There are over 4.2 million adult consumers in the Philadelphia area. Collectively, in a typical year, these shoppers would generate $103.8 billion in retail sales. This money would be spent on cars, shoes, fast-food, entertainment, groceries, mattresses, adult beverages, haircuts, makeup, and an over-abundance of other of goods and services. Their money was being spent on both the essential and the frivolous. 

The way Philadelphia area consumers spend money changed radically in March as COVID-19 began to spread. Six months into the pandemic, shopping strategies are about to change again.

It started with panic buying. Consumers began ignoring prices and were paying what was ever necessary to ensure the safety, health, and comfort of their families.  According to Nielsen, this sudden spike in demand caused widespread price increases. To put it in perspective, retail prices shot-up in 64% of all product categories stocked in grocery stores.

Almost immediately, advertising messages from local retailers shifted from promises of low prices and convenience to product availability and shopper safety.

Based on new research from Nielsen, consumers' shopping strategies are beginning to shift again. This will require Delaware Valley small business owners and retailers to also change their advertising strategies, too.

New data from the US Census Bureau has optimistic news for Philadelphia area companies that sell business-to-business.

There are approximately 108,000 businesses in the Delaware Valley, according to the Census Bureau. Indeed, many of these businesses have suffered since the onset of the Coronavirus, especially in April.

Census information is now showing positive indicators that the fortunes of area companies are improving. This includes those with 500 or fewer employees. These small businesses account for 94% of all Philadelphia area firms.

During the week of April 26, 52% of Philadelphia area small businesses reported temporary closures.  By July 1, the number dropped to 21%

Also, during that same week, 73% of Philadelphia area small business owners were reporting decreases in revenue versus the prior week.  By August 22, that number fell by more than half.

In both June and July of this year, national data shows all retail and food services spending significantly outperformed the prior year by between two and three percent.

As the business climate improves in the Delaware Valley, the fortunes of B2B companies will accelerate as well. These include those businesses that sell office supplies, restaurant supplies, cleaning services, legal services, accounting services, transportation services, banking services, technology, and commercial real estate.

Philadelphia radio reaches more Delaware Valley adults every week than any other medium. During a typical seven-day period, according to Nielsen, 3.5 million local consumers tune-in to their favorite AM and FM stations. This is significantly more than those who watch broadcast television, subscribe to pay-TV, browse social media, read a newspaper, or stream music from Pandora and Spotify.

Radio's omnipresence in the life of Philadelphia consumers is remarkable considering today is the medium's 100th birthday.

Despite all of the media options available for small business owners to market their goods and services, advertising on Philadelphia radio is still the best way to reach local consumers.

Adult consumers are spending 741 minutes per day consuming electronic media, according to a new study by Nielsen.  This is 7.8% more time than they spent last year and 11.2% more than in 2018.

The typical daily media diet consists of radio, live TV, time-shifted TV, DVD/Blue-ray devices, game consoles, internet-connected devices, as well as internet via computers, smartphone apps, and tablet apps.

According to Nielsen, despite all of these media options, local radio reaches the most consumers every week.

During lockdown, Delaware Valley consumers have been postponing the purchase of major appliances.  Despite the pause in buying, however, local shoppers are still expected to spend $285 million this year on ovens, stoves, refrigerators, freezers, washing machines, dryers, and dishwashers.

Here's how appliance sales in the Philadelphia area will breakdown by category:

• Cooking: $77,400,000
• Refrigerator/Freezer: $71,900,000
• Laundry: $59,100,000
• Other: $77,000,000

Based on traditional buying patterns, at least 60% of all major appliance sales will occur between now and December.

To capture a larger share of all this spending will require local appliance dealers 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.”

The SBA goes on to say, “Advertising, if done correctly, can do wonders for your product sales, and you know what that means: more revenue and more success for your business”. 

By almost any measure, advertising on Philadelphia radio is the best choice for local appliance store owners.

Delaware Valley 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 Pennsylvania shuttered the state on March 17 to slow the spread of COVID-19, Philadelphia 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.

In 1922, three local retailers each put a Philadelphia radio station on the air.  These included John Wanamaker's WOO, Strawbridge & Clothier's WFI, and Gimbel Brothers' WIP. 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, flooding, and blizzards. By any metric, advertising on Philadelphia radio remains the most effective tactic a small business owner can use post-pandemic, as well.

More than 85% of Delaware Valley households own at least one vehicle. 

Pre-pandemic, 76% of workers spent, on average, 66 minutes every weekday in these cars commuting to-and-from their jobs.  

On their way to work, many of these drivers would contribute to the Philadelphia area's $103.4 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 17, when the Governor of Pennsylvania 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 Delaware Valley, roads are filling up again.

Delaware Valley 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 Doylestown to Cherry Hill 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, Delaware Valley small business owners need to make sure every dollar spent on advertising produces solid returns.  By most marketing metrics, advertising on Philadelphia radio could prove to be the best option.

Delaware Valley 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 Philadelphia area 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 Philadelphia radio.

There have been more recessions in America than presidents, 47 vs. 45.  Many economists believe number 48 is looming.  

The textbook definition of a recession is a period of declining economic performance across an entire economy, frequently measured as two consecutive quarters. In other words: it's a time when most Delaware Valley small business owners sell fewer of their goods and services.

There is one thing a recession is not.  It is not a time for Philadelphia area small business owners to stop advertising.

One of the greatest marketers of all time, Henry Ford, once said, "The man who stops advertising to save money is like the man who stops the clock to save time."

What you had for breakfast this morning may prove Mr. Ford's observation.