Broadcasting (July - Dec 1938)

Prospects Schedules Running Late, Survey Reveals (Continued from page 13) ful summer one agency executive explained the prominence of spot broadcasting during the recession by saying, "Radio is a good depression media, and spot is the most economical use of radio." Spot placements on Canadian stations have gained slightly despite the fact that Procter & Gamble has replaced its spot with a network show, according to Weed & Co., representative firm. Considerable new spot business for foreign language stations is being placed this fall by Chicago agencies, and in addition to mail order accounts Mexican stations have acquired general advertising through Chicago agencies. DETROIT The general attitude in most Detroit advertising agencies for radio this fall — and all other media as well — is one of watchful waiting. Worried by a local employment drop to figures close to those of 1933, these agencies are at present burrowed deep in conservatism and are waiting to see the extent of the anticipated rise in fall business before they recommend widening expenditures to their clients. Spot radio appears to be finding favor in many space and time buyers' eyes because it is sufficiently flexible to be extended or curtailed in rapid order. However, no commitments of any importance are being made, although at least one important agency stated its belief that its spot business this fall — no small proposition at any time — is expected to equal the total for last autumn. The biggest spot splurge of the year in the Detroit agencies comes, as usual, when the new automobiles are introduced. Thousands upon thousands of spots are scheduled by the auto agencies and companies to ballyhoo the introduction of the forthcoming models. Although schedules are not going to be completed this year until the last possible moment, in order to gauge better the extent of the market, there is every reason to believe that the spot radio end of the introductory promotions will equal previous years. Soon to Begin This introductory copy will be first heard, from present indications, as early as the last part of August. Introductions of one or two makes may come by the first of September* but no wholesale tide of presentations will be forthcoming until the latter part of next month. On this basis, therefore, there is no reason to expect any volume of time orders from the agencies effective before the middle of September. Automobile introductions this for Spot This Fall Are Bright fall will be about the same time as was the case last year, although the New York show will take place two weeks later. On this basis, the possibility was voiced by one time buyer that the spot campaigns might be more spread out this year than last, to keep enthusiasm as high as possible right from the time of the introductions until the National Show and the localized shows. Spot copy for the car makers may be expected to be more "alive" than it was last year. In contrast to the 1938 presentations, the forthcoming new cars will bear definitely important design changes which will make apt subject matter to talk about and drum up interest. But the solidity and continuation of original announcements will not be determined until the cars are presented and initial reactions figured. Caution will prevail, regardless of anticipations. LOS ANGELES ALTHOUGH the recession has had marked effect on the West Coast market during the last six months, Pacific Coast agency executives and time buyers are optimistic about prospects for fall and winter. In the opinion of many the next 60 days will see a decided increase in the use of spot radio by many national and regional advertisers. It is the concensus of agency executives that the country is definitely on its way out of the recession and advertisers realizing it are more buoyant. They are gradually loosening their purse-strings, and will give radio a goodly share. Broadcasters, station representatives, transcription producers, program builders and others in the business of broadcasting on the Pacific Coast are of that opinion too. Like the agency men, they declare a prosperous fall and winter is in store for radio and state that many national and regional advertisers have signified their intentions to use spot broadcasting extensively for various campaigns this fall. No particular trend was predicted — live and transcribed announcements, quarter-hour transcriptions and live talent shows will be used — all depending upon the need, they declared. Besides returning to the networks many advertisers plan to supplement this with special spot campaigns on the West Coast, and nationally too. Other advertisers will have two or more West Coast network programs and in addition use spot radio in selected markets. It was pointed out by agency executives that many advertisers are seasonal and conduct only short campaigns. In many cases they too will increase coverage to include more stations and a wider market. Several accounts will double spot coverage on the Pacific Coast. An influx of radio advertisers who have never before used that medium is in prospect. A few will devote their entire budgets to radio in fall and at the first of the year branch out to include other media along with broadcasting. Extensive spot and transcribed announcements, and quarter-hour transcriptions, augmenting live talent programs on local stations, will swell the volume of spot business in the Los Angeles area. Optimism Abounds Two national agencies, placing West Coast accounts nationally, stated that spot broadcasting has proved so effective for certain of their clients that current transcribed campaigns scheduled to end this month will be continued through the year and plans for expansion are being discussed. Similar reports were made by Los Angeles agencies who are placing regional campaigns. One agency reported that two of its regional accounts are planning to go national by mid-September, using spot announcements and transcribed quarter hour programs in selected markets. "Our heavy use of spot broadcasting during the past year is the best answer to queries about our attitude on that subject," said Ray Morgan, head of Raymond R. Morgan Co., Hollywood advertising agency and program builders. He pointed out that with desirable network time at a premium for fall and winter business, more and more spot radio will be used nationally. "Prospects for fall are excellent and we are looking forward to a very busy season," he said. David Hillman, president of Hillman-Shane Adv. Agency, Los Angeles, primarily a regional agency, stated that more spot radio will be used this fall by clients of his agency than in the past. "Our clients are increasing their radio appropriations and making elaborate plans for fall," he said. "In some instances budgets have been increased as much as 50% over that of last year. Some of our clients who have never before used radio are including that medium in their fall program." Ted Dahl, account executive of Allied Adv. Agencies, Los Angeles and San Francisco, concurs with Mr. Hillman that fall will see a decided increase in the business of broadcasting. "General business conditions are improving," he said. "Along with it advertisers are learning how to make radio more profitable. I feel certain that it is going to be a good fall and winter for radio. Many of our regional and local clients are increasing their radio appropriations." Radio budget increases of from 25 to 50% over that of last year, are being made by many clients of Stodel Adv. Co., Los Angeles, according to Ed Stodel, who heads the agency. Alvin Wilder, head of the Los Angeles agency bearing his name, says that radio is an indispensable media and that his clients will use more spot this fall than in previous months. MAJOR MARKET Spot Stations, new plan of station representation, was explained to a group of New York advertisers, agency executives and broadcasters Aug. 4 at a luncheon given by William G. Rambeau (lower left), originator of the idea. Those present included: Reggie Schubel, Biow Co.; Bernice Judis, WNEW; Dorothy Cocks, Lehn & Fink; Frank Smith, John Walker, Robert Donnelly and C. A. Wiggins, General Foods Corp.; Hugo Bell, Lehn & Fink; Fred Kammer, Street & Finney; Ralph Robertson, Colgate-Palmolive-Peet; V. E. Carr, Ward Baking Co.; Fred Cartoun, Longines-Wittnauer Co.; Charles Silver, Arthur Rosenberg Co.; Blavne Butcher, Lennen & Mitchell; Walter Neff, Neff-Rogow; Edward Stewart, Benton & Bowles; Herman Bess, WNEW; Don Higgins and Gary Rand, Time; Bruce Robertson, Broadcasting; George Ramel, Tide; Myron A. Elges, Allan W. Kerr, also Wm. G. Rambeau Co. Page 56 • August 15, 1938 BROADCASTING • Broadcast Advertising