Stimulus checks provided much-needed relief to many Americans during the economic shutdown due to the pandemic. However, most, if not all of that money is gone, and inflation is on the rise. In addition, there is a predicted recession for 2023. But there must be a ray of hope somewhere amid this economic downturn. Media sales reps can turn to small business owners in communities and tout local television advertising and marketing tools to help them stay competitive and successful.
Business Opportunities for 2023
In a webinar hosted by Borrell Associates, Corey Elliott said that these clients often will be doing their marketing themselves, or are new to advertising. Offer them the opportunity to do less work by partnering with your company while increasing their advertising in ways that count and boosting their revenue. Competitors in their industry may be buying advertising, such as local television advertising, or using digital services and other game-changing strategies. Prospects need to stay on top of what is popular and efficient in their industry to keep up with consumers and competitors. Sales reps can use the intelligence tool, AdMall by SalesFuel, to forge long-lasting sales relationships.
Who Are Small Businesses?
Gordon Borrell mentioned that most of these companies will not show up on your prospect radar unless you encounter a local billboard or ad. These brands are most likely self-made and have less than 10 employees. But they are projected to become bigger revenue generators in 2023. Historically, support for local business is higher in times of economic depression. Look to local demographics and audiences to get a better picture of your client’s target market. Remembers that every market and industry is different. In Southern California, garden centers want to sell palm trees. But in Northern Minnesota, there is a big market for snow plows and no market for palm trees. Use AudienceSCAN by SalesFuel to explore these target markets and their consumer behavior further, such as what calls-to-action or ads they are more likely to respond to.
Projections for Local Ad Spending in 2023
So, what formats will bring companies the most success in 2023? Corey Elliott said expenditures for local advertising will increase by 3.2%, while digital formats will rise by 7.7% in the coming year. However, non-digital formats are expected to decrease by 5.9%. These numbers are subject to change, as the economy and other factors at play are rather unstable with the looming recession.
Local Television Advertising
Consequently, since digital formats and local advertising are expected to be on the rise in 2023, small business clients should look to be using local television advertising. Borrell Associates projected that in 2023, companies will spend:
- 70% of advertising expenditures on digital formats
- 30% of ad money on non-digital formats
Borrell chipped in that these businesses buy more traditional advertising and have bought fewer types of media for advertisements. Hopefully this is a good conversation starter with a prospect, and you could suggest an omnichannel approach, in addition to conveying the importance of digital formats. Another format Borrell Associates mentioned is paid search formats. Because although paid search has been decreasing, the decline has been slow, and money is still being funneled into the format.
Markets Vary by Demographic and Psychographic Research
As Borrell specified in the "Local Ad Spending Forecasts" webinar, “all markets aren’t alike.” Advertising media can efficiently reach the target audiences, especially if you pay attention to how they respond to advertising, along with other personal data. Dakota State University's Marketing Research Guide defines these terms to prospective marketing students as:
- Demographic research: "your product's best and biggest customers based on demographic variables, such as gender, income, age, etc."
- Psychographic research: "learn about attitudes and behaviors of customers that might affect their spending on your product"
Therefore, research these factors before making advertising suggestions to your prospective client. The answers may or may not surprise you. Then, you can model your advice after the individual needs and wants of local consumers.
Maintain Relationships Using Advertising
AdMall provides accurate information on your local client’s market. Learn even more about their target audience using AudienceSCAN, also by SalesFuel. Keep in mind that building relationships with clients means more business and perhaps referrals further down the road. Closing a sale is only half of the deal. Continue to show your value to clients by providing timely emails with updated information on their brand’s audience.
Photo by Towfiqu Barbhuiya from Unsplashed.
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