There are 230,328 small businesses in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area, according to the U.S. Census Bureau. Almost every one of these businesses is competing for a portion of the $108 billion of local retail spending expected to occur in 2023.*

To capture the largest share of this giant pool of consumer cash, Philadelphia small business owners will need to consider advertising.

"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. Advertising, if done correctly, can do wonders for your sales., and you know what that means: more revenue and more success for your company."

One of the best ways to advertise in Philadelphia may be on local radio, a fact not lost on the world's largest advertiser, Proctor & Gamble. Last year, P&G upped spending on the radio by 43% to $235 million, according to Vivvix (formerly Kantar Media), led by a big jump in local radio.

Every week, according to Nielsen, Philadelphia radio reaches 3,740,743 adults. This is more consumers than use any other medium, including local TV, local cable, streaming video, social media, online audio, and newspapers.

Reach, though, is only one component used to calculate ratings.  The other metric that contributes to the rating formula is the time spent using each medium. So, although for the past 10 years, AM/FM radio's reach has been significantly higher than the reach of local TV, consumers spent considerably more time watching TV. As a result of the math, TV has enjoyed higher ratings than radio.

For the first time, however, AM/FM radio ratings have exceeded local TV ratings by three percent among the key advertising demographic of 18-49-year-olds, according to Nielsen's Total Audience Data for the third quarter of 2023.

In the Philadelphia area, there are 2,194,494 18-49-year-olds, the majority of whom are millennials, a generation that now accounts for nearly one-third of all retail spending.

Philadelphia area business owners have an abundance of options for marketing their goods and services to local consumers. New research from Nielsen, however, indicates that advertising on Philadelphia radio is still the best way to reach local shoppers.

Every week, according to Nielsen, Philadelphia radio reaches 3.7 million adults. This is significantly more than are reached by social media, local TV stations and cable systems, newspapers, streaming video and audio, and podcasts.

In addition to listening to their favorite Philadelphia radio stations over the air, Nielsen reports that 942,855 adults also listen to local stations online every month.

As a matter of fact, according to a study conducted by Edison Research during the third quarter of 2022, among Adults 25-54, 17% of all time spent listening to local AM/FM stations occurs online. This share of online listening has nearly doubled since 2016.

Delaware Valley business owners have depended on Philadelphia radio to market their goods and services since WGL, the city's first radio station, went on air in 1922. Despite the advent of new media and technologies since then, advertising on local radio stations is still the best way for the area's 230,328 small business owners to create and maintain customers.

Here are five facts every business owner should know about advertising on Philadelphia radio in 2022.

Local business owners have been advertising on Philadelphia radio since WGL first signed-on in 1922.  But, back then, there were only two options for reaching a mass audience: newspapers and radio.

Today, though, advertisers have an over-abundance of marketing options both over-the-air and online. But every week, according to Nielsen, 3.7 million adults listen to a Philadelphia radio station, giving the 101-year-old medium, by far, the biggest reach amongst local consumers.

A new report released last week by Nielsen underscores AM/FM radio's durable reach among all media.

To ensure success, every Delaware Valley business owner needs to advertise.

"Think you have a great product?" asks the US 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.”

There are dozens of ways for local small business owners to advertise. By most metrics, the best way to advertise is on Philadelphia radio. These measures of effectiveness, however, are often obscured by the glimmer and glitz of newer technologies. 

To help reduce the glare that often blinds business owners to the potency of advertising on Philadelphia radio, here are the top five things many local business owners get wrong.

Radio came to Philadelphia on February 8, 1922, when The Bureau of Navigation, Radio Services Division, of the United States Department of Commerce granted a license to station WGL. This station was the 42nd to be licensed in the county. 

Little is known about WGL except it was owned by Thomas Howlett who broadcast from home at 2303 North Broad Street near Temple University.

From that day, many predicted radio's success would succumb to advances from new technologies. In 1927, the challenge came from talking movies. In the 1940s, the predators were 13-inch TV sets. In the 1970s, it was 8-track and cassette tapes. In the past 20 years, there was a multi-flank attack from iPods, Zunes, YouTube, Sirius, XM, Pandora, Spotify,

So far, all of these challengers have failed. Not even a pandemic has been able to remove radio as a vital force in the life of Delaware Valley consumers.

Every week, according to Nielsen, more adults tune-in to Philadelphia radio than watch TV or cable. Use social media platforms like Facebook or Instagram. Read newspapers. Or, stream music from Pandora or Spotify.

There are 1.5 million adults in the Delaware Valley who have earned a four-year college or postgraduate degree, according to research from Nielsen. A study from the Federal Reserve indicates that these educated consumers have been least affected by the economic consequences of the pandemic.

"While the labor market disruptions have affected workers in a wide set of industries and occupations, those without a college degree have experienced the most severe impact," say Mary C. Daly, Shelby R. Buckman, and Lily M. Seitelman authors of The Unequal Impact of COVID-19 in the Economic Letter published by the Federal Reserve of San Francisco.

Although the unemployment rate increased among consumers of every education level in late March when the Governor of Pennsylvania lockdown the state to slow the spread of the Coronavirus, the smallest increase was among those with bachelor or postgraduate degrees, according to the Bureau of Labor Statistics.

Seven months later, job recovery among those with college degrees is closer to pre-pandemic levels than consumers with lower levels of educational attainment.

Many small business owners have seen the correlation between advertising and survival during the economic crisis inflicted by the pandemic.  With precious few dollars to invest, it is crucial that every advertisement reaches consumers who have disposable income to buy. Right now, the most likely spenders are customers with college degrees.

By key advertising metrics, the best way to reach consumers with higher education is on Philadelphia radio.

There is positive news for the  230,000 small businesses in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro area.  A majority of consumers say they are ready to start shopping again.

A lifestyle survey just released from Nielsen indicates 53% of Americans believe that despite the continuing pandemic, life is beginning to normalize, and they are likely to resume typical activities.  Nielsen refers to this majority as "Ready-To-Go".

According to the survey, Ready-To-Go consumers now perceive less risk, feel safer, and believe their cities are emerging from crisis.

The key takeaway for Delaware Valley small business owners is that Ready-To-Go consumers are significantly more likely to start shopping within 30 days than the total population.  These buyers, according to Nielsen, are looking to spend on home improvement, professional services, auto parts/repair, shopping, food & dining, and travel.

To capture a meaningful share of the money Ready-To-Go consumers will be spending requires local small business owners to advertise.  By almost every metric, advertising on Philadelphia radio is the best advertising option.

There are approximately 862,000 households in the Delaware Valley with existing mortgages, according to the US Census Bureau, American Housing Survey. The median amount owed on these homes is $150,000.

Yesterday, there was extraordinary news for many of these borrowers and for Philadelphia area banks, credit unions, and mortgage companies

According to The Federal Home Loan Mortgage Corporation (Freddie Mac), mortgage rates have hit an all-time low of 2.86%.