The current high rate of inflation is tempering how much Delaware Valley business owners can spend on advertising.
According to the U.S. Census Bureau, there are approximately 230,00 small businesses in the Philadelphia area. There is one thing each of the owners of these companies has in common, whether they own a hardware store in Bucks County, a furniture store in Cherry Hill, or a restaurant in Bryn Mawr. They are all experiencing the negative consequences of inflation.
In a monthly survey conducted by the National Federation of Independent Business Owners (NFIB), inflation now ranks second as the single most important problem companies face. A year ago, inflation was barely an issue.
Inflation has not hampered the enthusiasm to spend among Philadelphia area consumers keeping retail sales hovering above pre-Covid levels. But, inflation is taking a dramatic toll on the amount of revenue business owners can keep.
According to the U.S. Chamber of Commerce, small business owners see inflation-fueled price increases in almost every cost of operation, including inventory, utilities, rent, and wages.
Because of these rising operational costs, Philadelphia business owners are looking to cut expenses where they can, including advertising expenditures. But, because there is still robust consumer demand for goods and services, these companies need to make sure that the amount they do invest in advertising has the best return possible.
By almost any marketing metric, advertising on Philadelphia radio provides the greatest return-on-investment (ROI) of any medium available to local business owners.