U. S. Radio (Jan-Dec 1960)

horizon '60 Spot Radio Moves Up Spot radio, like lootball, has become a business of inches. And owing to the collective selling efforts of representatives and stations, the inches are adding up to forward movement. According to Lawrence W^ebb, managing director of Station Representatives Association, spot radio in 1959 totaled about S179 million, a five percent increase above the 3171.9 million registered in 1958. As for that all-important look into I he months ahead, Mr. Webb says "spot radio may very well go o\er the 5200 million mark in 1960." This steady (albeit slow) climb in billings brings about these questions: • Prom what tjuarters are the increases in radio coming? • ^Vhat's behind the increases? • What tan l)e done to boost the rate of growth? "The upward climb in spot radio use is largely attributai^le to increases in radio budgets by traditional 'sound' advertisers," states ^fr. Webb. "This is especially true in the food category." He also concedes that sales development efforts have helped in bringing new radio advertisers into the field. Mr. AV^ebb, however, touches on a major problem in creating additional advertiser radio outlays. "One of the big obstacles has been a lack of creative effort for radio on the part of advertising agencies. There are indications, however, that this is slowly changing for the better. "Spot radio will connnand increasing advertiser interest and expenditure as agencies devote more imaginative energy in writing copy especially for radio and in using the techniques of sound to pioducc distinctive commercials.' .\s examples of radio campaigns that he believes used radio effectively, Mr. Webb points to the CocaCola drive that encouraged local hi-fi teen dubs and the Bristol.Myers Co. campaign for Trig that emjjloyed local copy as well as a contest among disc jockeys. l^nderlying the step-by-step increases in radio billings are many factors. Among the chiei two are intensified selling and research, according to SRA's managing director. "The representatives and stations tliemselves have been doing a better job of selling. The stations this past year have made conscientious efforts to provide the necessary market information to their national representatives. They have also done a better job of promotion." .\s for research, Mr. Webb says it is significant that new studies on listening have come not only from 1954 1955 1956 1957 1958 1959 Spot Radio Revenue $120,168,000 $120,393,000 $145,461,000 $169,511,000 $171,939,000 $179,000,000 (Estimated by SRA) % Increase Over Previous Year .2 20.8 16.5 1.4 5 Source: FCC estimates except for 1959. the radio side i)ul also from the agency side. For an example oi industry research that has helped, he mentions the study conducted for H-R Representatives Inc. by Market Planning Cor])., a sid)sidiary ol McCann-Krickson Inc. The H-R/Market Planing study deals with the extent to which housewi\es listen to radio. It shows that tiiey spend ai)c)ut four hours and .H6 minutes per clay with radio, compared with one hour and 57 miiuites reading a newspaper. (See Hoiiscii'ivcs Listen, Too, October 1 959) . Agencies also have shown greater interest in radio and have spent lime and money in researching the sound mechiun. .An outstanding example, Mr. Webb says, is the J. Walter Thompson study on radio programming preierences of the American housewife. (See Ladies' Day I-'are. October 1959). In looking aliead to what can be done to boost the rale of spot radio giowth, heie's how representatives feel on the subject. In the first place, it is conceded that i)oth the agency and advertiser have to be sold. Consecjuently, an effort even greater than in 1959 is expected to be directed tcjward the cliein side. Stations are also urged to increase their progrannnitig developmeni cHoiis, Mr. Webb states, so that tlie l)est possible product and sales story can be presented. One of the most important lactors of 19()0 will be the showing of the special sales presentation on spot radio that has been developed I)y memi)er firms of SRA. It has already been shown to the 20 top agencies in the New York area as well as four advertisers. Beginning this month, Mr. Webb will be showing the presentation to member branch offices in other cities so that they can deliver it in their own markets. The cities presently slated are Chicago, San Francisco, Los Angeles, Detroit and Atlanta. • • • 22 U. S. RADIO January 1900