During lockdown, Charlotte consumers have been postponing the purchase of major appliances. Despite the pause in buying, however, local shoppers are still expected to spend $146 million this year on ovens, stoves, refrigerators, freezers, washing machines, dryers, and dishwashers.
Here's how appliance sales in the Charlotte area will breakdown by category:
- Cooking: $39,000,000
- Refrigerator/Freezer: $36,000,000
- Laundry: $30,000,000
- Other: $39,000,000
Based on traditional buying patterns, at least 60% of all major appliance sales will occur between now and December.
“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 product sales, and you know what that means: more revenue and more success for your business”.
By almost any measure, advertising on Charlotte radio is the best choice for local appliance store owners.
According to more than 20 ROI studies conducted by Nielsen, on average, advertising on local radio returns $1000 in sales for every $100 invested.
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.
Radio Advertising ROI By Category
Radio's strong ROI is due, in part, to the medium's broad appeal to local consumers.
Every week, for instance, Charlotte radio reaches more consumers in households planning to buy major appliances than all other local media. This includes television, cable, social media, newspapers, and streaming media sites like Pandora or Spotify.
Most importantly, local radio listeners are ready to shop now.
A recent study by Nielsen finds that loyal radio listeners are 50% more likely than heavy TV users to make a major appliance purchase within 30 days of pandemic restrictions easing.
To sell more appliances, small business owners need to address advertising messages to two different types of consumers The first are those who shop in major box retailers such as Home Depot and Lowes. The others are buyers who prefer smaller, local stores.
As the pandemic winds down, money remains tight for many Charlotte small business owners who may perceive advertising as an extravagance. But not advertising can impose severe consequences.
"According to our analysis, short-term decisions to [stop advertising] create significant risk for long-term revenue," says Ameneh Atai, Senior Vice President of Commercial Strategy at Nielsen. "This affects both incremental revenue and base sales."
"Our database of long-term effects models suggests that cutting ad spending for the rest of 2020 could lead up-to 11% revenue decrease in 2021," says Ms. Atai. "It could take three to five years of solid and consistent brand building to recover from an extended dark period of media."
"We have a ton of evidence in our historical analysis," adds Nielsen's Tsvetan Tsvetkov, Senior Vice President of Agency and Advertiser Solutions. "Companies that step away from advertising efforts for a period of time, whether it's a couple of quarters or a full year or longer lose the momentum they have built over time the minute they stop. To recover takes a long, long time."