans of the organization have not yet been completed, but affiliation with a nationally known artists booking bureau soon is promised, among other features, so that there will be introduced to the air a new and more showmanlike type of program. Sponsored and sustaining programs featuring both drama and musical comedy will be produced. Among others, it is reported that Irving Berlin, the song writer, and Daniel Frohman, the producer, may join the organization. Accounts Already Signed IT WAS DECLARED that already two nationally known agencies handling large radio accounts have engaged Amalgamated and have placed commercial accounts aggregating more than $1,000,000 with it for the production of new pro DT Departs AFTER four months of operation on a daylight saving time schedule, NBC and CBS and a number of stations in the larger cities of the east returned to Standard Time on Sept. 24. The change will be scarcely noticeable in those centers which observed the summer time, but in other sections the network programs will be heard an hour later. quotations over radio will stimulate radio accounts and be generally beneficial." Charles F. Gannon, director of radio for Erwin, Wasey & Co., New York, and chairman of the radio committee of the American Association of Advertising Agencies, stated the opinion that removal of the price taboo should "increase advertiser acceptance of radio." His reply to our telegram said: "Price is an essential denominator of value. It often is the deciding factor of a sale. Price is therefore news of major importance to the prospective purchaser of competitive merchandise. To {Continued on page 18) grams. It was emphasized that the system will not engage in actual operation of stations over which its programs may be broadcast. For the production of programs, seven specially-equipped studios will be built. It was said that absolute privacy and secrecy will be exercised while productions are in the making, so that copy men, idea men, studio assistants and others will not have occasion to interrupt the production work. Programs Needs Cited THE CORPORATION was created in the belief that the time has arrived for improvement of both commercial and sustaining radio entertainment. Heretofore, it was contended, the creation and direction of programs has been in the hands of persons unfamiliar with the technique of entertainment. Most programs of today, it was held, were created by advertising copy men and radio-minded salesmen and finally approved by advertising men and organizations which cannot reflect the finesse of those skilled in entertainment on the legitimate stage. When productions are ready for presentation, it was said, they will be offered through those channels believed best suited. Advertising agencies and the networks are expected to sponsor certain of them, and independent stations, particularly a selected group of metropolitan stations, also will be invited to participate in this "uplift movement in broadcasting." NBC and CBS Incomes Drop Again in August; Year Still Leading 1931 DROPPING still further from the record low for 22 months established in July, combined incomes of NBC and CBS from time sold to sponsors during August amounted to $2,279,421, according to National Advertising Records. In July the figure was $2,414,296. In August, 1931, it was $2,527,256. NBC reported an August income of $1,745,338 compared with $1,892,427 in August, 1931. CBS reported an August income of $534,083 compared with $634,829 in August, 1931. For the first eight months of 1932, however, the network income figures are still substantially ahead of those for the same period last year, aggregating $27,502,544 as compared with $22,694,788. During August there were slight increases in tobacco, confectionery and soft drinks, oil, soaps and housekeeping supplies and miscellaneous classifications of accounts, but decreases in practically all other lines. The largest decrease for the month was shown in the foods and food beverages accounts. WOR Names Rambeau TO CONTACT middle western accounts, WOR, Newark, has established a branch office in Chicago under the direction of William G. Rambeau, station representative. Answering frequent rumors that WOR will serve as the key of a new national network, A. A. Cormier, sales director, said the Chicago branch would concern itself only with commercial accounts and "in no way reflects a move in the direction of the formation of a new radio chain." KOB Back On Air LEASED to the Albuquerque Journal, KOB, licensed to the New Mexico College of Agriculture and Mechanic Arts and recently moved from Las Cruces, N. M., will probably be on the air by Oct. 1 after being silent since last April, according to Howard E. Ray, newly named manager. Mr. Ray formerly was the "Jingle Man" at KELW, Los Angeles, and for two years was commercial director of KTSM, El Paso. KOIN Buys KTBR THE MANAGEMENT of KOIN, CBS-Don Lee affiliate in Portland, Ore., has purchased KTBR, in the same city, and will change its call letters to KALE. It is a 500 w. station on 1300 kc. It will broadcast CBS sustaining features which KOIN cannot handle. Research Service SPECIALIZING in radio research and marketing investigations, George O. Hackett, well known in radio, has opened offices in the General Motors Bldg., Detroit, to serve stations, advertisers and agencies. He is also handling various sponsored and sustaining programs. Creative Radio Program Organization, Headed by Ed Wynn, Has Unique Service Broadway Artists Are to be Used in Producing Features For Agencies, Networks and Independent Stations Page 6 BROADCASTING • October 1, 1932