Why It’s Key To Be ‘Known Before You’re Needed.’

A new marketing case study from Cumulus Media/Westwood One argues that long-term brand advertising — particularly through AM/FM radio — remains one of the most effective ways for local businesses to build awareness and drive future sales, even as many advertisers focus increasingly on short-term performance metrics.

The report, from the Cumulus Media | Westwood One Audio Active Group, examines how one local business in the Joplin, MO market — Henkle’s Ace Hardware, a locally owned hardware retailer operating in the Joplin area since 2006 — strengthened brand recognition through consistent advertising campaigns designed to make companies “easy to mind and easy to find.”

The study centers on the concept of “creating future demand,” which Westwood One describes as ensuring consumers know and remember a business before they actually need its products or services. The report contrasts that strategy with “converting existing demand,” or targeting the relatively small percentage of consumers already prepared to make a purchase. According to the study, only 1% to 5% of consumers are actively “in market” at any given time.

It argues that many marketers have become overly focused on short-term sales attribution and direct-response tactics at the expense of long-term brand building. Quoting journalist Doc Searles, the article says, “Madison Avenue fell asleep, direct response marketing ate its brain, and it woke up as an alien replica of itself.”

The study cites research conducted in Joplin by Quantilope, which surveyed consumers about their awareness of local businesses and brands. The findings showed that many consumers struggled to name local companies in numerous retail categories without prompting. In several sectors, “don’t know” was the most common response.

The report also found that consumers who had lived in the Joplin area longer generally demonstrated higher awareness of local advertisers than newer residents, reinforcing the argument that businesses must advertise continuously because communities are constantly changing.

The article argues that memorable, entertaining advertising performs better over time than heavily promotional messaging aimed solely at immediate sales. Marketing effectiveness expert James Hurman is quoted in the report saying, “Creating Future Demand is most efficiently achieved by targeting very broad audiences of ‘all category buyers’ with emotional messaging that is designed to stand out and be enjoyed by consumers.”

The report found that AM/FM radio remained especially effective for local business because of its broad audience reach and its ability to create lasting memory structures through repetition, humor, jingles and emotional storytelling. According to the post, businesses that consistently invest in brand advertising are better positioned for long-term growth because consumers are more likely to recall familiar brands when purchase needs eventually arise.

For a 13-minute video of the key findings, click HERE.