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ALL-CITY RADIO PRESENTATION is being shown this month in six major-market areas by station members of the San Francisco Radio Broadcasters Assn., a unique cooperative sales and promotion enterprise which hits hard on the value of saturation radio to cover the entire marketing Bay Area. Their theme: The best way around San Francisco is with radio. Showings are slated for that city as well as Los Angeles, New York, Detroit, Chicago and Philadelphia. Key pitch-man is Homer Odom, SFRBA president and v. p. of KABL San Francisco. Preview of the slide presentation in color was shown by CBS' Maurie Webster in New York the first week of August. Project shows pluses to be gained by cooperative selling among five major station competitors in touting the advantages of their market to agencies and clients.
BUSINESS IS BETTERING in all parts of the country. Radio stations report billings are rising and new account activity as well as new sponsors are commonplace in most sections. Among the purveyors of such good radio news: KABC Los Angeles, where V.P.-Manager Bob Hoberman says second-quarter billings represent the biggest sales total in the station's 17-year history; KNX Los Angeles, where Sales Manager Gordon Mason has tabbed as highest volume in seven years a similar second-quarter figure, and KSDO San Diego, where June business is highest ever tabbed by the station since its joining the Gordon Broadcasting group two years ago. Week ending July 1 at KSDO found 20 new sponsors signed, says Manager Joseph Miller.
DOLLAR POSITION of radio stations dipped a bit last year but still holds significant profit margin for owners. New National Assn. of Broadcasters summary shows average radio station earned 7.6% before federal taxes last year, contrasted with the '59 margin of 7.7%. (This compares with tv, which rose for those years from 14.3% to 15.4%.) NAB's James H. Hulbert says typical radio facility showed 5.6% gain in revenue, 6% hike in costs. "Radio stations in larger markets experienced a reduction in profits, while those in smaller market areas showed a slight increase."
BILLBOARD ADVERTISING, hit hard in the past few years, gets another body blow from RAB. Latest summary shows consumer attitudes comparing billboards and radio draw a pattern for radio of (1) telling about new products better, (2) creating more interest in products, (3) making customers feel more favorably toward an advertising product and (4) better reminding consumers to buy. Timeliness of the survey coincides with peak automobile traffic during the recreational and vacation months in the summer when car listening peaks.
HYPOED PROMOTION for stations is the order of the season as broadcasters anticipate renewed interest and rising business. One strong move in preparing for more dollar signs in the entry column has been made by WLEE Richmond, Va., which is asking one of the two top radio stations in each of the leading 75 markets to cooperate in a mutual sales promotion effort. Elements in it: exchange a detailed report on all "unusual or successful sales ideas, sales or station promotion schemes, contest and program ideas" in the preceding month.
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U. S. RADIO/August 1961