Shepherdsville, Kentucky—The local advertising industry is slated to grow to more than $175 billion nationally by 2021, but it will not be with direct mail, newspapers, print, radio or television. It will be social and digital marketing.
“We are on the precipice of different advertising channels taking lead positions in the local advertising marketplace,” says Mark Fratrik, chief economist for BIA/Kelsey, a leading industry analyst.
According to BIA and backed up by Forbes, television ad attention has dropped dramatically in the United states, from more than 90 percent in the 1990’s to less than 20 percent today. Television used to be our most important local advertising medium, if you hit TV you were successful. Today, that isn’t the case and it is not the case with radio either.
The drop is directly correlated to the amount of time adults spend consuming media on mobile devices during the day. In addition, many consumers have shifted from traditional cable television and FM/Satellite radio in favor of subscription-based services like Hulu, Sling, Netflix, Spotify, and Pandora, and let us not forget the invention of DVR.
The problem for local small businesses is the barrier to entry and return on investment for social and digital advertising. Their consumers are largely ignoring print advertising and social media and digital advertising on apps like Facebook or free versions of apps like Spotify, Pandora or iHeart Radio are cost prohibitive. Not to mention the return on investment with these services is difficult to quantify.
So how do small businesses and local advertisers reach their intended audiences in the future? It is going to be with local advertising companies who understand the budget constraints of small businesses and cater directly to them while delivering a product that will attract their consumers in this digital, global age.
In essence, small businesses must find a way to be global businesses in a local market. Newspapers, local radio and television, and especially direct-mail are not those mediums. Why use a marketing channel that brags about a 4.4% response rate when you could use a channel that lets you interact with 100% of your audience?
Magnus Rewards (www.magnusrewards.com) is an emerging business in this space. It is a local advertising app that pays consumers to watch local advertisements and then allows consumers to spend the money they earn with local businesses. It also allows for up to five survey questions that must be answered to claim the reward and gives full back-end, real-time data to participating businesses.
This concept not only opens small businesses up to affordable digital marketing, it hits their exact audience and keeps advertising dollars flowing in the local community. Local businesses do not have to compete with global brands in a local market anymore.
If your business is struggling to break into digital advertising or you’re just not getting the traction you’re looking for, check out Magnus Rewards. The official launch is coming soon and discounts are available.