Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-28
RADIO ADVERTISING
COSTS ESTIMATED
American and European
Plans for Air Programs
f.. Are Different.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, November 28.-How
much does radio broadcasting cost? In
the current issue of the magazine For
tune. it is estimated that half-houI
hook-up once week for 80 weeks costs
an advertiser $250,000.
Entertainment cost is not included in
this figure This adds from $1,000 to
$4,000 a week more. At $1,000 week
the talent would cost the advertiser
about $50, 900, or $4,000 for the So
week period, time and program.
Broadcasting Costs.
Here are a few actual costs of the
time only of some outstanding radio
advertisers for 1890: American Radi-
ator, $4,000; Armour g. Co., 10000;
General Foods, S260,000; Quaker Oats,
$268,000; General Motors. S332,00O;
and General Electric, S443,ooo.
In 1929 the total newspaper and
magazine appropriations Of these same
advertisers were: American Radiator,
STAB, 900: Armour & Co., $54l 900;
General Foods, $6,500,000; Quaker
Oats $l,450000; General Motors,
$l8,63o, 900, and General Electric, $4,-
10000.
Estimate of Audiences.
George w. Hill, tobacco magnate, esti-
mates that a good program will have
10000 900 listeners, while a poor one
will have 100000.
This estimate is based upon the
United States Department of Commerce
estimate of f3,476,600 radio sets in the
United States as of July !, 1880. If this
figure is multiplied by Al (the number
of persons per family. more than 50,-
900 hearers tune in.
Unlike broadcasting in the European
countries, all the expense of time and
programs is borne by American adver-
Users. It amounts to millions of dollars
q year.
In England, on the other hand. each
owner of radio set pays about $3.50 a
year for the program costs. The broad
casting stations are under government
control and no commercial advertising
Is allowed on the air.
Many public minded American citi-
gens favor the European plan as against
the American plan upon the theory that
the programs could be lifted to higher
plane, and much of the cheap and
trashy programs Of today could be elm
mated.
On the other hand, American broad
casting officials hold that people must
like American programs or the pro-
grams wouldn't be so popular. The off,
Gals point to the fact that there are
more radios in the United States today
than in the rest of the world combined.
And 100000 Americans can't be
wrong" says M. H Aylesworth, presi-
dent Of the National Broadcasting Co.
Factors in Trade Recovery.
George F. Rand, president of the Ma
rine Trust Co. Of Buffalo, thinks eco
nomic forces tend to act and react in
such manner as to correct major de-
vtations for the longer trend. Some of
the elements now making for business
recovery are revival in residential con-
Struction, improvement in the textile
trades, and increased bond activity in
making funds available for corporate
expansion and accelerated public con-
etruction.
Meanwhile, there is active endeavor
the world over to give leverage to con-
structive influences, to lessen the effect
OF current curtailment upon the real
wages Of labor, and to improve the gen.
eral standard of living" says Mr.. Rand.
In this direction the strong financial
position of our leading corporations, in
contrast with conditions in 1920, would
seem TO be a favorable item. More
broadly still, 1880 conditions have
stimulated reasoned consideration of
such major matters as unemployment
insurance, the longer trend of com-
modify prices. the present world credit
structure, the possibility OF more central
bank cooperation and such things.
AL these things have a favorable
cast although they do not definitely
date turn in business"
Farm Keller.
Congress will socn convene. Farm
relief once more gets the spotlight, for
farm prices have dropped badly since
last session.
Now. what do the farmers demand ?
The National Grange, among other
things. wants these:
First-Full support of the Federal
Farm Board. with no amendments to
the act at this session, but that Con-
greSs shall Immediately make available
the balance of the 100000, 900 appro-
priation, or such amounts as the Farm
Board may need.
vent foreign governments and foreign
individuals from selling short on the
Chicago Board OF Trade and prevent all
short selling except the hedging Of ac-
tual transactions in grain.
Third-The withholding of reclama-
ton or drainage projects until farm
Surpluses are removed
Fourth-The promotion of the stabin-
zation Of the purchasing power OF
money
Standardization Of the export:
debenture program as compliment to
our tariff structure.
Seventh-The Government to support
every movement for balanced produc-
ton and surplus control.
Oppose Amendment.
M. H. Thompson, president of the
y&Tm Bureau Federation, says the
Farm Bureau recognizes the need fol
strict control by some organization O.
production and sale of farm products
but has rot committed itself regarding
the enactment of the debenture and tins
equalization fee. 1t does, however. ad.
yocate the appropriation Of more ncney
Tor the Federal Farm Board.
All organized farm groups nave
agreed to oppose any move to amend
the agricultural marketing act at the
short session Of Congress They have
agreed also not to push any debenturt
or equalization fee legislation during the
short session.
(copyrisht. 1880. by the North American
Newspaper Alliance.)