NAB reports (Jan-Dec 1934)

The National Association of Broadcasters NATIONAL PRESS BUILDING ***** WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS ♦ NRA * M * ★ Vol. 2 No. 7 FEB. 8, 1934 Copyright, 1934, The National Association of Broadcasters BROADCAST ADVERTISING IN DECEMBER Broadcast advertising in December amounted to $6,152,615.00 and marked a gain of 2.8% over the volume of the previous month. National network volume increased 7.5% over the previous month, while the revenue from the sale of time over regional net¬ works rose 9.2%. Individual station advertising volume alone decreased, revenues in this field having declined 3.9% as against November. The drop in individual station business is probably due to two factors: (1) The absorption of an increasing proportion of the profitable broadcasting hours by network programs on the larger stations, this trend having been in progress for several months; (2) What seems to be a slight seasonal decline on the part of radio advertising over the smaller stations. In the latter case, the trend in advertising volume seems to parallel that of the newspaper field. However, it is impossible to say whether the entire decline in small station revenue has been due to this factor or whether part of it has been caused by unsettled retail business in some sections of the country. The total volume of broadcast advertising over national and regional networks and individual stations during December is found in Table I: TABLE I TOTAL RADIO BROADCAST ADVERTISING VOLUME 1933 Gross Receipts Cumulative Class of Business November December July-December National networks. .. $3,439,088.00 $3,697,283.00 $16,200,287.00 Regional networks .. . 74,051.00 80,878.00 243,632.00 Individual stations . . . 2,472,718.00 2,374,454.00 12,997,432.00 Total . $5,985,857.00 $6,152,615.00 $29,441,351.00 National network advertising in December was especially en¬ couraging, the volume of this type of business having been the greatest that it has been in twenty months, and being exceeded only by four months in the entire history of the industry. Decem¬ ber network advertising was 23% higher than during the same month of the previous year and was 2.5% above December 1931. Monthly revenues for national network advertising during 19321933 are found in Table IA: TABLE IA NATIONAL NETWORK ADVERTISING BY MONTHS (1932-1933) Gross Receipts Month 1933 1932 January . $2,796,143 $3,984,289 February . 2,627,761 3,891,023 March . 3,013,574 4,300,833 April . 2,465,664 4,004,484 May . 2,287,163 3,632,442 June . 2,065,195 2,997,296 July . 1,826,407 2,416,616 August . 1,907,481 2,285,680 September . 2,102,809 2,492,951 October . 3,255,839 3,035,631 November . 3,465,801 3,059,848 December . 3,697,283 3,005,683 Total . $31,516,298 $39,106,776 A comparison of the monthly volume of advertising over na¬ tional networks, regional networks and individual stations during the latter half of 1933 is found in Table IB: TABLE IB BROADCAST ADVERTISING VOLUME 1933 Gross Receipts National Regional Individual Month Networks Networks Stations Total July . $1,826,407.00 $16,069.00 $2,092,899.00 $3,918,441.00 August . 1,907,481.00 32,262.00 1,753,504.00 3,693,247.00 September ... 2,102,809.00 14, 281*00 1,832,251.00 3.949,341.00 October . 3,255,839.00 26,091.00 2,471,606.00 5,741,850.00 November ... 3,465,801.00 74,051.00 2.472,718.00 5.985.857.00 December ... 3,697,283.00 80,878.00 2,374,454.00 6,152,615.00 Total ...$16,200,287.00 $243,632.00 $12,997,432.00 $29,441,351.00 On the basis of the available figures for the latter half of last year it would seem that the probable total receipts for the sale of broadcast advertising time during 1933 amounted to approxi¬ mately $57,000,000.00. Comparison with Other Media A comparison of the expenditures for radio advertising as against those of other leading media is found in Table II: TABLE II ADVERTISING VOLUME BY MAJOR MEDIA 1933 Gross Receipts Cumulative Advertising Medium November December July -Dec. Radio broadcasting $5,985,857.00 $6,152,615.00 $29,441,351.00 National magazines1 9,535,635.00 8,254,556.00 48,049,277.00 National farm papers . 436,830.00 265,645.00 2,003,637.00 Newspapers . 41,356,796.00 40,069,311.00 233,941,275.00 Total . $57,315,118.00 $54,742,127.00 $313,435,540.00 1 National magazine totals are for 108 periodicals, prepared by Publishers’ Information Bureau, Inc., from which source national farm papers and networks are also taken. There was a slight seasonal decline in newspaper advertising volume during December, a situation which was paralleled in the national magazine field. National farm papers experienced a rather heavy drop in advertising revenue and were in a slightly poorer position than in December 1932. As far as can be estimated, newspaper advertising volume dur¬ ing 1933 was approximately $441,000,000.00 and was 11% below that of the previous year. National magazine volume during the year totalled $97,637,665.00 and was 16% below the 1932 level. Advertising in national farm papers showed a decline of 17% over the previous year, advertising of this type totalling $4,131,861.00. The national network decline of 18% in 1933 as compared with the previous year therefore constitutes a favorable showing. It must be remembered that contrary to the situation with regard to other media this decline constitutes the maximum recession in business which has been experienced from the peak years of the industry. As far as can be determined, total radio broadcast ad¬ vertising volume has decreased approximately 20% since 1931, the only other year for which any figures are available with regard to all parts of the broadcasting structure. • Page 293 •