Every week, 2,985,400 adult consumers tune-in to a Detroit radio station. That is way more than are reached by other media, including local television, newspaper, social media, or streaming audio sites like Pandora and Spotify.
A more significant number for thousands of Southeast Michigan small business owners who advertise on Detroit radio is how many of these listeners stick around when their commercials come on.
A 2011 Nielsen study discovered that, on average, 93% of listeners stayed with the radio station they are tuned-to when the commercials come on. That number amazed many advertisers at the time who believed that audiences were far more likely to defect when the music stopped.
A lot has changed since 2011. Metro Detroit consumers have many more media options and can instantly connect to each with a button-push, mouse-click, screen-tap, or voice command. With all of these choices, do radio audiences still stay tuned during commercial breaks?
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button pushing
The chaos created in Southeast Michigan by the onset of Coronavirus has been a disruptive force among consumers.
Work routines, buying habits, family life, and media consumption have all been palpably affected. These are all factors that need to be considered by small business owners who continue to advertise their goods and services during the crisis.
Before the current chaos, advertising on Detroit radio, by any metric, was the best way a local small business could advertise.
For instance, pre-Coronavirus, 2.9 million adult consumers tuned-in to a Metro Detroit radio station every week. This is significantly more than watched local TV, read a newspaper, accessed social media, or streamed audio from sites like Pandora and Spotify.
New research released from Nielsen indicates that amidst the current crisis, listening to local radio remains little changed. This is great news for those Michigan small business owners who are depending on advertising for their long-term survival.
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detroit news,
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covid 19,
crisis marketing
Detroit area consumers are expected to spend $78.3 billion at retail this year, according to Nielsen. This means that every household, on average, will be dishing out over $44,000.
To capture a larger share of these dollars, Southeast Michigan small business owners need to know the answer to two questions.
The first question is, where is this enormous amount of cash being spent? The list below details the answer.
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consumer spending,
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ROI,
retail sales,
retail store
In 'normal' times, Metro Detroit consumers would be expected to rack up $78.3 billion in annual retail sales. Of course, since the onset of the Coronavirus crisis, nothing has been normal.
But as Gordon Borrell, CEO of Borrell Associates, explained to members of the Southeast Michigan small business community via teleconference, consumers are still spending. This, it turns out, is normal.
Mr. Borrell shared research from Ibis that demonstrates during every type of crisis, including depressions, recessions, floods, hurricanes, earthquakes, fires, and, now, pandemics, consumers still spend.
The business literature contains an abundance of examples of how continuing to market and advertise during an economic crisis can help a company survive and emerge from the episode even stronger than before.
Detroit small business owners who do continue to advertise and market, however, should consider modifying their pre-crisis strategy.
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borrell associates
Last week, Gordon Borrell, CEO of Borrell Associates, shared insights with Metro Detroit small business owners on the value of marketing to consumers during a crisis. A video replay of the teleconference is available by clicking here.
Mr. Borrell is the CEO of Borrell Associates. His company is one of the most trusted sources of trends and forecasts for local media today.
According to Mr. Borrell, despite social distancing and economic jitters induced by the Coronavirus chaos, consumers are still spending money.
He points to research from Ibis that consumer consumption continues in almost every crisis, including depressions, recessions, floods, hurricanes, earthquakes, fires, and, now, pandemic.
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covid 19,
crisis marketing,
borrell associates
How quickly the millennials have grown up.
According to Nielsen, 61% of all Detroit area parents with children under the age of 18 are millennials.
From the time their kids are born until they reach they are 17, these young parents will spend, on average, $233,000 per child. This does not include the cost of college.
Currently, there are 993,688 children under the age of 18 living in Metro Detroit. That makes the local millennial-parenting economy worth upwards of $231 billion. These dollars are being spent, among other things, on diapers, daycare, transportation, toys, education, electronics, clothing, and health care.
For Southeast Michigan small business owners interested in competing for a substantial portion of this multi-billion dollar pool of parental cash, they must advertise to millennial moms and dads. By almost any measurement, advertising on Detroit radio is the best way to reach this audience.
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pandora,
spotify,
online advertising,
streaming audio,
parents,
working mothers,
children
In a typical week, 2.9 million adult consumers tune-in to Detroit radio stations. But, since the onset of the Coronavirus, the weeks have not been typical.
In a typical week, before social-distancing and work-from-home orders, 1.9 million would drive to-and-from work each day. More than 94% of these commuters could be reached by radio.
Southeast Michigan small business owners who depend on radio advertising to market their goods and services, then, might be concerned that the disruption in commuting patterns could depress the amount of time consumers spend with local radio.
According to market research, however, radio listening remains an important part of the daily life of consumers.
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corona,
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covid 19,
crisis marketing
Metro Detroit small business owners are fighting the coronavirus battles on multiple fronts. Their first objective is to keep their families and employees safe. Then, of course, there are the concerns of keeping their businesses healthy enough to survive current disruptions.
The business literature has an abundance of case studies showing how survival is often connected to a thoughtful communications and marketing strategy during challenging times.
Business owners need to let Southeast Michigan consumers know if they are still open. If their hours have changed. Or if they are providing alternative shopping methods (e.g., delivery, curbside pick-up).
Most importantly, it is imperative consumers know that a business will still be there for them when the crisis is over.
For those owners who are depending on communication to preserve their business, the best option may be to advertise on Detroit radio.
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ROI,
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retail sales,
retail store,
corona,
coronavirus,
covid 19,
restaurants
If you were one of the 2,985,400 adult consumers who listened to the radio in Southeast Michigan last week, then odds are you heard a commercial for the Law Office of D. Todd Williams. The firm specializes in criminal defense cases involving traffic violations, probation matters, expungements, and serious felonies.
Mr. Williams has been advertising on Detroit radio every single month for the past 23 years.
"Radio advertising has been critical to building my practice," he says. "I can tell the days when my commercials run because those are the days my phones ring."
Shortly after passing the bar exam in 1995, Mr. Williams opened his firm operating from the basement of his Rochester Hills townhouse.
Mr. Williams's first cases came from friends and their referrals.
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lawyers,
attorneys,
legal services
Metro Detroit retailers spend a considerable amount of time and money marketing their small businesses on social media. Is this effort paying off?
Each month, according to Nielsen, 2.2 million Southeast Michigan adults use Facebook, Instagram, or Twitter. This equates to 65% of consumers. This reach is rather anemic compared to Detroit radio and TV, which attracts considerably more users in a single week than these social media platforms do over 30 days.
Among local millennials, the monthly reach of Facebook, Instagram, and Twitter is eclipsed by the weekly reach of Detroit radio.
The number of consumers reached by an advertising campaign, according to Nielsen, is the media consideration that has the most significant effect on increasing sales.
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small business,
small business owner,
radio advertising,
best way to advertise,
reach,
facebook advertising,
retail,
retailer,
facebook,
retail store,
instagram,
twitter,
engagement