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The news that Entravision is  purchasing Cisneros Interactive marks another chapter in the consolidation of the U.S. Hispanic and Latin American digital media space. Six questions and answers: Acquisition price? The rationale for the transaction? How Entravision is substituting off-line revenue losses with digital gains and more…

Entravision and Cisneros just announced that Entravision has acquired a majority stake in Cisneros Interactive. 6 things to take into account about the transaction and what it says about the multicultural and Latin American digital marketing sector.

1. Entravision purchases Cisneros Interactive: What is the price of the transaction?

Entravision Cisneros Interactive AcquisitionNeither the price of the transaction nor the size of the stake of Entravision in Cisneros Interactive was disclosed (other than it is larger than 50%) However, it is likely that there was no substantial upfront payment by Entravision, and that the main part of the purchase price is contingent upon sales and profitability of the acquired company going forward. Although Entravision does have substantial cash reserves, CEO Walter Ulloa said during the  second quarter 2020  financial results conference call on August 4 that his company is in “cash preservation mode”, as it undertook  substantial cost cuttings  “including a reduction of our workforce by approximately 18% and a  company-wide reduction of salaries for those still on the payroll.”

2. What is Entravision buying?

Currently, Cisneros Interactive’s portfolio consists of six initiatives:

Facebook’s Authorized Sales Partner in Latin America: Cisneros Interactive is Facebook’s strategic partner in Latin America, at this moment with presence in 9 countries (Ecuador, Paraguay, Bolivia, Uruguay, Panama, Guatemala, Costa Rica, Dominican Republic and Puerto Rico). Cisneros Interactive in these markets offers Advertisers and Ad Agencies local support, education, and local credit and payment. Cisneros Interactive also has sales partnerships in some Latin American markets with Linkedin and Spotify.
RedMas, with local teams in 16 countries, offers multiple advertising products such as video, mobile, display, and programmatic solutions.
– Audio advertising solutions company Audio. Ad.
 –AudioTrade, a  DSP (Demand Side Platform) specifically tailored to audio advertising.It additionally has the exclusive representation in Latin America of large audio publishers such as Tunein, PRISA’s programmatic inventory, Deezer, and podcast-giant Wondery.
– Influencer marketing company FLUVIP.
Coyote Media House specializes in banded entertainment.
Tail, a DMP, Data management platform.
All Cisneros Interactive employees will remain with the company, with Victor Kong continuing as Chief Executive Officer, based out of Miami.

3. What is the rationale for the transaction in the U.S.?

Major drivers are to obtain critical mass, more marketing muscle and economies of scale.  Portada estimates,  that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019 (check out our recent Insights Report  How brands engage U.S. Hispanics: New segmentation approaches). At least 80% of that amount is sold by Google and Facebook, leaving approximately  US $210 million for other companies. Portada also estimates that advertising in Spanish-language digital media targeting Hispanics in the U.S. lied at US $350 million in 2019, with approximately US$ 70 million for non-Google/Facebook players. In the U.S. Hispanic market the main second tier players are Univision Interactive,  NBC Interactive, Pandora and Spotify. Entravision digital revenues in the second quarter of 2020, were US $11.4 million. With the Cisneros Interactive acquisition and other acquisitions Entravision is attempting to step up and become a major player in the fifth of the market that is not dominated by Google and Facebook.

With the Cisneros Interactive acquisition  Entravision is attempting to step up and become a major player in the fifth of the digital ad market that is not dominated by Google and Facebook.

If you add the fact that despite all the “diversity marketing” talk during COVID-19 there have been stronger declines in digital ad volume in the U.S. Hispanic advertising market than in the general U.S. market (e.g. CEO Walter Ulloa mentioned during the second quarter conference call that digital revenues were $11.4 million, which represents a decrease of 32% versus the same period last year), the need for consolidation through an Entravision Cisneros Interactive acquisition is imperative.

and Latin America?

The expanding Latin American digital media market is dominated by Google and Facebook who get at least 80% of the sales volume.  The remaining sizable players are ad rep company IMS and video marketer Teads, and perhaps Spotify. Beyond these players, and some strong national market media, it can be said that there is no more “middle class”  in the Latin American and U.S. Hispanic markets.  Hence, the need of medium size players like Entravision and Cisneros Interactive to integrate.

There is no more ‘middle class’ among digital media properties targeting  Latin Americans. Google and Facebook origin more than 80% of the market volume.

 

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At this exclusive virtual event, Brand Decision Makers and Marketing Service Suppliers will share and accelerate knowledge on key topics including multicultural marketing,
e-commerce marketing and marketing technologies.

4. Entravision Cisneros Interactive acquisition: Are both companies complementary?

By and large they are, as Cisneros Interactive has a strong footprint and client base in Latin America, it serves over 2,000 brands and agencies each month, and Entravision Digital in the U.S. There are some overlaps like Cisneros Interactive Audio Advertising company Audio Ad and Entravision’s Audio Engage. Although, the press release states there will not be personnel changes, some cost saving rationalization in some units going forward may make sense.

5. How is Entravision expanding its digital business?

Entravision Cisneros Interactive Acquisition

For a number of years Entravision has worked on a digital strategy to meet market demand. In  2017, Esteban Lopez Blanco, at the time Chief Strategy Officer at Entravision told Portada  that he “expected a growth rate of the digital business of more than 40% for many years to come.” At the time he estimated the share of digital revenues in Entravision’s overall revenues to climb from 20% to 30% by 2019 or 2020.

Earlier this year, Entravision announced the launch of Entravision Digital , which consolidates its digital, media, consumer insights and marketing technology businesses under the Entravision brand.  The company has worked over the past several years to  build a portfolio of digital assets that possess digital reach, data insights and creative and programmatic capabilities.  Entravision made its first foray into ad-tech when it bought Pulpo Media for US$ 15 million in 2014. In 2017 it bought Argentinean Martech company Headway , for a price insiders claim to lie between US $30 million and US $40 million, Headway includes  AudioEngage, a digital audio advertising platform; ScrollerAds, an optimized video advertising marketplace; DataXpand, an international data management platform and audience marketplace with consumer insights.
Entravision later bought Smadex, a programmatic, mobile-first, DSP services provider.

6.  Does digital growth at Entravision compensate for off-line declines?

In the short term the answer is no, because right now all revenue types are declining at least in part due to the COVID-19 pandemic. The share of digital revenues on overall revenues was of 25.3% according to Entravision’s second quarter 2020 financial results.  By far the largest part of Entravision’s revenue base is broadcast advertising (TV and Radio) which even before COVID-19 was having year on year revenue declines of at least 10%.  In the words of CEO Walter Ulloa, those declines got bigger with the advent of COVID-19: “Television revenues in the second quarter were down 29% to US $27 million, compared to the prior year period due to the pandemic. National television advertising revenue was down 25%, while local advertising revenue was down 43%. Audio revenues were down 53% during the second quarter, compared to the prior year. Local revenues were down 52%, while national revenues were down 54% in the quarter.” For Q3 2020 In early August, Entravision’s Q3 television advertising business is pacing minus 8%, our radio business is pacing minus 34%, and our digital businesses are pacing minus 18% versus the third quarter of 2019.

Walter Ulloa, CEO Entravision, mentioned during the second quarter 2020  financial results conference call on August 4 that  Entravision’s overall revenues decreased 35% to $45.1 million in the second quarter. Consolidated operating expenses were down 24%, and consolidated adjusted EBITDA was down 86% to $1.7 million, compared to $12.6 million last year.

The jury is still out on whether in the long term digital growth will compensate for the secular decline in off-line revenues, but inverstors are nto betting on it:  If You Had Bought Entravision Communications’ Shares Five Years Ago You Would Be Down 79%, financial analysts at Simply Wall Street recently wrote.  But then stocks also turn-around.

 

Cynthia Hudson, senior vice president and managing director of CNN en Español and Hispanic strategy for CNN/U.S., was recognized by the Association of Latino Professionals for America (ALPFA) as one of the 50 Most Powerful Latinas 2020.” On October 8th, ALPFA celebrated these women through an event titled “Most Powerful Latinas Women of ALPFA, Values Leadership with Purpose.” 

Cynthia Hudson
Cynthia Hudson with correspondent José Levy. (Photo via Twitter)

For the fourth year in a row, ALPFA is proud to honor fifty successful women who are navigating their business divisions, companies, and industries through these challenging times with a values mindset and a purpose focused on serving the community and the greater good.  

The list is made up of powerful Latina women that includes Jessica Alba, Jennifer López, Gloria Estefan, Sofía Vergara, Eva Longoria, and Rosario Dawson, among many others. This is an event that commemorates the positive influence of Latina women in the society and how their achievements contribute to a better world.  

This is an event that commemorates the positive influence of Latina women in the society and how their achievements contribute to a better world.

CNN en Español Network was also honored during THE FAXIES Awards 2020 virtual celebration by Cablefax. The FAXIES, an awards program in the b2b space, include Behind-The Screens Executives & Teams, marketing & PR campaigns and audience engagement experiences.

Proyecto Ser Humano Campaign

Proyecto Ser Humano (The Humanity Project) is an ongoing campaign that defines CNN en Español mission. The project focus on modern-day discrimination, how society is working to solve this violation of human rights, and how we can all combat the stereotypes and behaviors that lead to the indignities that are the hallmarks of discrimination.

The significant results of Proyecto Ser Humano’s participation in THE FAXIES was the following:

CONTENT MARKETING CAMPAIGN

1st Place: Proyecto Ser Humano (The Humanity Project)

CORPORATE SOCIAL RESPONSIBILITY

3rd Place: Proyecto Ser Humano (The Humanity Project)

INTEGRATED MARKETING CAMPAIGN – CSR

2nd Place: Proyecto Ser Humano (The Humanity Project)

PUBLIC AFFAIRS CAMPAIGN

3rd Place: Proyecto Ser Humano (The Humanity Project)

CORPORATE SOCIAL RESPONSIBILITY

3rd Place: Proyecto Ser Humano (The Humanity Project)

Video engagement is a major factor for successful advertising. A Vevo-Magna-IPG study finds co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity.

Music video platform Vevo has partnered with MAGNA and IPG Media Lab, to reveal significant findings around the nuances of multicultural audiences’ video viewing behavior.

“The Anatomy of a Video Experience: A Multicultural Study” explores how audiences consume content across multiple devices and their motivations around viewing habits. Understanding these subtleties is key for brands looking for great video engagement and reach receptive audiences and better inform their planning efforts.

Viewer BehaviorThe study found that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White), shared a love of co-viewing (watching video with someone other than yourself) on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV.

Longer viewing periods result from content that people find culturally relevant, specifically sports and music. On average, 37% of highly culturally relevant content viewing sessions last for one hour or more. When it comes to ad receptivity in particular, viewing music content on OTT devices is key, with over 60% of each group responding that they would be receptive to ads.

On average, 37% of highly culturally relevant content viewing sessions last for one hour or more.

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“Partnering with MAGNA and IPG Media Lab once again for this study is really valuable for our business” says Bryon Schafer, SVP of Research, Vevo, “With recent findings showing that 79% of Vevo’s CTV content is being co-viewed, it’s important for us to understand the nuances of audience behaviors in order to pass on these insights with our clients and partners. No screen is seeing a greater surge in Vevo viewership than the television, which has seen an increase of over 20% since March of this year with 61M viewers exclusively engaging on connected TV screens. Modeling user behavior against our content and go-to-market strategies keep us in tune with our global audiences. We’ve really enjoyed finding out exactly what makes viewers tune in – and stay tuned in to the content they watch.”

Video Engagement: Audience demographics

While co-viewing on OTT devices spans across all surveyed viewer behavior groups, each demographic has vast differences around why, when and how they watch content on various devices. Some of these findings include:

  • Asian audiences:
    • Older audiences are more likely to seek out informative videos for task-based viewing sessions across all devices.
    • Younger Asian audiences are more likely to watch binge-friendly genres, like music, resulting in longer viewing periods of over an hour across all devices.
  • Black/African American audiences:
    • As a whole, Black/African American audiences watch binge-worthy content for longer periods of time. However, unlike younger Asian audiences, younger Black/African American viewers tend to watch content in shorter spurts of less than 30 minutes, likely driven by higher levels of mobile usage.
    • Black/African American viewers are the most likely audience to seek out music and sports content.
    • OTT is the leading device to resonate with Black/African American viewers at their most engaged with 63% of audiences being receptive to ads on this device.
  • Hispanic/Latino audiences:
    • English-dominant and bilingual Hispanic/Latino viewers tend to have longer watch time. While Spanish-dominant audiences watch for mid-length sessions of 30-59 minutes.
    • 33% of total Hispanic/Latino viewing sessions last longer than one hour.
    • 60% of Hispanic/Latino viewers watching music on OTT are receptive to ads.

Viewer Behavior“Culture is a pervasive and essential part of every consumption and is being driven by people of color,” says Oscar Allain, VP of Cross-Cultural Strategy & Research at UM. “These consumers are critical to the growth of businesses across all sectors. Not only are they influential in driving their own cultures, but they are also shaping mainstream culture.”

These consumers are critical to the growth of businesses across all sectors.

“Our Cultural Dimensions study reinforced the idea that social media platforms have helped propagate and influence the conversation on culture.  So the merging of our datasets with IPG Media Lab’s and MAGNA’s helps to bring new multicultural insights into how we think about creating smarter strategies for data analysis, planning, creative and more,” says Deidre Smalls-Landau, U.S. Chief Marketing Officer and Global Head of Culture for UM.

Media buyers crave for brand safety and strong consumer connections. We talked with Augusto Romano, CEO Digo Hispanic Media, about the important role trustworthy media properties play for brands who want to substantially engage consumers in a brand safe environment. “During this time filled with all sorts of pandemics: health, racial, and fake news, we are more committed than ever to provide the information our readers need, in the language they understand, and on the platforms they prefer,” Romano tells Portada.

Augusto Romano, CEO, DIgo Hispanic Media
Augusto Romano, CEO, DIgo Hispanic Media

The crucial role of professional media properties for effective consumer engagement by brands can not be overstated, much less in the era of fake news. It’s all about brand safety, particularly when it comes to Multicultural Marketing. “Being a network owned and operated by the leading media companies in the Caribbean, we understand, and do not take lightly, the importance of being transparent and trustworthy to our Latino and Hispanic readers and to our clients,” Romano asserts. Digo currently is in the midst of an initiative of  advertiser outreach called Good Brands Support the Truth.

“At Digo, we’ve been loud and clear of our unique value proposition and have always offered brands and advertisers an environment free of fake news. Digo’s network is formed by the top Latam Publishers who are the first point of reference for Hispanics in the U.S. “We offer brands the opportunity to reach and connect, in brand-safe, culturally relevant & premium content sites, with a highly engaged and true premium Spanish dominant & bi-cultural U.S. Hispanic Audience.” 

Brand Safety: Media Sites Offer Higher Quality Engagement

Social Media has always been a platform in which users dive in to seek content relevant to them, but mostly related to what friends and family are doing and posting. Romano argues that “yes, users come across content from media and advertising from brands, but social media is an ecosystem that has so much going on that the engagement and awareness generated may not be classified or considered as high or the same quality as if a user is going directly / organically to a media or brand site. ” As an example Romano notes that  “if we compare time spent of a user that was browsing in social media and came across a news article in his or her feed vs the time spent of a user that came directly to the site to seek information we’ve seen how the average session of a direct or organic user is significantly higher than of a user that came from social media; 2 or even 3 times higher.’

The average session of a direct or organic user is 2 or even 3 times higher than of a user that came from social media.

Romano claims that Digo’s brand safe premium quality inventory has been successful with brands and media agencies. “Some agencies and brands understand the value of our audience and our inventory and whitelist our network within their DSP’s.  A good example of this is Group M’s new Multicultural Marketplace.”

Content Needs of Audiences during Covid in a Brand Safe Environment

Content needs and usage by audiences of Digo digital media properties has substantially  increased over the last few months.  According to Romano, “when you compare the time spent of our audience in Covid related content we’ve seen a 48% increase in time spent on page. We saw a significant spike of +200% increase in unique traffic in Covid related content during April vs. the  previous month. As you may recall in mid-March the topic was a known issue, but there was still some skepticism and some unfamiliarity with the subject. As time went by, the traffic was still significant and engaging with the content but the amount of users was not as high as when the pandemic had started in our markets. As a matter of fact a new spike of traffic has surged now in July due to the same spike of cases.”

A new spike of traffic has surged now in July due to the same spike of cases.

Portada LiveJOIN US AT PORTADA LIVE, OCT. 14, 2020
Brand marketers from corporations including: Cox Communications, Lyft, Nestle, K-12 , Wells Fargo and many more will discuss the below topics:
Collaborative Knowledge-Sharing Session: How Covid-19 is Accelerating Digital Transformation: A cross-industry perspective
A diverse group of brand decision makers will provide actionable insights about their digital transformation and readiness in these unprecedented times.

– Research Spotlight: Consumer Behavior Trends for 2021
Brand Marketer Challenge: Purpose Driven Marketing in the Age of a Pandemic, Recession and Racial and + Social Injustice
With the widespread outrage about racial inequality consumers are voting with their wallets about brands’ response to racism. A brands’ alignment with its core values and purpose should be the foundation of consumer support.

To find out about Portada’s new virtual networking solutions at PortadaLive 2020 involving a myriad of  brand decision makers , please contact Sales Director David Karp at David@portada-online.com.

 

Podcast advertising is one of the few media categories that are growing at a high rate, even in the midst of the Covid-19 pandemic. CNN Audio, the exclusive producer of audio content and podcasts for CNN Worldwide, ,is expanding CNN en Español’s podcast portfolio with the launch of “El Chapo: Two Faces of a Capo”. Narrated by journalist and CNN en Español anchor Fernando del Rincón, the six-episode podcast series follows the trial of Joaquin Guzman Loera, publicly known by his drug cartel alias “El Chapo,” and his reputation as a ruthless drug trafficker.

“El Chapo: Two Faces of a Capo” was released during the week of the first anniversary of El Chapo’s sentence (July 17, 2019), highlights new evidence and dramatic testimony through secretly recorded audio conversations, as well as through text messages and letters, that allowed the jury and the public to get an inside view of how El Chapo managed the inner workings of the Sinaloa Cartel. Audiences learn about the shocking details that came to light during his New York trial, his violent and unscrupulous methods, as well as other sides that, until now, have remained hidden. All episodes are now available to listen at http://www.cnn.com/elchapo, across mobile devices via CNN’s apps for iOS and Android, and on all major podcast platforms, including Apple Podcasts, Spotify, Stitcher, TuneIn, iHeart and Pocketcasts.

Podcast advertising is one of the few media categories that are growing at a high rate, even in the midst of the Covid-19 pandemic.  Cynthia Hudson, SVP and managing director of CNN en Español and Hispanic strategy at CNN recently told Portada that CNN en Español’s  podcast ad inventory is sold out until July.
According to the IAB and PricewaterhouseCooper’s full year podcast ad revenue study, the category will grow  by 14.7% to US $ 1 billion in 2020. Media buying agency Omnicom and Spotify recently announced a  a deal worth US$ 20 million in podcast advertising.

Podcast Marketing: Among the Top Ten Podcasts

Regarding advertising monetization of the El Chapo podcast, sources at CNN tell Portada that they are “seeing healthy interest from our advertising partners across the WarnerMedia portfolio of podcasts. The podcast is supported by CNN Audio and WarnerMedia’s network of advertising partners.”

The podcast is supported by CNN Audio and WarnerMedia’s network of advertising partners.

They add that the they El Chapo podcast is among the “the top 10 of LatAm podcasts and has millions of downloads on a daily basis.” More podcasts series are in the offing, according to the source, as “several unnanounced projects are currently in development.”

Production: Storytelling Relying on the Presenter’s Voice

Fernando del RinconCNN anchor Fernando del Rincon, photo, tells Portada that it was an “exciting challenge to adapt the El Chapo story to a podcast.”  Regarding the differences between audio production and television production he notes that they are quite different from each other, especially when it comes to storytelling: “Storytelling in a podcast relies heavily on your voice, and the content and tone depend so much on how you narrate the story. It’s all about engaging listeners to draw them in. The original El Chapo documentary was produced for TV where there is visual support, so adapting the content into a podcast was not an easy task since it’s a complicated story to tell. But the end result that we produced is amazing.”

Storytelling in a podcast relies heavily on your voice, and the content and tone depend so much on how you narrate the story.

 

 

 

 

 

 

 

Pepsi announced an integration with Telemundo’s, through which it will become the first-ever beverage sponsor of La Voz, the Spanish-language edition of NBC’s  “The Voice.” As the show’s first-ever beverage sponsor and prizing partner, Pepsi will take the season two stage by storm, celebrating Latin music and the talented phenoms giving everything to become the next big musical superstar. The premiere episode of season two of “La Voz” is set to air this Sunday, January 19th.

 

Esperanza Teasdale
Esperanza Teasdale, VP & General Manager, PepsiCo’s Hispanic Business Unit

The new investment reflects Pepsi’s Hispanic Business Unit commitment to Hispanic Marketing and to “elevate the voice of the Hispanic consumer”, Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit , tells Portada. “The La Voz sponsorship, which taps into the Pepsi brand’s rich heritage in music and entertainment, allows us to celebrate Hispanic culture and passion points and support the next generation of talented musicians who aren’t afraid to live life their way and chase their musical dreams,” Teasdale adds.

The campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.

Pepsi will level up the season two “La Voz”  prize, bringing the original $100k grand prize up to an epic $200K.  The integration will span the blind auditions, battle rounds and live performances.  It will feature cups branded with Pepsi in the coaches’ chairs and include Pepsi branding across a number of touchpoints:  multi-screen  presence throughout the season, in-show and out-of-show custom activations on linear and social and prominent thematic storylines woven throughout the season.

La Voz Sponsorship with the Fusionistas Target in Mind

Teasdale, a half Ecuadorean and half Colombian executive, notes that “Pepsi understands the passion point that Hispanics have with music. It’s in their DNA.” She adds that the campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.”

 

“Eso es lo que quiero”

The integration will also bring to life and feature the newest U.S. Pepsi campaign tagline, “That’s What I Like” (“Es Lo Que Quiero”).  Launched earlier this month, the new tagline is the brand’s first in two decades and is inspired by the most loyal Pepsi drinkers, who proudly like what they like and live their lives out loud without worrying about what others will think – whether that’s belting out a song at karaoke, clapping at the end of a movie, or simply enjoying a Pepsi.

Pepsi unveiled five new national commercials to launch the new tagline, three of which were developed in partnership with the Pepsi brand’s Hispanic agency, Alma (“DJ BBQ,” “Subway,” and “Lavandería).  The new ads spotlight various everyday people getting lost in a moment and finding themselves dancing in unexpected places or situations, despite the amused gaze of onlookers.  Each spot is underpinned by a variety of upbeat music spanning hip-hop, dance hall, Latin pop tracks and more. The spots will air across English and Spanish-speaking properties to reach the brand’s ever-growing fusionista fans, Latinos celebrating and blending their Hispanic and U.S. cultures.

We caught up with Kia Motors America’s Eugene Santos, Senior Manager, Multicultural Marketing, about Kia’s new multicultural campaign, Driving Forces. Anything related to the Hispanic market comes to Santos’ desk first, so he knows a thing or two about how to market to Hispanic consumers. He told Portada New York 19’s audience all about Kia’s first time using influencer marketing to target Hispanics. 

Eugene Santos, Senior Manager of Multicultural Marketing at Kia, has spent years practicing how to market to Hispanic consumersThe last time we spoke to him, he gave us a preview of what he had in store for the brand’s next Hispanic-oriented campaign. All we knew at the moment was the goal, to reach the Hispanic segment through an emotional connection to the brand’s new slogan. Fast forward to a couple of months later, Kia has launched Driving Forces, a campaign that involves real Latino stories.

Eugene Santos discusses Kia’s Driving Forces campaign at Portada New York

“We launched a message during the super bowl: Give it everything,” Santos said to an audience of fellow brand marketers at Portada New York. “In the past, Kia has been successful with Superbowl commercials. But now that the message is out there, what do we do with it? What does it mean? Especially for Latinos.”

The problem facing automakers these days, according to Santos, is that vehicles are smarter and last longer, so consumers are holding to their cars for more time. “The need for an automobile has decreased,” Santos pointed out. But the campaign has already proved to be fruitful, as the 200-percent increase in traffic to the Kia Soul landing page shows. Santos shared this and other pieces of information in exclusive at Portada New York… metrics not even Kia’s management had seen!

 

Still Talking Up the Hispanic Market

For a Korean brand that is relatively new to the U.S., the new Driving Forces campaign is a huge deal. “As all multicultural marketing managers know, budget is an issue,” said Santos. “Since Hispanics account for 18% of the population, General Market assumes we should have 18% of the marketing budget, but it doesn’t work that way.”

In fact, a real problem that stood out throughout the Portada New York conferences was the need to convince management of the relevance of Hispanic consumers. “You’d think that in 2020 we wouldn’t need to fight to convince organizations about the Hispanic business opportunity,” commented Santos. “But we keep fighting the same fight. Therefore, make sure you can show metrics that the general market understands.

The good news is: insightful, culturally nuanced campaigns are an important step to increasing companies’ awareness…, and getting a few more ad dollars. “Telling a story allows us to continue to connect with our audience and keeps the brand on top of mind. This might look like a simple project, but it’s making our company reconsider how they think about multicultural,” shared Santos.

 

An Effective Campaign Will Take You Far

As Eugene Santos explained, a successful campaign can yield results that are very important for the long run: not only can it get you more budget with management, but it can also ease you into the next step of your strategy.

That’s why Santos likes storytelling; it can elevate your brand by telling relatable stories to consumers and then follow up on those stories. But many times complications arise from the start in multicultural marketing. Whether it’s the lack of multicultural representation in management, inaccurate audience measurement or a lack of creative assets, it’s still difficult to know how to market to Hispanic consumers, starting from the (still relevant) question of what language to use.

 

Problem: How to Market to Hispanic Consumers

“When people think ‘Hispanic’, they automatically assume they have to use Spanish,” told Santos. “It doesn’t have to be that way. So for the first time, we’re using English-language creative to reach Hispanics. Bilingual and bicultural creatives go a long way.”

But the problem persisted: how could they elevate the Kia brand in a meaningful way? There were many factors at play, like limited assets, recent leadership changes and a low budget. “For a long time people have assumed that Kia is a cheap Korean Brand, but for the last 5-6 years, Kia has been recognized with top quality distinctions with brands like Mercedes and Porsche,” pointed out Santos. “Kia has various brand messages, but the objective was to dilute it into one message that created top brand consideration.”

 

Answer: Brand Ambassadors Who Share the Consumers’ Stories

Influencers are a risk, and yet most marketers have experience with them. They all learn that the only effective influencer marketing is based on brand ambassadors that share a true affinity with the brand’s values. For that reason, Santos chose two unique influencers that could tell the Latino story, because it was theirs.

“How do we tell the underdog story, which is really the Kia story, and how do we tell the Latino story to them?” asked Santos rhetorically. “I want to talk about the professional who is trying to do something different and relate it to my key customer.”

Consequently, Kia worked with Andrea Londo, a self-proclaimed border child who commuted from Tijuana to San Diego every day to go to school. Now, she is living her dream of being an actress. “You probably don’t know her, but in 2-3 years you will,” assured Santos. On top of everything, Londo drives a Kia Optima, which made for a perfectly organic fit.

Click here to learn Andrea Londo’s story

Clara Pablo, the other influencer featured in the campaign, is the manager of Miami-based Latin Pop group CNCO and of Colombian singer Maluma. Music is one of Kia’s verticals, which allowed for an organic fit with Pablo. In addition, she’s a breast cancer survivor and awareness advocate, which adds “a humanistic element that allows us to send out a message not only about cars but beyond. Young Latinos want to connect with brands that stand for the same things they do.”

Watch Clara Pablo’s story here

 

Once You Have the Right Message, Put it In the Right Creative (and Get the Right Partner to Do It)

One of the first things to do if you wish to launch a successful campaign is choosing the right partner. Because of the various problems multicultural marketers have to face, an agency that can really carry your message is as important as the message itself. For the Driving Forces campaign, Kia partnered up with Verizon Media. “We knew they could programmatically expose our message to a wider audience that is bicultural. Also, their creative studio, RYOT, could help us with assets that allowed us to show our message in relation to the creative,” explained Santos.

Together, they came up with docu-style creatives and an array of branded formats to tell the story of Latinos and Latinas. Through the two “driving forces” the brand chose as ambassadors, they focused on upbringing, biculturalism, accomplishments and their will to tackle a challenge. “The main goal was for them to connect with us,” stressed Santos. “We wanted to hit them at different points of their journey to let them know that we’re here for them and we understand them.

 

Results (Spoiler: Cultural Marketing Works)

The results so far have been positive. The completion rates above the benchmark of both videos show that consumers are interested. Also, CTRs are the same in Spanish and English, so language doesn’t always matter as long as viewers really connect with the message. “If the emotional component is there, they’ll stick around and come back,” said Santos. Reach and engagement have also been good, which has given Santos the confidence to ask for more budget.

Ultimately, Santos concluded that it’s all about three key rules. First, define your strategy: be clear on what the content should speak to and ensure alignment to overall brand strategy. Second, listen to your gut. Pick a partner that can execute and deliver significant reach for your targeted audience. Finally, don’t forget to ask yourself this question: what’s my next move?

 

Featured image designed by welcomia / Freepik

What:  Media agency GroupM is leading the New Majority Ready™ Coalition which also includes Disney, Google, iHeartMedia, Meredith Corporation, NBCUniversal, Twitter, Univision and Viacom.
Why it matters: The coalition’s aim is to help brands adapt to the changing U.S. demographics and assist in developing their audience planning and media strategies accordingly. The ultimate ambition of the coalition is to increase brand relevance, business growth and create a seismic cultural shift.

The coalition will collaboratively develop tools and solutions to help brands get “ready” to engage the new majority, including:
• A benchmark tool – Multicultural Maturity Framework – that will help assess a brand’s “readiness” for this demographic shift across audience, investment, culture, content and more;
• Cross-platform content solutions based on the framework assessment and inspired by brand need
• A communications program to drive better understanding of America’s population transformation and to assist in driving adoption of new majority-first media strategies that reach, engage and authentically connect to these consumers.

Gonzalo del Fa, President of Multicultural, GroupM (photo), tells Portada that “the multicultural demographic in America isGonzalo del Fa, GroupM increasingly fueling the economy  (they currently represent 40% of the U.S. population) yet the ad dollars committed to them are disproportionately low at just 5%. In addition to that, 2020 will be the first year that a large demographic group (individuals under 18 years old) will be ethnically and racially diverse.”

2020 will be the first year that a large demographic group -individuals under 18 years old – will be ethnically and racially diverse.

Facebook (including Instagram) is not part of the new coalition. Asked why this is the case,  Gonzalo Del Fa, President of GroupM, Multicultural, tells Portada that “this first phase represents a handful of media partners across multiple disciplines such as video, print, audio and social media. A really exciting start. Our hope is that we will be able to welcome other leaders to join this movement”. According to del Fa, The New Majority Ready (NMR) coalition was initiated by GroupM to help brands better adapt to the changing of the U.S. demographic. In order to achieve that goal, GroupM is bringing together industry-leading companies across media, technology and publishing”.

The Challenge of Accurate Multicultural Measurement

The need for a more unified measurement of multicultural audiences is a major challenge that has hindered growth of investment in media targeting multicultural audiences. Asked about how the newly formed coalition will approach this particular challenge, del Fa says that “our benchmark tool (Multicultural Maturity Framework) will assess a brand’s “readiness” for the New Majority. This assessment includes brand’s growth potential, audience strategy, consumer perception, resource allocation and corporate impact among others. Based on that assessment, communication strategies and cross-platform content solutions that reach, engage and authentically connect to these audiences will be created to address challenges and opportunities. We will work with each client’s marketing team as well as our own analytics team to accurately measure the level of success of these initiatives.”

What: Eugene Santos, Senior Manager, Advertising & Marketing, Multicultural at Kia Motors gave Portada his 4 key insights on automotive brand marketing and how to win Hispanics’ hearts.
Why it matters: It’s no secret that Hispanics love a good car. The auto industry in the U.S. is growing, just as well as the multicultural population in the U.S. According to a Statista timeline, digital advertising spending of the U.S. automotive industry is expected to reach US $15.5 billion this year.

 

Automotive brand marketing is just like marketing in any other industry. In order to get it right, marketers need to approach it with the right set of tools and a great deal of creativity. Add a multicultural component to the mix, and you’ll get a more complicated task. However, if brands take the time to really understand the target and the way consumers relate to the category, they might end up getting a recipe to success.

Eugene Santos

When the 2018 Kia Rio was named one of the top 10 best vehicles for Hispanics by the Hispanic Motor Press Foundation, the company had already been targeting this multicultural segment for years. However, Kia Motors only started selling cars in the U.S. in the 90’s. How does a relatively new brand compete with powerhouses of the automotive industry in order to gain Hispanics’ hearts?

We talked to Eugene Santos, Senior Manager, Advertising & Marketing, Multicultural at Kia Motors to get his key insights about what the brand is planning to engage Hispanic consumers more effectively.

 

We use AI to engage consumers who are in the ‘discovery’ and ‘research phases of their consumer journey.

1. Automotive Brand Marketing 101: Make Sure You Engage Your Consumers

Firstly, says Eugene Santos, you have to ensure you understand how your consumers engage with your content. Like any other brand, Kia uses a mix of KPI’s and likes/dislikes ratios, but it is also aware of the important role of the right technologies. “We use AI to engage consumers who are in the ‘discovery’ and ‘research phases of their consumer journey,” explains Santos. ” This gives us an opportunity to look at the multicultural aspect as well.”

 

2. When Targeting Hispanics, Always Think In-Culture

According to Kia’s latest reports, sales grew 1% in May, mostly thanks to a rise in sales of a favorite of Hispanics— the Kia Soul. “Hispanics are a big part of our success, especially in a flat market,” reveals Santos. “The multicultural segment growth has allowed us to stay on pace or ahead of business plans. The Soul has traditionally over-indexed within the Hispanic segment. It tends to skew towards a younger audience and mirrors the demographics of the Hispanic consumer.”

Kia Soul - Automotive Brand Marketing Case StudyTherefore, these results show the brand is already doing something right. When asked about the approach Kia takes when marketing to Hispanics, Santos hits the nail in the head. “We don’t like to approach this segment by thinking ‘Spanish or English’? But rather, ‘How do we communicate in-culture? And that can be a combination of either language as it relates to our target audience and the look/feel of our campaign.”

 

 

3. Choose the Right Message, Make it Emotional

When asked about messaging, Santos explains that the brand continuously tries to build an emotional connection with the Hispanic segment. The new campaign will “tell the story of the ‘unsung heroes’ who work hard to accomplish their life’s mission but don’t necessarily crave the spotlight.” Kia has previously incorporated into their narrative real stories of hard-working Latinos (watch below). Santos says “this will bring a connection Hispanic consumers by showing Kia lives by the same values as them.”

4. Learn From Your (More Experienced) Competitors

In 2017, Dealer Marketing Magazine reported that vehicle purchases by Hispanics would double from 2010 to 2020. Because of tradition from their origin countries, Hispanics have a famous fondness for Japanese cars. In fact, in 2014, Hispanics were contributing to nearly 40% and 30% of total brand growth for Toyota and Nissan, respectively.

Thus, we wanted to know Santos’s thoughts on how the relatively new player from Korea competes with these brands. “They’ve been communicating with the Hispanic segment for a very long time, longer than Kia,” agrees Santos. “I started my automotive career at Honda, and having seen their work ethic first hand, I am proud to say that Kia is on its way.”

But what sets Kia apart? Its “Give it Everything” philosophy, that “underdog spirit that has helped us improve our vehicle quality, and technology that has allowed us to outperform even luxury brands,” shares Santos.

In conclusion, Kia is young, but it is on the right track towards Hispanics’ hearts. To find out more about automotive brand marketing first-hand from the experts, join Portada New York!

 

 

A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.

  • ESPN is closing its ESPN Deportes radio business in September as the company looks to shift resources into mobile and podcasts, according to the Minute MediaSports Business Daily. The division, which debuted in 2005, has 44 terrestrial affiliates in 15 states, as well as a SiriusXM channel. Staff layoffs are expected.

 

  • Minute Media has raised $40 million in its latest funding round. The publishing platform owns and operates five media brands powered by its proprietary technology platform: 90min, DBLTAP, and 12up, As well as Mental Floss and The Big Lead. Combined, Minute Media’s properties reach more than 140 million monthly and feature original content in 12 languages.
    “With the commercial momentum we’re experiencing as an organization, growing at 100% year-on-year, we’re purposely focusing investment on the deepening of our publisher product and tech offering — a part of our business that is rapidly expanding. Additionally, the new capital enables us to continue to be aggressive on the M&A front, constantly looking to acquire premium publishing brands across new content verticals and within new markets,” said Asaf Peled, Founder & CEO.

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  • DAZN locked Spanish media rights to all 26 matches from this year’s Copa América, for a reported US$1.69 million. Conmebol’s streaming rights were previously carried by Telefonica’s Movistar+ streaming platform.

 

  •  
    Canelo Alvarez
    Canelo Alvarez.

    Canelo Alvarez came fourth in the top 10 members of Forbes’ highest-paid athletes for 2019, with $94 million ($92 million in winnings. Forbes calculates earnings include prize money, salaries, and bonuses earned between June 1, 2018, and June 1, 2019, as well as endorsement estimates of sponsorships, appearance fees and licensing incomes for the same 12-month period. 

 

  • Combate Americas’ Cricket Wireless Presents Combate Americas: Tucson Unbreakable showcase reached more than 420,000 viewers, nearly 10% higher (421,000 vs. 390,000) than the previous event which was held in Lima.

A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.

  • NFLThe NFL started an initiative, as part of the NFL Academy in the UK, designed to use American football to create “life-changing educational and professional opportunities for young people.” The NFL Academy will begin operations in September 2019 and offer student athletes aged 16-18 the opportunity to combine education with life skills and intensive training in the sport under full-time professional coaches. The initiative will be supported by Nike and based at Barnet and Southgate College, in North London.

 

  • According to the NBA’s data, the League Pass has recorded a 400% consumer growth driven by the popularity of the league’s overseas players, including a 400 per cent spike in subscriptions to the over-the-top (OTT) service in Serbia. Denver Nuggets’ Serbian center Nikola Jokić has been instrumental to that huge increase in subscribers in his native country throughout the 2018/19 season.

 

  • Disney is considering the option to acquire streaming rights to the NFL Sunday Ticket, as part of plans to boost ESPN’s professional football portfolio. AT&T currently holds the streaming rights until 2022, though a clause in the contract indicates that the league does have an option to opt out of its exclusive agreement at the end of the 2019 regular season. Amazon is also thinking about entering the bidding.

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  • MLB presented its promotional plans for the London Series 2019, looking to highlight the growth of baseball & softball in the UK as the Red Sox face the Yankees on June 29 and 30. Activities include a baseball cultural festival, known as “London Yards,” that will include music, baseball virtual reality activations, Boston & New York cuisine, and, a live screening of the game.

 

  • Copa AméricaCopa America has signed a content deal with Facebook to produce behind-the-scenes content for all 12 teams this summer. The partnership will allow official tournament profiles on both Facebook and Instagram to produce content from training centers, hotels and team transportation. “This agreement will enable the production of unique content that will bring all football fans behind the scenes of the world’s oldest national team tournament and some of the top stars in today’s football,” said Thiago Jannuzzi, competition general manager at Copa America.

 

  • More than 500,000 viewers switched on Univision to watch Combate Americas’ “Cricket Wireless Presents Combate Americas: Reinas” event, the first all-women’s Mixed Martial Arts fight lineup, which was broadcast live on network television on April 26. Viewership among adults 18-49 shot up by a margin of 28% from the previous Combate Americas event.

A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.

  • Fernando Alonso
    Fernando Alonso.

    Fernando Alonso, known for his career in Formula One, has invested in an esports venture owned by the Miami-based Motorsport Network. As part of his position on the board, Alonso will participate in the Motorsport Network’s negotiations with other prospects who are interested in joining Motorsport Games. “Esport is no longer a fantasy, it’s a reality and something I have been passionate about for some time,” the Formula 1 driver said. “Investing in, and helping to lead Motorsport Games will allow me to make a real contribution to this exciting aspect of motorsport’s future.

 

  • The MLB has signed a four-year partnership extension with T-Mobile, designed to grow its OTT service MLB.TV subscriber base. The new agreement sees the telecommunication giant remain as title sponsor for the MLB All-Star Home Run Derby event, it also includes a provision offering T-Mobile subscribers a year’s access to MLB.TV, as well as premium features on the MLB At Bat app and other prize competitions. “We love baseball, and clearly, so do our customers. They streamed nearly three million hours of baseball with MLB.TV in 2018 – two times more than the year prior,” stated T-Mobile chief executive John Legere.

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  • x - San Jose SharksThe National Hockey League (NHL) franchise San Jose Sharks have announced it would provide Spanish-language commentary on its OTT platforms and TV broadcasts, in conjunction with Tico Sports. Users will be able to access the Spanish-language stream on either the Sharks + SAP Centre app or via an SAP setting on NBC California television broadcast. The partnership with Tico also includes helping the Sharks expand their Spanish-language social media presence. Games will be live tweeted from a dedicated Los Tiburones account alongside additional original content.

 

  • ESPN+ locked UFC’s PPV events, becoming the platform’s exclusive distributor of events in the United States through 2025 and the single point of purchase for consumers. The deal kicks in with UFC 236: HOLLOWAY vs. POIRIER 2 on April 13, as part of 12 live events per year. “With the addition of UFC PPV events, we are making ESPN+ an absolute must-have for any fan of the UFC and mixed martial arts,” said Kevin Mayer, Chairman, Direct-to-Consumer & International, The Walt Disney Company. “In less than a year, ESPN+ has established itself as the leader in direct-to-consumer sports and this new programming agreement adds a significant business to our platform while reinforcing the value and strength of our product and our content lineup.”San Francisco GiantsAccording to a Washington Post poll, 38% of mixed martial arts fans are African-American, and 31% are Hispanics.

 

  • Baseball team the San Francisco Giants have locked a ten-year, omnichannel retail partnership with Fanatics that will see the sports merchandise and apparel firm operate the team’s flagship store at Oracle Park, and all shopping experiences online and on mobile. As part of the agreement, Fanatics will combine its cloud-based technology and data platform with its on-demand manufacturing capabilities to identify unplanned ‘micro-moments’ so that it can create and distribute quick-turn Giants merchandise throughout the year.

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  • The NBA has announced that the Chinese and Croatian national teams will join the 30 NBA franchises in the annual MGM Resorts NBA Summer League pre-season tournament. While China has already joined the NBA Summer League in 2007, this will be Croatia’s first time. For the second year in a row, Las Vegas will host all 30 NBA teams. In 2018, the Summer League set a new record for total attendance with 139,972 spectators with an additional 30.4 million hours of Summer League content watched on ESPN and NBA TV.

 

  • Combate AmericasCombate Americas is returning to Monterrey, N.L., Mex. with its second, annual ‘Estrellas’ event, featuring a collection of the MMA sports franchise’s talent, live in Spanish in the U.S. on both Univision (12a) and UDN and in English in the U.S. and Canada on DAZN (10p) on April 12.

 

  • USA Hockey and Chipotle Mexican Grill have renewed their partnership which makes de Mexican restaurant an official sponsor of USA Hockey. “We’re thrilled to have Chipotle continue as part of our corporate partner family,” stated Pat Kelleher, executive director of USA Hockey. “When our players and families think about a pre-game or post-game meal, Chipotle is a great choice. We look forward to enhancing our relationship and appreciate their engagement in growing and furthering our game.”

Peter P. Snitzer Jr., CEO at Conffianz, explains how social media is helping the beauty company grow, during Portada’s 11th Annual Multicultural Advertising and Media Conference.

On September 14, Peter P. Snitzer Jr., CEO, Conffianz participated on the Multicultural Shoppers panel, where he explained how the Latina consumer is practically why their beauty brand exists. “We are all about empowering Latinas,” said Snitzer Jr. during an interview.

We are all about empowering Latinas.

Given that Conffianz’ target is older women, the company has been using traditional outlets like TV as their marketing platforms. But, as Snitzer Jr. explains, Facebook has also become a great tool. Recently, the brand launched a campaign that had user-generated content. “We had a fantastic result. You really can’t compete with user-generated testimonials,” he explained.

We had a fantastic result. You really can’t compete with user-generated testimonials.

In addition, Conffianz has been working with some business partners to grow both the brand and their commitment to the Latino community. To find out who these allies are, watch the full interview below.

 

Join us at PORTADA Mexico!

Just a glimpse at the headlines surrounding today’s biggest brands suffices as proof that diversity is one of their top priorities. Last Friday, Hewlett Packard sent a letter to all its agency partners requesting a proposal from each one on how they would increase the number of women and people of color on their creative staffs. This followed an almost identical request from General Mills earlier in the week.

So how well are multicultural agencies faring in meeting the increased demand for campaigns shaped by diversity and the inclusion of a wider audience? Throughout 2016, media industry rabble-rousers have stirred up discussion about how well multicultural agencies are serving brands in their targeting efforts, and whether they must find new ways to deliver ROI if they are to stay relevant to their clients.

How can multicultural agencies adapt to shifting demographics, and should media, creative and digital be bundled together? How can marketers look at the media landscape holistically without losing sight of the particular idiosyncrasies of Hispanic audiences?

Take a look at what Nydia Sahagún, Senior Vice President and Head of Diverse Segment Strategy at Wells Fargo Bank; Zach Rosenberg, president of MBMG Media; and Janina Delloca-Pawlowski, Multicultural Marketing Manager at Dunkin’ Brands had to say about Hispanic agencies’ roles in the current media climate.

Do Smaller Segments Require Smaller Efforts? 

Anyone in the business would be hard pressed to call the Hispanic market “small” today. The Hispanic market is growing faster than any other in America, and given the size and purchasing power of Hispanic consumers, it really cannot be considered a separate segment in this day and age. Wells Fargo PROG 2 (21)Bank’s Sahagún asserted that “with Hispanics shaping modern society as we know it, their impact should not solely be measured on size but rather on the influence and impact they have on the broader population.”

But since it is technically still a segment within the general population, misconceptions about the amount of effort, or money, that should go into Hispanic outreach are still giving shape to ineffective Hispanic outreach.

Multicultural agencies need to “drive meaningful conversations and engagement with this audience, which will take prioritization and commensurable investment,” Sahagún said. Dunkin’ Brands’ Delloca-Pawlowski added that even if you do look at Hispanics like a “small segment,”  they “often mean larger efforts because the level of engagement needs to be that much more refined and specialized.”

Misconceptions, Arbitrary Budgets Are a Disservice

An agency, whether it is multicultural or full-service, will often be limited by the budget it allots to Hispanic and multicultural targeting. But Zach Rosenberg, president at MBMG Media, which specializes in integrated media campaigns and counts El Pollo Loco, Shakey’s Pizza and The General Insurance among its clients, highlighted that decisions on budgets can have a significant effect on the success of Hispanic outreach efforts, and that brands sometimes define budgets for multicultural arbitrarily, setting an incidental percentage of the general campaign budget aside for targeting instead of reaching a number through analysis and serious consideration. In this case, hasty budget decisions mean that “segments could end up being underserved,” Rosenberg warned.

On the other hand, “full service agencies may be able to allocate larger budgets to all aspects of their multicultural outreach, as they may fit it into their holistic view of the media instead of putting aside a small amount for targeting particular demographics,” he elaborated.

What’s more, some brands are just starting to grasp the opportunity that Hispanics present them. It may take time for brands to not only wrap their heads around the size and potential of this sub-group, so strategies will take time to develop and engage consumer segments as they hope: “It does not happen overnight and results/ROI should be analyzed accordingly,” Delloca-Pawlowski said.

Sahagún echoed that sentiment, stating that “every brand is at a different point in their journey to understand the impact and influence of the Hispanic market.” Sometimes, integrated campaigns are “a step in the right direction.” In the case of Wells Fargo, the goal is always “to represent the diverse point of view early and often.” But not all brands are that far ahead.

Full-Service Agencies Struggle to Adapt to Current Landscape

Rosenberg cited the rise of digital as another added complex element in an industry that has been highly “debundled,” with creative, digital and media often handled by separate shops. “There are digital shops that manage both creative and media under one roof,” he said, but others believe that the digital ecosystem requires the undivided attention of specialized agencies. Rosenberg argued that “digital is just one other, albeit, complex and ever changing channel, and should be viewed in the context of all media channels which can only be done at a general media agency.”

“Media is media,” Rosenberg asserts. So when it comes to general media versus specialized or multicultural agencies, there is an PROG 2 (15)argument for putting everything under one roof, especially because bigger agencies tend to have bigger budgets and consequently, more negotiating power. But that doesn’t mean that multicultural agencies aren’t necessary: “If the staff at a general media agency doesn’t understand the nuances of marketing to these groups (language, age, geography, media usage, acculturation), then they will be doing a disservice” to their clients, Rosenberg clarifies.

Rosenberg summarizes the dilemma: “The challenge with housing multicultural media with creative under one roof is their ability to achieve the necessary clout in the marketplace to negotiate the best media deals. In a world of specialization, the adage is that it is hard to do two things well. There are very few full service agencies, general or multicultural, relative to the current agency landscape.”

Ensuring Authenticity While Adopting to Changing Consumer Landscapes

Hispanic consumers have taken on a new identity as the country’s demographics have shifted. This, coupled with the rapid adoption of technological tools and platforms designed to inform marketing decisions means that everyone is fighting to keep up.

Delloca-Pawlowski believes that all agencies, not just multicultural, are facing a similar challenge: “All agencies must evolve with the changing consumer landscape, because what worked in the past may not continue to work in the future.” In general, she said, “as consumers’ product preferences and media consumption habits evolve, agencies need to embrace these changes and adjust their plans accordingly.”

PROG 2 (22)She also underlined the importance of ensuring “cultural and language authenticity” instead of simply “translating general market creative.” “At the end of the day,” she said, “every agency must demonstrate their value to the client through overall thought leadership, consumer insights on their respective segments, new communication opportunities and pitching better ways to engage with consumers, as well as reporting competitive activity.”

Brand and Agency Collaboration Key to Success

Ultimately, brands and agencies have a shared responsibility to bring out the best in each other while generating impressive ROI. Delloca-Pawlowski highlighted that it is the “client’s responsibility to foster this kind of teamwork and collaboration among its agencies” to ensure that the “best work will surface and the entire team will shine as a result.”

In that respect, Rosenberg argued that specialized agencies have a leg-up here, as they “have the advantage of strategic adherence across both creative and media,” and that “the burden has fallen on media agencies to ensure collaboration between client and all of their agency partners. This is just as important with multicultural shops, and the future multicultural agency could be one where they drive strategy for creative and media but outsource activation,” Rosenberg estimated.

Perhaps Sahagún summarized it best: “Agencies that rest on their laurels will become obsolete – regardless of their particular specialty.”

The topic of this article will be explored in-depth at At #Portada16 Sept. 14-15 in NYC, in the session “Are Multicultural Agencies Necessary?”
MODERATOR:
Zachary Rosenberg, President, Milner Butcher Media Group
PANELISTS:
Mebrulin Franciso, Senior Partner, Director of Marketing Analytics at GroupM
Alejandro Solorio, Hispanic Marketing Director, Comcast
Gloria Constanza, Partner, Chief Contact Strategist, D’Exposito & Partners
Alexander Traverzo, Multicultural Marketing Manager & Strategist, Hola
Lucia Ballas-Traynor, EVP of Ad Sales, Hemisphere TV
Description:
Leading practitioners will immerse themselves in the questions below:
• Are Hispanic marketing and media buying justified under the total market approach?
• Agency models for media and content development
• The role of the media agency in the age of programmatic audience buying
REGISTER here at the online promotion price!

David Benitez has led Intelligent Mexican Marketing in connecting leading Mexican brands with American consumers for nine years. He sat down with Portada to reflect on the strategies and decisions behind the company’s success, how the market for Latino products has evolved in the United States, and where he plans to go next.

 Founder and CEO of IMM David Benitez has kept a journal documenting his business adventures for years. Sometimes, he says, he re-reads his old entries and finds notes about experiences that he had completely forgotten about. Other times, he realizes that the problems he faced years ago are the same as those he faces today. But one thing is for certain: in IMM’s nine-year history, the company has grown exponentially, and become a leader in connecting American consumers with leading Latino brands.

Logo-LongWhat is the secret to Benitez and partner Ricardo Villareal’s success? “When you have a purpose as a company, and you know where you want to go and you have the team, it’s quite simple to get there. It’s important to have clarity of what you want to do.”

When he started IMM, consumers were just starting to appreciate and understand the opportunity that they were facing: “The concept of Latino was different from what it is today,” says Benitez. “When you tried to sell something Latino, very few companies were doing that, very few brands.” There were still only a few leading brands in each vertical, but “everyone was trying to address the race to capture the Latino market in the US.” What everyone didn’t necessarily understand was how to do that.

“When you have a purpose as a company, and you know where you want to go and you have the team, it’s quite simple to get there. It’s important to have clarity of what you want to do.”

Educating the Consumer

Benitez’s previous experience in operations and consumer products gave him valuable insight into how to target Latino brands in a way that appealed to American audiences. A huge industry of consumption had emerged in which products, people, and money were sent back and forth between people on each sides of Mexico and the United States. Everyone started fighting for the same piece of the American consumer pie. But “90% of the products coming to the US were in wholesale environments.”

Everyone was using the same channels. Consumers had no advantage in terms of prices and choices. Real brands were not being created – only the middlemen, the wholesalesmen – were capturing the value. And those companies were not seeing results. Benitez has always tried to run IMM differently: “Our purpose…is for everyone to enjoy the best Latino brands.”

Instead of simply delivering Mexican products in a truck, Benitez and his team focus on “

creating experiences for both the customer and the consumer, and telling them about the real potential of Latino products.” He claims that he has found very few companies doing what he has done at IMM because “they don’t create brands.”

“They’re just traders. But if you want to create an experience out of a brand, that’s a whole different approach. That’s why we decided to do it this way, to recreate the brand, and the packaging…we needed control over our own destiny with intelligent marketing, which is the concept behind our company’s name.”

At this point, he has concentrated most of his efforts in Texas, where they have a distribution network of over 7,000 stores. As for the competition? “They think having a delivery truck is all you need,” says Benitez, “but nothing could be so far from the truth.” Unfortunately, he has seen a lot of companies forced to shut down while attempting to reach into the US Hispanic market.

Turning Brands into ‘Heroes’

Benitez is uniquely positioned to connect the Mexican and American markets because he understands what they have in common, and what they don’t. “One of the very interesting things about Mexico is that we don’t have many heroes. The United States creates heroes every day,” says Benitez. We decided to make our brands and products the heroes. We want to give this to the people so that they can feel proud when they see their products selling everywhere.”

Benitez says that he wants to help these brands succeed in the United States with losing their identity. While some minor tweaks are necessary, it’s all about “finding the conversation that the product would like to have with the consumer.” He d01c0ef1554fa79ec4cbe5adbe9a2d5fgives the example of Takis – which is the number one snack in Texas now, beating even leading American brands like Doritos – because he was able to help the brand attract both Hispanic and Americans.

But IMM faces his fair share of challenges. “We have to educate buyers, store managers and suppliers as well, as many of their decisions are based on what their bosses are telling them to do, not what the consumers are willing to buy.” Benitez believes that it is very different to be company-centric as opposed to being customer-centric.

Cutting-Edge Technology to Push Expansion Efforts

He has been diligent about implementing the best in technology at IMM. As 80% of the stores that they service are franchises or independently owned, he has had to develop top-of-the-line technology and analytics for creating promotions, anticipating prices and generally staying on top of their huge network. In 2012, he even visited Apple’s Cupertino office and managed to persuade them to help IMM convert the iPhone into their main distribution and marketing tool. Apple has provided the guidance and team to support the endeavor, and IMM has been operating with this technology for almost four years now.

“Our goal is more brands, more Latino expansion, more coverage. I want to take this globally.” But the more he travels, the more he “feels the weight of the challenge.” First, IMM will focus on expanding within the United States, integrating more products and expanding through bringing more brands from other countries in Latin America.

But Benitez is sure that he already has the right formula, and that now he just needs to execute. And although his company may be bigger and more profitable than your average startup by now, he still guides himself with the same principles that he did as an entrepreneur. “If you share our purpose, you become our partner,” he says.

Portada speaks with some of the key players in multicultural sports marketing to gather insights on their goals and priorities for 2016. Views and forecasts from leaders at Tecate, Amtrak, Elemento, TeamWorks Media, GLR, Fox and AC&M Group.

By Gretchen Gardner

chivasThe growing Hispanic market has become increasingly key for American brands’ marketing efforts. But it’s not an easy task to develop a strategy that works for such a diverse, segmented audience. Hispanic Americans hail from such diverse cultures and geographic regions and have different levels of insertion into American culture, making it difficult to group them all into one market.

But one thing is clear: Hispanic-Americans love sports. In fact, a Nielson study indicated that 94% of Hispanics identify themselves as sports fans, while 56% would say they are avid fans. So how are key players in sports marketing making plans for 2016?

In Portada’s conversations with industry executives, there was a consistent mention of the ever-evolving landscape of digital marketing. There is no single platform that commands the attention of the entire Hispanic market, so messages and branding must be distributed among broadcast media, social media, and physical locations like stadiums or arenas.

Futbol and Boxing Dominate

Speaking of stadiums and arenas, two sports have proven to be key: Soccer and boxing.

Gustavo Guerra
Gustavo Guerra

Gustavo Guerra, Brand Director for Tecate beer at Heineken USA confirms that the brand is focusing strongly on opportunities in these sports, as it wants “to become synonymous with the biggest games and fights focusing on these moments where fans gather to watch their passion points.” The brand worked on increasing engagement around both sports through bringing the fans physically together, bringing Chivas, the most popular football club in Mexico, for a friendly match in the U.S., hosting online forums for the Mayweather Pacquiao fight, for which Tecate was the exclusive beer sponsor, and hosting viewing parties for other big games or fights.

In 2016, Tecate wants to continue to help fans “have familiar and authentic experiences when they’re enjoying their favorite sport.” Tecate plans to build on the fact that it is the #1 beer in Mexico, and assures us that they’ve “just scratched the surface” in this appeal to Hispanics’ biggest passions.

Language is optional, but relevancy is a must!

Marco López, a partner at agency Elemento L2, agrees that

Marco Lopez
Marco Lopez

soccer is the key to reaching Hispanic audiences in 2016, as staying “culturally relevant with a compelling story” is key to his agency’s strategy. And what about language? “Language is optional, but relevancy is a must!” Lopez also mentioned the power of insight as an alternative to those who cannot acquire the rights for properties or teams, citing Beats by Dre during the World Cup as an example.

But it’s not all about soccer. Tab Bamford, Business Development

Tab Bamford
Tab Bamford

Manager at Teamworks Media, a Chicago based Sports Marketing Agency, suggests that their biggest opportunity for 2016 was non-soccer content. “The market is saturated with really good soccer content already, and there are a lot of other sports that Hispanic fans are excited about and engaging with that marketers and sponsors are neglecting,” Bamford said. And not all sports are created equal, as Bamford highlights that “there are nuances that need to be recognized when talking about different sports, much less with different audiences. Being aware of both the macro audiences and the niches is paramount to succeeding.”

The market is saturated with really good soccer content, and there are a lot of other sports that Hispanic fans are excited about that marketers are neglecting.

WATCH HIGHLIGHTS FROM PORTADA’S 2015 SPORTS MARKETING FORUM:
(2016 Edition: September 21, 2016!)
Nascar Driver Daniel Suarez (VIDEO)
Total Market or Hispanic Market? Who cares, only Gooolaaazos matter (VIDEO)
Gustavo Aguirre Associate Brand Manager Coors Light at MillerCoors (VIDEO)
Fernando Fiore – Interview (VIDEO)

A Focus on Engagement

What’s more, Hispanic sports fans are not just numerous, but also sophisticated and connected, and demand engaging content about the teams they love says Jose Ortega, Director of Digital Media at Fox.

Jose Ortega
Jose Ortega

Ortega emphasizes Fox’s efforts to engage with Hispanic sports fans “in a more user-friendly way,” providing them with “in-depth articles, behind-the-scenes access, programming grids and results for all the leagues and teams across all sports.” Ortega also highlights the importance of expanding the multi-platform presence, re-launching their website to include “more video and mobile experiences for users.”

Luis Gutierrez
Luis Gutierrez

Luis Gutierrez, Vice President of Sales at GLR Networks, the production and distribution arm of PRISA Radio, also spoke of the importance of engaging with Hispanics, not just exposing them to brands, as they continue to provide “great play-by-play spots analysis” for Chivas, and six other teams in the Mexican Liga through coverage by people like DR.Z and Alex Pazos.

Because Hispanic audiences are so passionate about sports, brands

Crystal Hudson
Crystal Hudson

with little connection to sports must find ways to get in on the action. Crystal Hudson , Principal Officer in Sports & Affinity Marketing at AMTRAK says that in 2016, the brand’s biggest opportunities will be in “partnerships with teams and properties that have specific Hispanic marketing initiatives and programs” like the NY Mets with Los Mets and Washington Wizards with Latin Nights. To Hudson, language does present a challenge, though: “sports sponsorships are expensive, so diversifying messages (i.e. using both Spanish and English across assets) becomes very challenging and cost-prohibitive.”

Jaime Cardenas, CEO of AC&M Group, also notes that merely sponsoring sports teams or events for brand exposure is no longer cost or message-effective, as “the main value of a sports sponsorship comes from engaging with fans to expose them to the sponsor’s message, not only on site at games but also at retail, digital and social channels.”

Cost-Effective Alternatives?

While the Olympics, Euro Cup and Copa America Centenario provide many opportunities for sports sponsorships in 2016, like Amtrak’s Hudson, Cardenas acknowledges that not all clients can afford sports sponsorships,and the challenge for 2016 will be to “find creative ways to leverage the heightened awareness to a particular sport or event and turn it into an engagement opportunity for our client’s brand.”

The main value of a sports sponsorship comes from engaging with fans to expose them to the sponsor’s message, not only on site at games but also at retail, digital and social channels.
jaime cardenas
Jaime Cardenas

Cardenas also speaks about the  difficulties associated with customizing messages to targeted fan segments, because “the challenge has always been that the more you customize the message the more expensive it is to produce, and the more waste in terms of exposure.” Instead of giving up on hyper-targeted messages, Cardenas’s agency will be working on delivering those messages through less expensive options.

AC&M is currently exploring one of those options: youth soccer clubs. The agency has found that in terms of ethnicity, household income, age and gender, these clubs hit the mark, providing that magical combination of “content (sport, athlete, league, team, etc.), language (Spanish vs English), and consumer (Mexican, Colombian, Dominican U.S. born, foreign born, moms, millennials, etc)” that so many agencies covet. And it’s no secret that targeting youth is an effective way to spread a message, as young adults are some of the most connected people around.

A seasoned sports agency CEO, Cardenas is well aware of the challenges that 2016 will bring any brand or agency looking to appeal to the Hispanic market. “When you look at how diverse the Hispanic market is, and the number of options available from sports properties and events, it is easy to understand why sports marketing for Hispanics is more complex than for general market. However, we also know that if you find the right mix the results justify why it is important to use sports to connect with Hispanic consumers.” We couldn’t have said it better ourselves.

DOWNLOAD PORTADA’S 2015 SOCCER MARKETING GUIDE!.

What: Advertising and marketing agency Walton Isaacson has appointed Alice Rivera as Vice president, Hispanic Marketing.
Why it matters: Rivera takes on the role previously held by Rochelle Newman-Carrasco, who will continue to work with the agency in an advisory position.

79IfH0B9_400x400Walton Isaacson , an independently held, minority owned, full-service advertising and marketing agency, has bolstered its strong multicultural client offerings with the addition of Alice Rivera as Vice president, Hispanic Marketing.

In her new position, Rivera reports to Walton Isaacson partners and co-founders Aaron Walton and Cory Isaacson.Rivera takes on the role previously held by Rochelle Newman-Carrasco, who has led WI’s charge in Hispanic marketing for the past seven years and will continue to work with the agency in an advisory position as she completes her MFA.

Rivera joins WI from Hispanic marketing agency Accentmarketing, where over the past 12 years she moved up to executive vice president/group director and managing partner.  In that time, she led Hispanic marketing efforts for clients including Farmers Insurance, Kaiser Permanente, So Cal Edison and Chevrolet, and expanded her responsibilities to oversee all business in the LA office.  Prior to that, Rivera served in account and management supervisor positions at Muse Cordero Chen & Partners and Enlace Communications, two agencies with pioneering roles in multicultural marketing.

Alice Rivera’s experience helps to fuel her passion for the kind of work that WI stands for across all segments as we recognize the role that diversity — of ideas and of ideators — plays when it comes to innovation,” said WI co-founder Aaron Walton.

Walton noted, “Latinos in the US are a diverse and vibrant community of innovators and influencers, and our clients have seen our Hispanic marketing counsel in areas such as strategy, creative, media, promotions and public relations have a direct impact on results. We look forward to Alice taking a leadership position in this critical and growing area.”

Isaacson added, “Alice’s understanding of multicultural marketing, particularly the Latino segment, twinned with her client experience and knowledge of best practices, will help the agency to continue to innovate in the Hispanic marketing efforts of major brands.”

 

The case for Hispanic marketing just got (even) bigger. Yesterday’s executive order de facto increases the documented Hispanic population by almost 5 million consumers (95% of the undocumented population is Hispanic). While Obama’s executive order does not offer a permanent solution, it brings certainty and legality to millions of undocumented Hispanics. What are the marketing implications according to major players in the marketing and media space?

descarga (1)The U.S. will get its biggest immigration makeover in three decades in a step that is expected to eventually legalize some 5 million illegal immigrants. Any measure that makes it for the undocumented Hispanic population safer to live in the U.S. will have a positive impact on marketing. “I think the issue is that if the millions of undocumented come forward and instead of the U.S. Hispanic population being 17% of the overall population the percentage jumps closer to 20% we could potentially see an increase in advertising spending which we typically see right after census numbers are issued,” says Enedina Vega-Amaez, Vice President/Publisher of the Meredith Hispanic Ventures Group.
Enrique Arbelaez
, co-founder and partner of advertising agency XL Alliance, cautions that while “the reported Hispanic population numbers will increase, we have always worked with the assumption that Census numbers are underestimated by at least 10%+,” .

If instead of the U.S. Hispanic population being 17% of the overall population the percentage jumps closer to 20%, we could see an increase in advertising spending which we typically see right after census numbers are issued.

 

Categories Impacted

XL Alliance’s Arbelaez notes that the executive order also” brings higher income opportunities. Living under the shadows limits the jobs they seek. Now these jobs and services will be expanded as they won’t fear giving away information. Think all types of Insurance, Financial Services and any other service that require personal information.” As an example of an opportunity Arbelaez cites supermarkets who have “an opportunity to increase loyalty card programs growth, which Hispanics don’t register for due to fear of giving info.” Penni Barton, publisher of Al Dia Texas in Dallas, says that “most of these immigrants are already part of the economy, but having access to better job conditions might translate to an improved economic status, and potentially higher purchasing power. In the short term sectors like the legal counseling will see a constant trickle of customers that need representation to apply for this protected status. In the long term, we suspect that many of these immigrants will formally settle roots in their communities (thanks to the protection measure) and start buying homes, investing in higher education, and starting their own businesses. This is usually the case – legal certainty leads to stability and progress.” “We may see increased mobile/digital usage as this group of 5 million gets access to credit,”adds Lee Vann, CEO and Founder of Digital Ad Agency Captura Group.

Unfortunately marketers tend to stay in the sidelines because immigration reform is a divisive topic. I believe that if your company or industry is reaping the benefits from Latino consumption sales then you should take a stand to show gratitude and gain the loyalty of this desirable consumer.

 

Increase in Spanish-dominant Share

descarga (3)The addition of almost 5 million documented Hispanics to the population also means that the Spanish-dominant share of the Hispanic population will increase and somewhat counterweight the growth of the English-dominant population. Al Dia Dallas’ Penni Barton notes that “in markets like Texas and other border states the majority of the potential beneficiaries of this measure are Spanish-dominant Hispanics.” “After all, the nature of a Hispanic immigrant is that Spanish is their first language,” says Enrique Arbelaez from XL Alliance . He cautions, however, that the media consumption habits of these Hispanics  may not necessarily change because of their new legal status.

Lucia Ballas-Traynor, Co-Founder & EVP, MamásLatinas, suspects that the majority of the undocumented immigrant population is Spanish-dominant. However, she claims that “every Latino has been affected by the inaction around immigration reform. Most Latinos have a friend, family member, neighbor, colleague or employee who is undocumented. Our extended definition of familia means it affects Latinos of all acculturation levels.” Ballas Traynor adds that “until undocumented immigrants receive long term legal status I don’t think their media consumptions habits will dramatically change. If their legal status changes permanently then I think digital media – social, e-commerce and other channels will see a greater degree of participation as they come out from the shadows.” Similarly Captura Group’s Lee Vann notes that “Of course these immigrants will have access to better jobs, loans and be able to travel more freely which will have a positive impact on the economy, if you think about it, the 5 million undocumented immigrants have been integrated into the economy, consuming content, viewing ads and purchasing products.”

 

Caution: Not permanent

It is important to take into account that Obama’s executive order is temporary in nature and not really a long-term comprehensive plan. Says Al Dia Texas’ Penni Barton: “While it lends a helping hand to some, it is not a comprehensive solution to the general issue of illegal non-authorized immigration.”

Mama’s Latinas Lucia Ballas-Traynor agrees with Barton, “until we have long term and comprehensive immigration reform I don’t think there will be a significant impact on Hispanic marketing. President Obama’s executive action is shielding undocumented Latinos from deportation and providing temporary legal status which will allow Latino families to remain united. However, his plan does not seem to provide a pathway to citizenship and most importantly no entitlement to federal benefits such as health care. I hope his move promotes Congressional action around the issue of immigration reform which has been at a standstill for decades.”

 

Obama’s Executive Order
Under the plan announced last night by Obama, undocumented immigrants who have lived in the United States for five years or more, have children who are citizens or legal residents, formally register, pass a criminal background check, and are willing to pay their “fair share” of taxes will be able to stay in the country without fear of deportation. The rules could impact up to 5 million of the more than 11 million undocumented immigrants believed to be residing in the U.S. The crux of the White House’s plan is to protect undocumented parents of children born in the US from deportation. It would also expand a program created by the administration in 2012 called Deferred Action for Childhood Arrivals, or DACA, which allows young people who were brought into the country as children to apply for deportation deferrals and work permits. The plan would extend eligibility to people who entered the United States as children before January 2010 (the cutoff is currently June 15, 2007). It would also increase the deferral period to three years from two years and eliminate the requirement that applicants be under 31 years old. About 1.2 million young immigrants are currently eligible, and the new plan would expand eligibility to approximately 300,000 more.

XAVIER TURPIN Director of Multicultural Marketing Dunkin' Brands Inc-1It is budgeting season again! How much should be allocated to multicultural and is it a struggle or even relevant? Portada talked to Xavier Turpin, Director of Multicultural Marketing at Dunkin’ Brands Inc on these and other issues facing the multicultural and overall marketing sector.

Portada: You mention that Dunkin’ Donuts has approximately 100 marketers, all of them working on the Total marketing approach. Can you describe what they do a bit more and how they differentiate between themselves? Where are they located?

Xavier Turpin: “Our Total Market Practice empowers each of our marketers to look at the consumer market in its entirety, and consider its diversity and various segments.  We have marketers both at our corporate office in Canton, MA and based in field offices across the country.  Their responsibilities vary based on their functional area of expertise, including new product development, research, brand marketing, advertising, media, digital, mobile, social media, field marketing, etc.”

Portada: How do you work on having these 100 marketers incorporate the Hispanic and multicultural marketing objectives into their work?  

Xavier Turpin: “We have an inclusion strategy at Dunkin’ Donuts.   The Hispanic and multicultural marketing objectives at Dunkin’ fall from our core corporate strategy where brand objectives are established, various consumer insights are incorporated, plans and tactics are developed and they are then executed.”

Portada: Now is budgeting season. What challenges do you have to overcome in terms of allocating a reasonable amount of marketing and media budgets to the Hispanic market?

Xavier Turpin: “For us, multicultural marketing is a business imperative that will continue to see investment growth. However, the Quick Service Restaurant (QSR) industry is highly competitive and there are a number of strategies that demand investment to maintain our leadership position.  So, the challenge is finding the right investment balance.   ROI on multicultural spend helps us with the rationale.”

I never look at multicultural budget development as a mathematical exercise.

Portada: What advice would you try to give other multicultural marketers at other major companies in terms of question 3?

Xavier Turpin: “I never look at multicultural budget development as a mathematical exercise – meaning following standard guidelines of “X” percent of growth across different functional areas.  First, we develop a consistent messaging and promotional strategy that makes sense for our multicultural consumers. Secondly, we review the base budget and work one-on-one with each marketing group to develop the best program and determine the right level of support.”

Portada: Many QSR’s have introduced special value menus, to target the value buyer, to some extent particularly the Hispanic guest. Is Dunkin’ Donuts undertaking a similar strategy?  If, yes, which and why, if no why?
Xavier Turpin: “We feel our value proposition of serving high-quality food and beverages in a fast, friendly environment at an every-day great value resonates with all of our consumers.”

Portada: In terms of Dunkin’ Donuts visits by Hispanics, do they under or over index versus the rest of the population?
Xavier Turpin: “We are unable to disclose this information.  I can tell you that we are very pleased with our Hispanic marketing so far, and continue to expand those efforts as a percentage of total.”

Portada: What plans do you have for 2015 multicultural marketing and advertising?
Xavier Turpin: “We have an exciting plan for next year.  Broader culturally relevant communications,  great tasting products and fun and engaging promotions.”

The AHAA has released preliminary findings on a new study about the Hispanic community with different marketing approaches to mining growth from Hispanic and multicultural segments. The results are based on 321 online surveys of marketing professionals from client-side, general and multicultural specialized ad agencies, media buying agencies, public relations and consulting firms.

Results

Nine in 10 executives believe the primary purpose of a Total Market Strategy is to balance effectiveness with efficiency. As such, two main models have emerged:

  • Integration, where Multicultural is integrated into every step of the business process and marketing execution to fully take advantage of growth potential across Hispanic, Multicultural, Millennial & Caucasian. With an integration strategy, marketers approach the market in totality as well as in segments to ensure that nuanced needs & opportunities are effectively addressed across 360 strategies-tactics.
  • Adaptation, where the same idea is adapted to different audiences using the same budget to reach all the segments. With an adaptation strategy, marketers utilize less targeting to particular ethnic consumers, leveraging broader strategies that will appeal to all in new multicultural marketplace.

Currently, 54 percent of advertisers are implementing some form of Total Market Strategy. Of these, half are applying it company-wide, while the other half is executing at a department level. More than half of marketers surveyed believe TM Strategy will ultimately benefit their company, while 44 percent are concerned about implementation.

Of the 46 percent not employing a Total Market Strategy, 15 percent are planning to implement in 2014. Nearly half are exploring various total market models but are unsure of its implementation in the future, while 36 percent have not thought of utilizing this approach and just 3 percent have decided against pursuing it altogether.

Selective across brands with Advertising

Companies are in various stages of implementing Total Market Strategy with the majority employing this approach for select brands (54 percent). More than a third has applied a Total Market Strategy across all company brands, and 15 percent are testing the concept on one brand. Few companies spread the total market function throughout the company with two out of three relying on brand champions or multicultural centers of excellence.

The bulk of Total Market Strategies are being executed in advertising with 84 percent in ad messaging and 78 and 65 percent across media buying and media planning respectively. Finally, between 43 and 65 percent of marketers also are employing Total Market Strategies across promotional, communication and digital vehicles.

According to the AHAA, 66 percent of the companies surveyed who are utilizing a Total Market Strategy, have reported incremental results in increased market share, efficiency, and revenue growth, among others.

While 27 percent are still testing and measuring, more than half of companies surveyed revealed they are various stages of expanding their total market initiatives.

Marketing strategies are under great scrutiny in response to the explosive growth of multicultural populations. As many companies seek to reconcile and recalibrate efforts toward multiple market segments, questions arise with regards to the potential of defining and addressing a Total Market Strategy.

To finish, the AHAA says that “However, the “Total Market” approach is largely misunderstood and is used as a catchphrase for various marketing strategies. The marketing industry is ripe for a more uniform definition of Total Market Strategy, and there is a tremendous need to continue studying this marketing strategy in order to share guidelines and criteria for proper implementation.”

Source: AHAA: The Voice of Hispanic Marketing