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Father’s Day 2022: Detroit Consumers Will Spend $276 Million

Father’s Day this year is on Sunday, June 19. Based on projections from the National Retail Federation (NRF), Southeast Michigan shoppers are expected to spend $276.5 million on the dads in their life. This is on par with the record-breaking $277.7 million spent in 2021.

“Despite growing concerns about inflation, consumers plan to spend approximately the same amount as last year in celebration of Father’s Day,” NRF President and CEO Matthew Shay said. “Spending patterns also reflect the sentimental nature of the holiday as consumers are prioritizing unique and meaningful gifts.”

The NRF projects that nearly 60%, of all Father’s Day purchases in Detroit, will be for special outings, clothing, gift cards, and electronics. Although most category spending will be down slightly from last year, the amount of money spent on special outings such as dinner is expected to increase by over 8%.

Here is how this large pool of Father’s Day cash in Detroit is expected to be distributed in all retail categories.

Advertising In Detroit Fathers Day 2022

To successfully compete for a share of record-high Father’s Day spending this year, Detroit business owners should consider advertising for two reasons. 

The first reason local business owners need to advertise is to keep spending local. According to the NRF, 40% of consumers are expected to shop for their dads online.

The second, and most compelling reason for Detroit business owners to advertise is that nearly one-third of consumers report they look to retailers for gift inspiration.

By most key marketing metrics, the best way to reach Father’s Day shoppers is by advertising on Detroit radio.

The first, and most important metric, is advertising return on investment (ROI).

From April through July of 2021, Neilsen measured the sales results of a radio advertising campaign conducted by a major retailer. The study utilized portable people meter technology to segment consumers into two discrete categories: those who were exposed to the retailer’s advertising campaign and those who were not.

Nielsen was then able to match the consumers in each segment to their credit/debit or shopper card purchase behavior. Consequently, the study measured decisively how sales were affected by the retailer’s advertising campaign.

Here are the key takeaways from the Neilsen study:

  • One or two exposures to the radio campaign resulted in a 22.4% increase in the number of shoppers
  • Three to six exposures to the radio campaign resulted in a 7.6% increase in the number of shoppers
  • Exposure to the radio campaign increased the number of transactions among the retailer’s existing customers by 11%
  • Exposure to the radio campaign increased the number of transactions by the etailer’s most active customers by 31.2%
  • Exposure to the retailer’s radio campaign generated a sales increase of 9.7%

Most importantly, the Nielsen study revealed that every $1000 that the retailer invested in the radio advertising campaign returned $13,000 in sales. A 13-time ROI.

Detroit retailers should know that these findings support 22 other Nielsen studies that indicate, on average, that advertising on local radio delivers a 10-time return on investment.

AdAge, a trade magazine for advertising professionals, calls these types of returns “eye-popping.”  The magazine goes on to say radio’s ROI is superior to commercials on TV, online, and social media.

To learn more about Nielsen’s latest ROI study, click here.

Radio’s ROI is partly driven by the medium’s dominant reach among local consumers.

Every week, according to Nielsen, 2.8 million adults are reached by Detroit radio stations. This is more consumers than are available via social media, local TV, local cable, local newspapers, streaming audio, and streaming video.

Advertising In Detroit Media Options Reach 2021

Father’s Day is only a few weeks away. By advertising on Detroit radio, local retailers still have time to aggressively peruse the expected surge in holiday spending.

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