NAB reports (Jan-Dec 1935)

The National Assocdation of Broadcasters NATIONAL PRESS BUILDING ..... WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Directoi Vol. 3 . No. 8 * FEB. 7, 1935 NAB REPORTS Conriaht. IB34. The Natianal Asseelatlan at Breadeaiten NRA * • BROADCAST ADVERTISING IN 1934 First Comprehensive Report The 1934 report of broadcast advertising volume makes available for the first time comprehensive data regarding all forms of radio advertising for a full calendar year. Established in July 1933, the statistical reports of the National Association of Broadcasters con¬ stitute the only source where information is available for national and local non-network and regional network advertising, in addi¬ tion to the usual national network figures. The appreciation of the officers and board of the Association is extended to those stations whose cooperation has made possible the compilation and publication of these statistics. Total Broadcast Advertising in 1934 Total broadcast advertising in 1934 amounted to $72,887,169 and constituted a gain of 27.0% above the estimated gross time sales of the medium for the preceding year. Advertising revenues of the industry equalled, if they did not actually exceed the previous peak year of 1931, when according to estimates by the Federal Radio Commission, corrected for duplications, the total gross revenues ranged between $70,000,000 and $73,000,000. The proportion of total broadcast advertising represented by national and regional networks, and by national and local non¬ network business is found in Table I. TABLE I TOTAL BROADCAST ADVERTISING (1934) Class of Business Gross Time Sales National networks . . $42,647,081 58.5% Regional networks . . 717,117 .9% National spot business . . 13,541,770 18.6% Local broadcast advertising . . 15,981,201 22.0% Total . . $72,887,169 100.0% cast advertising represented by local business declined from 26.6% during the latter half of 1933, to 22.0% during 1934. Comparison with Other Media With the exception of farm papers, whose advertising revenues increased 29.0%, radio broadcast advertising experienced the greatest improvement of any medium. National magazine adver¬ tising rose 21.0% during 1934 as compared with the preceding year, while newspaper advertising increased approximately 10.0 %. Radio broadcasting has been the only advertising medium to exceed the level of its previous peak year. Advertising volume of various major media for the year of 1934 is found in Table II. It should be noted that some estimates of newspaper advertising volume are slightly higher than the one pre¬ sented here, the Editor and Publisher estimate being $490,000,000. TABLE II ADVERTISING BY MAJOR MEDIA (1934) Advertising Medium Gross Time Sales Radio broadcasting . $72,887,169 10.8% National magazines^ . 116,268,492 17.1% National farm papers . 5,200,067 .8% New'spapers^ . 485,481,718 71.3% Total . $679,837,446 100.0% ^ National magazine totals are for 108 periodicals, prepared by Publishers’ Information Bureau, Inc., from which source national farm papers and networks are also taken. “ Estimated. Non-Network Advertising The proportion of total broadcast advertising represented by non-network business in 1934 was 40.6%. The distribution of this business among stations of various power and in different sections of the country is found in Tables III and IV, respectively. National network advertising experienced the most rapid rise of any portion of the broadcasting structure. Gross time sales by national networks exceeded the 1933 level by 35.3%, and were 9.2% greater than the volume of advertising experienced during the previous peak year of 1932. Regional network volume de¬ clined slightly during the year. Since data regarding non-network broadcast advertising is avail¬ able only following July 1933, comparisons in this field must be restricted to the last six months of the year. National non-net¬ work advertising, often referred to as national spot advertising, was 16.8% greater during the latter half of 1934 than during the same period of the preceding year. Local broadcast advertising, on the other hand, failed to register any gains. Gross time sales of this class of business were 3.2% less during the last six months of 1934 than during the correspond¬ ing portion of 1933. Improvement occurred during the latter months of the year. Whereas local advertising was 20.4% less in July 1934 than during the same month of the previous year, monthly volume either equalled or slightly exceeded that of 1933 from September to the close of the year. Improvement in retail trade and on the part of the smaller business establishments during the coming year, should aid materially in correcting the present unfavorable local situation. National network volume has increased in relative importance in the past several years. In 1931 broadcast advertising of this type constituted but 51.2% of total radio advertising, and since then rose to 58.5%. National non-network advertising has in¬ creased slightly in importance while the proportion of total broad¬ TABLE III NON-NETWORK BROADCAST ADVERTISING BY POWER OF STATION (1934) Power of Station ^ Over 1,000 watts . 250-1,000 watts . 100 watts . . Total . Gross Time Sales $13,408,584 45.4% 12,132,301 41.1% 3,982,086 13.5% $29,522,971 100.0% This includes high-powered regional and clear channel stations ranging from 5 kilowatts upwards in power. TABLE IV NON-NETWORK ADVERTISING BY GEOGRAPHICAL DISTRICTS (1934) Geographical District Gross Time Sales New England-Middle Atlantic Area . $9,815,695 33.2% South Atlantic-South Central Area . 3,944,650 13.5% North Central Area . 10,822,445 36.4% Pacific and Mountain Area . 4,940,181 16.9% Total . $29,522,971 lOO.O^o • Page 717*