DOCUMENT RESUME 00055 - [A1051714] (Purchase and Preparation of Television Commercials by the Government]. B-144618; LCD-77-415. March 18, 1977. Released Jujy 18, 1977. 4 pp. Report to Sen. Barry Goldwater; by Elmer B. Staats, Comptroller General. Contact: Logistics and Communications Div. Budget Function: General Government: Other General Government (806). congressional Relevance: Sen. Barry Goldwater. In response to a question concerning the amount the Government spends to broadcast television ccmmercials, the total cost of advertising for 31 Federal agencies for 1975 was obtained by GAO. The figures included the cost of television productions. Furchasing costs for advertising freo private agencies were broken down by type of media, but in-house costs were not. Therefore, the total costs for television commercials alone has not been determined. Findings/Conclusions: The agencies spent S141.6 million iD fiscal year 1974 and estimated that S145.5 million would be spent in 1975 for advertising from private agencies. In addition, they spent $47,497,600 for in-house advertising in 1974 and estimated $53,287,700 for fiscal year 1975. TLe purchased television production costs, including both the purchase of television tine and of professional services and materials associated with such production, were S4,929,300 for fiscal year 1974 and $9,596,000 for '975. There was a large increase in television time costs between the 2 years because of the Postal Service's national stamp collecting campaign. (QO) \ _>M rR¢c' _LvAR GENERAL OF THE UNITMD STATES WASLtNwOaN. D.Cx dS B-144MAR18 W77 Q -144618 NERThRICT=D _ Net to be repelmd euside the OenePrl o Acceunt.ng (tffic except on the bails of pecific ap"roval by the Office of .ongresional Relations The Honorable Barry Goldwater United States Senate Dear Senator Goldwater: In your letter of January 3, 1977, you asked us to tell you how much the Government spends each year to broad- cast television commercials, the cost to prepare these commercials, and whether the commercials are prepared by a Federal agency or by private agencies. The information you requested is not readily avail- able and would require elicting the data from each agency and bureau in the Government. Fortunately, we do have in- formation oni.and we believe will meet your needs. To answer a similar congressional inquiry in 1975, we obtained from 31 agencies (see enc. I) the total cost of advertising including the cost of television productions. The costs of purchasing advertising from private agencies were broken out by the type of media, but the in-house costs which some agencies incur were not similarly broken out. Con- sequently, we are not able to tell you the total cost to the Government to prepare television commercials. However, we believe the information we have will be of interest to you. The 31 agencies questioned in 1975 spent $141.6 mil- lion in fiscal year 1974 and estimated that $145.5 million would be spent in fiscal year 1975 for advertising from private agencies. In addition, the 31 agencies spent $47,497,600 for in-house advertising during fiscal year 1974 and estimated $53,287,700 for in-house advertising for fiscal year 1975. The total cost for advertising for the 31 agencies--both purchased from priviate agencies and prepared in-house--amounts to $189 million for fiscal year 1974 and an estimated $199 million for fiscal year 1975. The expenditures and the various types of media pur- chased from private agencies are as follows: LCD-77-415 B--144618 1974 1975 (actual) (estimated) Television $ 4,929,300 $ 9,596,000 Radio 2,006,400 2,428,700 Newspapers & magazines 30,168,400 30,487,800 Posters, bill- boards, & displays 15,592,100 13,004,000 Brochures & catalogs 25,673,000 31,676,000 Films 5,464,400 6,277,900 Other 57,757,700 52,029,0000 Total $141,591,300 $145,499,400 The television costs include both the purchase of television time and the purchase of professional services and materials associated 'with producing television com- mercials and public service messages. Television time for public service messages is generally provided at no charge by the local stations. The purchased television production costs for the 31 agencies are as follows: FY 1974 FY 1975 (actual) (estimated) Purchased television time $ 576,200 $3,739,300 Purchased professional services or materials 4,353,100 5,856,700 Total $4,929,300 $9,596,000 The increase in costs between fiscal years 1974 and 1975 to purchase television time is attributable to the Postal Service's national stamp collecting campaign. The Postal Service increased its purchase of television time from $160,000 in fiscal year 1974 to $3,475,700 in fiscal year 1975. 2 B-144618 We are enclosing a copy of our report on Government advertising expenditures (LCD-76-415, dated October 6, 1975) for your information. Please feel free to contact us if you require any additional information. Si r y your Comptroller General of the United States Enclosure ENCLOSURE I ENCLOSURE I AGENCIES QUESTIONED IN 1975 ABOUT ADVERTISING COSTS 1. Department of Agriculture 2. Department of Commerce 3. Department of Defense 4. Department of Health, Education, and Welfare 5. Department of Housing and Urban Development 6. Department of the Interior 7. Department of Justice 8. Department of Labor 9. Department of State 10. Department of Transportation 11. Department of the Treasury 12. ACTION 13. American Revolution Bicentennial Administration 14. Commission on Civil Right; 15. Consumer Product Safety CDmmission 16. Council on Environmental Quality 17. Energy Research and Development Administration ,8. Environmental Protection Agency 19. Faual Employment Opportunity Commission 20. Federal Communications Conlmission 21. Federal Energy Administration 22. Interstate Commerce Commission 23. National Aeronautics and Space Administration 24. Nuclear Regulatory Commission 25. Selective Service Commission 26. Small Business Administration 27. Smithsonian Institution 28. United States Civil Service Commission 29. United States Information Agency 30. United States Postal Service 31. Veterans Administration 4
Purchase and Preparation of Television Commercials by the Government
Published by the Government Accountability Office on 1977-03-18.
Below is a raw (and likely hideous) rendition of the original report. (PDF)