The current high rate of inflation is tempering how much Fayetteville, North Carolina business owners can spend on advertising.

According to the U.S. Census Bureau, there are approximately 8,700 small businesses in the Fayetteville area. There is one thing each of the owners of these companies has in common, whether they own a hardware store in Dunn, a furniture store in Lumberton, or a restaurant in Hope Mills. They are all experiencing the negative consequences of inflation.

In a monthly survey conducted by the National Federation of Independent Business Owners (NFIB), inflation now ranks second as the single most important problem companies face. A year ago, inflation was barely an issue.

Inflation has not hampered the enthusiasm to spend among Fayetteville area consumers keeping retail sales hovering above pre-Covid levels. But, inflation is taking a dramatic toll on the amount of revenue business owners can keep.

According to the U.S. Chamber of Commerce, small business owners see inflation-fueled price increases in almost every cost of operation, including inventory, utilities, rent, and wages.

Because of these rising operational costs, Fayetteville business owners are looking to cut expenses where they can, including advertising expenditures. But, because there is still robust consumer demand for goods and services, these companies need to make sure that the amount they do invest in advertising has the best return possible.

By almost any marketing metric, advertising on Fayetteville radio provides the greatest return-on-investment (ROI) of any medium available to local business owners.

Attention Fayetteville, North Carolina small business owners and retailers: nearly half of holiday shoppers are already spending money. According to the National Retail Federation, 49% of consumers will start their Christmas season shopping before Hallowe'en. 

Consumers plan to spend $997.73 on gifts, holiday items, and other non-gift purchases for themselves and their families this year, according to the annual survey released today by the NRF and Prosper Insights & Analytics.

In all, based on forecasts from Deloitte, the world's largest accounting firm, Fayetteville consumers are expected to spend between $1.7 and $1.8 billion during the holiday shopping period. This would be a 7-9% increase over 2020.

"We anticipate strong consumer spending for the upcoming holiday season. As vaccination rates rise and consumers are more comfortable being outside of the home, we are likely to see increased spending on services, including restaurants and travel, while spending on goods will continue to hold steady. A steady decline in the savings rate to pre-pandemic levels will support consumer spending and keep retail sales elevated this season," said Daniel Bachman, Deloitte's U.S. economic forecaster. "Further, e-commerce sales will continue to grow as consumers demonstrate an ongoing and steady movement toward buying online across all categories."

Fayetteville retailers are noticing that the opening bell for holiday shopping has rung earlier than ever for local shoppers.

Fayetteville, NC consumers are on track to spend more than $5.9 billion at retail this year, based on projections by the National Retail Federation (NRF). Spending is expected to be 13.5% higher than last year.  

Some Fayetteville small business owners, though, are wondering if the spread of the Delta Variant may slow spending if consumers sense pressure on their own financial security. Shoppers, however, don't see it that way.

New research from Nielsen indicates that 82% of consumers believe their household finances will either remain the same or improve during the upcoming months.

The Nielsen study has another finding that Fayetteville business owners will find promising. Consumers are more likely to shop locally than they did before the onset of the pandemic, although in different ways.

Fayetteville, North Carolina business owners who sell goods and services related to Halloween can expect far more treat than trick this year.

Based on estimates from The National Retail Federation (NRF), Fayetteville consumers are expected to spend a record $13,966,957 on Halloween. This would be 19.3% more than was handed out in 2020.

The NRF estimates that 65% of consumers intend to celebrate Halloween or participate in Halloween activities this year, up from 58% in 2020 and comparable with 68% in 2019 before the COVID-19 pandemic.

The top ways consumers are planning to celebrate include handing out candy (66%), decorating their home or yard (52%), dressing in costumes (46%), carving a pumpkin (44%), and hosting or attending a party (25%).

Fayetteville small business owners looking to scare up a share of this Halloween cash will need to advertise to drive local consumers to their stores and websites. But, to make a difference, advertising needs to begin right away.

"This year consumers are shopping for Halloween items earlier than ever," says the NRF, "with 45% planning to shop in September or earlier and another 39% during the first two weeks of October."

To maximize success, every Fayetteville, North Carolina area 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.”

According to the US Census Bureau, there are 14.444 small businesses in the Fayetteville area. This geography includes Fayetteville, Dunn, Lumberton, and every point in between.  Most of these diminutive companies have limited dollars to invest in advertising.  

Advertising successfully in Fayetteville is achievable, though, with a small budget if the available funds are invested wisely.  Oftentimes, this means selecting one medium rather than spreading money over several.

So which medium makes the most sense for small business owners with limited budgets? By most key advertising metrics, advertising on Fayetteville radio is the best option.

Advertising is crucial to the success of Fayetteville, North Carolina business owners. According to Investopedia, "lack of adequate marketing and publicity are among the issues that drag down small business".

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.

The majority of these dollars are being spent by Fayetteville business owners to capture a significant share of the $5.9 billion dollars local consumers will be spending this year. These estimates are based on a revised forecast from the National Retail Federation (NRF).

Of course, there is an over-abundance of ways a local business owner can advertise. Perhaps the best way to generate sales from local consumers is with Fayetteville radio. Here are the top five reasons why...

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.

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.

There are 108,364 millennials in the Fayetteville, North Carolina area.  The oldest of them turn 40 this year. According to The Pew Research Center, millennials comprise the generation of Americans born between 1981 and 1996.

As a consumer group, millennials account for an outsized percentage of retail spending. This generation represents 31% of the Fayetteville area population but almost one-third of metro-area sales. 

All in, Fayetteville millennials are expected to ring up more than $2.9 billion in purchases during 2021.  You name it, millennials are planning to buy it.

According to Nielsen, over the next 12 months, Fayetteville millennials will show up in huge numbers at auto dealerships, furniture stores, mattress stores, appliance stores, home improvement stores, and scores of other area retailers and service providers.

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.

In the 1930s, when WFNC-AM became the first radio station in Fayetteville, North Carolina, many considered the medium a fad.  Even a 1937, a hit song by George Gershwin, Our Love Is Here To Stay, proclaimed radio to be a "passing fancy and in time may go".

Fayetteville radio, however, has survived the advent of talking-movies, television, eight tracks, and cassettes in stereo.  More recently, radio has withstood a tsunami of digital options including, YouTube, SiriusXM, Pandora, and Spotify.

As the Coronavirus pandemic rolls over into a second year, Fayetteville radio has hung tough and not ceded its ground despite listener's shifting lifestyles.  This is crucial news for local small business owners who depend on local stations to market their goods and services.

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.

Since 1921, advertising on Fayetteville, radio has helped North Carolina small business owners survive and thrive during times of peril. This includes world wars, natural disasters, depressions, and recessions.

Even during a pandemic, by almost every key marketing metric, radio advertising remains the best way for a Fayetteville business to market its goods and services.

To prove the point, here are five statistics that vividly demonstrate the value of advertising on Fayetteville radio.

There is cheerful news for small business owners from Lumberton to Dunn and every city and town in between.

Based on the latest projections from the National Retail Federation, holiday sales are expected to grow 3.6%-5.2% over 2019.  This means despite the economic ravages of the pandemic, Fayetteville area shoppers will be spending between $1.1 and $1.2 billion on gifts and other trappings of the season.

The NRF forecast is based on an economic model that takes into consideration a variety of indicators including employment, wages, consumer confidence, disposable income, consumer credit, previous retail sales and weather. NRF defines the holiday season as November 1 through December 31. Numbers forecast by NRF may differ from other organizations that define the holiday season as a longer period or include retail sectors not included by NRF, such as automobile dealers, gasoline stations and restaurants.

"Consumers have shown they are excited about the holidays and are willing to spend on gifts that lift the spirits of family and friends after such a challenging year," says NRF President and CEO Matthew Shay. "We expect a strong finish to the holiday season." 

“Given the pandemic, there is uncertainty about consumers’ willingness to spend, but with the economy improving most have the ability to spend,” NRF Chief Economist Jack Kleinhenz said. “Consumers have experienced a difficult year but will likely spend more than anyone would have expected just a few months ago."