According to the latest University of Michigan's Survey of Consumers, sentiment about current economic conditions remains near the all-time low. Concerns about volatile gas prices, rampant inflation, and a looming recession have driven the survey's index down 37% versus a year ago.
Despite these dim consumer sentiments, the U.S. Bureau of Economic Analysis's July report shows that real personal consumption expenditures are pacing well above pre-Covid levels. According to Morgan Stanley research, consumers' ability to spend is being driven, in part, by a massive amount of excess savings accumulated over the course of the pandemic.
Earlier this year, based on per capita spending data from the National Retail Federation (NRF). Philadelphia consumers were forecast to spend nearly $82 billion at retail this year. The current level of spending suggests that shoppers are on track to hit that number.
Of course, for local business owners to successfully compete for a share of this record spending requires marketing. By most key marketing metrics, the best way to advertise is on Philadelphia radio. This is especially true among business owners who must limit the number of marketing channels that can be used because of economic restraints.
Of all media, advertising on the radio provides the greatest return on investment.
From April through July of 2021, Neilsen was able to measure the sales results of a radio advertising campaign conducted by a major retailer. The study utilized portable people meter technology to segment consumers into two discrete categories: those who were exposed to the retailer's advertising campaign and those who were not.
Nielsen was then able to match the consumers in each segment to their credit/debit or shopper card purchase behavior. Consequently, the study was able to measure decisively how sales were affected by the retailer's advertising campaign.
Here are the key takeaways from the Neilsen study:
Most importantly, the Nielsen study revealed that every $1000 that the retailer invested in the radio advertising campaign returned $13,000 in sales. A 13-time ROI.
Philadelphia retailers should know that these findings support 22 other Nielsen studies that indicate, on average, that advertising on local radio delivers a 10-time return on investment.
Radio's ROI is partly driven by the medium's dominant reach among local consumers.
Every week, according to Nielsen, 3.7 million adults are reached by Philadelphia radio stations. This is more consumers than are available via social media, local TV, local cable, local newspapers, streaming audio, and streaming video.
The number of consumers reached is critical to the success of an advertising campaign.
According to a Nielsen study, after the actual content of the commercial message itself, reach is the most potent advertising element that can drive sales. Reach is more important than brand, recency, or even context. Philadelphia radio provides local business owners with the most significant reach among consumers.
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