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What: Standard Media Index has revealed that ad revenue from Hispanic television networks remained flat at $2.1 billion during the full 2017-18 broadcast season.
Why it matters: The relevance of sports events such as the soccer World Cup can make an important difference in TV share. The FIFA tournament helped Hispanic TV remain flat; without it, the revenue fall from 2017 is clear.

 Standard Media Index has unveiled data for Hispanic TV during the 2017-18 broadcast season. According to SMI’s findings, ad revenue remained flat from the prior year at US $2.1 Billion. However, when equivalizing out the World Cup, ad revenue falls -5%. Telemundo picked up the largest gains from the soccer tournament, as it reportedly grew ad revenue by 16%, while Univision‘s ad revenue dropped 9% compared to the previous year.

“Results this season show the substantial impact that special events, like the World Cup and The Olympics, have in maintaining share for National TV,” said SMI CEO James Fennessy in a statement. “The World Cup managed to help Hispanic TV keep volumes at 2017 levels. When we back this out we see a fairly substantial fall in revenues for the just completed Broadcast Year.”

Network Breakdown

According to SMI’s data, the World Cup brought in US $122 million for Telemundo, bringing the overall revenue to US $647 million, which amounts to 16% YoY growth. The network also outbid Univision for the rights to the 2018 and 2022 World Cup.

Univision, on the other hand, saw a -9% drop in ad revenue this season. The embattled network has faced a tough year that included a carrier dispute with Dish Network and discarding plans for an IPO. Still, Univision is the largest Hispanic TV Network by volume. It brought in US $975 Million this year.

Market Share

SMI’s data shows that Univision decreased in market share from 49% in 2016-17 to 45% in 2017-18 season.  Telemundo gained market share from 26% last season to 30% this season.

Paid Unit Costs

Primetime demanded the highest commercial prices at an average of US $3,753. Overall, Univision, Telemundo, and UniMas charged the most of the Hispanic networks. The most expensive program this year was Copa Mundial de la FIFA: Homenaje al Campeón on Telemundo, which cost US $197K for a 30-second spot. That’s followed by Univision’s Premio Lo Nuestro 2018 at US $133K and Premios Juventud 2018 at US $113K.

Top Advertisers

Among the Top 30 advertiser subcategories, there were some significant swings in spend this season.  The top 30 subcategories make up 88% of the spend on the Hispanic Networks.  Hospitals & Medical Centers increased spend the most, by 71%.  Meanwhile, Department Stores decreased spend the most, by -57%.

Advertiser Subcategories with the Largest Increases in Spend During the 2017-18 Season, Among the Top 30 Subcategories

 

Advertiser SubcategoryYoY Increase in Spend
Hospitals & Medical Centers71%
Business Services67%
Skin Care46%
Miscellaneous Goods32%
OTC Medicines & Remedies27%

 

Advertiser Subcategories with the Largest Decreases in Spend During the 2017-18 Season, Among the Top 30 Subcategories

 

Advertiser SubcategoryYoY Increase in Spend
Department Stores-57%
Travel Services & Websites-27%
Specialty Retailers-27%
Motion Pictures-19%
Oral Care-15%

 

What: Azteca America, a U.S.-based, Spanish-language network wholly-owned by HC2 Network Inc., a subsidiary of HC2 Holdings, Inc. (NYSE: HCHC), unveiled its 2018-2019 programming line-up at its annual upfront presentation in New York City. We talked to Craig Geller, Executive VP, Network Sales, Digital, and Marketing, about what’s next for Azteca America this year.
Why it matters: Azteca America enters this upfront season on the heels of a recent acquisition by HC2 Network Inc., which provides expanded distribution and scale across its linear and digital channels.

As part of this year’s upfront season, Azteca America presented its programming for this year in New York City. Among their new offering, they will have a few original series including a reality show, updated findings from a recent Nielsen study, a network-wide initiative celebrating Hispanic women in the U.S., and the return of the Miss Universe competition to the network. Portada talked to Craig Geller, Executive Vice President, Network Sales, Digital and Marketing at Azteca America, to find out what’s next for their positioning after the HC2 acquisition.

Portada: Azteca America is now owned by HC2. In what way has Azteca America’s positioning/ strategy changed as a result of this?

Craig Geller: “Our positioning and our strategy of strength, stability and scalability have not changed. What has changed, is the ability to execute against that plan with a company that wants to bring valuable content, grow the viewership and solidify the organization’s competitive positioning for the changing media landscape.”

Portada: In your experience, how has the Hispanic marketing landscape evolved over the last years?

C.G.: “The Hispanic media landscape has changed in that today versus years ago, there are so many more choices for consumers. Choices used to be limited but this has evolved. Choice has led to change, change has led to opportunity and opportunity has led to growth.” 

Portada: What has been Azteca America’s role in this evolution?

C.G.: “Our role is to provide opportunity and choice not just to the viewer, but also to the advertisers. In addition, our counterprogramming strategy distinctly separates us from our competition and our ability to provide impactful solutions to advertisers has resonated and worked.” 

Portada: Which are the opportunities when targeting Spanish-speaking audiences in the U.S?

C.G.: “Anytime that you can connect with this viewer, you earn a loyal consumer. Data shows us that there is a tremendous opportunity to reach and connect with the U.S. Latina as well as with U.S. Millennials.”

Portada: Which are the salient features of Azteca America’s offering at the upfronts in terms of programming?

C.G.: “We will continue our counterprogramming strategy that has been a success for Azteca in past years. We want to provide our audience with the greatest in entertainment, from game showand reality series to scripted series and novelas, as well as news and sports, anywhere, anytime and on any screen.”

Azteca America is willing to take calculated risks that create opportunities for our advertisers and partners to engage deeper with our audience leading to growth.

Portada: What distinguishes Azteca America’s offering from its competitors?

C.G.: “Azteca America today is well positioned versus our competition to actually capture and grow the audience in that we can take the best of what TV Azteca in Mexico has to offerproduce our own original content and purchase content that has already run in Latin America and that has had proven success. This is our competitive advantage. Azteca America is willing to take calculated risks that create opportunities for our advertisers and partners to engage deeper with our audience leading to growth.”

Portada: Do you distinguish between digital (OTT) offering and linear broadcast offering when working with your clients?

C.G.: “Providing an audience to a client is agnostic to the screen. The difference is the way that agencies are aligned. Our offerings have to be defined because the way that the agencies look to purchase audience may be siloed. What that says is that not everybody is a video investment buyer. You may have someone who buys digital and someone who buys TV. More and more those people are being more aligned to just buy video, but today it’s not a one-size-fits-all in terms of how the agencies are structured to go out and buy video content.” 

Portada: Do you have programming around the 2018 World Cup?

C.G.: “As part of our programming agreement with TV Azteca, we will be airing “Pasión Rusia,” on Azteca America. In addition, our website will have a dedicated page to the global sporting event. Through our partnership with Mexico’s popular sports magazine, Fútbol Total and the contributions of EFE journalists covering the event, we will be able to bring the excitement and passion to our viewers this summer.

This is a prime example of how we continue to leverage our relationship with TV Azteca, providing a competitive edge.” 

Portada: What is the role of data analytics in Azteca’s programming plans?

C.G.: “Data science and market intelligence play an integral role in our programming strategy. Understanding the viewers’ journey, their tastes and desires in terms of content, is always going to be at the forefront of everything we do.” 

CNNE and CNNI held an upfront event in New York on Thursday, May 2, 2013.
CNNE and CNNI held an upfront event in New York City on Thursday, May 2, 2013. (Photo: Lorenzo Bevilaqua/CNN)

CNN Latino, the Spanish block programmed exclusively for the U.S. Hispanic market, has signed an affiliation agreement with KPDR Partners to begin airing on KPDR-LD 19 in Salt Lake City. The agreement calls for KPDR-LD to broadcast CNN Latino’s block from 3-11 PM and from 4-12 PM (MT).

Channel 19 is a low-power television station and Salt Lake City’s newest television station. KPDR, “K-Powder” broadcast free over the air on digital channels 19.1 through 19.6, serving the Salt Lake City Valley and the Wasatch Front. According to Nielsen’s 2012-2013 Hispanic or Latino TV homes Universe Estimates, the Salt Lake City market ranks 31st in the country with 95,370 Hispanic Households.

With the expansion into Salt Lake City, CNN Latino now reaches about 30% of U.S. Hispanic households, and according to svp and general manager of CNN en Español, Cynthia Hudson, the network “is in discussions with other affiliates in other Top 10 markets, and hope to make those announcements in the coming months.”

CNN Latino is already available in Los Angeles, New York, Orlando, Tampa and Phoenix.

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