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AHAA 2013: Sorrell Sends ‘Em Tweeting As Conference Starts With A Splash

“If everyone understood it, it wouldn’t be an opportunity.”

 

Those words, said about the U.S. Hispanic market by WPP Group CEO Sir Martin Sorrell, were tweeted Monday by dozens of attendees at the start of the annual ahaa conference in Miami Beach, Fla.

The event, billed Thinking Under The Influence, kicked off with a keynote address from Sorrell in which growth from Latin America was singled out as the driver of global growth for WPP, which has grown in the last decade to become the goliath of the advertising world.

 

“This is the decade of Latin America,” noted Sorrell, who called WPP’s activity in the region the most vibrant part of the company’s business—despite challenges in Brazil associated with current President Dilma Rousseff. Specifically, Sorrell noted that the 2014 FIFA World Cup and the 2016 Summer Olympics in Rio de Janeiro will propel activities in Brazil.

 

The confab, held in conjunction with FIAP and Circulo Creativo, also featured a first-day session on the blurring lines between Hispanic and mainstream creative and messaging from draftFCB director of strategic planning Ken Muench and Lopez Negrete Communications head Alex Lopez Negrete. Starting their sessions with simulated tequila shots, Muench noted that “we’re coming to an interesting merge point” on acculturation and Hispanicity. He added that multicultural influences account for nearly a third of all new words added to American English dictionaries, and that the multicultural population is setting “a cultural tone for this country.”

 

Alex Lopez Negrete added that two new things have been seen by Hispanic advertising agencies such as his in recent years. First is the number of channels available for marketers to reach the totality of the U.S. Hispanic market. Second is the client’s appetite for reaching the Hispanic market, which is more voracious than ever.

 

Lopez Negrete also took time to defend the independent Hispanic advertising agency, saying that such an entity has “far more freedom to do what is necessary and do what needs to be done” to properly evolve and best serve its clients’ multicultural marketing needs. A wholly owned general-market agency, on the contrary, cannot properly devote the right amount of resources to accomplish this task, he believes.

 

In a “CMO Chat” focused on his company’s delivery platforms and content choices, DishLATINO VP Alfredo Rodriguez noted that its lowest-ever churn for Hispanic consumers was seen in 2012 and that 10% of its 50 million subscribers are Hispanic. The percentage is growing, Rodriguez says, as 17% of total activations last year were from Hispanic customers.

 

A second CMO Chat put beer brand Tecate in the spotlight, as Heineken USA VP/Marketing Felix Palau got attendees talking about the company’s shift to creative that was humorous, slightly irreverent—and created in Mexico, rather than by a U.S. Hispanic shop. Palau also admitted that its limited marketing budget led the brand to focus much of its national efforts on Spanish-language network television but that local efforts allowed the brand to target English-speaking consumers, with spot television, radio, and digital in the mix.

 

A look at marketing campaigns from P&G and Hispanic agency of record Conill for Tide and Crispin, Porter + Bogusky for Kraft Macaroni & Cheese as part of ahaa’s partnership with Effie Worldwide concluded the day’s sessions, while the night culminated with well-attended cocktail receptions sponsored by Vme, Digilant, and the IAB.

 

ZenithOptimedia: 4.1% growth in 2013 global ad spend

For full coverage, visit HispanicAd.com

ZenithOptimedia predicts global ad expenditure will grow 4.1% in 2013, reaching US$518 billion by the end of the year. As has been the case since the economic downturn began in 2007, this growth will be led by developing markets, which we forecast to grow by 8% on average in 2013, while developed markets grow by just 2%, weighed down by the eurozone crisis.

Internet advertising is supplying most of the growth in expenditure by medium, driven by rapid development in social media and online video. We forecast internet advertising to grow by 14.6% in 2013, while traditional media grow by 1.7%.

The advertising market has been slow to recover from its 9.6% decline in 2009, the sharpest decline ZenithOptimedia have on record. This is mainly because the underlying economic recovery has been slow and erratic, as is normally the case when recessions are caused by financial crisis.

The eurozone crisis in particular is dragging down economic growth at the moment. This is because the eurozone is in recession, its imports from other countries are slowing down or shrinking, and the risk of eurozone collapse adds to global uncertainty, leading companies to hoard cash instead of investing in growth.

Developing markets slowed in mid-2012, partly thanks to weak exports to the eurozone, but recent economic data suggests that government stimulus has helped prevent a prolonged slump.

The main risks to growth in 2013 are the US fiscal cliff (automatic increases in tax and reductions in public spending that come into effect in January) and the potential for further conflict in the Middle East (and therefore higher oil prices). The general consensus among economic forecasters, however, is that the global economy will gradually build up speed over the next three years. The IMF predicts nominal GDP growth will rise from 5.6% in 2012 to 6.9% in 2015 (in the countries included in our forecasts, converted into US dollars at average market exchange rates for 2011).

ZenithOptimedia predicts ad expenditure will rise in step with GDP over the next three years, although ad expenditure growth will remain behind GDP growth throughout our forecast period. We do not expect ad expenditure to grow at or ahead of GDP until full confidence in the global economy is restored. In particular this will require a convincing, permanent solution to the eurozone crisis.

***

Ad expenditure in North America is much more robust than in Europe. Consumer confidence, retail sales, job numbers and house construction are all trending encouragingly upwards. We expect 4.1% growth this year, boosted by unexpectedly strong ratings for the Olympics and record political spending in the US. In the absence of these quadrennial effects we expect growth to slip back to a still-respectable 3.5% in 2013, followed by 4%-5% annual growth in 2014 and 2015.

Latin America is another region with rapidly growing economic output like Eastern Europe & Central Asia and Catch-up Asia, and its ad market is growing at a similar rate. Latin America’s growth rate will be slightly disappointing at 7.8% in 2012, partly because of a row over how TV advertising is monitored and sold in Mexico, but it should return to 9%-10% growth a year in 2013 to 2015.

Despite the rapid growth of the developing markets, the US is still the biggest contributor of new ad dollars to the global market. Between 2012 and 2015 we expect the US to contribute 28% of the US$76 billion that will be added to global adspend. However, seven of the ten largest contributors will be developing markets, contributing a further 44% of new adspend. Overall, we predict developing markets will contribute 61% of adspend growth between 2012 and 2015, and increase their share of global adspend from 34% to 37%.

We forecast six of the current top-ten ad markets will retain their positions in 2015: the USA, Japan, China and Germany in first to fourth place, Australia at eighth and South Korea at tenth. Three markets will fall down the rankings: the UK from fifth to sixth, and France from seventh to ninth, while Canada will fall out of the top ten altogether. Meanwhile Brazil will overtake the UK to take fifth place, while Russia will rise from eleventh place in 2012 to seventh in 2015.

 

Heineken Shifts Hispanic Duties From Vidal Partnership

December 3, 2012

HispanicAd.com

Heineken, one of the strongest performers among imported beer with U.S. Hispanics and a major player throughout Latin America, is reassigning its Hispanic creative and public relations duties.

The responsibilities, which have been held by Vidal Partnership, are now being split between PR agency giant Edelman and heritage total-market shop Wieden+Kennedy New York. Specifically, HispanicAd reports, Edelman will develop and implement public relations programs for the Heineken, Heineken Light and Amstel Light brands. Edelman will also manage general-market and Hispanic campaigns surrounding consumer-marketing launches and event-sponsorship activations.

At Wieden + Kennedy New York, Hispanic above-the-line activations for Heineken and Heineken Light will accompany the agency’s management of total-market advertising and social media channels.

 

TeleFutura Finds A New Identity As UniMás

December 3, 2012

HispanicAd.com

There is no future for TeleFutura.

Effective January 7, 2013, the Univision-owned younger sibling of the top-rated Univision network will be transformed, with its goal apparently to serve the growing number of bilingual, bicultural young Hispanic adults in the U.S.

Dubbed UniMás, the broadcast network will rely on from Spanish-language producers including Caracol Televisión, RTI Colombia, and Televisa, HispanicAd.com reported earlier today.

Univision Communications CEO Randy Falco said in a statement that UniMás “is the result of Univision listening to our audience … UniMás delivers more action, more drama and more sports than ever before and will be another platform for us to celebrate our culture and connect America.” Although Univision did not specify UniMás’ gender target, the network now seems to be friendlier than ever to Hispanic men. The timing is particularly interesting, as UniMás comes following the fall 2012 rollout of MundoFox–a broadcast network that has taken a decidedly male approach with its prime-time telenovelas and other programming features.

“UniMás will offer the new generation of Hispanic Millennial trendsetters options for bolder content,” said Univision Networks president Cesar Conde. “We recognize the opportunity for offering an alternative to our audiences while maintaining our commitment to only delivering the best programming available. That is why we are making a significant investment in the new brand, with new content offerings and considerable off-network marketing efforts. We will deliver more of the best available Spanish-language programming, more series, more sports, and more movies that speak to what our audience is looking for.”

With the shift to UniMás, the network will debut in the U.S. two Colombian telenovelas — “Made in Cartagena” and “Quien Eres Tu” (Who are You) — and Televisa’s Mexican boxing-themed drama “Cloroformo.” UniMás will also serve as a broadcast home for Mexican National Team, Liga MX, CONCACAF Gold Cup 2013, FIFA Confederations Cup 2013 and World Cup 2014™ televised soccer coverage. This adds to holdovers from TeleFutura such as “Solo Boxeo” and “Contacto Deportivo,” a nightly sports wrap-up show. Also staying from TeleFutura are its slate of Hollywood feature films, dubbed from English to Spanish.

For more details, please visit HispanicAd.com

 

Latin America: The New Home Of Middle-Class Growth

By Adam R Jacobson

MIAMI — With many Americans lamenting the dwindling number of middle-class families, thanks to a prolonged recession that has ravaged retirement funds and savings accounts, marketers may wish to turn their eyes south. Latin America’s “C” group is hot, and there are plenty of middle-class growth opportunities for CMOs and brand managers in Brazil and other key countries.

In particular, 77 percent of those in the “C” group – traditionally middle-class families in the traditional A-E socioeconomic scale used across Latin America – believe their financial situation will improve in the next year.

The findings from Kantar Media, the research arm of global advertising industry giant WPP Group, were shared by Kantar vice president of business development Jimena Urquijo at a December 2 Versailles Breakfast Club event in Miami’s Little Havana.

Access to credit cards is the top reason why Latin America’s middle class is bulging, Urquijo notes. These consumers are also more aspirational, fueled by growth in internet use.

Meanwhile, Kantar also finds sports properties as a prime opportunity for marketers. According to Kantar, beer brands Brahma, Bohemia and Corona are the top three brewers in the Latin American sports arena, leading in benefits by teaming with an athlete, team or league. With Brazil ramping up for the 2014 FIFA World Cup and the 2016 Summer Olympics, this makes Brahma a key brand with lots of potential for increasing its market share.  Kantar data also show Ecuador and Peru as the strongest growth areas for brands to link with a sports property.

With middle-class consumers in Brazil and countries including Colombia, Mexico, Venezuela, Chile and Argentina overindexing for mobile phone use, engaging in travel, purchasing electronics, purchasing vehicles and financial services, companies in these sectors should increase their marketing efforts targeting those the “C” group, Urquijo says.

Among the other highlights from Kantar:

  • 28 percent of consumers access the internet from their smartphone.
  • 77 percent of consumers own a smartphone, compared to 50 percent in 2006.

“We expect smartphone usage to rise rapidly,” Urquijo says. However, marketers should take note of the high incidence of prepaid mobile phones, and the cost of data plans to smartphone users.

Speaking highly of Brazil, Urquijo believes Groupon-like sites and online banking are ripe for user growth, while newspapers and magazines have seen a significant shift of readership to their digital offerings. In particular, 12 percent of newspaper readers in the Latin American nations reviewed by Kantar only read the publications online.

Kantar conducted face-to-face interviews with 63,000 consumers in the “C” socioeconomic group; roughly one-third of the interviews took place in Brazil.

Wal-Mart On Multicultural Dollars: Destroy The Silo

Companies that seek to build relationship with Hispanic, Asian and African-American consumers should take their multicultural budget out of a silo and push it out to all of the company’s business units. That’s what Walmart Stores has done and what its senior vice president of brand marketing and advertising, Tony Rogers, advised. Speaking Tuesday at the ANA Multicultural Marketing & Diversity Conference in Miami Beach, Rogers believes such actions will force behaviors throughout all of a company’s divisions to change for the better, with all on the same page with respect to understanding the multicultural consumer.

To gauge performance throughout all departments, executives should set four or five annual objectives. Among them, Rogers said, is how your marketing efforts do against the multicultural audience. He also reminded his peers and supply-side companies to force discussions on identifying business insights, while continuing to drive business and sell product. “Companies that treat marketing as a discipline know how important and powerful this is,” Rogers said.

In other sessions on the second and final day of the conference, New York Times national correspondent explored identity and the recognition of mixed-race Americans – a fast-growing group throughout the Deep South, once the epicenter of segregation. Fueled by intermarriages, colleges including the University of Maryland at College Park now have the largest enrollment of mixed-race students than ever before.

Picking up on a topic explored in Monday sessions by AT&T executive Jennifer Jones, Time Warner Chief Diversity Officer Lisa Garcia Quiroz was set to explore further ways diversity can be key to business growth for a large company.

Other sessions on Tuesday include a presentation on Hispanic and African-American share growth from MillerCoors vice president of multicultural marketing Alpesh Patel, and afternoon breakout panels featuring Procter & Gamble Co. senior marketing manager Ida Chacón and Univision Communications senior vice president of brand solutions Graciela Eleta; and Post Foods brand manager for U.S. Hispanics Mike Foley with MV42 executive vice president Steven Wolfe Pereira.


For more coverage from the ANA Multicultural conference, visit www.hispanicad.com

Pepsico Connects With Shift To ‘Cultural Branding’

No more is Pepsico using multicultural marketing techniques to reach African-American and Hispanic consumers. Rather, the company’s brand units are now engaged in “cultural branding.”

Speaking this morning at the Association of National Advertisers (ANA) Multicultural Marketing and Diversity Conference in Miami Beach, Pepsi Bottling Co. CMO Simon Lowden noted that the company has brought “a reignition, or rebirth” to what had previously been multicultural branding. Displaying statistics that show Liquid Refreshment Beverage growth from 2010 to 2015 among Hispanics at 110 percent, Lowden called these projections “a major call-to-action for our business.” In the last year, Pepsico moved forward with such efforts as the rollout of a well-received Diet Pepsi television spot featuring Sofia Vergara and soccer icon David Beckham. It also launched the first spot produced by an African-American advertising agency to appear during the NFL’s Super Bowl telecast.

Javier Farfan, senior director of cultural branding for Pepsi Beverages America, noted, “We have to get out of this space of marginalizing our multicultural marketing efforts.” This includes placing the ‘new American mainstream’ at the core of Pepsico’s efforts, engaging consumers at both the national and hyperlocal level, and elevating product innovation to meet cultural needs. Lowden revealed that the popular apple-flavored soda Manzanita Sol will be imported from Mexico to high-density Hispanic markets in California, Texas and Florida to compete against brands including Sidral Mundet. “We can no longer accept general-market programs that don’t include African-American or Hispanic audiences,” Lowden concluded.

Other highlights from the first morning of the ANA Multicultural conference included the unannounced appearance of actor Edward James Olmos, who serves as a Hispanic market spokesperson for Farmers Insurance. Speaking of the importance of creating an emotional connection with consumers, Olmos spoke of his efforts with the Immigrant Archive Project, which Farmers is a lead sponsor.

At a breakfast presentation, People en Español publisher Monique Manso and president Michelle Ebanks revealed that the magazine, along with African-American female-focused title Essence, will offer full tablet-device versions of their respective publications starting in late December, with the February 2012 editions.

In opening remarks that officially kicked off the conference, ANA President/CEO Bob Liodice asked that marketers and advertising industry professionals embrace the philosophy that the multicultural market is “the new general market” and that we cannot continue to thinking of it as a separate segment of the overall consumer population. “Despite the hope for consistent change, marketers are making process,” he said, citing Coca-Cola, State Farm, McDonald’s and Best Buy as companies that have taken a lead in embracing multicultural consumers.

Other Monday sessions include a question-and-answer session with noted Latin music producer Emilio Estefan, and a discussion on diversity management presented by AT&T Inc. vice president of diverse markets Jennifer Jones.

 

I’m not a dreamer, and I’m not saying this will initiate any kind of definitive answer or cure to cancer. But I believe in miracles. I have to.” — Terry Fox. Humanitarian. Athlete. Cancer research activist.
7/28/58-6/28/81.

 

FeatherHeart Introduces Bridal-Themed Pieces for Canines With Official Launch of ‘Love Me. Love My Dog’ Brand

STYLISH, UNIQUE AND FULL OF GLAMOUR.
HANDMADE, ONE-OF-A-KIND PIECES … NOW FOR YOUR PET

COCONUT CREEK, FL — JANUARY 7, 2011. FeatherHeart, the pioneering creator of top-quality, unique accessories, in 2010 established itself as a premier producer of one-of-a-kind designs. For 2011, FeatherHeart founder Dannielle Kukar has set her sights on building on this success by launching brand with legs — four of them, actually.

LOVE ME. LOVE MY DOG, an extension of FeatherHeart, is set to make tails wag and heads turn. With all of the flair of her renowned designs for hats, fascinators and pins, Kukar has crafted the perfect pet accessory for the “dog parent” — the fashion-minded pet lover who treats their canine companion as a beloved family member.

From beautiful bridal-themed pieces that make your pet a welcome member of the wedding party to enjoyable, fun and imaginative everyday pieces, LOVE ME. LOVE MY DOG is the brand that speaks straight from the heart.

“As an award-winning graphic designer, creativity is my life,” notes Kukar, who created FeatherHeart in January 2010 following a successful career in fashion illustration and graphic design. “It is my intent to bring style and joy to the wearer, and have them feel that this is a piece that will be part of their lives for years to come.” Now, says Kukar, the joy and style exhibited in each LOVE ME. LOVE MY DOG design can be enjoyed by stylish women and  men, and their beloved pets alike.

Kukar, recently featured on WSVN-Channel 7 in Miami’s popular Deco Drive fashion and style program, uses her design experience to create the perfect balance of color and composition in her headpieces. “I combine feathers, in their natural form or dyed, with fabrics and crystals and other materials, some recycled or repurposed,” she notes. “The results are labor-intensive gallery pieces that are 100 percent hand-crafted and versatile.

Kukar’s Coconut Creek work studio may be where inspiration is fulfilled. But it is her everyday surroundings that oftentimes provide the spark — and key ingredients — to fulfillment. “My work area will never be pristine,” she says. “I like things lying around, so they can truly inspire me, and trigger me. Palm fronds were lying on the ground all over my community. I thought they were gorgeous … and I knew I was going to do something with them.” The palm fronds are integrated into one-of-a-kind cocktail hats, presently on exhibit at the Florida Craftsmen Gallery in St. Petersburg, Florida.

Featured items including the Gia Rock Star pet barrette, along with other FeatherHeart accessories, can be found on the FeatherHeart’s Etsy.com online shop, at http://www.etsy.com/shop/featherheartdesignsFor more about Dannielle Kukar and FeatherHeart, visit http://www.featherheartdesignsbydannielle.com.

CONTACT:           PALOMA KUKAR, 954-249-1568, featherheart@comcast.net
ADAM R JACOBSON, 305-532-2928, adam@jakeadams.net

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Adam R Jacobson: Ready To Make 2013 Ring For Your Business

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Like what you see? Want someone like Adam R Jacobson in your organization?

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Adam R Jacobson

Hispanic Market Research and Analysis
Radio-industry Marketing Communications

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A Case For A New Alternative: “Rock of the ’10s”

In March 2010, I wrote some commentary about KROQ and KYSR in Los Angeles and where “Modern Music” is headed.

Sadly, it headed into the dumper. But did it?

So-called Alternative music stations aren’t Alternative anymore. Nor are they modern. Most are now Classic Rock stations for Gen-X.

Yet there’s product out there. Somewhere. KCRW/Santa Monica offers some. Xfm 104.9 in London offers some. Even WFNX/Boston does.

That’s why I can’t stop thinking about this — we are reliving 1979-80 all over again when it comes to the future of rock music.

Some programming consultants will tell you Rock is dead.

I don’t believe it.

Even with large multiethnic audience, music cycles have proven rock will return.

We also forget that in Latin American markets like Lima, Active Rock never died. Same goes for Bogotá. Mexico City had a very successful Alternative station before it was ultimately shut down for a variety of reasons (98.5).
 
What I find fascinating is that the current trend of Modern Music skips over the 1990s, as if all the music I thought “destroyed” the format (Nirvana, Stone Temple Pilots, Green Day, Pearl Jam, etc.) are non-factors. Listen to some of the sounds from acts like Cut Copy, Arcade Fire and Matt & Kim – the influences are there.
 
So I experimented. What would a radio station sound like that focused on new music yet embraced the “cutting edge of rock” of the 1980s?

What market could it work in, successfully enough to start a trend?
 
Here is what I came up with:
 
107.5 THE POD
What’s Next For Houston
 
 
 
FLORENCE + THE MACHINE  You Got The Love
WEEZER Hash Pipe
A SILENT FILM You Will Leave A Mark
KEANE Under Pressure
MUMFORD & SONS Little Lion Man
BOB MARLEY & THE WAILERS Could You Be Loved?
KINGS OF LEON Sex On Fire
DEPECHE MODE Policy Of Truth
HURTS Wonderful Life
SILVERSUN PICKUPS Panic Switch
 
PHOENIX Lisztomania
NINE INCH NAILS Head Like A Hole
MGMT Kids
DIRTY HEADS f/ROME Lay Me Down
SPOON Got Nuffin
VAMPIRE WEEKEND A-Punk
THE XX Crystalized
NEON TREES Animal
CELEBRATE THE NUN Will You Be There?
 
GORILLAZ Feel Good Inc.
CEE LO GREEN Forget You
MUSE Starlight
MARINA & THE DIAMONDS Hollywood
FRANZ FERDINAND No You Girls
TIESTO f/TEGAN & SARA Feel It My Bones
UNDERWORLD Born Slippy
 
COLDPLAY Viva La Vida
BRANDON FLOWERS Crossfire
SUBLIME Badfish
ARCADE FIRE Ready To Start
CURE In Between Days
LINKIN PARK New Divide
M.I.A. Paper Planes
JULIAN CASABLANCAS 11th Dimension
 
MARK RONSON f/AMY WINEHOUSE Valerie
GOSSIP Heavy Cross
WEEZER I Want To
JANE’S ADDICTION Been Caught Stealing
MINUS THE BEAR My Time

________________________________________________
 
Here’s the problem: This may be cool for a person in their 30s seeking new music, a “Hot Adult Alternative” if you will.
 
But I cannot figure out how to program a Modern Music format for 12-34 year ols. Their is not enough product – or none at all – that could possibly lure them unless there is a heavy nostaglia movement going on. 
 
Yet perhaps “Hot Adult Alternative” is a way for stations in markets where there is heritage for Alternative and listeners have aged beyond the demo of the current station.

What are your thoughts? I’d love to get your feedback. Please leave them below.

ADAM R JACOBSON
Hispanic Market Media Strategist