A survey of the effectiveness of retail advertising via television in the Los Angeles marketing area January 1947 to December 1, 1949

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A SURVEY OP- THE EFFECTIVENESS OF RETAIL ADVERTISING VIA TELEVISION IN THE LOS ANGELES MARKETING AREA JANUARY 1914.7 TO DECEMBER 1, 19l*9

A Thesis Presented to the Faculty of the Department of Radio The University of Southern California

In Partial Fulfillment of the Requirements for the Degree Master of Arts

by Robert ()• Drake January 1950

UMI Number: EP65337

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T h is thesis, w ritte n by

...... RjD.lifir.t...Q*...Dr.ak.e............... u n d e r the g u id a n c e o f h . ijs...F a c u lt y C o m m itte e , and a p p ro ve d

by a l l

its

m e m b e rs, has been

presen ted to a n d a ccep ted by the C o u n c il on G ra d u a te S t u d y a n d R e search in p a r t i a l f u l f i l l ­ m e n t o f the re q u ire m e n ts f o r the degree o f

.................

n„ir /-Z3-3T0_______ Facultv Co,

Chairman

FOREWORD

”One picture is worth a thousand words.” Thus, Confucius, the Chinese philosopher, revealed to the world the basic factor which makes television the great­ est advertising medium ever devised.

Richard W. Hubbell

expresses television this way, ,fIt is staggering to contem­ plate because it provides 'the greatest avenue for reaching other men's minds since the beginning of time.*11^ If Confucius's and Hubbell's statements are true, how has the local retail advertiser in Los Angeles fared after using this new advertising medium? expectations of its partisans? benefactors here in Los Angeles?

Has it lived up to the

How well has it served its What is it that the tele­

vision industry has to offer the potential advertiser in the way of facilities and equipment here in Los Angeles?

As yet,

no one has produced the answer to these inquiries. There are those who have had some success with this newly discovered advertising medium; there are also those who have failed to obtain the desired results.

Not all retail

organizations have been given the opportunity to express them­ selves as to their television advertising experiences.

i Richard W. Hubbell, kOOQ Years of Television. (New York: G. P. Putnam's Sons, 194-2 )> p.2l8 .

This study was designed for the purpose of getting local retail organizations to relate their experiences with this revolutionary medium of communications.

It will en­

deavor to describe the television facilities that are now available in Los Angeles. The writer wishes to record his appreciation and thanks to those who have aided in the securing of materials and information which have contributed substantially to this thesis.

Without their assistance the study would not have

been possible: To television stations KTTV, KNBH, KFI-TV, KECA-TV, KLAC-TV, KTLA, and KTSL(w6XA0) for their cooperation and

assistance in supplying pertinent information when needed; Particular thanks to Robert J. MeAndrews, Managing Director of the Southern California Broadcasters Association, Inc., for his valuable counsel and guidance all through this study and his able assistance in making possible the survey; To Ralph Tuehman, Broadcasting Magazine, for his aid in the securing of valuable data; To Don Belding, Chairman of Board of Directors, and Arnold McGuire, Television Director of Foot, Cone and Belding for their timely advice and suggestions; To John Hanson and Marion Russell, American Broad­ casting Company; Kevin Sweeney, Sales Manager, and Mrs. Elma

V

DiMiere, Television Station KFI-TV; To Harry Maynard, Sales Manager, and Stanley Chambers, Television Station KTLA; Miss Ruth Groendyke, Television Station KTTV; Henry Maas and Miss Betty Frazier, National Broad­ casting Company; Robert Stock and Jim Parsons, Television Station w 6x a o

(k t s l ); Misses Jean Bradfield, Isabella DeGray and Marilyn

Hoffman of Television Station KLAC-TV for their interest and cooperation in and above their work; To Harry Witt, General Manager of Television Station KTTV; To Richard L. Bean, Secretary of the Los Angeles Chamber of Commerce Television Committee, and Roy S. Kellogg, Managing Director of the Advertising Club of Los Angeles for their helpful suggestions and assistance in the conduct of the survey.

TABLE OP CONTENTS CHAPTER I.

PAGE

THE PROBLEM AND DEFINITION OP TERMS USED-. . . . The Problem/

1

........ '........................ 1

Statement of the problem

................

Importance of the study.

2

...........

3

Definition of terms used

Ij.

Effectiveness. . . ........................

I4.

Retail Advertising .......................

5

Television ...............................

5

Los Angeles marketing a r e a .........

£

Scope of the s t u d y ...............

6

Methods of procedure . . .

..................

7

Limitations of the s t u d y ....................

8

Sources of data and information. . . . . . . . Organization of the remainder of the thesis. II.

REVIEW OP THE LITERATURE . . . Review of the literature

10 * 10

................ 12 ................ 12

Periodicals...........................

12

Government publications. ..................

13

Books........................................ 1I4. III.

HISTORY OF TELEVISION IN THE LOS ANGELES MARKETING A R E A ..........................................18 History of television in the Los Angeles marketing area

...........

18

vii

CHAPTER

PAGE Television station

W6XA0 (KTSL)..............2i|.

Television station

KTLA.

Television station

KPI-TV.................... 27

Television station

KLAC...................... 29

Television station

KTTV.

Television station

KNBH.........

35

Television station

KECA-TV . ..............

37

...

...

............

............

The Los Angeles television market area

IV.

. . . .

25

31

39

Marketing a r e a ............

39

Television receiver sets data.. . . . . . .

lj.1

MATERIALS AND METHODS USED IN MAKING TELEVISION ADVERTISING S U R V E Y ................. .......... Materials used in making television advertising s u r v e y ............ Survey data form

I±6 .............. , . . i ^ 6

Questionnaire form ................

V.

VI.

. . . . . 50

Retail Organizations studied .................

50

Method used for the survey

52 .

THE SURVEY R E S U L T S .......... ’ ................... 5 5 The survey data form results

................ 55

The questionnaire results. .

................ 65

SUMMARY AND CONCLUSIONS................ ... R ecapitulation............................70

70

viii

CHAPTER

FORM Tli© p r o b l e m ................................ 70 Sources ofinformation and data. . . . . . .

70

Methods of procedure ........................

70

Summary of the results................... . . 71 Summary of the survey data form results.

.. 71

Summary of the questionnaire results • •

•• 72

Conclusions. . . .

. . . . . . .

73

GLOSSARY..............................................77 BIBLIOGRAPHY..........................................80 APPENDIX.............................................. 8I4. Appendix A . Letter of introduction no. 1.

.• 85

Appendix B . Letter of introduction no. 2.

.. 86

Appendix C • Letter of introduction no. 3.

.• 87

ix

LIST OF TABLES TABLES

I. II. III.

PAGE W6XA0 (KT5L) Television Station Data. . . . . .

26

KTLATelevision

28

Station Data.............

KFI-TV Television Station Data.............

.

30

IV. KLAC-TV Television Station D a t a .................32 V. VI.

KTTVTelevision KNBH

Station Data.................... 3^

TelevisionStation

Data................ 36

VII. KECA-TV Television Station D a t a .............

38

VIII. The Seven Los Angeles Television Stations Facilities -- Shown Comparatively ..........

1^0

IX. Los Angeles Area Monthly Summary of Television Receiver Set Installations.................

lj.2

X. Rohrabaugh!s Report on Television Advertisers. Number of Local Advertisers in the Los Angeles Marke t..................................... Ifj? XI. Result of

Question 1............................ 66

XII. Result of

Question 2............................ 67

XIII. Result of

Question 3............................ &9

X

LIST OF FIGURES FIGURE I*

, Sales View of the Primary Area of the Los Angeles—

II.

Southern California Market. . . . .

Areas •• • • •

21

Television Receiver Set Sales In the Los Angeles Area; January 1947 to December

IV.

88

KECA-TV, Los Angeles, California; Channel No. 7> Primary and Secondary Coverage

III.

PAGE

1, 1949 • • • •

89

Number of Local Advertisers Using Television in the Los Angeles Area; January 1947 to November

19^9.................................... 90

xi

LIST OP OTHER ILLUSTRATIONS ILLUSTRATIONS

PAGE

Survey Data Form. .' . . . . . \ . . . . . ... Survey Data Form Questionnaire

. if.7

S u p p l e m e n t .................. ip8 ........................

Facsimile of Letter Forwarded to Respondents.

$1

. 53

CHAPTER I

I.

THE PROBLEM

Since the close of World War II, there has been no other art or industry that has grown as rapidly, or captured the imagination of the American people as much as television. Its growth has been phenomenal.

J. B. Poppele, President of

the Television Broadcasting Association, Inc., substantiates this view in a recent article, History will record 19^j-9 as t*1® y©a** of the beginning of the fpay-off! in television. Forecasters, whose pre­ dictions for the new medium attained stratospheric heights two years ago, found to their immense satisfac­ tion that television is exceeding their hopes by astronomical millions.* The combination of sight and sound offers to the world all the attractive features of the newspaper, magazine, motion pictures, and sound radio.

The television of today or yes­

terday will not be the same as that of tomorrow, for it is far from being perfect and it is ever changing.

Its

potential when perfected will be tremendous. Raymond P. Cosgrove, President of Radio Manufacturers Association, ably presents the television picture with his statement "Television has grown faster than any other major

^ J. B. Poppele, "Pay-Off" at Hand for Video, Popp­ ele ^ o a b ^ a s t i n ^ 37*26,-December 27, 19^9«

2. industry ever to appear on the American horizon.11^ There is continuous research going on in the tele­ vision laboratory by the scientist and the engineer, looking for new refinements in equipment and materials.

However,

hardly any research has been done for the benefit of commercial interests.

How television has served the adver­

tiser is not known factually; only by conjecture, therefore, such a study seems to be in order.

Statement of the Problem.

It was the purpose of this

study (1) to locate the retail organizations in the Los Angeles Marketing Area who have used television for adver­ tising purposes from January 19^1-7 to June 30, 19^-95 (2) to determine, by a survey, how effective these retail organi­ zations have been in their use of television for advertising purposes; (3 ) to ascertain if the retailer considered his advertising via television a success or a failure; (Ij.) to learn whether or not the retailer plans to continue tele­ vision advertising; (5 ) to determine the retailer*s evaluation - generally - of television as an advertising medium; (6 ) to study the growth and development of television in the Los Angeles area.

Raymond P. Oosgrove, Televisions Growth, Telecast Ing Broadcasting, 35 223, December 6 , 19^8*

3 Importance of the study.

Klaus Landberg, a pioneer

in television research, expressed the opinions.of many by writing, television is nothing that is coming, itfs

h e r e . f,3

Television is here and as the number of receiving sets in the Los Angeles area increases, the advertiser will more intensely investigate the possibilities offered by this new medium of advertising.

Dr. Peter Langhoff, director of

research, Young and Rubicam Advertising Agency, stated in a recent speech; For radio and television entertainment the American public expects the advertiser to pick up the check. In radio the advertiser fights for the privilege. Will he in television? That depends on whether or not he is convinced or has a reasonably strong belief that tele­ vision produces results commensurate with its cost. First factor in determining value of the television medium is the number and distribution of sets.HThe inherent qualities of television as an advertising medium border the realm of being a sales medium.

Frank

Stanton, Columbia Broadcasting System Board Chairman, has this to say, !,It is thus more than merely an advertising medium —

it is a selling medium, making it easier for the

customer to shop than ever before.11^ 3 Klaus Landberg, Broadcasting,

January 26,19i|-8.

^ Dr. Peter Langhoff, IjA's Acclaim TV, Broadcasting, 3^:15, April 12, 19^8. ^ Frank Stanton nTV Won't Kill A.M.tf Broadcasting, 36:11, March 1I4., 19^-9*

Television has the visual impact of the magazine and newspapers, the audible persuasion and personal immediacy of the radio, and the ability to demonstrate any product or service.

With a great volume of goods to move in the

shortest possible time, the advertiser -will -want to know just how he can utilize the potential of this new medium. With only the sales talk of the television station salesman ringing in his ear, and the encouragement and pressure from the.advertising agency executive, the prospective advertiser definitely needs accurate facts based on actual experiences of other advertisers, before investing his advertising dollars• Inasmuch as commercial television in Los Angeles is less than two years old, there has been no extensive study made of television as an advertising medium, and since the local retailer has been the largest investor in television advertising time, this study will serve as a guide, part­ icularly for that future televiser and his advertising budget. II.

DEFINITION-OF TERMS USED

Effectiveness. For purposes of this study effective­ ness means the result, in terms of sales increase, mail inquiries, store prestige, and any other results obtained

5 by

the retail store from the use of television for adver­

tising purposes. Retail advertising.

Kleppner defines retail or local

advertising as referring to that advertising by a merchant or a dealer designed to influence the consumer to buy products at that particular merchants or dealer*s store.^ The two broad classifications of retail advertising are: (1) institutional, (2) promotional. Institutional retail copy (advertising) is designed to build the re­ putation of the store as a whole. The promotional copy (advertising) is designed to sell specific merchandise - not merely to popularize the s t o r e . 7 Television.

The term television as used throughout

this study follows the definition of Lohr who defines tele­ vision as follows: Television is the instantaneous transmission of moving images containing sufficient detail for enter­ tainment or for informative purposes, the whole being accomplished by electronic means. The simultaneous transmission of sight impressions with the associated sound impressions constitutes true communications in its broadest sense, for sight and hearing together constitute the most fundamental avenue of communication to the human mind. Los Angeles Marketing Area.

The Los Angeles market­

ing area as referred to in this study is that area including

L

Otto Kleppner, Advertising Procedure, (New York; Prentiee-Hall, Inc., 19)4.6 ), p .1^. 7 Ibid., p. 95 -9 ^* ® Lenox R. Lohr, Television Broadcasting, (New York; McGraw-Hill Book Company, Inc., 19^-9)» P • •

6

all of Los Angeles County and Orange County, and that section of San Bernardino County directly east of Euclid Avenue which avenue separates the cities of Upland and Ontario. (See Figure I in appendix for map of area).9 III.

SCOPE OF THE STUDY

Due to the continuous and rapid changes in television certain portions of this study will become obsolete in a short time.

Such a study is of value, however, because

there are no accurate figures or concrete facts available, under one cover, that tell the story of the retail organi­ zations who have experimented with television for advertis­ ing purposes.

Prior to this thesis, no such study was

found attempted anywhere in the United States.

It would

appear that those associated with television in a commercial way have been too busy selling advertising time, or testing and preparing commercial programs to produce any research. It was felt that this is only the beginning of commercial research activities and that this study will serve as a guidebook from which others may benefit. The writer was mainly interested in relating the story of retailers in the Los Angeles marketing area, who

9 Courtesy of Business Research Department of the Los Angeles Examiner, 1914-9*

7 have used television for advertising purposes.

The period

covered is that beginning with the first commercial program as telecast by a local station in January 19^7 through December 1, 19^9* IV.

METHODS OP PROCEDURE

In making this study, the author decided to use the questionnaire technique for securing the pertinent informa­ tion and data.

In order to obtain the fullest cooperation

from the retail advertisers it was deemed advisable to employ a combination of the three methods of research - mail ques­ tionnaire, personal interview, and the telephone call.

The

mail questionnaire was the first of the techniques used.

A

letter explaining the purposes of the study and reasons for the need of having the retailer*s cooperation accompanied the mailing.

The advantages of the mail questionnaire were

that it eliminated any possible interviewer bias, and was economical in time and money to operate.

The disadvantage

was the lack of assurance that the recipient would reply, therefore, to correct this deficiency as it appeared, the personal interview technique was to be employed.

Because

the author was able to control the scope of the questions and answers, this technique was considered superior to the mail questionnaire.

The limitation of the personal inter­

8

view was in the author^ failure to gain an audience with the respondent. was employed.

As a last resort the telephone call method Although the interview was completed with

this technique, the questions asked were limited in number and length, making this method none too. fruitful. The survey data form was designed to record only statistical data, and the aim of the questionnaire was to secure the retail advertisers opinion of television after having used it.

The survey data form was formulated to

record objective quantitative information.

The television

questionnaire was designed to obtain the subjective qualatative answers.

Each method would supplement the other

and serve as a check on the validity of respondents1 data and information. V.

LIMITATIONS OF THE STUDY

Inasmuch as television research on advertising is lacking in Los Angeles, this study did, of necessity, use the data and information obtained in the survey which was conducted by the author.

This study was concerned with

television advertising only.

No attempt was made to discuss

production, programming, engineering, personnel, costs, or other aspects of the industry. The sphere of the study was the Los Angeles marketing

9 area, the boundaries of which are described in the definition of terms used on pages 5 anc* 6 * The period of time covered was January 19^79 when the first commercial television announcement in Los Angeles was made, to December 1, 19^4-9» inclusive. Only those retail organizations of the Los Angeles area whose names and addresses were furnished by the local television stations and who responded to the survey are discussed.

They were recorded in the study by number.

Personnel who were quoted frequently are referred to by their organization titles. Owing to the turbulent and continuous fluctuation in the entire television industry it was impossible to arrive at a conclusion that will be applicable for all time. New stations are being licensed every day; new rates are becoming effective constantly; new techniques in producing television shows are initiated; new personnel are being introduced to the industry; new program schedules are never stable.

A Grey Advertising Agency executive writes, It seems to be easier to work out an income tax statement than to determine even such a simple schedule as the cost of one-minute spots on video stations. Rates change frequently. New stations pop-up almost overnight.™

Pall Outlook, Broadcasting, 3 ^ - 2 » April 19, 19^-8•

10

VI.

SOURCES OP DATA AND INFORMATION

Information and data used for this study were obtained fromthe following sources:

(1 ) trade papers and magazines

of the radio and television industry; (2 ) publications that have been written which include some discussion of commercial television; (3) the television stations located in the Los Angeles area; and personnel who are employed by such stations; (1^.) advertising agencies that are managing and producing television broadcasts; (5 ) research organizations that have made surveys pertaining to the television advertisers; and (6 ) retail establishments in the Los Angeles area that have used television for advertising purposes. For purposes of this study it is considered valid to use the information and data obtained by the author. Source of the information and data was the research survey that was conducted with the retail advertisers of the Los Angeles marketing area. VII.

ORGANIZATION OF THE REMAINDER OF THE THESIS

Chapter II briefly reviews literature that has been published relating to television and how It affects this study. Chapter III traces the 'growth and development of television as related to stations and networks, receiver

11 set sales, and advertising in the Los Angeles Area. Chapter IV is a discussion of the material used in the survey (the group surveyed and studied.) Chapter V describes the results secured by the survey data form and questionnaire. Chapter VI contains the summary and conclusions. The glossary catalogs the television terminology used in this study.

This glossary is useful to those who

are not familiar with television and desire an explanation of terms used. The Bibliography is rather brief because the material available pertaining to the study was limited. The Appendix contains certain charts and tables which will make it easier for one to better understand the study, but not of such a nature to be included in the main body of the thesis.

CHAPTER II

REVIEW OP THE LITERATURE Sine© television broadcasting is a newcomer to the communications industry and has had its greatest growth during the post-war period, there is little published material which examines the commercial status of television. Most publications have been authored by television engineers and technicians.

The approach used by these individuals in

their writings is of the technical and engineering phases of television.

Usually one, and occasionally two chapters,

are all that are devoted to commercial television. There are several weekly and monthly magazines which strive to keep the public informed of the news and progress of television.

Practically all departments of television

stations are discussed by these magazines. Rarely was the writer able to locate any material that pertained to retail television advertising that could be used as a valid reference. .Periodicals.

Broadcasting^- magazine was used ex­

tensively by the author for references.

In the radio and

Broadcasting, (Washington, B.C.; Broadcasting Publications, Inc.,)

13 television industry its authenticity and comprehensiveness in publishing current television news has caused it to be often referred to as ftThe Bible of the Industry.”

Facts

pertaining to the Los Angeles television market, articles and addresses of television and business executives, and other pertinent data were found in Broadcasting;:. Government publications.

Realizing the increasingly

significant role that television was to play in the economy of this country, The Department of Commerce, Washington, D. C., had prepared and published August 19^-9 & pamphlet entitled Television as an Advertising Medium.

o

The pam­

phlet has greatly stimulated the thinking of many adver­ tisers and television personnel to re-examine the poten­ tialities offered by television advertising.

The television

industry has enthusiastically received the publication of this treatise.

The study examines the many facets of the

television industry, including the number of stations presently operating; television sets in operation, and the marketing areas using television.

Pertinent data pertaining

to the Los Angeles market and television stations was help­ ful in the preparation of this study.

2

Phillip A. Bennett, Television as an Advertising Medium. (Washington, D.C.; U. S. Department of Commerce, August 194.9 ) 31 pp.

34 Books.

Dr. Lee De Forest, a pioneer television

engineer and inventor, has written a book, Televisi on Today and

Tomorrow,3

that contains considerable information that

should not be overlooked.

Although published in 19^-2, the

book has considerable to contribute in the way of basic television engineering and technical knowledge.

The pub­

lication is written in the laymanfs language and is easily readable and understandable.

De Forest’s book is valuable

for the television engineering student for the contents are written especially for that individual.

Commercial

television is briefly discussed, but only in a visionary and fanciful manner. Another book, similar to Dr. De Forest’s, is Television The Eyes of Tomorrow.^

William C. Eddy is the

author.

Eddy is an engineer by profession and has contributed much to the technical growth of television.

The book attempts

to discuss the entire field of television - department- by­ department.

There are two excellent chapters devoted to a

discussion of the commercial aspects of television.

Accord­

ing to Eddy, commercial television is television advertising

3

Lee De Forest, Television Today and Tomorrow, (New York: The.Dial Press, 19ij-£) 3bl pp. ^ William C. Eddy, Television, (New York: Prentice-Hall, Inc.,

The Eyes of Tomorrow. 319 pp.

15

and is the life-blood of the industry*

The role that the

advertiser has in the development of television is very ably depicted*

Apparently Eddy has had experience in ad­

vertising, for his writing reflects a background of ad­ vertising knowledge that extends far beyond the average television engiheerfs concept.

Listener psychology and

the limitations of television commercials are analyzed for the potential advertiser.

The section devoted to commercial

television closes with considerable advice for the future use of television. Broadcast Advertising - Television Edition^ was written by Prank Arnold.

This book is devoted to the

chronological development of television, rather than to advertising, as implied in the title.

The publication was

published in 1933> and to Arnold television advertising was just in the offing.

Very little space is devoted to

advertis ing.

L

We Present Television0 provides many excellent articles on the various facets of television*

John Porter­

field and Kay Reynolds edited and published the book in 19^0.

^ Prank Arnold, Broadcast Advertising - Television Edition. (New York: J. Wiley and Sons, 1933) 28ij. pp. 6 John Porterfield and Kay Reynolds, Editors, We Pre­ sent Television (New York: W.W.Norton and Company, 1940T^8£ PP*

16

The book is a collection of articles, written by television executives, on the various functions in each department of a television station*

A commentary on programming was pre­

sented by an experienced program directory acting was dis­ cussed by an experienced television actor, and other articles were penned in the same manner*

The financial and

commercial use of television discussions are authored by experienced television business executives who direct the commercial functions of stations and networks*

Although

the articles were written prior to World War II, the material is still timely and pertinent to today*s television problems* Lenox R* Lohr*s book, Television Broadcasting? is similar in scope and aim as the other reviewed publications* Lohr relates the story of television and has as the theme the historical background of the industry.

The author very

briefly discusses programming, production, network and in­ dependent station operation*

The author explains a few of

the economic factors of television but that which is written by Lohr is repetitious* It was found in surveying authoritative books pertin­ ent to the author’s study, that little, if any, valuable

7

Lenox R. Lohr, Television Broadcasting* (New York; McGraw-Eill Book Company, Inc., 19if0) £ 714. pp.

17

data was relative or useful.

This was because these writ­

ings were predominantly technical in nature.

They all

voiced the opinion that television possesses great poten­ tialities, both for the listener and the advertiser.

Ho

experimental data was found to support these opinions. Broadcasting magazine provided the most helpful and useful material relative to this study.

CHAPTER III

HISTORY OP TELEVISION IN THE LOS ANGELES MARKETING AREA In order to understand the full significance and influence of television broadcasting in a specified area, it becomes necessary that some background be given on the growth and development of the medium in that area. Los Angeles is not like any other city in its con­ tribution to television.

Mr. Harry R. Lubcke has this to

say: With its pioneering work in both technical and program research, its efforts to make ever larger groups of people television-conscious.... the West Coast takes its place as a focus of American Tele­ vision activities.l All retail advertisers in this marketing area desire a knowledge of the possibilities and opportunities that are offered by television.

Budgeted money that is appropriated

for television advertising purposes must be used wisely. With all its great potentiality for merchandising and promotional functions in the ever growing and expanding Southern California, just what television facilities are available in Los Angeles for the advertiser? Kaemffert summarizes the attitude of many in his

^ Harry R. Lubcke, Television on the West Coast. We Present Television, p.2lpL.

19

statement f,The future of the television lies largely with the advertiser•

Donald Thornburgh specifically refers

to the local advertiser, when he stated !lIt may be stated that the future of television in the .Los Angeles area lies largely with the local retail advertiser. Today there are seven television stations in Los Angeles that have been licensed to operate commercially by the Federal Communications Commission.

Only one of these

stations (W6XA0) is now operating with a temporary commercial license and It is expected that it will have its permanent commercial grant soon. Another factor that is all important to the adver­ tiser when considering the respective merits of the avail­ able facilities of each station is that all but one of the transmitters are located atop Mt. Wilson; a fifty-sevenhundred-foot mountain that is immediately north of Pasadena, California. For several years W6XA0 has been transmitting from atop Mt. Lee, a 2200 foot mountain located in the Hollywood Hills.

W6XA0 recently completed the construction of a

2

Introduction - Waldemar Kaempffert,We Present Television, p*31 o

Donald Thornburgh, Broadcasting. 35:26, December 27, 19^ 8 .

20

transmitter adjacent to the other six on Mt. Wilson, and is awaiting its permanent commercial license from Federal Com­ munications Commission before moving.

Mt. Wilson invest­

ments in transmission sites and equipment by the seven authorized Los Angeles area stations are approximately $2,700,000.^*

To broadcasting this investment means;

.....there is virtually no difference in technical facilities coupled with the fact that all seven Los Angeles stations will have their transmitters beaming from Mt. Wilson.5 There is approximately fifty miles coverage area for a television station.

Lohr states that rta television

station1s range for consistent reception of high quality images extends

over a radius of 25 miles and under certain

conditions, to

as much as 50or more miles.f!

Through the courtesy of Mr. John Hanson, American Broadcasting Company research executive, Figure II page

the map shown in

21, indicates the primary and secondary

coverage area of television station KBCA-TV.

The area

enclosed by the 5000 UV/M circle is considered the primary zone and the area enclosed by the 500 UV/M circle and

^ Ralph Tuchman, Los Angeles fs f,Mt. Millions11 Broad­ casting. ,35; 26; December 27, igt|_3* ^ Los Angeles, Broadcasting 35:10, September 6, I9I4-8 . ^ Lenox R. Lohr, Television Broadcasting (New York, McGraw-Hill Book Co., Inc., I9I4.O) •

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RIVERSIDE CO.

, a restaurant, was a business which catered to a selected clientele.

Pive-minute programs

were used to advertise prepared dinners that were priced at two-dollars-and-half and upward.

Since the inauguration of

63 the telecasts the restaurant business has increased ap­ proximately £0 per cent. Store No, l6 was retail amnufacturer of breakfast nooks*

Several five-minute programs were utilized for

displaying the completed product. nor quoted.

The price was not shown

The results indicated apprbximately six tele­

phone inquiries per program and some subsequent sales.

The

advertiser stated the results were not satisfactory, part­ icularly in relation to the money expended for advertising. Store No* 17 was a men’s retail shoe store.

Tele­

vision was used for advertising on only one occasion.

The

anticipated increase in sales were not forthcoming, there­ fore television advertising programs were discontinued. Store Mo. 18 was a retail men and womenfs store. Ten fifteen-minute programs were used to advertise men and women’s clothing.

Their television advertising experiments

were unsatisfactory.

The show, including time and production

costs amounted to $500.00 a week.

Never at any time did

the telecasts pay off in actual merchandise sales at a rate equal to the business they could have obtained by spending that same amount of money in newspaper advertising. Store No. 19 was an automobile sales agency.

A

sporting event was sponsored By this account for a period of three weeks.

During the telecasts, a special sale of

automobile seat covers was offered to the television audience.

The price' was marked down from twenty dollars to

§13.00 for the occasion.

Only seven sets were sold that

were a direct result of television.

Cost of maintaining

the program was too expensive, therefore they cancelled the sponsorship of the sporting event. Store No. 20 was a retail florist shop.

One-minute,

five-minute, and fifteen-minute programs were sponsored by this store.

Flowers were advertised on all programs.

Oc­

casionally, special sale prices were given for the flowers in the hope that there would be a favorable sales response. Very few inquiries or sales resulted from the advertising. In the opinion of the management the results did not justify the advertising expense. Store No. 21 was an organization that produced and distributed fresh dairy products.

One-minute, two-minute,

and a fifteen-minute programs were utilized in this organ­ izations television sponsorship for a period of one year. All the dairy products, except ice cream, were advertised on at least one of the programs.

The products were usually

demonstrated and a free recipe booklet was given to those

65

writing to the store requesting one.

There were thirty-

to-fifty requests for the booklet per telecast but no sales increase was noted. The Questionnaire Results.

The television question­

naire that was mailed to the retail advertisers was develop­ ed to incorporate three questions which were formulated for the purpose of establishing the general opinions and trends of thinking prevalent on the subject of television as an advertising medium. The replies received are tabulated below: Question 1 -- In an overall evaluation of your television advertising experiences, does your store feel that it has been a successful venture? A n s w e r ------ Yes

9

No

10

Did not answer

2

See Table XI page 66 which presents this question and answer in tabular form. Question 2 —

Do your plans include continuing this

type of advertising? A n s w e r ------ Yes

1ij.

No

5

Did not know

2

66

TABLE XI RESULT OP QUESTION 1

In an overall evaluation of your television adver­ tising experiences, does your store Teel that it has been a successful venture?

ANSWERS Yes

9

No Did not

10 Answer

2

67 TABLE XII RESULT OP QUESTION 2

Do you plan on continuing this type of advertising?

ANSWERS Yes

1If

No

5

Did not Know

2

68 See Table XII page 67 which, presents this data in tabular form. Question 3 -- In your opinion what is the future of television as an advertising medium for retail stores? A n s w e r ----- “Good^or “Excellent1*

llj.

Not Good

2

No Comment

5

See Table XIII page 69 which presents this data in tabular form. Those replying favorably to television advertising gave the following reasons for their attitude: (1) Tele­ vision will supersede other advertising media if given interesting program material and capable personnel. (2) Television will be the number one medium because it combines sight and sound.

(3) Television closely approx­

imates person-to-person “selling.1* Those replying negatively to television advertising gave the following reasons for their attitude: (1) Tele­ vision will not influence the audience to go to stores located in outlying communities.

(2) Color television

will attract more retail advertisers. advertising is too costly.

(3) Television

(JLp) Difficulty was encountered

in purchasing desirable telecasting time and day.

(£) It

was difficult to demonstrate an item of merchandise in a one-minute program.

(6 ) Television audience not large.

69 TABLE XIII RESULT OF QUESTION 3

In your opinion, what is the future of television as an advertising medium for retail stores?

ANSWERS "Good" or "Excellent11

llj.

Not Good

2

No Comment

5

CHAPTER VI

SUMMARY AND CONCLUSIONS The first section of this chapter has for its be­ ginning a brief restatement of the problem, the second section provides a summary of the results, and the third section states the conclusions. I. The problem.

RECAPITULATION

The problem of this study was to

ascertain how effective television advertising in the Los Angeles marketing area has been for the retail organization who Invested their advertising money in this new medium. Sources of information and data.

The information and

data which provides the basis for the statements of results and conclusions of this study were obtained from (1 ) the survey that was conducted with the retail advertisers of the Los Angeles marketing area #10 had used television for ad­ vertising purposes and their advertising agencies, begin­ ning with the first commercial television program on January 1st, 19 ^7 , and ending June 30, 19^9Methods of procedure.

The author of this study ob­

tained the names and addresses of the retail organizations,

71

who had used television for advertising purposes, from the Los Angeles television stations*

After the survey data and

questionnaire had been formulated and prepared, the materials were mailed to the recipient.accompanied by a letter which explained the purpose of the study and requested cooperation in providing the desired information.

A self-addressed,

stamped envelope was included to be used by the respondent in returning the accomplished forms and questionnaires.

Those

not responding by mail after two weeks were personally con­ tacted, and the desired information and data was obtained in most cases.

The telephone interview was resorted to only

when a personal call was not successful. II.

SUMMARY OP THE RESULTS

Summary of the Survey Data Form Results. 1.

There was very little agreement as to the re­

sults that were obtained.

Out of a total of 2l± returned

questionnaire and data sheets, five of the respondents stated they had secured a definite sales increase; eight respondents had not received any results; five of the retail advertisers indicated they had obtained a few sales, but the increase did not re-pay them for the expense of the advertising; three were unable to measure the results,

72

because other media advertising were used in conjunction with television; and three did not attempt to record any results• 2.

Restaurants received a decided increase of new

business after each telecast. 3*

Unless a free gift was offered for each letter

received, a letter response from the television audience was difficult to obtain. 1;.*

Institutional advertising did not obtain meas­

urable results. television advertising was discontinued by several retailers because there were no direct results obtained from previous efforts. 6.

Merchandise that was marked-down in price and

merchandise that was novel and new to the customer, obtained the greatest sales response. 7.

Retail food markets received favorable comment

from customers, and, occasionally, had calls for merchandise that they had advertised as an ”outstltnding buy.” 8.

Vsfrien inexpensive merchandise w.as advertised, the

volume of sales did not in most cases reimburse the adver­ tiser for the expense of the program. Summary of the questionnaire results.

73

1*

Opinion was evenly divided as to the success

of television advertising that had been experienced.

Nine

advertisers indicated they were successful, whereas ten considered themselves unsuccessful. 2.

A large majority of the retail advertisers in­

dicated they were contemplating the use of television for future advertising and promotional work. 3*

The future of television as an advertising

medium for the retail store seems excellent.

This was the

opinion of the vast majority of the respondents. III.

CONCLUSIONS

The results of this study seem to justify the fol­ lowing conclusions: 1.

The effectiveness of television advertising that

has been done by retail stores in the Los Angeles marketing area up to December 1, 19^9» 3-3 currently undecided. 2.

The television audience must be larger than it

is at the present time, before most retailers can profitably use the medium for their promotional activities. 3.

To obtain an audience response, the advertiser

must make his commercial message both interesting and enter­ taining. Ij.. When color television becomes a reality, there is

714. evidence that more retail stores will use the medium for their advertising. 5.

New and novel merchandise receives a greater

sales response than the ordinary goods. 6.

The cost for television time and television

production is rapidly increasing.

This is causing retail

organizations to discontinue television advertising. 7.

Prices should be quoted on all advertised

merchandise. 8.

In demonstrating an item of merchandise, con­

centrate on the major selling-points and leave out the minor details. The one-minute commercial is not sufficient^ time for demonstrating an item of merchandise. 10. The results of institutional advertising are too difficult to measure. 11. For the retail advertiser the best time for tele­ casting the sales message is seven-thirty to eight-thirty in the evening. 12.. Television advertising will not bring customers to a store if any of the following detrimental factors exist:

(1 ) inadequate parking facilities; (2 ) poor location

in relation to transportation; (3 ) not located in a shopping

75 center; {Ij.) and location on a street that has little or no automobile or pedestrian traffic, 13* To obtain a letter-inquiry response a free gift must be given to a respondent, lij.. An item of merchandise must be properly demon­ strated if sales are to be expected, 15* To be most effective, television advertising must be continued for a period of time, rather than just one or two telecasts, 16*

Items of merchandise that have been reduced in

price, or on sale, have a greater appeal to a television audience. 17* The retailer must employ only qualified and ex­ perienced personnel for the best television results. 18. Television has a great future for the retail ad­ vertiser if the cost is not too exorbitant and the tele­ vision audience continued to increase in size. In view of all the evidence presented it appears that the problem of this study **How effective has Retail Advertising been via Television in the Los Angeles Market­ ing Area1* is still undecided. will

In the section for conclusions

be found answers to many of the questions propounded

in this study. It seems this study could be most profitably used a*

76 as a frame of reference for future investigation in the realm of television advertising.

Obviously, further re­

search will clarify many of the problems that were ad­ vanced in this thesis.

Perhaps Eddy gives a clue to the

future importance of retail advertising via television when he says: Department stores, clothiers, and hundreds of other merchandising houses who have found it impractical to use words to describe their materials on the air will find in television a new and satisfactory sales window. No greater field of advertising has ever been made available to the merchant, and it .can be expected that he will naturally review and revise his advertising" expenditures in the light of this new and dynamic outlet.-*It becomes evident that television has taken its rightful place as the newest addition to the field of communication.

What future there is for this new medium as

an advertising medium depends on how it is used to present the commercial message and how well, it is received by the television audience.

It would appear that in many of the

case histories revealed by this study, that many of the sales messages, carried via television have not been well received by the television audience and the advertiser must find out how Confucius intended his statement "One picture is worth a thousand words," to be interpreted.

■Sllfilliam C. Eddy, Television. The Eyes of Tomorrow, (New York: Prentice-Hall, Inc., I 9 IJ.5 ) p.233*

GLOSSARY

TELEVISION GLOSSARY* This glossary will enable the reader to better understand the television terminology used in this study and in the television industry. Antenna

............ An aerial or a mast or tower with a system of wires or metal flanges for transmitting or receiving electromagnetic waves which are called radio frequencies.

Channel.................. The band or channel in the radio spectrum assigned to a television station or other forms of communication. Circulation ..............

Frequency

Potential audience in terms of families owning receivers; one family, regardless of the number of sets it owns, equals one unit in circulation.

.............. The number of vibrations set in motion per second. Every sound has its own frequency*

Kw........................

Kilowatt —

Me.................. .

Megacycle, one million cycles per second.

Monitor Picture One.

one thousand watts.

............ A control kinescope or action on a kinescope. ..........

to check

The image telecast.

-x- SOURCE: Glenn N. Gardiner, Television Workbook 19^9 pp. 86 .

79

Signal...................... There are two signals involved in transmitting a television program -- the picture or video signal and the sound or audip signal Telecast........ ...........A television broadcast, A broadcast of sight and sound. Televiewer.................. A member of the television audience. V i d e o ...................... The television image or the sight in television broad­ casting.

BIBLIOGRAPHY

BIBLIOGRAPHY A*

BOOKS

Arnold, F. A Broadcasting Advertising, Television Bdition, New Yorkr John Wiley and Sons, Inc., 1933• 284 pp. DeForest, Lee, Television Today and Tomorrow. Dial Press, 19^2. 361 pp.

New York: The

Eddy, William G., Television the Eyes of Tomorrow. Prentice-Hall, Ipc., 1945* 319 PP* Hubbell, Richard W., liOQQ Years of Television. G.P.Putnam’s Sons, 194-2. 265~pp. Kleppner, Otto, Advertising Procedure. Hall, Inc., 194.6 . 64.I pp.

New York

New York:

New York: Prentice-

Lohr, Lenox R., Television Broadcasting. New York: McGrawHill Book Company, Inc."^ 194-0. 274 PP* Porterfield, John and Kay Reynolds, We Present Television. New York: W. W. Norton and Company, T 94 O. 265 pp. B.

PERIODICAL' ARTICLES

Broadcasting, Telecasting Telestatus Monthly Reports, Washington, D.C.: Broadcasting Publications, Inc., _____________ , 35:2 July 12, 1948 _____________, 35:7 August 1 6 , 1948 ______________ , 35:9 September

_____________ , _____________ , ______ , _____________ , _____________ , _____________ , _____________ , _____________ , _____________ , _____________ , _____________ , _____________ ,

6, 1948

35:l4 October 11, 194-8 35:1° November 8 ,194-8 35:23 December 13, 1948 36:3 January 17, 1949 36:8 February 21, 194-9 36:12 March 21, 1949 36:16 April 18, 1949 36:20 May 16, 1949 36:25 June 20, 1949 37:5 August 1, 1949 37:9 August 29 ,1949 37:12September 19 , 1949

82

_____________, 37:17 October 2if, 1949 _______ _____ , 37:21 November 21, 1949 _______________38:1 January 2, 1950 Cosgrove, Raymond P., ^Television1s G-rowth, Telecasting,” Broadcasting 35:23, December 6 , 1948. ”Fall Outlook,11 Broadcasting, 34:15, April 19 , 1948. James, E.P.H.,•”How Will Television Affect Other Advertising Media,” Printerfs Ink. Guide to Television Advertising. New York: Printer's Ink Publishing Company, Inc., I9I4.0 . 63 pp. Landberg, Klaus, Broadcasting, 34*4, January 26 , 19 ^ 8 . Langhoff, Dr. Peter, ”ljA's Acclaim TV”, Broadcasting, 34:15 April 12, 19I4.8 . Los Angeles, Broadcasting, 3$.10* September 6 , I9I4.8 . Poppele, J. B., ” 'Pay-Off1at Hand for Video, Poppele,” Broadcasting, 37:26, December 27, 1949* ______________, ”Sarnoff-Poppele See Video Surging,” Broadcasting, 33:24, December 27, 1947* Stanton, Prank, ”TV Won't Kill A.M.,” Broadcasting, 34:15, April 12, 19^8. Thornburgh, Donald, Broadcasting, 35:26, December 27, 1948. Tuchman, Ralph, ”Los Angeles *Mt. Millions',” Broadcasting, 35:26, December 27, 1948. C.

BOOKLET

Gardiner, Glenn N., Television Workbook One, (N.N.) 1949* 86 pp.

83

Dm

PUBLICATIONS OP LEARNED ORGANIZATIONS

Bennett, Phillip A., Television as an Advertising Medium, Washington, D.C., U.S. Department of Commerce, August 1949 , 31 pp. E.

OTHER SOURCES

Business Research Department, Los Angeles Examiner, 194-9 Southern California Radio and Electrical Appliance Associa­ tion Report, December 19> 194-9* Security-First National Bank of Los Angeles, Research Department Report, November 23, 194-9* Los Angeles Times Research Bureau July-August 194-9 Combined Report

APPENDIX

85 APPENDIX A LETTER OP INTRODUCTION

NO.l

October

19^-9

This will introduce Mr. Robert Drake of the Radio Department of the University of Southern California. Mr. Drake is conducting a research study on use of television advertising by retailers, the results of which should be useful to business men in Southern California, both advertisers and advertising media. Your cooperation will add completeness and authenticity to the survey findings.

(SIGNED) Robert J. McAndrews Managing Director Southern California Broadcasters Assn., Inc.

86

APPENDIX B LETTER OP INTRODUCTION NO*2

October 18, 19^4-9

Mr. Robert 0. Drake Radio-Television Research Dept. University of Southern California Los Angeles 7> Calif. Dear Mr. Drake: After reviewing the plans you outlines for your survey on "Retail Advertising in Television,” I want you to know that, in our opinion, the information you intend to compile should prove of significance to individuals and organizations interested in helping shape TV busi­ ness development. Since much of the advertising being used today on television lacks any pattern of precedent, whatever you should tabulate on the relative success of different presentations could well be helpful as a guide to con­ cerns yet to discover the TV medium. You may be assured of the cooperation of the Television Committee. I hope you will keep us apprised from time to time on your progress. Sincerely, (SIGNED) Richard L. Bean Secretary Television Committee Los Angeles Chamber of Commerce

87 APPENDIX C LETTER OP INTRODUCTION NO.3

October 20, 19^9

This will introduce Mr. Robert Drake, who is making an extensive research on the use of Television advertising. His findings should prove of great value and I am sure that any assistance you can give him in regard to your use of Television will be of later value to all concerned. Sincerely,

(SIGNED) Roy S. Kellogg Managing Director Advertising Club of Los Angeles RSK:b

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■» SOURCE: Rohrabaugh*s Report of Television Advertisers. Broadcasting Telestatus.