More than 90 percent of respondents indicated that they anticipate corporate ad spending targeting the fastest growing segment of the US -- Latinos -- to increase in 2007 and more than 30 percent are predicting budget growth of more than 10 percent. The majority of respondents (75.9%) believe the finance industry will increase spending most significantly over the next five years followed by entertainment (58.6%) and pharmaceuticals (55.2%). Travel is projected to increase ad spending to reach US Hispanic consumers as well as cited by 27.6% of survey takers.

The 2000 Census data, affirmed by an overwhelming majority of respondents (93.5%), is considered the most significant milestone attributed to the growth of the more than $5 billion US Hispanic advertising industry. Even with the government statistics to support the power of the US Hispanic consumer, more than 80 percent of respondents agree that the greatest challenge facing US Hispanic advertising agencies is persuading clients to invest more of their ad dollars in the burgeoning US Hispanic market.

"The Census data quantified the influence of Hispanics in the US and brought recognition to the significant clout, buying power and expected growth of this population segment," says Carl Kravetz, chairman of AHAA and chairman/chief strategic officer of Los Angeles-based cruz/kravetz:IDEAS. "It is an ongoing process to educate corporate marketers about the value of marketing to Latinos as more than just a project but an integral part of every marketing plan. We need to move beyond the 'why,' however, and begin to discuss the 'how' -- partnering with clients to engage this brand-loyal audience and connect emotionally with them using the language of cultural identity rather than getting bogged down in a debate over whether to use Spanish or English. It requires a deep understanding of the true Latino identity that Hispanic agencies are uniquely prepared to define for marketers."

In fact, segmentation of the Hispanic market is considered the leading influencer of agency business over the next five years. Further defining the complexities of Latinos as well as slices of this multifaceted population is viewed by more than 63 percent of respondents as the top significant change in the US industry. The influx of ad dollars to reach the coveted Hispanic segment was recognized by more than 56 percent of respondents and marketing with the Latino cultural identity in mind (53.3%) -- a real shift in the approach to reaching this audience -- were viewed as other significant developments that will shape the industry moving forward.

Over the past ten years, AHAA agencies have witnessed an evolution in US Hispanic marketing that extends far beyond what industry forefathers experienced. Kravetz notes that it was the visionaries of more than 40 years ago and the pioneering founders of AHAA that paved the way for the nearly 100 AHAA member agencies today serving corporations such as: McDonalds, Toyota, Coca-Cola, Bank of America, Verizon, etc.

"It was the Cuban revolution that kicked off US Hispanic advertising," Kravetz says. "In 1959 and 1960, a number of Havana advertising men exiled to the United States wanted to continue practicing their craft and began the long arduous process of convincing American advertisers that there was a vast, untapped market hidden here.

"Advertising was at first local, targeting the Cuban communities in Miami and New York. However when the US government combined Cubans, Puerto Ricans and Mexicans into a category called, 'Hispanics,' and following the lead of savvy marketer Procter & Gamble supported by imported programming from Televisa, national Hispanic advertising was born. We have come a long way but the Latino consumer landscape is ever-changing and requires marketers and agencies to continue to evolve with the same sophistication as their audience."

AHAA plans to unveil tomorrow at the association's 21st semiannual conference in Miami the results of a year-long project that redefines Latino consumers. Carl Kravetz, chairman of AHAA, will present findings and a new marketing model that will transform the way advertisers reach out and connect with Latinos. The presentation can be viewed online at http://www.ahaa.org following the 9 a.m. (EDT) presentation.

To learn more about the results of the survey or to schedule interviews, please contact Elinor Kinnier, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , or call 703-296-5573.

About AHAA:

The Association of Hispanic Advertising Agencies (AHAA) is the national organization of firms that specialize in marketing to the nation's 42 million Hispanic consumers, the most rapidly growing segment of the American population. AHAA promotes the strength of the Hispanic marketing and advertising industry to the private and public sectors. AHAA agencies offer a unique blend of cultural understanding, market intelligence, proven experience and professionalism that deliver Hispanic market success for clients. AHAA agencies help organizations gain market share, increase revenue and grow profits by building the bridges and delivering the messages to reach America's Hispanic consumers -- an audience with estimated buying power of nearly $900 billion. Visit http://www.ahaa.org for more information.