Broadcasting Telecasting (Oct-Dec 1959)

RADIO-TV: $3 BILLION BY 1963 Doherty sees important growth for half-decade Broadcast advertising is moving toward the $3 billion mark and should reach it by 1963. Richard P. Doherty, president of TvRadio Management Corp., Washington, said the half-decade growth of radio should carry the broadcast media from nearly $2 billion in 1958 to more than $2.9 billion. In an interview with Broadcasting, he said radio and television should share both dollar growth and a steadily increasing share of the total advertising expenditure. Assuming gross national product (GNP) continues to expand, Mr. Doherty said the 1963 media picture should look like this (total advertising expenditures) : 1963 Estimated Volume (Million S) % Share Total advertising $13,000 100 % Radio 850 6.5 Tv 2,210 17.0 Newspaper 3,640 28 0 Other 6,300 48.5 *1958 Actual Volume _ (Million $) *% Share Total advertising 510,300 100 % Radio 616 6.0 Tv 1,360 13.2 Newspaper 3,120 31 0 Other 5,204 49.8 *. Media expenditures for 1958 and prior years from McCann-Erickson — Printers' Ink data This prediction is based on these probabilities: • Radio (total) will hold its own in share of all advertising — between 6% and 7% of total advertising expenditures. • Radio will improve its relative local position, increasing its share of all local advertising from 9.42% to 10.5%. • Tv will continue to get larger share of local advertising dollars. • Tv will continue to expand its percentage share of the nation's advertising outlay. • Newspapers will continue to receive more advertising dollars but will get a smaller share of media expenditures, both nationally and locally. Why will local radio increase its share of the all-media dollar? "Since 1954," Mr. Doherty said, "local radio has shown a persistent though slight upward trend in its percentage share of all local media dollars, rising from 8.6% in 1954 to 9.4% last year. "The number of radio stations will undoubtedly increase in the next halfdecade. Basic experience indicates that in most markets the addition of sta tions takes away business from existing station but also develops additional new sources of revenue. "In the last five years, radio generally has been doing a more effective local sales job. Local radio competition has become more intense, leading to improved methods of selling. "Radio has made more extensive inroads into the food chain and supermarket field, a highly important segment of total local' advertising that once went almost exclusively to newspapers. "Stations have learned to provide packages that are increasingly appealing to food, supermarket and other local retail advertisers. They fit their rate cards and schedules to the retailers' needs — one or two-day saturation campaigns, for example that follow the business patterns of retailers. Attractive nighttime and weekend deals have been helpful. "Livelier local competition by stations has helped build local audiences, especially in larger markets. "Better and wider use has been made of the excellent sales tools provided by Radio Advertising Bureau." At the same time, Mr. Doherty said, radio hasn't attained a growth in revenues equal to the 24% deflation in dollar value since 1948. He recalled that radio advertising totaled $516 million in 1948 when it represented about 11% of the total advertising dollar. Despite a 50% increase in the number of stations, however, radio now has only 6% of the advertising dollar nor has total radio volume risen as much as the nation's 69% expansion in GNP. Tv on the other hand, which accounted for less than 1 % of the advertising dollar in 1948, accounted for 13.3% in 1958, according to Mr. Doherty. This 1958 tv revenue figure was IV2 times that in 1950 when tv was becoming established. Within the radio industry, he said, shifts have occurred in sponsor allocations between networks and stations. "As of 1949," he explained, "35% of the nation's total radio advertising was placed through the networks. By 1958 network placements accounted for 9.4% of the radio budget and the remaining 90.6% was derived from local, regional and national spot advertisers. "Certain radio markets, especially the larger ones, have experienced substantial revenue increases. Likewise certain individual stations have run far ARB Wed. Thur Fri., Sat., Sun., Mon. Tue., Date Sept. 23 , Sept. 24 Sept. 25 Sept. 26 Sept. 27 Sept. 28 Sept. 29 ARBITRON'S DAILY CHOICES Listed below are the highest-ranking television network shows day of the week Sept. 23-29 as rateO by the multi-city Arbitro ratings of American Research Bureau. Program and Time Network Ike, Steel Hour (10 p.m.) Groucho Marx (10 p.m.) Lucille Ball-Desi Arnaz (9 p.m.) Gunsmoke (10 p.m.) Loretta Young do p.m.) Steve Allen do p.m.) Bing Crosby (9:30 p.m.) Copyright 1959 American Resea rch Bureau CBS-TV NBC-TV CBS-TV CBS-TV NBC-TV NBC-TV ABC-TV for each n instant Rating 20.8 19.1 21.3 27.8 25.3 26.6 26.8 NIELSEN REPORT ON VIEWING BY DAY & DAY PARTS Saturday night no longer is the loneliest night in the week according to A. C. Nielsen Co. figures which show that the average tv home spends 3 hours and 46 minutes before the set after 6 p.m. on that day. Also, this represents the heaviest viewing in the week. The breakdown by day parts is in a special analysis of the radio-tv audience in the 1959 Yearbook issue of Broadcasting, now being mailed. The study includes the trend of radio and television ownership in the last 1 1 years; audience program tastes; analyses of audience composition, and other related data. The Nielsen Television Index breakdown of 'iewmg per home per day: Night (6 p.m. -6 a.m.) Afternoon (noon-6 p.m.) Morning (6 a.m. -noon) Total hours per day Monday-Friday 3 hrs. 25 min. 1 hr. 26 min. 40 min. 5 hrs. 31 min. Saturday hrs. 46 min. hr. 23 min. 47 min. hrs. 56 min. Sunday 3 hrs. 26 min. 1 hr. 27 min. 16 min. 5 hrs. 9 min. Week 27 min. 25 min. 37 min. 5 hrs. 29 min. Ful 3 hrs. 1 hr. VIEWING PER HOME PER DAY. The time the average tv home spends watching television each day is depicted in the table above, which not only shows the daily average over the full week but also breaks down the daily average by day part and days of the week Data is NTI March-April 1959. BROADCASTING, October 5, 1959 (BROADCAST ADVERTISING) 45