How to Support Local Businesses: Targeted Local Ads Build Demand

Are your accounts focused enough on capturing revenue from local shoppers? OnDeck, a small business lender, recently highlighted local shopping data from its survey. And AudienceSCAN data supports the findings, revealing that 59% of all U.S adults prefer to support local businesses. Marketers should not ignore this source of revenue.

How often do shoppers patronize local businesses?

Many consumers want to support local businesses. They like the concept of a strong community. But when budgets are tight and time pressures mount, consumers are apt to shop online, often from a large retailer where they’ve paid a membership fee and qualify for free shipping.

The shift to online shopping has created a new world of competition for local sellers. But opportunity still exists. Let your account know that the average consumer shows up at an independent store to make purchases 128 times a year. OnDeck found significant variation by age group. For example, millennials visit these stores 158 times a year.

Millennials are also the biggest spenders at these stores. Local businesses can count on that age group to spend around $19,173 a year. That’s significantly more than the $11,740 spent by the average consumer who patronizes local businesses.

What are local-​first shoppers buying?

These consumers are big fans of local and independent grocery stores, allocating $2,298 of their spending to that channel. That amounts to 37% of their total grocery bill.

Local restaurants ($1,489) and coffee shops ($653) also benefit from consumers who like to focus on local businesses. (Note that those figures don’t represent all spending in those verticals.)

In the coming year, consumers plan to increase spending on specific items sold by local retailers. This planned spending includes:

• Footwear 10.3% (represents planned spending increase)
• Apparel 10.2%
• Electronics 9.6%
• Home décor 7.9%

Why do consumers shop local?

To increase their share of local spending, your accounts should emphasize their community roots. Around 48% of consumers in the OnDeck survey say their goal for shopping local is to “help with the local economy.”

And there are other ways to tap into this spending. Messaging that targets the following sentiments makes a difference. Consumers shop local because they can:

• Find unique and unusual products 41.9%
• Enjoy personalized customer services 25.2%
• Encounter friendlier staff 29.5%
• Purchase higher-​quality products 27.2%

When should local businesses advertise?

Your accounts are likely familiar with some of the key small business promotional events. For example, Small Business Saturday takes place the Saturday after Thanksgiving. And National Small Business Week in May creates another opportunity for locally owned businesses to celebrate a vibrant merchant economy. With an AdMall subscription, marketers can review profiles for audiences who shop during these events.

How much consumer spending goes to holiday events?

Several other holidays present your local accounts with advertising opportunities to reach supportive consumers with money to spend. Analysts estimate that around 20% of Mother’s Day spending goes to local retailers. Buying flowers or plants from a local grower or chocolates from a local shop will add meaning to the celebration for moms.

During the Christmas season, around 33% of holiday-​related spending goes to local sellers. Whether it’s a tree, decorations or gifts, shoppers want to support local businesses during this important season.

AudienceSCAN results indicate other ways to connect with local-​first shoppers. Around 32% want to buy American made products whenever possible. And they are 19% more likely than other U.S. adults to switch brands in support of an important cause or charity. Remind your accounts to mention these kinds of details in their advertising.

How do local-​first shoppers feel about local media?

As you are pitching your media space to your accounts, let them know that local-​first shoppers are 9% more likely than other U.S. adults to appreciate local media. They say local media helps them discover new businesses that have just opened. They are also 4% more likely than other U.S. adults to say that local media helps them take advantage of sales offered by local businesses. This attitude suggests that they are paying attention to ads by local businesses.

Image by Amina Filkins on Pexels.