According to the Small Business Administration (SBA), the good news is that 80% of small businesses make it through the first year. After that, though, only about half will make it to their fifth anniversary. Even fewer, 33% will keep their doors open for ten years.
CBInsights performed an analysis to determine the top ten reasons small business owners fail. I have included the entire list. But, of particular importance, is reason #8, "poor marketing". This subject will be discussed in more detail because this is where advertising on Fayetteville radio stations can help business owners not to fail.
Top 10 Causes Of Small Business Failures
- No Market Need
- Ran Out Of Cash
- Not The Right Team
- Got Out-Competed
- Pricing Issues
- User Un-Friendly
- No Business Model
- Poor Marketing
- Ignore Customers
A Fayetteville small business could fail for just one of these reasons, or, more likely, for a combination of several.
How To Market Well
The SBA advises, "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 many ways for North Carolina small business owners to advertise. Options include local newspapers, local magazines, local television, and online. But to achieve the “3-Rs” of advertising success, Reach, Recall, and Return, no other medium delivers results as effectively and efficiently as advertising on Fayetteville radio.
A study by Nielsen indicates that the number of people who are exposed to an advertising message (reach) is a primary contributor to sales conversion. In Fayetteville, no other advertising medium has a greater reach than radio.
Last week, 288,946 adult consumers tuned to their favorite Fayetteville radio stations. This is significantly more than the 181,951 consumers reached by area TV stations or the 182,061 reached by local newspapers.
Also, Fayetteville radio reaches everyone. Unlike other local media, which tends to skew towards older audiences, Fayetteville radio reaches consumers of all ages. This includes members of Generation X, Y, and Z; Millennials, and Boomers. Everybody.
To be effective, advertising must be remembered by the consumer when it comes time to choose which Fayetteville business owners to patronize.
Local Ad Recall, a research company that measures the effectiveness of advertising, found that brand recall was five times higher for companies that advertised on radio versus the companies that did not. Consequently, Fayetteville small business owners who advertise on radio have a much better chance of being recalled and, therefore, frequented by prospective customers than companies that do not advertise on radio.
Consumer insight company, Nielsen found similar results. Across several different business categories, on average, radio advertising improved recall by 82%. The businesses measured were a health and beauty company; an information technologies company; an auto aftermarket retailer; a motorcycle company; and a mobile app company.6
Return-on-Investment (ROI) is a measurement of revenue growth that a Fayetteville business owner can expect for each $1 invested in advertising.
According to Advertising Age Magazine, when executed correctly, radio advertising can deliver a greater ROI for a local business than investing in TV, digital, or social media ads.
Over the past few years, Nielsen has conducted more than 20 studies to determine how much ROI a business owner could expect when advertising on radio. In every case, radio’s ROI was, in the words of Advertising Age, “Eye-popping.”
The most recent ROI study released by Nielsen is no exception. According to Westwood One, the company that commissioned this latest study, a radio campaign for a men’s personal-care brand produced $11.96 in sales-lift for every $1.00 invested in radio advertising.
Overall, according to Nielsen, among all of the studies conducted, radio ads produce a very impressive 10x return-on-investment.
Radio Advertising Contributes To Small Business Success
Hundreds of Fayetteville small businesses have made it past their 10th anniversary with the help of advertising on Fayetteville radio stations.
Carolyn and Tony Barbour are the owners of Budget Rooter, a Fayetteville based small business with a long list of commercial, residential, and industrial customers. “I can testify,” says Ms. Barbour, “our radio advertising has created lifetime customers for our company.
The Barbour's small business started from the back of the family's Geo Storm in 2002. The company began to grow fueled, at first, by referrals and an ad in the phonebook.
In 2007, though, the economy took a downturn and many of Budget Rooter’s competitors began to fail. Not wishing to succumb to the same fate, the Barbours decided to expand their advertising efforts.
“We thought about using TV,” remembers Ms. Barbour, “but when we started asking other Fayetteville small business owners what type of advertising worked best for them, they all said radio.”
So, in 2007 the first Budget Rooter radio campaigns started airing on two Fayetteville radio stations. These commercials featured the company’s now iconic slogan, “Don’t flush your budget on high repair bills.”
“For the first several months, our radio helped us keep our nose above water,” says Ms. Barbour. “I promise you, it was advertising on Fayetteville radio that kept us afloat.
As Ms. Barbour tells it, after being on radio consistently for nine months, the business started to take off. “In the deepest part of the downturn,” she recalls, “we were growing.”
Since 2007, Budget Rooter has not missed a single month of advertising on Fayetteville radio. “Our radio ads have been so successful,” says Ms. Barbour. “we have increased the number of stations we run commercials on from two to five.”
Local Attorney Uses Fayetteville Radio To Build Her Brand
Local attorney Nicole Cotton began advertising on Fayetteville radio in 2010 shortly after opening her first law office in Robeson County. “In every radio commercial, she included her slogan “Cotton is my name, but I’m no softy." “Within three months,” she recalls, “people were coming up to me every single day and repeating that slogan.”
I used my radio advertising to build my personal brand,” recalls Ms. Cotton. “Based on the billings she generated from her current clients, her radio advertising, and her drive to succeed, Ms. Cotton was able to open her second office in Fayetteville a year later.
“Advertising on the radio,” Ms. Cotton concludes, “helped give my law firm credibility.”
Plumbing Company Continues Radio Ads For 18 Years
Cape Fear Flooring in Fayetteville started out as a carpet cleaning company 19 years ago operating out of a tiny house. This year, the company moved into a brand new, 6000 square foot showroom and warehouse along with their 28 employees.
“We began advertising on Fayetteville radio in 2000, a year after we opened,” remembers co-owner, Amie Crouter. “We had just expanded into water mitigation a few months earlier. I had just set up an account with Mohawk, one of the largest manufacturers of floor coverings in the world. And, we had just sold our first flooring job even before we had hired an installer.”
After 18 years, Cape Fear Flooring still advertises on Fayetteville radio. “Radio advertising has really driven our growth from the beginning,” says Ms. Crouter. “We have always asked new customers how they found out about us. Overwhelmingly, we are told they heard our radio commercials.
“Since we started advertising on the radio, we’ve never stopped,” she says. “Advertising on Fayetteville radio has provided an excellent return-on-investment for us.”
A Fayetteville Radio Station For Every Budget
Some budget-conscious small business owners may avoid advertising on Fayetteville radio because they perceive it might be too expensive.
The reality, though, is that each of the 28 Fayetteville radio stations is priced by the number of listeners it attracts. So, for a cash-strapped business owner, there are stations that can be purchased with budget constraints.
It is not necessary for a small business owner to purchase the top-rated radio station in Fayetteville to be successful.
Bob McCurdy, Senior Vice President of Beasley Media, writes in the article, 'The Paradox of Rank', "There’s beauty and value in every radio station regardless of audience ratings/size. The average radio listener has no idea where or how their favorite station ranks, nor do they care."
"The only thing they know," continues Mr. McCurdy, "is that they like listening to that station and that’s good enough for them. Listeners to all radio stations, regardless of audience size, respond to what they hear, so audience rank should be near the bottom of any list of reasons to purchase any station. Qualitative profile, demographic skew, audience consistency and efficiency should easily transcend rank."
The final word comes from Deloitte, the world's largest business consulting firm who recommends "Radio should be a big part of the mix for every business who buys advertising."