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 |
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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 [email protected].
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