INSIDER: Multicultural Media Valuations in the Trump Era, Marca’s Ad Sales Representation, Super Bowl LIX…

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Where Do Multicultural Media Company Valuations Lie Amid the New Anti DE&I Climate? …

Late in 2023, Ariel Investments purchased multicultural media company MyCode; Ariel Alternatives explained the deal’s rationale as a play on the growth of corporate America’s demand for media and marketing services provided by minority-owned businesses. Portada calculated the valuation multiple of the US $400 million transaction at 4.2 times sales, a hefty premium versus similar transactions for non-minority-owned business digital media companies.  The Black Lives Matter movement – started in May 2020 because of the murder of George Floyd, an African-American man, by a white police officer in Minneapolis – fostered an increased sensitivity in that all sectors of society are represented in media in terms of content and as ad investment vehicles.
Over the last 3 months, with the Trump presidential election victory, the tailwinds favoring DE&I and diversity-oriented investment by brands and media agencies have become headwinds.  Due to the conservative opposition to DE&I programs and legal challenges, including the Supreme Court’s decision against affirmative action in university admissions, companies are taking a second look at their practices. Companies that have retired or reduced their diversity targets over the last few months include:

    • McDonald’s
    • Meta (formerly Facebook)
    • Amazon
    • Walmart
    • Harley-Davidson
    • John Deere
    • Ford Motor Company
    • Lowe’s:

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The DE&I policy revisions coming out of Corporate America do not favor the valuation of multicultural-targeted digital media companies, particularly those on the sales block. These include NGL/Mitu, whose owner, GoDigital, is currently shopping. With sales in the US $40 million a year range and EBITDA apparently at approximately US $10 million, analysts estimate the sales value at approximately 7 to 10 times EBITDA (depending on the company’s growth rate).

…Multicultural Marketing Continues to Be a Bussiness Imperative for Growth

Yet, corporate pushback on DE&I efforts should not be confused with advertising and marketing toward multicultural audiences, the new majority of American consumers, and the audiences that, if marketed correctly, provide the best prospects for Corporate America’s growth.
As Stephen Paez, EVP of Multicultural Investment and Innovation, Publicis Media, tells Portada, “In 2025, a key challenge I am focused on addressing is the distinction between corporate diversity efforts and marketing diversity strategies. While both are interconnected, the marketing lens is essential for driving business growth. With 100% of U.S. population growth coming from diverse audiences, our clients must prioritize authentic and strategic engagement with these communities. Elevating this understanding is not just about meeting DEI objectives—it’s a business imperative for sustainable success in an evolving marketplace.”

“In 2025, a key challenge I am focused on addressing is the distinction between corporate diversity efforts and marketing diversity strategies. While both are interconnected, the marketing lens is essential for driving business growth.”

In this sense, companies that derive a substantial part of their sales by marketing to high-growth audiences should continue to have a valuation premium versus those that do not.

Super Bowl in Spanish: Without Verizon this Year

Verizon’s decision not to activate traditional Super Bowl ads in favor of this year’s nationwide FanFest activation” takes one major advertiser out of the 2025 Super Bowl Spanish-language broadcast. In 2024, 

Soccer Digital Advertising: Is Canela renewing with Marca?

Last February, we reported that Canela Media and Marca announced a partnership through which Canela became the exclusive digital ad sales representation company in the U.S. for the Spanish sports and soccer site Marca, taking over from Hispanic Exchange (Numatec). At this point, Portada has heard it is unlikely the partnership will be renewed. The sales performance has been somewhat lackluster.  Even during last summer’s Copa America, anyone visiting the U.S. Marca site could see many house ads for Canela app downloads but not many third-party ads. Even though the digital soccer advertising market is expected to grow substantially, some brands and agencies continue to see soccer as a male-skewed sport with less audience reach than American football, baseball, or basketball. In addition, exclusive sales representations, although beneficial because they offer exclusive inventory, are sometimes structured in ways that are too rigid to be efficient ad sales vehicles in the highly dynamic digital advertising market.

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