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
|
Advertiser
|
Cingular
|
Citibank
|
General Motors
|
|
National Advertising in Hispanic Newspapers (2006 in $ million)
|
5.08
|
3.88
|
3.80
|
|
Total Advertising Expenditure (2006 in $ million )
|
1314
|
1004
|
4065
|
|
Ratio in %
|
0.39%
|
0.39%
|
0.09%
|
|
National Advertising in General Market Newspapers (2006 in $ million)
|
510
|
86
|
580
|
|
Ratio for General Market Newspaper Investment/Total Advertising (in %)
|
38.78%
|
8.57%
|
14.27%
|
|
Difference in % points in favour of General Market Newspaper speding compared to Hispanic
|
38.40%
|
8.18%
|
14.17%
|
|
Suggested % Difference (taking into account Hispanic Buying Power and Population)
|
34.52%
|
7.32%
|
12.75%
|
|
Recommended Increase/(Decrease) in Hispanic Newspaper spending (in $ million)
|
45.88
|
4.72
|
54.20
|
|
Source: Portada Ad-Tracking
|
|
|
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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