Fayetteville retailers spend a considerable amount of time and money marketing their small businesses on social media.  Is this effort paying off?

Each month, according to Nielsen, 219,000 Fayetteville adults use Facebook, Instagram, or Twitter. This equates to 62.9% of consumers.  This reach is rather anemic compared to local radio and TV, which attracts considerably more users in a single week than these social media platforms do over 30 days.

Among local millennials, the monthly reach of Facebook, Instagram, and Twitter is eclipsed by the weekly reach of Fayetteville radio.

The number of consumers reached by an advertising campaign, according to Nielsen, is the media consideration that has the most significant effect on increasing sales. 

Retailers in the Fayetteville area rang-up $8,527,802,000 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 $349 million 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 Fayetteville 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.”  

There is alarming news for small business owners who advertise on Fayetteville area television stations: broadcast TV viewers are disappearing at a rapid pace.

Nielsen reports that halfway through the first quarter of this year, the number of people using television has dropped 7.5%. This compares to -6.3% in the fourth quarter of 2019, and -7.0% a year ago,

"If the trend holds, it would represent the largest quarterly decline for TV viewership in our data set," explains UBS analyst John C. Hodulikadding. "Trends have worsened across most age demos with persons 25-34 now falling -17% vs. low double-digit declines throughout 2019. The persons 55+ demo continues to trend down -2%, similar to 2019 (the first year of declining ratings for the demo)."

Radio listenership, on the other hand, has remained quite stable, according to Nielsen. Since 1970, the medium has reached more than 9-in-10 consumers every week.

Fayetteville area consumers are expected to spend $8.5 billion at retail this year, according to Nielsen. This means that every household, on average, will be spending $48,564.

To capture a larger share of these dollars, small business owners in Clark and Robeson counties need to know the answer to two questions.

The first question is, where is this enormous amount of cash being spent?  The list below details the answer.

Suppose you woke up one morning and found a 100-year-old machine in your basement. You soon discovered that every time you put a dime in the machine, one dollar came out.  How many dimes would you drop in that machine?

Good news for Fayetteville small business owners: such a machine exists and you probably have one in your car, at work, at home, even on your phone. It's called local radio.

Over the past few years, Nielsen has conducted over 20 studies to determine what type of return-on-investment (ROI) a business can expect from radio advertising.  Although the results varied by industry, the average company generated $100 in sales for ever $10 invested.  Turning dimes into dollars.

Here's a quiz for Fayetteville small business owners:

Which of these online sites reach more adults each month than traditional AM/FM radio: Google? Netflix? ESPN? YouTube? Twitter Facebook?

The answer may be a surprise. Radio reaches more adult consumers every month than all websites and apps.  This is critical information for Fayetteville business owners to know so as to be able to choose the best way to advertise their goods and services.

The number one media characteristic that contributes to the success of an advertising campaign is reach. This is a measure of how many different people are exposed to an advertiser's message.

Advertising on Fayetteville radio stations is the best way for North Carolina small business owners to reach the lucrative, local mother market.  Here's why.

Fayetteville consumers will spend $7.1 billion over the next 12 months. Forbes magazine reports that it is moms who control 85% of all household purchases. In Cumberland and Robeson Counties there are more than 87,000 women with children under the age of 17 at home.

Fayetteville small business owners need to pay special attention to these mothers and their wallets.

There are two reasons why advertising on Fayetteville radio station is more effective than advertising on TV.

The first reason is reach.  In a study conducted by Nielsen, the number of consumers who are exposed to a commercial contributes profoundly to the number of sales it will create.  This is discussed in depth in the free eBook, "Seven Steps For Advertising Successfully In Fayetteville."

In Fayetteville, among all media, radio offers local advertisers the biggest reach.

The second reason why radio advertising is so powerful has been revealed in a new study Mindshare, an advertising agency that buys media for some of the most successful companies in the world including General Mills, Nestlé, Domino's, IBM, Rolex, and John Deere.

No! Satellite radio has had no effect on the number of people who tune-in to Fayetteville radio stations each.  For that matter, Pandora and Spotify have not affected local radio listening either.

The fact is, AM/FM radio reaches more consumers each week in Fayetteville than all other advertising media. Satellite, it turns out, has barely been a blip on listeners' radar.

Last week, for example, 93% of Fayetteville adult-consumers tuned-in to a local station vs. the 16% that connected to Sirius/XM, the only remaining provider of satellite radio service.

There is historical significance to the 93% reach number mentioned above.

Allison Rogers landed the job of Marketing Manager two years ago at Fayetteville Regional Airport. The airport, built in 1949, was originally known as Grannis Field. Today, most people refer to it by its three-letter designation, FAY.

As, part of her job, Ms. Rogers is responsible for convincing her target consumers that FAY offers competitive ticket prices and is more convenient than using one of North Carolina’s larger airports. Her target flyers include area residents planning vacation travel; Fayetteville small business owners traveling for their jobs; and members of the Ft. Bragg community traveling for non-military reasons.

Advertising on Fayetteville radio plays a major role in the marketing efforts to attract these target travelers to the concourses of FAY. “Of all the media we use, advertising on Fayetteville radio provides us with the affordable reach and frequency we need for our marketing to be effective,” says Ms. Rogers.