Broadcasting (Jan - Mar 1949)

AD ANALYSIS J. rN«rr r • precise evaluation of various Radio Ditrers rrom Print "^e^^^ "8. Because of descriptive and "RADIO differs to a considerable degree from magazines and newspapers in terms of types of goods and services advertised," Ralph Cassady Jr., managing editor of Journal of Marketing, and Robert M. Williams, both of the U. of California, state in an article in the .January issue of Harvard Business Review. Titled "Radio as an Advertising Medium," the article reports on an analysis of advertising on four Los Angeles network affiliates and four independent stations, in four Los Angeles newspapers and three national weekly magazines. In addition to radio's differences from the printed advertising media, the researchers also found differences between the network and the non-affiliated stations "which indicate that some degree of specialization prevails within the radio field itself. No doubt some of the differences result primarily from the relatively lower cost of advertising on independent stations in situations where the market is local. There is some indication that individual stations are in a position to specialize in advertising certain types of products because of differences in types of listeners which are related in tum to differences in types of programs." Concluding that "it is impossible at this time to present a definitive explanation of the strong points and limitations of radio as an advertising medium," the authors do draw certain hypotheses which they say "may throw some light on the problem." These hypotheses are: "1. Radio is a medium which lends itself to emotional appeals. The quality of seeming to speak personally to the listener is very helpful in this connection, particularly in the sale of certain types of products such as drugs. "2. Because of the inability of listeners to remember a large number of individual prices, radio is limited in its effective use of price advertising, which is necessary in the sale of some goods. Thus, in such a use radio has only complementary possibilities: "3. Radio perhaps more than most other media needs a brand or a manufacturer's name to tie to, whereas labels are either lacking or unimportant in some lines. "4. Radio is not equipped to publicize effectively goods requiring the use of appeals to the visual sense, such as the long sweeping lines of an automobile. "5. Because of its complete reliance on momentary sense impressions, radio is not adapted to describing the technical aspects of products such as the advantage of a motor car powered by an engine in the rear. But it may be used in some instances indirectly, as to awaken interest in visiting showrooms where such a car can be examined personally. "6. Women make up the large bulk of the radio audience. Consequently, those products on which women exert the largest purchasing influence are most effectively advertised through this medium — foods, drugs, cosmetics and so on. "7. Radio seems to be utilized by advertisers who do a great deal of advertising of all sorts. Note, for example, that the nine industries which ranked highest in advertising expense as a percentage of net sales in 1940 (according to FTC) — drugs and medicines (13.94%), cereal preparations (13.08%), cigarettes (11.30%), soaps and cooking fats (10.94%), distilled liquor's (9.79%), malt beverages (8.97%), tobacco products (8.20%), cigars (5.40%), and fruit and vegetable canning (4.49%) — are largely the same as those which are the highest in radio advertising. It is possible that those companies which follow shotgun methods do not need to attempt a other limitations radio is some^ what handicapped when used for retail advertising. Hence those firms promoting products like furniture which are publicized largely if not entirely at the retail level do not have much opportunity to use this medium. "9. Radio advertising lends itself particularly to publicizing repeatsales merchandise in general demand at a low unit price so that the consumer can easily be induced to try out the item. Commodities not so promoted appear to be at some disadvantage in the use of this medium." 8 Buy Tello-Test' PIONEER telephone quiz show, Tello-Test, was sold last week to CKLW Detroit, KCRG Cedar Rapids, Iowa, WMPS Memphis, KUTA Salt Lake City, KWWL Waterloo, Iowa, WTTH Port Huron, Mich., WASA Havre de Grace, Md., and WRRN Warren, Ohio, according to Radio Features Inc., Chicago, producers of show. ANTI-CLEAR GROUP DISCLOSURE that in excess of 100 stations have joined in an anticlear channel movement, which appears to assure the minimum budget of $10,000, was made last week by Ed Craney, managing director of Pacific Northwest Broadcasters, in calling an organization meeting Jan. 28 at the Palmer House in Chicago [Closed Circuit Jan. 17]. Simultaneously, Mr. Craney revealed that Sen. Edwin C. John Sen. Johnson E. B. Craney NARSR Corporation Form Adopted; Committees Named NATIONAL Assn. of Radio Station Representatives formally adopted the corporation form at a special members meeting in New York Jan. 19, when by-laws previously passed by the directors were approved. Directors of the new corporation are the four officers, Frank M. Headley, president; Adam J. Young Jr., vice president; F. Edward Spencer, secretary; and Lewis H. Avery, treasurer. In addition, H. Preston Peters, Eugene Katz and Edward Petry were also made directors. The NAB code was once more endorsed by the association. Members also adopted the resolution disapproving of giveaway shows involving free advertising for nonsponsor donors of prizes. Adopt Resolutions Resolutions adopted included also approval of NAB actions, a sales -anagers executive committee decn^d to prevent free use of stacn f;.cilities for commercial ad:5,nt3.ge3 and elimination of efforts 0 buy ':h-iie on a per inquiry basis. Mr. Hsadley announced the apPage 32 • January 24, 1949 pointment of the following committees: Spot promotion and research — Eugene Katz, chairman, Robert Meeker Edward Shurick. Programs— Paui Kaymer, chairman, James Lebaron, Otis Rawold. Trade Practices— George Brett, chairman, Fred Brokaw, Louis Moore. New Ventures— Don Donahue, Chairman, George Boiling, Paul Senft, Robert Reuschle. Rates— Hines Hatchett, chairman Arthur McCoy, Fred Brokaw, Mort Bassett. Public Relations and Publicity—H. Preston Peters, chairman Adam J. Young Jr., Henry Christal. ' Television— Russell Woodward chairman, Joseph Weed, Edward Codel Sales strategy— Adam J. Young Jr chairman, Fred F. Hague, William Faber. Association policies— Joseph Weed, chairman, Joseph Dimlin, Harry Friedenburg. Industry Promotion — F Edward Spencer, chairman, Charles Hammerstrom, Jerry Lyons. Chicago Counsel — John Blair, chairman, George Hollingbery, John Pearson, Edward Voynow. Index and Statistics— Lewis Avery, chairman, Dan Danenholz. Legal— Edward Petry, chairman, H. Preston Peters, Eugene Katz, Wythe Walker. son (D-Col.) new chairman of the Senate Interstate & Foreign Commerce Committee, will fly to Chicago to address the luncheon. Sen. Johnson has reintroduced his bill of last session which would limit AM station power to a maximum of 50,000 watts and would not preclude duplication of clear channels. Mr. Craney announced that 112 replies had been received to his letter of last month seeking, support for an organization of independent broadcasters. The total one-hour rate of these stations is in excess of $10,000— the figure set by Mr. Craney as the minimum for establishment of a Washington office, with a paid director. Invited to the Jan. 28 session, in addition to independent broadcasters, were members of the former Regional Broadcasters Committee and anti-high power advocates who participated in or wrote letters favoring the Johnson Bill at the last session of Congress. Mr. Craney said there were not enough stations in the old Regional Broadcasters Committee to "keep up the fight." "We are faced with the prob Chicago Meeting Jan. 28 lems of both necessary funds for a revitalized organization and with active support by members who will inform their Congressmen and Senators of exactly what the 'big boys' want to do with American radio. "We are going to have to maintain an active office in Washington. We need a paid director who will keep us posted and will get out and make a fight in our interest. Unless the membership directs otherwise the organization should work on no other problem than clear channels in AM and possibly stratovision in TV. You and I do not want Government ownership of radio in the USA. Our best guarantee is to keep it in many hands. 20 Super Power Stations means concentration and then Government ownership." Fee Is $10 The registration fee for the Chicago meeting will be $10, including luncheon. Mr. Craney advised that "only those affiliated with stations not owned by a network or by a Class lA station will be admitted" to the closed sessions. Mr. Craney said that Walter J. Damm, WTMJ Milwaukee, had arranged for the meeting rooms at the Palmer House. The session will begin at 10 a.m. He pointed out also that John Sheppard 3d, former chairman of the Regional Committee, "is 100% out of the broadcasting business" and will not attend the Chicago meeting. BROADCASTING • Telecasting