The chaos created in Clark County 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 Las Vegas radio, by any metric, was the best way a local small business could advertise.

For instance, pre-Coronavirus, 1.5 million adult consumers tuned-in to a Las Vegas 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 Nevada small business owners who are depending on advertising for their long-term survival.

In 'normal' times, Las Vegas consumers would be expected to rack up $39.7 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 Clark County 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.

Las Vegas small business owners who do continue to advertise and market, however, should consider modifying their pre-crisis strategy.

Last week, Gordon Borrell, CEO of Borrell Associates, shared insights with Las Vegas small business owners on the value of marketing to consumers during a crisis. A video replay of the teleconference is available by clicking here.

Mr. Borrell is the CEO of Borrell Associates. His company is one of the most trusted sources of trends and forecasts for local media today.

According to Mr. Borrell, despite social distancing and economic jitters induced by the Coronavirus chaos, consumers are still spending money.

He points to research from Ibis that consumer consumption continues in almost every crisis, including depressions, recessions, floods, hurricanes, earthquakes, fires, and, now, pandemic.

In a typical week, 1.5 million adult consumers tune-in to Las Vegas radio stations.  But, since the onset of the Coronavirus, the weeks have not been typical.

Before social-distancing and work-from-home orders, 1.1 million Clark County consumers would drive to-and-from work each day. More than 93% of these commuters could be reached by radio.  

Las Vegas area small business owners who depend on radio advertising to market their goods and services, therefore, might be concerned that the disruption in commuting patterns could depress the amount of time consumers spend with local radio.

According to market research, however, radio listening remains an important part of the daily life of consumers. Even amid the current chaos.

Clark County small business owners are fighting the coronavirus battles on multiple fronts.  Their first objective is to keep their families and employees safe. Then, of course, there are the concerns of keeping their businesses healthy enough to survive current disruptions.

The business literature has an abundance of case studies showing how survival is often connected to a thoughtful communications and marketing strategy during challenging times.  

Business owners need to let Las Vegas consumers know if they are still open. If their hours have changed. Or if they are providing alternative shopping methods (e.g., delivery, curbside pick-up).

Most importantly, it is imperative consumers know that a business will still be there for them when the crisis is over.

For those owners who are depending on communication to preserve their business, the best option may be to advertise on Las Vegas radio.

Las Vegas retailers spend a considerable amount of time and money marketing their small businesses on social media.  Is this effort paying off?

Each month, according to Nielsen, 1.2 million Clark County adults use Facebook, Instagram, or Twitter. This equates to 70% of consumers.  This reach is rather anemic compared to Las Vegas radio and TV, which attracts considerably more users in a single week than these social media platforms do over 30 days.

Among local millennials, the monthly reach of Facebook, Instagram, and Twitter is eclipsed by the weekly reach of Las Vegas radio.

The number of consumers reached by an advertising campaign, according to Nielsen, is the media consideration that has the most significant effect on increasing sales. 

There are 906,300 consumers in Clark County who own their own home. 

According to Zillow, more than 60% of homeowners carry a mortgage. A record number of owners are considering refinancing  now, which means millions of dollars in fees for local lenders and brokers are up for grabs.

Why the sudden urgency for Las Vegas homeowners to refinance their mortgages?

According to The Federal Home Loan Mortgage Corporation (aka, Freddie Mac), "The average 30-year fixed-rate mortgage hit a record 3.29% this week, the lowest level in its nearly 50-year history."

"Meanwhile, mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down. Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy."

If a consumer Googles 'refinance my mortgage in Las Vegas, more than 7.2 million results come back, So, to set themselves apart, lenders and brokers will need to advertise.  By, any key metric, advertising on local radio is the best way to reach area homeowners.

Clark County consumers spent more than $45.6 billion with retailers last year. The National Retail Federation forecasts 4.1% more will be spent this year.

Who are the shoppers that will be spending all this money?

According to Nielsen, 43.4% of retail dollars are spent by Las Vegas area consumers over the age of 50. This may surprise many small business owners because older consumers comprise only 35% of the area's adult population.

These older consumers account for a substantial share of spending in almost every retail category. This includes furniture, cars, pet supplies, fast food, and electronics.

To earn a share of these massive dollars spent by these older consumers requires Las Vegas small business owners to advertise.

Retailers in Clark County rang-up $45,669,580,000 in retail sales last year, according to Nielsen. But wait. It's about to get better.

The National Retail Federation forecasts that in 2020, sales will increase by as much as 4.1%. This will create another $1.9 billion for local small business owners.  

“The economy is growing at a more modest pace, but the underlying economic fundamentals remain in place and are positive,” stated NRF chief economist Jack Kleinhenz. “Consumers remain upbeat and have the confidence to spend, and the steady wage growth that has come with the strong job market is fueling their spending. The state of the consumer is very healthy.

To claim a fair share of this enlarged pool of spending will require Las Vegas small business owners to advertise.

“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.”  

There is alarming news for Clark County small business owners who advertise on Las Vegas television stations: broadcast TV viewers are disappearing at an alarming rate.

Nielsen reports that halfway through the first quarter of this year, the number of people using television has dropped 7.5%. This compares to -6.3% in the fourth quarter of 2019, and -7.0% a year ago,

"If the trend holds, it would represent the largest quarterly decline for TV viewership in our data set," explains UBS analyst John C. Hodulikadding. "Trends have worsened across most age demos with persons 25-34 now falling -17% vs. low double-digit declines throughout 2019. The persons 55+ demo continues to trend down -2%, similar to 2019 (the first year of declining ratings for the demo)."

Radio listenership, on the other hand, has remained quite stable, according to Nielsen. Since 1970, the medium has reached more than 9-in-10 consumers every week.