VALUE OF ADVERTISING

Taranaki Daily News, 16 July 1932, Page 12

VALUE OF ADVERTISING

RAILWAY EXPERIENCE.

NEWSPAPERS BEST MEDIUM.

New Zealand’s largest, enterprise, the Railway Department, finds that to achieve results 70 per cent, of its advertising expenditure must be spent in newspapers and magazines. In ea mg up ’to an analysis in the latest issue of the Railway Magazine, of railway advertising Mr. George G. Stewart, publicity manager and editor of the magazine, states: “As publicity is the predominating factor in salesmanship, obviously the utmost care must be exercised in the planning, preparation and placing of the work to ensure that the message will not miss its objective. Hence the great importance attached by all successful service ventures to their publicity organisation and the constant search for better ways to tell their story and effect sales or attract patronage.” An aaialvsis of actual expendituic by the publicity branch during the financial year ended March 31,• continued Mr. Stewart, shows the following proportions in the three main groups under which advertising may be conveniently classified: — Percentage of total Newspapers, magazines, etc. _.. /0 “Catch the eye” advertising (hoardings, signs, screens, etc.) 20 Railway publications and miscellaneous As an examination of the'figures over a number of years shows very similar proportions, these percentages may be accepted as a fair approximation of the relative value of these mediums for railway advertising purposes, especially as they are somewhat similar to those of progressive railway undertakings in Great Britain and elsewhere. That the most desirable proportion, under piesent conditions, conforms closely to this ratio is proved —in the New Zealand case, at least —by the fact that much of the advertising was arranged according to the needs of the moment and for special and frequently shortterm campaigns with complete freedom in planning and without direct reference to any pre-arranged ratio. CUMULATIVE VALUE. Whilst in the case of certain excursions and special types of service definite returns from advertising have beep noted, much of the publicity for the railways} must be of a general nature, adds the yvriter. The net returns from special excursions can be calculated with considerable accuracy, and Comparisons cau be made regarding the stimulating effect of different allocations of advertising upon such excursions, but what measure cam be made of the profit to the railways accruing, for instance, from the safety they provide. . A record of 150,000,000 passengers carried without fatality in six years is an excellent advertising point; it is a point of service that attracts much business to the railways; it must be advertised freely, but its monetary value cannot be calculated. Similarly, in the. matter of comfort and convenience, the railways have special points in their favour which must be explained adequately and emphasised to attract additional traffic. But the direct return from such advertising cannot be assessed. However, the general effect is there, and on this point one can,not do better than quote from on article contributed in 1930 to the Newspaper News by Mr. H. H. Sterling, then General Manager of Railways and now chairman of the Government Railways Board. Mr. .Sterling said:—“Probably no better illustration oi the value of Advertising in lime of need can be afforded than the railways. We, in New Zealand, believe we have a message regarding our product .(transport) worth conveying to the people; and ’we have within recent years very substantially ineraesed our advertising allocation. Has it been worth while? It may be difficult. to assess the returns from advertising with mathematical precision, but I say with confidence that what we have spent on publicity work has been well worth while.”