Cingular spent $5.08 million in Hispanic newspapers (both FSI and ROP) in 2006, according to Portada Ad-tracking. Total advertising for Cingular in 2006 was more than $1.3 billion. In other words, only 0.39% of Cingular’s advertising spending was devoted to Hispanic newspapers. What would a reasonable ratio be? Given Hispanic purchasing power and demographic representation in the U.S., a reasonable figure would be 10% ($51 million) of Cingular’s general market newspaper ad spending (or a corresponding Hispanic newspaper advertising/ total advertising ratio of 3.8%). According to this model, Cingular should increase its Hispanic print allocation by $45.8 million.
A similar line of thought derives that Citibank should increase its Hispanic print allocation by $ 4.72 million and General Motors by $ 54.2 million. (see detailed box below)
Analysis of Advertising Expenditures of 3 Major Companies
Advertiser | Cingular | Citibank | General Motors |
National Advertising in Hispanic Newspapers (2006 in $ million) | 5.08 | 3.88 | 3.80 |
Total Advertising Expenditure (2006 in $ million ) | 1314 | 1004 | 4065 |
Ratio in % | 0.39% | 0.39% | 0.09% |
National Advertising in General Market Newspapers (2006 in $ million) | 510 | 86 | 580 |
Ratio for General Market Newspaper Investment/Total Advertising (in %) | 38.78% | 8.57% | 14.27% |
Difference in % points in favour of General Market Newspaper speding compared to Hispanic | 38.40% | 8.18% | 14.17% |
Suggested % Difference (taking into account Hispanic Buying Power and Population) | 34.52% | 7.32% | 12.75% |
Recommended Increase/(Decrease) in Hispanic Newspaper spending (in $ million) | 45.88 | 4.72 | 54.20 |
Source: Portada Ad-Tracking |
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For more information about Portada Ad-Tracking, year on year growth comparisons and Q1 and Q2 2007 data, call Annette Fielman at (516) 396-0179 or e-mail her at [email protected].
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