Retail spending in the Fayetteville area is expected to reach $5.9 billion this year, a 13.5% increase versus 2020. These estimates are based on a revised forecast from the National Retail Federation (NRF).

Since 1939, when WFNC-AM signed on as the first station in Fayetteville, local business owners have depended on radio advertising to help market their goods and services to North Carolina consumers.  But has the Coronavirus pandemic altered the medium's ability to deliver customers to ring up sales for local retailers?

Two critical marketing metrics indicate that advertising on Fayetteville radio remains the best way for a small business to advertise.

The first measurement is reach. This is the number of different consumers who are exposed to an advertising campaign.

The second measure is return-on-investment (ROI). This is the amount of sales a business can expect for every one dollar invested in advertising.

Based on these metrics, here is how advertising on Fayetteville radio measures up to other options available to local small business owners.

Earlier this year, based on projections from The National Retail Federation, Fayetteville, North Carolina area consumers were expected to spend more than $5.9 billion at retail this year, a 6.5% increase versus 2020. New data, however, indicates spending will be remarkably higher.

The NRF revised its data this month, and now expects annual growth of 10.5% to 13.5%. Based on these revisions, the Fayetteville area retail economy could now top $6.2 billion. Excellent news for North Carolina small business owners.

“The economy and consumer spending have proven to be much more resilient than initially forecasted,” NRF President and CEO Matthew Shay said. “The combination of vaccine distribution, fiscal stimulus, and private-sector ingenuity have put millions of Americans back to work. While there are downside risks related to worker shortages, an overheating economy, tax increases and over-regulation, overall households are healthier, and consumers are demonstrating their ability and willingness to spend. The pandemic was a reminder how essential small, mid-size and large retailers are to the everyday lives of Americans in communities nationwide.”

To put in historical context for Fayetteville small business owners, Mr. Klenhenz noted that he anticipates the fastest growth the U.S. has experienced since 1984. The reopening of the economy has accelerated much faster than most had believed possible a year ago.

To capture the largest possible share of spending growth, local retailers will need to advertise. By the most crucial marketing metrics, the best best way to reach area consumers is by advertising on Fayetteville radio.

In 2021, according to Nielsen, 19,543 Fayetteville, North Carolina area homeowners are expected to spend $210 million on kitchen and bathroom remodeling. This would be an increase of 16.8% increase over last year. Sales estimates are based on data from The National Kitchen & Bath Association (NKBA).

Because of the ongoing pandemic, 202,000 homeowners from Lumberton to Spring Lake are in the process of reassessing their living spaces.

According to the NKBA, homeowners cite the kitchen and bath areas as two times more important than other spaces within the home, and the kitchen particularly gained status throughout the COVID-19 pandemic, with 70% of homeowners considering it extremely important compared to 64% before the crisis.

“After such a strong year for home remodeling in 2020, some wondered if we were approaching a home improvement spending ‘cliff.’ We’re pleased to say that’s not what the kitchen and bath market is expecting in 2021,” said Bill Darcy, NKBA CEO.

“Last year, homeowners started the work of improving their living spaces with DIY projects. And this year, with early distribution of the vaccine and other measures to reduce the public health impact of the virus, we expect to see continued renovations and more projects requiring our members.”

A surge in pet adoptions and sales during the pandemic has increased the number of pet owners in the Fayetteville, North Carolina area to 173,878, according to Nielsen.

As a result, the amount of money that will be spent in the Fayetteville area during 2021 on domestic dogs, cats, birds, ferrets, and other cuddly creatures will achieve a record-high $150.9 million. These figures are based on recent forecasts from The American Pet Products Association (APPA),

“We have reached a critical milestone in 2020, generating $103.6 billion in sales [in the U.S.],” said Steve King, President, and CEO of APPA. “We are bullish for the coming year, projecting growth of 5.8% - well above the historical average of 3 to 4%."

Fayetteville pet owners will be spending in four ways:

1. Food & Treats which includes everything from canned and bagged food to biscuits and chewies.
2. Veterinary Care and Product Sales which includes routine veterinary care, surgical procedures, and sales of pharmaceuticals and other products through veterinary clinics
3. Supplies, Live Animals, and Over-The-Counter Medications which, in addition to dogs and cats. includes fish, birds, small animals, and reptiles. This also includes cages, food and water bowls, as well as leashes and collars.  OTC includes medications for allergy relief, gastric distress, and oral hygiene.
4. Other includes services such as boarding, grooming, and pet sitting.

To capture a significant share of the local pet economy, local business owners who provide these four types of goods and services will need to advertise.  By almost any marketing metric, the best way to reach pet owners is by advertising on Fayetteville radio.

The number of job openings in the Fayetteville area has exceeded pre-pandemic levels, according to the Bureau of Labor Statistics.  Businesses of all sizes are adding employees in a big way, according to the ADP Research Institute, but still, large numbers of positions remain unfilled.

With the North Carolina unemployment rate still at 5.2%, Fayetteville business owners wonder why they are having difficulty attracting applicants for open positions.

According to a recent article posted in The Economist, there are two major reasons why many sidelined workers aren't anxious to come to work. The first is fear.

Every week, according to Nielsen, 92% of adult consumers tune in to a Fayetteville, North Carolina radio station. This is significantly more people than watch broadcast TV, local cable, or video streaming services. It's more than use social media sites like Facebook or Instagram.  And, it's more than read local newspapers.

Fayetteville radio is also the medium with the greatest reach among millennials, a generation that not only has embraced an abundance of online media options but also accounts for nearly a third of all local consumer spending.

This reach advantage is a crucial reason why local small business owners depend on Fayetteville radio to market their goods and services.

A study released this week by Edison Research and NPR discovered that their six distinct types of radio listeners. The study also examines how each group of listeners engages with both programming and advertising.  These distinctions are important for Fayetteville small business owners to understand.

The six listener categories as described in the study are:

Now is a crucial time for Fayetteville small business owners to advertise.  

According to the Conference Board, consumer confidence has surged to 110, the highest it has been since the onset of the pandemic last March.  The index has bounced back from a low of 89.6 in February. 

Moving forward, North Carolina business owners can expect buyer optimism to remind high.

“The recovery in consumer confidence is set to continue in the coming months, buoyed by the combination of improving health conditions and wider vaccine distribution,” said Lydia Boussour, lead U.S. economist at Oxford Economics. “This should support hearty consumer spending and pave the way for a mini-boom in economic activity this spring and summer.”

As Fayetteville consumers gain confidence, they are expected to unleash the record $1.7-billion in personal savings amassed during the pandemic. This number is based on figures reported by Barron's in November. 

This combination of consumer confidence and the cache of cash-on-hand has led the National Retail Federation (NRF) to forecast a 7% increase in retail spending in 2021 versus last year.

To claim a significant share of the expected spending tsunami, Fayetteville business owners plan to boost advertising investments this year.

According to Borrell Associates, a company that tracks advertising trends across the country, Fayetteville business owners are expected to spend $123-million to advertise the goods and services they sell. This represents a 5.0% increase versus last year.

Fayetteville, North Carolina area residents will begin receiving economic stimulus checks  from the Internal Revenue Service as early as today.  In all, local consumers will receive more than $550 million in payments.

This infusion of cash into the Fayetteville economy was authorized by Congress last week in the American Rescue Plan legislation. 

The stimulus relief legislation calls for a one-time payment of $1,400 to single adults. Married couples who filed jointly will receive $2,800 total ($1,400 apiece). Families will get an additional $1,400 for each eligible dependent regardless of age. A family of four could get $5,600 in total payments. Like the second round of stimulus payments, the third round specifically prohibits payments to anyone who died before January 1, 2020.

Many of the stimulus dollars will end up in the wallets of 104,000 Fayetteville area homeowners. Based on research from Modernize, a leader in the home improvement and home services industry, 57% of these consumers are planning to spend all or part of their checks on home improvement projects.

Fayetteville, North Carolina area consumers are expected to spend upward of $5.9-billion at retail in 2021. This would be, at minimum, a 6.5% jump over 2020. The forecast is based on newly released estimates by the National Retail Federation.

“Despite the continuing health and economic challenges COVID-19 presents, we are very optimistic that healthy consumer fundamentals, pent-up demand and widespread distribution of the vaccine will generate increased economic growth, retail sales and consumer spending,” NRF President and CEO Matthew Shay said.

“From the outset of the pandemic, retailers have gone above and beyond even the most conservative safety guidelines to protect and serve their associates and consumers alike."

To capture the largest possible share of spending growth, local retailers will need to advertise. By the most crucial marketing metrics, the best best way to reach consumers is by advertising on Fayetteville radio.

There are 24 radio stations serving Fayetteville, North Carolina. Each provides a unique format of news, sports, music, entertainment, and inspiration. Some stations broadcast in English. Others serve Spanish speakers. Some stations cater to millennials. Others appeal to Baby Boomers.  No doubt, there is a local radio station that fulfills the preferences of every listener.

Each week, according to Nielsen, 332,122 adults tune-in to their favorite Fayetteville radio stations. This is more people than watch local TV, cable, or streaming channels. This is more than use Facebook and Instagram. This is more than read newspapers or connect to Pandora and Spotify. 

Despite the abundance of Fayetteville radio stations to choose between, Nielsen reports that, on average, adult consumers only listen to 2.2 each week.  So, which stations do local consumers choose?

How important is Twitter to Fayetteville area consumers? Yesterday, for instance, the social media platform was mentioned in at least ten articles published by the Fayetteville Observer yesterday.  Almost every local TV newscast included references to the site as well.

Twitter's outsized presence in the news, however, is enormously disproportional to the importance of the micro-blogging app in the life of Fayetteville's consumers.

According to Nielsen, only about 16% of adults in Fayetteville use Twitter during the course of a month. This is minuscule compared to other social media platforms like Instagram and Facebook.

Twitter offers 20 different options that North Carolina small business owners can utilize to market their goods and services to local consumers.  The platform's minimal reach, however, can hamper the success of any advertising campaign.

The first radio station in Fayetteville, WFNC, was granted a license from the Federal Radio Commission in 1939. The owner was Wall Christian Ewing who, at the time, also owned a wholesale fertilizer business in the city. He had also been the Chairman of the Cumberland County Democratic Party. and had spent time serving in the North Carolina legislature.

For almost 80 years, North Carolina business owners have depended on local radio stations to successfully market their goods and services through depressions, recessions, wars, and natural disasters. Even now, during a pandemic, advertising on Fayetteville radio remains a dependable way to make cash registers ring.

Here are five facts every Fayetteville small business owner needs to know about local radio in 2020.

Ninety-four percent of Fayetteville adults have access to the internet, according to Nielsen. Almost 60% of these consumers spend more than five hours a week connected.

Nielsen reports that Fayetteville consumers go online to stay connected to friends and family; research products and services; learn the latest news, and obtain directions to where they are going and know what the weather will be when they get there.  

Here are some of the many reasons why Fayetteville internet users go online each month

• Social Media: 72%
• Weather: 46%
• Maps/Directions: 43%
• Online Banking: 35%
• Product Reviews: 29%
• Sports Scores/News: 22%
• Current Events: 22%
• Restaurant Reviews:19%
• Job Search: 17%
• Real Estate: 12%

And, of course, there is shopping.  Over the past three months, according to Nielsen, 71.8% of Fayetteville consumers shopped online for every imaginable product and service including, cars, golf clubs, office supplies, wedding rings, mattresses, tires, medicine, shoes, socks, and eyeglasses.

To reach local consumers while they are online, Fayetteville businesses will spend $65 million for digital advertising in 2020, according to Borrell Associates.  Here is how the money is being spent:

There are 66,000 adults in the Fayetteville area 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 North Carolina locked down 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 Fayetteville radio.