Sponsor (Apr-June 1963)

ind Retail Merchant's Assns. The ::i.\ totals New York retail sales losses at $25 million, plus another s^O million lor restaurants and heatres. Federal Reserve figures perhaps test indicate the effects of the strike, ilthough weather, general health of the economy, and special sale peripels must be taken into consideration. According to FRS figures, department store sales in Cleveland over the period 1 January to 30 March (the largest period of the strike covered) were down 4°,' over 1962 and clown 6% in New York, compared with a 4% growth in sales throughout the United States. Reasons for sales droo. II the following points are considered the difference is partially explained: • There was a feeling among advertisers that the strike would be over any clay: therefore, tv and radio commercials were not prepared early during the strike, if at all. • Advertisers who did prepare spots placed them for short periods land pulled them off intermittently thinking the strike would end. • Few, if any, advertisers put all their print money into broadcasting, making any comparisons of media effectiveness inaccurate. • The rush to radio and tv was so great that time was a scarcity and advertisers had to take what they could get. throwing media strategy to the winds. • Manv print-oriented advertisers did not know how to prepare an effective broadcast campaign. • Lack of rime prevented advertisers from designing marketing to comnlement advertising. For example, a tv station which covers a 50 or 60-mile radius might provide some waste coverage. Meanwhile, what's happening to the advertisers who increased radio t\ budgets or tried air media for the first time? New York sfnrpp Manv department stores in Cleveland and New York generally noted for their heavy print newspaper advertising turned to radio and tv during the strike. Some are planning to stick with it. Stern Bros., Bond, Korvette, Alexanders, and John David were among the larger New York stories contributing to radio tv's "strike money." Many more turned to radio exclusively: either adding to their radio budgets or trying the medium for the first time. Some of them in New York were Gimbels, Macy's, Abraham &: Straus, Lord 8c Taylor, Wallachs, S. Klein, B. Altman, Saks — 34th and Bloomingdale's. Bond had been out of radio and tv in New York for some five or six years, but re-entered during the strike. Enough favorable results were recognized to "strongly consider sticking with it." The radio-advertised opening of Macy's Home Improvement Center took place during the strike. A Macy's spokesman reported it was "a huge success: the store was constantly full." Macy's plans to continue on radio for another 50 weeks. Gimbels has been using a bit of radio all along to advertise specific items, but during the strike it decided to heavy-up by using regular 30-second spots throughout the day on six stations. Radio sales managers feel Gimbels understands radio and uses it effectively. The future is expected to bring an increase in the store's radio buying. B. Altman also used New York radio regularly during the strike; it normally uses radio for specific occasions only. Alexanders was happy enough with strike-time radio/tv advertising to consider heavier schedules in both media. Korvette used a limited amount of radio advertising in '62, mainly to advertise store openings and special events. During the strike, item advertising was scheduled and was ineffective compared with newspapers, according to merchandising manager Jack Schwadron. Completely new to radio during the strike, Lord & Taylor found it very effective. The store used the medium for institutional advertising and plans to continue by sponsoring at least one daily program. Stern Bros, used both radio and tv: radio for advertising specific items at different times, and tv for a store sale. In the opinion of Stern's executives, radio did a fine job, but not as good a job as print. Stern's used tv for the first time during the strike and reported it did not substantially increase sales. Net outcome: "We're going back to pre-strike media use." Lane's Department Store launched Washington's Birthday sale spot campaign on WNBC-TV which (Please turn to page 55) Tv and radio spent extra on news Stations' expanded news coverage Lobbied up additional sponsor money. W ABCTV reports extra cost was S20.000 a week; WCBS-TV, §50,000 a week. Appearing on WABC-TV Big News Special (above) are three Herald Tribune staffers SPONSOR 15 aprii. 1963 41