At the dawn of 2020, Metro Detroit small business owners were expecting the area's retail economy to expand by 4.1%. This optimism was stoked by the National Retail Federation's chief economist who said, "Consumers remain upbeat and have the confidence to spend, and the steady wage growth that has come with the strong job market is fueling their spending. The state of the consumer is very healthy."

By February, however, the country entered into a COVID-19 induced recession. Then, to slow the spread of the pandemic, on March 24, the Governor of Michgian locked the state down. This brought the Detoirt area's $78,3 billion retail economy to a standstill.

As stores, restaurants, and offices in the Detroit area begin to re-open, consumers' appetite for spending is returning. According to Nielsen, loyal radio listeners are very likely to be first in line at the cash registers.

Metro Detroit small business owners are learning that 're-opening' may not be an appropriate word for the challenges they face as the Coronavirus crisis winds down.  A better term might be 're-introducing'.

Since the Governor of Michigan shuttered the state on March 23 to slow the spread of COVID-19, Detroit area consumers have discovered new ways to buy the goods and services they need.  It's now the burden of local business owners to lure these customers back. The first step is re-introduction.

On August 20, 1920, WWJ signed-on as the first radio station serving Southeast Michigan. Since then, local business owners have used radio advertising to introduce themselves successfully to new customers. Radio has also helped these businesses survive recessions, depressions, world wars, tornados, and blizzards. By any metric, advertising on Detroit radio remains the most effective tactic a small business owner can use post-pandemic, as well.

More than 91% of Detroit area households own at least one vehicle. 

Pre-pandemic, 88% of workers spent, on average, 58 minutes every weekday in these cars commuting to-and-from their jobs.  

On their way to work, many of these drivers would contribute to  Southeast Michigan's $78.3 billion retail economy by visiting the convenience stores, coffeehouses, auto repair centers, gas stations, daycares, grocery stores, or hundreds of other businesses they passed.

At lunchtime, these same cars would take their owners to restaurants, dentist appointments, nail appointments, barbershops, and on an infinite number of other errands.

On the weekends, these vehicles filled the parking lots of hardware stores, furniture stores, car dealers, appliance stores, bowling alleys, movie theatres, and nightclubs, 

Then on March 23, when the Governor of Michigan shut down the state to slow the spread of COVID-19, traffic came to a standstill and so did the spending.

There are strong indications, though, that in the Detroit area, roads are filling up again.

Metro Detroit small business owners may perceive the continuation of advertising as a luxury right now. This is especially so when compared to the necessity for covering the costs of utilities, inventory, payroll, and rent.

Before pulling the plug, though, business owners from Troy to Monroe must consider the consequences of 'going dark', a marketing term which means to stop advertising.

"According to our analysis, short-term decisions to go dark create significant risk for long-term revenue," says Ameneh Atai, Senior Vice President of Commercial Strategy at Nielsen. "This affects both incremental revenue and base sales."

"Our database of long-term effects models suggests that cutting ad spending for the rest of 2020 could lead up-to 11% revenue decrease in 2021," says Ms. Atai. "It could take three to five years of solid and consistent brand building to recover from an extended dark period of media."

"We have a ton of evidence in our historical analysis," adds Nielsen's Tsvetan Tsvetkov, Senior Vice President of Agency and Advertiser Solutions. "Companies that step away from advertising efforts for a period of time, whether it's a couple of quarters or a full year or longer lose the momentum they have built over time the minute they stop. To recover takes a long, long time."

To avoid the economic risks of going dark, local small business owners need to make sure every dollar spent on advertising produces solid returns.  By most marketing metrics, advertising on Detroit radio could prove to be the best option.

Type "DETROIT REAL ESTATE AGENTS" into Google. In slightly over a half-second, the search will deliver 13,000,000 results. Similar searches for Troy, Bloomfield Township, Ann Arbor, Grosse Pointe Park, or Birmingham produce a proportional number of returns.

Despite the economic hardships imposed by the Coronavirus crisis on Southeast Michigan consumers, the demand for real estate is booming. 

The Wall Street Journal published a trend yesterday indicating that mortgage applications for purchase a home have achieved levels equal to last year.

According to redfin.com, home buying demand is 16.5% higher now than it was pre-COVID-19 on a seasonally adjusted basis.

Redfin attributes this explosive growth in real estate shoppers to two factors, including record-low mortgage rates. The other primary driver is a migration trend from expensive metropolitan areas as buyers hunt for more space at lower prices.

To capture a larger share of the robust market, local real estate agents need to stand apart from the millions of Google results.  Advertising on Detroit radio will help accomplish this.  Here's why.

To slow the spread of COVID-19, the Governor of Michigan shut down all but the most essential businesses in the state on March 23. This public safety measure inflicted a severe disruption to Metro Detroit's $78.3 billion retail economy.

As local small business owners prepare to reopen, each must concentrate on supercharging their cash flows to compensate for weeks of consumer abstinence. Turning the lights back on and hanging out a welcome sign might not be enough, though, to bring even the most loyal customers back.

Some customers may not return because of personal safety concerns. Other customers may have discovered alternative sources to purchase goods and services.

But, there is one thing every Southeast Michigan small business owner can be assured of. Consumers will not return if they aren't aware that a business has reopened.

Advertising is a potent tactic for any Detroit small business that needs to reintroduce itself to local consumers.

“Think you have a great product?” asks the U.S. Small Business Administration. “Unfortunately, no one’s going to know about it unless you advertise.”

COVID-19 has had a profound effect on cash register receipts in Southeast Michigan. Every day small business owners from Monroe to Auburn Hills are being challenged by the pandemic induced recession.

Just yesterday, for instance, the US Commerce Department announced that April retail sales were down by 20% vs. the same month last year. This is sure to take a massive bite out of the $78.3 billion in annual consumer spending Metro Detroit businesses had been expecting in 2020.

“April was the cruelest month,” Craig Johnson, president of Customer Growth Partners, told the Wall Street Journal. "Retail spending likely bottomed out in the first week of May with spending picking up due to Mother’s Day and gradual state reopenings.

“It’s going to be less worse with each month,” said Mr. Johnson, “as people slowly come out of the foxhole and enter the mainstream of American consumerism.”

The ability of a Southeast Michigan small business to survive past the lockdowns will depend on the steps it takes now.

WARC, a company that collaborates with more than 50 respected marketing organizations, including the Advertising Research Foundation and the Association of National Advertisers, has identified ten tactics that businesses should implement immediately. The #2 step on this list: Keep advertising if you can.

Pay-TV is struggling to survive COVID-19.

Before the onset of the pandemic, Nielsen reported that 69% of Southeast Michigan area households received their television programs from cable systems, telephone companies, or satellite operators.  That number, however, is plummeting.

Pay-TV providers in the Detroit area include Xfinity, Dish, AT&T TV, Spectrum, and DirecTV.

"Cord-cutting, people dropping their cable and satellite TV subscriptions, pre-dates the onset of Covid-19. But the pandemic is exaggerating the trend, creating deeper issuers for programming that relies on those services for distribution," Eric Savitz wrote last week in Barron's.  This includes non-premium services like ESPN, TBS, TNT, USA, CNN, and Discovery.

"LightShed Partners analyst Richard Greenfield counts a loss of 1.96 million subscribers to cable, satellite TV, and virtual cable services combined in the first quarter," Savitz continued. "This is the worst combined quarterly drop ever, down 6% from a year ago."

Greenfield said in an interview with Barron’s that what is especially sobering is that most of the first quarter activity pre-dated the virus. The numbers are likely to get considerably worse in the second quarter.

In January, Detroit small business owners were in a panic. The unemployment rate was at a record low 3.7%, and there were not enough workers to fill their open jobs. 

As of today, though, Michigan is reporting that at least one-in-four of the state's workforce have lost their jobs for COVID-19 related reasons. Yet, many small business owners are still struggling to find employees.

According to The Wall Street Journal, "For some workers, unemployment benefits are now paying more than their old jobs did. For others, safety concerns or a lack of child care, as most schools and day-care centers remain closed, are making them hesitant to go back."

“That’s going to get in the way of any real recovery,” Douglas Holtz-Eakin, president of American Action Forum and former director of the Congressional Budget Office, told WSJ.

The struggle to hire employees creates an additional threat for those Southeast Michigan small business owners who received loans under the SBA's Paycheck Protection Program.  

To qualify for the loan forgiveness provision of the PPP, business owners must restore its workforce to pre-Coronavirus levels. This must be accomplished within eight weeks of receiving the monies.

So, just like in January, local small business owners are under pressure to fill open jobs. Advertising on Detroit radio is a potent way to attract and hire the needed employees.

Facebook usage has swelled since the onset of the Covid-19. 

According to Nielsen, before the current chaos, 59% of Metro Detroit adults used Facebook each month. This was significantly fewer than were reached by local radio or television each week.

According to the New York Times, however, since the start of the Coronavirus, daily Facebook traffic has increased by 27%. This compares to 33% growth in the amount of time consumers spend listening to local radio during a similar period.

Based on the surge in Facebook consumption, Southeast Michigan small business owners might be tempted to purchase advertising on the social media platform to augment their regular, free postings. Here are are few facts these businesses should consider before investing.