Research: Does the U.S. Hispanic market have BRIC features?
Portada’s editorial team analyzed Advertising Expenditures, Population and GDP ratios in BRIC countries (Brazil, India, China and Russia) as well as in developed countries like Japan and the U.S.. They are shown in the table below. Finally, we a looked at similar data for the “Latin economies” of the U.S. Hispanic market and Mexico.
These are the 4 most striking implications of the data in the table below.
1) In the U.S., the largest advertising market, in the world, is where corporations spend the most advertising dollars per consumer.
2) U.S. Hispanic targeted advertising expenditures in the U.S. are below 20% of overall U.S. advertising expenditures on a per person basis. This is related to the often cited issue of Hispanics being “under-advertised” and also to the fact that Hispanics tend to have a lower GDP per capita ration than the average U.S. citizen.
3) China’s ad market is already bigger than Japan’s, although on an ad spend per person basis Japan has a much higher ratio ($38,200 versus $4,000). Among other reasons, this is because GDP per capita is much higher in Japan. However, Japan’s GDP per capita is roughly five times higher than China’s, and ad expenditures per person are 10 times higher. The data points to a sizable catch up potential for China’s advertising levels.
4) Using a similar reasoning as under 3, it can be said that the relationship between the GDP/Capita and Ad spend/person ratios is close to 1 in the U.S. and Japan. For Brazil and China this ratio lies at approximately 0.5, pointing to a substantial growth potential in both ad markets. For Russia the ratio is 0.36, while Mexico shows a substantial growth potential with a ratio of only 0.3 . India’s ratio is very low (0.1).
Note: The ad expenditures levels in these countries depend on other factors in addition to GDP and population such as GDP growth rate, institutional stability, legal framework, media market structure, age pyramid etc.
Table 1: Does the U.S. Hispanic market have BRIC features?
Source: Portada (US Hispanic Ad Market figure is from AHAA) 2010 data
Trackback from your site.