How Much Should Cingular, Citibank and General Motors Increase their Hispanic Print Allocation?
June 14, 2007
Cingular spent $5.08 million in Hispanic newspapers (both FSI and ROP) in 2006, according to Portada Ad-tracking. Total advertising for Cingular in 2006 was more than $1.3 billion. In other words, only 0.39% of Cingular’s advertising spending was devoted to Hispanic newspapers. What would a reasonable ratio be? Given Hispanic purchasing power and demographic representation in the U.S., a reasonable figure would be 10% ($51 million) of Cingular’s general market newspaper ad spending (or a corresponding Hispanic newspaper advertising/ total advertising ratio of 3.8%). According to this model, Cingular should increase its Hispanic print allocation by $45.8 million.
A similar line of thought derives that Citibank should increase its Hispanic print allocation by $ 4.72 million and General Motors by $ 54.2 million. (see detailed box below)
Analysis of Advertising Expenditures of 3 Major Companies
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Advertiser
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Cingular
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Citibank
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General Motors
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National Advertising in Hispanic Newspapers (2006 in $ million)
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5.08
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3.88
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3.80
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Total Advertising Expenditure (2006 in $ million )
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1314
|
1004
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4065
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Ratio in %
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0.39%
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0.39%
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0.09%
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National Advertising in General Market Newspapers (2006 in $ million)
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510
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86
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580
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Ratio for General Market Newspaper Investment/Total Advertising (in %)
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38.78%
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8.57%
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14.27%
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Difference in % points in favour of General Market Newspaper speding compared to Hispanic
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38.40%
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8.18%
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14.17%
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Suggested % Difference (taking into account Hispanic Buying Power and Population)
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34.52%
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7.32%
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12.75%
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Recommended Increase/(Decrease) in Hispanic Newspaper spending (in $ million)
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45.88
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4.72
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54.20
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Source: Portada Ad-Tracking
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For more information about Portada Ad-Tracking, year on year growth comparisons and Q1 and Q2 2007 data, call Annette Fielman at (516) 396-0179 or e-mail her at annette@portada-online.com.
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