VALUE OF ADVERTISING

Evening Star, Issue 19651, 2 September 1927, Page 2

VALUE OF ADVERTISING

NEWSPAPERS MOST EFFECTIVE PROVED BUSINESS BUILDER In view ni the a] lathy of retailers to place their electrical utilities before the public through the advertising columns of the daily newspaper, the report presented to the .National Electric Light Association of America at the recent conference shows' what they arc missing. .Dunedin firms arc slow in appreciating the value of the electrical page. Of the £2,500,000 spent in 1920 for advertising by 210 electric light and power companies of the United States, 02 per cent, was used in newspapers, W H. Hodge, chairman of the Advertising Committee of the National Electric Light Association told the fiftieth annual convention of the association. This represents only sixtenths of 1 per cent, of the gross income of the industry, ho said. So. satisfactory have been the results in building up business and thereby effecting a reduction of service cost to the consumer that the committee urgently recommended that a greater effort be made by the entire industry in the direction of advertising. It was found that companies with Lho largest, advertising budgets “ usually have both low rate schedules and satisfactory earning.” .Mr liodge stressed the fact that little value accrues from occasional “hit or miss” advertising, and proposed that lho industry undertake and organise a continuous schedule under which it would present its story to the public systematically. In lino with this proposal, James E. Davidson, of Omalup, formerly president of the association, recounted thi large increases in business accruing to other cater]irises that resorted to advertising, specifying particularly the citrus fruit industry, cement products, paint and varnish, jewellers, and others. However important other channels of advertising, the newspaper affords the, avenue that returns the greatest business to the merchant, ]). If. Kelly, president of “The Fair,” Chicago department store, said. “ Merchants generally recognise that magazines and street car and billboard advertising arc of unquestioned value in marketing products requiring nationwide distribution,” said Mr Kelly “However, without appearing to hold brief for the newspapers, wo arc of (lie definite opinion that, dollar for dollar, our return from newspaper advertising is greater than any other form of advertising. Wo would advise manufacturers to link up their advertising with advertising of local dealers. Thus they will inform the public where their products may bo had, and should produce the best results.”