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What Is The Best Way To Reach Metro Detroit's 3.5 Million Consumers?

Aug 17, 2020 11:19:59 AM / by Larry Julius

Despite all of the media options available for small business owners to market their goods and services, advertising on Detroit radio is still the best way to reach local consumers.

Adult consumers are spending 741 minutes per day consuming electronic media, according to a new study by Nielsen.  This is 7.8% more time than they spent last year and 11.2% more than in 2018.

The typical daily media diet consists of radio, live TV, time-shifted TV, DVD/Blue-ray devices, game consoles, internet-connected devices, as well as internet via computers, smartphone apps, and tablet apps.

According to Nielsen, despite all of these media options, local radio reaches the most consumers every week.

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Topics small business, small business owner, radio advertising, best way to advertise, reach, reach and frequency, retail, return on investment, ROI, retailer, retail sales, retail store, advertise on radio, advertising reach, small business marketing, small business advertising, effective advertising

What Happens When A Detroit Small Business Stops Advertising?

May 28, 2020 7:03:17 AM / by Larry Julius

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.

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Topics small business, small business owner, radio advertising, best way to advertise, reach, reach and frequency, retail, return on investment, ROI, retailer, retail sales, retail store, advertising reach

Who Do Detroit Consumers Trust During A Crisis?

Apr 27, 2020 2:03:01 PM / by Larry Julius

For Detroit small business owners, marketing and advertising are crucial to surviving any crisis, including Coronavirus. The business literature has an abundance of case studies from depressions, recessions, natural disasters, and, yes, pandemics that affirm this existential conclusion.

Advertising, however, may seem extravagant right now to Southeast Michigan businesses that are struggling to make rent, purchase inventory, and meet payroll. Henry Ford, though, is often quoted as saying, "Stopping advertising to save money is like stopping a clock to save time."

Therefore, as business owners from Monroe to Lapeer (and every point in between) are cinching their belts tighter-than-ever to stay alive, the dollars invested in advertising must be spent in the most effective manner possible.

During periods of uncertainty, advertising works the hardest when placed in within media that consumers trust.  During the time of COVID-19, advertising on Detroit radio has earned that trust among local consumers.

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Topics small business, small business owner, radio advertising, best way to advertise, reach, advertising recall, corona, coronavirus, covid 19, recession, crisis marketing, trust, context

How Well Does Social Media Work For Detroit Retailers?

Mar 13, 2020 1:05:29 PM / by Larry Julius

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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Topics small business, small business owner, radio advertising, best way to advertise, reach, facebook advertising, retail, retailer, facebook, retail store, instagram, twitter, engagement

Advertising In Detroit Newspapers vs. Local Radio

Mar 4, 2020 7:10:00 AM / by Larry Julius

There were a lot of 'firsts' in Southeast Michigan on voting day of 1920.  It was the first time, ever, women could participate in the selection of the U.S. President. It was also the first time live election results were broadcast on the radio. Not to mention, it was also the day of the first radio broadcast, ever.

The voters' choice that night was between Warren G. Harding  and James M. Cox.  Both men had derived their political power as successful newspaper publishers.  It is quite ironic, then, that one of these men would reach the highest office in the land on the same night that the nascent radio broadcasting business began its takedown of the newspaper industry.

Nowhere is this takedown more apparent than locally, where Detroit radio has become, by far, the advertising medium with the largest reach among local consumers.

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Topics small business owner, radio advertising, best way to advertise, reach, newspaper advertising, Free Press, detroit news

Metro Detroit Retail Boom: How Your Small Business Can Benefit

Feb 29, 2020 8:02:00 AM / by Larry Julius

Retailers in Southeast Michigan rang-up $78,314,821,000 in retail sales last year, according to Nielsen. But wait. It's about to get better.

The National Retail Federation forecasts that in 2020, sales will increase by as much as 4.1%. This will create another $3.2 billion for local small business owners.  

“The economy is growing at a more modest pace, but the underlying economic fundamentals remain in place and are positive,” stated NRF chief economist Jack Kleinhenz. “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.

To claim a fair share of this enlarged pool of spending will require Metro Detroit small business owners to advertise.

“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.”  

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Topics small business, millennials, small business owner, television advertising, radio advertising, best way to advertise, reach, consumer spending, social media advertising, facebook advertising, pandora, spotify, digital advertising, newspaper advertising, online advertising, retail, store traffic, retailer, retail sales

What Is The Best Way To Advertise In Detroit?

Feb 25, 2020 3:56:45 PM / by Larry Julius

If you don't have time to read this entire article, then I will tell you right now. The best way to advertise in Southeast Michigan is on Detroit radio.

An essential function of advertising is to compel consumers to take action regarding a specific product or service.

Consumers in the Detroit Metro area are expected to spend at least $78.3 billion at retail this year. To claim a greater share of this giant pool of cash requires local business owners of every size to advertise their goods and services. As Professor Jef Richards at Michigan State University points out, “Advertising is totally unnecessary…unless you want to make money."

The bottom line: It is difficult for anyone in Metro Detroit to purchase a product or service from a local business if they aren’t aware it exists.

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Topics frequency, radio advertising, best way to advertise, reach, consumer spending, reach and frequency, advertising recall, top of mind

Advertising On Detroit Television vs. Local Radio

Feb 24, 2020 7:18:22 PM / by Larry Julius

There is alarming news for small business owners who advertise on Detroit television stations: broadcast TV viewers are disappearing at a rapid pace.

Nielsen reports that halfway through the first quarter of this year, the number of people using television has dropped 7.5%. This compares to -6.3% in the fourth quarter of 2019, and -7.0% a year ago,

"If the trend holds, it would represent the largest quarterly decline for TV viewership in our data set," explains UBS analyst John C. Hodulikadding. "Trends have worsened across most age demos with persons 25-34 now falling -17% vs. low double-digit declines throughout 2019. The persons 55+ demo continues to trend down -2%, similar to 2019 (the first year of declining ratings for the demo)."

Radio listenership, on the other hand, has remained quite stable, according to Nielsen. Since 1970, the medium has reached more than 9-in-10 consumers every week.

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Topics television, small business, millennials, media usage, frequency, small business owner, television advertising, radio advertising, best way to advertise, reach, consumer spending, branding, generation y, generation x

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