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This partnership offers a powerful new solution for Mexican advertisers: the availability of real-time market intelligence for paid social media advertising.

GfK – the leader in consumer and market intelligence and analytical and consulting services – announced an expanded partnership with BrandTotal, the leading social competitive intelligence and brand analytics platform.

With “dark” marketing – highly targeted campaigns invisible to the general public – now accounting for 88% of social media advertising spend, marketers often have little knowledge of the ads reaching their most important consumer segments. To break through this measurement roadblock, GfK and BrandTotal’s partnership allows marketers to track social advertising campaigns – including dark marketing – that target clients’ customers.

The new offering empowers marketers to:

  • Track competitor activities – including paid, organic and dark campaigns – across multiple platforms
  • Benchmark and optimize digital campaigns in real-time for custom consumer segments and goal setting
  • Effectively measure their brand against competitors and unlock their entire social advertising performance and strategy
  • Compare interactions and effectiveness across digital and social channels
  • Identify and address consumer net sentiment and engagement changes to campaigns over the course of weeks or months

The GfK and BrandTotal partnership brings together BrandTotal’s unmatched social media marketing intelligence platform with GfK’s global expertise in brand measurement and marketing, driving growth and increased brand value. GfK data and marketing science teams leverage and integrate BrandTotal data to help clients extract maximum value from social media data to answer business questions from different stakeholders.

The two companies joined forces in 2019 and have been working in the US, where BrandTotal has been adopted by key GfK clients. Because of this outstanding performance, the partnership is now expanding to Mexico.

Ricardo Barrueta, General Manager, GfK Mexico.

“Most social media advertising campaigns are invisible to the public, resulting in reduced business intelligence and blind spots,” said Ricardo Barrueta, General Manager, GfK Mexico.

“With this new solution, powered by BrandTotal, Mexican companies will now see the whole picture, tracking not just their own social ads, but their competition’s ads, including user engagement, net sentiment, creative choices, and beyond. This will help them make the right decisions, at the right time, for more effective marketing strategies.”

Using artificial intelligence, BrandTotal’s platform identifies, aggregates, and analyzes marketing campaigns across the social media ecosystem, helping advertisers and agencies see their competitive landscape farther and more clearly. It provides deep actionable insights on consumer advertising sentiment and engagement, spend, creative and design tactics, dark versus public ad metrics, organic and sponsored data, share-of-voice (SOV), share of topic, video versus non-video, social media mix, audiences, and more.

By delivering real-time, granular visibility into the social advertising strategies of competitors, GfK and BrandTotal unlock the intelligence clients need to optimize their own strategy, creative performance, consumer engagement, and sentiment.

Companies can even get a granular comparison at the campaign or product level for competitor media and creative.

“GfK and BrandTotal offer access to actionable, competitive intelligence that is not available elsewhere, all through aggregated multi-channel data in a simple visualization panel,” added Barrueta. “Companies can even get a granular comparison at the campaign or product level for competitor media and creative.”

GfK and BrandTotal can provide clients intelligence on how competitors interact with consumers, how targeted consumers respond to competitor ads, and which social platforms contain the most effective competitor advertising campaigns. This enables Mexican brands and agencies to outsmart and outshine their competition, winning wallet share and strengthening consumer love and loyalty.

Alon Leibovich, CEO & Co-Founder, BrandTotal.

“We are pleased to expand our partnership with GfK and make BrandTotal’s competitive social advertising intelligence available to the Mexican market,” said Alon Leibovich, CEO & Co-Founder, BrandTotal. “BrandTotal is on a mission to even the playing field in social advertising, enabling advertisers and agencies to see every ad in their category and how consumers react to them. In doing so, we help brands and buyers optimize their own strategies, amplifying social commerce advertising performance and maximizing spend.”

The influx of Mexican immigrants into the United States has created a cross-border advertising opportunity for large Mexican companies like AeroMexico and Mexicana airlines. Another trend is advertising placed by smaller remittance processing companies, helping Mexicans in the U.S. send money home, and independently owned travel agencies.
 
Airlines:
 
AeroMexico concentrated the bulk of its spending in border-state markets like Arizona and California, although it also advertised in all of the markets in which it flies, including New York, Chicago and Texas.
 
 
Company
2006
2007
% Change
Top Three Ad Spends
AeroMexico
$395,000
$430,000
8.85%
La Opinion, Voz de Phoenix, Miniondas
 
 
Mexicana Airlines spent less than AeroMexico in absolute dollar terms, but increased print ad investment by a substantially higher proportion. Interesting to note is that La Opinion was the primary venue for ad investment by both airlines.
 
Company
2006
2007
% Change
Top Three Ad Spends
Mexicana
 $208,000
 $323,000
55.3%
La Opinion, Hoy Fin de Semana, La Raza
 
 
Financial & Retail:
 
Mexican banks such as BancoMer and Banorte are also present in U.S. Hispanic print, but to a lesser degree than the airlines due to their lesser presence in the U.S.
 
Mexican retailers like Liverpool and Maseca are also dabbling in the Hispanic print market, although not at levels that are measurably notable.
 
Boutique Advertising:
 
Large companies such as airlines and banks aren’t the only ones getting in on the action. Papers like Diario de Mexico are filled with ads by small travel agencies and remittance processing companies offering low rates to Mexicans living in the U.S.

The Hispanic market is the logical extension for Mexican media and advertising powerhouses. Both are entering the U.S. with an increasing speed. With more than 60% of U.S. Hispanics coming from Mexico, Mexican media companies target a similar audience in the U.S. In addition, they often can offer their vehicles to the same advertisers. Some observers call it the North American Cultural Area (NACA).

“Culture, needs, and topics of interest are very similar here in the United States and Mexico for our people. My experience of publishing daily newspapers for more than 20 years in Mexico helps me to identify which stories, events and sections are day-by – day the most attractive for our readers,” says José Santiago Healy, publisher of Diario San Diego (Healy Media, Spanish, daily, circ. 8,000, predominantly paid publication).

“Media companies are redefining programming to address different life experiences and narratives of the cross border cultural collide. Food and beverage companies and consumer goods companies like Procter & Gamble, retailers like HEB and Walmart, are at the early stages of understanding and responding to NACA’s potential,” notes Stephen Palacios Senior Consultant of New York based Cheskin Research.

Does the fact that Mexican Americans know many Mexican brands help when selling advertising to Mexican companies? “Definitely yes,” answers Jose Santiago Healy of Diario San Diego. “Brands like Jarritos, Bimbo, La Costeña, Tecate, Bancomer, Urbi, etc., are well-known in the Mexican-American community. But even American brands that have been popular in Mexico for many years such as Ford, General Motors, Sears, among others, get good results when they advertise in Hispanic media.”

Publishers make inroads

Televisa, the largest Spanish-language media company in the world, is the biggest publisher of magazines in the U.S. Hispanic market. Other large Mexican publishers recently have also moved into the U.S.

In April, Editorial Armonia, a Mexican publisher of women’s, cooking and family magazines bought a majority stake in Miami-based Megazines Publications, the publisher of the Hispanic newspaper insert Sobre Ruedas (8 x /year, Spanish, circ. 640,000). Armonia will use Megazines Publications to introduce some of its titles into the U.S. Hispanic market. “They will take advantage of our distribution network, our know-how and our contacts,” says Reynaldo Mena, general manager of Megazines Publications. “We still don’t know exactly what titles Armonia is going to introduce in the U.S.,” Mena notes. Grupo Editorial Armonia also publishes custom publications for several companies in Mexico including American Express, Campbell’s, Yoplait, Carnation and Maggi.

Mexican publishing house Grupo Reforma recently agreed to provide content for Cancha, a new Spanish-language weekly which is going to be launched by Hearst's San Antonio Express News. Cancha will target first generation Latinos living in San Antonio (Texas) with sports and entertainment oriented content. It will be published twice a week (total circ. 50,000).

Last year, Time Inc. acquired Mexico’s Grupo Editorial Expansión (GEE) The transaction has promising and interesting implications for the Mexican and Panregional publishing and advertising markets. Editorial Expansión owns a lot of content resources and now can access the Time Inc.’s marketing and distribution clout. Time Inc. accounts for nearly a quarter of the total advertising revenues of U.S. consumer magazines. Some of Expansión’s titles, like Quién, could easily be marketed to the growing Hispanic market in the U.S. or to other parts of Latin America. Expansion’s Chief Executive, John Reuter, is an American who headed strategic planning for Latin America for Time Inc. Sources at Grupo Editorial Expansión told Portada® that GEE is studying different options regarding entering the U.S. Hispanic market.

Grupo Fórmula, a Mexican multimedia company, introduced Fórmula Editorial earlier this year, a magazine that is distributed nationally and has a circulation of 60,000. Rocio Vargas, Editor of Fórmula Editorial, a Mexican radio and TV magazine published by multimedia group Grupo Fórmula with a circulation of 60,000, recently told Portada® that the publication will be distributed in the U.S. Hispanic market in a few months.

En Español Publishing Group, a company owned by Mexican Publishing House Cinemania-Inc., last year opened an office in Los Angeles headed by publishing executive Michaelle Fastlicht, in order to better service the US Hispanic custom publishing market.

Mexican specialty publications publishers are expanding into the U.S.Hispanic market too. Editorial México Desconocido, a Mexican publishing house specialized in travel publications is testing the U.S. Hispanic market with a travel title. Additionally, this year Correo del Migrante was launched, a monthly magazine touching issues affecting Mexicans living on both sides of the U.S. Mexican border, particularly issues important to Mexican small business owners.

Newspaper publishers from south of the border are active too. Mexican publisher Jose Santiago Healy, launched Diario San Diego in 2003 (circ. 80,000). Additionally, El Universal, one of the largest Mexican newspapers intends to publish a sports publication for Hispanics, industry sources note, although no formal plans have been announced.

According to a study by Strategy Research Corporation, 49,2% of Hispanics born outside the US read magazines in Spanish (49% newspapers in Spanish), it is this demographic that Mexican publishers are particularly suited to cater to. Other US publications, like Rumbo or The Houston Chronicles’s La Voz are also reaching this demographic. The Strategy Research Corporation study adds that 38,3% of first generation Hispanics read magazines in Spanish (21,8% for newspapers), while only 19.4% of second generation Hispanics read magazines in Spanish (13,3% for newspapers).

…and follow advertisers

Researchers note that about 30% of large Mexican advertisers have campaigns that target U.S. Hispanics (see Portada® Nr. 11 September-October 2004, page 8). Mexican companies like retailer Gigante, furniture stores Elektra and Famsa, Grupo Modelo, the brewer that produces the “Corona” brand, cement maker Cemex, bakery Grupo Bimbo, banks Banorte, BBVA and airline Mexicana de Aviación have all launched ad campaigns in the US. Mexicana de Aviacion, for instance, advertises in Fort Worth’s Diario La Estrella’s website (Knight Ridder, daily average readership 31,000, Spanish).

“Large actors, like Citibank, HSBC, Bank of America in the financial services realm are creating a new financial infrastructure that is paving the way beyond traditional remittances for new products and services that reach Hispanic on both sides of the border. Insurance companies are looking at the same phenomena, offering health insurance across the border to both ex-pat American retirees in Mexico and to extended family members of Mexican and Mexican Americans in the U.S.,” says Cheskin Research’s Stephen Palacios.

It is even a matter of style. Mexico is everywhere. For instance, last year, Zions First National Bank opened two branches in Salt Lake City and West Valley, where everyone is bilingual and the offices are decorated with Mexican decor. George Mesa, Managing Director, El Estandar, an Ogden, UT, based Spanish-language weekly (circ. 10,000, published by The Standard Examiner) told the Newspaper Association of America’s Dinah Eng.

Cross border advertising programs

The integration between the U.S. and Mexico is particularly strong in the border states (California, New Mexico, Arizona and Texas). San Diego’s El Latino (circ. 90,000, weekly, free, bilingual) distributes 12,000 issues in Tijuana and has a sales office there. Alejandro Maciel, General Manager at El Latino, tells Portada® that many Mexican real estate companies advertise in El Latino. Family homes cost around US $150,000 in Mexico and US $600,000 in the U.S. So many people living in the U.S. try to buy real estate in Mexico and read El Latino for advertising.

Diario San Diego also runs an office in Tijuana that provides advertising and news for the newspaper. In order to reach more Mexican-Americans and Mexicans in the border zone, the Copley Press Inc., publisher of San Diego Union-Tribune and the Spanishlanguage weekly Enlace (circ. 60,.000), owns a direct mail program called “La Bolsa Azul.” A blue polybag containing coupons for restaurants and retail stores in San Diego is delivered every Friday to the doorsteps of 70,000 middle and upper-class homes in Tijuana. “Don’t miss these valuable shoppers who have money to spend in San Diego,” claims one of La Bolsa Azul’s advertisements. The shopper program charges a CPM of US $39 for a single sheet insertion in the polybag. Another Hispanic newspaper, San Antonio’s Conexion (Hearst-San Antonio Express News, weekly, circ. 50,000 predominantly English) has a doorhanger program in Monterey (Mexico).

Many similarities

The Mexican print media market has similar characteristics when compared to the U.S. Hispanic market. According to figures by TNS Media Intelligence, in 2004 Hispanic magazine advertising amounted to 2.9% of total Hispanic advertising dollars. In Mexico, media buyers spent 3% of the total advertising market volume in magazines.

Both the Mexican and the U.S. Hispanic advertising market are heavily dominated by TV and radio. Magazine advertising amounts to 15.1% of general market advertising. Smaller markets tend to have higher CPMs, so the average Hispanic market CPM lies at US $41, compared to US $91 in the general U.S. market. However, rate card discounts tend to be higher in the Hispanic market than in the general market.
 

For more information:

Check out www.portada-online.com

• Mexican advertisers bet on Hispanic media

• Mexican Publishers Expand into Southwestern United States

• Editors work hard to entice Mexican readers

• Making print media more affordable: Are low-priced newspapers the key to success in Mexico and the US?

More and more Mexican brands are advertising to a U.S. Hispanic audience. Companies like retailer Gigante, furniture stores Elektra and Famsa, brewer Grupo Modelo, cement maker Cemex, bakery Grupo Bimbo, mobile phone provider Telcel, airline Mexicana de Aviación, and banks like Banorte, Banamex, BBVA and Bancomer have all launched ad campaings in the U.S.

Advertisers realize that their marketing strategies have to be adjusted when it comes to US Hispanics, even though almost 60% of them are originally from Mexico.

Juan Carlos Rodríguez, director of re-search and marketing at Media Planning Group in Mexico City explains. “The Mexican-American consumer has new customs. He has an income four to five times higher than he would have earned in México, which means his spending and saving habits are different, he might own a car, an apartment. Many Mexican immigrants totally change their lifestyle, which means advertising messages targeting them also have to change.”

Antonio Capel, executive vice president of media at Foote, Cone & Belding in Mexico City (FCB-Mexico), agrees. “If the advertising message is not translated and presented through local voices, the message will not be as strong.” When FCB-Mexico has a client that wants to target the US Hispanic market, it confers with one of its sister agencies in Los Angeles, Chicago, Miami or New York, and then looks at the media plan and the creative with the advertiser. MPG Mexico also collaborates with sister ad agencies in the U.S.

What: IAB Mexico has presented the results of its 11º Study of Media and Device Consumption, based on a survey of 1297 Mexican internet users.
Why it matters: The media landscape has evolved a great deal in the last 10 years; advertisers need to understand the different types of internet users to be able to cater to their needs in an effective way.

 

In a private event held in Mexico City this week, IAB Mexico presented the results of its 11º Study of Media and Device Consumption, developed by Kantar with sponsorship from Televisa Digital. In this edition, the study explores the habits of Mexican internet users and their relationship with digital advertising by dividing their behavior into four areas that correspond to the different devices, platforms, and activities related to the online world: digital, social, entertainment, and e-commerce.

In order to find out how consumers’ online habits have changed in the last 10 years, 1297 people between the ages of 13 and 70 were surveyed (49% women; 51% men), and their answers revealed that the percentage of connected population in Mexico grew from 30% to 67% (about 75.8 million internet users).

 

Digital Devices Continue to Rise

According to the study, there’ll be about 29 billion connected devices by 2022. Today, 90% of Mexican internet users own a smartphone, and 7 in every 10 declare owning a complementary device such as Smart TVs and speakers, wearables, streaming devices, etc. As explained in the report, “accurate understanding of all the different types of internet users provides the industry with tools to segment them according to their needs.

 

Social Media: Your New Best Friend?

A big majority (84%) of Mexican internet said they use an average of 4 different social media every day, and even though most of the social networks that were predominantly used 10 years ago have disappeared, two of them (Facebook and Twitter) are still on the top three.

As the study shows, users go to social media both to consume (86%) and to create content (94%), and 61% say they follow their favorite brands in order to keep themselves informed about news, discounts, and other consumers’ opinions. “In the last ten years, social media have evolved from a social communication space to a key ally for brands,” says the report.

 

Online Streaming Gives Consumers Freedom to Choose

From music to TV and videogames, 83% of surveyed respondents declared having access to online streaming services. The video platforms with more sustained growth are Netflix, Claro Video and Prime Video; Spotify leads the music category; and Xbox and Twitch are the videogame streamers with more users.

According to the report, advertisers have an opportunity to gain consumers’ attention provided that they take into account what really matters to them. Only 18% of viewers say they “always pay attention” to online ads, and the main reasons why the remaining respondents pay attention “sometimes” or “never” is that ads are simply not attractive, or that they feel their experience is being interrupted in an annoying way.

 

A Majority of Respondents Have Tried E-Commerce

Even though the growth has been slow, the study reports that e-commerce is gaining relevance among Mexican internet users, as 67% declares having completed an online purchase recently. Among the main reasons why they decided to buy online, they said “there was a special offer”, “it was quick and easy”, or “it was cheaper”. One of the things that have favored this growth, as said in the report, is the increase of connectivity both in and out of the store that allows consumers to compare prices. In average, consumers completed 3.5 e-commerce activities, with the top 5 categories being bank transactions, payment of services, clothes, electronic devices, and music.

However, it is still difficult to get the remaining 33% to make purchases online. Among those who declared not completing any transactions online recently, the main reasons were not having a credit card (42%), distrust when asked to share personal information (36%), and a wish to see the product before buying it (29%).

 

All images except feature image by Freepik.

Feature image by IAB Mexico / Kantar 

What: Seven in 10 of the 58 million U.S. Hispanics now use a smartphone, and more are bypassing desktop and laptop computers completely in favor of tablets and mobile.
Why It Matters: With some help from their expertise in Hispanic mobile behavior, mobile ad network Adsmovil topped the latest comScore Mobile Metrix® in both the Hispanic Mobile and Total Mobile Audience reach categories. Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly? And what does a Hispanic ad network’s continued success with total audiences say about the key role that Multicultural plays in any mobile campaign’s success?

Since 2000, Hispanics have accounted for more than half of the population growth in the United States: According to the Pew Research Center, the number of Hispanics in the country reached 58 million in 2016. And with seven in 10 U.S. Hispanics now using a smartphone, this means that advertisers hoping to win in the United States must prioritize reaching this dynamic and tech-savvy demographic.

More and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s walled gardens.

“Taking into account that Hispanics are heavy mobile users and even use their mobile devices as their primary access to the internet, we always include mobile in all our communication strategies. In fact, we always recommend clients having a mobile-first approach when implementing any digital campaign,” Gonzalo del Fa, President of GroupM Multicultural (photo) asserted.

With this in mind, ad network Adsmovil launched Programmatic Mobile Hispanic solutions in 2015. In recent years, the network has become a leader in Hispanic targeting, coming up with award-winning programmatic creative and location-based targeting initiatives informed by a thorough understanding of their clients’ targets. And now, October 2017 data from ComScore has Adsmovil coming in at the top of the lists of Total Internet and U.S. Hispanic reach for Mobile:

 

 

Mobile Metrix Key Measures

MediaTotal Unique Visitors(000)
Total Internet(total audience: Mobile)196,705
1Adsmovil Network-Potential Reach87,886
2Pulpo Media67,665
3Univision Digital Network25, 474
4Primia Digital – Potential Reach22,146
5Mobvious20,956
6Fullscreen Mexico – Potential Reach18,385
7H Code Media12,333
8ImpreMEDIA IMPOWER!5,613

SOURCE: U.S. Hispanics Mobile Only, Comscore, October 2017.

MediaTotal Unique Visitors(000)
Total Internet: Hispanic All: (Mobile…)32,711
1Adsmovil Network-Potential Reach17,457
2Pulpo Media15,109
3H Code Media8,620
4Univision Digital Network7,839
5Primia Digital – Potential Reach6,397
6Mobvious 6,161
7Fullscreen Mexico – Potential Reach 5,354
8ImpreMEDIA IMPOWER!4,960

SOURCE: Total Audience Mobile Only, Comscore, October, 2017.

The voices demanding alternatives to the “duopoly” of Facebook and Google are growing louder, suggesting that Adsmovil could emerge as a leader at just the right time. While Google and Facebook took over 77% of the US$12 billion-dollar increase in global online ad spend in 2017, more and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s “walled gardens.”

AdsMovil Credits Success to Unique Understanding of Hispanic Behavior

In today’s landscape, marketers are being forced to reckon with the fact that consumers cannot be reduced to simple profiles determined by gender, age, and ethnicity. AdsMovil’s targeting solutions are focused on helping advertisers reach Hispanic users, looking at mobile users through an ethnographic lens that identifies specific Hispanic audiences according to the following factors: generation, acculturation, language and country of origin.

Hispanics’ acculturation levels lead to different attitudes toward language: those that are acculturated were typically born in the United States, prefer to speak in English, and can “toggle between Latino and American culture.” They are typically tech-savvy and have at least a high school education. Non-Acculturated Hispanics may or may not have been born in the United States, may have immigrated recently and typically hold a high school degree or less.

The benefits of understanding and appreciating these drivers of Hispanic mobile behavior make all the difference, pushing Hispanic marketing shops like Adsmovil at the top of Total Audience measurement on comScore’s Mobile Metrix in October 2017.

It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.  “Mexicans have different taste and buying habits than Dominicans or Argentinians. Adsmovil helps you deliver more effective media because we realize the differences and can target more appropriately. As a result, you will have better-performing campaigns,” said, Adriana Daantje, Global Product Director at Adsmovil.

It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.

Acculturation, Generation, Language, Country of Origin Key Factors in Determining Hispanic Behavior

In focusing on factors like acculturation, generation, language, and country of origin, Adsmovil can create targeted solutions for profiles of users with very distinct behavioral patterns: For example, non-acculturated Latinos are less comfortable using technology and slower to adopt new devices and functions, tend to use older mobile devices, and often have their browsers set in the Spanish language. They also consume more Spanish-language content, often from their countries of origin.

Mobile use among US Hispanics also varies greatly based on generation, as first-generation Hispanics are not only more likely to speak Spanish, but also more likely to look for online content in-language, and to browse ethnically relevant news, entertainment and food content. Hispanic Millennials, on the other hand, care more actively about technology and “want to stand out and be noticed,” according to Adsmovil. While they incorporate many Hispanic music, family, and culinary traditions, they are more open-minded than older Hispanic Americans, and tend to evolve with the rest of the younger Millennial Americans in terms of political and cultural beliefs and practices.

Adsmovil’s key differentiator is how it builds and identifies audiences within the Hispanic community based on the content that Hispanics consume (language, keywords, context), instead of relying solely on targeting via location, app install or purchasing history. It has direct relationships and preferred access to Hispanic premium publishers offering qualifying traffic, and offers 100% SOV, and sponsorship and content integration opportunities with exclusively Hispanic publishers.

 

What: Waze opened its first office in Latin America a few weeks ago, with a team of eight led by Luis Ita, country manager for Mexico.
Why it matters: Waze will sell advertising space within its app, allowing brands to generate a connection with drivers.

In an effort to expand its presence in Latin America, Waze recently opened its first offices in Mexico. Luis Ita, Waze country manager for Mexico, and his team of eight will be in charge of implementing the company’s strategies in the region.

Through its analysis of collected data, the Waze mobile app offers drivers from different countries alternative routes to reach their destination, with the promise that they will be the least trafficked.

Samuel Keret
Samuel Keret, head of sales, Waze. (Photo: LinkedIn)

Samuel Keret, Waze’s head of sales, said that their traffic platform has worked since its inception to facilitate movement of people in urban areas and help them avoid traffic, from the moment people leave their homes in the morning until their return at night.

According to information on the app, users have 636 minutes of time at their disposal per month, in which the app seeks to facilitate their driving experiences by providing users with relevant and contextual information to help them find a functional service that fits their needs.

One of Waze’s objectives for Latin America is to develop a location marketing application, in order to offer a brand experience that is meaningful to users.

Ben Crowell
Benjamin Crowell, U.S. head of product marketing, Waze (Photo: LinkedIn)

According to Benjamin Crowell, Waze’s head of product marketing for the U.S., this app seeks to develop what he calls “the right experience.” This refers to how the application benefits other user activities outside of the digital world.

In line with its expansion plan, Waze introduced a new feature in its app for the Mexican market that integrates real-time advertising. To prevent possible car accidents when launching an ad, the app measures speed indexes in order to add additional information that can be read by the user when he/she is able to without putting the driver at risk.

Among the new features, the user will now be able to find a parking lot before starting a trip or, when approaching the destination, the app will help you locate the nearest parking spot.

Since the app knows the exact location of the user, Waze can offer its advertisers branding pins. This helps brands to flag their locations within the area where potential consumers are moving.

Globally, 1.3 million people are killed in traffic accidents, and Waze’s goal is to help prevent such incidents, added Keret, who confirmed that the company’s focus will remain in the automotive area for now.

What: There is an increased interest of Mexican brand marketers in sponsoring athletes, not just soccer players. What do Mexican brands really want when they are looking to sponsor an athlete”?
Why it matters: 50%  of all sports marketing expense in Mexico goes into soccer, but there is a huge opportunity for sponsoring non soccer related athletes. Brands want to be associated with a healthy lifestyle image and athletes can offer that, even though not everyone produces the same results.

In Mexico, athletes’ sponsorships, except for soccer, were practically non-existent 20 years ago.  Ana Gabriela Guevara, an athlete from Sonora, changed this when advertisers realized that people met in bars, even on weekdays, and waited until dawn if necessary to see the sprinter crossing the finish line at the Athens 2004 Olympic Games.
“Sports marketing has been evolving, in 2004 there was nothing. Things changed substantially once Ana Guevara came along” explains Claudia Ruiz, founder of AtletasMX, an agency specialized in representing and promoting athletes like diver Paola Espinosa, cyclist Belém Guerrero, weightlifter Carolina Valencia, boxer Óscar Valdez and Paraolympic swimmer Nely Miranda.
It is essential in Mexico to promote a culture of respect for athletes and make them feel valued, Ruiz adds.
We need to educate athletes and raise their awareness among brand marketers. When brands are seeking for talents, they believe those talents are like artists but athletes have little time available.
An athlete needs to know about his/her value in order to make a name for himself and be appealing for sponsors, “They usuallly get in touch with potential sponsors to tell them they are going to the Olympics and ask them for support. However, that kind of sponsorship, if successful, is ephemeral and leaves no legacy. They need to be prepared,” says Javier Salinas, Sports Director at Grupo Expansion.
Athletes often fall into the typical mistake of using their success in their sport as a selling argument, but the sponsor knows that if he only buys a triumph, he will not reap anything when the athlete does not win, which in fact happens all the time.”(Athletes) should focus their brand building on their experience, values, communication; on creating an institutional environment that speaks of social responsibility, of being in contact with fans, relating with the media, their marketing structure. All these things are what make a platform viable,” he adds.
Sports’ marketing goes in parallel with athletes’ sports professional career. Though in Mexico, it is just beginning to develop.

The sponsor knows that if he only buys a triumph, he will not reap anything when the athlete does not win, which in fact happens all the time.

Sponsors look at values

For sponsors, sport itself represents “values, identities and experiences that allow its’ brand to connect emotionally with the fans,” says Expansion’s Salinas.
Kellogg’s cereal brand Zucaritas is renowned for supporting athletes. But, what the brand really looks for is for the sponsored athlete to be “a source of inspiration to our target, to give the best of themselves so they remain competing in the sport,” explains Anna Consolato, Zucaritas manager for Mexico.
Zucaritas brand and its image, “El Tigre Toño” (“Tony the Tiger”) look to inspire children to practice sports. For that matter, they support athletes even before they are well-known or famous. Such is the case of Alejandra Orozco, the youngest Olympic medalist diver in the country.
“We want to chaperone in their careers,” says Consolato. “Not only do we rely on sports results, but also on the athlete to have a story that will impact and inspire.”

In Mexico, sports account for 0.5% of the GDP, half of which is generated by soccer and the rest by other disciplines.

Sports Marketing, a State Affair

In Mexico, sports account for 0.5% of the GDP, half of which is generated by soccer and the rest by other disciplines, says Salinas,  now at Grupo Expansion but who also worked as marketing director of Liga Bancomer and the Mexican Soccer Federation. But, the potential sports have in Mexico would be much greater, if they were properly exploited. “Of the more than 80 sports federations, just around 15 have an executive that is responsible for marketing,” points out Salinas. Even then, Mexico is spearheading sports marketing in Latin America.

The top 5 Mexican athletes ranked by their number of sponsorships

1. Ana Gabriela Guevara
2. Lorena Ochoa
3. Paola Espinosa
4. Paola Longoria
5. Rafael Márquez

Gabriela Gutiérrez contributed content and data to this article.

 

What?: Mexican soccer teams are being paid millions of dollars for broadcasting rights in the U.S.
Why it matters?: Broadcast channels in the U.S. are spending millions of dollars a year to obtain the rights to transmit Mexican soccer games in an effort to reach the 35 million Hispanics of Mexican descent living in the U.S. (Note: This article is a revised version of an article included in Portada’s 2016 Sports Marketing Guide, to get the full version, DOWNLOAD it here).

12106291_144901869198946_1403484663_n_002In 2013, Chivas, Guadalajara’s main football club, signed a $16 million-dollar deal with Univisión to broadcast their regular season games in the United States until 2018. This contract surpassed the team’s last agreement with Telemundo, who paid them $11 million for the rights from 2008 to 2013. With these numbers, Chivas has positioned itself as the highest-paid team for broadcasting games in the U.S (see table below)., ranked even above the entire Mexican national league, Liga MX, which is paid US$12 million a year by Univisión/ESPN to broadcast its games in English and Spanish.

Chivas is just one example of a Mexican soccer team that has its eye on the U.S. market. El America, Cruz Azul and Pumas are paid $15, $11 and $10 million dollars a year for the U.S. rights, respectively. Broadcast networks like Grupo Azteca are investing substantial amounts of money to shore up their soccer offerings.

“With more than 35 million Hispanics of Mexican descent living in the U.S., it is easy to understand why Mexican soccer teams decided to promote their audience there. The Liga MX even gets the highest audience rate of all games,” says Vicente Navarro, VP of business development at AC&M Group, a Hispanic and soccer marketing agency.

Good Things Happen North of the Border

TeamTV Channel
DealYearly income in
 USD
AméricaUnivisión2015-202015,000,000
AtlasUnivisión2013-20165,500,000
ChiapasUnivisión2013-20163,000,000
Cruz AzulUnivisión2013-201811,000,000
GuadalajaraUnivisión2013-201816,000,000
LeónTelemundo/NBC2012-20156,300,000
MonterreyUnivisión2013-20163,000,000
MoreliaAzteca América/ESPN2013-20165,000,000
PachucaTelemundo/NBC2014-20187,000,000
PueblaAzteca América/ESPN2013-20162,500,000
QuerétaroAzteca América/ESPN2014-20172,000,000
SantosUnivisión2013-20164,000,000
TigresUnivisión2013-20163,000,000
TijuanaAzteca América/ESPN2013-20163,500,000
TolucaUnivisión2013-20178,000,000
UNAMUnivisión2013-201810,000,000
VeracruzUnivisión2013-20173,500,000

Source: Wikipedia and Portada
Note: Mexico’s major soccer teams and their broadcast rights in the U.S.

According to Jorge Villalobos, CEO of Sports Marketing Monterrey, selling broadcast rights to American media channels is a win-win situation for everyone involved. The soccer team obtains more exposure (apart from being paid well), the TV channel gets quality content, the advertising companies have a platform on which to sell their content, and the fans are able to see their teams play.

Jorge Villalobos, CEO at Sports Marketing Monterrey
Jorge Villalobos, CEO at Sports Marketing Monterrey

There are many sports channels in the U.S. and most of them designate a bigger part of their broadcasting time to soccer, not only in Spanish but also in English, says Villalobos. “This is an industry that is evolving, and as the U.S. audience is becoming more sophisticated, it demands better quality.” The evolution of American audiences has to be reflected in the channels’ content, and if an audience is interested in Mexican soccer, the channels will do what it takes to show it.

Some years ago, it was crazy to think that the media would broadcast even 20% of the Mexican season’s friendly soccer games: All of the games that we play in the U.S. are transmitted not only nationally but also in Mexico and 20 other countries,” says Villalobos. What’s more, El Tri, Mexico’s national soccer team, plays more games in the U.S. than in Mexico.

Selling to an American Audience

Only 10 days ago Univision Deportes broadcast the Campeón de Campeones match (Champion of Champions) with Honda as title sponsor. The winners of the two most recent Liga MX seasons played against each other. Tellingly the match was not played in Mexico, but Dominguez Hills-Carson, CA.

“Soccer advertisers keep growing in the U.S.,” says Villalobos. “There are more and more brands that see soccer as their best tool to reach the Hispanic market and connect with it.” For this reason, agencies like Sports Marketing Monterrey are focusing on bringing Mexican soccer and brands closer, not only through advertising but also through other experiences like events and special promotions.

Vicente Navarro, VP of business development at AC&M Group
Vicente Navarro, VP of business development at AC&M Group
“The average income in the U.S. is much higher than in Mexico,” admits Navarro. “This also means that the fans have a higher purchasing power to buy stuff from their favourite teams.”

Still “it is not a secret that the fans have stopped spending their money on ‘things,’ because now, they want experiences,” admits Villalobos. So, when bringing a team to the U.S., the commercial relationship does not end after the game: the brands are sponsoring other events, too, for autograph signing or meet-and-greets with players, for example.

But brands cannot forget that U.S. Hispanics behave differently than Mexicans do in their home country. It is a mistake to think that one can apply the same campaign used during a soccer game in Mexico in the U.S., because “it is a different target and you have to discover how to reach it,” adds Villalobos.

DOWNLOAD Portada’s 2016 Sports Marketing Guide!

According to Navarro, selling broadcast rights to U.S. channels doesn’t represent a risk at all for the teams. “It could be risky for the companies buying the rights, or for the marketing agencies paying for advertising, if the team is having a terrible season,” he adds. “But, in general, the teams can bring in great revenue because they are already a strong global brand.”

In our first Interview with a Speaker of our upcoming #Portadalat (the Latin American Advertising and Media Summit and Online Video Forum in Miami on June 3-4), we talk to Ruben Leo Sarmiento, Marketing Director of Genomma Lab, an OTC (Over-the-Counter) and Personal Care maker that leads the advertiser rankings in many Latin American countries. Sarmiento, who is based in Mexico City, shared his ideas on Latin American TV Advertising, the Panregional vs. Local Marketing approach, Product Category Expansion and more…

Portada: What is it that attracted you to lead Marketing at Genomma Lab?

Ruben Leo Sarmiento
Ruben Leo Sarmiento

Ruben Leo Sarmiento, Marketing Director, Genomma Lab: “I accepted the challenge of working at Genomma Lab not only because it is expected from me to evolve the way marketing is done to successfully support the company’s sustainability in the longer term, but also because of the following three reasons: First, I truly believe I can help develop a unique balance between entrepreneurial and corporate management styles. Working and learning from the strategic orientation of an entrepreneurial marketing type but evolving it to a more ‘informed management style´, where your own perception of the opportunities is valued will be the future not only for Genomma Lab but for most companies. Change is the name of the game in every single aspect but must be done ‘smartly’. Second, Genomma Lab is a company in full expansion stage in to other countries and categories, founded in Mexico, where challenges and opportunities are countless to freely use your mind to take the company to unthinkable levels.Finally, the interesting mix of businesses, OTC and Personal Care, opens a world of possibilities and synergies to deliver and provide the consumer with more solutions in the area of general human health.”

Does Genomma Lab adopt a panregional or more localized marketing strategy? Ruben Leo Sarmiento, Marketing Director, Genomma Lab: R.L.S.:“Understanding that the consumer is at the center of the strategies of Genomma Lab International is fundamental to rapidly gain acceptance in the market. Generally speaking, most of the expansions followed a pre-identified “success route” that has been proven in Mexico, to expand into other Latin American countries and the Hispanic market in the U.S. Yet, we are aware of the differences and have the flexibility to leverage on local insights as boosters of our brands, currently integrated into marketing plans to ensure we understand and satisfy our consumers’ needs across the region. And as we continue to grow, we have developed a model to use different countries as test markets to define regional launches and plans.”

We developed a unique model of aggressive creative mass advertising through a TV-centric model to quickly create awareness.

Genomma Lab leads advertiser rankings in most Latin American countries it has a presence in.  Up till now most of the investment has been done in open TV. What is the main benefit of this strategy and how will it be modified going forward? Ruben Leo Sarmiento, Marketing Director, Genomma Lab:  “Genomma Lab International developed a unique model of aggressive creative mass advertising through a TV-centric model to quickly create awareness of its portfolio offering. We know that digital is everyone’s future not only at work but in our daily lives, yet, in developing markets TV is still among the top 3 mass media vehicles and TV will continue to be part of our core model, both open and Pay-TV. Digital and “quality” content as well as other vehicles to cover other consumer touch-points are considered important and will be part of our longer term marketing plans to maintain our share of “top of mind” leadership across our brands.”

Category expansion examples in anti-dandruff and hemorrhoid products.

Can you provide an example of category expansion. By this we mean an example of an increase in product offerings through which Genomma Lab has not cannibalized its own products or those of the competition?
R.L.S.: “Sure, there are several examples that we have in Genomma Lab International, where we have not only been able to compete succesfully, but they also reflect a very robust model that  develops non-existent categories from OTC to personal care businesses. One example is in the OTC business.  In the OTC business, Nikzon,has demonstrated to change a paradigm within the hemorrhoid condition. In Mexico nobody really advertised and educated consumers about the symptoms and treatments unless you went to a doctor with a relatively serious  condition, in addition to the ‘shame of being treated by a doctor’, more so in the case of men, and the reluctancy and discomfort to use a “topical” treatment, our company identified this situation and worked to develop an OTC “oral” treatment, educating and advertising the benefits. The result was that the category expanded quickly and Nikzon expanded consumption in the category and practically has a 100% segment share and more than 50% total category value share. ”

Do you have another example of category expansion? 
R.L.S.: “Yes, in the personal care business, anti-dandruff is an interesting challenge in Mexico given the scalp claimed condition of many Mexicans. There also is  a strong established competitor providing a ‘cosmetic´ solution for the market, yet this competitor is not able to cover all consumer needs. We identified a potential to develop the segment  by 3 times its former size by providing differentiated portfolio solutions (medical and cosmetic) and educating consumers differently according to target, to ensure we minimize cannibalization. With our current brands (Alert, Medicasp) and recent launch (Triatop), we carefully designed a strategy to differentiate our offerings at different levels  such as: Product and formula (including pricing), Communication strategy and go to market / channels strategy. We have been able to grow our sales at double-digit rates in the 3 brands over the past 6-9 months, minimizing cannibalization among our brands or those of competitors.”

Spotify 265x188On-demand music subscription service Spotify officially launched operations in Mexico on Tuesday with advertising support from Coca-Cola, which locked an exclusive 15-day deal to run its soft drink spots on the service.

Spotify also arrives with the clear goal of gaining ground against music piracy in the Mexican market, where 6,000 songs are downloaded illegally every year, according to figures from the Mexican Association of Phonogram Producers (Amprofon).

The Swedish service hopes to accomplish this with a catalog of 22 million songs that grows by 22,000 daily, allowing it to compete head to head with iTunes, which has been in Mexico since August 2009 and offers the largest catalog of music for sale.

“We have an offer and a product that people love, and we believe that our main competitor is piracy,” said Bahigh Acuña Shaadi, head of New Markets at Spotify and Director of its Mexico office, which is the first Latin American country the company will have operations in.

Spotify offers Mexican consumers an on-demand music service that can be played online from any device with an Internet connection and comes with three service options:

Free: Unlimited access to music through a computer, with the service monetized through advertising
Unlimited: Ad-free content at a monthly subscription of 49 pesos
Premium: Unlimited access to Spotify’s catalog from any desktop computer or mobile device for 99 pesos a month. It also allows downloading playlists to a mobile device without an internet connection.

Spotify also offers a social media experience that allows users to follow artists, celebrities and friends, and share their favorite songs or playlists.

You can follow and see what music the President of the United States listens to.

Mexican market facts:
• Only 36% of Mexicans use the Internet.
• There are 26 companies in the digital music business.
• In 2012, the sector generated revenues of 1,058 million pesos—an increase of 35% over 2011, according to Amprofon.
• Mexico’s low fixed broadband penetration — only 11.37% of households have broadband access and mobile broadband access is 9.62% per inhabitant — represents a challenge for digital content platforms.

About Spotify
• Arrived in Mexico as the 27th company in the digital music business.
• Mexico is its gateway to Latin America.
• It is the second most important company in Europe.
• Has a presence in 27 countries.
• 20% of users subscribe to its Premium service.
• Has 24 million active users worldwide, of which six million are paid subscribers.
• In 2013, it will pay record companies more than $500 million in royalties for playing their artists’ songs.
• Employs over 700 people worldwide and is valued at $4 billion dollars.

Spotify will become a household word, just like Google or Facebook, and I believe Spotify will become the benchmark for music.

The Coca-Cola ‘spark’

Just after its arrival in Mexico, Spotify inked an exclusive advertising deal with Coca-Cola to run the soft drink maker’s ads — as the sole advertiser on the service — through May 1st.

More options for digital advertising could open up after that date.

Spotify’s man in Mexico

Bahigh Acuña Shaadi, head of New Markets, has helmed the Mexico project since January. Prior to that, he oversaw teams at companies such as Monster (job portal), Pepsico and Publicis. He is confident that the team he will be working with in Mexico will be mainly composed of sales executives and social media campaign coordinators.

Our focus is to grow big in the region. We hope to be in the Top 10 list of countries with the most active users within a year, and after that have a great run and make the top five.
Translated by Candice Carmel.

TV Azteca’s sales in 2013 are projected to see a slight increase of 0.1%, in addition to pre-tax earnings, write-offs and depreciation (Ebitda) of 0% due to weak growth (0.2%) in advertising sales as a result of the industry’s complex environment, says Monex Grupo Financiero.

The TV network’s operating margins and EBITDA will stay unchanged at 32.4% and 36.8%, respectively, as a result of higher costs and sales expenses compared to the company’s total revenues.

Valeria Romo, securities analyst for telecommunications and airports at Monex, notes in a press release that TV Azteca is Mexico’s second-largest television company, with a 32% market share.

The company operates three television channels aimed at different segments of the population: Azteca 7 targets middle and upper-class young people, Azteca 13 is directed at the whole family, and Proyecto 40 targets viewers interested in news and culture.
“Azteca’s strategy in the Mexican market centers on a multi-functional format that uses content production to generate value relationships with viewers and a win-win relationship with companies that place ads on its channels,” says Romo.

Romo believes that Azteca’s value proposition is directed toward generating virtuous relationships between viewers and content, in order to provide advertisers with attractive and therefore more profitable ad space.

According to the report, the company has about 400 national advertisers and over 6,000 local ones, with its 10 largest advertisers representing 24% of the company’s total sales.

Translation: Candice Carmel

TV Azteca’s sales in 2013 are projected to see a slight increase of 0.1%, in addition to pre-tax earnings, write-offs and depreciation (Ebitda) of 0% due to weak growth (0.2%) in advertising sales as a result of the industry’s complex environment, says Monex Grupo Financiero.  TV Azteca has a subsidiary in the U.S. Hispanic market called  Azteca Americas.

The TV network’s operating margins and EBITDA will stay unchanged at 32.4% and 36.8%, respectively, as a result of higher costs and sales expenses compared to the company’s total revenues.

Valeria Romo, securities analyst for telecommunications and airports at Monex, notes i that TV Azteca is Mexico’s second-largest television company, with a 32% market share.

The company operates three television channels aimed at different segments of the population: Azteca 7 targets middle and upper-class young people, Azteca 13 is directed at the whole family, and Proyecto 40 targets viewers interested in news and culture. “Azteca’s strategy in the Mexican market centers on a multi-functional format that uses content production to generate value relationships with viewers and a win-win relationship with companies that place ads on its channels,” says Romo.

Romo believes that Azteca’s value proposition is directed toward generating virtuous relationships between viewers and content, in order to provide advertisers with attractive and therefore more profitable ad space.

According to the report, the company has about 400 national advertisers and over 6,000 local ones, with its 10 largest advertisers representing 24% of the company’s total sales.

Translated by Candice Carmel 

(From our Q2 2012 Print Issue)

Texans are in a constant state of flux. They have also profited from a strong economy. Texas has been one of the few bright spots in a generally weak U.S. economy. A recent report of the Milken Institute reflects the dominance of Texas cities.

San Antonio heads up the Milken Institute’s 2011 Best Performing Cities Index, but is just one of four Texas cities in the top five (with El Paso, Austin and Killeen-Temple-Fort Hood) and nine of the 25 best in the country (Houston, Mc Allen, Dallas, Fort Worth, Lubbock). Texas grades out well in job creation, according to the report, which found that Texas employers were responsible for one of every five U.S. jobs created from June 2010 to June 2011. For one thing, many Texas metro areas are benefiting from the military’s Base Realignment and Consolidation (BRAC) process, which has brought more families near the state’s armed forces facilities, from San Antonio’s Lackland Air Force Base to Killeen’s Fort Hood. These families need housing, health care and other services. Texas is also seeing a surge in IT equipment and software employment. Relatively cheap qualified workers as well as the absence of a state income tax are other factors the report cites explaining Texas success.

And what role do Hispanics play in all this? Like in the rest of the U.S., the robust population growth over the past decade was driven by Hispanics accounting for over 65% of the state’s increase since 2000. Today, Hispanics make up nearly 38% of the total population in Texas.”Houston has the 3rd largest Hispanic population in the nation. That’s significant. Dallas is number 6, followed by San Antonio (9th) and McAllen (10th) ,” says Loida Ruiz, Sales Manager at The Houston Chronicle. With the size of Texas’s population also comes a substantial buying power. The Lone Star State ranks as the 3rd largest in the nation with a Hispanic buying power of $38 billion. (Source: U.S. Diversity Markets Report 2010). In fact, “the non-Hispanic white population is now less than half making Texas a minority-majority state. This was led in part to Hispanic population growth but also sizeable increases within the Black and Asian communities as well. Texas media targeting Hispanics is relatively affordable for the scale of population reached. Media offerings appealing to the burgeoning Hispanic segment in Texas have flourished over the last 10 years, connecting with a population that now has considerable influence in development, commerce and culture,” says Kim Chance, Director of Media Planning Services at San Antonio based Bromley Communications.

More Acculturated and Wealthier
The composition of Texas’ Hispanic population is changing. In general terms, it is turning more acculturated and wealthier. While border towns like Brownsville and Laredo saw sharp increases due to immigration, the Texas-born Latinos across the state propelled the growth. In addition, the higher income Mexican immigration is substantially increasing overall Hispanic purchasing power. “With the problems in Mexico we have had a great influx of Mexican Nationals moving to Houston to escape the violence. This has brought a whole new market of more educated and higher income Hispanics that are moving to the Houston suburbs. Something similar is happening in San Antonio,” says The Houston Chronicle’s Loida Ruiz. Myrna Cortez, New Product Development Director at the San Antonio Express News agrees:” We are sensitive to trends which show us that we have a growing number of incoming Mexican Nationals. These are families who either have moved to San Antonio or own additional homes here, and this is due to both a need for personal security and the promise of entrepreneurial success. It’s possible that our first-generation market may grow substantially in the coming years.”

Major national advertisers make it a priority to reach Texas’s Hispanic population. National brands like MillerCoors, General Mills, and Western Union seek Bromley’s Hispanic media expertise to help them navigate through the diverse and complex marketplaces within the state, says Bromley’s Chance. According to the agency executive, many General Mills brands look to Houston, Dallas and San Antonio as important markets based on their affordability, Hispanic population size, and strong retailer relationships. Local grassroots media, including radio and newspapers, plays a very important role. According to Katia Camargo, president of a Houston based national advertising representation firm, “Hispanic newspapers continue to be a very important channel to communicate to our Hispanic readers. I think that our National Advertisers need to include Hispanics markets in their advertising campaigns, this is not a ‘might’ nowadays, it’s a ‘must’.

Newport Beach, CA, based door hanger marketing company Power Direct, has managed many campaigns using bilingual door hangers in high density Hispanic neighborhoods in Texas for brands including Family Dollar Stores, Kleenex, Nestle, Energizer Batteries and HEB Stores.

While major TV and radio networks including Univision, Telemundo and Lotus Entravision Reps have the ability to both target at the regional and local station level, many other media properties, particularly print media, have a very local focus.

The Rumbo newspaper network launched in 2003, which published Spanish-language newspapers in San Antonio, Austin, Houston and The Valley has been the only attempt to cover Texas with a regional newspaper network. The only surviving Rumbo newspaper is now published by Impremedia as a weekly newspaper in Houston. Buena Suerte, a Spanish-language classified newspaper, its content is 100% advertising, which serves the Greater Houston Area, Austin, San Antonio, and Dallas is expanding to El Paso in April. Only in Houston, the newspaper has a weekly circulation of 101,000 which are published in 10 different editions for the Houston market and distributed in over 3.500 distribution points.

While the Hispanic population is pervasive across the state, three fourths of Texas Hispanic adults can be found in the top 5 DMAs of Dallas, Houston, San Antonio, Rio Grande Valley and El Paso. It is important to note that every DMA is unique and requires a close examination by marketers seeking to reach the Hispanic segment.

“A major mistake is assuming that all Texas markets are the same. Great diversity prevails from the second largest state in land mass and population. Not only diverse in geography, but also in income, religion, politics, lifestyles, country of origins and language. You’ll find the Hispanic population is largely made up of Texans of Mexican heritage due in part to its close proximity to Mexico, “ Bromley’s Kim Chance adds.

A Look at the Major Texan Hispanic Markets

AUSTIN: THE STATE CAPITAL
The state capital does have a sizable Hispanic audience and major companies have taken notice for a long time and continue to adapt to the evolving Hispanic demographic. Retailer H. E. Butt Grocery Co. (H.E.B) is spending $100 million, it’s largest-ever Austin investment for the grocery chain, to expand, relocate and remodel several of its Austin-area stores this year part of a larger, statewide expansion and price-cutting campaign. The company recently remade its store at North Lamar Boulevard and Rundberg Lane to cater to Latino customers. The $7 million remodeling project — which added 6,000 square feet and created about 40 jobs — includes a masa factory that grinds corn daily, a tortilleria, a carniceria (Latino-focused butcher shop) and a deli with fresh salsas and cremas. H-EB is the dominant grocery chain in Central Texas, with 30-plus locations. Overall, the privately held company had sales of more than $18 billion last year and operates more than 335 stores in Texas and Northern Mexico.

Austin’s Hispanic population has grown more than any other group by 64% from 2000-2010 in the Greater Austin Metro Area.

Hispanics’purchasing power grew to $9.4 billion in the last year, according to Adelante Solutions Inc. “The majority of children in Austin Metro Area are now Hispanic,” says Josefina Villicaña Casati, Editorial Director at Cox Communications owned Austin Hispanic weekly, ¡Ahorasí! (Spanish-language, Circ. 27,659, weekly reach 71,253).

Two worlds…
Because Austin has appeal that cuts across cultures, making these offerings accessible to the growing population of Hispanics and engaging them to fully participate is important. Music festivals such as SXSW and ACL, for example, as well as civic and other events benefit from participation by Hispanics. “Reaching those Hispanics who prefer or are limited to information in Spanish helps ensure engagement in all levels in the community. Helping Hispanics integrate and succeed while allowing them to honor and celebrate the cultural differences that define them, is essential,” says ¡Ahorasí!’s Villicaña Casati.

…and editorial content to reflect them.
According to Villicaña Casati, “the consumption of news content has evolved as recent-immigrants become more acculturated and their children —which make up the majority in the Austin School District— become English dominant. When ¡Ahorasí! was first published in 2004, the content was focused on educating new immigrants, helping them navigate various education and political systems and engaging them to fully participate in their communities. Now the editorial focus is to maintain them involved in what impacts them locally, while giving them a glimpse of national and international news and guiding them to the website for more complete stories. The assumption that Spanish dominant and bilingual Hispanics are not digitally engaged has been recently challenged by various studies, which elevates the importance of giving readers the option to get daily information online.”

HOUSTON: THE NATION’S THIRD HISPANIC MARKET
Houston’s media caters to the nations’ third largest Hispanic market. Some properties have big plans going forward. According to Loida Ruiz, Sales Manager at the Houston Chronicle, La Voz, The Houston Chronicle’s Spanish-language publication, is going to be a big initiative in 2012. “We know that we have to keep up with this changing market and that includes expanding our distribution even more outside of the inner city. The relaunch will come with a big marketing campaign. We are going to host a La Voz Concert Series around September.” She adds that during the first quarter of 2012 they are launching Phase 1, “which is a re-allocation of where we distribute the paper. We’ve identified low performing areas of town and areas that have changed and where we need to increase distribution. These are areas with a high advertiser demand as well as a high quality Hispanic score. We will be increasing the distribution of La Voz in the second half of 2012 from 100,000 to 150,000. This is to meet the new readership needs. Another recent change is that La Voz is now being audited by ABC like The Houston Chronicle.”

La Voz is also the only Spanish-language newspaper in the Houston area that partners with Yahoo. “We offer our advertisers the opportunity to run online ads on Lavozdehouston.com and to reach every Spanish speaker/ reader on Yahoo in Houston with targeted digital advertising,” says Ruiz.

Strong Ad Categories
According to Ruiz, Pharma, Automotive and Retail are strong categories in 2012. “The pharmaceutical companies seem to be making a comeback. We saw a definite increase in that category in 2011 and it looks like it will continue in 2012. The Retail category is always strong, as is the Automotive. Budweiser continues to be one of our largest advertisers, both in print and in digital. Crest started a very aggressive Hispanic campaign in 2011 that looks like it’s continuing in 2012.”

One advantage Spanish-language media properties which are part of an organization that targets the general market have, is that they can also target Hispanics through their general market vehicles. The Houston Chronicle can direct advertisers to run digital ads on chron.com and geotarget specific Hispanic neighbourhoods.

An independent media company catering to Houston’s Hispanic’s is Semana. The Spanish-language newspaper has a weekly circulation of 145,000 (35% home-delivered and 65% through racks). It allows advertisers to place FSI’s by zones. Editorial emphasis is placed on local, state and national political candidates as well as as Immigration issues such as; National Security, TPS, border, Dream act, among others.

SAN ANTONIO: CATERING TO THE THIRD GEN AND MORE…
The evolution of San Antonio’s Hispanic demographic is very peculiar. The San Antonio Express News Myrna Cortez says that “when Conexión was launched in 2004 we researched and responded to the primarily third-generation market here.”

“What differentiates San Antonio’s Hispanics is the fact that the city’s proximity to Mexico makes it one of the oldest to be inhabited by Mexican born persons; consequently, their families have been in the U.S. longer. The majority of our city’s Hispanics are third-generation, are more acculturated, and are less fluent in Spanish. English-dominant Hispanics, though, are still very connected to their culture, and that is evident in the landscape and leadership of San Antonio. We’ve seen some failed attempts with other Hispanic newspapers in our area that followed another model, pursuing a first-generation market,” Cortez notes.

However, over the last few years higher income Spanish-dominant Mexicans have been immigrating to San Antonio. “It’s possible that our first-generation market may grow substantially in the coming years,” Cortez adds. The new trends are reflected in the content of Conexion, the San Antonio Express News publication targeting Hispanics. According to Cortez, “although we have approximately 90% English content, we provide Spanish content for those readers who expressed a desire to improve their command of the language. It’s also important for those first-generation readers we want to attract with Conexión.”

Big Box retailers
“It is evident from the consistent growth of FSIs –Free Standing Inserts or preprints- that big-box retailers are still extremely interested in capturing this lucrative market. Conexión has enjoyed a steady growth here, which tells us that it’s paid off for the retailers.” One of the reasons for the success with retailers may be that The San Antonio Express News and Conexion offer a TMC product (Total Market Coverage). With such a large Hispanic population in San Antonio, daily Express-News readers are approximately 50% Hispanic.”We effectively reach this audience via this general market vehicle and mySA.com, however, Conexión reaches Hispanics who are non-subscribers of the Express-News, giving us the ability to target this added audience with a medium written specifically for them. In addition, they can capture Hispanic online readers through SAcultura.com.”

Conexión ’s circulation is 50,000 weekly, and is 98% home-delivered with the balance in racked copies. “We now offer “Negocios,” which features locally-owned Hispanic businesses, as well as “Destinos,” an occasional travel page, and “NuestraGente,” a feature on non-prominent persons who our readers would find interesting,” Cortez concludes.

DALLAS/FT. WORTH: A PRIORITY FOR ADVERTISERS
Dallas is the sixth largest Hispanic DMA, after Los Angeles, New York, Houston, Miami and Chicago. Bromley’s Kim Chance cites several examples of clients catering to the city's Hispanics.. Ad agency Bromley recently launched a successful Hispanic test in Dallas for Totino’s Party Pizza that leveraged Hispanics affinity to radio and the appeal of highly popular radio personalities in the market. This effort was supported with outdoor near key grocers and included in-store sampling to entice consumer trial of the product. Totino’s encountered a lift in Hispanic sales which positioned the brand to consider a national media rollout. Bromley’s Chance also reports about a “recent holiday effort in Dallas in support of our Money Transfer client Orlandi Valuta. The campaign combined different local media, in-store incentives and a consumer promotion to drive.”

Other marketers who put a strong emphasis on the Dallas/Ft, Worth market include Miller Beer’s partnership with the Dallas Cowboys. As the official beer of the Dallas Cowboys, Miller Lite offered fans the opportunity to win an exclusive Cowboys’ experience through an on-package sweepstakes last year. The promotion was supported with Hispanic spot radio, public relations, and on-site activation across Texas.

Hispanic Retail chains…
Regional retail chains such as Fiesta, La Michoacan, El Rio Grande, Monterrey, Terry’s and El Rancho specifically cater to Dallas/Ft. Worth Hispanics. According to Rincon’s 2010 Latino Trendline Study of the market, Walmart Supercenters have a 25.4 percent share of the Latino market, Fiesta 24.9 percent and El Rancho about 8.2 percent. And foreign-born Hispanics preferred Fiesta over Wal-Mart, the study found.

…and Specialty Grocers
But the emergence of Hispanic specialty stores like La Superior, Los Arcos, Mi Tierra and El Paya is really the big news. At these stores Hispanics get familiar cuts of beef, goat and pork, along with freshly made sausages and barbacoa — marinated cooked meat. Nearly all of the clientele of these stores is Hispanic — 90 percent immigrants and 10 percent U.S.-born.

Many of these local Hispanic retailers advertise in Dallas/Ft. Worth Hispanic media. Belo Corp’s Al Día Spanish-language newspaper features Wednesday retail inserts with grocery advertising. Al Día is published on Wednesday’s and Saturday’s and has a circulation of 125,000.

RIO GRANDE VALLEY – EL VALLE
The Rio Grande Valley or the Lower Rio Grande Valley, informally called The Valley, is located in the southernmost tip of South Texas. The Rio Grande Valley is also called “El Valle”, the Spanish translation of “the valley”, by those who live there. Mc Allen, the second largest city after Brownsville is the tenth largest Hispanic market nationwide.

Freedom Communications publishes several newspapers in the Valley. It owns three English-language dailies including The Brownsville Herald, which publishes Spanish-language daily el Nuevo Heraldo, The Harlingen Morning Star, publisher of the weekly tabloid La Estrella, and The Monitor in McAllen newspaper, which launched the Spanish-language La Frontera in July 2004. La Frontera stopped publication last year due to challenging economic conditions.

EL PASO: WALKING DISTANCE TO MEXICO
Hispanics make up about 82% of El Paso’s population. El Paso is within walking distance of Mexico; Downtown El Paso and Downtown Ciudad Juárez are just a few blocks away from each other. “It’s probably worth noting that the majority of the El Paso Times readers are Hispanics as well”, says Jim Weddell, VP Digital Media at El Paso Times, which is published by the Texas-New Mexico Newspaper Partnership (owned by Gannett and Media News Group). El Paso Times produces Hispanic specific publications El Paso y Más and TV y Más, which are both published in Spanish.

Last year the El Paso Times introduced SomosFrontera.com which according to Weddell, “seeks to provide content of interest to the young, growing community that feels comfortable on either side of the border, who has an interest in the news, entertainment, sports and relationships among Ciudad Juárez, El Paso and Southern New Mexico. It’s editor and a core group of reporters who focus on border issues and Ciudad Juárez content, seek to go beyond the violence affecting Ciudad Juárez to tell the stories of a community in transition toward a vibrant, growing market.”

Border Media and Advertising
Media properties and media representation firms make it their business to convince advertisers on both sides of the border that they should reach audiences across the Mexican/U.S. borders to increase their sales. “Upper income Mexican residents have the disposable income, the passports, and the transportation to travel to the U.S. to buy their needed goods,” says Lynnell Walker, General Manager of Universal EP, an El Paso based firm that specializes in Mexico- U.S border media placement.

Walker adds that “it has been a long battle for companies like ours to convince the US advertisers (retail, electronics, furniture) that their primary marketing focus should be in Mexico on media that specifically reaches the Mexican citizen. Many agency media buyers could not comprehend the purchase of media not based on an Arbitron/Nielsen rating. When purchasing media in Mexico you need to look at their rating systems (if any) or their potential reach in a market, based on power, format, programming etc. Today the most successful agencies look at socio-economic levels with a specific target to reach these individuals. “US Advertisers are promoting their hotels/casinos, clothes, electronics, furniture, restaurants and events. Mexican advertisers are promoting their new U.S. businesses and their products to be distributed in the U.S. According to Walker, advertising in both directions is growing: “There are a lot more Mexican products being distributed into the United States and businesses opening up in border U.S. cities belonging to former Mexican residents who now live in the U.S. because of insecurity in Mexico. Advertisers for US products and companies are buying more advertising on Mexican media properties because they see the economic potential.”

US. Hispanic media properties, most notably Univision but also online ad networks including Batanga, have sales offices in Mexico City specifically targeting Mexican advertisers who want to reach Hispanic audiences.  Mexican corporations are eager to target Mexican inmigrants in the U.S., who not only can buy products and services for themselves but also for their relatives back home.  These Mexican companies tend to have a high brand equity among U.S. Hispanic consumers of Mexican origin. Advertising to U.S. Hispanic audiences makes a lot of sense for retailers like Grupo Liverpool and Elektra. To geotarget online advertising to U.S. Hispanic audiences is an option, but so are TV and print advertising.  Elektra, for example,  advertises in magazines of  Miami based, Maya Publishing Group, itself owned by Mexico City’s Notmusa,  such as TV Notas. 

Survey at Portada’s Mexico Forum

According to a survey during Portada’s  Mexico Media and Advertising Forum Mexico City last October, most Mexican marketers believe that belonging to the Latin culture gives them first-hand knowledge of the U.S. Hispanic market that can be put to their advantage. Many of them said that sharing the same language, values and customs of the Spanish-speaking community ensures greater consumer awareness of the Hispanic market. It makes sense since approximately 70% of the Hispanic population in the U.S. is of Mexican origin. 
 
In fact, many executives interviewed believe that the research tools developed specifically for the Mexican consumer can also be applied to the Hispanic market. One executive summed it up this way: "We have a close link to the feelings of the Hispanic world."

 
México for export ?
Many of the executives interviewed also believe that Mexico has great potential for innovation and that this feature can be exported to Latin American markets and the U.S. Hispanic market. They also believe that providing good service on a tight budget is a know-how possessed by most professionals in Mexico and that this in itself is a big plus that can be exploited in other markets.

Prisa Digital and Maya Publishing Group, a company of Grupo Editorial Notmusa, one of the largest publishing companies in Mexico, announced their partnership to market the advertising space of online properties of Notmusa in the Hispanic and Portuguese markets of the Latin American region.

With the agreement Prisa Digital becomes a sales representative of the online editions of TV Notas, Record, Veintitantos, 15 a 20 and H Extremo in the USA and in Latin America in the following markets: Colombia, Argentina, Brazil, Chile, Peru, Bolivia, Uruguay, Ecuador and Venezuela. The online editions of Maya Publishing have more than one million users and an audience coveted by advertisers.

Ana Laura Rivaroli, CEO of Maya Publishing Group, LLC, said: “We trust PRISA Digital as an established industry leader as their websites are visited by more than 24 million unique users per month around the world. With this scope and support we see a clear expansion beyond the borders of Mexico and the United States.”

Alvaro Palacios, Vice President of Sales and Operations for PRISA Digital Americas commented: “Maya Publishing Group properties contain a unique combination for advertisers in the region as their audience is composed of some of the most valued segments: young people, teenagers, sports enthusiasts and celebrity fans.”

Prisa Digital and Maya Publishing Group, a company of Grupo Editorial Notmusa, one of the largest publishing companies in Mexico, announced their partnership to market the advertising space of online properties of Notmusa in the Hispanic and Portuguese markets of the Latin American region.

With the agreement Prisa Digital becomes a sales representative of the online editions of TV Notas, Record, Veintitantos, 15 a 20 and H Extremo in the USA and in Latin America in the following markets: Colombia, Argentina, Brazil, Chile, Peru, Bolivia, Uruguay, Ecuador and Venezuela. The online editions of Maya Publishing have more than one million users and an audience coveted by advertisers.

Ana Laura Rivaroli, CEO of Maya Publishing Group, LLC, said: “We trust PRISA Digital as an established industry leader as their websites are visited by more than 24 million unique users per month around the world. With this scope and support we see a clear expansion beyond the borders of Mexico and the United States.”

Alvaro Palacios, Vice President of Sales and Operations for PRISA Digital Americas commented: “Maya Publishing Group properties contain a unique combination for advertisers in the region as their audience is composed of some of the most valued segments: young people, teenagers, sports enthusiasts and celebrity fans.”

Grupo W announced that it will begin operations in the U.S. The firm decided to open offices in Miami to work with agencies and advertisers in the Hispanic Market and offer the digital services the company offers in México. The operations begin in two weeks, on October 25.

The agency informed that is willing to work with agencies and advertisers of the Hispanic market and offer them its digital services. Grupo W hired Lynn Ponder as new business developer to search new clients in the US.

“We are open to colaborate with agencies with experience in the U.S. Hispanic Market”, said Ulises Valencia, partner and founder of Grupo W. Miguel Calderón, co-founder added “We’ve worked with agencies like Wieden + Kennedy, Goodby Silverstein & Partners, 180 Amsterdam and Crispin Porter + Bogusky. Our plan is to take this experience in our new venture. We are looking forward to work with Hispanic agencies.”.

Mexican publishing house Grupo Editorial Expansion set up GEE International shortly after the Mexican publishing house was bought by Time Inc. in 2005. GrupoEditorial Expansion is Mexicos third largest publishing house. The sector is led by Editorial Televisa.

Dalia Sánchez, a former Conde Nast International executive who succeeded Bryan Palmer as GEE International´s Managing Director last year leads a team of 6 people. In Mexico, Grupo Editorial Expansion has more than 600 employees working mostly in Mexico City, but also in Monterrey and Guadalajara.

Grupo Editorial Expansion publishes 17 magazines and 6 websites reaching more than 6.3 million readers and getting 3 million visits per month. The publications and websites are divided in the following content units: Business, Womens magazines, Mens magazines, Entertainment and Travel.

German Zimbron, Marketing Manager of GEE International in Miami, tells Portada that the publishing houses advertising bestsellers are the business magazine Expansion, gossip and lifestyle magazine Quien as well as its stable of in-flight magazines. Due to their relatively high-purchasing power and captive audiences in-flight magazines tend to charge higher rates than other consumer magazines. In the case of Vuelo, one of Grupo Expansions in-flights magazines, the rate for a full page ad is $13,200 compared to $8,000 for Expansion.


Luxury category….

Luxury advertisers are an important part of GEE Expansion International sales. ¨The luxury category is particularly important to us¨”, Zimbron says. “Mexico is the number one Latin American luxury product consumer. That includes luxury watches”, he notes. Zimbron adds that his team visits more clients directly rather than visiting agencies. 

The below table shows an approximate sales breakdown of Grupo Editorial Expansion International sales (Media buys in one or more Latin American countries that originated outside of Latin America).

Region

% of total International Sales

U.S.A

85% (up to 50% from South Florida)

Europe

10% (particularly in France, UK and Switzerland)

Far East

5% (particularly Japan)

 

….and Interactive

GEE International also sells advertising in Grupo Editorial Expansion websites including CNNExpansion.com, Quien.com (site for the namesake celebrity gossip magazine), Chilango.com (website for the namesake magazine about Mexico City called Chilango), Mediotiempo.com (soccer), SaludEmpresarial.com (which targets accountants and lawyers), and Metrocubicos.com (about real estate).

Zimbron, Marketing Manager at GEE International, tells Portada that his company has particularly high hopes for the soccer website Mediotiempo.com, which Grupo Editorial Expansion acquired in 2008. He also thinks that this website will get a substantial amount of users based in the U.S.Hispanic market which can be targeted by advertisers through IP geotargeting (for an example of a Latin American website geotargeting to U.S. Hispanics click here.)

Approximately 12% of Mediotiempo.com´s 2.5 million unique visitors are based in the U.S.

Another website often visited by Mexican nationals in the U.S. and elsewhere is CnnExpansion.com (which attracts more than 750,000 users per month).


Related Articles:

Bulgari doing Co-ops in Latin America

Alma, Esquire and Poder Expand in Latin America

Central American Magazine: Striking Work and Life/U.S. and LatAm Balance

The ¡Sorpresa! Hispanic television network has acquired exclusive rights to a broadcast a popular Mexican children’s series from BouncyNet Inc. for a three year U.S. broadcast.   

The gameshow, “El Reto Burundis” debuted as the highest rated show in its time slot. This partnership with BouncyNet Inc. allows ¡Sorpresa! to connect with its Mexican-American target with popular and relevant programming.

Also, advertisers will have the opportunity to build upon the success of the program in Mexico with numerous ¡Sorpresa! multi-platform opportunities in the U.S.

Related Articles:

August 20, 2007 Sorpresa! Announces Partnership with Hamptons Film Festival

August 7, 2007 Sorpresa Network Enhances Interactive Ad Sales

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