Analysis: The Relationship of the USH Market with Panregional-Latin American Advertising

An “auto Q&A “by Portada’s editorial team about the Panregional Advertising market. Caveat: You will learn something, but to know more you will have to buy the report!

What is the Panregional Advertising Market?

We define the panregional advertising market is defined as advertising placements bought in two or more Latin American countries from buyers outside of those countries. These buyers, clients and agencies, can be located both outside and inside of Latin America. The crucial point is that advertising is bought in two or more Latin American countries, regardless of the geographic location where the purchasing decision is made.

Why should agencies and marketers targeting U.S. Hispanics care about the Panregional Market?

Good question. In many ways these are totally different markets. While panregional marketers tend to target middle and higher income Latin Americans, marketers targeting U.S. Hispanics cater to mostly Spanish-speaking consumers in the U.S. of all incomes. Different cultural backgrounds, different environments. However, there are commonalities (e.g. language except Portuguese, brand awareness of many brands Latin American – Mexican brands in the U.S. Hispanic market). Latin American media properties often also tend to have a significant presence in the U.S.

Do U.S. Hispanic advertising agencies care about Latin America and the Panregional Market?

They should be aware about what is going on in Latin America because of what is described above. Some Hispanic agencies do also have Latin American panregional business. This is the case of Conill/Saatchi & Saatchi who is in charge of marketing Sony’s Playstation business both in Latin America. Conill, Saatchi & Saatchi's U.S. Hispanic market agency, produces digital and non-traditional efforts for the Playstation.

Monica Gadsby, who in November 2009 was appointed CEO of Starcom Media Groups Hispanic and Latin American units, said at the time that “there is a lot of possible overlap between U.S. Hispanic and Latin America. For a long time, we were so stuck on how the consumers we're targeting are different. One thing we now have in common is that technology has enabled consumer control across all borders." (Article: Gadsby’s Appointment is there an increasing relationship between Latam and U.S Hispanic?

Some companies, e.g. Burger King, take into account their U.S. Hispanic findings for Latin America and the other way around. Most panregional media is bought out of South Florida (Miami), although in the last few years decision making has moved somewhat to Brazil, Argentina, Mexico and Colombia.

Ok. Fair enough. What is the size of the panregional advertising market?

According to a study released today, Portada expects the Panregional Advertising Sector to grow from an aggregate volume of $306 million in 2010 ($275 million in 2009) to $457 million in 2015 at an annual compounded growth rate (CAGR) of 8.3%.

What is the main growth driver for the panregional market in the next few years?

Digital media (display and search) will expand significantly over the next few years. In addition, over the next five years there will be a significant expansion in ad investment in the IT/Electronics ad-category.

What about buys done outside of Latin America into just one Latin America country?

The above cited figures do not include single Latin American country buys done outside of that country which Portada estimates at a combined $130 million. Brazil, by far, is the leader here, followed by Mexico.

More Info in our just published report!

QUESTIONS THE REPORT ANSWERS: What is the annual compounded growth rate of panregional advertising between 2010 and 2015? What media categories are going to increase their share in panregional advertising? What media categories are emerging?

Other questions the report answers include:

• Which ad-categories are growing the most and why?
• What volume of advertising is expected per ad-category over the next five years?
• What are the main geographic locations (U.S. Brazil, Mexico, and Argentina-Central America) for panregional media buying?
• What is the expected total volume of the panregional advertising market by 2015?

This study answers these and other critical questions based on a survey of those who plan, approve and buy panregional media. This report is critical to media executives serving the Latin American market as well as for media buyers and agencies planning to expand or enter into this growing market.

Buy it here in PDF format ($899)

Buy it here in Paper copy format ($549 direct mailed to you).