Tomorrow’s Fifth Annual Hispanic Digital and Print Media Conference in NYC, preceeded by today’s Emerging Hispanic Markets Forum, provides and excellent opportunity to reflect about the state of the Hispanic marketing and advertising industries.
These are the most striking characteristics of our industry and how they are reflected in the agenda of our upcoming events.
• The Conundrum: Which is the correct approach to target the Hispanic consumer?
There is little doubt that the Hispanic consumer is crucial to the growth of Corporate America (see our just published 2010 Census Result for Marketers Special Issue). The big question is what is the correct approach to reach Hispanics from a Chief Marketing Officer’s perspective:
• Is it the Total Market Approach (see the AdAge article “on the death of Multicultural Marketing”) which favors a holistic view of the US. marketplace where Latinos are approached as members of the overall population and recognized for influencing, shaping, and changing the entire U.S. consumer landscape?
Or is it a more targeted approach towards the Hispanic population, particularly the Spanish-dominant sector. The proponents (e.g. AHAA) of this approach claim that language and cultural relevance are crucial to effectively reach the Hispanic population. Our Annual Conference with the theme “Marketing to Hispanics: Taking the CMO’s Driver Seat” gets right into the gist of this debate. Major general market decision makers, including Martha O’Gorman, CMO of Liberty Tax Service, Ellen Liu, Director of Media and Marketing, The Clorox Company, Dawn- Marie Gray, Senior Marketing Manager Multicultural, CVS will explain their approach to Hispanic marketing and how they are aligning their organizations to take advantage of the Hispanic opportunity. Keynote presenter Benjamin Jankowski, Global Media Director of Mastercard, will speak about what the fast growing Hispanic advertising and media market can learn from BRIC economies (Brazil, Russia, India and China).
• How to establish the ROI of Hispanic Media Expenditure
While the “Long life to Hispanic marketing vs. Death of Hispanic Marketing” question is an issue up to debate, the Return on Investment on Hispanic Media should be a given fact or a figure. The problem is that no one has come up yet with a compelling way to measure Hispanic Media ROI. Sales to Hispanics sometimes get wrongly attributed to general market instead of Hispanic targeted advertising.
Major corporations also have difficulties identifying their Hispanic customers. It’s virtually impossible to have a correct measurement of the return of media expenditures against the Hispanic demographic. If ROI is not measured well, advertisers may ask, what is the point in marketing to Hispanics? Bart Flaherty, CEO of Group M, Business Sciences will provide an overview of the issues related to Hispanic ROI measurement and suggest new approaches. He also will discuss ROI of Hispanic digital and print media vehicles with Trevor Hansen, CEO of EPMG360 and Rob Fitzgerald, EVP Media Director at Global Hue.
• The Emerging Hispanic Markets
The main news of the 2010 Census is the tremendous growth of the Hispanic population in states that are not part of the top 5 Hispanic markets. Portada is devoting its Emerging Hispanic Markets Forum today to gain actionable insights on how marketers, agencies and media properties can profit by reaching this often overlooked sector of the Hispanic population. A key questions for marketers is how to detect an Emerging Hispanic Market. While there is a strong case for marketing towards the Hispanic population outside of the top 5 markets, media planners often prefer to concentrate resources to be a top 3 competitor in the top markets versus having a lower rank in the top markets and be among the top in emerging markets. Major experts including Cesar Sroka, Connections Director- Walmart account, MV 42, David Flynn, Marketing Director, Novamex and Laura Sonderup, Managing Director and Senior Strategist Heinrich Hispanidad will explore these questions.
• Digital: Growing enough?
The Hispanic digital media market is growing at a 15% plus annual rate, which is great for pure plays like Yahoo!, Orange,Terra, Batanga and MSN, but is it growing enough as to offset the decline of off-line advertising revenues for companies like newspaper and website publisher ImpreMedia? There has also been consolidation in the space (e.g. see last weeks acquisition of several social networking sites by Batanga, or the integration of AOL Latino in the Huffington Post network). In addition, in 2011 major new players have entered the Hispanic digital media market including Prisa Digital and, just announced, iCrossing. The market is also getting more sophisticated with a myriad of new targeting technologies as well as new Spanish-language local search providers.
The Hispanic market is immersed in the structural changes that the advertising and media industries overall are facing. The emergence of tablets, smartphones and social networking is completely changing the engagement of consumers with media and the advertising it carries. Zenith Optimedia’s Lisa Torres, Xavier Mantilla, Media Director at the Vidal Partnership and Aymee V. Zubizarreta, Corporate Public Affairs/Hispanic PR & Social Media at State Farm Insurance will provide an in-depth analysis of the implications at the Social and Mobile panel.
In addition, the emergence of Hispanic content marketing will be discussed in the panel: “What should your Hispanic content marketing strategy be”. Panelists will include Meredith’s Georgia Galanoudis, Kraft’s Tania Cameron and State Farm’s Ruben Rivera.
• Print: Growing again
The Hispanic print sector has undergone a healthy consolidation phase. The good news is the resilience of the Hispanic newspaper and magazine market. According to a recent report by the Pew Center of Excellence in Journalism Hispanic newspapers overall lost circulation in 2010, but not nearly to the extent of the English-language press. English-language dailies saw a 5% decline for the six-month period from March to September 2010 compared with the same period the year before. Daily Hispanic papers grew circulation by 1.9%. Undoubtedly the strong connection many Hispanic newspapers have with their communities has shielded them from the strong decline in general market print advertising revenues.
Magazine advertising is growing, the most conservative estimates put 2010 growth at 5% and 2011 over 10%. Yet, to many observers print does not get its fair share yet. Often there is not enough commitment from the the C-Suite. As Trevor Hansen, CEO of EPMG 360 says ”You can’t measure ROI if its not a true investment. One-offs like World Cup advertising are not really a true investment. The question on whether magazines can deliver Hispanic shoppers in a slowing economy will be analyzed in a panel with Kim Rayburn, SVP, BIGresearch, Maria Rios, Multicultural Marketing Manager, Macy’s and Sergio Carrera, General Manager USA & Puerto Rico, Televisa Publishing.
Looking forward to see you today and tomorrow to hear top marketers, high ranking media executives and other analysts explore these and other issues at Portada’s annual flagship Hispanic conference.
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