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Carolina Re (@CaroVsCaro)

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The AHAA has released preliminary findings on a new study about the Hispanic community with different marketing approaches to mining growth from Hispanic and multicultural segments. The results are based on 321 online surveys of marketing professionals from client-side, general and multicultural specialized ad agencies, media buying agencies, public relations and consulting firms.

Results

Nine in 10 executives believe the primary purpose of a Total Market Strategy is to balance effectiveness with efficiency. As such, two main models have emerged:

  • Integration, where Multicultural is integrated into every step of the business process and marketing execution to fully take advantage of growth potential across Hispanic, Multicultural, Millennial & Caucasian. With an integration strategy, marketers approach the market in totality as well as in segments to ensure that nuanced needs & opportunities are effectively addressed across 360 strategies-tactics.
  • Adaptation, where the same idea is adapted to different audiences using the same budget to reach all the segments. With an adaptation strategy, marketers utilize less targeting to particular ethnic consumers, leveraging broader strategies that will appeal to all in new multicultural marketplace.

Currently, 54 percent of advertisers are implementing some form of Total Market Strategy. Of these, half are applying it company-wide, while the other half is executing at a department level. More than half of marketers surveyed believe TM Strategy will ultimately benefit their company, while 44 percent are concerned about implementation.

Of the 46 percent not employing a Total Market Strategy, 15 percent are planning to implement in 2014. Nearly half are exploring various total market models but are unsure of its implementation in the future, while 36 percent have not thought of utilizing this approach and just 3 percent have decided against pursuing it altogether.

Selective across brands with Advertising

Companies are in various stages of implementing Total Market Strategy with the majority employing this approach for select brands (54 percent). More than a third has applied a Total Market Strategy across all company brands, and 15 percent are testing the concept on one brand. Few companies spread the total market function throughout the company with two out of three relying on brand champions or multicultural centers of excellence.

The bulk of Total Market Strategies are being executed in advertising with 84 percent in ad messaging and 78 and 65 percent across media buying and media planning respectively. Finally, between 43 and 65 percent of marketers also are employing Total Market Strategies across promotional, communication and digital vehicles.

According to the AHAA, 66 percent of the companies surveyed who are utilizing a Total Market Strategy, have reported incremental results in increased market share, efficiency, and revenue growth, among others.

While 27 percent are still testing and measuring, more than half of companies surveyed revealed they are various stages of expanding their total market initiatives.

Marketing strategies are under great scrutiny in response to the explosive growth of multicultural populations. As many companies seek to reconcile and recalibrate efforts toward multiple market segments, questions arise with regards to the potential of defining and addressing a Total Market Strategy.

To finish, the AHAA says that “However, the “Total Market” approach is largely misunderstood and is used as a catchphrase for various marketing strategies. The marketing industry is ripe for a more uniform definition of Total Market Strategy, and there is a tremendous need to continue studying this marketing strategy in order to share guidelines and criteria for proper implementation.”

Source: AHAA: The Voice of Hispanic Marketing

 

What? AdParlor,  Adknowledge’s social media platform, will now extend its work to  Twitter, as a new API partner. Why it matters: AdParlor has worked with Facebook solely until now.

Photo: Esther Vargas. Under Creative Commons License
Photo: Esther Vargas. Under Creative Commons License

AdParlor has been named  a Twitter Ads API partner, besides Facebook Strategic Preferred Marketing Developer (sPMD).

“We’re pleased to announce this addition to our portfolio of social media solutions,” said AdParlor General Manager Mladen Raickovic.

“As we expand both our product features and global presence, we continue to deliver measurable results for our clients and provide the industry’s most advanced features, technology and superior client service.”

With the addition of Twitter, we’re one step closer to becoming the social platform for the next generation of brands and marketers on a global scale – Raickovic

“Twitter users send a half-billion Tweets per day—that’s a lot of data and engagement opportunity for brands,” said Adknowledge CEO Ben Legg. “We look forward to digging into all that data, and then doing what we do best: deliver optimized digital advertising.”

AdParlor plans to introduce products specifically for Twitter that differ from what it does on Facebook. As such, it has already grown its staff by 25% over the past year, though it declined to provide a specific number of employees.

Adknowledge has been an active acquirer since its founding nine years ago. It bought AdParlor two years ago, and made its 10th acquisition (of SocialWeekend Labs) back in April, according to AdExchanger.

Foto Alberto PardoPortada interviewed Alberto Pardo, CEO of AdsMovil, about the company’s status after its agreement with Millennial Media and the creation of Millennial Media Exchange (MMX), following Millenial Media’s partnership with AppNexus.

Translated by Candice Carmel

Portada: What is your business arrangement with Millennial Media?

Alberto Pardo: Adsmovil has a strategic alliance with Millennial Media to market their inventory, coupled with their technology support, in all countries of Latin America.

Portada: What does each side bring to the table?

Alberto Pardo: Millennial brings six years of experience in the most developed mobile industry in the world, along with its inventory, agreements with its own publishers, and technology. We bring our local knowledge and sales in each country [in the region].

On the agreement between Millennial Media and AppNexus, and the creation of the Millennial Media Exchange (MMX):

Portada: How will AdsMovil’s inventory in Latin America be represented in the new ad network?

Alberto Pardo: Our inventory will be represented in the form of audiences, using our coverage in the region.

Portada:  In what USH ad-exchanges is Adsmovil’ inventory represented?

Alberto Pardo: None. The Adsmovil inventory in the U.S. Hispanic market is premium, and premium companies usually put their unsold inventory “blind” on exchanges. Adsmovil is 100% transparent and sells only premium inventory in the U.S. Hispanic market.

Portada: There are still many barriers in the development of mobile advertising ad exchanges (standardization, etc.). How do you see this changing in time?

Alberto Pardo: There are many barriers. The main one is publishers’ lack of knowledge in this area, and the other is the short supply of exchanges in the region. Surely this will change as the business develops and continues to grow. Personally, I feel that publishers continue to think in terms of online, rather than mobile. The same holds true for many brands, which still view mobile as an emerging medium. This trend will be reversed in the coming years, since brands are starting to venture into mobile, albeit still slowly.

Personally, I feel that publishers continue to think in terms of online, rather than mobile

Latin America

Portada: Which brands are you bringing these advertising solutions to in Latin America?

Alberto Pardo: Mainly large advertisers such as Coca Cola, Ford, Nestlé, and Unilever, to name a few.

Portada: And in Mexico?

Alberto Pardo: Interjet, Nestlé, Banamex, General Motors, and Nokia, to name a few.

Portada: What is the state of mobile advertising development in Latin America, and in Mexico in particular?

Alberto Pardo: It is currently in full growth. 2013 has been a defining year for the industry, as several brands are starting to see mobile as an essential communications tool. Mexico is the most developed market in Latin America, ahead of Brazil and Argentina. In Mexico, there is wide acceptance of our products and we will continue to invest very strongly there, because Mexico is, without a doubt, the largest market in the region.

Mexico is the most developed market in LatAm for mobile advertising. More than Brazil and Argentina.

Portada: How does the U.S. Hispanic market compare? Or are they completely different markets?

Alberto Pardo: They are very different markets, as [overall] smart phone penetration in the United States is 60% – and 49% among Hispanics – whereas in Mexico, the figure is 30-32%. Data consumption and smart phone use varies greatly between the U.S. and Latin America, because in the United States, mobiles are also used to make purchases, while in Latin America everything related to m-commerce is very recent and still in its infancy.

The U.S. Hispanic and LatAm mobile markets are very different

Portada: What strategies do you recommended for creating pan-regional mobile advertising campaigns?

Alberto Pardo: Although one has to think regionally when creating pan-regional campaigns, communications should be adapted to each market, taking into account each country’s peculiarities.

Portada: What are Adsmovil’s plans for 2014?

Alberto Pardo: In 2014, we want to consolidate [our foothold] in Mexico, Brazil, and the United States.

Portada: How important are ad exchanges for AdsMovil sales?

Alberto Pardo: Very important, since much of our inventory in Latin America is received through exchanges.

Portada: Did anything change or will anything change with the arrival of Victor Kong at Adsmovil?

Alberto Pardo: Victor is a great support to Adsmovil today. He leads Cisneros Interactive, the corporate business unit that groups all digital initiatives of the Cisneros Group focusing on Digital Advertising and Electronic Commerce. Adsmovil is part of Cisneros Interactive, and is an independent company that counts the Cisneros Group among its shareholders. As President of Cisneros Interactive, Victor is channeling all of his efforts and knowledge into growing the digital business-related companies owned by the group.

Alberto Pardo has 15 years of experience in the Internet, Internet marketing, e-commerce and online advertising fields. He is the founder and Chief Executive Officer (CEO) of AdsMovil, a Latin America and the U.S. Hispanic market mobile advertising network owned by Cisneros Interactive. Pardo is also founder and current President of the Colombia Chamber of Electronic Commerce.

impreMedia, the Hispanic news and information company in the U.S., confirmed today the appointment of Hernando Ruiz-Jiménez, Executive Vice President and General Manager, East Division and Damián Mazzotta, General Manager, West Division. Juan Varela also has been tapped as the new Content Director. All three join impreMedia’s Executive Committee and report directly to Francisco Seghezzo, COO.

“The advertising industry is in constant flux and with these new appointments we are putting impreMedia in a better position to capitalize on emerging trends and opportunities,” said Monica Lozano CEO of impreMedia. “We’re tremendously proud to welcome Hernando and Juan to the impreMedia family and look forward to working closely with them and Damian to continue to innovate and deliver breakthrough solutions for our clients and partners,” added Francisco Seghezzo, COO.

As Executive Vice President and General Manager, East Ruiz-Jiménez is responsible for the National Sales, Marketing and Advertising Solutions departments and oversees the development of impreMedia’s El Diario La Prensa in New York, La Raza in Chicago and La Prensa in Orlando. Ruiz-Jiménez most recently co-founded and served as Executive Vice- President of Wireless Idea, a mobile services company that creates and distributes digital content products. He previously held senior marketing and sales positions with PepsiCo and Diageo North America where he led multicultural, national and international marketing efforts and implemented innovative brand and sales growth strategies.

In his new role as General Manager, West, Damian Mazzotta oversees the development of impreMedia properties La Opinión in Los Angeles, El Mensajero in San Francisco and Rumbo in Houston. Mazzotta began with impreMedia developing the 2013 consumer  marketing plans and was promoted to VP, Business Development. Within his first year Mazzotta successfully launched numerous brand name products including partnerships with ESPN Deportes, Disney Publishing and TV celebrity chefs to leverage the engagement with impreMedia´s audiences in Los Angeles and New York.

In his new role as Content Editor, Juan Varela will play a central role in impreMedia’s ongoing transformation from the largest Spanish-language newspaper holding company in the country to the leading provider of multiplatform content, news and marketing solutions for the U.S. Hispanic market. Varela will be responsible for content creation across all of impreMedia’s platforms including newspapers, magazines, custom publishing, and digital properties. He brings more than 20 years of editorial, news and content creation with some of the most important media organizations throughout the U.S. and Spanish-speaking Americas.

In this new installment in our series on CONTENT MARKETING, presented by Skyword, we asked what opportunities and advantages does the Spanish language afford when it comes to crafting business communication strategies for content targeted to the U.S. Hispanic market and Latin America. What keywords should be used? What key points should we keep in mind?

Translated by Candice Carmel

Creative Commons. Cesar Potayo.

While Latin American countries shares similar cultural traits, we must take into account the specificities of each country when crafting a communications strategy.

The phrase that best summarizes the characterization of the region, while seemingly contradictory at first, would be: “We are very similar, yet very different” said Leonardo Loisa, former Regional Marketing Director for AMD Latinoamérica, in an interview with Portada.

This same phrase also applies if we think about the relationship between Latin Americans and U.S. Hispanics. Many U.S. Hispanics are immigrants from Latin America, but we still cannot say that there is a complete transfer of their culture of origin. Rather, it is a particular acculturation where original cultural traits are maintained, while adding specific traits from each person’s location. In turn, this new cultural mix is what produces both similarities and differences with Latino culture.

So then, what are these similar cultural traits that are shared by both the Latin American and U.S. Hispanic markets?

Basically, it’s their shared language.

Spanish is the language used in most all of Latin America and this gives us an advantage when thinking of pan-regional audiences that include the U.S. Hispanic market.

The key point to keep in mind is that a pan-regional, Spanish-speaking audience will certainly understand the content of the campaign, but the language used has to be neutral enough to not supplant the idioms, peculiarities, and deviations of the basic Spanish language (if this even exists); or, the campaign must be sufficiently adaptable, mobile, and dynamic to adapt to the local lexicon.

In other words, we should not use keywords that are both general and local simultaneously.

If we use regional keywords, we should avoid idioms such as chamba (Mexico), pega (Chile), laburo (Argentina), etc. Instead, we should use the most neutral terms possible that are actually used in the same way throughout the region. In this example, the best regional term for work would be “trabajo.”

However, if we are doing a regional campaign that is being adapted to each local market, then each adaptation should follow the local lexicons in its use of keywords.

Adriana Noreña, Managing Director – Spanish Speaking Latin America at Google, told Portada that the key is to either create a strategy that considers the use of local variations or make adjustments to the campaign to ensure good localization.

“For example, in the case of an airline campaign, in Argentina we mostly use the term “pasajes” [for airline tickets], while in Mexico we say “boletos,” and in Colombia we’d use “tiquetes,” she said.

It is very important that a pan-regional campaign cover all variations.

Regarding how to set keywords and adapt pan-regional content to each market, Noreña told Portada that it is important to consider how users perform searches in different markets. “To confirm the different ways that users do searches, it is advisable to use Google online tools, especially Google Trends.”

“Beyond the contrasts of spoken Spanish in different parts of Latin America and the U.S. Hispanic market, it is relatively easy to scale online advertising efforts for all of these markets,” summed up Noreña. It is critical that the online advertising keywords used are replicated in the keywords used by company website editors in their articles (content marketing).

According to Gaston Mancuso, of Mindshare, the design of a communications strategy for regional content “must strike an optimum balance between channeling marketing and business objectives, and being able to adapt to the dynamics and consumer reality of each market. It cannot encompass what is happening across the whole region, nor can it be designed with only two or three major countries in mind.”

Mancuso cited two case studies done by his agency, the “You can still dunk in the dark” Oreo campaign, and Kimberly Clark’s Kleenek campaign as successful examples that achieved a balance between marketing goals and local dynamics (although they were not for the Latin American region).

Think global communities

Thinking about content for the Spanish-speaking world thus implies the need to dive into the specifics of each market. But the Spanish-speaking world is not isolated from global trends.

When thinking about building audience and the Spanish-speaking audience as a whole, we must also consider the global transformations that our communication channels are undergoing, and to which we adapt as a community, especially as a result of the influence of digital media.

“We can no longer think in terms of localized communities or minorities, but of people who belong to a multitude of connected communities that share a taste or preference for certain content,” concluded Santiago Durán, of Havas Media.

This series of articles about “Content Marketing” is brought to you by Skyword. Skyword provides a wide range of services so that companies may connect with their audiences and generate a higher degree of engagement via top-quality contents for online search and social networking, currently the two main sources for content consumption.

Other articles of the CONTENT MARKETING SERIES:

CONTENT MARKETING: What do we mean when we talk about “content marketing”?

CONTENT MARKETING: Flying Through the Fog: A Marketer’s Guide to Navigating Search After Google Keywords Were Encrypted

CONTENT MARKETING: What we can learn from Iron Mountain, IBM and Autotrader

CONTENT MARKETING: Should Media Firms become Content Marketing Agencies?

CONTENT MARKETING: Spanish Language: What opportunities does it afford?

CONTENT MARKETING: How P&G, Clorox and Tampico engage Hispanic audiences

CONTENT MARKETING: How Pepsi’s “Cultural Fluency” concept translates into Content Marketing executions

EL EXCÉNTRICO ESCRITOR BEIGBEDER RESUCITA LA REVISTA ERÓTICA FRANCESA "LUI"The Hispanic Magazine Advertising Market has been growing at a high rate  so far this year.  A substantial part of that growth has come frome new ad campaigns. Portada and Media Economics Group below provide information about 10 new Hispanic magazine advertising campaigns during the first half of 2013. The magazine ads were tracked by the HispanicMagazineMonitor™ service.

The below ranking shows the campaigns ranked by the estimate of advertising expenditure. Total Advertising spent during the first six months of the year was US $133.756 million. The top 10 brands invested US $12 million. Among the new campaigns,  L’Oreal’s CoverGirl’s “Vive Vanidades – Guía total de belleza” was the campaign with  the highest advertising expenditure (US $2 million for 34 ad pages).

Ranking

Brand

Advertiser

Top 3  Magazines where ads ran

Total Ad pages

Total Dollars

1

L’Oreal Paris “Vive Vanidades – Guia Total de Belleza” SAS

L’Oreal USA, Inc.

Vanidades

34

2,040,000

2

CoverGirl “Outlast Stay Fabulous”

Procter & Gamble Company

People en Español, Vanidades, Ser Padres

20

1,437,550

3

Crest “Complete Multi-Benefit Plus Scope Outlast”

Procter & Gamble Company

People en Español, Siempre Mujer, Vanidades

28

1,419,491

4

CoverGirl “Clump Crusher”

Procter & Gamble Company

People en Español, Ser Padres, Vanidades

18.99

1,380,187

5

Pantene Pro-V “Repair & Protect”

Procter & Gamble Company

People en Español, Vanidades, TV y Novelas

24

1,332,261

6

Secret “Clinical Strength”

Procter & Gamble Company

People en Español, Vanidades, Latina

22

1,026,638

7

Gain cleaning products – various

Procter & Gamble Company

Ser Padres, People en Español, Vanidades

18

1,022,246

8

Gain Laundry Detergent “With Oxi Boost”

Procter & Gamble Company

People en Español, TV y Novelas, Vanidades

22

1,009,381

9

Kellogg’s “Nutri-Grain”

Kellogg Company

Ser Padres, People en Español, Siempre Mujer

13

916,626

10

People en Español “Festival 2013”

Various

People en Español

11

870,100

Total: (Top 10 – new brands/campaigns):

   

210.99

$12,454,480

      

Total: (All new brands/campaigns):

   

973.93

$51,075,351

      

Total: (All actives brands /campaigns):

   

2,811.66

$133,756,324

 

Source: Media Economics Group, HispanicMagazineMonitor™. For more information please call: 1 (704) 841-2030.

newsweek.ibtInternational Business Times (IBT) is buying the online property of Newsweek, newsweek.com. The site will return to the www.newsweek.com site in the coming weeks. IBT is specialized in publishing online properties. Its portfolio includes the Latin Times.

The terms of the deal were not disclosed. The IBT is buying the property from IAC/InterActiveCorp.

Newsweek had been struggling for years when The Washington Post Co. sold it for $1 in 2010 to stereo equipment magnate Sidney Harman, who died the following year. Before he died, Harman placed Newsweek into a joint venture with IAC’s The Daily Beast website, a move intended to help widen its online audience.

IBT Media said the purchase doesn’t include The Daily Beast.

Players

IBT was founded in 2006 and owns online publications including Medical Daily, Latin Times and iDigitalTimes.

IAC/InterActiveCorp., based in New York, is a media and Internet company with brands including Ask.com, About.com and Match.com. In a Bloomberg TV interview earlier this year, Barry Diller, chairman of IAC, called the purchase of Newsweek a “mistake.”

Facebook reported a substantial increase in mobile advertising revenues during the second quarter of 2013. Mobile ad revenues made up 41% of total advertising revenues for the social networking giant. Google mobile ad revenues still make up for approximately 50% of the mobile ad market , mostly through its large share in mobile search, but Facebook is catching up and leading the mobile display market. The Q2 financial reflect Facebook’s ability to monetize display advertising, of which many analysts were sceptical in the past. As a result of the strong financials, Facebook stock price jumped more than 25% on the New York Stock exchange.

Facebook reported financial results for the second quarter, which ended June 30, 2013. “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” said Mark Zuckerberg, Facebook founder and CEO. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

Second Quarter 2013 Financial Highlights

Revenue – Revenue for the second quarter of 2013 totaled $1.81 billion, an increase of 53%, compared with $1.18 billion in the second quarter of 2012. Revenue from advertising was $1.60 billion, representing 88% of total revenue and a 61% increase from the same quarter last year.Mobile advertising revenue represented approximately 41% of advertising revenue for the second quarter of 2013.

Facebook’s Q2 stats show that it is becoming a dominant mobile ad platform.

Ari Rosenstein, VP of Marketing at Adotomi, a social advertising technology company, commented on the Facebook results:.“Facebook’s Q2 stats show that it is becoming a dominant mobile ad platform. It’s astonishing that 41% of Facebook’s earnings now come from mobile, a testament to how enthusiastic Facebook users are about mobile. This is important to retailers, e-commerce, and m-commerce because Facebook mobile ads represent the most prime real-estate of any mobile format. Their ads show exclusively in the Newsfeed, which means that advertisers have lots of room for eye catching pictures and that the ads will appear in the spot that Facebook users check most. Other ad formats are limited to tiny banners and lack the sophisticated targeting that Facebook offers. We also know that Facebook mobile users love to engage with ads. Right now, if you are looking to reach folks on mobile, there is no better platform than Facebook.”

Second Quarter 2013 Financial Summary

  • Surpassed 1 million active advertisers on Facebook, driven by significant growth in local businesses.
  • Introduced video for Instagram and saw 5 million videos uploaded in the first 24 hours.
  • Facebook for Every Phone has now passed 100 million monthly active users. In just two years, Facebook for Every Phone has successfully put Facebook into the hands of millions of people around the world with limited access to the Internet, giving them the power to connect and share.
  • Launched products including Verified Pages, hashtags and embedded posts to help people on Facebook connect with their friends about what’s taking place all over the world.
  • Announced that there have now been over 100,000 apps built on Parse, a cloud-based platform that provides scalable cross-platform services and tools for developers to enable them to build apps that span mobile platforms and devices.

Financial Results

Payments and other fees revenue was $214 million for the second quarter of 2013, an increase of 11% from the same quarter last year.

Costs and expenses – GAAP costs and expenses for the second quarter of 2013 were $1.25 billion, a decrease of 35% from the second quarter of 2012, as costs in the second quarter of 2012 were materially impacted by the share-based compensation expense resulting from our IPO. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.02 billion in the second quarter, up 52% compared to $669 million for the second quarter of 2012.

Income (loss) from operations – For the second quarter of 2013, GAAP income from operations was $562 million, compared to a GAAP loss from operations of $743 million in the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the second quarter was $794 million, up 54% compared to $515 million for the second quarter of 2012.

Operating margin – GAAP operating margin was 31% for the second quarter of 2013, compared to negative 63% in the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 44% for the second quarter of 2013, compared to 43% for the second quarter of 2012.

Provision for income taxes – GAAP income tax expense for the second quarter of 2013 was $212 million, representing a 39% effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 37%.

Net income (loss) and EPS – For the second quarter of 2013, GAAP net income was $333 million, compared to a net loss of $157 million for the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the second quarter of 2013 was $488 million, up 65% compared to $295 million for the second quarter of 2012. GAAP diluted EPS was $0.13 in the second quarter of 2013, compared to a loss per share of $0.08 in the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the second quarter of 2013 was $0.19, up 58% compared to $0.12 in the second quarter of 2012.

Capital expenditures – Capital expenditures for the second quarter of 2013 were $268 million, a 35% decrease from the second quarter of 2012.

Cash and marketable securities – Cash and marketable securities were $10.3 billion at the end of the second quarter of 2013.

Publicis published its Q2 result with 9.6% of Revenue Growth and 5.0% of Organic Growth. Digital revenues grew at 13.4% this quarter and 11.1% the first half of the year.

For the first half of the year Publicis annouced an 8.7% of Revenue Growth and a 3.2% of Organic Growth.

publicis Q2 results

Maurice Levy, CEO of Publicis, said in a statement “The strong organic growth acceleration at 5% in the second quarter allows the Groupe to
significantly improve its performance. This should be put into the perspective of an unpropitious economic situation, fierce competition and an uncertain business environment. The emerging countries are slowing, Europe is struggling to get back on the road to growth, while the USA is consolidating its upturn.”

In 2013, the breakdown of consolidated revenue was as follows:

Digital: 37% (33% in 2012)
Advertising: 29% (30% in 2012)
SAMS: 17% (19% in 2012)
Media: 17% (18% in 2012).

Digital takes 37% of the total Group’s revenues and Advertising 29%.

Emerging markets

“Our investments in the emerging markets are also producing strong growth, even though these markets have slowed somewhat of late.”, said Levy.

Join us at PORTADA Mexico!

googleThe Wall Street Journal reported yesterday that Google is looking for media TV companies to offer an online version of pay television.

Google has recently approached media companies about licensing their content for an Internet TV service that would stream traditional TV programming, according to the WSJ. Intel and Sony have also been working on offering services that deliver cable TV-style packages of channels over broadband connections. The WSJ also said Apple Inc. has already pitched various TV licensing ideas to media companies in the past couple of years.

Netflix Inc., NFLX +1.28% Hulu and Amazon.com Inc. AMZN -0.11% offer on-demand TV, but the latest efforts are aimed at offering conventional channels, allowing consumers to flip through channels just as they would on cable, as well as on-demand programming.

While Netflix, Amazon and Hulu offer online on-demand TV, Google, Apple and Intel intend to offer convencional channels through online platforms.

Join us at PORTADA Mexico!

Microsoft’s CEO Steve Ballmer sent a letter , under the title “One Microsoft”, to employees on Tuesday and followed up with a conference call together with CFO Amy Hood later that week on Thursday afternoon. Ballmer characterized the new strategy as a “shift in our business to being a devices and services company,” which he specified started “over a year ago. “The form and delivery of our value will shift to devices and services versus packaged software,” Ballmer reiterated.

Adapting to a new Environment

Microsoft is embarking in this new holistic strategy in the midst of plummeting PC sales and strong demand for mobile devices produced by competitors Samsung, Apple and Google.

One Strategy, One Microsoft

In the letter Balmer says that “we are rallying behind a single strategy as one company — not a collection of divisional strategies. Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for

Steve Ballmer
Steve Ballmer, CEO, Microsoft

everything we do. We will see our product line holistically, not as a set of islands. We will allocate resources and build devices and services that provide compelling, integrated experiences across the many screens in our lives, with maximum return to shareholders. All parts of the company will share and contribute to the success of core offerings, like Windows, Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype, Dynamics, Azure and our servers. All parts of the company will contribute to activating high-value experiences for our customers.”

Ballmer added that Microsoft will “reshape how it interacts with our customers, developers and key innovation partners, delivering a more coherent message and family of product offerings. The evangelism and business development team will drive partners across our integrated strategy and its execution. Our marketing, advertising and all our customer interaction will be designed to reflect one company with integrated approaches to our consumer and business marketplaces. This means we will organize the company by function: Engineering (including supply chain and datacenters), Marketing, Business Development and Evangelism, Advanced Strategy and Research, Finance, HR, Legal, and COO (including field, support, commercial operations and IT). Each discipline will help drive our overall strategy. Each discipline will also be charged with improving our core capabilities in its area. We must improve in all aspects of the business.

Grupo Televisa, the largest Spanish-language media company worldwide, announced its second quarter results. Net income grew by 30.7% compared to the same quarter of 2012.

  • Consolidated net sales and operating segment income grew by 6.4% and 8.5%, respectively
  • Royalties from Univision reached US$70.5 million, a 9.9% increase compared to the second-quarter last year.
  • Record revenues in Pay-Television Sky reached 4 billion pesos (aproximately US$ 380 million) with an operating segment income margin of 47.0%
  • Cable & Telecom reached 4.7 million revenue generating units, with strong growth in data and voice of 23.9% and 16.2%, respectively.
  • Net income attributable to stockholders of the Company reached 1.8 billion pesos, a 30.7% increase from the second-quarter last year

televisa1

The table above shows the consolidated statements of income for the quarters ended June 30, 2013 and 2012, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2013 with 2012.

Net sales increased 6.4% to Ps.18,065.0 million (aproximately US$ 1.5 billion) in the second-quarter 2013 compared with Ps.16,983.8 million in second-quarter 2012. This increase was mainly attributable to revenue growth in Content, Cable and Telecom, and Sky segments, partially compensated by a decrease in Publishing net sales. Operating segment income increased 8.5%, reaching Ps .7,733.7 million with a margin of 42.0%. Net income attributable to stockholders of the Company increased to Ps.1,825.5 million in second-quarter 2013 compared with Ps.1,396.3 million in second-quarter 2012.

Results by Business Segment

The following table presents second-quarter consolidated results for each of our business segments in millions of Mexican pesos:

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Content

Second-quarter sales increased 5.1% to Ps.8,241.7 million compared with Ps.7,845.4 million in second-quarter 2012.

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Advertising

Advertising revenue increased by 6.2% to Ps.5,911.4 million compared with Ps.5,566.9 million in second-quarter 2012, “reflecting the ongoing success of our content and also the strength of broadcast television as the advertising platform of choice,” a Televisa statement said.

Second-quarter Network Subscription Revenue increased by 9.5% to Ps.881.7 million compared with Ps.805.4 million in second-quarter 2012. The growth was driven mainly by the sustained addition of pay-TV subscribers, mostly in Mexico, according to Televisa’s release. Second-quarter Licensing and Syndication revenue decreased by 1.7% to Ps.1,448.6 million compared with Ps.1,473.1 million in second-quarter 2012. The decrease is explained mainly by a negative translation effect on foreign-currency-denominated sales. This effect was partially compensated by an increase of 9.9% in royalties from Univision, to US$70.5 million in second-quarter 2013 from US$64.2 million in second-quarter 2012.

Second-quarter operating segment income increased 7.6% to Ps.4,066.8 million compared with Ps.3,778.6 million in second-quarter 2012. The margin was 49.3%. The increase is explained by higher advertising and network subscription revenues.

Publishing

Second-quarter sales decreased 9.7% to Ps.838.7 million compared with Ps.928.7 million in second-quarter 2012. The decrease is explained by lower circulation and advertising revenues in Mexico and the rest of the world and a negative translation effect on foreign-currency-denominated sales. Sales outside Mexico represented 61.9% of the segment compared with 63.2% in the same quarter of 2012.

Second-quarter operating segment income decreased 23.9% to Ps.118.1 million compared with Ps.155.2 million in second -quarter 2012, and the margin was 14.1%. This decrease reflects lower sales and higher marketing expenses.

Sky

Second-quarter sales increased by 12.8% to Ps.4,000.9 million compared with Ps.3,545.5 million in second-quarter 2012. The increase was driven by growth in the subscriber base in Mexico. The number of net active subscribers increased by 233,242 during the quarter to 5,646,254 as of June 30, 2013, compared with 4,550,695 as of June 30, 2012. Sky ended the quarter with 199,529 subscribers in Central America and the Dominican Republic.

Second-quarter operating segment income increased 12.8% to Ps.1,881.0 million compared with Ps.1,668.2 million in second-quarter 2012, and the margin was 47.0%.

Cable

Second-quarter sales increased 8.2% to Ps.4,188.4 million compared with Ps.3,871.7 million in second-quarter 2012. Revenues from Televisas three cable operations: Cablevisión, Cablemás and TVI experienced growth. Excluding Bestel, second-quarter sales in the aggregate for the three cable companies increased 10.8%. Data and voice revenue generating units, or RGUs, continue to be the main drivers of growth, growing 23.9% and 16.2% compared with second-quarter 2012, respectively, and video RGUs grew 7.7%.

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According to the study “Why consumers become Brand Fans” developed by Syncapse, the average value of a Facebook Fan is $174 across key consumer categories. This is an increase of 28% since 2010.

Syncapse’s Fan valuation methodology includes the following key drivers: spending, loyalty, propensity to recommend, earned media value, acquisition cost and brand affinity. “The effect is amplified given the exploding number of Fan memberships among the twenty major consumer brands under study; they have doubled, tripled or more”, according to the study.

The 20 major brands included in the study were Mc Donalds, Zara, Disney, XBOX, Skittles, Nike, Adidas, Victorias Secret, Coca Cola, BMW, Walmart, Subway, Dr Pepper, Levis, Oreo, Target, H&M, Blackberry and Monster.

One of the most significant attributes of brand Fans is that they typically do not fan a brand without trying it first. 78% of Fans were users of respective brands

Exceptions to this rule can occur with passion and aspirational brands that are price prohibitive. For example, the one brand in this study that demonstrated this phenomenon was BMW, where the usage rate for Fans was 36%.

Since being a brand user is usually a prerequisite to becoming a Fan in consumer goods categories, according to the study marketers should prioritize their Fan acquisition investments on converting existing customers. Not only is acquisition cost and conversion friction lower, but the investment in a higher quality Fan base will
reap rewards down the line, and this is true for both lower-cost and higher-cost consumer brands.

Other conclusion from the study is that higher quality Fans tend to attract greater numbers of other high quality Fans, and they also tend to advocate more. Establishing a direct channel with Fans (who are customers) also empowers marketers to communicate more effectively and upsell to their most valuable audience segment.

Why consumers become Brand Fans?

49% of brand Fans cited a desire “to support the brand I like” as a reason for becoming a Fan — making it the most popular reason across all brands. 42% of the fans said they have become fans to get a coupon or discount and 41% said they want to receive updates from the brand they like.

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While transactional offers and incentives are prevalent reasons, emotional and relationship motivators were more universal.

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Metodology: Based on a valuation model developed by Syncapse, the survey research for this study was conducted by Hotspex and consisted of a 25-minute survey using its online panel. After screening a large mega panel of U.S. consumers, data was collected from 2,080 panelists in Q1 2013. Respondents self-identified as Fans by indicating which brands they have “Liked” on Facebook. Next, information on past and projected future behavior was collected both at the category and individual brand level.

adobe.neolaneAdobe Systems Incorporated has announced it has entered into a definitive agreement to acquire privately held Neolane, a cross-channel campaign management technology, headquartered in Paris, France, for approximately $600 million in cash. This most recent acquisition complements other strategic digital marketing acquisitions, beginning with Omniture in 2009 and followed by Day Software (2010), Demdex (2011), Auditude (2011) and Efficient Frontier (2012).

Neolane integrates online and offline marketing data from across an enterprise – performing robust audience segmentation and delivering marketing messages across channels. It offers a platform for sophisticated automation and execution of campaigns across the Web, email, social, mobile, call center, direct mail and point of sale (POS).

“The acquisition of Neolane brings critical cross-channel campaign management capabilities to the Adobe® Marketing Cloud,” said Brad Rencher, senior vice president and general manager of Adobe’s Digital Marketing business. “Adobe has long been the trusted partner to creative professionals and we are now extending our lead in the digital marketing space with the addition of Neolane.”

As Guilherme Toussaint, Adobe Systems Senior Account Executive at Adobe Omniture Business Systems for Latin America and the Caribbean said to Portada: “Today, Adobe’s digital marketing business is growing at an average rate of 40% a year and represents 30% of the company’s total income (about $1 billion)”

Neolane will become a sixth solution in the Adobe Marketing Cloud, complementing the existing Analytics, Target, Social, Experience Manager and Media Optimizer offerings. Neolane has more than 400 customers worldwide.

The transaction, which is expected to close in July, is subject to customary closing conditions.

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Facebook has introduced Video on Instagram, offering users “another way to share their stories”, according to Instagram Blog.

Kevin Systrom, Instagram co-founder, said the video is designed around three core principles: Simplicity, Beauty and Community.

“We need to do to video what we did to photos.”, said Systrom.

When users go to take a photo on Instagram, they will now see a movie camera icon. Users can tap the icon to enter video mode where they can take up to fifteen seconds of video through the Instagram camera. Users will also be able to select their favourite scene from what they have recorded as the cover image for the video.

Facebook’s and Instagram’s move is seen as an attempt to grab more online video advertising dollars. The Online Video Advertising market is growing at a a high rate. Competition is increasing. Major players include  Google’s YouTube, Twitter with its just launched TV ad product and Facebook Instagram.

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premios.portada-001And the Winners Are…

 

TOP CONTENT PROVIDER TO LATIN AUDIENCES

 Touché Films

 

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TOP DIGITAL MEDIA INNOVATOR IN THE LATIN WORLD

Terra Live Music

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TOP LATIN AMERICAN DIGITAL MEDIA AGENCY

Global Mind

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TOP LATIN CONTENT MARKETING CAMPAIGN

Orgullosas (P&G)

 

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 TOP PANREGIONAL ADVERTISING AND MEDIA PROFESSIONAL OF THE YEAR

Marcelo Montefiore – CEO Global Mind

Marcelo Montefiore

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 TOP PANREGIONAL ADVERTISING CAMPAIGN

Sudacannes 2013 – Microsoft Advertising

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TOP PANREGIONAL DIGITAL ADVERTISING CAMPAIGN

Sony VAIO – Global Mind

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TOP PANREGIONAL INTEGRATED CAMPAIGN

Gatorade – OMD “We love to run”

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Portada’s Latin American Advertising and Media Awards reward excellency in Latin American (panregional) advertising campaigns, in media propertiestargeting pan-latin audiences and professionalism in Latin American (panregional) Marketing and Media professionals.

VOTE FOR YOUR CANDIDATES!!!

TOP CONTENT PROVIDER TO LATIN AUDIENCES

  • MSN GLO
  • QuimiNet.com
  • Terra
  • Touché Films

TOP DIGITAL MEDIA INNOVATOR IN THE LATIN WORLD

  • Bajalibros.com
  • Terra
  • Terra Live Music
  • StartMeApp

TOP LATIN AMERICAN DIGITAL MEDIA AGENCY

  • Ennova
  • Exponential
  • FleishmanHillard
  • Global Mind
  • LatinMedios.com
  • Neo Ogilvy

TOP LATIN CONTENT MARKETING CAMPAIGN

  • IBM/Skyword
  • En Naranja (ING) / Weblogs
  • PlayStation/ MEC Miami
  • Obama´s Hispanic Campaign
  • Orgullosas (P&G)

TOP PANREGIONAL ADVERTISING AND MEDIA PROFESSIONAL OF THE  YEAR

  • Alejandro Campos Carles – Co-Managing Director and Founder StartMeApp
  • Anabella Bonuccelli – SVP Operations Director Havas Media Miami
  • Gaston Taratuta – CEO IMS
  • Joel Bary – CEO LatinMedios.com
  • Lázaro Stern – ATAM & Latino Market Director en DG – MediaMind.
  • Marcelo Montefiore – CEO Global Mind

TOP PANREGIONAL ADVERTISING CAMPAIGN

  • Bravia TV – Global Mind
  • Getty Images – ALMAP BBDO
  • HP XL Cartridges – BBDO México
  • Sudacannes 2013 – Microsoft Advertising

TOP PANREGIONAL DIGITAL ADVERTISING CAMPAIGN

  • Fantasy Travel for American Airlines – LatinMedios.com
  • Galaxy Note II Samsung – Starcom
  • Sony VAIO – Global Mind
  • Terra Live Music with Alejandro Sanz
  • Samsung Starters – Starcom – Microsoft Advertising
  • Orlando Miami Vacations – StartMeApp
  • Tous “Tous by you” – THD

TOP PANREGIONAL INTEGRATED CAMPAIGN

  • Gatorade – OMD “We love to run”
  • Head & Shoulders Menthol Fresh “Cabeza Fría”, Leo Messi
  • Sony BRAVIA TV – Global Mind
  • Visa Olimpic Games – OMD

Each user can only vote one time in each category. The most voted individuals/projects win.

Award Winners will be announced at Portada’s 2013 Latin American Advertising Media Summit Award Ceremony.

Voting Deadline Tuesday May 28, COB!

 

 

JorgeMercadoJorge Mercado has been appointed as new Consumer Connections Director of Alma. Mercado has previously worked for Prisa Digital and Terra Networks.

Mercado will be in charge of the media planning. According to the agency a Consumer Connections Director is a “media planning mixmaster; someone who stays on top of content trends across platforms (traditional, viral, retail, entertainment) and aligns the media planning strategy to maximum effect.”

“Our business has grown tremendously and it became clear that we really needed a team member who could incorporate an enhanced view of media opportunities we can fully utilize for our clients,” said Vice President and Managing Director Isaac Mizrahi.

Mercado is a specialist in launching and re-launching brands with a combination of traditional media and new platforms. The executive has more than 15 years of experience in the Hispanic media and marketing. He has worked with brands such as General Motors, GMC, Farmers Insurance, Sprint Nextel and the U.S. Navy.

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