Last year, $2.6 billion in marketing was spent online to reach Southeast Michigan consumers, according to projections based on the 2021 IAB Internal Advertising Report.  This is 35% more than was spent during the prior year.

There is a correlation between the massive amount of money being spent to reach Detroit consumers online and the extraordinary amount of time that these consumers are connecting to the internet via websites and apps.

According to Nielsen, 47.2% of Detroit adults are spending 10-plus hours during an average week online. Furthermore, The Pew Research Center, a public opinion research company, reports that one-in-three consumers say they are online constantly. A 50% increase from 2015.  In all, 85% of consumers say they connect at least once daily.

To successfully market and advertise a Detroit business on the internet requires a full-scale understanding of precisely what online marketing is.  Spoiler alert, having a website or having a social media site is not enough.

Attention Southeast Michigan small business owners and retailers: nearly half of holiday shoppers are already spending money. According to the National Retail Federation, 49% of consumers will start their Christmas season shopping before Hallowe'en. 

Consumers plan to spend $997.73 on gifts, holiday items, and other non-gift purchases for themselves and their families this year, according to the annual survey released today by the NRF and Prosper Insights & Analytics.

In all, based on forecasts from Deloitte, the world's largest accounting firm, Detroit consumers are expected to spend between $17.7 and $18.1 billion during the holiday shopping period. This would be a 7-9% increase over 2020.

"We anticipate strong consumer spending for the upcoming holiday season. As vaccination rates rise and consumers are more comfortable being outside of the home, we are likely to see increased spending on services, including restaurants and travel, while spending on goods will continue to hold steady. A steady decline in the savings rate to pre-pandemic levels will support consumer spending and keep retail sales elevated this season," said Daniel Bachman, Deloitte's U.S. economic forecaster. "Further, e-commerce sales will continue to grow as consumers demonstrate an ongoing and steady movement toward buying online across all categories."

Detroit retailers are noticing that the opening bell for holiday shopping has rung earlier than ever for local shoppers.

Close to 95% of Detroit adults have access to the internet.  Ubiquitous technology such as computers, tablets, smartphones, and connected TVs allow Southeast Michigan consumers to go online whenever they choose, which, for some adults, is always.

The Pew Research Center, a public opinion research company, reports that one-in-three consumers say they are online constantly. A 50% increase from 2015.  In total, 85% of consumers say they connect at least one time every day.

So, how are Detroit consumers spending all this time connected to the internet?

According to Nielsen, streaming audio and video content, social networking, checking the weather, and banking are the top online activities for Detroit consumers each month.

According to Nielsen, 3.3 million adults in the Detroit area have access to the internet, equivalent to 94.4% of the population. On average, local consumers are spending 10.19 hours per week online.

Detroit millennials, the first generation that grew up in a digital world, spend considerably more time online. Nielsen reports that, on average, Detroit's 25-39-year-old consumers are clocking 12.65 hours connected to the internet.

So, how are Detroit consumers spending their time online?

According to Nielsen, streaming audio and video content, social networking, checking the weather, and banking are the top online activities for Detroit consumers each month.

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.

On August 20, 1920 at 8:15pm, the Detroit News, owner of radio station 8MK, began broadcasting. The broadcast originated from the second floor of the newspaper's headquarters on Lafayette Boulevard.

The historic programming that night began with station operator Frank Edwards declaring, "this is 8MK calling." This was followed by the playing of 78 rpm records on a borrowed phonograph. The first selections played were two of the most popular songs of the World War One era,  "Roses of Picardy" and "Annie Laurie".

The historic broadcast concluded with a salesman from the newspaper's advertising department playing "Taps".

For 100 years, Southeast Michigan small business owners have depended on local radio stations to successfully market their goods and services through depressions, recessions, wars, and natural disasters. Even now, during a pandemic, advertising on Detroit radio remains a dependable way to make cash registers ring.

Here are five facts every Detroit Small business owner needs to know about local radio in 2020.

Almost 93% of Southeast Michigan adults have access to the internet, according to Nielsen. Over 63% of these consumers spend more than five hours a week connected.

Nielsen reports that Metro Detroit consumers go online to stay connected to friends and family; research products and services; learn the latest news, and obtain directions to where they are going and know what the weather will be when they get there.  

Here are some of the many reasons why Detroit internet users go online each month

• Social Media: 75%
• Online Banking: 50%
• Weather: 47%
• Maps/Directions: 45%
• Product Reviews: 37%
• Current Events: 33%
• Sports Scores/News: 27%
• Restaurant Reviews:30%
• Job Search: 16%
• Real Estate: 14%

And, of course, there is shopping.  Over the past six months, according to Nielsen, 78% of Detroit area consumers shopped online for every imaginable product and service including, cars, golf clubs, office supplies, wedding rings, mattresses, tires, medicine, shoes, socks, and eyeglasses.

To reach local consumers while they are online, Southeast Michigan businesses will spend $992,000 for digital advertising in 2020, according to Borrell Associates.  Here is how the money is being spent:

Southeast Michigan shoppers are expected to spend a record $10.9 billion online in 2020, based on the most recent projections from eMarketer. This would represent year-over-year growth of 32.4%.

During the same period, according to eMarketer, receipts at brick-and-mortar stores have contracted by 3.2%.  Overall, excluding gas and auto sales, e-commerce will account for 20.6% of all retail sales this year.

The Coronavirus pandemic is credited with this seismic shift in shopping behavior as consumers continue to avoid stores and opt for online shopping.

“We’ve seen e-commerce accelerate in ways that didn’t seem possible last spring, given the extent of the economic crisis,” said Andrew Lipsman, eMarketer principal analyst at Insider Intelligence. “While much of the shift has been led by essential categories like grocery, there has been surprising strength in discretionary categories like consumer electronics and home furnishings that benefited from pandemic-driven lifestyle needs.”

Even before the onset of the pandemic, 78.4% of Detroit consumers had bought goods online over the prior six months, according to Nielsen research. Purchases included clothing, health & beauty products, travel reservations, books, furniture, and groceries.