Broadcasting (Oct - Dec 1950)

How KPFM(FM) Promotes Sponsor's Products In 80 Supermarkets POINT-OF-SALE radio advertising in supermarkets as a new off. shoot of FM radio is doubling the gross income of KPFM (FM) Portland, Ore., Manager Stanley M. Goard has disclosed to Broadcasting. The independent FM station channels music and spot announcements to some 80 city supermarkets , promoting sale of food products : that shopper-listeners can buy in the store. The 20-second store commercials are purchased by food manufacturers through Point-0Salescast Co., Portland, which books the time with KPFM and provides the copy. Donald W. Greene, owner-manager of the firm which was organized specifically for that purpose last May 1, concedes that the idea of storecasting is not new. But he adds: Cites Growing Success Of Storecasting Technique ". . . We've had unusual success, and as far as I know, Portland's program is the only one in which the stores contribute to the cost, as well as the sponsors ... a service Mr. Goard (I) discusses recording of KPFM supermarket storecasting commercials with Announcer Tom Hotchkiss. more attractive both to the participating stores and to the sponsors." Other cities which have inaugurated storecasting in recent years — but without charging the stores — are Chicago, Detroit, New York, Philadelphia and Hartford, Conn. Storecasting in Portland is aired during store hours, from 9 a.m. to 6:30 p.m. with commercials accepted only if the particular product is carried by 90% of the participating stores. Only deviation from the regular KPFM broadcast schedule of continuous music is that involving use of supersonic signals in supermarkets to increase the volume on commercials and eliminate station breaks and newscasts. The storecasting arrangement entails advantages for the station, supermarkets and home listeners alike, according to Mr. Goard. The stores derive on-the-spot help from manufacturers in moving merchandise, vocal salesmanship, and a more pleasant atmosphere for customers and workers. Additionally, merchants extend cooperation in stocking advertising items. Mr. Goard also singles out a limit of three 20-second commercials per quarter-hour and several hours per day when no commercials are aired. Taping In Advance Holds Down Costs To help keep costs down and insure maximum quality announcements, the week's commercials are recorded in advance on reels of "Scotch" sound recording tape, with entire operation handled by the station engineer. Only special equipment needed is a high-frequency oscillator for generating the supersonic signals, according to Mr. Goard. Store equipment is furnished by Point-O-Salescast Co. on a monthly rental basis. This special tape, which eliminates the need for an all-day announcer and requires his services only when he is "fresh," is a prod uct of Minnesota Mining & Manufacturing Co., St. Paul. The firm specializes in production of "Scotch" sound-recording and other pressure-sensitive adhesive tapes for industrial and consumer use. The station engineer, who exercises complete supervision, over all fare, fades out the music as commercials or station breaks come up, feeds in the appropriate high-fre quency signals, and starts the previously-prepared tape recordings, reversing the procedure for resumption of the musical portion of storecasts. Equipment Needs In Markets Within the supermarkets, necessary equipment includes an antenna, from two to six speakers, an FM receiving set, and a volume control mechanism responsive to UHF frequencies. Entire operation is automatic in the stores and requires no attention from employes. With volume control adjustable to any of several high frequency signals, volume not only can be increased in some stores but certain announcements can be either entirely or partially blocked out throughout the store chains — so flexible is it. One example of that necessity arose recently when a bakery initiated a spot drive on behalf of its bread and pastry. Inasmuch as one of the stores made its own pastry, it was able to carry announcements on the bread only through use of a special signal that would cut out the pastry plugs. KPFM enjoys additional revenue from such an operation by virtue of the "somewhat higher price" it commands for the added value of point-of-sale broadcasting. "Cost to the average store is $15," Mr. Goard points out. "However, the main income ... is derived from the purchase of spot announcements by manufacturers who Starting the pi-epared "Scotch" tape recordings once he has "faded out" the storecast music is the KPFM station engineer, who supervises entire storecast operation from the studios of the independent FM outlet. are finding this new medium . . . very successful." One West Coast firm, for example, added storecasting to its advertising schedule and its sales jumped 147% over last year's comparable period, according to Mr. Greene of Point-O-Salescast Co. Another concerned a Los Angeles firm which introduced a product in the Portland area coincident with inauguration of storecast service. Final Success Shown In Volume Figures "At the end of two months, with no advertising except KPFM storecasting, the firm's total volume on the product in Portland was equal to its total volume in Los Angeles — a market five and a half times bigger, where the product had a six years' head-start," Mr. Greene said. Among the 20 products advertised through KPFM are: Borden's Cottage Cheese, Teagarden Preserves, Crown Flour, Roman Meal Breakfast Food, Fla-R-Pac, BegMore Dog Food, Shady Oak Mushrooms, and Par-T-Pak soft drinks. One of a Series BROADCASTING • Telecasting October 30, 1950 • Page 23