8 key topics to be explored this week at #Portada13 to drive Hispanic marketing forward
As leading marketing, media and advertising executives gather in New York City for #Portada13 - Portada's flagship Annual Hispanic Marketing and Media Conference this Thursday Sept. 26 and the Hispanic Sports Marketing Forum on Wednesday Sept. 25 - let's review the key issues they will explore in order to move Hispanic Marketing and media forward. Below, a discussion of the 8 main topics to be explored by the best and brightest in Hispanic marketing and Hispanic sports marketing this Wednesday and Thursday.
1. Marketing in a Multicultural Nation means that Corporate America faces three set of challenges. The first is organizational...
Marketing in the twenty-first century United States means to market in a multicultural nation; NOT to market to a multicultural audience and to a general market audience. The identity of the different multicultural groups composing the U.S. , and the interdependence between them, is the very fabric of U.S. society. In most cases, to market in a multicultural nation means to embrace the total market principle. While a good portion of Corporate America seems to understand this conceptually, it faces major challenges to reflect this new reality in the way their marketing organization should be organized. Should the Hispanic marketing team still work in a silo vs. the general market team? Definitely not. But other open questions remain such as: Should there be an integrated team and different strategies or both integrated teams and integrated strategies? What is the emotional component when targeting Hispanics in a multicultural nation? Should Hispanic marketing initiative work with brand ambassador?
2. The Measurement/Accountability Challenge
Related to the organization of the marketing unit are the metrics that need to be set up to test how efficient it is. Corporations need to ask themselves the following questions: What Key Performance Indicators should a total market strategy be tied to? Is there even enough reliable data to determine these KPIs? For advertising and media executives the key is to demonstrate a high return on investment for advertising spend against the Hispanic demographic. First, "we need to make sure that we are talking about media ROI, not business ROI," says Gonzalo del Fa, president of Group M Multicultural and #Portada13 speaker says, When it comes to media ROI, it is important to work with a model that is accurate. As del Fa puts it: "Hispanics living in Harlem (NYC) may get a lot of Hispanic specific advertising and media. However, many of these Hispanics do not do all their purchases in Harlem. For larger purchases they may go to major retailers in Yonkers. The zip code – proximity based ROI models do not capture this and, therefore, sales to Hispanics get attributed to general market ad campaigns and not to Hispanic advertising." For advertisers to recognize the tremendous force of Hispanic advertising, Hispanic consumer expenditure needs to be attributed to Hispanic directed advertising in an accurate way through proper media ROI models.
3. How should Content and Advertising reflect the realities of a multicultural nation?
For media properties (and not just the purely Hispanic oriented ones!) and advertising agencies the challenge lies in how to reflect through content the reality of a Multicultural nation. The jury is still out whether major new media launches like Univision and Disney's joint venture Fusion will be succesful, as well as so many new English-language Hispanic oriented new digital media properties. 4 key questions content producers at media and agencies need to address:
-Is it all about being “inclusive” or are there other factors that need to be considered?
- How to develop and place content in order to engage the different ethnic groups?
- Are bilingual ads (i.e.: Tide, Target, etc.) the right solution?
4. The mandate of successfully engaging local audiences...
The succesful engagement with local audiences is the be all and end all of Marketing, particularly for Hispanic media, where a substantial part of the players (e.g. radios and newspapers), are mostly community oriented platforms. Advertising Technology providers have also made it easier to target local audiences on a razor-sharp level. This is particularly important in the Hispanic market where language and cultural issues make the use of language and behavioural data particularly compelling for marketers.
5. ...should be fulfilled by a substantial increase in Mobile Advertising expenditures
The main value proposition of mobile media is that it can marry real world data (location-based) with behavioural data. That is why mobile advertising is growing in leaps and bounds. In the "general market" mobile advertising is expected to increase by 95% to US$ 8.5 billion this year to account for 20.1% of all digital ad spending, and 5.0% of total media ad spending. In the U.S. Hispanic market mobile advertising volume is nowhere near that ratio. This is surprising if we take into account that Hispanics clearly over-index in mobile adoption rates. The main issue is that many large brand marketers have not yet tapped into the Hispanic mobile opportunity. Attendees to Thursday's 7th Annual Hispanic Advertising and Media Conference will be able to hear from key decision makers about the tipping points that made Disney and P&G invest in Hispanic mobile advertising.
6. Media properties face monetization challenges....
Most Hispanic specific and general market media face substantial challenges to monetize their media vehicles..The emergence of new advertising technologies offers advertisers solutions to make their media buys substantially more efficient, but this does not necessarily translate into higher advertising revenues for media companies. CPMs (cost per thousand impressions tend to be lower in digital media compared to off-line media. While broadcast media has been somewhat barred from this phenomenon, the phrase "from print dollars, to digital dimes, to mobile pennies." reflects a tough reality for newspaper and magazine advertising executives." However, having offline properties can be an advantage: as Alex Barnishin, Senior Advertising Manager for Al Dia Texas recently told us: "Clients generally see a 30% lift in response when digital banners and/or search are added to a print campaign." To keep marketers happy, media properties need to be more creative than ever and include content marketing, event, and cross-platform initiatives in their proposals.
7....and Online Video can help them.
For digital and print media properties in particular, the rapidly growing online video advertising market offers revenue opportunities. Particularly because Online Video CPM's (cost per thousand viewers) are the highest in digital advertising, usually three to four times as high as display advertising CPM's. This is also an opportunity for mobile media as video completion rates have been increasing on smartphones and tablets. Hispanics consume a lot of video entertainment on the mobile phone. However, for online video really to become a revenue driver for Hispanic media properties it is crucial that it does not just become a way to repurpose broadcast content.
8. Shout Gooooooooool! The 2014 Soccer World Cup
With the 2014 Soccer World Cup taking place next June Sports Marketing is the largest opportunity in Hispanic marketing. The World Cup is the most important news event for Hispanics every four years. It's the Superbowl, World Series and NBA Finals all in one. What advertisers love about the World Cup is that it is DVR proof. Sports programming is a better bet for network broadcasters than almost anything else. With the rise of time shifting technologies audiences have unprecedented choices about what they watch and when they watch it. That is why ratings for most TV networks have fallen sharply. The big exception is sports, which has been practically unaffected by the general ratings declines. According to a Nielsen study, viewers watched 97% of sports programming live in 2012, down slightly from 98% in 2008. Those same viewers watched just 75% of non-sports programing live in 2012, down sharply from 93% in 2008.
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