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.

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.”

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.

The top concern of every Southeast Michigan small business owner is the health and safety of their families and employees.  Local information and breaking news regarding the Coronavirus is available by clicking here.

Of course, a secondary concern is tending to the health of their business amid an overabundance of social and financial disruptions. 

There is one prescription that helped many Metro Detroit businesses survive the Great Depression of 1929, the economic crash of 2009, and every recession in between.  The Rx for keeping a business healthy during chaotic times is to continue advertising.

The best example of how advertising can fend off tough times was shared by The New Yorker magazine financial columnist James Surowiecki.

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. 

"Our franchisees love advertising on Detroit radio," says Katherine Villeneuve, Director of Marketing & Franchise Support for Auto-Lab. "They understand that radio reaches the masses, and can achieve the messaging frequency to be effective."

Auto-Lab started in 1989 as a single-independent store in Sturgis, Michigan. The company has expanded to include 21 franchises across the country. Nine of the stores are located in Metro Detroit, each operated by a local, small business owner.

Auto-Lab offers consumers the same diagnostic, maintenance, repairs, and parts as a car dealership's service department but, for what Ms. Villeneuve describes as a 'fair price'.

To drive traffic into one of Auto-Lab stores in Southeast Michigan, each franchisee contributes 3% of their gross sales to a cooperative marketing fund. Ms. Villeneuve then works with the owners to create persuasive, annual advertising campaigns.

"Each of the owners has input into how the money is spent," she says. "Afterall, because they are in the stores every day, they have the best sense who their customers are."

For the last four years, the Metro Detroit Auto-Lab owners have chosen advertising on Detroit radio as the primary way to reach new customers.

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.”