To slow the spread of COVID-19, the Governor of Massachusetts shut down all but the most essential businesses in the state on March 24. This public safety measure inflicted a severe disruption to the Boston area's $100.9 billion retail economy.
As local small business owners prepare to reopen, each must concentrate on supercharging their cash flows to compensate for nearly 60 days of consumer abstinence. Turning the lights back on and hanging out a welcome sign might not be enough, though, to bring even the most loyal customers back.
Some customers may not return because of personal safety concerns. Other customers may have discovered alternative sources to purchase goods and services.
But, there is one thing every Boston small business owner can be assured of. Consumers will not return if they aren't aware that a business has reopened.
Advertising is a potent tactic for any New England small business that needs to reintroduce itself to local consumers.
“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.”
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best way to advertise,
radio advertising,
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retail store,
corona,
covid 19,
coronavirus,
crisis marketing,
reopen
Pay-TV is struggling to survive COVID-19.
Before the onset of the pandemic, Nielsen reported that 80.4% of Boston area households received their television programs from cable systems, telephone companies, or satellite operators. That number, however, is plummeting.
Pay-TV providers in the Boston area include Xfinity, Dish, Spectrum, and DirecTV.
"Cord-cutting, people dropping their cable and satellite TV subscriptions, pre-dates the onset of Covid-19. But the pandemic is exaggerating the trend, creating deeper issuers for programming that relies on those services for distribution," Eric Savitz wrote last week in Barron's. This includes non-premium services like ESPN, TBS, TNT, USA, CNN, and Discovery.
"LightShed Partners analyst Richard Greenfield counts a loss of 1.96 million subscribers to cable, satellite TV, and virtual cable services combined in the first quarter," Savitz continued. "This is the worst combined quarterly drop ever, down 6% from a year ago."
Greenfield said in an interview with Barron’s that what is especially sobering is that most of the first quarter activity pre-dated the virus. The numbers are likely to get considerably worse in the second quarter.
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best way to advertise,
radio advertising,
small business owner,
millennials,
television advertising,
small business,
television,
PAY-TV,
DirecTV,
Cable TV,
Dish Network
In January, Boston small business owners were in a panic. The unemployment rate was at a record low 2.6%, and there were not enough workers to fill their open jobs.
As of today, though, Massachusetts is reporting that one-in-four of the state's workforce have lost their jobs for COVID-19 related reasons. Yet, many small business owners are still struggling to find employees.
According to The Wall Street Journal, "For some workers, unemployment benefits are now paying more than their old jobs did. For others, safety concerns or a lack of child care, as most schools and day-care centers remain closed, are making them hesitant to go back."
“That’s going to get in the way of any real recovery,” Douglas Holtz-Eakin, president of American Action Forum and former director of the Congressional Budget Office, told WSJ.
The struggle to hire employees creates an additional threat for those Boston area small business owners who received loans under the SBA's Paycheck Protection Program.
To qualify for the loan forgiveness provision of the PPP, business owners must restore its workforce to pre-Coronavirus levels. This must be accomplished within eight weeks of receiving the monies.
So, just like in January, Boston small business owners are under pressure to fill open jobs. Advertising on Boston radio is a potent way to attract and hire the needed employees.
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best way to advertise,
radio advertising,
small business owner,
small business,
job boards,
recruitment advertising,
employment advertising,
help wanted
Facebook usage has swelled since the onset of the Covid-19.
According to Nielsen, before the current chaos, 65% of Boston area adults used Facebook each month. This was significantly fewer than were reached by local radio or television each week.
According to the New York Times, however, since the start of the Coronavirus, daily Facebook traffic has increased by 27%. This compares to 33% growth in the amount of time consumers spend listening to local radio during a similar period.
Based on the surge in Facebook consumption, Boston small business owners might be tempted to purchase advertising on the social media platform to augment their regular, free postings. Here are are few facts these businesses should consider before investing.
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best way to advertise,
radio advertising,
small business owner,
online advertising,
social media advertising,
small business,
facebook advertising,
digital advertising,
facebook,
trust
Business was booming in Boston. Then it was not.
Before the chaos brought on by Coronavirus, it had been predicted, based on estimates from the National Retail Federation, Boston area consumers would spend 4.1% more in 2020 than they did in 2019. On March 24, however, when Massachusetts' Governor shut down the state, the expectations of growth for many small business owners were replaced with fights for survival.
As the state prepares to reopen, Boston area small businesses will learn that turning the lights back on and hanging out the welcome sign might not be enough to bring even the most loyal customers back.
Some customers will not return because of personal safety concerns. Other customers may have discovered alternative sources to purchase goods and services.
More likely, though, customers will not come back because a business has lost a valued parcel of real estate: the position at the top of a customer's mind. This is the place where purchase decisions are made.
There is a way to regain top-of-mind status. First, though, it's important to understand why a business can be forgotten so quickly.
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best way to advertise,
radio advertising,
small business owner,
small business,
top of mind awareness,
recall,
frequency,
corona,
covid 19,
coronavirus,
recency
For Boston small business owners, marketing and advertising are crucial to surviving any crisis, including Coronavirus. The business literature has an abundance of case studies from depressions, recessions, natural disasters, and, yes, pandemics that affirm this existential conclusion.
Advertising, however, may seem extravagant right now to New England businesses that are struggling to make rent, purchase inventory, and meet payroll. Henry Ford, though, is often quoted as saying, "Stopping advertising to save money is like stopping a clock to save time."
Therefore, as business owners from Mansfield to Haverhill (and every point in between) are cinching their belts tighter-than-ever to stay alive, the dollars invested in advertising must be spent in the most effective manner possible.
During periods of uncertainty, advertising works the hardest when placed in within media that consumers trust. During the time of COVID-19, advertising on Boston radio has earned that trust among local consumers.
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best way to advertise,
reach,
radio advertising,
small business owner,
small business,
recall,
corona,
covid 19,
coronavirus,
recession,
trust,
context
Since the onset of the Coronavirus crisis, consumers are not flocking into the showrooms, storefronts, offices, or dining rooms of Boston's small business owners. It turns out, though, social distancing has not proven to be an impediment to shopping.
New England consumers are still spending money despite the chaos imposed by the pandemic, according to Gordon Borrell, CEO of Borrell & Associates. His company specializes in the collection of marketing data from business owners across the country.
"During depressions, recessions, floods, hurricane, earthquakes, fires, and, now, pandemics, commerce goes on," Mr. Borell told members of Boston's small business community during a recent teleconference.
To prove his point, he shared research from IBISworld which, indicates spending continues despite a plunge in consumer confidence.
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radio advertising,
consumer spending,
small business owner,
online advertising,
small business,
corona,
covid 19,
coronavirus,
crisis marketing,
web traffic,
website vistiors,
e-commerce
Every week, 3,543,709 adult consumers tune-in to a Boston radio station. That is way more than are reached by other media, including local television, newspaper, social media, or streaming audio sites like Pandora and Spotify.
A more significant number for thousands of New England small business owners who advertise on Boston radio is how many of these listeners stick around when their commercials come on.
A 2011 Nielsen study discovered that, on average, 93% of listeners stayed with the radio station they are tuned-to when the commercials come on. That number amazed many advertisers at the time who believed that audiences were far more likely to defect when the music stopped.
A lot has changed since 2011. Boston area consumers have many more media options and can instantly connect to each with a button-push, mouse-click, screen-tap, or voice command. With all of these choices, do radio audiences still stay tuned during commercial breaks?
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best way to advertise,
newspaper advertising,
radio advertising,
social media advertising,
television advertising,
small business,
instagram advertising,
pandora,
spotify,
small business advertising,
streaming audio,
facebook,
button pushing
The chaos created in New England by the onset of Coronavirus has been a disruptive force among consumers.
Work routines, buying habits, family life, and media consumption have all been palpably affected. These are all factors that need to be considered by small business owners who continue to advertise their goods and services during the crisis.
Before the current chaos, advertising on Boston radio, by any metric, was the best way a local small business could advertise.
For instance, pre-Coronavirus, 3.5 million adult consumers tuned-in to a Boston radio station every week. This is significantly more than watched local TV, read a newspaper, accessed social media, or streamed audio from sites like Pandora and Spotify.
New research released from Nielsen indicates that amidst the current crisis, listening to local radio remains little changed. This is great news for those Boston area small business owners who are depending on advertising for their long-term survival.
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newspaper advertising,
radio advertising,
small business owner,
small business marketing,
online advertising,
social media advertising,
television advertising,
small business,
digital advertising,
small business advertising,
streaming audio,
corona,
covid 19,
coronavirus,
crisis marketing
In 'normal' times, Boston area consumers would be expected to rack up $100.9 billion in annual retail sales. Of course, since the onset of the Coronavirus crisis, nothing has been normal.
But as Gordon Borrell, CEO of Borrell Associates, explained to members of the Boston area small business community via teleconference, consumers are still spending. This, it turns out, is normal.
Mr. Borrell shared research from Ibis that demonstrates during every type of crisis, including depressions, recessions, floods, hurricanes, earthquakes, fires, and, now, pandemics, consumers still spend.
The business literature contains an abundance of examples of how continuing to market and advertise during an economic crisis can help a company survive and emerge from the episode even stronger than before.
Boston small business owners who do continue to advertise and market, however, should consider modifying their pre-crisis strategy.
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Topics
best way to advertise,
radio advertising,
small business owner,
small business,
corona,
covid 19,
coronavirus,
crisis marketing,
borrell