Analysis: Univision Interactive’s Latest Moves

Univision Interactive in partnership with AdReady announced the launch of a new interactive platform to serve small and medium sized advertisers. The self service display (banner) advertising platform is aimed to “lower the barriers to entry for traditional marketers and opening up display advertising to many more marketers”, Mark Feldman, SVP of Sales and Business Development of Seattle based AdReady tells Portada. AdReady, which has a revenue share agreement with Univision Interactive, is a Seattle based firm that specializes in providing media companies white label platforms for online display advertising. Its clients include MSNBC, Yahoo, Boston Globe and Readers Digest.

The new platform is targeting advertisers who have budgets smaller than $15,000 a month. These smaller advertisers will be able to choose from more than 800 fully customizable banner templates in Spanish and English that can be tailored to deliver their marketing message and, therefore, avoid the expense of creating their own banners (typically $3,000-$5,000).

Advertising will be sold on a CPM basis ($12 on Univision.com and $10.2 on partner websites). Advertisers will be able to geotarget their message ($16 at Univision.com and $14.2 at partner websites).


Increasing the size of the Hispanic Online Display Advertising Pie

With the new online advertising platform Univision Interactive is trying to add smaller advertisers, who typically do search advertising, to the universe of Hispanic online advertisers. “In the general market, there are 1.5 million to 2 million clients buying search, vs. 50,000 buying online display advertising. “By lowering the cost hurdles that figure should increase to 200,000”, AdReady’s Feldman notes.  In the Latin market that figure is much smaller, but it is fair to say that the data is even more skewed to search as only large advertisers have really tapped the online display market.

With the new platform Univision Interactive is trying to channel a large volume of small dollar campaigns in a profitable manner. In addition, it is limiting its relationship with third party ad networks who typically sell remnant inventory.

According to AdReady’s Feldman, “Publishers give a lot of their inventory to ad networks, this way Univision Interactive continues to have a relationship at an affordable price”.


Online Ad Networks in the making? …

“Univision Interactive Self-Service is a first step as we continue to develop new, innovative ways to enhance our offerings. We are working on other opportunities and will share more information as it becomes available', a spokeswoman of Univision Interactive told Portada.

Although Univision Interactive is not ready to announce or indicate the launch of an online ad network, several industry sources have told Portada that Univision is creating its own online advertising network.


...the Rationale is there…

Interestingly, not one Hispanic pure play website is among the top 50 websites visited by U.S. Hispanics (look for ranking of the top 25 websites visited by U.S. Hispanics to be published on our website tomorrow). Not even Univision.com, which is the only one among the top 100 and ranked 55, in the latest release by Comscore of March 2009 data. In fact, in the April 2008 Comscore release, there were only four purely Hispanic oriented websites among the top 200 Websites. They were Univision.com, Batanga, Terra and Televisa Digital.

Hispanic online media companies (e.g see last weeks funding news on Batanga, Terra and others) are betting on forming online ad-networks to increase the inventory available to advertisers in order to be able to offer both general market and Hispanic online properties.


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