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What Detroit Consumers Need To Know Now About Your Small Business

Aug 12, 2020 7:45:34 AM / by Larry Julius

There is good news for Metro Detroit retailers and restaurants.

As a result of the pandemic, one-third of consumers indicate they will pay a premium for local brands and products, according to a recent study by Ernst & Young

However, before consumers will buy from a local business in Dearborn, St. Clair Shores, Farmington Hills, or any town in-between, they must know they can do so without risking their health.

Advertising is the only practical way to let Southeast Michigan shoppers and diners know about the precautions and practices your small business has taken to reduce potential health threats.

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Topics small business, small business owner, best way to advertise, restaurant marketing, restaurant advertising, retail, retailer, retail sales, retail store, restaurants, writing a commercial, small business marketing, small business advertising, effective advertising

Advertising In Detroit: Radio Listening Little Change From Year Ago

Aug 10, 2020 7:01:00 AM / by Larry Julius

During July, 1.6 million adult listeners spent 1.75 hours per day listening to their favorite Detroit radio stations, according to Nielsen. Despite an avalanche of pandemic induced disruptions, the daily time spent with radio is down by only by one-quarter-hour from a year ago.

Some advertising experts had predicted that as consumers spent more time at home because of COVID-19 concerns, the hours devoted to radio listening would dramatically decrease. That, however, was not the case.

In July of 2019, according to Nielsen, 26.3% of radio listening occurred at home. During July of this year, in-home listening jumped to 34.5%. Despite the reduction in out-of-home activities, though, consumers still spent nearly the same amount of time listening to Detroit radio.

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Topics small business, small business owner, radio advertising, best way to advertise, pandora, spotify, corona, coronavirus, covid 19, advertise on radio, small business marketing, small business advertising, podcasts, sirius/xm

Advertising On Detroit Radio Reaches Pay-TV's Cord Cutters

Jul 30, 2020 2:26:28 PM / by Larry Julius

More than one-third of Metro Detroit households are 'cord-cutters' or 'cord-nevers'. This means, they have fired their cable or satellite television providers or never subscribed at all. Instead, these consumers are choosing to find their video entertainment elsewhere.

The number of local homes that subscribe to pay-TV services began plummeting in 2013. New technologies has allowed viewers to bypass cable and satellite for more compelling content at lower prices. These cord-cutters now depend on services like Netflix, Hulu, Disney+, and Amazon Prime to fill their multiple screens.

For many years, Southeast Michigan small business owners have been investing a significant portion of their advertising budgets into cable-TV.  The medium had proven to be a low-cost, high-reach alternative to buying commercial on over-the-air television stations. 

Now, because of cord-cutting, there are 1.1 million adult consumers with unconnected TVs. This profoundly diminishes the value proposition of advertising with local cable systems.

There is a powerful and affordable solution, however, for small business owners to reach both the diminishing cable audience and the expanding number of cord-cutters.

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Topics television, small business, small business owner, television advertising, radio advertising, best way to advertise, pay-TV, cable TV, advertise on radio, small business advertising, radio commercials, satellite tv, cord-cutter

Drivers Hit The Road Taking Detroit Radio Along For The Ride

Jul 21, 2020 9:58:43 AM / by Larry Julius

Car radios came to Detroit in June of 1930. For just $120, about $1200 in present dollars, local drivers could install these early mobile devices into their Fords, Studebakers, Packards, and DeSotos, 

The first car radios were built by the Galvin Manufacturing Company of Chicago. They named their invention, and eventually their company, Motorola.

Today, more than 2.9 million car radios fill ears of area drivers with music, news, sports, and information. As a result, local radio reaches more consumers than all other media.

In a typical pre-COVID-19 week, according to Nielsen, 89% of adult consumers would tune-in to a Detroit radio station. This is significantly more than were reached by local TV, cable, social media, newspaper, or streaming media sites Pandora and Spotify.

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Topics small business, small business owner, radio advertising, best way to advertise, advertise on radio, in-car audio, vehicle traffic, small business marketing, small business advertising, radio commercials

Advertising On Detroit Radio: What Consumers Want To Hear

Jul 16, 2020 2:31:59 PM / by Larry Julius

If you were one of the 2.9 million adults who tuned-in to a Detroit radio station last week, then no doubt you heard multiple commercials that included phrases like 'troubling times', 'uncertain times', 'unprecedented times', 'new normal', and 'we're in this together'. 

In March, as the pandemic began to disrupt consumers' lives, using these phrases was a powerful way for Southeast Michigan small business owners to acknowledge the severity of the crisis and to exhibit empathy. But 120 days later, these words have become cliche and have lost potency.

A cliche, says the Oxford Dictionary, is "a phrase or opinion that is overused and betrays a lack of original thought." 

According to the Writing Center at The University of North Carolina, the dependence on cliches could create a harmful perception of a business that uses them. For instance, these overused phrases can make an advertiser's message seem boring. They can be perceived as vague. They can be interpreted to be a sign of laziness. They can also result in a lack of credibility. 

The words a Metro Detroit small business chooses for its advertising will have the most significant effect on sales. That's why eliminating cliches is critical.

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Topics small business, small business owner, radio advertising, advertise on radio, writing a commercial, commercial length, small business marketing, small business advertising, effective advertising, radio commercials, creative, scripts

Advertising In Detroit: Consumers Will Pay More For Sustainable

Jul 14, 2020 7:02:00 AM / by Larry Julius

This year, according to Nielsen, 3.5 million Metro Detroit consumers will spend $1.9 billion on eco-friendly goods and services. Sales for sustainable products have grown 20% since 2014, a trend expected to continue into 2021.

Tensie Whelan and Randi Kronthal-Sacco of the New York University Stern Center for Sustainable Business write in the Harvard Business Review, "Consumers are voting with their dollars against unsustainable brands. The legacy companies that will thrive are those that accept this shift and are willing to pivot.” 

For Southeast Michigan small business owners who are skeptical that sustainability affects purchase decisions, retail analyst Stacey Widlitz provided this advice, recently, in Forbes.

"Retailers only need to look to IBM's recent study, in association with the National Retail Federation, to understand just how fast consumer priorities are changing," says Ms. Widlitz. "Findings from the study revealed nearly 60% of consumers surveyed are willing to change their shopping habits to reduce environmental impact. For the nearly 80% of respondents who said sustainability is important to them over 70% would pay a premium of 35% on average."

To compete for a share of consumers' spending on green goods and services requires local small business owners to advertise.

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Topics small business, millennials, small business owner, radio advertising, retail, retailer, retail sales, retail store, advertise on radio, small business marketing, small business advertising, green products, sustainable, eco-friendly

Detroit Furniture Retailers Expect A Post-Pandemic Rebound

Jul 9, 2020 4:24:34 PM / by Larry Julius

Before the onset of COVID-19, more than 568,000 Metro Detroit households were planning to spend $1.2 billion on furniture, according to Nielsen. Unfortunately, many of those plans were put on pause as consumers sheltered in place to help slow the spread of the virus.

A recent study by Elevate | SmithGeiger suggests that the fortunes of home furnishing retailers, however, are about to improve.

According to the study, 32% of consumers who had been planning to buy furniture will do so within three months of the pandemic easing. Fifty percent will do so within six months. The numbers for mattress shoppers are even stronger.

To capture a significant share of the post-pandemic sales of furniture and mattress will require retailers to advertise. The most effective way to reach the customers who are ready to buy is on Detroit radio.

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Topics small business, small business owner, best way to advertise, retail, retailer, retail sales, retail store, small business marketing, mattress, small business advertising, furniture

Facebook Advertising: Why Detroit Business Owners May Be Pausing

Jul 3, 2020 8:45:05 AM / by Larry Julius

Following the lead of many national marketers, some Metro Detroit small business owners are considering canceling or, at minimum, pausing their advertising schedules with social media network Facebook and its co-owned photo-sharing platform, Instagram.

According to the New York Times, "more than 400 companies, from Coca-Cola and Adidas to Ford and Lego, have vowed to halt advertising on the social network, in a growing protest over how it handles hate speech and other harmful content".

With the pandemic figured in, Southeast Michigan business owners were expected to spend $199 million on Facebook and Instagram advertising in 2020. This is according to Borrell Associates, a firm that specializes in the collection and analysis of local marketing expenditures in every city across the United States. But these expenditures could shrink if the protests become louder.

Every type of Detroit business imaginable, including clothing stores, plumbers, HVAC repair, funeral homes, restaurants, dentists, and nonprofits, has come to realize how powerfully social media can contribute to their bottom lines.

Part of what makes Facebook and Instagram attractive to small business owners is the enormous reach these platforms have among consumers. Locally, the audience size for these two social media sites now rival Detroit radio, TV, cable, and newspaper outlets.

For small business owners considering a hiatus from social media advertising, there is a viable way to redirect these dollars into a different medium without losing the marketing equity or momentum built-up on Facebook.

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Topics small business, small business owner, radio advertising, best way to advertise, social media advertising, facebook advertising, facebook, instagram, social media, advertise on radio

Why Detroit Banks & Credit Unions Need To Advertise Now

Jun 30, 2020 7:35:14 AM / by Larry Julius

Based on statistics from the Bureau of Labor Statistics, before the COVID-19 crisis, Southeast Michigan households were putting more than $10.7 billion in the bank every year. 

Since February, however, Metro Detroit banks and credit unions noticed that customers' savings accounts were beginning to swell to record levels.

According to the Federal Reserve, for many years, the personal savings rate has hovered well below 10%.  The PSR is the percentage of personal disposable income that remains after taxes and all other spending.

In April of this year, the PSR hit an all-time high of 33%. The rate remained at stratospheric levels in May, as well. The previous record high was 17.3% in September of 1975 at the tail-end of a deep recession.

There are more than 3348 banks and credit unions in Michigan who would love to earn a large share of this infusion of new savings. To compete, though, requires advertising.  By almost any metric, the best way to reach new depositors is by advertising on Detroit radio.

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Topics small business, small business owner, radio advertising, best way to advertise, radio advetising, advertise on radio, banks, credit unions, certificates of deposit, savings accounts

Real Estate Advertising in Detroit: Starter Home Sales Are Thriving

Jun 25, 2020 4:26:08 PM / by Larry Julius

From Grosse Pointe to Livonia (and every point in between), Metro Detroit real estate agents see a robust, post-pandemic market shaping up. Home sales are being driven by record low-interest rates.

The average rate for a 30-year fixed rate in June is 3.17%, according to Freddie Mac. This is down from 3.99% June of last year. That difference could save a Southeast Michigan area home buyer close to $30,000 over the term of a loan.

Data from the Federal Reserve indicates that one of the fast-growing segments of the current real estate market is starter homes. Sales in May for these modest price houses have risen above pre-COVID-19 levels and have hit a three year high.

Feuling the starter home market is demand from millennials. This generation now comprises 37% of all home buyers, says the National Association of Realtors Research Group.

To claim a large share of the market for starter homes, local real estate agents will need to advertise to attract these buyers.  By almost any metric, advertising on Detroit radio is the best way to reach millennials planning to buy a house, condo, or co-op over the next year.

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Topics small business, small business owner, radio advertising, best way to advertise, mortgage, mortgage rates, home sellers, home buyers, real estate, advertise on radio, real estate agent

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