NAB reports (Mar-Dec 1933)

former classes of goods. Clothing and apparel not only includes clothing proper, but furs, haberdashery, and similar products. Drugs and pharmaceuticals include all drug products, and proprietary remedies or health products other than articles which are definitely foodstuffs. Beverages include coffee and tea, soft drinks and beer. Confections include the item of chewing gum which is so classified in the national classifications used by other media. Household equipment includes electrical equipment such as wash machines, cleaners and similar articles as well as articles of furniture. Soaps and kitchen supplies are comprised almost entirely of soaps and cleaners. Insurance and financial advertising includes that of banks, loan companies and similar organizations as well as of insurance companies. Retail establishments include only those retail con¬ cerns, such as department stores and general stores not concentrat¬ ing upon any one class of product. All other retail shops have been grouped under the class of commodity which they handle principally. This will be discussed at more length in the inter¬ pretation of the national spot and local advertising volume of different products. Tobacco products include all smoking materials. The composition of the national network classifications require no particular comment. Of greater interest, however, is an analysis of the relative amounts spent on national spot and local broadcast advertising by different industrial groups. This is found in Table IX. The accessory business of national spot accounts is composed primarily of gasoline and oil advertising, while that of local ac¬ counts centers on garages, service and repair shops. Local clothing and apparel business is comprised of clothing stores, fur shops to a considerable degree, women’s dress shops, lingerie shops and similar establishments. National spot drug advertising is almost entirely proprietary medicines or health drinks, while local business is con¬ centrated principally in sponsorship of announcements or partici¬ pations by drugs stores. Local foodstuffs advertising is mainly that of grocery distributors, meat markets and similar retailers. National spot beverage advertising is mainly with regard to coffee and soft drinks, local advertising with respect to beer. Chewing gum is the principal item in national spot confectionery business. Furniture stores are the principal local advertisers in the local household equipment field. Soaps are the leading advertisers in both the national spot and local fields with regard to their classification of product. Savings banks and loan companies loom most important in local financial advertising, and insurance and credit companies in the national spot field. One item of particular interest has been the concentration of ac¬ counts in certain fields found on many local stations. It is sur¬ prising the number of stations which do not seem to be culling thoroughly the potential market for radio broadcast advertising in their localities. One station, for instance, may have a large number of beauty parlor accounts, and another be particularly successful with grocers. The former may have overlooked the grocery market and the latter the beauty parlor market. This general trend with regard to all types of advertisers, was one of the most noticeable features of the reports received from stations. It points to the con¬ clusion that it would be profitable for many stations to review their business in an effort to determine whether they were actually cover¬ ing their potential market for radio broadcast advertising. Analysis of general trends over a period of time is possible only with respect to network advertising, since the July figures are the first ones to be collected for individual station advertising. The monthly revenues derived from various types of industry by na¬ tional networks during the current year are found in Table X A comparison also is made in the table between the monthly totals for 1933 and those of the two previous years. The general trend with regard to network radio broadcast ad¬ vertising and advertising over other media is as follows: For July 1933 network advertising was 25% behind that of the same month of the previous year. National magazine advertising in July of this year lagged 11% behind 1932. Encouragement was to be found in the farm paper field where a gain of 6% over last year was experienced. This trend should be duplicated to some extent in broadcasting stations serving the rural field. At least it points to an opportunity for trade promotion. For the first seven months of 1933 national network advertising is behind 1932 by 33%, maga¬ zines by 26%, national farm papers by 31% and newspapers by 17%. In the broadcasting field encouragement is to be found in the fact that in June network advertising lagged approximately 31% behind 1932, and 39% in May. July therefore shows a de¬ cidedly improved position. National network volume is approxi¬ mately 15% below the first seven months of 1931. The decline in national network business seems to be due to general business conditions rather than any competitive situation The heaviest declines in revenue have been almost without exception in the industries which have felt the depression most severely, or in fields such as tobacco where a fierce price war unfavorably affected advertising expenditures. Encouragement is to be found in a 15% increase in gasoline and oil advertising over networks as compared with 1932. The usual review of business conditions has been omitted in this month’s report in view of the summary of trade development printed in last week’s NAB Reports which covers this period. Broad¬ casters will note with interest the preliminary report of the Federal Reserve Board for August which shows a 16% increase in depart¬ ment store sales as compared with the same month last year. In¬ creases were as follows: Boston, 16%; New York, 9%; Philadelphia 17%; Cleveland, 42%; Richmond, 22%; Atlanta, 25%; Chicago^ 21%; St. Louis, 23%; Minneapolis, 12%; Kansas City, 21%; Dallas, 29%; and San Francisco, 2%. TABLE X NATIONAL NETWORK BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS (July 1933) Type of Sponsoring Business January February 1-2. Automobiles and accessories: (1) Automobiles . $117,476 $123,096 (2) Auto accessories . 377,800 326,638 3. Clothing . 30,193 36,885 4-5. Drugs and toilet goods: (4) Drugs . 231,562 212,558 (5) Toilet goods . 456,967 431,244 6-8. Food products: (6) Foodstuffs . 475,332 451,087 (7) Beverages . 275,404 234,280 (8) Confections . 101,067 89,707 9-10. Household goods: (9) Household equipment and furniture . 32,103 50,182 (10) Soaps and kitchen supplies. . 110,472 95,900 11. Insurance and financial . 84,606 75,529 12. Radios . 39,160 35,600 13. Retail establishments . . . 14. Tobacco products . 355,549 334,230 15. Miscellaneous . 97,039 100,244 Total advertising volume (1933) $2,784,730 $2,597,180 Total advertising volume (1932) $3,984,289 $3,891,023 Total advertising volume (1931) $2,637,000 $2,591,000 March April May June July Jan.-July Cumulative $170,005 326,865 46,593 $111,164 284,024 51,627 $108,934 316,395 52,900 $ 89,716 261,283 21,993 $ 96,016 245,407 8,910 $799,677 2,141,522 251,116 260,452 442,052 209,116 405,180 205,545 367,634 195,004 339,589 154,030 305,899 1,521,600 2,776,823 606,784 249,961 107,599 484,529 273,217 92,937 448,245 262,588 19,023 371,253 250,961 7,266 327,344 225,816 3,488 3,172,315 1,820,349 421,087 77,401 116,601 85,871 57,275 43,079 76,626 82,370 35,600 43,765 80,221 85,870 44,491 16,383 71,158 92,721 44,261 23,305 63,794 79,110 46,717 286,218 538,573 586,077 303,104 364,249 92,422 $3,004,130 239,278 74,223 $2,462,970 206,870 51,223 $2,293,704 241,288 62,319 $2,065,195 162,355 67,282 $1,809,473 1,909,289 537,223 $17,064,973 $4,300,833 $4,004,484 $3,632,442 $2,997,296 $2,416,616 $25,226,988 $3,141,000 $3,164,000 $3,036,000 $2,835,000 $2,764,000 $20,168,000 Page 179