U.S. Hispanics have flocked to the internet, but with few Hispanic online-advertising networks and little Spanish-language search advertising, they're not as easy for advertisers to target as non-Hispanics. Hoping to change that, Hispanic music site Batanga just made the first deal to acquire Latino ad network HispanoClick.]]> Half of Hispanics - Working with 800 Spanish-language publishers, HispanoClick reaches 5.6 million U.S. internet users per month, according to ComScore. Combined with Batanga's existing users, the audience will total more than 8 million, about half the number of U.S. Hispanics online."We hear [advertisers'] need for a more performance-based vehicle," said Rafael Urbina, Batanga's chairman-CEO. "Their frustrations are that it's very difficult to reach a large enough number of people online, and [there are] limited tools for what we can do ... in behavioral targeting and search."
The general market has seen big deals to buy online-ad networks, like WPP Group's acquisition of 24/7 RealMedia and Yahoo's purchase of Blue Lithium. That could be the next trend in the U.S. Hispanic market, where online ad networks are starting to appear and Hispanic portals are likely to snap them up. Besides HispanoClick, there's Prisma Digital Media, started in November 2007 by Latincube, the Miami-based holding company for digital shop Latin3; and venture capitalist-backed Consorte in San Francisco. Even HispanoClick is barely 2 years old, and the small company was started, oddly enough, in Montreal by a French-Canadian named Marc Duquette and his Dominican-born wife, Ana Maria De La Cruz.
The Search Engine Reality]]>Mr. Ferrer said he hopes a combination like that of Batanga with its own online-ad network will enable him to place brand advertising and get more direct-response, performance-oriented results with lower cost-per-thousand viewers and higher reach. No one measures the size of the Hispanic online market, but Mr. Ferrer said the best estimates for 2007 range from $150 million to $200 million. That's mainly display advertising.
"The sad reality is most Hispanics search on general-market search engines, and they search in English," he said. "When we try to buy key words [in Spanish], the general-market agency has already bought them [in English]. When we've done search for our client Century 21, we couldn't even spend the money."
The Hispanic population is more likely to accept e-mail marketing than consumers in other demographic groups. That's the finding from research by Chicago-based Mintel Comperemedia, which reports Hispanics welcome e-mail from companies they know up to 11 times a month. Non-Hispanic consumers will only tolerate that type of e-mail about seven times a month.
One explanation is that the Hispanic population is young, with a median age of about 27. That's nine years younger than the general population. Younger consumers tend to use more Internet-based services and communications such as e-mail.
E-mail marketing can be convenient for both consumers and corporations. However, it's important for consumers to understand the potential risks, and respond to e-mail accordingly, even if it comes from a company they know.
It's more than reasonable to be aware of the risks in cyberspace. Every computer should have good anti-virus and anti-spyware programs that are updated often to protect you from the latest threats. They include ransomware or software that hijacks files, encrypts them and holds them hostage until the owner pays a ransom for a key to unlock them and phishing or bogus e-mail designed to steal personal information.
Most regular Internet users are familiar with phishing, in which con artists use unsolicited e-mail or spam and pop-up messages to trick recipients into releasing personal or financial information. However, someone who receives a lot of e-mail offers may be more likely to accidentally respond to a phishing attack.
]]>Eleven percent of the Tampa Bay area's market including Manatee and Sarasota counties was made up of Hispanics in 2004, according to data from Global Insight, provided by the Sarasota-based Nuevo Advertising. Those consumers represent 7 percent of consumer spending for that same region. The Latino population in 2006 was nearly 39,000 in Manatee County and more than 24,000 in Sarasota County.
]]>details from the report today and noted "The forecasts for internet advertising have been revised upwards. The report now forecasts 29.9% growth this year (up from 28.6% forecast three months ago) and 85% growth between 2006 and 2009 (up from 82%). Online video and local search are the new, fast-growing segments, but display, classified and the rest of search are still growing rapidly as well. Internet advertising is expected to account for 9.5% of all expenditure in 2009, fractionally up from the 9.4% forecast three months ago.
The outlook for TV is also very good with that medium's 2008 market share expected to rise to an all-time record high of 38.2%. Print media will not be so fortunate. The CMR report said "Newspapers are suffering the most from the depredations of the internet, which is better at delivering timely news and is an efficient substitute for newspaper classifieds. The study expects newspapers' share of world ad expenditure to fall from 29.0% in 2006 to 26.2% in 2009.
]]>About 23.5 percent of the anticipated $12.3 billion real estate ad spend in 2008 will be spent online, compared to 48.9 percent of recruitment ad spending and 9.4 percent of automotive ad spending.
And the total spend on online real estate advertising is expected to grow 12 percent in 2008 compared to 2007.
Total spending on local online advertising is expected to rise 48 percent in 2008, to a total of $12.6 billion, according to Borrell's "2008 Outlook: Local Online Advertising" report.
Local online advertising is expected to total $8.5 billion this year, up from $6 billion in 2006, $4.6 billion in 2005, and $2.8 billion in 2004.
Local-search advertising is expected to more than double in 2008, to $5 billion, with locally placed online video tripling to about $1.3 billion.
Locally owned real estate businesses are projected to spend about $3.5 billion on all advertising types this year, with about $702 million of that amount, or 20 percent, going to online ads.
Real estate services companies are projected to spend $8 billion on advertising in 2012, with about $3.3 billion, or 40.9 percent of this total, spent on online ads, according to a table in the report.
That would represent a 41.2 percent increase from the projected 2007 real estate ad-spending level.
Credit and mortgage services companies are expected to spend about $24.2 billion on all ad types in 2012, with $2.9 billion, or 12.1 percent, devoted to online ads. And financial services companies are expected to spend $6.4 billion on all advertising in 2012, with $952 million, or 14.8 percent, going to online ads.
Pure-play Internet companies are projected to account for about 43.7 percent of local online ad revenue this year, with newspapers taking in 33.4 percent, directories accounting for 10.1 percent and broadcast television pulling in 9.3 percent. Magazines, other print publications and radio have a small share of the pie.
"We ... expect that 2008 will bring more announcements about network affiliations between the pure-play Internet companies like AOL, Yahoo and others as these larger sites hit a wall in national sales," the report states.
"This trend began more than a year ago when Yahoo and Google started forming relationships with newspaper companies and television stations to drive both national and local online sales. Formerly sworn enemies are seeing the wisdom of combining their strengths to increase revenues for both sides."
Local advertisers, according to the Borrell report, "are becoming less willing to purchase mass advertising on the Internet and are much more inclined to try paid search and video advertising formats," and, "The decade-long era in which the banner ad ruled the Web appears to be drawing to a close."
Twice as much online video advertising will be placed locally compared to nationally, the report states, and "newspaper companies are at the forefront of online video sales."
Online banner advertising is forecast to slow to single-digit growth in 2008 as video and paid-search ads gain steam, according to the report.
]]>“I am honored to be a part of this long-running event that brings attendees the best in the industry to discuss the topics that matter most,” said Jose Cancela, Conference Keynote Speaker, Hispanic Market Expert and Author of The Power of Business en Español. “This conference is the best in the industry because case studies are an integral part of the program presentations, and will provide an in-depth look at how a company should discuss its brand, product and service, and how to reach your target sub-segment.”
In addition to Mr. Cancela, SRI is pleased to welcome Susan Solano, Senior Vice President of Consumer Marketing at Telemundo, as a conference keynote speaker.
In its 14th year, the Marketing to U.S. Hispanics & Latin America Conference features a program with 40 speakers including 11 noteworthy brand innovators like Pernod Ricard USA, MasterCard Worldwide, Toyota North America, SAP Latin America, AT&T and HSBC.
Please join SRI on January 27-29, 2008 at the Westin Colonnade in Coral Gables, Florida for this blockbuster event, which will again kick-off with the Opening Progressive Networking Dinner. Come and take advantage of this wonderful opportunity to reunite with colleagues and network with new ones.
For sponsorship information, please contact Hank Woji at 713.290.8836 or hwoji@srinstitute.com. To become a media partner, please contact Andrew Chin at 212.967.0095 x238 or achin@srinstitute.com.
]]>Both Higdon and Steve Lauletta, president of Chip Ganassi Racing (CGR), say motorsports growth opportunities are in diversity markets in North America and through international expansion.
"Drivers like Juan Pablo Montoya [who drives CGR's No. 42 Texaco/Havoline Dodge Charger] are good for us on the global front, and diversity front," said Lauletta. "Dario Franchitti [who drives CGR's No. 40 Dodge Avenger] allows us to go to companies outside the U.S. who want to introduce product here or vice versa because of drivers who are personalities in other countries, who generate interest from consumers."
Obermeyer says that currently about 9% of Nascar's fan base is Hispanic. "There's a huge opportunity in this segment," he said, adding that last year Nascar races were covered for the first time in Spanish by ESPN Deportes. "We are getting our feet underneath us with broadcast partners."
Obermeyer says Nascar is expanding to Mexico City in the spring, while in North America the league is focusing on key markets--specifically Florida, Texas and the Southwest Hispanic markets.
He added that the largest challenge for Nascar--vis-à-vis marketing to Hispanic consumers--is finding a way for disparate teams to work together on a unified marketing plan, so that Nascar marketing transcends team-by-team efforts. "We have had a lot of luck with [Montoya] pulling Sprint Nextel's promotions, with [Montoya] doing Spanish-language commercials, and with Bank of America. We need to continue to convince with a voice in those markets that it's worth the time and effort; the best way to do that is everyone having a single plan rather than a number of different plans that will be a barrier to breaking through."
]]>Language dominance is just one variable measured by this study, which also shows demographics including county of residence, age, gender, time in the U.S., household income, and educational attainment. Other topics studied include:
-- Media consumption, including media language preferences, weekly consumption and most-consumed media
-- Technology adoption, banking, leisure activities
-- Top-of-mind brands
Lauri Jordana, principal of the Seattle-based Hispanic marketing firm, thinks local businesses and other organizations will be interested in the findings.
“Language preference is a compelling variable in marketing,” states Jordana. “Hispanics who indicate a clear preference for Spanish at home are more comfortable receiving communications as well as making purchasing decisions in that language.” The study shows that 72 percent of local Hispanics who have lived in the U.S. 11 or more years also speak Spanish at home more than English.
For more information at
-- Assessing Market Potential and Planning Strategic Growth; a session presented by Goldman Sachs that provides a primer on gaining strategic business advantages from multicultural marketing.
-- African America and Beyond, Black and Urban Culture and Influence; a session presented by Vibes to demonstrate how the “Urban” market segment transcends nationalities into a common lifestyle that can serve as a channel for marketers.
-- Asian Americans: Rich Diversity within a Cultural Segment; a workshop presented by Nationwide that will provide effective examples of targeting various Asian segments.
-- Consumer Goods workshop put together by General Mills that teaches how integrated marketing, distribution, and relationship marketing advances CPG goals.
-- Strategic Media Planning from the perspective of Univision and DirecTV.
The Summit will provide live entertainment each evening featuring Latin Rock Fusion Band: Locos por Juana and Recording Artist & Singer Mayte and many more. At the conclusion of the conference, an Apple iPhone will be raffled off.
More Information:
Detailed Agenda, Event Overview, Location, and Sponsorship Opportunities: http://www.latinforce.net/summit
More than one-in-two Latinos (56%) goes online, a lower rate than among non-Hispanic whites (71%) and non-Hispanic blacks (60%). Several socio-economic characteristics that are often intertwined, including low levels of education and limited English ability, largely explain the gap in internet use between Hispanics and non-Hispanics.
]]> Among the key findings:78% of Latinos who are English-dominant and 76% of bilingual Latinos use the internet, compared with 32% of Spanish-dominant Hispanic adults.
76% of U.S.-born Latinos go online, compared with 43% of those born outside the U.S. Some of this is related to language, but the analysis shows that being born outside of the 50 states is an independent factor that is associated with a decreased likelihood of going online.
89% of Latinos who have a college degree, 70% of Latinos who completed high school, and 31% of Latinos who did not complete high school go online.
Mexicans, the largest national origin group in the U.S. Latino population, are among the least likely to go online: 52% of Latinos of Mexican descent uses the internet. Even when age, income, language, generation, or nativity is held constant, being Mexican is associated with a decreased likelihood of going online.
Some Latinos who do not use the internet are connecting to the communications revolution in a different way – via cell phone. Fully 59% of Latino adults have a cell phone and 49% of Latino cell phone users send and receive text messages on their phone. Looking at the numbers in a different way, 56% of Latino adults go online, 18% of Latino adults have a cell phone but do not go online and 26% of Latino adults have neither a cell phone nor an internet connection.
]]>49.3% of consumers (who have seen at least one billboard ad) report “considerable” or “some” interest in the ads that appear in this format. This compares with 43.5% of adults (who have seen at least one instance of TV product placement) who report considerable/some interest in this genre of advertising. Third in order of consumer interest were ads at sports or entertainment events, with 35.8% of adults who had seen such ads expressing
interest in them.
22.2% of heavy radio listeners plan to purchase a vehicle compared to 18% of the general population. Of 5 major media, including outdoor, internet, TV and newspaper, radio performs the strongest, indexing nearly 25% above the market average. About New Cars
]]> As planned vehicle purchasers decline, the hardest hit market segment is domestic, down 20% over the past 5 years (see Appendix A). 8.4% of adults are planning on purchasing a domestic vehicle while nearly 12% of heavy radio listeners are planning on purchasing a domestic vehicle. Indexing 42% above the market average radio’s strength in delivering auto purchasers gets even stronger for delivering the domestic category.Of the major media, radio again performs the strongest in delivering planned domestic purchasers.
One of the reasons for radio’s strong performance in delivering planned auto purchasers is that radio has strength in delivering the “plan to purchase” demographics. For adults in the major demographic cells between 18 and 74 about 22% are heavy radio listeners.
In a comparison of heavy exposure to the major media, radio has the strongest profile in delivering consumers across the major demos.
Radio offers the auto industry additional strengths as heavy radio listeners planning to purchase a vehicle are more financially optimistic. This is good news for auto companies interested in selling high profit options as financial optimists tend to be more liberal in the spending.
Nearly 25% of adults planning on purchasing a vehicle are financial optimists while over 28% of heavy radio listeners planning a vis the strongest.