Analysis: As Spanish-dominant Hispanics Move Online Spanish-language Publications will Follow them

December 6, 2006
Analysis: As Spanish-dominant Hispanics Move Online, Spanish-language Publications Follow

The number of Spanish-dominant Hispanics accessing the Internet is increasing fast. Itis, in fact, where most of the growth in Hispanic Internet users is coming from. However, content and online advertising inventory is still relatively scarce. In fact, many Hispanics still visit their home country newspaper websites due to the lack of enough online Spanish-language content in the U.S.

Hispanic newspapers and magazines have an important task ahead to put their off-line content online and develop strong online platforms in order to increase online advertising inventory. There are many examples for this trend: Brent Murphy, publisher of Dallas/Ft. Worth based Spanish-language monthly Mercado Bilingue (circ. 50,000), tells Portada that he will soon launch a national web effort. Impremedia recently introduced its tagline‘#1 Spanish-language Newspaper and Online News publisher.” Many other publishers like Al Día (Belo Corp, Dallas/Ft. Worth, circ. 50,000, daily) recognize that the online medium will continue to grow in importance.

An increasing number of advertisers, particularly large companies with branding campaigns, are buying advertising in Spanish-language websites. However, as Captura Group's Lee Vann recently told Portada, for the market to grow more, medium sized companies need to come into the market. “Middle tier companies will be looking at the return on investment of their online advertising campaigns,” Vann notes.

Spanish-language newspaper and magazine websites can play an important role in lifting that return on investment. Until now, they have not played an important role, but that may change.

How large is the Hispanic Newspaper Online Advertising Market?

In the general market, in 2005 online newspaper advertising amounted to US$ 2 billion a year or approximately 5% of the $40 billion general market newspaper advertising market.

Portada® estimates that the Hispanic “offline” newspaper advertising market volume in 2005 was approximately $400 million a year ($325 million local advertising and $75 million national advertising). The Hispanic Internet is less developed, and particularly the readers of Spanish-language websites often still lack e-mail access. This ratio implies that probably 1% – 2% of total Hispanic newspaper advertising currently is advertising bought at these newspapers websites (between $4 millionand $8 million).