At the MPA Hispanic Summit: Advertisers and Publishers Discuss How to Increase Advertising Revenues
Magazine Publishers of America conducted its first Hispanic Magazine Summit in Puerto Rico last weekend. Around 100 executives from advertising agencies, national advertisers, publishing and research companies participated in the event.
- AHAA and the MPA Will Conduct a Joint Research Study
Magazine Publishers of America (MPA) announced that it will conduct a joint research study together with the Association of Hispanic Advertising Agencies (AHAA). The study will analyze the effectiveness of Hispanic magazine advertising. AHAA is also cooperating with MPA in order to produce the Hispanic Marketing Mix Study (Hispanic Magazine ROI Study). Funding for this study has been provided by AMI Latino Magazine Group, Latina, Meredith, People en español, Selecciones and Televisa. MPA is looking for a company to provide data for the ROI (Return on Investment) study, ideally it would be a CPG company that heavily advertises in Hispanic TV and invests a moderate amount of advertising dollars in Hispanic magazines.
- Publishers Highlight the High pass-along and Penetration of Hispanic Magazines
Eduardo Michelsen, CEO of Editorial Televisa, told the audience that magazines have the second highest penetration rate (41%) in the Hispanic market after TV (59%). Radio (36%) and newspapers (12.7%) follow. He added that while the pass-along rate in the U.S. general market is 3.4, for the Hispanic market it is 6.7. He noted that Cosmopolitan en español has the same penetration in the Hispanic market as in the general market (18%).Michelsen acknowledged that the importance of Hispanic magazine readership is not reflected in magazine advertising, which accounts for less than 3% of the Hispanic advertising market. He added that Latin American publishers present in the U.S. Hispanic market need to learn how to migrate to an advertising driven model.
- Media Buyers Talk About the Virtues of Magazines…
Sonia Green, Director of Diversity Marketing and Sales-Hispanic Market at General Motors, said that Hispanic magazine readers are the most affluent of all media types in the Hispanic market with an average per capita income of US $62.900. She noted that magazines excel at influencing purchase behavior. General Motors is spending US$ 6.8 million in Hispanic magazine advertising this year. In Green's opinion, value added programs (events, position of ads etc…) are very important components of her buying decision. Fina di Salvo, U.S. Ethnic Communication Planning and Media Manager at P&G, noted that Hispanic publications have a unique role to play connecting to the Hispanic consumer.
More Research Needed…
All media buyers/planners present at the MPA Hispanic Summit noted that they need more research about how print media vehicles (newspapers and magazines) connect with the consumer in order to substantially increase their print advertising budgets.
- Research: MPA/Ad Age and Wing Latino: Need for Culturally Relevant Content in English and for Publications Targeting Teens
A media buyer study published by MPA and Ad Age revealed that 60.1% of the media buyers interviewed do currently include Hispanic Magazines in their media plan. A slight majority of the surveys participants thinks that in the medium-term Hispanic magazines will publish more content in the English and less in Spanish. When asked about what value added services they like the most when they buy magazines, 58,1% of the buyers named events, website advertising, advertorials, and custom publishing followed as the main preferences.
Alejandro Clabiorne, Director of Media at WingLatino, noted that research his agency conducted shows that there is a growing need among Hispanics for culturally relevant content in English. 81% of the respondents to his survey noted that they read English-language magazines because they have more choices. 65% prefer ads that include both Spanish and English.
When asked about the most difficult sector to reach of the Hispanic population, 18,1% of the studies participants named “Teenagers”, English-dominant (16.1%), Spanish-dominant (14.3%) and “Men 18-34” (13.7%) are also considered Hispanic population sectors that are underserved by magazines.
- Financial and Health, the Most Promising Ad Categories
Elizabeth Bradley, publisher of Selecciones, Fabio Freyre, Chief Executive Officer or Latina Media Ventures, Ruth Gaviria, Executive Director of Hispanic Ventures at Meredith, Jackie Hernandez – Fallous, publisher of People en español and Carlos Santiago, president of Santiago Solutions Inc. participated in the panel “Hispanic Magazine's Future: What We Can Do”. The executives agreed that Financial, Health and to a lesser extent the Travel and Food are the most promising ad categories going forward.
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