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A recap of news and trends in the Sports Marketing world as compiled by Portada’s Editorial team….

“Hot” Content Distribution and Monetization Play

Switzerland-based marketing firm Infront Sports & Media has acquired 51% in Omnigon, which specializes in developing digital content distribution platforms for teams, leagues and entertainment companies. Infront Sports & Media is owned by Chinese Conglomerate Dalian Wanda Group, which is investing in companies that are at the intersection of sports and entertainment. Omnigon is a consulting firm that helps sports, media and entertainment providers to develop mobile apps and websites. Omnigon’s client list includes World Rugby, PGA Tour, NASCAR, AS Roma, Fox, Fox Sports, Miami Heat and WWE. The New York-based firm will continue to operate as a stand-alone entity, keeping its brand name.

Portada’s 2016 Hispanic Sports Marketing Guide will be published on March 1. To reserve your spot in this marquee lead-gen and branding tool please reach out to Sales and Marketing Director Kelley Eberhardt at kelley@portada-online.com.

ESPN: OTT or no OTT, That is the Question

Hispanic Online VideoA survey conducted by the marketing firm Civic Science and highlighted in a note by BTIG notes that more than half of cable subscribers would be happy to drop ESPN to save US $8 a month. Additionally, only 6% of the survey’s respondents said they would be willing to pay US $20 a month for a Netflix-like ESPN offering. ESPN currently charges providers more than US $6 a subscriber to carry the network. So if consumers had the choice, usually only given with direct-to-consumer online video options, they would not pay much for an ESPN offering. Reports have indicated ESPN would need to charge $30 for a similar bundle for it to make economic sense. Myles Udland writes in Business Insider that “Disney cannot take ESPN direct-to-consumer and they know it, whether they admit that publicly or not….The math for a direct-to-consumer offering for a basic cable network does not work, especially for channel(s) with very high monthly fees embedded within the current MVPD bundle. Per Disney’s, the owner of ESPN, November SEC filing, ESPN lost nearly 7 million subscribers over the last two years as the number of cord cutters continues to increase. At the end of the fourth quarter of fiscal 2015, ESPN had a subscriber base of 92 million in comparison to 95 million at the end of the prior-year quarter and regressing to the level it had a decade ago.

Oscar de la Hoya’s Channels Now on OTT

Two new boxing channels are coming to streaming TV service FilmOn TV Networks, thanks to a new partnership announced by Oscar De La Hoya, Chairman and CEO of Golden Boy Promotions, and FilmOn TV Networks CEO Alki David. Both channels will go live at the end of January and will be free as part of filmon.com’s ad-supported OTT service. 10-time world champion De La Hoya’s classic fights will air on the Golden Boy Channel, while Golden Boy Promotions’ monthly boxing series LA FIGHT CLUB will live stream its bi-weekly fights on The Ring, with the first kicking off at 5:30 PST on January 29th. “Past, present or future, Golden Boy Promotions has, is and always will be about pitting the best against the best,” said Oscar De La Hoya, Chairman and CEO of Golden Boy Promotions. “This new partnership with FilmOn will only further showcase our mission by offering fans the best fights from today and yesterday.”

ESPN Extends Australian Open Rights

For those of you watching the Australian Open, know that if you move to the Caribbean or AustraliaLatin America you will be able to continue watching it through ESPN for the foreseeable future. ESPN International reached a five-year extension of its agreement with Tennis Australia for exclusive distribution rights in Latin America and the Caribbean of the Australian Open, the tennis season’s first Grand Slam event, it was announced by Richard Heaselgrave, commercial director of Tennis Australia and Tim Bunnell, senior vice president of production, programming, marketing and advertising sales for ESPN International. The agreement extends ESPN’s current distribution agreement through 2021. Under terms of the extension, ESPN will continue to have exclusive pay television and digital distribution rights throughout Latin America and the Caribbean. In addition, beginning in 2017, ESPN will have the distribution rights to several lead-up events to the Australian Open, including the Hopman Cup, World Tennis Challenge, Brisbane International and Apia International. Also, ESPN will have the rights to select coverage of the Australian Open qualifiers, “Legends,” Juniors and Wheelchair events.

Milwaukee Bucks go Hispanic

MilwaukeeThe Milwaukee Bucks announced a new initiative to expand the team’s presence in Milwaukee’s Hispanic community, highlighted by Spanish language radio broadcasts of five upcoming Bucks games. This year’s Spanish broadcasts are the cornerstone of a new partnership between the team and Bustos Media, which operates WDDW 104.7 FM “La Gran D” in Milwaukee. “We are very pleased to announce this partnership with the Milwaukee Bucks,” John Bustos, managing partner of WDDW 104.7 FM, said. “As this innovative new ownership group and management team return this proud franchise to prominence, they also are changing the landscape of Greater Milwaukee and will make a huge impact on the community. We look forward to working with them to bring that excitement to the fast-growing Hispanic community that we serve so well.”

Fox Attempts to Make Uefa League More Popular

Fox Sports kicked off its marketing campaign for the return of the Bundesliga, half a year after the network started airing matches from Germany’s top soccer league on its networks worldwide. That launch was hyped as groundbreaking, but the results have been mixed. Ratings in the U.S. for Bundesliga matches have been poor, averaging 55,000 per match for the first 17 games Fox aired in the 2015/2016 season, or around a tenth of what NBC draws for its English Premier League matches stateside. Only Leverkusen has averaged over 100,000 viewers per match in the U.S., largely due to Mexican star Javier Hernandez, aka Chicharito, who is a big draw for U.S. Hispanic fans. The biggest single draw in the U.S. was for a one-off, tape-delayed airing of the Sept. 13 match between Bayern Munich and Augsburg, which reached 926,000 viewers.

We are looking at Nielsen’s social content ratings of the week of February 18 to 24 in order to get a good sense of which social platforms are the best tool for viewers to engage with their favorite programming.

 

This week, Nielsen’s Weekly Social Ratings show just how much of a passion point movies are. The first ever hostless Oscars show was the star, as it generated more interactions than any other special episode or sports event. Whereas previously we had seen sports inspired a great percentage of social activity, interactions related to TV episodes or specials accounted for 62% of the rankings this week, similarly to what happened with the 61st Grammy Awards Show. Furthermore, we can see that Hispanics brought about a good amount of social interaction as well, as the Premio Lo Nuestro show took the second spot right behind the Oscars, and 5 out of 10 personalities on the Top Talent list were Latinos. Take a look at the key insights below.

 

WEEKLY TOP TEN SERIES AND SPECIALS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1ABC

The Oscars

2/24/19

17,6797523,48613,440
2Univision

Premio Lo nuestro 2019

2/21/19

6,6944166,100178
3NBC

America’s Got Talent

2/18/19

1,6562331,250173
4USA Network

WWE Monday Night RAW

2/18/19

1,50695982428
5USA Network

WWE SmackDown!

2/19/19

1,11267774271
6ABC

Grey’s Anatomy

2/21/19

7323362474
7ABC

The Bachelor

2/18/19

5783187388
8NBC

This is Us

2/19/19

4862637387
9CBS

The Big Bang Theory

2/21/19

4091237721
10NBC

Ellen’s Game of Games

2/19/19

376734425
[Source: Nielsen]

Key Insights

  • Out of the total of interactions on the top ten spots, 62.7(31.2 million posts) were related to a TV episode or special.
  • Facebook had 1.6 million interactions, a significant decrease compared to the previous analysis’ 4.9 million.
  • Twitter received 15 million interactions with TV episodes or specials, winning once again over the other two platforms.
  • Most interactions (76%) about the Oscars happened on Twitter, just as it happened with the Grammy’s two weeks ago.

 

WEEKLY TOP TEN SPORTS EVENTS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1ESPN

North Carolina at Duke

College Basketball

2/20/19

3,1841141,8331,237
2ABC

Houston Rockets at Golden State Warriors

NBA Basketball

2/23/19

2,327801,978268
3TNT

Houston Rockets at Los Angeles Lakers

NBA Basketball

2/21/19

1,778791,289410
4ESPN*, ESPN Deportes

San Antonio Spurs at Toronto Raptors

NBA Basketball

2/22/19

1,336441,110182
5ESPN*, ESPN Deportes

Utah Jazz at Oklahoma City Thunder

NBA Basketball

2/22/19

1,04581705259
6TNT

Boston Celtics at Milwaukee Bucks

NBA Basketball

2/21/19

83922663154
7NBC

Pittsburgh Penguins vs. Philadelphia Flyers

NHL Hockey

2/23/19

80465484255
8NBA TV

San Antonio Spurs at New York Knicks

NBA Basketball

2/24/19

57314445113
9ESPN

Duke at Syracuse

College Basketball

2/23/19

46420319125
10FOX*, FOX Deportes

Folds of Honor QuikTrip 500

NASCAR Monster Energy Series

2/24/19

38265138179
[Source: Nielsen]

Key Insights

  • Over 12.7 million interactions, or 25% of the total of the three top ten rankings provided by Nielsen related to TV episodes or special events, were about sports.
  • From these, only 584,000 interactions were posted on Facebook.
  • Twitter received 3.1 million posts related to sports events, or 24%.
  • About 70(8,9 million) posts were made on Instagram, making it the winning platform in the sports category once again.
  • Most events were basketball matches, though a Nascar event and an NHL one also generated interactions.

TOP TEN WEEKLY TALENT

RANKNETWORK / TALENT / PROGRAMENGAGEMENTS
(000)
FacebookInstagramTwitter
1Univision

Lele Pons

Premio Lo nuestro 2019

92819243
2Univision

Anitta

Premio Lo nuestro 2019

906488616
3Univision

Natti Natasha

Premio Lo nuestro 2019

74337391
4ABC

Bohemian Rhapsody

The Oscars

6464352380
5ABC

Angela Bassett

The Oscars

516814313
6NBC

Terry Crews

America’s Got Talent

4972542745
7Univision

Daddy Yankee

Premio Lo nuestro 2019

449414063
8ABC

Jason Momoa

The Oscars

42004200
9NBC

Ellen DeGeneres

Ellen’s Game of Games

370634223
10Univision

Nacho

Premio Lo nuestro 2019

36603660.1
[Source: Nielsen]

Key Insights

  • According to Nielsen’s data, 5.8 million viewers engaged with the top ten posts sent directly from social media accounts owned or affiliated with TV programming.
  • For the top 10 spots, Facebook received 204,000 engagements, Twitter got 174,100, and Instagram came out on top again with 5,4 million.
  • The relationship between top series and top TV talents is very close: all of the top 10 TV talents appeared in the transmission of the popular shows of the week.
  • Interestingly, 5 out of 10 of the most popular talents appeared on Premio lo Nuestro, and are U.S. Hispanics.

 

We are looking at Nielsen’s social content ratings of the week of February 4 to 10 in order to get a good sense of which social platforms are the best tool for viewers to engage with their favorite programming.

 

After the excitement created by the LIII Super Bowl, we are now well into the award season. This week, Nielsen’s Weekly Social Ratings show that the 61st Annual Grammy Awards generated more interactions than any other special episode or sports event. Whereas previously we had seen sports inspired a great percentage of social activity, interactions related to TV episodes or specials accounted for 65% of the rankings this week. Take a look at the key insights below.

 

WEEKLY TOP TEN SERIES AND SPECIALS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1CBS

61st Annual Grammy Awards

2/10/19

26,2159535,13220,130
2TV Event

State of the Union 2019

2/05/19

15,1721,77369812,701
3USA Network

WWE Monday Night RAW

2/04/19

1,401119996286
4NBC

The Tonight Show Starring Jimmy Fallon

2/05/19

9757788316
5NBC

America’s Got Talent

2/04/19

940226507207
6The CW

Supernatural

2/07/19

927170161596
7The CW

Riverdale

2/06/19

9132572339
8USA Network

WWE SmackDown!

2/05/19

83185553193
9ABC

Grey’s Anatomy

2/07/19

6342654167
10MTV

Nick Cannon Presents: Wild ‘n Out

2/08/19

504847520
[Source: Nielsen]

Key Insights

  • Out of the total of interactions on the top ten spots, 65(48.5 million posts) were related to a TV episode or special.
  • Facebook had 4.9 million interactions, a significant increase compared to the previous week’s 0.7 million.
  • Twitter received an astounding 34.5 million interactions with TV episodes or specials, winning by a landslide over the other two platforms.
  • Most interactions (76%) about the 61st Grammy Awards happened on Twitter, just as it happened with the State of the Union transmission (83% of interactions on Twitter).

 

WEEKLY TOP TEN SPORTS EVENTS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1TNT

Los Angeles Lakers at Boston Celtics

NBA Basketball

2/07/19

6,0403394,5601,142
2Pay-Per-View

Whittaker vs. Gastelum

UFC 234

2/09/19

2,003241,728250
3ABC

Los Angeles Lakers at Philadelphia 76ers

NBA Basketball

2/10/19

1,879531,290535
4NBA TV

Miami Heat at Golden State Warriors

NBA Basketball

2/10/19

1,779821,520176
5ESPN

San Antonio Spurs at Golden State Warriors

NBA Basketball

2/06/19

1,597671,378152
6ESPN

Denver Nuggets at Philadelphia 76ers

NBA Basketball

2/08/19

1,344311,114199
7ABC

Oklahoma City Thunder at Houston Rockets

NBA Basketball

2/09/19

1,20963903244
8ESPN*, ESPN Deportes

Whittaker vs. Gastelum – Prelims

UFC 234

2/09/19

1,11413988113
9ESPN

Duke at Virginia

College Basketball

2/09/19

83229657145
10ESPN

Washington Wizards at Milwaukee Bucks

NBA Basketball

2/06/19

82232559230
[Source: Nielsen]

Key Insights

  • Over 18.6 million interactions, or 25% of the total of the three top ten rankings provided by Nielsen related to TV episodes or special events, were about sports. This means a considerable drop compared to the previous weeks.
  • From these, only 733,000 interactions were posted on Facebook.
  • Twitter received 3.1 million posts related to sports events, or 16,6%.
  • About 78(14,6 million) posts were made on Instagram, making it the winning platform in the sports category once again.
  • Most events were basketball matches, though a couple of UFC events also generated interactions.

 

 TOP TEN WEEKLY TALENT

RANKNETWORK / TALENT / PROGRAMENGAGEMENTS
(000)
FacebookInstagramTwitter
1CBS
Cardi B61st Annual Grammy Awards
2,98202,877104
2CBS
Miley Cyrus61st Annual Grammy Awards
772590713
3TV Event
Donald TrumpState of the Union 2019
7645250239
4CBS
J Balvin61st Annual Grammy Awards
538195145
5The CW
Jared PadaleckiSupernatural
4511300320
6CBS
Shawn Mendes61st Annual Grammy Awards
43000430
7CBS
Anna Kendrick61st Annual Grammy Awards
36200362
8CBS
Lady Gaga61st Annual Grammy Awards
355630292
9CBS
Camila Cabello61st Annual Grammy Awards
35000350
10NBC
Terry CrewsAmerica’s Got Talent
3173120780
[Source: Nielsen]

Key Insights

  • According to Nielsen’s data, 7.3 million viewers (double the amount from the previous week) engaged with the top ten posts sent directly from social media accounts owned or affiliated with TV programming.
  • For the top 10 spots, Facebook received 827,000 engagements, Twitter got 2,8 million, and Instagram came out on top again with 3,5 million.
  • The relationship between top series and top TV talents is very close: 7 out of the top 10 TV talents appeared in the transmission of the Grammy Awards.

 

We are looking at Nielsen’s social content ratings of the week of January 28 to February 3 in order to get a good sense of which social platforms are the best tool for viewers to engage with their favorite programming.

 

This week, the Super Bowl got everyone talking on Social Media, or that seems to be the case if we look at Nielsen’s Social Ratings from January 28 to February 3. As we saw in the previous analysis of Nielsen’s rankings, Instagram is the clear winner of TV-programming-related social media; just as the last time, more than half (59%) of the interactions and engagements with the top 30 TV specials or talents were posted on Instagram, while Twitter received 22 million and Facebook was last with 3.1 million. Overall, this period of time saw an increase of about 22 million posts on social media, mostly due to the Super Bowl. Here we extract a few insights from Nielsen’s data in order to get a good sense of which broadcasters and programs generate more engagement, and will try to find out whether there is a relationship between topics and social media.

 

WEEKLY TOP TEN SERIES AND SPECIALS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1CBS

NFL Honors

2/02/19

2,958982,501359
2USA Network

WWE SmackDown!

1/29/19

2,3351411,783411
3USA Network

WWE Monday Night RAW

1/28/19

2,1761211,681374
4ABC

Grey’s Anatomy

1/31/19

1,350541,19997
5NBC

America’s Got Talent

1/28/19

1,278206846226
6The CW

Riverdale

1/30/19

9933775215
7NBC

Brooklyn Nine-Nine

1/31/19

66111443206
8NBC

The Titan Games

1/31/19

644961124
9Univision

Mira quien baila All Stars

2/03/19

630505764
10The CW

Supernatural

1/31/19

46534120311
[Source: Nielsen]

 

Key Insights

  • Out of the total of interactions on the top ten spots, 21.7% (13.4 million posts) were related to a TV episode or special.
  • Facebook had 727,000 interactions, almost 300,000 more than the week of January 14-20.
  • Twitter, received 2.2 million interactions with TV episodes or specials.
  • However, none of those two could match Instagram, which got 10.5 million posts, about 78% of the top 10 posts in this category.
  • Instagram won by a landslide on almost all the events, except for Supernatural, which got more interactions on Twitter.
  • Interestingly, one of the shows in the top 10 was Mira quien baila All Stars, a Latino-oriented TV program.

 

WEEKLY TOP TEN SPORTS EVENTS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1CBS*, ESPN Deportes
New England Patriots vs. Los Angeles Rams Super Bowl LIII
2/03/19
32,2881,79112,97817,520
2ABC
Los Angeles Lakers at Golden State Warriors
NBA Basketball
2/02/19
2,924972,388439
3TNT
Philadelphia 76ers at Golden State Warriors
NBA Basketball
1/31/19
1,720591,433228
4ABC
Oklahoma City Thunder at Boston Celtics
NBA Basketball
2/03/19
1,632401,405186
5NBA TV
Golden State Warriors at Indiana Pacers
NBA Basketball
1/28/19
1,539661,277196
6ESPN
Boston Celtics at New York Knicks

NBA Basketball
2/01/19

1,425511,142232
7TNT
Philadelphia 76ers at Los Angeles Lakers
NBA Basketball
1/29/19
1,401261,079296
8ESPN
Houston Rockets at Denver Nuggets
NBA Basketball
2/01/19
1,226421,033151
9TNT
Milwaukee Bucks at Toronto Raptors
NBA Basketball
1/31/19
70837504167
10ESPN
St. John’s at Duke
College Basketball
2/02/19
5552143698
[Source: Nielsen]

Key Insights

  • Over 45.4 million interactions, or 73% of the total of the three top ten rankings provided by Nielsen related to TV episodes or special events, were about sports.
  • From these, 2.2 million (4.8%) interactions were posted on Facebook.
  • Twitter received 19.5 million related to sports events, or (42%).
  • About 51%(23.6 million) posts were made on Instagram, making it the winning platform in the sports category, though not by far.
  • The LIII Super Bowl took the first spot, receiving 70% of the interactions with the top 10 sports and 52% of all the top interactions and engagements overall.
  • The remaining 30of posts were related to basketball events; spots 2 to 9 were NBA matches, and spot 10 was a College Basketball match.
  • Instagram was the top platform for NBA fans, but Twitter is still the winner for NFL.

 

WEEKLY TOP TEN TV TALENT

RANKNETWORK / TALENT / PROGRAMENGAGEMENTS
(000)
FacebookInstagramTwitter
1NBC
Terry Crews
America’s Got Talent
62724498105
2NBC
Dwayne Johnson
The Titan Games
589657013
3Univision
Angelique Boyer
Amar a muerte
395133820.2
4Univision
Sebastian Yatra
Mira quien baila All Stars
22352171
5CBS*, ESPN Deportes
Maroon 5
Super Bowl LIII
212960116
6NBC
Ellen DeGeneres
Ellen’s Game of Games
188415529
7Syfy
Lana Condor
Deadly Class
17201648
8The CW
Danielle Panabaker
The Flash
153313218
9ABC
Caterina Scorsone Grey’s Anatomy
10301003
10NBC
Howie Mandel America’s Got Talent
101171866
[Source: Nielsen]

Key Insights

  • According to Nielsen’s data, 2.7 million viewers engaged with the top ten posts sent directly from social media accounts owned or affiliated with TV programming.
  • For the top 10 spots, Facebook received 168,000 engagements, Twitter got 359,000, and Instagram came out on top with 2.2 million.
  • The relationship between top series and top TV talents is rather close, especially in the case of America’s Got Talent’s Terry Crews. Even though Ellen’s Game of Games is on the 10th spot of the former list, she was the second most popular TV talent of the week.
  • Two Latino stars are present in this ranking: Angelique Boyer and Sebastian Yatra.

 

“Ad investment outside the top 10 Hispanic Markets can be a major growth driver for Corporate America”, says José Vélez-Silva. Partner, Director of Client Services, at Global Works, where he plans and buys media for companies including U.S. Bank and Cablevision. U.S. Bank has advertising programs in so-called Emerging Hispanic markets Arizona and Colorado and Cablevision in New Jersey and Connecticut.

In 2000, 61 percent of the Hispanic population residing in the 50 states and District of Columbia resided in just four states: California, Texas, Arizona and Florida. By 2010, that proportion had declined to 58 percent while nine states (Alabama, Arkansas, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, South Dakota and Tennessee) saw their Hispanic populations more than double. The change in the ratio is particularly noteworthy because the overall Hispanic population grew by a breathtaking 43% during the 2000-2010 time period.

Are advertisers and major brands following the expansion of the Hispanic population?”. According to Mark Stockdale, Director, Hispanic Marketing at TMobile USA, “T-Mobile recognizes the opportunity. This means that traditional focal points are no longer the only high growth areas. There are many secondary markets that are seeing an influx of Hispanic migration. If those emerging markets overlay well with our footprint, we do market to that demographic. We are a national carrier and definitely cater outside the top 10 Hispanic market. Our media and retail merchandising efforts are national.” Other advertisers that have “ventured” outside the top 10 Hispanic markets include Maseca, Cricket Wireless, WalMart, Verizon Wireless and H&R Block.

Zulema Tijero, Advertising Sales Director of Washington Post Co owned El Tiempo Latino in Washington DC, tells Portada that business has increased in the last few months due to the fact that advertisers have taken notice of the strong increase of Hispanic population between 2000 and 2010 in Virginia (+302,285) and Maryland (+242,716). (See table on page 14). As Phillip Woodie, president of LER says, “the growth which is taking place in many of these emerging markets is staggering and simply too compelling for agencies and advertisers to overlook. The list of emerging markets continues to evolve in concert with the migration patterns of Hispanics across the US. Markets like Denver, Salt Lake City, Milwaukee, Seattle, Atlanta and DC have gained some good traction. And as these markets progress through their growth curve, other markets like Boise and Minneapolis emerge as viable Hispanic markets of consequence. If advertisers are truly interested in growing their business, they will insist on including Emerging Hispanic markets as part of their overall media plans.” LER represents over 100 Spanish language radio stations serving close to 80- percent of the U.S. Hispanic market.

NOT ON THE RADAR SCREEN

Yet, to market outside the top 5 or top 10 Hispanic markets often falls outside the radar screen of major national advertisers. “The problem is that Emerging Hispanic markets are often outside of the comfort zone of clients”, says Global Works Vélez-Silva. According to Ronnie Coates, Director of Sales of Charlotte, NC, based Norsan Multimedia, advertisers often argue that a market needs to have at least a 12% to 15% Hispanic share of its total population to justify expenditures in Hispanic specific media. According to this view, markets with a Hispanic population of well over 700,000 like North Carolina, Georgia and Pennsylvania do not merit Hispanic specific advertising. Norsan Multimedia is a Hispanic Media conglomerate in the Southeast, offering coverage in North Carolina, South Carolina, Florida, and Tennessee. Its media assets include AM, FM radio stations, Hola Noticias Newspaper, DescubreCharlotte.com as well as events, mobile text and out of home advertising properties.

Monica Messina, VP Northeast Regional at LER thinks that there are two valid approaches for marketers: “To go into big markets who have a 10%+ Hispanic share or into small markets with a very high Hispanic share. Among the latter she counts Bakersdale in CA, which has a 45% Hispanic share. Areas of high growth in both population and purchasing power of the Hispanic demographic are also overshadowed by major neighboring metropolis like Orange County and Riverside (Los Angeles) or Hoboken (New York). These markets often fall out of the radar screen of major national advertisers. For example, Inland Empire, comprised of the Riverside and San Bernardino Counties, is the fastest growing area in the U.S. for the Hispanic population. In 2010 almost 50% of Riverside County’s population was Latin compared to 29.2% in 2000. Often local media in emerging, smaller, Hispanic markets has a higher penetration than Hispanic media in bigger markets. This is not surprising as smaller markets tend to be less competed than the large metropolitan markets. Hernan Guaracao, publisher of Al Día in Philadelphia, tells Portada that his newspaper’s penetration rate in Philadelphia Hispanic households is higher than 80%.This extremely high penetration can not be matched by Hispanic newspapers in large metropolis such as Los Angeles, New York and Miami.

LOW SATURATION…

The low saturation of advertising messages targeting Hispanics in Emerging Hispanic Markets can be an advantage for marketers. Last year Maseca organized a tour of large U.S. cities, spearheaded by advertising agency Lopez Negrete. It included Charlotte, NC, in the effort. Perla Wasserman, Account Service Director at Houston based Lopez Negrete Communications, tells Portada that Charlotte was the only specific effort outside the top 10 Hispanic markets. The campaign supported the Maseca brand around the 2010 Soccer World Cup theme “Maseca tu Amuleto de Sabor” talking to females and moms. The idea was to help moms to celebrate and enjoy the World Cup with their families. The campaign included radio, POS at key retailers, events at stores, and national online advertising. The campaign registered a much higher engagement in Charlotte, where a very high number of consumers visited Maseca storefronts.

The number of visitors was much higher than the one registered in similar events in Dallas, Houston, Chicago and Los Angeles. It has to be taken into account that on a proportional basis the Charlotte engagement is even higher because there are more Hispanics living in Dallas, Houston, Chicago and Los Angeles than in Charlotte. Another advantage for major brands to invest in Emerging Hispanic markets is that they provide a more efficient way of learning about the Hispanic market than the bigger markets. The marketing/advertising expenditures tend to be lower and so are overhead costs.

WHEN TO ENTER: THE FIRST SIGNS

Martha Kruse, Senior Director Multicultural Marketing at Rooms To Go, says that usually a market is ready for advertising messages targeting Hispanics when Rooms To Go retail stores have a bilingual sales force. Kruse calls store managers to discuss how Hispanic clients are catered to. Kruse expects to start marketing in North and South Carolina next year. Rooms To Go has stores in Florida, Georgina, Mississippi, the Carolinas, Tennessee, and Texas. She cites as an impediment that sometimes the tools for effective advertising placement are not ready yet. For example she says that Atlanta does not have Hispanic TV ratings yet. In Atlanta Rooms To Go uses Hispanic radio and Hispanic newspapers such as Cox communications El Mundo Hispanico. The existence of community media such as a local newspaper and a Hispanic radio station is another sign of enough critical mass for an advertiser to enter an Emerging Hispanic market. According to LER’s Phillip Woodie, “Usually, a Spanish-language radio station is the first sign that a significant Hispanic population exists in a city. Radio continues to be the primary medium to reach the US Hispanic consumer – radio stations function as a trusted friend who brings news, sounds of home and information to their everyday life in the US – including ads about where to shop and which brands/retailers/services want their business.”

MEDIA PROPERTIES TAKE NOTE

Many media properties are adapting their offerings to reflect the increasing clout of Hispanics outside the traditional top 5 markets. Televisa’s Publishing and Digital’s Vanidades increased it’s rate base by 74% in 2011 to 270,000. An important reason for the population increase is the distribution in Emerging Hispanic markets. “We have started to increase our distribution in new Hispanic markets which are “hot” as a result of the census which include the Carolinas, Virginia and Maryland, etc.”, says Mariana Toledo, Marketing Manager at Televisa Publishing and Digital. In April Univision in Atlanta launched full fledged newscasts after years of producing local news briefs, Univision 34 in Atlanta finally launched 2 half-hour newscasts. They are airing at 6 and 11 pm Mon-Fri.

Gianncarlo Cifuentes, who had been manning the news briefs, is the news director and anchor of the newscasts. Amanda Ramírez, Mariela Romero and Omar García round up the news team. Atlanta’s Hispanic buying power is expected to increase from US $4.3 billion in 2000 to US $16.6 billion in 2012. Cox Media owned Mundo Hispanico is the largest Hispanic newspaper in Atlanta, Georgia. It has an audited weekly reach of 193,500 readers. Another major Atlanta Hispanic newspaper is the weekly Atlanta Latino. Local media properties are also emerging. Viva Now Magazine recently launched in Atlanta as a bilingual publication that covers the Southeastern U.S. (in print, on-line and multiple social media forums with a focus on special events) and is specifically designed to appeal to Hispanic professionals and entrepreneurs “Living the American Dream”. Viva Now is published in glossy magazine format; it has a circulation of 25,000, and is published twice a year.

EDUCATION PROCESS

Going forward, a substantial part of the growth of the Hispanic advertising and media market is going to be in Emerging Hispanic Markets. As LER’s Phillip Woodie says, “it’s a continuing education process and a story which has to be told at the client level as well as through the agency planning, account and buying teams. The challenge is keeping the emerging markets front and center in the client’s and agency’s mind and to continue to emphasize the amazing transformation and growth these emerging markets are experiencing.” Woodie adds that “for the longest time, the emphasis has been on the top 15 Hispanic markets. Now, with clients wanting and needing to grow their business and their market share, they are realizing the huge potential emerging markets offer. “ Woodie concludes with an example: “If an advertiser is doing business in Salt Lake City and they haven’t allocated a portion of their budget to reach out to the Salt Lake City Hispanic community, then their competition will. Their competition will cultivate the Hispanic consumer for long into the future. And as we all know, first one in wins.”

DOES A MARKET NEED TO HAVE AT LEAST A 12% TO 15% HISPANIC SHARE OF ITS TOTAL POPULATION TO JUSTIFY EXPENDITURES IN HISPANIC SPECIFIC MEDIA?

In 2000, 61 percent of the Hispanic population residing in the 50 states and District of Columbia resided in just four states: California, Texas, Arizona and Florida. By 2010, that proportion had declined to 58 percent while nine states (Alabama, Arkansas, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, South Dakota and Tennessee) saw their Hispanic populations more than double. The change in the ratio is particularly noteworthy because the overall Hispanic population grew by a breathtaking 43% during the 2000-2010 time period.

Are advertisers and major brands following the expansion of the Hispanic population?”.

According to Mark Stockdale, Director, Hispanic Marketing at TMobile USA, “T-Mobile recognizes the opportunity. This means that traditional focal points are no longer the only high growth areas. There are many secondary markets that are seeing an influx of Hispanic migration. If those emerging markets overlay well with our footprint, we do market to that demographic. We are a national carrier and definitely cater outside the top 10 Hispanic market. Our media and retail merchandising efforts are national.” Other advertisers that have “ventured” outside the top 10 Hispanic markets include Maseca, Cricket Wireless, WalMart, Verizon Wireless and H&R Block.

Zulema Tijero, Advertising Sales Director of Washington Post Co owned El Tiempo Latino in Washington DC, tells Portada that business has increased in the last few months due to the fact that advertisers have taken notice of the strong increase of Hispanic population between 2000 and 2010 in Virginia (+302,285) and Maryland (+242,716). (See table on page 14).

As Phillip Woodie, president of LER says, “the growth which is taking place in many of these emerging markets is staggering and simply too compelling for agencies and advertisers to overlook. The list of emerging markets continues to evolve in concert with the migration patterns of Hispanics across the US. Markets like Denver, Salt Lake City, Milwaukee, Seattle, Atlanta and DC have gained some good traction. And as these markets progress through their growth curve, other markets like Boise and Minneapolis emerge as viable Hispanic markets of consequence. If advertisers are truly interested in growing their business, they will insist on including Emerging Hispanic markets as part of their overall media plans.” LER represents over 100 Spanish language radio stations serving close to 80- percent of the U.S. Hispanic market.

AREAS OF HIGH GROWTH ARE OFTEN OVERSHADOWED BY MAJOR NEIGHBOURING METROPOLIS LIKE RANGE COUNTY AND RIVERSIDE (LOS ANGELES) OR HOBOKEN (NEW YORK).

NOT ON THE RADAR SCREEN

Yet, to market outside the top 5 or top 10 Hispanic markets often falls outside the radar screen of major national advertisers. “The problem is that Emerging Hispanic markets are often outside of the comfort zone of clients”, says Global Works Vélez-Silva. According to Ronnie Coates, Director of Sales of Charlotte, NC, based Norsan Multimedia, advertisers often argue that a market needs to have at least a 12% to 15% Hispanic share of its total population to justify expenditures in Hispanic specific media. According to this view, markets with a Hispanic population of well over 700,000 like North Carolina, Georgia and Pennsylvania do not merit Hispanic specific advertising. Norsan Multimedia is a Hispanic Media conglomerate in the Southeast, offering coverage in North Carolina, South Carolina, Florida, and Tennessee. Its media assets include AM, FM radio stations, Hola Noticias Newspaper, DescubreCharlotte.com as well as events, mobile text and out of home advertising properties.

Monica Messina, VP Northeast Regional at LER thinks that there are two valid approaches for marketers: “To go into big markets who have a 10%+ Hispanic share or into small markets with a very high Hispanic share. Among the latter she counts Bakersdale in CA, which has a 45% Hispanic share. Areas of high growth in both population and purchasing power of the Hispanic demographic are also overshadowed by major neighboring metropolis like Orange County and Riverside (Los Angeles) or Hoboken (New York). These markets often fall out of the radar screen of major national advertisers. For example, Inland Empire, comprised of the Riverside and San Bernardino Counties, is the fastest growing area in the U.S. for the Hispanic population. In 2010 almost 50% of Riverside County’s population was Latin compared to 29.2% in 2000.

Often local media in emerging, smaller, Hispanic markets has a higher penetration than Hispanic media in bigger markets. This is not surprising as smaller markets tend to be less competed than the large metropolitan markets. Hernan Guaracao, publisher of Al Día in Philadelphia, tells Portada that his newspaper’s penetration rate in Philadelphia Hispanic households is higher than 80%.This extremely high penetration can not be matched by Hispanic newspapers in large metropolis such as Los Angeles, New York and Miami.

LOW SATURATION…

The low saturation of advertising messages targeting Hispanics in Emerging Hispanic Markets can be an advantage for marketers. Last year Maseca organized a tour of large U.S. cities, spearheaded by advertising agency Lopez Negrete. It included Charlotte, NC, in the effort. Perla Wasserman, Account Service Director at Houston based Lopez Negrete Communications, tells Portada that Charlotte was the only specific effort outside the top 10 Hispanic markets. The campaign supported the Maseca brand around the 2010 Soccer World Cup theme “Maseca tu Amuleto de Sabor” talking to females and moms. The idea was to help moms to celebrate and enjoy the World Cup with their families. The campaign included radio, POS at key retailers, events at stores, and national online advertising. The campaign registered a much higher engagement in Charlotte, where a very high number of consumers visited Maseca storefronts.

The number of visitors was much higher than the one registered in similar events in Dallas, Houston, Chicago and Los Angeles. It has to be taken into account that on a proportional basis the Charlotte engagement is even higher because there are more Hispanics living in Dallas, Houston, Chicago and Los Angeles than in Charlotte. Another advantage for major brands to invest in Emerging Hispanic markets is that they provide a more efficient way of learning about the Hispanic market than the bigger markets. The marketing/advertising expenditures tend to be lower and so are overhead costs.

“WE HAVE STARTED TO INCREASE OUR DISTRIBUTION IN NEW HISPANIC MARKETS WHICH ARE ‘HOT’”

WHEN TO ENTER: THE FIRST SIGNS

Martha Kruse, Senior Director Multicultural Marketing at Rooms To Go, says that usually a market is ready for advertising messages targeting Hispanics when Rooms To Go retail stores have a bilingual sales force. Kruse calls store managers to discuss how Hispanic clients are catered to. Kruse expects to start marketing in North and South Carolina next year. Rooms To Go has stores in Florida, Georgina, Mississippi, the Carolinas, Tennessee, and Texas.

She cites as an impediment that sometimes the tools for effective advertising placement are not ready yet. For example she says that Atlanta does not have Hispanic TV ratings yet. In Atlanta Rooms To Go uses Hispanic radio and Hispanic newspapers such as Cox communications El Mundo Hispanico.

The existence of community media such as a local newspaper and a Hispanic radio station is another sign of enough critical mass for an advertiser to enter an Emerging Hispanic market. According to LER’s Phillip Woodie, “Usually, a Spanish-language radio station is the first sign that a significant Hispanic population exists in a city. Radio continues to be the primary medium to reach the US Hispanic consumer – radio stations function as a trusted friend who brings news, sounds of home and information to their everyday life in the US – including ads about where to shop and which brands/retailers/services want their business.”

MEDIA PROPERTIES TAKE NOTE

Many media properties are adapting their offerings to reflect the increasing clout of Hispanics outside the traditional top 5 markets. Televisa’s Publishing and Digital’s Vanidades increased it’s rate base by 74% in 2011 to 270,000. An important reason for the population increase is the distribution in Emerging Hispanic markets.

“We have started to increase our distribution in new Hispanic markets which are “hot” as a result of the census which include the Carolinas, Virginia and Maryland, etc.”, says Mariana Toledo, Marketing Manager at Televisa Publishing and Digital. In April Univision in Atlanta launched full fledged newscasts after years of producing local news briefs, Univision 34 in Atlanta finally launched 2 half-hour newscasts. They are airing at 6 and 11 pm Mon-Fri.

Gianncarlo Cifuentes, who had been manning the news briefs, is the news director and anchor of the newscasts. Amanda Ramírez, Mariela Romero and Omar García round up the news team. Atlanta’s Hispanic buying power is expected to increase from US $4.3 billion in 2000 to US $16.6 billion in 2012. Cox Media owned Mundo Hispanico is the largest Hispanic newspaper in Atlanta, Georgia. It has an audited weekly reach of 193,500 readers. Another major Atlanta Hispanic newspaper is the weekly Atlanta Latino. Local media properties are also emerging. Viva Now Magazine recently launched in Atlanta as a bilingual publication that covers the Southeastern U.S. (in print, on-line and multiple social media forums with a focus on special events) and is specifically designed to appeal to Hispanic professionals and entrepreneurs “Living the American Dream”. Viva Now is published in glossy magazine format; it has a circulation of 25,000, and is published twice a year.

EDUCATION PROCESS

Going forward, a substantial part of the growth of the Hispanic advertising and media market is going to be in Emerging Hispanic Markets. As LER’s Phillip Woodie says, “it’s a continuing education process and a story which has to be told at the client level as well as through the agency planning, account and buying teams. The challenge is keeping the emerging markets front and center in the client’s and agency’s mind and to continue to emphasize the amazing transformation and growth these emerging markets are experiencing.” Woodie adds that “for the longest time, the emphasis has been on the top 15 Hispanic markets. Now, with clients wanting and needing to grow their business and their market share, they are realizing the huge potential emerging markets offer. “ Woodie concludes with an example: “If an advertiser is doing business in Salt Lake City and they haven’t allocated a portion of their budget to reach out to the Salt Lake City Hispanic community, then their competition will. Their competition will cultivate the Hispanic consumer for long into the future. And as we all know, first one in wins.”.

The following is a preview to the Joe Kutchera´s forthcoming book – Latino Link: Communities and Content Online – from Paramount Books.

A few weeks ago, while having a very American lunch of cheeseburgers and milk shakes, my goddaughter Madeline, 11, and her brother Ricardo, 13, asked me, “so, what’s your book about Uncle Joe?”

“Well, it’s about how families like yours use the Internet and what is the best ways for companies to communicate with people who speak Spanish,” I responded. Madeline and Ricardo speak Spanish with their mother, who immigrated to the United States from Peru, and English with their dad, my friend Kevin. “What do you guys do online?” I asked them. Following our lunch, I asked them to give me a tour of how they use the Internet.

They use Google often as their discovery engine for their interests, even searching for the word Facebook to get to its home page. But they spend the vast majority of their time on social networks. Ricardo goes online four to five times per week for about 30 minutes per session. Once online, he mostly uses Facebook to connect with his friends from grade school, capoeira class (a Brazilian martial art growing in popularity), and his family in Peru. Offline, he likes playing basketball, listening to bands like Linkin Park, seeing friends, and playing video games.

Since she doesn’t like playing outside as much, Madeline spends up to two hours a day online, mostly on MySpace, where she plays reality games like SuperPoke! Pets, YoVille, and Sorority Life. While showing me the game YoVille, she jumped in and asked, “Hola, anyone speak Spanish?” It was very telling. She assumes everyone is like her: bilingual English and Spanish. “Where are the other kids from?” I asked. “All over the world,” Madeline told me. Clearly, backwater villages do not exist on the Internet. All the web is a global stage, and we are social citizens, connecting and conversing with others who use the same platforms, like the same games, share the same interests and read the same news.

While Madeline prefers MySpace to play games and occasionally listen to music, she also uses Facebook about 20 minutes a day on average. Both Ricardo and Madeline chat with friends and family on Facebook after school, specifically, with their cousins Jordi (13), in Spain, and Giovanni (14), Carla (22) and Juan Carlos (22), in Peru. They have met kids from Egypt, Latin America and the U.S. on MySpace while playing games, chatting with them in English or Spanish. Like most young kids, Madeline lists her age as 19, even though she is 11, as the site doesn’t allow kids below 18 to join.

As we wrapped up the tour of the Internet, I asked “How much TV do you watch?” Madeline said, “Never”; Ricardo told me, “rarely.” That’s not to say that Madeline and Ricardo don’t watch television content. They do…on YouTube.

If marketers want to reach kids these days, TV is not the way to do it. They need to develop content – games, videos, articles, tools, and helpful information – and distribute it on platforms like YouTube, Myspace, Facebook, websites, mobile applications, and whatever social networks emerge tomorrow. Just as importantly, they need to learn about the Spanish-speaking and bi-lingual Hispanic community online. Interruption advertising does not work anymore with kids or adults. But truly helpful, interesting, funny, and informative content can attract the right audiences and the best place to do that is on the Internet and on mobile phones.

The most amazing thing about Madeline and Ricardo is that they live in Milwaukee, not in a cosmopolitan, bilingual city like Miami or New York. This is the new Middle America. Growing up with social networks is a far cry from my youth when my brother and I played Atari games in our basement. Kids today can maintain almost daily relationships with family or friends from around the world, especially with cousins, aunts and uncles from far away places like Peru.

The following is a preview to the Joe Kutchera´s forthcoming book – Latino Link: Communities and Content Online – from Paramount Books.

A few weeks ago, while having a very American lunch of cheeseburgers and milk shakes, my goddaughter Madeline, 11, and her brother Ricardo, 13, asked me, “so, what’s your book about Uncle Joe?”

“Well, it’s about how families like yours use the Internet and what is the best ways for companies to communicate with people who speak Spanish,” I responded. Madeline and Ricardo speak Spanish with their mother, who immigrated to the United States from Peru, and English with their dad, my friend Kevin. “What do you guys do online?” I asked them. Following our lunch, I asked them to give me a tour of how they use the Internet.

They use Google often as their discovery engine for their interests, even searching for the word Facebook to get to its home page. But they spend the vast majority of their time on social networks. Ricardo goes online four to five times per week for about 30 minutes per session. Once online, he mostly uses Facebook to connect with his friends from grade school, capoeira class (a Brazilian martial art growing in popularity), and his family in Peru. Offline, he likes playing basketball, listening to bands like Linkin Park, seeing friends, and playing video games.

Since she doesn’t like playing outside as much, Madeline spends up to two hours a day online, mostly on MySpace, where she plays reality games like SuperPoke! Pets, YoVille, and Sorority Life. While showing me the game YoVille, she jumped in and asked, “Hola, anyone speak Spanish?” It was very telling. She assumes everyone is like her: bilingual English and Spanish. “Where are the other kids from?” I asked. “All over the world,” Madeline told me. Clearly, backwater villages do not exist on the Internet. All the web is a global stage, and we are social citizens, connecting and conversing with others who use the same platforms, like the same games, share the same interests and read the same news.

While Madeline prefers MySpace to play games and occasionally listen to music, she also uses Facebook about 20 minutes a day on average. Both Ricardo and Madeline chat with friends and family on Facebook after school, specifically, with their cousins Jordi (13), in Spain, and Giovanni (14), Carla (22) and Juan Carlos (22), in Peru. They have met kids from Egypt, Latin America and the U.S. on MySpace while playing games, chatting with them in English or Spanish. Like most young kids, Madeline lists her age as 19, even though she is 11, as the site doesn’t allow kids below 18 to join.

As we wrapped up the tour of the Internet, I asked “How much TV do you watch?” Madeline said, “Never”; Ricardo told me, “rarely.” That’s not to say that Madeline and Ricardo don’t watch television content. They do…on YouTube.

If marketers want to reach kids these days, TV is not the way to do it. They need to develop content – games, videos, articles, tools, and helpful information – and distribute it on platforms like YouTube, Myspace, Facebook, websites, mobile applications, and whatever social networks emerge tomorrow. Just as importantly, they need to learn about the Spanish-speaking and bi-lingual Hispanic community online. Interruption advertising does not work anymore with kids or adults. But truly helpful, interesting, funny, and informative content can attract the right audiences and the best place to do that is on the Internet and on mobile phones.

The most amazing thing about Madeline and Ricardo is that they live in Milwaukee, not in a cosmopolitan, bilingual city like Miami or New York. This is the new Middle America. Growing up with social networks is a far cry from my youth when my brother and I played Atari games in our basement. Kids today can maintain almost daily relationships with family or friends from around the world, especially with cousins, aunts and uncles from far away places like Peru.