Since 1922 when WDAE-AM signed on, local small business owners have been advertising on Tampa Bay radio to market the goods and services they sell.

Lately, some of these advertisers are voicing concerns, though, that the accelerating use of smart speakers could erode the effectiveness of commercials on local stations. Current research, however, reveals that these devices actually extend the reach of the medium and its ad content.

More than 727,000 consumers in Tampa Bay have a smart speaker in their homes, according to Nielsen. This is 28% of the local adult population.

Smart speakers are internet-enabled devices controlled by spoken commands and capable of streaming audio content, relaying information, and communicating with other devices. 

According to the Cooperative Institutional Research Program (CIRP) data, Amazon Echo (aka Alexa) accounts for 69% of all smart speakers in use. Google's smart speaker makes up another 20% of the market. The remaining 11% of the market comprises Apple Home (aka Siri), Sonos, and Bose.

Tampa Bay consumers can use their smart speakers to accomplish a diverse range of tasks, including accessing news, weather, and sports information; turning on lights in the house; shopping; and food delivery.

The most common use of a smart speaker, though, is streaming audio, including Tampa Bay radio stations, according to eMarketer. Edison Research's Share of Ear Study indicates that consumers devote 13% of their total time using a smart speaker listening to AM/FM radio stations. This is second only to the time spent listening to Amazon Music at 19%.

Every week, according to Nielsen, Tampa Bay radio reaches 2.2 million adult consumers. This is significantly more people than are reached by local TV, cable, social media, streaming video, streaming audio, or newspapers.

Because of its humongous reach, area small business owners advertise on Tampa Bay radio to successfully market the products and services they sell.

Many first-time advertisers on Tampa Bay radio will ask how many times a consumer needs to hear a commercial before they become a customer.  Often the business owner is told that to be effective, a consumer needs to be exposed to a message three times before they will buy.  Unfortunately, this prescription for a three-time frequency is more myth than substance.

A study by Nielsen provides some data-based insights about effective frequency, But first, here's the origin of the mythological rule of three.

Every week, according to Nielsen, 89% of adult consumers tune in to a Tampa 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.

Tampa 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 Tampa 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 Tampa small business owners to understand.

The six listener categories as described in the study are:

Each week, according to Nielsen, more than 2.2 million adult consumers tune-in to a Tampa radio station. This is significantly more than watch local TV or cable. More than stream video channels like Netflix or Hulu. More than read local newspapers. More than use Facebook or Instagram. More than listen to online audio services like Pandora and Spotify.

But almost everyone knows (including many who advertise on Tampa radio) that consumers only listen to local radio stations during the day. Right? Wrong!

According to Nielsen, 46% of local consumers listen to Tampa radio stations each week between 7:00pm and 12:00am. This is a larger audience than Pandora, Spotify, and Instagram combined reach during an entire week.

For Tampa small business owners, radio's immense nighttime audience offers a unique value proposition.

There are more than 2,000,000 car radios in the Tampa Bay area. On April 3, though, many of these devices became quarantined along with their owners. That was the day when the Governor of Florida shut down the state to slow the spread of COVID-19.

According to the Apple Mobility Index, the Governor's public-safety order caused traffic on Tampa Bay roadways to plummet to 25% of pre-pandemic levels.

By the beginning of July, however,  the AMI indicates that traffic in Tampa Bay began to return pre-Covid levels. The surge in mobility is due, in part, to work-from-home, furloughed, and laid-off employees returning to their workplaces.

According to Nielsen, during the week of April 30, only 39% of adults with jobs were working outside-the-home.  During the week of October 1, though, that number had expanded to 61%.

Despite all of the media options available for small business owners to market their goods and services, advertising on Tampa radio is still the best way to reach local consumers.

Adult consumers are spending 741 minutes per day consuming electronic media, according to a new study by Nielsen.  This is 7.8% more time than they spent last year and 11.2% more than in 2018.

The typical daily media diet consists of radio, live TV, time-shifted TV, DVD/Blue-ray devices, game consoles, internet-connected devices, as well as internet via computers, smartphone apps, and tablet apps.

According to Nielsen, despite all of these media options, local radio reaches the most consumers every week.

There is good news for Tampa Bay retailers and restaurants.

As a result of the pandemic, one-third of consumers indicate they will pay a premium for local brands and products, according to a recent study by Ernst & Young

However, before consumers will buy from a local business in Lakeland, Clearwater, Spring Hill, or any town in-between, they must know they can do so without risking their health.

Advertising is the only practical way to let Tampa Bay shoppers and diners know about the precautions and practices your small business has taken to reduce potential health threats.

Small business owners in the Tampa Bay area must advertise to claim a fair share of the $59.3 billion retail economy.

“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.”  The SBA goes on to say, “Advertising, if done correctly, can do wonders for your sales, and you know what that means: more revenue and more success for your business."

During 2019, many Tampa Bay small business owners sought advertising guidance on the advice pages of www.AdvertiseInTampaBay.com. Below are the top ten most-read articles from the past 12 months.

Over the next 12 months, Tampa Bay consumers are expected to spend $59.3 billion at retail.  To capture a larger share of this cash,  local small business owners should consider advertising.

The US Small Business Administration recommends that every Tampa Bay small business advertise consistently.  “Think you have a great product?” asks the SBA. “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."

Local business owners have depended on radio advertising to market their goods and services since 1922. This was the Tampa Bay Times put the first local station, WDAE, on the air.

Today, Tampa radio, by any key advertising metric, is still the best way for business owners to reach local consumers.

Advertising is critical to the growth and ultimate success of a Tampa Bay small business. The U.S. Small Business Administration recommends that mature businesses should budget 7-8% of its annual income for advertising the company's goods and services. 

Businesses that are in an early growth phase, however, should plan on investing 10-12%.  Start-up companies that may not yet be familiar to their target consumers should consider investing even a larger percentage.

Deloitte, the world's largest business consulting firm, recommends that "radio advertising should be a big part of the mix for those buying advertising."