In 1920, when WWJ became the first radio station in Southeast Michigan, many considered the medium a fad.  Even in 1937, a hit song by George Gershwin, Our Love Is Here To Stay, considered radio to be a "passing fancy and in time may go".

Detroit radio, however, has survived the advent of talking-movies, television, eight tracks, and cassettes in stereo.  More recently, radio has withstood a tsunami of digital options including, YouTube, SiriusXM, Pandora, and Spotify.

As the Coronavirus pandemic rolls over into a second year, Detroit radio has hung tough and not ceded its ground despite listener's shifting lifestyles.  This is crucial news for local small business owners who depend on local stations to market their goods and services.

Each week, according to Nielsen, 62.5% of Southeast Michigan consumers watch video programs that aren't delivered over-the-air by local TV stations.  They aren't coming from a local cable company or by satellite.  Instead, these programs are being streamed directly to viewers via an internet connection.

This type of streamed video content is called OTT (Over-The-Top-Television) or CTV (Connected-Television). These two terms are sometimes are often used interchangeably but do have a subtle difference.

OTT generally means the video is watched on a small device like a computer, tablet, or smartphone.  CTV, on the other hand, typically means the content is viewed on a smart-TV or a regular television using a streaming device like a Roku or Amazon stick.

In Metro Detroit, OTT/CTV has exceeded the weekly reach of local newspapers and streaming audio services such as Pandora and Spotify. The medium is rapidly approaching the reach of local cable and broadcast TV stations.

Southeast Michigan residents will begin receiving economic stimulus checks  from the Internal Revenue Service as early as today.  In all, local consumers will receive more than $5.5 billion in payments.

This infusion of cash into the Metro Detroit economy was authorized by Congress last week in the American Rescue Plan legislation. 

The stimulus relief legislation calls for a one-time payment of $1,400 to single adults. Married couples who filed jointly will receive $2,800 total ($1,400 apiece). Families will get an additional $1,400 for each eligible dependent regardless of age. A family of four could get $5,600 in total payments. Like the second round of stimulus payments, the third round specifically prohibits payments to anyone who died before January 1, 2020.

Many of the stimulus dollars will end up in the wallets of 1.1 million Detroit area homeowners. Based on research from Modernize, a leader in the home improvement and home services industry, 57% of these consumers are planning to spend all or part of their checks on home improvement projects.

Each week, according to Nielsen, more than 3.1 million adult consumers tune-in to a Detroit radio station. This is significantly more than watch local TV or cable. More than stream video channels like Netflix or Hulu. More than read local newspapers. More than use Facebook or Instagram. More than listen to online audio services like Pandora and Spotify.

But almost everyone knows (including many who advertise on Detroit radio) that consumers only listen to local radio stations during the day. Right? Wrong!

According to Nielsen, 49% of local consumers listen to Detroit radio stations each week between 7:00pm and 12:00am. This is a larger audience than Pandora, Spotify, and Instagram combined reach during an entire week.

For Southeast MIchigan small business owners, radio's immense nighttime audience offers a unique value proposition.

Southeast Michigan consumers are expected to spend upward of $58.8-billion at retail in 2021. This would be, at minimum, a 6.5% jump over 2020. The forecast is based on newly released estimates by the National Retail Federation.

“Despite the continuing health and economic challenges COVID-19 presents, we are very optimistic that healthy consumer fundamentals, pent-up demand and widespread distribution of the vaccine will generate increased economic growth, retail sales and consumer spending,” NRF President and CEO Matthew Shay said.

“From the outset of the pandemic, retailers have gone above and beyond even the most conservative safety guidelines to protect and serve their associates and consumers alike."

To capture the largest possible share of spending growth, local retailers will need to advertise. By the most crucial marketing metrics, the best best way to reach consumers is by advertising on Detroit radio.

Southeast Michigan business owners are expected to invest $964-million during 2021 to advertise to consumers connected to the internet. This forecast was produced by Borrell Associates, a company that tracks business advertising expenditures across the country.

These online marketing dollars will be spent on banner advertising, search engine marketing, email, as well as audio and video advertising. This is all to capture the attention of shoppers and buyers as they go about their connected days.

According to Nielsen, 92.9% of adult consumers in the Detroit area have access to the internet. They connect, primarily, with desktop and laptop computers; smartphones; or tablets.

Ninety-six percent of Detroit adults spend at least one hour per week online, with most spending at least 10 hours connected.

Since 1920, advertising on Detroit radio has helped small business owners survive and thrive during times of peril. This includes world wars, natural disasters, depressions, and recessions.

Even during a pandemic, by almost every key marketing metric, radio advertising remains the best way for a Detroit business to market its goods and services.

To prove the point, here are five statistics that vividly demonstrate the value of advertising on Detroit radio.

There are 1,818,900 adult women in Southeast Michigan. Based on research from the Harvard Business Review, as a consumer group, females account for 70-80 percent of all consumer purchasing through a combination of their buying power and influence.  According to Nielsen, this will amount to between $57.9 billion and $66.2 billion this year.

Overall, according to the Bureau of Labor Statistics and the US Census Bureau:

• Single women across all income brackets spend, on average, $34,817 on goods and service
• Working married women contribute over a third of their families’ incomes
• Over a quarter (29.4%) of wives earned more than their husbands in 2018, an increase from 15.9% in 1981.

Furthermore, according to research published by Forbes:

• The top homebuyers after married couples are single women (18%, double the percentage for single men at 9%).
• Women are 50% more likely than men to regularly watch online how-to videos.
• 94% of women between the ages of 15-35 spend over an hour per day shopping online.
• 70% of travel consumers are women.
• 85% of women say that if they like a brand, they will remain loyal to it.

For Metro Detroit small business owners to successfully capture a meaningful share of the local female economy requires advertising.

Detroit's first radio station, WWJ-AM, began broadcasting on September 15, 1920.  The process of getting the station's programming from the studio into the home of local listeners required tall-transmitting towers with miles of underground copper wire in the middle of massive fields.

For the next 73 years, this massive investment in real estate, steel, and cooper was the only method of delivering a radio advertiser's message into the ears of Southeast Michigan consumers.

In 1993, however, new technology permitted Metro Detroit radio stations to augment the reach of their tall towers by simultaneously streaming its over-the-air programming via the internet. This provided local consumers with the choice of listening to their favorite stations on their car radios, clock radios, and boom boxes or on an internet connected devices like computers, smartphones, or tablets.

Today, based on estimates from Edison Research, 11% of listening to local radio stations occurs on a streaming media device.  The ability for AM/FM to migrate from their tall towers to internet streaming allows Detroit radio to reach more local consumers every week than all other media.

There are 33 radio stations in Southeast Michigan. Each provides a unique format of news, sports, music, entertainment, and inspiration. Some stations broadcast in English. Others serve Spanish speakers. Some stations cater to millennials. Others appeal to Baby Boomers.  No doubt, there is a local radio station that fulfills the preferences of every listener.

Each week, according to Nielsen, 3.1 million adults tune-in to their favorite Detroit radio stations. This is more people than watch local TV, cable, or streaming channels. This is more than use Facebook and Instagram. This is more than read newspapers or connect to Pandora and Spotify. 

Despite the abundance of Detroit radio stations to choose between, Nielsen reports that, on average, adult consumers only listen to three each week.  So, which stations do local consumers choose?