Portada expects National Hispanic print advertising to grow at 3-5% rate during 2008.
According to an industry survey by Portada, both publishers and advertisers expect the following National Advertising Categories to grow the most in Hispanic magazines: Pharma/Healthcare, Foreign car manufacturers and Financial. Other high growth categories include Alcoholic Beverages, Luxury and Big Box retailers.
Strong categories in national advertising for Hispanic newspapers in 2008, according to publishers interviewed by Portada include: Lending Institutions, Real Estate (despite the current subprime mortage crisis), Foreign Automakers and Telecommunications. The latter due to the strong competition in this sector. Of course, the 2008 presidential Elections also bode very well for the political advertising category and publishers are expecting substantial windfalls.
The Future of Online…
The Hispanic online advertising market and, particularly, its pricing are very heterogenous. While CPMs can reach up to $30 at top channels in Univision.com, many website, charge CPMs in the middle and high single digits.
Portada expects the Hispanic online advertising market to continue to grow at a 30% plus rate during 2008. To some extent this growth is the result of many properties that traditionally were capturing print advertising (e.g. large Hispanic magazines) and are now moving many of their advertisers to their online properties (e.g. Beauty, Alcoholic Beverages).
…and Pre-Prints….
Big Box Retail, followed by Telecommunications and Automotive, will continue to be the main National Advertising Category for Hispanic newspapers, particularly for preprints or free-Standing Inserts in 2008. During 2007 two trends ocurred in the Hispanic FSI market. On the one hand, retailers got more selective and only inserted FSI’s in those newspaper delivery zones that are in the surrounding areas of their stores, while before they used to cover wider footprints. On the other hand, big box retailers have tended to advertise in large newspaper chanes that cover the whole of the U.S. or substantial parts of it. This trend has been harmful to smaller Hipanic newspapers. For 2008, Portada expects low single digit growth for the national Hispanic FSI market as newspapers continue to be the number one vehicle for retailers to reach consumers.
Reassesment
The main issue facing Hispanic print is that some large companies are reassessing their print strategies in the general market. For the Hispanic market this can have two diverging consequences: One, large advertisers increasingly reduce their general market and Hispanic print advertisng expenditures. On the other hand, some of these companies may shift some of their general market print advertising dollars into Hispanic print where they see more opportunities.
