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. 

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.

In 1940, KENO became the first radio station to serve Clark County. Today, 1,502,898 adult consumers tune-in to Las Vegas radio stations every week. This is significantly more than watch local TV or read newspapers. 

Las Vegas small business owners, however, also want to know how local radio compares to streaming audio platforms like Pandora and Spotify, especially as it relates to advertising. The answer could surprise many of them.

Pandora was created to provide a personalized radio station catering to the musical preferences of each user.  The playlists were determined by a proprietary algorithm and then streamed directly to each listeners' computer. Over the next few years, the service became available on iPads and smartphones.

Ask any Las Vegas small business owner how to measure the success of an advertising campaign. The answer will almost always 'sales.'

According to Nielsen research, the media-element of a campaign that has the most significant effect on sales is reach. This is the number of different people exposed to the advertiser's message.

There are more ways than ever to advertise. But, which of those options has the largest reach among Clark County consumers?

Doug Schoen, an advertising professional with 35 years of experience, writes in Forbes: "You wouldn’t know it from all the media coverage focused on streaming video and streaming music, but radio actually has the most reach among American media consumers. 93% of adults listen to the radio each week as compared to 87% who watch TV, a substantive difference."

Las Vegas shoppers are expected to spend $5 billion this holiday season.  This will be approximately 4% higher than last year. These estimates are based on forecasts by the National Retail Federation and Deloitte.

To claim a fair share of the Christmas cash, local small business owners will need to battle some giant competitors. Advertising on Las Vegas radio stations may be the perfect weapon to ensure success.

According to information published in the retail trade magazine Chain Store Age, as of right now, here is where consumers are planning to shop...

OMG! Did you just call the 1.5 million adult consumers who tuned-in to a Las Vegas station last week a 'nobody'?

If you did make that mistake, then you wouldn't be the first Las Vegas small business owner or media professional to do so. Even, Doug Schoen used to share that opinion. He came clean, however, in a Forbes article.

"You wouldn't know it from all the media coverage focused on streaming video and streaming music," writes Mr. Schoen, "but recent Nielsen data shows radio actually has the most reach among American media consumers. 93% of adults listen to the radio each week as compared to 87% who watch TV, a substantive difference."

This is true in Las Vegas, as well, where radio listeners far outnumber the people who watch local TV; read local newspapers; or stream audio sites like Pandora and Spotify; or log-on to social media sites like Facebook and Instagram.

It's the cycle of American business. During this country's history there have been more recessions than presidents, 47 vs. 45.  Unfortunately, some economists believe number 48 could start any day now.  

The textbook definition of a recession is a period of declining economic performance across an entire economy, frequently measured as two consecutive quarters. In other words: it's a time when most Las Vegas small business owners sell fewer of their goods and services.

There is one thing a recession is not.  It is not a time for local business owners to stop advertising.

One of the great marketing minds of all time, Henry Ford, once said, "The man who stops advertising to save money is like the man who stops the clock to save time."

There are many examples of companies that have proven Mr. Ford's observation to be accurate. The bowl of cereal you had this morning could be one example.

Advertising is critical to the success of every Las Vegas small business owner.  One of the most powerful elements of any advertising campaign is how many people it reaches.

Nielsen, the world's largest consumer insights company, found that advertising reach has a more significant effect on sales than branding, recency, and context.

There are many ways a local business owner can advertise. This includes traditional media like Las Vegas radio, local TV, and newspaper. It also includes online advertising options such as Facebook, Instagram, and Pandora.

They type of customer an individual business needs to reach depends on the goods and services the company sells. For instance, a daycare operator might want to reach households with young children. On the other hand, a real estate agent could be looking for consumers in the market to purchase a new home.

The National Retail Federation has predicted that this year's back-to-school shopping season will set a new record. Households with school-age children are expected to spend, on average, $696.70 preparing their kids for the first day of classes. This tops the previous record set in 2012.

For Las Vegas small business owners, this means there is $453,926,560 of back-to-school bucks in play between now and the first bell of the school year.

According to the NRF, here's how the $696.70 per household will be spent.

• Clothing & Accessories: $239.82
• Computers & Electronics: $203.44
• Shoes: $135.96
• School Supplies: $117.49

To grab the largest share of back-to-school spending will require small business owners to advertise.  By any metric, advertising on Las Vegas radio stations will be the most effective.  Here's why.