Tag Archives: Hispanic business

Vinyl & Copy: Why Multicultural Agencies And Records Are So Alike

Several years ago, perhaps at a Speed Dating event or a networking Happy Hour somewhere in Los Angeles, guests were presented with a series of ice-breaker questions to help start the conversation. The question posed to me was, “What’s the one thing you own that you’ll never, ever get rid of?”

Without hesitation, I responded, “My record collection.”

My LPs and 45 RPM singles are some of my cherished possessions. For years, friends and colleagues couldn’t understand why I had transported—at significant cost—my collection across the country each of the three times I’ve relocated in the last 25 years. Furthermore, how could I possibly be investing in additions to a collection that was perhaps outmoded and arcane, given the rise of the compact disc and, following that, digital downloads and streaming services?

My answer is simple: The iPod and my iPhone are great for hearing music, but the record player is the best device for listening to music.

There’s a difference between hearing and listening. It’s time to demonstrate that difference to marketers, brand managers and C-suite executives. Much has been said and shared about the rapidly evolving Hispanic market. But, have the decision-makers been listening to what has been said, and are they making choices based on efficiencies, rather than conclusions derived from the largest amount of data ever made available to marketers about today’s U.S. Hispanic consumer?

In September 2015, a Pew Research Center analysis of U.S. Census Bureau data showed the immigrant share among each of the U.S.’s Hispanic origin groups in decline, affirming reports that immigration from Latin America—in particular, Mexico—is slowing.

The Hispanic Market Overview annual report has stated for the last several years that the U.S. Hispanic population is now being driven by births, rather than those who are foreign-born. Additionally, it should be emphasized that immigration is slowing but has not stopped. Far from it: the U.S. Hispanic population in 2000 was comprised of 14.1 million immigrants. By 2013, that number grew to 19 million.

A market of 19 million consumers should be an opportunity for brands who wish to establish themselves as a top choice when it comes time to make purchasing decisions. Remember, everyone shops. The recent Latino immigrant needs food, packaged goods, clothing, transportation, and health care information regardless of their financial status. The upscale Latino and Latino Baby Boomer are equally important.

Yet, marketers seem fixated on a Hispanic plan of action focused squarely on bilingual Latino millennials who can be targeted through the English-language media they consume.

Why? They’ve been spending too much time hearing how to do more through “total market” capabilities instead of listening to the experts and veterans who have modernized their agencies but have remained true to what works for today’s Latino consumer.

The aural quality of a record is richer, and deeper. One simply hears more. It’s imperfect, with the pops and hisses and skips on well-worn favorites. The U.S. Hispanic advertising agency of today is no different than a record. The people inside these businesses have the deepest and richest insight on Latino consumers, and are the perfect partners to work alongside a general-market agency.

According to Nielsen, sales of vinyl records grew by 30% in 2015, to 11.9 million, from 9.2 million in 2014. Music fans are rediscovering records.

It’s now time for marketers who have turned to the dreaded adaptation and translation approach to rediscover the value of Hispanic advertising agencies.

With an uncertain economy once again rearing its ugly head, and a presidential election that has put Hispanics in an understated role as ultimate decision maker, we’ve put on our thinking cap and our reading glasses to provide a Total Focus to Hispanic marketers and advertising agency executives on everything keeping you up at night—and everything keeping the lights on and the paychecks from bouncing.

Hispanic Market Overview 2016, presented by Lopez Negrete Communications, is now available for complimentary download at http://reports.hispanicad.com/reports/HMO2016/

As the industry’s key executives gather in Miami Beach for the 20th annual ahaa conference, this year bearing the name “The Future in Focus,” we hope this report generates conversation, thought and perhaps a little controversy. Congratulations to Leif Roll, VP of Marketing at State Farm, on being named Marketer of the Year. We’ve seen a lot from State Farm in the U.S. Hispanic market. But where is GEICO? Who is Progressive’s Latina counterpart to Flo?

We also single out Eric Reynolds, CMO of The Clorox Company, as Clorox has demonstrated an exceptional understanding of the Latino consumer through product development and subsequent marketing efforts that make the company a standout. Your lavender-scented products can be found throughout the Hispanic Market Overview ohana.

Please enjoy this seventh annual Hispanic Market Overview, presented by López Negrete Communications. As you are reading this, please listen to what is being said. Otherwise, they’re just words that you may be hearing, but not digesting.

Reading, while listening to your favorite record album, is highly recommended.

 

Adam R Jacobson

AHAA: Financial Services, Insurance Companies See Revenue Boost From Hispanic Ad Spend Bump

AHAA: The Voice of Hispanic Marketing released a new comprehensive study at the ANA Multicultural Marketing & Diversity Conference which reveals a positive connection between corporate ad allocation targeting the Hispanic market and overall revenue growth for the Financial Services and Insurance sectors. According to the new study, a 5 point shift in advertising allocation from English to Hispanic media results in a Total Market revenue boost of 6.4 points in Revenue CAGR for the Financial and Insurance sectors.ahaa13

 

“This new information is compelling because the data indicates that the Hispanic market can be a big determinant in corporate success,” said Carlos Santiago, chair of AHAA Research Committee and CEO of Santiago Solutions Group.  “Financial Services and Insurance companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors – investing in Hispanic marketing is a clear strategy in achieving both these objectives.”

Financial/Insurance companies shifted almost $100 million in four years to Hispanic Media, at twice the rate of English media increases. Shifts in Hispanic Dedicated Allocation alone explain about 22 percent of the category’s change in topline revenue growth. The Financial/Insurance category spends a total of $352 million against Hispanic media. On average, it allocates 5.5 percent, or $10.1 million, of its advertising budget to Hispanic – this is a 35 percent increase since 2010. State Farm leads the charge in both investment percentage against Hispanic dedicated efforts at 22 percent and total Hispanic ad spending at $109 million. Wells Fargo, Nationwide, Allstate, JPMorgan Chase, American Family, AFLAC and MasterCard are close behind, setting the pace of the sector.

“AHAA’s research proves that companies applying a Total Market approach with well-funded in-culture Hispanic efforts are more likely to achieve greater overall growth than those marketers integrating Hispanics into their current English efforts,” said AHAA Chair Linda Lane Gonzalez, president of viva partnership. “The most successful campaigns lead with consumer insights that are then integrated, segmented and aligned – that is the winning combination driving superior growth performance.”

Methodology
Data was collected from Nielsen Monitor Plus which tracked over 340,000 companies’ advertising expenditures in English and Spanish.  This data was analyzed by Santiago Solutions Group for AHAA.  SSG divided companies into 5 Tiers according to the percent allocation to Spanish/Bilingual media: Best-in-Class (more than 14.2%), Leaders (6.4%-14.2%), Followers (3.6%-6.3%), Laggards (1.0%-3.5%), and On the Sidelines (Less than 1%). SSG also segmented the Top 500 Overall Spending (English + Spanish) Companies for years 2010-2014, thus permitting the analysis of trends in the marketplace. Ad Spend Includes spending in Network TV, Spot TV, Cable TV, Radio, Magazines, Newspaper & FSI. It excludes B2B, Display, Outdoor and Cinema.

Olympics Boost Spanish-language TV As Kantar Reports Near-Flat U.S. Ad Growth

Tepid overall growth in U.S. advertising expenditures was seen in the second quarter of 2014. Yet Spanish-language television enjoyed a stellar Q2–undoubtedly thanks to the 2014 Winter Olympics in Sochi, Russia.

Total advertising expenditures increased 0.7 percent in Q2 2014, to $35.6 billion, according to data released today by Kantar Media. For the six-month period ending June 30, ad spending grew 3.1 percent.

“The slow growth rate of ad spending in Q2 is payback for the surfeit of money in Q1 that was pulled forward to fund Olympics budgets,” said Jon Swallen, Chief Research Officer at Kantar Media North America. “Our analysis shows that Olympics advertisers reduced their year-over-year Q2 spending by more than 4 percent while non-Olympics advertisers posted a 2 percent increase. The latter is more indicative of core ad market performance at the midyear point.”

Among the key takeaways for Hispanic media:

* Spanish -language TV spending was up sharply by 41.5 percent, with a big assist from the first three weeks of the World Cup tournament at the end of June.

* All other forms of Spanish-language media suffered from a shift in dollars due to the Olympics, with Hispanic magazines down 5.9 percent in Q2 2014, versus the same period in 2013. Hispanic newspapers also saw an ad-dollar decline in Q2 2014, experiencing a 4.5 percent dip. Hispanic local radio suffered an 11 percent year-over-year decrease in Q2 2014.

Overall Spending Leader Trims Its Budget

Procter & Gamble easily held onto its position as the largest advertiser in U.S. Hispanic and in the total market, although it lowered spending by 17.4 percent to $1.32 billion. After a small decline in Q1, P&G slashed expenditures by almost one-third during Q2. The latter comparison is against an atypically high volume of year-ago spending. Q2 is also the end of P&G’s fiscal year and ad budgets may have been sacrificed to improve the balance sheet and meet financial targets, Kantar Media reports.

 

Similarly, automotive spending had been up in Q1 but contracted in Q2. Kantar focused on the positive, showing net gains for 1H 2014: General Motors spent $928.8 million in the six-month period, an increase of 22.6 percent. The company continues to shift its advertising allocation from passenger cars toward SUVs and pickup trucks–big items among Hispanic consumers– in response to market sales trends and the opportunity to earn bigger profits. Toyota Motor raised its ad expenditures 5.5 percent to $599.8 million in 1H 2014; August 2014 sales were strong for Toyota thanks to incentive programs in key markets such as Miami, putting the automaker far ahead of rival Honda for the month. Kantar did not break out the top 10 spenders for Hispanic media.

For more details, please visit our news partner HispanicAd.com:

http://hispanicad.com/agency/business/us-advertising-expenditures-increased-07-q2-2014

 

 

The HMO Interview: Ingrid Otero-Smart

HISPANIC MARKET OVERVIEW 2014 – InFocus Excerpts

Hispanic Market Overview 2014, presented by Lopez Negrete Communications, is now available via download at no charge to all via HispanicAd.com. We thank the more than 7,000 industry professionals who have downloaded this year’s report; 4A’s members now enjoy access to the report, extending our partnership with the industry organization.

Due to the size of the PDF file, iPad and iPhone users have been unable to view the document. Therefore, AdamRJacobson.com will be offering select excepts from this year’s report in the coming weeks as a benefit to industry professionals.

We resume our series of excepts with a Q&A session featuring Ingrid Otero-Smart, CEO of Casanova Pendrill.

 

THE HMO INTERVIEW: INGRID OTERO-SMART

The phrase ‘total market,’ in the eyes of Ingrid Otero-Smart, president and CEO of Costa Mesa, CA-based shop Casanova Pendrill, has emerged as a “flavor of the month” topic that has captured the attention of anyone interested in attracting Hispanic consumers.

Otero-Smart prefers to talk about “cross-cultural marketing.”

“There are so many models and definitions that it can be confusing,” she says. “Our job is to help our clients navigate the murky waters of change and come up with the most effective model.”

By looking at cross-cultural marketing, Casanova Pendrill goes from the siloed model of GM, Hispanic, Asian, and African-American agencies to an integrated approach. By doing so, the agency can best identify universal cues and bring them to life in culturally specific stories.

“Cross-cultural marketing starts with the ethnic segments to develop effective communications that will cross over to the general market, instead of the other way around,” she says. “This model is reflective of the new U.S.—it is inclusive and embraces cultural nuances.”

But is that “total market”?

“It is interesting for us to see all the talk about TM now, when Casanova has been doing this for years for clients such as the U.S. Army, Hot Pockets, Denny’s, and General Mills,” she says. “A great example of this is the work we have been doing for Nature Valley for the past five-plus years, where what started as the Hispanic strategy eventually became the ‘total’ strategy since it was based on a universal insight.”

How does the agency then ensure that a client’s pitch, and subsequently a client’s work, meets their “total market” objectives?

“It is imperative that we start with an in-depth review of the brand’s general market strategy,” she says. “Understanding how they got to that point and what the essence of the brand is allows us to develop a compelling messaging strategy that lives within it.

“Our philosophy has always been that our consumer does not live in a bubble. They may prefer to speak Spanish and consume Hispanic media, but they are also exposed to the general-market messaging. The brand has to stand for the same values no matter what language we are communicating in.”

Does the client understand truly that “total market” efforts are inclusive of Spanish-language advertising and marketing initiatives?

“Clients in general understand this … at least the smart ones do,” she says, “A total market strategy does not preclude the use of Spanish-language ads. On the contrary, you cannot deliver the total market without Spanish-language advertising.”

Interestingly enough, one of Casanova Pendrill’s clients just asked the shop to develop the total market plans for one of their brands. “A Hispanic agency lives fluidly on both worlds,” Otero-Smart notes. “Therefore we are the total market. The GM agencies as a whole live in one dimension, so it is more of a struggle for them to think this way. For us it is a way of life. For them it is a huge cultural shift.”

Does this explain why the Hispanic market agency continues to remain important?

Otero-Smart notes, “Having worked in this market for over 20 years, I have seen the general market agencies come and go as it relates to their interest and involvement in our space and have heard the naysayers predict the demise of the Hispanic agencies for a while. We are still here and stronger than ever.

“The Hispanic agencies have the talent, experience and expertise to continue to deliver the most effective programs for our clients. We live fluidly in both worlds, while this requires a significant adjustment on the part of the general market agencies. As we have seen through the years, they do not have the patience, passion or commitment to stick with it. They may have more resources than Hispanic agencies do, but they are not well-suited for this task.”

Meanwhile, Otero-Smart envisions a future where Spanish-language media will continue to have a strong role in the lives of U.S. Latinos. “Connecting with our consumers goes beyond language and the Hispanic media channels understand this,” she says. “While immigration may continue to slow down, this does not mean that the use of Spanish will disappear. In 2024, there will still be a strong Univision, there will still be many Spanish-language radio stations, and we will still be attending Calle Ocho.”
HMO

THE HMO INTERVIEW: Alex Lopez Negrete

HISPANIC MARKET OVERVIEW 2014 – InFocus Excerpts

Hispanic Market Overview 2014, presented by Lopez Negrete Communications, is now available via download at no charge to all via HispanicAd.com. We thank the more than 3,000 industry professionals who downloaded this year’s report within the first 24 hours of its release.

Due to the size of the PDF file, iPad and iPhone users have been unable to view the document. Therefore, AdamRJacobson.com will be offering select excepts from this year’s report in the coming weeks as a benefit to industry professionals.

We continue our series of excepts with a Q&A session from Houston featuring Alex Lopez Negrete.

 

THE HMO INTERVIEW: ALEX LOPEZ NEGRETE

In mid-March 2014, at a Miami event featuring one of the Latin world’s biggest recording artists, no one had many positive things to say about the U.S. Hispanic market. One familiar face shared the news that she had shifted agencies and had “happily” left the U.S. Hispanic market to focus on media buying and planning in Latin America. A longtime Hispanic market executive lamented that the market was still slow, and things were moving glacially. A third bemoaned layoffs at her company. A fourth person noted that he was actively looking for work in the “general market.”

Has the U.S. Hispanic market hit its peak? Are years of gloom and doom ready to set in?

If you’ve spoken with veteran Hispanic advertising industry executive Alex López Negrete lately, the answer is clearly, and emphatically, no.

“It’s been a crazy, wonderful year full of growth!” says Negrete, who oversees Houston-based Lopez Negrete Communications (LNC), a full-service Hispanic-focused multicultural agency that in 2015 will celebrate its 30th anniversary.

Among the highlights from the last 12 months: In June 2013, Verizon Communications announced that it had decided to consolidate its Hispanic market advertising efforts by awarding all strategic planning, creative, and digital responsibilities for Verizon Wireless from GlobalHue to LNC. Verizon’s relationship with LNC dates to October 2010, when it shifted its estimated $50 million U.S. Hispanic non-wireless business from GlobalHue.

In October 2013, LNC, which already has a Los Angeles outpost, opened the doors to its New York City office. Why? “I was drunk,” López Negrete says with a laugh.

“Connectedness to our clients and our community has always been the hallmark of our agency, but it is also a game of scale and access,” he says. “Having a New York presence was the next level of evolution for the agency, and having a large client in Verizon Wireless allowed us to achieve swift growth as a full-service agency. We’re very happy with how we are growing.”

With Bank of America a client now in its 21st year with LNC and Walmart set to celebrate 20 years with LNC next year, the agency has thrived with a diverse assortment of companies that have committed to reaching U.S. Hispanic consumers by directly communicating with them. Among LNC’s other clients are Shell, AARP, Pernod Ricard, Dr Pepper Snapple Group and hulu.

López Negrete is pleased that the CPG category remains strong, but hopes that pharmaceutical companies will “get serious about the Hispanic market” and increase their targeted marketing initiatives.

At the same time, López Negrete has worked hard across his agency’s departments to ensure that their client’s “total market” objectives are met. Asked how LNC ensures that their client has met its “total market” desires, López Negrete says, “It is the question we ask ourselves. “Everyone is confused about the ‘total market.’ Is it about the condition of the market? Is it about the approach to reaching the total market? Is it the ‘how’ to reach the total market, which is something like high school sex in that everyone talks about it but no one really does it?”

López Negrete begins to tackle the difficult question of how his agency defines what the “total market” is by first addressing the condition of the U.S. Hispanic market and the overall advertising landscape of today, compared to two decades ago.

“In 1995, we had the ‘general market’ and within that niche markets with some crossover messaging,” he says. “Today, these ‘little planets’ that represented the niche markets are now really big and has reshaped our reality of what the ‘general market’ is.”

Specifically, López Negrete sees several key things that brought today’s focus on “total market” strategies to what he believes are “hysterical levels.” First on his list is the redefinition of what is mainstream in the America of 2014.

He says, “The demographic reality of today’s ‘general market’ hit everyone square in the eyes. From a cultural, social, and economic perspective, these ethnic groups of 20 years ago now define what is now mainstream.” As a result, there has been a blurring of the lines in mainstream media, with growth in multicultural audiences and marketing efforts that target these consumers, López Negrete adds.

Second, he notes, “Corporate America has an insatiable thirst for growth, and the only growth area out there is the multicultural consumer—specifically Hispanic. But marketers are confused, because there are more options than ever before, and Corporate America has always wanted nice and easy solutions.”

That’s where the concept of “total market” initiatives get muddied. “We have the general-market agency out there exclaiming, ‘We can do it all!’, with one strategy, one overarching human truth, and a plan to solve the complex equation of how to best target the Hispanic consumer. It seems like part of the market is going to embrace adaptation and this ‘all for one’ approach, but to me it sounds like the 1980s and early 1990s all over again. Effectiveness and efficiency are not the same thing!”

López Negrete wants marketers to understand that today’s Latino consumer makes purchasing decisions based on their freedom of choice, and with more linguistic choices than ever they are continuously communicating in both Spanish and in English. Thus, he is confounded by the idea that “big blanket” broadcasting-focused initiatives can ultimately prove successful in a world where one-on-one marketing is bigger than ever.

That’s not to say using mainstream media to superserve a target audience while also appealing to all consumers can’t prove successful. López Negrete singles out Miami-based Alma, led by president and chief creative officer Luis Miguel Messianu, for its groundbreaking McDonald’s spot—Los Primeros Clientesthat aired on ABC during its March 4, 2014 telecast of The Oscars.

The 30-second commercial features a Hispanic teen who is shown on his first day at McDonald’s, working the drive-thru window and taking orders in English. His first customers? Mom and Dad, who are shown ordering in Spanish. Narration at the end of the commercial is done in Spanish.

“This succeeds because McDonald’s is being relevant to Hispanic audiences without alienating other audiences,” López Negrete says. “It’s a flat-out wave to Latino audiences on a night when Mexico got its first Best Director award [for Alfonso Cuarón].”

López Negrete laments that economic factors will lead to the continued use by some marketers of adaptations and translations of English-language creative designed for the general market. But, he’s certain more marketers will see big gains that figure out how to best carve out a “total market” strategy—or whatever the proper name may be.

“I don’t know if the term ‘total market’ is appropriate,” López Negrete says. “It’s more of an omnicultural market, where different cultures interact and absorb from one another without losing their identity. And, more and more, we’ll need to have the Hispanic agency as ‘the tour guide’ to the Hispanic market, being at the table from the very beginning. We are now in the decision-making process, and that’s what has changed from 20 years ago. Having influence, early in the process, has spread like never before.”

But, López Negrete warns, it takes clients that are truly committed to Hispanic marketing to not botch what transpires next.

“When the ‘sausage is made,’ the follow-through isn’t quite there despite the client’s good intentions,” he says. “For the agency, the task is to understand the brand essence, and show original work that does not betray that. You do not want to create brand chaos, yet the work has to unequivocally be Latino.”

While López Negrete is confident of the Hispanic market’s immediate future, he has no easy answers for where the market may be in 10 years, when the fuel behind the growth in the Hispanic population—U.S.-born Latino children—become consumers who may not need Spanish-language media.

“I’ve had some sleepless nights,” he admits. “We may not know where the market will eventually go, but we should help ourselves in getting to go where are consumers are going. The last thing we should do is help them go somewhere else.”

HMO 

THE HMO INTERVIEW: Stacie de Armas, Nielsen

HISPANIC MARKET OVERVIEW 2014 – InFocus Excerpts

Hispanic Market Overview 2014, presented by Lopez Negrete Communications, is now available via download at no charge to all via HispanicAd.com. We thank the more than 3,000 industry professionals who downloaded this year’s report within the first 24 hours of its release.

Due to the size of the PDF file, iPad and iPhone users have been unable to view the document. Therefore, AdamRJacobson.com will be offering select excepts from this year’s report in the coming weeks as a benefit to industry professionals.

We begin our series of excepts with a Q&A session from Los Angeles featuring Nielsen’s Stacie de Armas.

___________________________________________________________________________________________________

HISPANIC MEDIA MEASUREMENT

It’s hard to believe that Arbitron doesn’t exist anymore.

The venerable radio industry ratings company in 2013 entered into a merger acquisition
agreement with Nielsen, and on September 20 the Federal Trade Commission
approved its $1.26 billion acquisition of the Columbia, MD-based operation.
For Hispanic radio executives, the end of Arbitron means an end to complaints about
sample size, language preference, country of origin requests, and ways to ensure that
the PPM accurately measures Latinos’ exposure to AM and FM radio stations and their
respective audio streams.

Or does it?

Stacie de Armas, an Arbitron veteran who now holds the title
of VP of community alliances, events and engagement, at
Nielsen, agreed to a Q&A session conducted from her Los
Angeles office.

Here are some of the highlights of our discussion:
HMO: What is the biggest concern among your clients with
respect to Hispanic media measurement? Are they vocal in
seeking a single metric for their media buying and planning?
Or, is it about radio ratings, TV ratings, digital impressions, etc.
independently and their ability to capture Hispanic
consumers?

STACIE: Our clients and the market are enthusiastic about the changes that have come
to Nielsen Audio recently and the changes that are forthcoming. For example, in the
second half of 2013, there were improvements to adults 25-34 representation from a
special action plan implemented in summer 2013, and we have seen an average
proportionality index increase.

Equally important, Nielsen in the process of implementing an overall boost in PPM
sample size of approximately 7%; better sample representation of Hispanics and
African-Americans; and improved in-station monitoring of the PPM encoding system.

These improvements were requests that came directly from our clients and we are
pleased to be rolling them out.

HMO: Language preference and weighting, as a result of population changes, sent
some radio operators into a tizzy in some markets because it seemed a particular metro overnight went from Spanish-dominant to English-dominant. What is Nielsen Audio doing to educate the market on these adjustments?

STACIE: Annually, there is an update to language usage estimates for English-dominant
and Spanish-dominant Hispanics. The most recent one was in January 2014. There was
some movement in the Spanish dominant figures over the continental U.S. in the past
year, based on the most recent population estimates. Nielsen’s Measurement Science
organization has a dedicated group for creating and analyzing universe estimates, and
they are continually reviewing these figures to ensure they are reflective of the
population. Nielsen makes this data available to our subscribing clients for review in
applicable markets.

HMO: Is Hispanic radio still, in the minds of advertisers and/or operators, “Spanish-language radio”? At a recent industry conference there seemed to be no delineation between the two, which I find worrisome.

STACIE: We can’t speak for advertisers or operators, but we can say that we have begun to hear discussions about advertisers wanting to touch Latinos with ‘cultural relevance’. That is to say, that advertising that appeals to Latinos comes in many forms, including Spanish, English, and in a bilingual fashion. But cultural relevance is playing an increasingly important role.

Advertisers say that one of the most important elements of great creative targeted toward Latinos is that it resonates, has significant cultural relevancy, and can be delivered in any language. Having said that, Hispanics still listen to more radio than any other demographic group.

Nationwide, more than 93% of all Hispanics age 12 or older (or 40 million listeners) use radio every week. Regional Mexican has the largest share of listening among Hispanics.

HMO: What can you say with respect to Hispanics tuning to radio, and Hispanics listening to AM and FM stations via a digital or online platform? What are the exciting things we are seeing with respect to trends and growth?

STACIE: There is no doubt that Hispanics consume audio through a variety of platforms both over-the-air, and online via smartphones, tablets, notebook/desktop computers and digital car dashboards. It should be noted that Hispanics are adopting smartphones at a higher rate than any other demographics group: Nearly 3 in 4 Latinos own a smart phone.

Mobile phones, among other options, are heavily used to stream audio and video content. We know that 37 percent of Latinas stream audio on their phones. This is an exciting time for radio as they fine tune their various platforms to resonate with this key group.

HMO:  With Arbitron’s absorption into Nielsen, the ability to look at Hispanic media consumption is stronger than ever. But have we reached a point where we must break out Hispanics who speak Spanish versus Hispanics who speak English on all reports?

STACIE: For many marketers, radio groups, television and cable networks and others, language usage and preference among Latinos is an important metric that we supply in most of our reports. Country of Origin information was added for Hispanic Radio markets in 2008 and can be found by subscribers in both the eBook and in software applications.


HMO


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

Latin Trade: Air Alliances Battle for the Flying Public

Air Alliances Battle for the Flying Public

Mega-mergers and new alliances forged in the past six months have given Latin American business travelers a score of additional options. But as this merger era underscores, competition is fierce. The fight to fill seats with executives has shifted into high gear.

Adam R Jacobson provides a detailed update on airline consolidation and the rapid changes facing business and leisure travelers in Iberoamerica in the latest issue of Latin Trade magazine.

To view the complete article, click here.