Economic concerns among Tampa Bay area consumers are not expected to subdue holiday shopping in in 2022. Based on forecasts from The National Retail Federation, local shoppers are projected to spend at least $9.6 billion this year. This would be 6% more than was spent in 2021.
“While consumers are feeling the pressure of inflation and higher prices, and while there is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce,” NRF President and CEO Matthew Shay said. “In the face of these challenges, many households will supplement spending with savings and credit to provide a cushion and result in a positive holiday season.”
The biggest challenge facing Tampa Bay business owners is keeping holiday spending local. NRF expects 10-12% of purchases to happen online from retailers like Amazon and Walmart.
To lay claim to this expanding pool of holiday spending, and keep business local, small business owners will need advertising. By, most marketing metrics, the best way to advertise is on Tampa Bay radio.
First of all, Tampa Bay radio reaches more adult consumers than any other advertising medium available to local advertisers
According to Nielsen, every week 2.2 million local adults tune-in to a Tampa Bay radio station. This is significantly more consumers than are reached by all other advertising supported media.
Reach is critical to the success of an advertising campaign. That is an overwhelming advantage for Tampa Bay radio.
According to a Nielsen study, after the actual content of the commercial message itself, reach is the most potent advertising element that can drive sales. Reach is more important than brand, recency, or even context. Tampa Bay radio provides local business owners with the most significant reach among consumers.
Most importantly, Tampa Bay radio reaches 91.1% of all Tampa Bay consumers living in households with incomes of $150,000 or more per year. According to NRF, these high income holiday shoppers are expected to spend 21% more they did last year, far outpacing the overall seasonal growth of 6-9%,
From April through July of 2021, Nielsen measured the sales results of a radio advertising campaign conducted by a major retailer. The study utilized portable people meter technology to segment consumers into two discrete categories: those who were exposed to the retailer's advertising campaign and those who were not.
Nielsen was then able to match the consumers in each segment to their credit/debit or shopper card purchase behavior. Consequently, the study measured decisively how sales were affected by the retailer's advertising campaign.
Here are the key takeaways from the Nielsen study:
- One or two exposures to the radio campaign resulted in a 22.4% increase in the number of shoppers
- Three to six exposures to the radio campaign resulted in a 7.6% increase in the number of shoppers
- Exposure to the radio campaign increased the number of transactions among the retailer's existing customers by 11%
- Exposure to the radio campaign increased the number of transactions by the retailer's most active customers by 31.2%
- Exposure to the retailer's radio campaign generated a sales increase of 9.7%
Most importantly, the Nielsen study revealed that every $1000 that the retailer invested in the radio advertising campaign returned $13,000 in sales. A 13-time ROI.
Tampa Bay business owners should know that these findings support 22 other Nielsen studies that indicate, on average, that advertising on local radio delivers a 10-time return on investment.
AdAge, a trade magazine for advertising professionals, calls these types of returns "eye-popping." The magazine goes on to say radio's ROI is superior to commercials on TV, online, and social media.
To learn more about Nielsen's latest ROI study, click here.
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