Evening star., 1925-03-01
STUDY ADVERTISING
EFFECTS ON RADIO.
Leaders Show Division of
Opinion on Matter-Some
Are Fearful of Growth.
BY CARL Fl. BUTMAN.

Ihat advertising is 1nSidlouSly
creeping into broadcasting programs
and that radio entertainment" will
eventually become "thnily yelled
publicity" is charged by some of the
leading exponents of radio and ad-
vertising.
We have all heard what are virtually
publicity talks on coffee, candy, -four,
chewing gum and other commodities
through the air, and also enjoyed en-
tertainment by playing card quartets,
automobile tire orchestras, safety
razor and grocery store musicians.
The butcher, the baker, the candle
stick maker and the whole of in
dustry has been broadcasting of late.
What is it coming to? Think 1t
over!
The question whether advertisers
should pay for broadcaSting'' is caus-
ing concern among broadcasters and
national advertisers, as we'll as the
radio industry itself, but since 1t
Will be up to the fans to decide
eventually, a brief of survey
recently made by Albert Z. Haase of
Printers Ink follows:
Sees Radio Endangered.
The radio industry is discovering
that Good broadcasting means good
business, and extraordinary broad
cacting, extraordinary business" Mr..
Haase points out in his review of
radio broadcasting as a means of ad
vertising and publicity. Conversely"
he says, poor broadcasting means
poor business" Many who are in the
industry realize that If the mad rush
10 get the advertisers dollar for the
support of radio continues, radio
itself will suffer.
Today he claims advertising agen-
cies are offered Is per cent commits
sion by n number of broadcasting
stations for business. One salesman
has secured the advertising rights
from Is stations On the other hand,
stations which do not sell space on
the air are besieged by publicity men,
who seek to talk on certain businesses
and collect from the manufacturers.
OveradVertiSing will Kill radio and
at the same time hurt advertising,
representative of the Colgate Co.
is quoted as saying. The whole
problem of radio advertising is being
studied by the Association Of Ad-
vertising agencies, which already
has decided that the present
methods of radio advertising are not
agreeable or desirable to fans, and
that the inept use of radio adVer-
tising will be bad for all adver-
tising.
So far the American Telegraph
Telephone Co, through WEAF and a
chain of interconnected stations, ap-
pears to be the main channel for
radio advertising. The charges, ac-
cording to Mr.. Haase, vary from SO
a minute for talks and $3.50 half
hour for entertainment, from one
station, up to $500 an hour for
entertainment distributed through
seven stations. The advertisers, of
course, furnish all the talent. Cir
culation is part of sales talks, but
figures are naturally only estimates
These rates are not guaranteed as
fixed, but may be increased by the
telephone company, unless the Inter
state Commerce Commission should
take a hand, claiming that telephone
lines are a public utility or that con-
Meeting lines are between States.
Sentiment Is Divided.
Statements from a number of the
representative manufacturers sho"
that there is no unanimity of opinion
against paid radio advertising, put
they all believe in good broadcastlng
Lee DeForest believes that as more
concerns take up radio advertising
their programs become less interest,"
ing to the public; that advertising Is
insidious and becoming more hagrant
He looks forward to a time When the
great majority of programs VIII soe
for "thInly veiled advertising pur-
poses" 81,
The Radio Corporation does not sell
air space at it's stations; DAVID Saf-
noff sees present advertising only as
an interesting experiment. Pierre
Boucherln, it's publicity manager
nlans better programs for 1925, when
he will charge to advertising. The
corporatiOn however, has recently
co-operaLed with the brunswick
Balke Co. in broadcasting operate
and concert stars, who are attracting
great public favor. {. Brandes, the
phone manufacturer, hopes radio ad-
yertising will not continue; another
of that company says radio manufac-
turers do not advertise by broadcast
ing, fearing to establish d precedent
if they pay for it. An officer OF Dur
ham & Co. believes selling adverts-
ing space on the air is the only con-
crete plan for paying for broadcast
ing, but insists that il does not ne
cessitate poor broadcasting."
Provide Good Entertainments.
Reputable concerns now provide
very interesting entertainments, the
only publicity they derive being the
broadcasting of their names. c. u.
d manufacturer,
asserting that many broadcasters re-
port tremendous earnings, and he be-
lieves that radio broadcasting is the
most profitable form of advertising
yet developed. Others point out that,
as long as manufacturers are willing
to pay, they should do so; when they
stop other sources Cf income for
broadcasting can be found. The in
vestigator, however, believes that the
GOT fo,
advertiser, but at the same time CIV
ing advertising an opportunity to
share the black eye" with radio, IL
the public decides to strike.
Secretary Hoover is opposed to CEN
sorship, but through the radio con-
ferences it has been made known that
indirect advertising only is permit
ted via broadcasts by the Department
OF Commerce. However, Mr.. Haase
sees possible governmental interyen-
ton and ultimately a decision from
receiving set owners
Views of concerns which have tried
paid advertising are interesting. The
EVeready entertainers, considered
UNIQUE by many, actually pay the Ma
tional Carbon Co. in good will. One
day 5000 letters came in. according IN
J. X Crawford of that company. But
he does not think radio advertising.
even indirect, would pay all types of
manufacturers, except experimentally.
AS contrast, Stuart Peabody of the
Borden Milk Co. claims that two
broadcasting trials failed to bring
adequate responses. The Macv Co
failed to derive substantial benefits
from broadcasting. But Nat Lewis.
owner of two gift and haberda sberv
shops, found fashion talks via radio.
which he calls publicity" better than
some other forms Of advertising ua