Hispanic - The Changing Media La

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Hispanic - The Changing Media La Powered By Docstoc
					The Hispanic Marketplace




                           1
 Demographic &
Geographic Trends




                    2
      U.S. Hispanic population has grown
      35.6% from the 2000 Census to the
         July 1st, 2009 Census Update.

           Now totaling 48.4 million, or
          15.8% of the total population,
         Hispanics are the largest minority
               group in the nation.



                                                                    3
Source: U.S. Census Bureau Annual Population Estimates, June 2010
U.S. Hispanic Population Will Continue to Boom


 Year                          Hispanic                               Total U.S     Hispanic % Total

 2000                       35,622,000                           282,125,000              13
 2010                       47,756,000                           308,936,000              15
 2020                       59,756,000                           335,805,000              18
 2030                       73,055,000                           363,584,000              20
 2040                       87,585,000                           391,946,000              22
 2050                    102,560,000                             419,854,000              24




                                                                                                       4
   Source: Advertising Age Hispanic Fact Pack 2009, U.S. Census Bureau, June 2010
    U.S Hispanic Population Distribution
             by Place of Origin
                                        Dominican
                                          2.8%
            Other Hispanic
               17.7%




Cuba 3.4%

 Salvadoran                                         Mexico
    3.1%                                             64%

   Puerto Rico
      9%




                                                             5
     Source: Census Bureau, June 2010
Hispanic Population is Younger than the U.S.
Population – Nearly 50% Under 24 Years Old

                                         % Hispanic                      % Total U.S.        Index of
  Population                             Population                      Population     Hispanic To Ttl U.S.

 Under 5 years                               5.83                           3.49              167
 5 to 13 years                               8.55                           6.10              140
 14 to 17 years                              3.42                           2.80              122
 18 to 24 years                              7.8                            6.9               113
 25 to 44 years                              5.85                           5.15              114
 45 to 64 years                              8.68                          14.40               61
 65 years and over                           2.93                           7.55               39
 Median age                                 27.4                           38.3                71



                                                                                                               6
     Source: U.S. Census Bureau Annual Population Estimates, June 2010
 Hispanics Account for Over 25% of the
       Population in Four States
                                          Hispanic                      % Ttl U.S.        Hispanic as % Ttl State
State                                    Population                 Hispanic Population         Population

California 13,681,375                                                       28.3                 37.02
Texas       9,148,056                                                       18.9                 24.75
Florida      3,992,297                                                       8.3                 10.80
New York     3,274,385                                                       6.8                  8.86
Illinois     1,968,599                                                       4.1                  5.33
Arizona     2,031,650                                                        4.2                  5.50
New Jersey   1,452,824                                                       3.0                  3.93
Colorado     1,018,204                                                       2.1                  2.75
New Mexico    915,738                                                        1.9                  2.48
Georgia        819,887                                                       1.7                  2.22

                                                                                                                    7
        Source: U.S. Census Bureau Annual Population Estimates, June 2010
Purchasing Power




                   8
Hispanics are an Influential Force in the U.S.
            Consumer Economy
  According to estimates from the University of Georgia’s
  Selig Center for Economic Growth:
     Hispanic buying power will grow from $212 billion in 1990, to $978
      billion in 2009, to over $1.3 trillion in 2013.
          The 2009 value will exceed the 2000 value by 100% - a percentage
           gain far greater than the 45% increase in non-Hispanic buying power.
     This substantial growth is supported by two major factors: favorable
      demographic growth and the increasing amount of Hispanic
      business owners.
          The rate of growth of Hispanic-owned businesses (+31%) between
           1997 and 2002 was triple that of the national average growth (+10%)
           for all businesses.



                                                                                            9
       Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
 Top 10 States Account for 80% of
      Hispanic Buying Power
                      State                                       Totals in Billions

            1         California                                        $   253.0
            2         Texas                                             $   175.0
            3         Florida                                           $   101.0
            4         New York                                          $    76.0
            5         Illinois                                          $    43.0
            6         New Jersey                                        $    37.0
            7         Arizona                                           $    31.0
            8         Colorado                                          $    21.0
            9         New Mexico                                        $    18.0
           10         Georgia                                           $    15.0

                                                                                       10
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
Media Usage




              11
Top 10 Hispanic Designated Market Areas
                                                                                                     Hispanic %
                                                             Hispanic                      Total       of Total
                                                              TV HH                        TV HH        TV HH
         Los Angeles                                        1,854,810                5,647,440         32.8
         New York                                           1,242,160                7,391,940         16.8
         Miami-Ft. Lauderdale                                  658,490               1,536,020         42.9
         Houston                                               549,890               2,050,550         26.8
         Dallas-Fort Worth                                     488,150               2,435,600         20.0
         Chicago                                               485,270               3,469,110         14.0
         San Antonio                                           382,990                     792,440     48.3
         Phoenix                                               381,180               1,802,550         21.1
         San Francisco-Oak-San Jose                            377,730               2,419,440         15.6
         Harlingen-Weslaco-Brnsvl                              291,220                     338,550     86.0



*Percent of Hispanic households where only or mostly Spanish is spoken by all persons 2+

                                                                                                                  12
          Source: Advertising Age Hispanic Fact Pack 2009; Nielsen Media Research Jan. 2009
Top Primetime Network TV Programs Among
   Hispanic Viewers: Spanish-Language
        Among Hispanics, the Top 34 Shows are on Spanish Language Television. The First English Language Show
                          doesn’t appear until rank 35 & only 10 of the top 100 programs are EL
                                                                                                 May 2009
                                                                                   Hispanic      Avg. Hisp.    Avg. Hisp.
 Rank* Program [Day]                                          Network              HH RTG        HH (000)     VWRS (000)

 1    Mañana Para Siempre [Tue]                               Univision               22.9         2,904        5,132
 35   American Idol [Wed]                                        Fox                    6.8           864       1,336
 47   American Idol [Tue]                                        Fox                    6.0           765       1,179
 58   Grey’s Anatomy [Thu 9pm]                                   ABC                    5.6           707       1,059
 62   NBA Playoffs on ABC           [Sat 3 (Special) 05/23]      ABC                    5.1           649       1,057
 63   Dancing with the Stars                                     ABC                    5.0           626         900
 70   Dancing with the Stars Results                             ABC                    4.3           547         861
 77   So You Think You Can Dance [Wed]                           Fox                    4.0           510         801
 79   House                                                      Fox                    4.0           501         768
 80   Heroes                                                     NBC                    3.9           498         699
 85   So You Think You Can Dance [Thu]                           Fox                    3.8           484         756

         *Ranked among all Hispanic viewers
        **The top 34 shows are on SLTV
                                                                                                                            13
        Source: Advertising Age Hispanic Fact Pack 2008; Nielsen Media Research 4/27 – 5/31/09
Top U.S. Spanish-Language Radio Formats


                   Top Radio Formats Among Hispanics (A 18+)




  Format                                               Listeners
 Mexican regional                                     12,163,000
 Spanish contemporary                                 8,174,700
 Spanish adult hits                                   6,200,500
 Spanish tropical                                     3,723,600
 Latino urban                                         2,905,700
 Spanish news, talk                                   1,654,300
 Spanish variety                                      1,150,600



                                                                   14
    Source: Advertising Age Hispanic Fact Pack 2009
Hispanics use Electronic Media for a Variety
                of Reasons




                                                                                                       15
    *Average hours Hispanics spend weekly.
    Source: Advertising Age Hispanic Fact Pack 2009; Spring 2008 MRI Survey of the American Consumer
Hispanics are Highly Engaged with Mobile
        Multimedia Applications
           Hispanics 18-34 comprise 51.5% of the total Hispanic mobile population

                                                       Hispanic Mobile      All US Mobile
Activity                                                 Subscribers         Subscribers

Watched video                                               6.7%               3.1%
Listened to sideloaded music                                6.8%               3.2%
Accessed news/information via browser                      18.8%               9.6%
Played a downloaded game                                   14.4%               9.0%
Accessed application                                       32.9%              18.8%
Sent photo or video                                        26.8%              15.3%




                                                                                            16
     Source: Cellular-news 5/14/07; M:Metrics Survey
Spanish Language Ad Spending




                               17
               Hispanic Media Ad Spending
                                                   (Millions)

Medium                                                                  2008      2007    % CHG

Network/national TV                                           $1,807.3         $1,789.4    1.0
Local TV                                                         707.4            707.0    0.1
National radio                                                   221.8            221.3    0.2
Local radio                                                      529.2            524.1    1.0
National newspaper*                                              124.0            123.8    0.2
Local Newspapers*                                                186.2            185.7    0.3
Internet                                                         225.5            179.9   25.4
Magazines                                                        115.4            110.6    4.3
Out-of-home                                                       86.9             86.2    0.8
TOTAL                                                          4,003.7         3,927.9    1.9


                                                                                                  18
    *Excluding Classified
    Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence
    Top Ad Spending Categories in
           Hispanic Media
                                                                  2008 U.S. Gross Measured Ad Spending ($000)
Category                                                              2008                    2007     % Chg

Telecommunications & Internet                                     $659,817                  $563,515     17.1
Retail                                                              612,428                  589,716      3.9
Automotive                                                          571,431                  714,868    -20.1
Restaurants                                                         304,138                  281,188      8.2
Food, beverages & candy                                             297,874                  302,638     -1.6
General Services                                                    280,942                  248,809     12.9
Personal Care                                                       263,981                  229,714     14.9
Movies, recorded video & music                                      252,993                  274,131     -7.7
Insurance                                                           205,135                  154,274     33.0
Medicines & remedies                                                169,266                  203,564    -16.8




                                                                                                                19
         Source: Advertising Age Hispanic Fact Pack 2009, 7/28/09; TNS Media Intelligence
  Top 10 Advertisers in Hispanic Media
                             (Measured U.S. Media Spending)


                                                                2008
  Marketer                                               Ad Spending ($000)           %Chg

Procter & Gamble Co.                                               $183,720           15.4
Lexicon Marketing                                                    138,588          -36.5
AT&T                                                                109, 411             -8
Verizon Communications                                               101,995           27.8
McDonald's Corp.                                                       94,300           4.7
Johnson & Johnson                                                      93,930         21.3
General Motors Corp.                                                   92,978          -6.7
Broadcasting Media Ptrnrs (Univision)                                  90,869         -18.8
Toyota Motor Corp.                                                     88,851          8.3
DirecTV Group                                                          78,342           NA

                                                                                              20
    Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence
     Top 10 Spanish-Language Spot TV
               Advertisers
                                                                2008
  Marketer                                               Ad Spending ($000)           % Chg

DirecTV Group                                                     $74,683               NA
AT&T                                                                 61,463            22.6
Verizon Communications                                               27,891            51.6
Nissan Motor Co.                                                     25,217            -2.7
Ford Motor Co.                                                       24,391            -9.4
Toyota Motor Corp.                                                   21,137            35.1
Broadcasting Media Prtnrs (Univision)                                17,908           -29.1
Chrysler Group                                                       17,642             -26
Yum Brands                                                           15,004           -18.8
McDonald’s Corp.                                                     14,549            -0.3

                                                                                              21
    Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence
  Top 10 Spanish-Language Network TV
               Advertisers
                                                                 2008
   Marketer                                               Ad Spending ($000)           % Chg

Procter & Gamble Co.                                                 $165,269           18.2
Lexicon Marketing Corp.                                                138,198          -35.5
Johnson & Johnson                                                        82,600         22.5
General Motors Co.                                                       76,507         12.3
McDonald’s Corp.                                                         74,474           7.2
Verizon Communications                                                   64,448         20.7
Toyota Motor Corp.                                                       63,145           7.9
Wal-Mart Stores                                                          61,579         10.2
Broadcasting Media Prtnrs (Univision)                                     60,710         -3.4
State Farm Mutual Auto. Ins. Co.                                          57,472        98.6


                                                                                                22
     Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence
Top 10 Hispanic Newspaper Advertisers

                                                               2008
 Marketer                                               Ad Spending ($000)           % Chg

 Verizon Communications                                                    $6,085     95.5
 Interbond Corp. of America                                                 5,651      6.8
 Gobierno del Estado/Chihuahua                                              3,584     11.1
 JPMorgan Chase & Co.                                                       3,427     82.4
 Bank of America Corp.                                                      3,350     31.2
 Skyland Communications                                                     3,252      NA
 Macy's                                                                     2,689    -16.3
 Sears Holdings Corp.                                                       2,627    -13.7
 Broadcasting Media Partners                                                2,483     13.1
 Target Corp.                                                               2,475      8.5


                                                                                             23
   Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence
Top 10 Hispanic Internet Advertisers

                                                               2008
Marketer*                                                Ad Spending ($000)         % Chg

Broadcasting Media Partners                                        $9,463            -55.3
Sprint Nextel Corp.                                                  2,613           -43.6
CareerBuilder                                                        2,308            6.4
IAC/InterActiveCorp                                                  2,280           -10.1
Experian Group                                                       2,152             NA
Verizon Communications                                               1,931           -34.9
Grupo Televisa                                                       1,801             NA
Los Angeles Auto Show                                                1,769           -59.1
Hispanic Credit Solutions                                            1,367            -3.3
L'Oreal                                                              1,297           60.3

 *Excludes paid search and broadband video
                                                                                             24
  Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence
Top 10 Hispanic Spot Radio Advertisers

       Marketer                                            2008 Ad Spending ($000)                        %Chg
       Broadcasting Media Ptnrs.                                        $23,646                             24.5
       Verizon Communications                                            10,215                              1.3
       AT&T                                                               9,198                             10.9
       McDonald’s Corp.                                                   9,145                              2.0
       U.S. Government                                                    7,794                             94.1
       Home Depot                                                         7,785                             49.9
       Anheuser-Busch InBev                                               6,583                              -8.1
       J.C. Penney Co.                                                    6,481                              3.6
       Toyota Motor Corp.                                                 6,374                             -17.4
       State Farm Mutual Auto Ins.                                        6,245                              NA




                                                                                                                            25
  Source: Advertising Age Hispanic Fact Pack 2009, Measured radio ad spending from Nielsen Co. Percent change is computed
  from 2007 data
Top Hispanic Markets by Media Spending for
        Spanish-Language Outlets
                                                                      2008 Estimated Expenditures in Millions
 DMA                                                            TV                Radio      Print        Total

 Los Angeles                                             $357.69              $191.42        $102.43       $651.54
 Miami/Ft. Lauderdale                                      132.58              103.31          66.89        302.78
 New York                                                  114.22               93.17          55.29        262.68
 Houston                                                     64.08              63.98            9.76           137.82
 Chicago                                                     52.24              48.21           27.75       128.20
 San Francisco/Oakland/San Jose                              47.57              32.13            6.40           86.10
 Dallas                                                      39.34              31.88            9.07           80.29
 San Antonio                                                 24.06              35.81            4.74           64.61
 Phoenix                                                     30.29              15.48          18.04            63.81
 San Diego                                                   29.55              20.09            5.89           55.53
 TOTAL                                                    891.62              635.48         306.26       1,833.36


                                                                                                                     26
          Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence
Top 10 U.S. Hispanic Advertising Agencies

                                                   U.S. Revenue in thousands*
 Agency                                                       2008              % Change

Dieste, Harmel & Partners (Omnicom)                          $44,900             11.1
Vidal Partnership                                             35,000             12.9
Bravo Group (WPP)                                             31,500               5.0
GlobalHue                                                     28,178              37.2
Lopez Negrete Communications                                  24,150               1.6
Zubi Advertising Services                                     21,500               9.7
Bromley Communications (Publicis)                             21,100              -6.6
Conill (Publicis)                                             19,900              -3.9
LatinWorks (Omnicom)                                          17,440               1.5
Alma DDB                                                      14,800             13.0
TOTAL                                                        258,468



                                                                                           27
     *Advertising Age estimates, by US revenue in 2008
     Source: Advertising Age Hispanic Fact Pack 2009, 7/09
Language Preference and
 Marketing to Hispanics




                          28
                           Language Preference
       (Language Spoken at Home - Hispanic Adults 18+)

Speaking both Spanish and English
                                                                                   31%
                               28%


                                                          23%



                                                                                                   15%




     3%



 Spanish and           Mostly Spanish,              Only Spanish              Mostly English,   Only English
English equally         some English                                          some Spanish


                                                                                                               29
     Source: Isabel Valdes/Consultant, July 30, 2008 – Based on 2008 Nielsen UEs
Language Plays a Key Role in the Hispanic
                Culture
   Hispanic culture has made a huge impact on mainstream
    America
       The increasing political, cultural and economic influence of
        Hispanics has changed the way America looks, thinks,
        eats, dances, votes and conducts business.
   Retro-acculturation
      As being part of an ethnic group is “in” a burgeoning

       cultural pride has taken hold and teens begin the process
       of retro-acculturation where they are interested in learning
       more about their culture, language and traditions.




                                                                               30
     Sources: Isabel Valdes/Consultant –July 30, 2008; Cheskin Research 2007
                         Marketing to Hispanics

   US Born
      First- and second-generation Hispanic youths tend to

       thoroughly identify with and embrace their cultural
       heritage even as they begin blending into American
       society.
       Feel comfortable using “ready to serve”.
       Retail and marketing savvy.


   Foreign Born
      Advertising/information “hungry”.

      No brand heritage – many brands are “unknown”.




                                                              31
     Source: Isabel Valdes/Consultant –July 30, 2008
                         Marketing to Hispanics
   Connecting culturally and emotionally is key to
    successful Hispanic communication.
   An effective approach is “in-culture marketing”,
    capitalizing on core common values:
      Extremely family-oriented. Hispanic families are very

       likely to be three-generational, with grandparents an
       integral part of the unit.
              Marketing strategies with family values themes have
               strong appeal to them.
       Group oriented. Focus more on core group(s) rather
        than on the individual.
              Enjoy group outings such as street fairs, festivals and
               sports events.
                                                                         32
     Source: Isabel Valdes/Consultant –July 30, 2008
Successful Hispanic Advertising
          Campaigns




                                  33
       Telemundo Teamed with GMC for
           Web Soccer Reality Series
   Telemundo created a campaign for the Sierra truck brand
    called “Long Shot” that allowed players a second chance to
    impress the team’s coach and viewers.
   “The concept was an interactive soccer experience that ties
    together grass roots, web, mobile and TV,” said Peter Blacker,
    senior VP-digital media at Telemundo.
   According to Telemundo, whenever they do cross-platform
    integration like this Sierra campaign, scores go up for brand
    awareness and likability for the related ad campaign.
   The campaign included 12 broadband episodes on Yahoo
    Telemundo, weekly updates on two sports shows plus one-
    minute units with GMC spots and web content, a custom site
    that’s GMC-branded on Yahoo Telemundo, and mobile phone
    promotions.

                                                                     34
     Source: Advertising Age 7/7/08
     Bank of America Launched Spanish
      Language Advertising Campaign
   Hacia Adelante was the name of a Bank of America Corp.’s
    Spanish-language ad campaign.
   The campaign marketed the importance of a checking
    account in owning a first home, paying for college and
    starting a small business.
   “We want to instill confidence among our Hispanic customers
    that they should feel comfortable visiting a banking center
    and speaking with our bilingual associates about their
    financial needs and goals,” said Lynn Kuttruff, marketing
    executive for consumer and small-business deposits and
    growth markets.
   Promotion for the campaign included television, radio, print,
    ATM and branch advertising.


                                                                    35
     Source: East Bay Business Times, 8/6/08
Dr Pepper’s First Quinceañera Sweepstakes

    Dr Pepper promoted a special sweepstakes in 2007 in 20
     Hispanic markets.
    Customers received a free CD with traditional
     quinceañera songs with the purchase of two 12-packs of
     Dr Pepper.
    Some CDs contained tickets to mail in for inclusion in the
     sweepstakes drawing.
    The marketing goal was to become the soft drink brand
     associated with a tradition that Hispanic teens and their
     families value.
    The campaign included remotes with local radio stations,
     in-store displays and street teams handing out flyers.

                                                                  36
      Source: Adweek 6/11/07
    Unilever Spanish Language Initiative
   In 2007, Unilever launched a major Spanish language initiative in
    celebration of Hispanic culture and traditions.
   The new features of the marketing program called “Vive Mejor”
    (“Live Better”) included a bilingual consumer publication, a Spanish
    language Web site and television integrations.
   The publication, Vive Mejor (a free magazine available at
    supermarkets in high-density Hispanic neighborhoods across the
    country), offered shopping and beauty tips.
   Unilever also ran five-minute branded segments with their personal-
    care and food brands during Univision’s morning show “Despierta
    America.”
   A one-hour reality cook-off with a $1 million grand prize also ran on
    Galavision.




                                                                            37
     Source: Adweek 5/22/07
Home Depot Hispanic Advertising Campaign


    Home Depot’s “My Favorite Corner” ad focused on
     Hispanic consumers and their unique home improvement
     stories.
    The campaign was based on the strong emotional
     connection Hispanic customers have to their culture and
     the way it is expressed in their home improvement
     projects.
    English and Spanish advertising featured the Home
     Depot’s tagline, “Puedes hacerlo. Podemos ayudarte.”




                                                               38
      Source: hispanicad.com 4/9/07
            Restaurants Tailoring
      Advertising Programs to Hispanics
   Pizza Patron found that community involvement and tapping
    into a strong sense of family is an effective way to market to
    Hispanics.
   El Pollo Loco utilizes different strategies and ad campaigns for
    Hispanics, which represent 50% of the chain’s customer base.
   Olive Garden developed a communications plan that
    leveraged its existing brand strategy to have more relevance
    with Hispanics.
   Papa John’s expanded its online ordering site to include
    a Spanish language section.
   McDonald’s launched a multi-media campaign during Lent to
    promote the Filet-O-Fish sandwich to Hispanics.
                                                                       39
     Source: The Food Institute Report 1/22/07
        Targeting Hispanics is a Winning
                Strategy for P&G

   A longtime Spanish language television advertiser (since 1961), P&G is
    currently the number one overall Spanish language advertiser. On Spanish
    language TV alone, it has doubled its investment in the past 5 years and
    partners with a variety of organizations dedicated to serving the Hispanic
    community.
   Even in this challenging economy where private label has been capturing
    major market share, P&G continues to see advantages to its Hispanic
    marketing efforts. According to P&G, its fastest growing brand Bounty, is a
    brand where it has long been running value-oriented communication.
    “Consumers recognize its performance advantages. On Bounty, we are
    growing both share on the value tier (Bounty Basic) and also on the
    premium tier behind Bounty Extra Soft which was designed to [appeal
    primarily to] Hispanics.” (David Miller Gomez-Giron, P&G/Associate
    Marketing Director).

                                                                                  40
     Sources: TNS-MI Stradegy; Brandweek – 8/14/2009
    State Farm Accelerates Hispanic Marketing
                     Efforts


    While it has been marketing to Hispanics for the past decade, State Farm
     recently stepped up its efforts, spending nearly $58 million in total Spanish
     language media in 2008 (double its 2007 SL advertising efforts).
    Prior to 2005 State Farm felt it lacked an integrated marketing strategy in
     targeting Hispanics. Its goal was to develop a long term strategy that fully
     communicated its services and benefits to the Hispanic market.
     In hopes of connecting with Hispanics on a deeper level it earmarked more
     marketing dollars for community event sponsorships such as bike safety
     fairs and support of local baseball and soccer teams.
         “Consumers are savvy today. But you can take a relationship deeper
          when you can connect with consumers in ways they don’t necessarily
          expect.” (Mark Gibson, Assistant VP, Advertising/State Farm)




                                                                                     41
       Source: The Miami Herald – 8/10/2009
Thank You!




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