Broadcasting (July - Dec 1938)

BR OA DC AST II and Broadcast Advertising Vol. 15. No. 4 WASHINGTON, D. C, AUGUST 15, 1938 $3.00 A YEAR— 15c A COPY The Spot Picture Is Bright for Autumn And Only a Business Upset Can Spoil a Fine Season; September to Be a Stirring Month of Time Buying new campaigns, either scheduled or in the works. Some agencies refuse to give out such data; others readily supply it. A few typical quotations are given. Appended to this commentary is a list of spot advertisers, with all available information that could be obtained relative to their autumn plans. Station lists were unavailable in a great many cases for the simple reason that schedules were not complete. Roundups of time-buving ranks in principal centers follow: NEW YORK SPOT broadcasting will enjoy a good autumn — better than anyone would have believed possible three months ago. If general business conditions hold up, new records for spot may be set. In the planning stage right now are more spot compaigns than last year at this period. A slump in business, however, would mean the waste-basket for a lot of them because advertisers are still jittery from the effects of the late 1937 and early 1938 depression. Definite prophecies are difficult at the moment because of the prevalence of sponsor and time buyer vacations, many of which were deferred to late summer because of intense activity during the slow early summer. The result is that September is going to see a wild scramble for choice station time, with an unusually high percentage of campaigns being placed during the month. Ordinarily many of these lists would have been drawn up in August, which actually has been unexpectedly dull as a time-buying month. They Expect Big Things A careful check of agency and advertiser ranks in the important time buying centers reveals a general note of optimism, often tempered with an if or but. Most cheerful is the ever-optimistic Los Angeles. Most cautious is Detroit, where the collapse of auto production has discouraged those who spend money for advertising. Detroit, however, is hoping for better days and plans are being made for autumn introduction of new model autos. And even in this blackest part of the spot picture it is stated that 1938 auto time buying will at least equal that of 1937. In Canada the business slump has not been so severe. Younger in radio advertising experience, it has not met the time-saturation problem. A definitely improved autumn is indicated in all quarters. These views of spot prospects in the United States and Canada were obtained by Broadcasting's correspondents, who have been combing the ranks of agency, sponsor, transcription, representative and station executives for more than a month. Intensive effort was made to get definite information on Outlook for spot broadcasting this coming fall and winter is the best in radio history, according to New York agency radio directors and time buyers, transcription manufacturers, station representatives and station sales managers. Unanimously they point to inquiries from hordes of national and regional advertisers regarding programs and times available, to the congestion of the networks who have little to offer during the more desirable periods, to the improvement in business conditions which should make for increased purchasing power and increased advertising appropriations. But when they are asked about business actually signed, it's another story. Advertisers are asking for plans for spot campaigns ; agencies are querying stations regarding audience tested programs and available time; hundreds of campaigns are being shaped up on paper, but only a few new spot appropriations have been authorized by advertisers and fewer still have contracted for time. As one agency executive phrased it: "Right now in August we're making our plans, but September will be the ordersigning month." A DETAILED list of spot accounts placed and contemplated for the fall and winter, based on a survey by correspondents' of BROADCASTING in principal time buying centers, will be found on pages 58 to 72 inclusive. This is not to imply, however, that there will be any dearth of spot business even if many of the contemplated campaigns do not materialize. As the appended list of spot advertisers clearly shows, there's enough business already set to insure against any slump in spot this fall. The flexibility of this medium, the ease of adapting the sales appeal to meet local conditions, the advantage of reaching each audience at the best time in each community, the ability to select stations that will cover just those markets desired, so that the advertising of any product can be perfectly correlated with its distribution, the use of spot for intensive coverage of a particular market, to meet aggressive competition or to bolster slipping sales, spot radio's value in testing the pulling power of a new program, its invaluable assistance in introducing a new product to the public and in obtaining distribution through dealers — these and other attributes have firmly fixed spot radio among major advertising media. Ironically enough, the delay in the placement of much spot business is due to improved business. Executives who worked night and day to keep things going during the recent recession and who spent their hours away from their offices worrying about business are, now that the tide has turned, enjoying vacations which are well deserved but which, unfortunately, are postponing approval of schedules. Again and again, in asking for plans for this account and that, Broadcasting was told that spot radio campaigns had been planned and that business would be placed as soon as the advertising man ager returns from vacation, probably right after Labor Day. Most of these campaigns, they say, have been discussed and approved in theory and the final authorization of the completed schedules should be forthcoming without further preamble early next month. CHICAGO A BANG-UP fall for spot radio is the consensus of 50 Chicago advertising agencies and station representatives surveyed by Broadcasting. Of particular significance to Chicago radio is the number of new accounts using spot and extended use of spot by old accounts. Foremost is the Kellogg account, which was recently shifted from an Eastern agency to J. Walter Thompson Co. and Hays MacFarland & Co. New to spot radio is the Corn-Kix account of General Mills placed through BlackettSample-Hummert, and that agency is using spot instead of network for F & F Laboratories this fall, a reversal of last year's placements. Still more impetus is given Chicago spot placements by the addition of Skinner Mfg. Co. (raisin bran) and the new liquid dentifrice of Procter & Gamble, both accounts being handled' by H. W. Kastor & Sons Adv. Co. Another new account is Lasto Products (permanent wave) with spot being placed by First United Broadcasters Inc., which will also place considerable spot for Williard Tablet Co., returning to spot this fall after using none last year. Another new Chicago account is Bree Cosmetics (Gibbs & Co.) handled by Ruthrauff & Ryan Inc. The O'Cedar spot list will be considerably expanded over last year, according to John H. Dunham Co., agency in charge. Time buyers for large Chicago agencies state that billings for this fall will greatly exceed those of last year. According to Gene Fromherz, time buyer of J. Walter Thompson Co., that agency's Chicago billings were up 125 % as of June 1 and billings for fall indicate a gain of 150% over the fall of 1937 without the Kellogg account. Hugh Raeger, of First United Broadcasters Inc., states that "business is definitely up with billings 30% higher than last fall and winter." In looking back over a succession h'nwed on page 56) BROADCASTING • Broadcast Advertising August 15, 1938 • Page 13