As advertisers prepare their media budgets for 2005, several trends seem to be taking shape. Magazines and direct mail are the vehicles of choice, according to a Portada® survey of media buyers interested in reaching Spanish-speaking audiences through print. Automotive, personal care (beauty) and retail are the strongest growth categories, followed by financial services and telecommunications.
Aida Levitan, co-chairmen and CEO of San Antonio based Bromley Communications, who plans media buys for BMW-North America, Bell South, and Burger King, expects national print ad spending targeting Hispanics to grow between 10%-20% in automotive, retail, telecommunications and personal care. Levitan expects direct mail to be the primary vehicle through which the growth in advertising is channeled, followed by Hispanic magazines (women's, business, and lifestyle).
Rodrigo Vallejo at Dieste & Harmel Partners (Clorox, JC Penney, Taco Bell, HBO Latino, and Southwest Airlines) expects magazine advertising to grow the most, followed by direct mail. Vallejo predicts a 5-10% increase in automotive ad spending.
Growth for national magazines
Because of their national reach, magazines tend to be more attractive to national and regional advertisers than newspapers, which are usually local. According to HispanicMagazine Monitor, advertising revenues in magazines targeting Spanish-speaking audiences were slightly below US $150 million in 2003. However, magazine publishers estimate that the figure was closer to US $75 million. Ad-tracking services such as HispanicMagazine Monitor do not take into account discounts to the open rates published in magazines' media kits. Discounts of up to 50% are not unusual in the Hispanic magazine sector.
The expected growth in Hispanic magazine advertising is partly the result of strong beauty and health categories. Lancôme media buyer Jill Golden tells Portada® that her print advertising budget will increase by about 5% and that those extra dollars will go into magazines. “Our budget will grow 10 to 15%,” says Mike Puican, CEO of Joss Claude Products, who introduced Formula Latina, a hair-care product for Latinas, this year.
The popularity of magazines in this survey is partly due to the fact that the majority of print media buyers work for national or regional advertisers. Local advertisers, which generate the majority of revenues for newspaper publishers, often plan media buys in-house and do not work through agencies.
Newspaper inserts look promising
Still, some media buyers predict that 2005 will be a good year for newspapers. According to Gloria Constanza, SVP and media director at Bravo Group in New York, Hispanic inserts in general market and local community Hispanic newspapers will get the most advertising in 2005, followed by direct mail, and large metropolitan Hispanic newspapers (dailies and weeklies). Constanza predicts more than 10% growth in automotive, financial, pharma, consumer packaged goods and personal care categories. Constanza buys media for Sears & Roebuck, Mazda, Jim Beam, Blockbuster, Paramount Great America, and Banco Popular.
Miguel Hiramoto, media buyer at Los Angeles based Anita Santiago Advertising, who plans buys for Southern California Gas & Co., Ikea and Wells Fargo, expects telecommunications to grow between 10% and 20%. Along with magazines, Hiramoto expects large metropolitan Hispanic newspapers to be the favored print media vehicles next year.
New survey yields similar results
The answers from this year's survey of media buyers show similarities to the results from 2003. In September of last year, Portada® interviewed 25 media buyers interested in reaching Hispanics through print. Hispanic magazines were the preferred advertising vehicle. Additionally, almost half those interviewed predicted that the personal care (beauty) category would grow at least 10% in 2004 (see “Personal care, drugs and media set for high growth in spending,” page 1, Portada® No. 5, September/October 2003).