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.

There are about 3,500,000 registered passenger vehicles in the Philadelphia area. Some are cars. Some are trucks. Some are Hondas. Some are Fords. Some are Teslas. Some have four doors. Some have two. Some go fast. Some go slow. Some guzzle gas. Some sip. Some are red. Some are blue.

The one thing that almost every car and truck in the Philadelphia area have in common, though, is the AM/FM radio smack-dab in the middle of the dashboard.

The first car radio went on sale in 1930. It was an invention of the Galvin Manufacturing Company. The company named the radio 'Motorola,' and its cost was $130, around $2000 in today's dollars. By 1935, more than three million car radios had been installed.

Today, AM/FM radio is part of every car and truck on Philadelphia area roads. In addition to the radio, many of these vehicles also provide drivers with other audio options, including a CD player, Sirius/XM, Pandora, Spotify, podcasts, and easy access to personal MP3 collections.

It is fair, then, for small business owners who depend on Philadelphia radio to advertise their goods and services to ask: with all the audio options on today's dashboards, is anyone listening to local AM/FM radio in the car anymore?

When WGL-AM became Philadelphia's first radio station in 1922, there was no Facebook, no Xfinity, no Sirius/XM, no Netflix, and no podcasts. It would be 19 years before there was even a local TV station.  Consequently, it was pretty easy for radio to become the number one reach medium among local consumers.

Over the past 99 years, Philadelphia business owners have come to depend on the mammoth reach of radio among local shoppers to successfully market the goods and services they sell. Advertising on Philadelphia radio has helped Delaware Valley companies to survive and thrive during world wars, natural disasters, recessions, depressions, and even a pandemic.

Heading into 2022, local consumers have more media choices than ever before. But, despite the overabundance of social media, video streaming, audio streaming, cable, and other technological marvels, Philadelphia radio is still the most used advertising medium.

Philadelphia consumers are expected to spend nearly 7% more at retail in 2021 than in 2020. This forecast is based on recently released data from the National Retail Federation.

To lay claim to a significant share of growing consumer spending, Delaware Valley retailers will need to advertise.

“Think you have a great product?” asks the US Small Administration. “Unfortunately, no one’s going to know about it unless you advertise.”   

“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."

Scientifically speaking, the fastest way a marketing message can reach the areas of a Philadelphia consumer's brain responsible for purchase decisions is through the ear.  That's why audio advertising can be far more potent than visual messaging.

During July, 3.4 million adult listeners spent 2 hours per day listening to their favorite Philadelphia radio stations, according to Nielsen. Despite an avalanche of pandemic induced disruptions, the daily time spent with radio is down by only by one-quarter-hour from a year ago.

Some advertising experts had predicted that as consumers spent more time at home because of COVID-19 concerns, the hours devoted to radio listening would dramatically decrease. That, however, was not the case.

In July of 2019, according to Nielsen, 30.7% of radio listening in the Delaware Valley occurred at home. During July of this year, in-home listening jumped to 41.5%. Despite the reduction in out-of-home activities, though, consumers still spent nearly the same amount of time listening to Philadelphia radio.

Every week, 3,830,493 adult consumers tune-in to a Philadelphia radio station. That is way more than are reached by other media, including local television, newspaper, social media, or streaming audio sites like Pandora and Spotify.

A more significant number for thousands of Delaware Valley small business owners who advertise on Philadelphia radio is how many of these listeners stick around when their commercials come on.

A 2011 Nielsen study discovered that, on average, 93% of listeners stayed with the radio station they are tuned-to when the commercials come on. That number amazed many advertisers at the time who believed that audiences were far more likely to defect when the music stopped.

A lot has changed since 2011. Philadelphia area consumers have many more media options and can instantly connect to each  with a button-push, mouse-click, screen-tap, or voice command. With all of these choices, do radio audiences still stay tuned during commercial breaks?

The chaos created in the Delaware Valley by the onset of Coronavirus has been a disruptive force among consumers. 

Work routines, buying habits, family life, and media consumption have all been palpably affected. These are all factors that need to be considered by small business owners who continue to advertise their goods and services during the crisis.

Before the current chaos, advertising on Philadelphia radio, by any metric, was the best way a local small business could advertise.

For instance, pre-Coronavirus, 3.8 million adult consumers tuned-in to a Philadelphia radio station every week. This is significantly more than watched local TV, read a newspaper, accessed social media, or streamed audio from sites like Pandora and Spotify.

New research released from Nielsen indicates that amidst the current crisis, listening to local radio remains little changed. This is great news for those Delaware Valley small business owners who are depending on advertising for their long-term survival.

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.

Retailers in the Delaware Valley rang-up $103,468,991,000 in retail sales last year, according to Nielsen. But wait. It's about to get better.

The National Retail Federation forecasts that in 2020, sales will increase by as much as 4.1%. This will create another $4.2 billion for local small business owners.  

“The economy is growing at a more modest pace, but the underlying economic fundamentals remain in place and are positive,” stated NRF chief economist Jack Kleinhenz. “Consumers remain upbeat and have the confidence to spend, and the steady wage growth that has come with the strong job market is fueling their spending. The state of the consumer is very healthy.

To claim a fair share of this enlarged pool of spending will require Philadelphia area small business owners 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.”  

How quickly the millennials have grown up.

According to Nielsen, half of all Delaware Valley parents with children under the age of 18 are millennials.  

From the time their kids are born until they reach they are 17, these young parents will  spend, on average, $233,000 per child. This does not include the cost of college.

Currently, there are 1,162,996 children under the age of 18 living in the Philadelphia area. That makes the local parenting economy worth upwards of $270 billion. These dollars are being spent, among other things, on diapers, daycare, transportation, toys, education, electronics, clothing, and health care.

For Delaware Valley small business owners interested in competing for a substantial portion of this multi-billion dollar pool of parental cash, they must advertise to millennial moms and dads. By almost any measurement, advertising on Philadelphia radio is the best way to reach this audience.