NAB reports (Mar-Dec 1933)

A comparison of national network and national magazine adver¬ tising is particularly interesting. It will be noted that national net¬ work advertising of gasolines, oils and automobile accessories is equal to 55% of the volume of national magazine advertising; and in the case of drugs, the proportion is 28%, cosmetics 38.2%, food¬ stuffs 35%, beverages 63%, confectioneries 96.2%, radios 62.9%, and tobacco 62%. This gives some indication of the relative use of the two media by various industries in their national advertising. A breakdown of national magazine advertising for the first nine months of 1933 by types of advertisers is found in Table XIII. TABLE XIII NATIONAL MAGAZINE ADVERTISING VOLUME BY TYPE OF SPONSORING BUSINESS1 1933 Gross Receipts for Month Cumulative Type of Advertising Business Jan. Feb. Mar. April May June July Aug. Sept. Jan. -Sept. 1-2. Automobiles and accessories: (1) Automobiles . $870,627 $666,849 $691,705 $530,420 $348,492 $373,606 $408,317 $355,397 $573,567 $4,818,980 (2) Accessories, gasoline and oil . 335,731 313,837 501,225 667.549 623,336 602,063 672,630 610,255 550,591 4,877,217 3. Clothing and apparel . 85,507 182,811 330,474 430,708 436,178 301,772 177,571 66,456 369,954 2,381,431 4—5. Drugs and toilet goods: (4) Drugs and pharmaceuticals . 658,333 1,060,370 990,206 740.723 671,873 607.176 521,693 430,043 565,833 6,246,250 (5) Toilet goods . 588,057 1,348,068 1,483,960 1,583,233 1,269,237 1,029,392 971,681 878,772 1,137,340 10,289,740 6—8. Food products: (6) Foodstuffs . 1,012,486 1,530,882 1,480,794 1,614,823 1.456,405 1,062,876 1,038,657 846,938 1,017,204 11,061,065 (7) Beverages . 190,181 389,313 426,573 508,550 461,246 406,904 435,198 355,629 478,506 3,652,100 (8) Confectionery . 38,740 60,449 66,241 61,757 56,363 49,270 32,991 51,392 69,257 486,460 9-10. Household goods: (9) Household equipment and furniture 150,292 424,900 465,378 598,130 635,599 365,664 162,714 117,622 387,688 3,307,987 (10) Soap and kitchen supplies . 326,788 643,861 754,695 806,013 801,551 707,253 520,657 458,730 595,870 5,615,418 11. Insurance and financial . 218,406 208,136 220,462 206,827 225,892 211,073 202,773 175,041 238,485 1,907,095 12. Radios . 87,118 64,761 70,395 51,956 52,012 55,675 85,180 81,152 101,454 649,703 13. Retail establishments . — — — — — — — — — — 14. Tobacco products . 336.001 423,131 401,868 446,476 388,573 386,683 376,557 354,784 432,474 3,546,547 15. Miscellaneous . 1,028,894 1,252,491 1,455,731 1,613,426 1,604,299 1,329,073 967,311 813,245 1,465,424 11,529,894 Total . $5,927,161 $8,569,859 $9,339,707 $9,860,591 $9,031,056 $7,488,480 $6,573,930 $5,595,456 $7,983,647 $70,369,897 1 108 national magazines. GENERAL BUSINESS CONDITIONS The general business situation is relatively unchanged since the publication of the last report. There have been further business recessions from the peak of last July. Since September 30 the New York Times Index of Business Activity declined from 78.4 to 76.6 as of October 28th. The Index was 79.8 on September 9th. The Combined Price Index of the Department of Labor dropped from 71.1 on September 30th to 70.4 as of the end of October. During the same period, the Food Price Index declined from 64.9 to 63.4, while farm products dropped from 58.0 to 54.2. Car loadings moved contrary to the usual seasonal upswing, declining from 69.0 to 67.8 as of October 21st. There was a marked decline in automobile production during the month, the Index standing at 33.1 on October 28 as against 57.5 at the end of September. Steel ingot production declined from 50.0 to 40.8 during the same period. There has been a general improve¬ ment in retail trade during the month, though figures are not as yet available from which to judge the full effect of this movement. In spite of the recessions noted above, all of the business indices tend to be appreciably above those of the same period of 1932. Probably the best explanation of the present situation is to be found in the following quotation from the Ocober issue of the Federal Reserve Bulletin: “For the past two months there has been a reaction in indus¬ try from the exceptionally rapid expansion of activity during the spring and early summer months. Notwithstanding this reaction, business was in considerably larger volume in August and September than in March. “At the time of the banking holiday industrial activity was close to the lowest level of the depression. Almost immediately after the reopening of the banks there was an increase in activity. The increase was accelerated by the prospects of increased costs and price advances as a result of processing taxes and code provisions and also by anticipation of inflation. In particular, industries making semifinished, storable goods were influenced by these prospects; some industries, notably textiles and shoes, advanced production rates in the early sum¬ mer to the highest levels on record. “The decline in industrial activity during the past two months has come, in large measure, in the industries in which expansion previously had been most rapid.” At the present time, two basic problems loom most important as determinants of future business recovery. The first of these is the necessity of materially increasing mass purchasing power and at the same time the seeming necessity of raising prices to levels which will enable the payment of dividends and interest upon the more reasonable pre-depression capital structures. The second problem is that of absorbing excessive plant capacity in the basic industries without having such absorption resulting in a too great drag upon reemployment. The reconciliation of these factors is the real task facing business and government at the present time. Page 218