How Much Should Cingular, Citibank and General Motors Increase their Hispanic Print Allocation?

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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