A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
DAZN is entering the Brazilian and Latin-American market after securing media rights for two major European soccer leagues. According to SportBusiness, the OTT platform is trying to get the rights to Italy’s Serie A and France’s Ligue 1 in both regions, which are currently owned by IMG and BeIN Media Group respectively.
McDonald’s Germany is moving out of soccer and focusing on esports by ending its partnership with the German Football Association and building upon its relationship with esports brand ESL. McDonald’s first partnered with ESL in January to sponsor the national esports championship in Germany, the ESL Meisterschaft.
The Portada Brand-Sports Summit in Los Angeles on March 15, 2019 (Hotel Loews Santa Monica) will provide a unique setting for brand marketers to learn about the opportunities sports and soccer content offers to engage consumers in the U.S. and Latin America.
Boxeo Telemundois coming back to Telemundo Deportes on Nov. 16. The season premiere will feature Puerto Rican Jonathan “Bomba” Gonzalez and Mexican Juan “Pinky” Alejo battling for the WBO/NABO flyweight title. Rene Giraldo and Edgar Lopez will act as commentators alongside Abner Mares.
MLBowners are looking at a new television contract possibility with FOX Sports as well as a bespoke agreement with the OTT streaming service DAZN. The DAZN deal would see the platform negotiating a $300 million, three-year deal with MLB for in-game cut-ins.
A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
According to the NFL, the consumption of games on digital platforms has jumped 65% from 2017 through week four of the new season, with an average minute audience of 326,000 viewers per game window across different platforms. The biggest growth has come from fans streaming games on their phones, where the average audience is up 147%. TV ratings are also up on last season. NFL viewership among Hispanics has increased by 28% in the past five years alone, according to a 2016 Nielsen report.
AT&T Mexico has announced an agreement to become the official sponsor of Mexican Pacific League baseball team Tomateros de Culiacan. The current 2017-18 champion has close to half a million followers on social networks. The deal includes AT&T’s logo to be added to the front of the official Tomateros jersey and the team’s players will take part in a number of AT&T events.
Google has expanded its partnership with MLB. The deal will see Google Assistant, a virtual assistant powered by artificial intelligence, become the presenting sponsor of the American League and National League Championship Series. The tech company already has similar deals with YouTube TV and the MLB World Series. 31% of MLB players are Latino, according to ESPN.
Sugarlands Distilling Company is teaming up with NASCAR and Talladega Superspeedway, as the “Official Moonshine of NASCAR”. As a part of the five-year agreement, Sugarlands will gain rights to promote its moonshine at retail, on packaging and will host key customers and distributors at-track. According to 2011 data, 20% of NASCAR’s followers are multicultural fans, 9% were Hispanic and 8% African-American.
Under Armourlocked a five-year deal with NBA player Joel Embiid. ESPN reports that the deal will make him the highest-paid center for this type of partnership, and will see Embiid and Under Armour partner on branded footwear and apparel in addition to charitable initiatives in and around Philadelphia and in Cameroon.
ESPN is planning on launching espnW in Mexico. espnW Mexico will serve as the brand umbrella and power content initiatives to engage and inspire women across ESPN’s linear, digital and social platforms.
The Houston Rockets locked in a partnership withBilibili, the leading online entertainment platform for younger audiences in China. The Rockets are looking to expand their presence in esports, with Bilibili’s esports team, Bilibili Gaming and the Rockets’ esports squad Clutch Gaming taking part in a friendly game and Bilibili will become the official partner of CG.
A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
Doosan will be the presenting sponsor of the 2018 National League Division Series (NLDS). This is the brand’s second year MLB Postseason involvement, after sponsoring the American League Division Series (ALDS) last year. The brand will receive significant exposure across national broadcast and MLB-owned channels along with in-stadium brand integration throughout the series. “We are honored to be an official partner of MLB. Our partnership is nearly a year old, and we’ve seen those efforts help to build additional brand awareness and business opportunities for Doosan in the U.S.,” said Edward Song, Head of Doosan Infracore North America.
The NFL might be canceling its Sunday Ticket deal with AT&T-owned DirecTV. According to Pro Football Talk, the league is willing to cancel the US$1.5 billion extension deal it signed with the out-of-market broadcast provider back in 2014 to take the contract through 2022. The league has the power to cancel the arrangement as early as the conclusion of the 2019 regular season. NFL viewership among Hispanics has increased by 28% in the past five years alone, according to a 2016 Nielsen report.
The Phoenix Sunssigned a jersey patch deal withPayPal. With this agreement, PayPal becomes the official payment partner of the Suns, the WNBA Phoenix Mercury and Real Club Deportivo Mallorca, a second-division Spanish soccer team controlled by Suns Owner Robert Sarver. In addition, the Suns will make PayPal Credit available for season-ticket purchases. 31% of MLB players are Latino, according to ESPN.
Technology company Copia is pushing its partnership with the San Francisco 49ers by helping reduce food waste at Levi’s Stadium in Santa Clara, by delivering excess food to non-profit organizations and shelters. The technology company has redistributed over 26,000 pounds worth of quality food to the local community.
NASCAR presented a new augmented reality experience available via the NASCAR Mobile app, for fans to experience the 2018 Monster Energy NASCAR Cup Series Playoffs. Fans will be able to walk through virtual portals to experience the Playoffs’ most memorable moments in 360-degree AR. According to 2011 data, 20% of NASCAR’s followers are multicultural fans, 9% were Hispanic and 8% African-American.
Mediapro is preparing to launch a Spanish-speaking OTT streaming service dedicated to esports. Similar to Twitch the new platform is expected to go live before the end of this year. The channel will house live competitive gaming events and tournaments, along with a host of exclusive in-house content. According to hispanicgamers.com Hispanics expressed more interest in watching others play video games compared to Non-Hispanics.
A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
DAZN a new eight-year deal with sports events promotion company Matchroom Boxing to broadcast 16 live fight nights. The programming will be exclusively available to DAZN users in Canada. The first fight to be streamed as part of the deal will be the Jessie Vargas v. Thomas Dulorme bout on Oct. 6 in Chicago.
The Houston Rockets has named AntPool, a Chinese bitcoin company, as the official sponsor for the 2018/19 season. AntPool claims to be the second-largest bitcoin mining operation in the world and is a subsidiary of Beijing-based Bitmain Technologies.
UFChas announced a new multi-year licensing agreement with jeweler brand Bixler. The partnership gives Bixler the rights to manufacture and distribute UFC and MMA athlete-inspired jewelry in the United States and Canada, as well as globally via UFC Store.com. According to a Washington Post poll, 38% of mixed martial arts fans are African-American, and 31% are Hispanics.
Formula E has announced a five-year extension of its broadcast partnership with Mediaset. The agreement will see the Italian free-to-air broadcaster continue to show coverage of the global electric racing series through to season nine. “The results Mediaset has shown – along with their extensive programming of the ABB FIA Formula E Championship – is a testament to their ongoing commitment and we look forward to bringing all the action live to fans across Italy for a further five seasons,” stated Ali Russell, media and business development officer at Formula E.
Headphones brand AfterShokz has signed NASCARdrivers Bubba Wallace and Chase Elliott as endorsers in a deal that includes social media promotions and personal appearances. According to 2011 data, 20% of NASCAR’s followers are multicultural fans, 9% were Hispanic and 8% African-American.
The MLB Players Association announced a partnership with UMG Media Corp. to launch the first-ever esports series of competitions for Major League Baseball players. Both active and retired players will compete against each other in esports play. According to hispanicgamers.com Hispanics expressed more interest in watching others play video games compared to Non-Hispanics.
A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
NASCARpresented the Monster Energy NASCAR Cup Series Playoffs in Las Vegas. To celebrate the start of the sport’s postseason and engage fans, the festivities center around three major events: Monster Energy NASCAR Cup Series Playoffs Media Day; NASCAR Burnout Blvd Fueled by Sunoco, and a two-day Playoffs Party at Fremont Street Experience. According to 2011 data, 20% of NASCAR’s followers are multicultural fans, 9% were Hispanic and 8% African-American.
MLB and USA Baseballannounced a new high school baseball tournament designed to showcase some of the best rising seniors from Texas and California. “States Play,” co-hosted by the Texas Rangers, will center on a three-game series at Globe Life Park in Arlington, from Aug. 24-26. Each game will stream LIVE on MLB.com, and access to Globe Life will be free for the public. 31% of MLB players are Latino, according to ESPN.
Razer inked a strategic partnership to become the official phone and headset provider for Tribe Gaming, a top mobile esports organization in North America. The deal includes an eight-episode docuseries to be released by the end of 2018. According to a 2014 Think Now Research study Hispanic gamers buy and rent video games more often than Non-Hispanics.
One month after suspending their relation with Papa John’s, after the pizza brand’s founder John Schnatter made some racist comments, the New York Yankees have restored their partnership, and will sell its products again at the Yankee Stadium.
The NFL team Los Angeles Chargers announced telecommunications company Rokit as their official wireless partner. As part of the multi-year agreement, the firm also becomes the title sponsor of the team’s stadium, Rokit Field at StubHub Center.
NBA franchises owned by the Los Angeles Lakers, Brooklyn Nets, Atlanta Hawks and Minnesota Timberwolves will join its NBA 2K League esports competition in 2019. The four expansion teams will join an existing roster of 17 NBA teams which participated in this year’s inaugural 2k League season, which got underway in May and will conclude with its first ever finals event on 25th August.
What: Both Gerard Piqué and Alex Rodriguez have been in the news lately for bold and successful business ventures. Why it matters: These athletes are paving the way for other Latin and Hispanic athletes to recognize that they too can find financial success outside of their sport both during and after their playing days.
Kobe Bryant made headlines recently for his Oscar-winning documentary Dear Basketball, and he has since been lauded as the next great athlete to succeed in business ventures beyond their own sport. Kobe is following the trail blazed by fellow basketball stars Michael Jordan and Magic Johnson in this regard, but it should be highlighted that two Hispanic and Latin superstars have been making entrepreneurial headlines of their own: Gerard Piqué (@3gerardpique) and Alex Rodríguez (@AROD).
Piqué is showing that Hispanic athletes can also join the movement of athletes looking to become financial powerhouses.
Gerard Piqué: Soccer Star and Tennis Entrepreneur
Gerard Piqué is currently working on his master’s in business at Harvard University while also leading the charge to create the World Cup of Tennis, which will fill the hole that the Davis Cup leaves behind. Piqué is also a leader, writer, and ambassador of ThePlayers’ Tribune Global (@PlayersTribune) initiative and has multiple other investments and business ventures. Apart from these impressive initiatives, he’s taking FC Barcelona (@FCBarcelona) on the path towards winning an impressive double of LaLiga and Copa del Rey championships. The usual path for athletes’ financial success off the field has usually been to develop their brand and social media appeal as much as possible and then lock up endorsement deals that net them revenue for appearing in commercials. Though Piqué strikes these types of partnerships as well, he is bucking convention by seeking unique opportunities in the market to grow different businesses. This type of entrepreneurship is more associated with someone who has been trained in finance all their life, but Piqué is showing that Hispanic athletes can also join the movement of athletes looking to become financial powerhouses.
Rodríguez has piggybacked off of his successful investment firm A-Rod Corp to create space for himself on a channel that usually shows coverage of the New York Stock Exchange.
Alex Rodríguez: A New Type of Television Personality
Another figure making the most of his business instincts and intellect is Alex Rodriguez. He not only has garnered rave reviews as a host on MLB on Fox, but he is also the star and host of a new show on CNBC called Back in The Game. The premise of this show is that Rodríguezhelps former athletes regain a hold on their finances. His MLB on Fox position, in which he offers truly insightful commentary and meshes well with his high-profile co-stars, is more in line with jobs typically associated with former athletes: broadcasting, coaching, etc. The CNBC show, though, is a new example for retired athletes, particularly those who are Latino, to follow. Rodríguez has piggybacked off of his successful investment firm A-ROD CORP (@_ARodCorp) to create space for himself on a channel that usually shows coverage of the New York Stock Exchange. Rodríguez has used the money he earned from his mega-contract with the Yankees not only to invest in fruitful ventures, but he is showing athletes, regardless of background, that they can take an active, responsible role in their financial success.
When a Latin or Hispanic athlete joins the ranks of the Billionaire Athletes Club, they will deserve much of the credit.
Inspiration for Other Latin and Hispanic Athletes
The biggest impact of athletes such as Piqué and Rodríguez will likely be seen years down the line. There will be a kid out there, though, in Barcelona, Miami, or elsewhere who will look at their examples and be inspired to not just work hard on their game, but also cultivate their mind and dream bigger than just ball. Motivation does not have to come from one type of source, but there is something to be said for being able to look up to someone out in the world who looks like you, sounds like you, and is breaking barriers that you did not know were possible. Whether it is through their own ventures or the inspiration the path they carved for others, when a Latin or Hispanic athlete joins the ranks of the Billionaire Athletes Club, they will deserve much of the credit.
Check out the stars of Portada’s Sports Marketing Board, who will meet at Portada Miami on April 18-19 to discuss various topics related to the future of marketing and innovation in sports. Register now!
What: Seven in 10 of the 58 million U.S. Hispanics now use a smartphone, and more are bypassing desktop and laptop computers completely in favor of tablets and mobile. Why It Matters: With some help from their expertise in Hispanic mobile behavior, mobile ad network Adsmovil topped the latest comScore Mobile Metrix® in both the Hispanic Mobile and Total Mobile Audience reach categories. Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly? And what does a Hispanic adnetwork’s continued success with total audiences say about the key role that Multicultural plays in any mobile campaign’s success?
Since 2000, Hispanics have accounted for more than half of the population growth in the United States: According to the Pew Research Center, the number of Hispanics in the country reached 58 million in 2016. And with seven in 10 U.S. Hispanics now using a smartphone, this means that advertisers hoping to win in the United States must prioritize reaching this dynamic and tech-savvy demographic.
More and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s walled gardens.
“Taking into account that Hispanics are heavy mobile users and even use their mobile devices as their primary access to the internet, we always include mobile in all our communication strategies. In fact, we always recommend clients having a mobile-first approach when implementing any digital campaign,” Gonzalo del Fa, President of GroupM Multicultural (photo)asserted.
With this in mind, ad network Adsmovil launched Programmatic Mobile Hispanic solutions in 2015. In recent years, the network has become a leader in Hispanic targeting, coming up with award-winning programmatic creative and location-based targeting initiatives informed by a thorough understanding of their clients’ targets. And now, October 2017 data from ComScore has Adsmovil coming in at the top of the lists of Total Internet and U.S. Hispanic reach for Mobile:
Mobile Metrix Key Measures
Total Unique Visitors(000)
Total Internet(total audience: Mobile)
Adsmovil Network-Potential Reach
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
H Code Media
SOURCE: U.S. Hispanics Mobile Only, Comscore, October 2017.
Total Unique Visitors(000)
Total Internet: Hispanic All: (Mobile…)
Adsmovil Network-Potential Reach
H Code Media
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
SOURCE: Total Audience Mobile Only, Comscore, October, 2017.
The voices demanding alternatives to the “duopoly” of Facebook and Google are growing louder, suggesting that Adsmovil could emerge as a leader at just the right time. While Google and Facebook took over 77% of the US$12 billion-dollar increase in global online ad spend in 2017, more and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s “walled gardens.”
AdsMovil Credits Success to Unique Understanding of Hispanic Behavior
In today’s landscape, marketers are being forced to reckon with the fact that consumers cannot be reduced to simple profiles determined by gender, age, and ethnicity. AdsMovil’s targeting solutions are focused on helping advertisers reach Hispanic users, looking at mobile users through an ethnographic lens that identifies specific Hispanic audiences according to the following factors: generation, acculturation, language and country of origin.
Hispanics’ acculturation levels lead to different attitudes toward language: those that are acculturated were typically born in the United States, prefer to speak in English, and can “toggle between Latino and American culture.” They are typically tech-savvy and have at least a high school education. Non-Acculturated Hispanics may or may not have been born in the United States, may have immigrated recently and typically hold a high school degree or less.
The benefits of understanding and appreciating these drivers of Hispanic mobile behavior make all the difference, pushing Hispanic marketing shops like Adsmovil at the top of Total Audience measurement on comScore’s Mobile Metrix in October 2017.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic. “Mexicans have different taste and buying habits than Dominicans or Argentinians. Adsmovil helps you deliver more effective media because we realize the differences and can target more appropriately. As a result, you will have better-performing campaigns,” said, Adriana Daantje, Global Product Director at Adsmovil.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.
Acculturation, Generation, Language, Country of Origin Key Factors in Determining Hispanic Behavior
In focusing on factors like acculturation, generation, language, and country of origin, Adsmovil can create targeted solutions for profiles of users with very distinct behavioral patterns: For example, non-acculturated Latinos are less comfortable using technology and slower to adopt new devices and functions, tend to use older mobile devices, and often have their browsers set in the Spanish language. They also consume more Spanish-language content, often from their countries of origin.
Mobile use among US Hispanics also varies greatly based on generation, as first-generation Hispanics are not only more likely to speak Spanish, but also more likely to look for online content in-language, and to browse ethnically relevant news, entertainment and food content. Hispanic Millennials, on the other hand, care more actively about technology and “want to stand out and be noticed,” according to Adsmovil. While they incorporate many Hispanic music, family, and culinary traditions, they are more open-minded than older Hispanic Americans, and tend to evolve with the rest of the younger Millennial Americans in terms of political and cultural beliefs and practices.
Adsmovil’s key differentiator is how it builds and identifies audiences within the Hispanic community based on the content that Hispanics consume (language, keywords, context), instead of relying solely on targeting via location, app install or purchasing history. It has direct relationships and preferred access to Hispanic premium publishers offering qualifying traffic, and offers 100% SOV, and sponsorship and content integration opportunities with exclusively Hispanic publishers.
What:Sprint and T-Mobile continue to drop hints that they will indeed merge, with the latest rumors asserting that T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, with Sprint’s SoftBank Group Corp controlling 40 to 50 percent. Why It Matters: Aside from reshaping the mobile landscape through combining two of its largest players, how would the merger affect major (and minor) carriers’ ongoing battle for the loyalty of Hispanic consumers?
Rumors about a possible merger between third-largest US wireless carrier T-Mobile and fourth-largest Sprint have intensified as unnamed sources come out to drop hints about how the deal would look.
On Friday, Reuters cited unnamed sources that claimed that while T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, SoftBank Group Corp, which controls Sprint, would come out with 40 to 50 percent ownership.
A brand shaped by its focus on innovation and offering new kinds of value through mobile technology, T-Mobile has been targeted for merger deals by both Verizon and AT&T, the first and second-largest carriers in the country, in the past. With its focus on offering flexible, low-cost plans that appeal to Hispanics, Sprint could offer T-Mobile a deeper reach into this key growth market while the new company chips away at Verizon’s pricing advantage.
For Mobile Carriers, Hispanics Are Key to Growth
The numbers don’t lie: According to Nielsen, there are 56 million Hispanics (and counting) in the United States, and 72% of them own a smartphone (10 percent higher than the national average).
And so it is no surprise that both T-Mobile and Sprint have made Hispanic marketing a priority in their own way. According to Ad Age, as recently as 2013, T-Mobile ranked seventh among the top 10 advertisers to Hispanics, with $98.7 million spent on Hispanic marketing alone in 2013 compared to Sprint, which came in at #18 on the list spending $68.6 million.
But when Bolivian Marcelo Claure took over as CEO of Sprint in 2014, things began to change. It started with him starring in a Spanish-language Sprint commercial on Univision during the Latin Grammys broadcast that November that opened with him saying “Hola, soy Marcelo Claure.”
From there, Claure went on a hiring spree to create a team capable of leading Sprint’s battle for the Hispanic market. He started by hiring Manuel Campos, the T-Mobile account director at Hispanic agency Conill, as Hispanic marketing director for the company, and a few months later, Claure hired current marketing chief, Spaniard Roger Solé, who came to Sprint from TIM Brasil, Telecom Italia’s mobile operator in Brazil, where he was CMO.
Sprint’s Hispanic marketing strategy was to give the demographic an option that was built for their preferences and behavior: For just $100 a month, a Sprint family plan included 20 gigabytes of data. Sprint’s Boost Mobile division also released rate packages custom-designed for Hispanics: one combined calling and unlimited messaging from the U.S. to Cuba and was offered exclusively at Boost Mobile dealers in the Miami area.
In the meantime, T-Mobile launched Univision Mobile, which offered customers monthly plans that include 100 minutes of international calling to countries in Latin America and unlimited text messaging to phone numbers in more than 200 countries around the world. The service has since been absorbed into the Ultra Mobile service but was the first in a number of ambitious moves by the brand to capture this key demographic.
Merger Will ‘Coalesce Their Hispanic Efforts’
Tru Multicultural’s founder and CEO Yousef Kattan, whose past clients include T-Mobile, added that the mere amount of data they will be combining will “create an environment of intelligence” that will allow the combined company to be “smarter, efficient and ultimately more effective will be sizable.”
We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space.
“We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space,” Kattan added.
Mario Carrasco, Co-Founder and Principal of ThinkNow Research, highlighted that “Sprint has been focusing on targeting the Hispanic market seriously since 2015,” and that “their main rival in this space has been T-Mobile.” As the Hispanic demographic has been key to their battle for the third spot, Carrasco asserted that their unique strengths will complement each other with regard to Multicultural. “This merger will coalesce their Hispanic efforts by combining Sprint’s low-cost plans with T-Mobile’s branding will lead to a more effective Hispanic targeting effort overall,” Carrasco said.
Merger Will Make Space for Minor Carriers, Unconventional Services Popular Among Hispanics
One of the biggest questions surrounding the merger is how reducing the number of major carriers will affect the mobile landscape. With regard to the Hispanic market, experts seem to agree that the merger would create a unique window of opportunity for prepay segment, minor carriers, and unconventional mobile services, all of which are popular among Hispanic consumers.
Carrasco of ThinkNow predicted an increase in the adoption of simple mobile and TracFone, options that are particularly appealing to the Hispanic market. “Adoption of Wi-Fi phones is increasing, and unconventional services such as Google Fi will begin to take more of the market share,” Carrasco said.
Kattan added that prepay will likely continue to evolve and become a focus for major carriers trying to reach growing numbers of Multicultural consumers who prefer non-traditional mobile plans. “This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic,” Kattan said.
This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic.
Carrasco echoed that sentiment: “I believe these nontraditional services and carriers have more appeal to Hispanics who tend to adopt emerging technologies at a faster rate than the general population.”
With so few major carriers in the event that the merger occurs and is approved by US regulatory bodies, data and pricing wars would intensify as the “big three would fight even harder for these gross adds,” Kattan said. “Device offers will also get more competitive to help entice consumers to leave their current carriers.”
In the End, T-Mobile and Sprint ‘Are Going After Very Similar Segments’
Aligning the strategies of two large and complex operations with unique branding and identities like T-Mobile and Sprint is never a simple endeavor. “Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market,” Carrasco said.
Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market.
But their core values may be more aligned than we think. “Both T-Mobile and Sprint and their prepay services MetroPCS and Boost respectfully are going after very similar segments that value price first, but don’t want to sacrifice quality and flexibility,” Kattan explained. Aligning Verizon and T-Mobile’s core values? That would be more complicated, Kattan admitted.
In the end, both brands have unique advantages that should serve each other well as they grow. T-Mobile is a “game changer and innovator in the space; a brand truly built around the consumers’ needs that can provide value,” Kattan said. On the other hand, Kattan pointed to price, devices, and distribution as Sprint’s key claims.
If the deal goes through, an already evolving mobile market will be shaken up yet again, and Hispanic consumers will be key as carriers build strategies to adapt to the demographic’s quick adoption of new, alternative mobile technology and preference for flexible, price-conscious mobile plans.
Throughout all of the amazing presentations at #Portada17, one key question was brought up time and time again: As a marketer, how do we market ourselves? Is “Hispanic”-targeted marketing dying, and if so, how do we justify our jobs?
In the face of shrinking budgets and resources, it is more important than ever to be able to present the hard data and business opportunities behind Hispanic and multicultural marketing to your business partners as well as your own boss and co-workers. But it’s not usually the money itself that’s a problem—social media campaigns, for example, can be successful at any budget—but, instead, education.
The general perception amongst the #Portada17 crowd is that the “Hispanic” segment will only disappear in one of two ways: 1) nuclear war, and 2) when the “general market” becomes the Hispanic market. The idea that we don’t need to pay attention to Hispanics, or that they aren’t important to the growth of our brands, is dangerous to your bottom line.
The general perception amongst the #Portada17 crowd is that the “Hispanic” segment will only disappear in one of two ways: 1) nuclear war, and 2) when the “general market” becomes the Hispanic market.
According to the industry leaders at #Portada17, the same cultural values that resonate with Hispanics in bi- and multicultural marketing efforts also work to feed into and boost general market campaign results. The multicultural consumer is “part of your brand and part of the growth of it,” even for very “traditional American” brands if you do it right, according to Margie Bravo, Multicultural Marketing Manager, Nestlé USA.
Some of the best campaigns are those that resonate with Hispanic audiences without isolating others. The gold standard? Campaigns that welcome African-American, Asian, and other non-Hispanics (including the increasingly diverse “white America”) into the conversation. In a panel, Seraj Bharwani, Chief Strategy Officer at AcuityAds, mentioned one Hispanic-oriented ad that resonated with him because of the strong ties it showed between parents and their adult children who stayed close to home—a unique relationship that also exists in Indian (and, increasingly, Millennial) culture.
Setting aside the debate over total marketing, an integrated approach recognizes the rapidly shifting demographics of the U.S. Half of Millennials don’t fit in neatly to the traditional conception of the “general market”—that is, non-Hispanics. But as our panelists stressed, in order for total marketing to work, it must be done right.
Education is Key
Although Comcast is incredibly supporting of multicultural marketing efforts, earlier in her career, Marie Casimir Fallon, Director of Media Strategy & Planning at Comcast Cable Corporation, had to face pushback. To help resolve the issue, she helped develop an educational curriculum that broke down the numbers behind her ideas and showed why they worked.
To help resolve the issue, she helped develop an educational curriculum that broke down the numbers behind her ideas and showed why they worked.
One audience member asked during a panel about the “perfect curriculum” to use in teaching others about Hispanic marketing. Although it elicited a few chuckles, the question itself is on-point. In order to gain the support of your company, you need to teach them why what you do is critical. Once you have that, you’re free to “break the rules, and take a chance to make an exciting marketing plan” in the words of Joi Tyrell, the SVP Director of Campbell Ewald/Sociedad.
Today at Comcast, every employee goes through training that teaches them about the demographics of their consumers (including Hispanics), where sales are coming from (both on a demographic and regional level), and where sales can grow. The company’s proprietary software even breaks down how many Hispanics, African Americans, Asians, and other groups the company should have as consumers in any given area and for every given product.
But as Fallon pointed out, you don’t need to have this kind of expensive in-house technology to do a good job—you can work with the kinds of knowledgeable partners and agents you’ve met at #Portada17 who have these tools and can challenge you to do better.
you don’t need expensive in-house technology to do a good job—you can work with the kinds of knowledgeable partners and agents you’ve met at #Portada17 who have these tools and can challenge you to do better.
Another successful businesswoman pointed to the secret of her success as “turning off the crazy Latina … you can do that at home.” Although it feels like a small tragedy, the fact is that in order to convince a skeptical C-suite of the importance of Hispanic-oriented marketing, we have to speak their language.
Just like a campaign targeting Hispanics is stronger if the messaging is in Spanish (and takes account of the nuances of the language and culture), management responds to numbers. Don’t pitch your plan as “the right thing to do,” advised another speaker. But even the most mono-cultural C-suite will understand the bottom line (and if they don’t, that’s just bad business).
The key is to anchor yourself in hard data and become a teacher.
The key is to anchor yourself in hard data and become a teacher. Essentially, that’s what marketing is all about, isn’t it? Everything you do has to be driven by accurate market, consumer, and sales research. Otherwise, you and your team are walking blind. If you don’t know where you’re going, how can they, or anyone else, follow you?
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.
Margie Bravo, Multicultural Marketing Manager at Nestlé USA, explained during Portada’s 11th Annual Multicultural Advertising and Media Conference, on September 14, how brands need to embrace the multicultural consumer and understand how it is their responsibility to grow their brands organically.
During the The Future of Multicultural Marketing panel, Margie Bravo, Multicultural Marketing Manager at Nestlé USA, presented how the Swiss multinational is currently implementing sweeping changes to its marketing organization by incorporating multicultural insights into its marketing strategy, media, and budgeting for its billion dollar brands.
You really need to understand the consumer, and understand how multicultural consumers are part of your brand and part of the growth of it.
When talking to her, she explained how today growth is everything to the company, and how relevant the multicultural market is for that growth. As a brand, “you really need to understand the consumer, and understand how multicultural consumers are part of your brand and part of the growth of it.”
This is why every brand should include them in its marketing strategy. To do so, she continued, your best tool is analytics. “People don’t really understand where sales are coming from, and how each market makes you grow.”
People don’t really understand where sales are coming from, and how each market makes you grow.
Put short. She advises to “go for more because this [multicultural] market has a lot to give.”
What: Multicultural market research firm ThinkNow Research revealed its latest study, the ThinkNow Media™ Report 2017, which found that TV viewing habits among multicultural consumers are dramatically shifting. Why It Matters: The study found that 61% of Hispanics prefer Netflix for watching television programs (up from 46% in 2016 and 36% in 2015) and that one-third of total market anticipates streaming most or all TV shows in near future.
Multicultural market research firm ThinkNow Research’s latest study, the ThinkNow Media™ Report 2017, spoke to 1,261 consumers ages 18-64 (including a representative sample of U.S. Hispanics, African- Americans, Asians and non-Hispanic whites) regarding media habits, consumption, preferences and delivery methods.
According to Mario Carrasco, cofounder and principal at ThinkNow, there are “three main assumptions” that brands need to let go of: “that Spanish language broadcast is the golden ticket to Hispanic audiences; that millennials don’t consume Spanish content, and that cultural connections are more relevant than acculturation or generation.”
The report found that Hispanics, particularly Millennial Hispanics, are turning to streaming services for their TV viewing. According to the study, 61% of Hispanics prefer Netflix for watching television programs (up from 46% in 2016 and 36% in 2015). Additionally, Hispanics prefer to binge watch TV programs, with 60% viewing an entire season in one weekend.
How Surprising Are The Study’s Findings?
Interestingly, Millennials are increasingly selecting Spanish-language programs via OTT services. This may come as a surprise to many brand marketers. “We’re seeing this trend as a result of more options with Spanish language original series like Club de Cuervoson Netflix,” Carrasco said.
Lionsgate and Hemisphere Media have picked up on this trend, and recently announced a premium Spanish-language streaming service called PANTAYA. “This trend will continue and other content leaders need to get on board to provide Hispanic consumers with a way to connect with their culture and language,” argued Carrasco.
What do these changing preferences mean for brands that have traditionally invested significant ad spend in networks like Telemundo and Univision under the assumption that they are safe bets for reaching Spanish-dominant Hispanics? According to Carrasco, as streaming services become more popular among Hispanic audiences, marketers will likely begin putting more of their budgets into streaming services and online video for Spanish-language campaigns.
For brands, Carrasco argued, it will be key to begin advertising with Spanish-language programs before it gets expensive: “Getting in now is cost effective as prices have yet to reflect the ROI they represent and you can establish yourself now on streaming as an advertiser before it becomes more competitive,” he said.
This is not to say that Telemundo and Univision do not have their place in Hispanic targeting strategies: “Telemundo and Univision are both great at creating content and can partner with streaming services to provide Spanish language or culturally relevant content to be streamed exclusively on a platform,” Carrasco said.
Each fall, the USHCC hosts the country’s largest gathering of Hispanic business leaders: The USHCC National Convention. The Convention is held every year in a city that embodies the American entrepreneurial spirit and supports a thriving small business community.
This year, the Convention will be held in a truly global business hub. Dallas, Texas is home to a record number of Fortune 500 companies, including many of the USHCC’s corporate partners such as Toyota, American Airlines, AT&T, Comerica Bank and many more. It is also home to one of largest concentrations of Hispanic Business Enterprises (HBE) in America.
The USHCC will be “Driving America’s Business Future,” at the 2017 National Convention taking place from October 1 – 3 at the Omni Dallas Hotel. The gathering is an opportunity for business owners, corporate executives, entrepreneurs and community leaders to engage in targeted business matchmaking opportunities, as well as professional development and networking forums such as workshops, training sessions and roundtable discussions. Other notable Convention events include the Million Dollar Breakfast Club, which celebrates supplier diversity, the Chamber Awards Breakfast, HBE Elite Luncheon, Women in Business and Leadership Luncheon, and the Closing Gala.
Small business owners will benefit from attending the convention by making valuable connections with corporate representatives, other business owners and potential customers and investors.
Corporate representatives will be able to reach out to rising entrepreneurs and established small business experts, as well as cultivate lasting strategic partnerships with HBEs, chamber executives and thought leaders in policy, government.
The United States Hispanic Chamber of Commerce (USHCC) is the largest Hispanic business organization in America. It actively promotes the economic growth, development and interests of more than 4.2 million Hispanic-owned businesses, which together, contribute over US$668 billion to the U.S. economy each year. For nearly 4 decades, the mission of the USHCC has been to foster Hispanic economic development and to create sustainable prosperity for the benefit of all Americans. To carry out this mission, the USHCC advocates for five major public policy issues: access to capital, international trade and commerce, education and workforce development, immigration, and energy.
The United States Hispanic Chamber of Commerce (USHCC) is the largest Hispanic business organization in America. It actively promotes the economic growth, development and interests of more than 4.2 million Hispanic-owned businesses, which together, contribute over US$668 billion to the U.S. economy each year. The USHCC also advocates on behalf of 260 major American corporations and serves as the umbrella organization for more than 200 local chambers and business associations nationwide.
A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
DashBid is pleased to announce it is Verified by TAG (Trustworthy Accountability Group) and listed in the TAG Registry, to build a brand safe environment and further DashBid’s Engagement Spectrum, giving advertisers the ability to measure audience engagement in addition to standard audience segmentations, in an environment that they can trust as fraud-free. This verification follows the February appointment of a Brand Safety Director overseeing DashBid’s exchange to identify, assess and remove any risks and threats.
xAd, the global leader in location intelligence that drives sales, is giving marketers the power to hyper-target and better understand consumers in real-time with its combination of highly accurate location data and newly launched solution, Weather Triggering.
At their Upfront presentation in New York City, Hulu and Scripps Networks Interactive have completed a new distribution agreement that will see SNI’s U.S. networks included on Hulu’s new live TV streaming service.
According to a survey by Turn Marketing Platform, only 30% of brands use advanced viewability metrics, despite 57% of young agency staffers largely distrusting the metrics they are expected to work with. 28% of respondents under 30 years-old say viewability is a key requirement from the supply side. Almost six in every ten (57%) media agency professionals who do not wholly trust the metrics currently in use are under the age of 30.
According to research by Sublime Skinz, fewer outstream units are more successful in driving increased attention and delivering greater brand recall. The performance of these significantly outpaces traditional pre-roll, skippable video ads.
Ipsosfound that more than 80% of respondents report that innovative outstream units are the most appealing and effective video format, compared to other dominant video types, including pre-roll.
Video monetization technology platform Ooyala published a new report, “The Lifecycle of Content: From Production to Monetization,” in collaboration with Futuresource Consulting, a specialist research and consulting firm for media and entertainment industries. The findings show content providers will seek integrated video solutions to minimize costs, streamline processes and provide growth opportunities at every step in the video lifecycle.
Snapchat is reported to be pitching an ad format, “Snap Ads Max Reach,” that would be seen by all US users that access a section of the app that the company monetizes.
Business Insiderwill stop using Google’s ad server to generate advertising revenue and switch to one built by ad tech outfit AppNexus as part of a wider partnership.It spans both desktop and mobile inventory across display, video and native formats that can be sold either guaranteed, or programmatic.
In a new survey, WFA advertiser marketers talked about their love of online video. Eighty-nine percent of our sample said they were looking to increase spend here in the year ahead. 90 percent said that Viewability is a “major concern,” 72 percent said the same of ad fraud and measurement.
Business Insiderwill stop using Google’s ad server to generate advertising revenue and switch to one built by AppNexus.
Ad exchange Rubicon Project said it partnered with in-venue interactive music platform TouchTunes to make its audience available programmatically for real-time buying in a private marketplace. TouchTunes has 38 million unique visitors and is available in more than 60,000 social venues.
Latin music video network VidaPrimowill distribute its vast library of video content via music-related content distributor Music Choice.
Brazilian publisher group Estado has closed a deal with Teads for native video advertising on content portals Estadão Online, Paladar, E+, and Jornal do Carro.
Digital agency Pragma Communicationannounced a exclusive partnership with mobile marketing and branded content American company Hathway, and will now offer their services in Latin America in an exclusive deal.
IAB Brazilpublished an online guide about ‘Onboarding Offline Data’. The playbook is targeted to marketing professionals in ad agencies who work to ensure audience segmentation, focused on the local market.
TIM Brasil has launched TIM Geek, a new entertainment platform featuring exclusive content from Omelete, one of the main pop culture portals in Latin America.
Latin America’s largest newspaper and news site launches a paywall as a new way to monetize its quality journalism. It’s a sign of the times as more Latin American news publisher will launch paywalls in the coming year.
Clarin, Argentina’s most circulated newspaper, with a weekly circulation of 190,789 and weekend circulation of 433,525 has experienced a drop of 158,000 paid newspapers since 2013 when the weekly sales number was at 348,000. Clarin is the first Publisher in Argentina, with a population of 43,833,328 and internet penetration of 34,785,206 (79.4%), to launch a paywall, as well as Spanish-speaking Latin America, excluding Brazil.
On Monday, 24th of April, Clarin launches a metered paywall on their main site, www.clarin.com.ar, where users will be able to access 40 free articles per month, before being asked to subscribe to one of the two introductory offers, ARS$19,90 p/m or ARS$49,90 p/m.
According to Argentina’s newspaper association, ADEPA, for the past two years, Clarin has been tracking 1,3 million users on their reading behavior to determine the meter limit. However, in an article published by Clarin in 2016 it stated that the average user consumed 31 articles per month — so it seems that Clarin is clearly targeting the top 1% of its site visitors to convert them into paying subscribers — a very successful model that has worked for many publishers.
Brazil’s Folha de São Paulo, which launched the 1st paywall in 2012 in the Latin American region, originally launched with a meter limit of 20 articles, but quickly moved to limiting access to 15. Today, users can navigate and consume articles anonymously but are required to register after the 5th article with a cap on an additional 10 articles when registered/logged in, before being asked to buy a subscription. Folha has 150,000 digital subscribers and close to 400,000 print, digital or digital-only subscribers.
O Globo, another Brazilian news publisher launched their paywall in late 2013, had a meter limit of 30 articles for anonymous readers, with another 20 articles for registered users. O Globo has also moved to smaller meter limit of 5 and an additional of 10 articles for registered users. Additionally, if a user navigates in incognito mode, all articles are blocked. O Globo hasn’t recently released its number subscribers, but it’s less than 100,000 digital subscribers.
Latin American publishers are finally re-evaluating their digital business model.
If Latin America’s largest news properties can not build sustainable adtech business models, how will smaller publishers in the region make the adtech economics work for them? It’s a trend we have seen in the North American and Europe and it seems that Latin American Publishers are reaching the same conclusion — you can not compete and win against the Duopoly of Google/Facebook.
If Latin America’s largest news properties can not build sustainable adtech business models, how will smaller publishers in the region make the adtech economics work for them?
Being one of Latin America’s most visited News site, with 36.6 million unique browsers, Clarin’s launch of a Paywall is a strong indication that more newspaper groups in Argentina and Latin America will be launching digital subscription models, as people continue to consume news online, at the expense of paid print versions and low CPM’s that are controlled by Google and Facebook.
The next main challenge for Clarin will be to convert 1% of their traffic into paid subscribers in the following year or two, which would be 360,000 digital subscribers. Depending on their success, Clarin would then quickly move to grow their paid audience to 3% if not 4%, the key number to make the digital newspaper operation profitable.
One way to achieve the acquisition rate is to test and optimize the meter limit — something that the UK’s The Economist does extensively, even launching a 3 articles limit per week, a model that is proving to be very successful in moving from it’s 303,500 paid subscribers to its goal of doubling it’s paid subscribers profits in the next 5 years.
Text writen by Billy D. Aldea-Martinez, head for Latin America and Brazil for Piano, the world’s leader SaaS Platform that allows media companies to launch Direct Monetization models, such as metering and paywall solutions for digital content and user data analysis.
A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
Entravision Communications Corporation announced that it has become a member of the Interactive Advertising Bureau (IAB) trade association.
Accedo today revealed that it is behind the Watch AFL™ video streaming service that FOX SPORTS launched globally in early February across mobile iOS and Android devices, as well as Chromecast or AirPlay on Apple TV.
Portada‘s 2017 Online Marketing Guide is out! Download it for free and get the latest in opportunities and challenges in the industry, video ad market forecasts and video audience development.
Facebookannounced an update to WhatsApp that allows users to share photos and videos through the app’s status area that is also protected by end-to-end encryption.
According to Headway, advertisers utilizing their mobile advertising platform, Mobrain, are noting higher performance as well as greater protection against mobile app fraud with Mobrain’s Genius tool.
YouTubeconfirmed that it will stop supporting 30-second unskippable ads starting in 2018 so that it can focus on more engaging commercial formats.
Online video company Ooyalahas laid off about 14% of its total workforce amid a restructuring that will open up jobs focused on new product areas.
Cloud-native idea management and licensing company Wazee Digital announced a technology partnership with Paladin, the enterprise platform for next-generation media companies, through which they will will use Paladin’s Rights Monitor toolset to strengthen digital rights management (DRM) services on YouTube for key rights holders and content partners, including major college sports organizations.
According to AdColony in association with Millward Brown, videos that include subtitles were found to perform 9.9% better in brand awareness than those without.
Tinder announced an acquisition of Wheel, a video startup whose primary offering resembles Snapchat’s Stories.
Zoomin.TV announced that their Multiplatform Network (MPN) is now available in Brazil, including 500 digital influencers in the country on YouTube. According to the company, they sum up more than 30 million subscribers and 300 million monthly views.
Zoomin.TV also announced the launch of Zoomin Studios, a new division that will create innovative content for a global audience.
According to Kantar Ibope Media’s latest research, R$5.7bn (£1.47bn) was invested in digital media advertising in Brazil in 2016, while total ad spend in Brazil had decreased by 1.6% in 2016 compared to 2015.
According to Hootsuite, Brazilians and South Africans spend more time than any other country’s population surfing the web. Both spend about 5 hours per day online.
What: Multicultural marketers are regrouping (and doing some soul searching) as Donald Trump gets comfortable in the Oval Office. Why It Matters: Will brands embrace shy away from or embrace controversy in the Trump era? And will Multicultural marketers be able to protect their seat at the table, or will brands shift toward Total Market?
Donald Trump’s victory came as a surprise to many, and especially surprising was the fact that left-leaning Hispanic voters were unable to tip the election in favor of Hillary Clinton. Hispanic marketers, in particular, were left wondering what this meant about the demographic they thought they understood so well. With Trump in the White House, an already fragile industry is entering unexplored territory.
Trump Won. What Now?
In hindsight, it seems clear that marketers, the media, and the general population alike were too confident that Hillary Clinton would win the presidency. And as the shock wears off, we are left wondering why and how it happened, and whether Latino demographics are as predictable as we thought they were.
Latinos did not turn out to vote as many predicted they would, and a higher percentage voted for Trump than most anticipated. His anti-immigration talk was met with resistance, but in a country where a significant percentage of Latinos has been living legally in the country for generations, many did not necessarily feel that Trump was speaking ill of them when he talked about the danger of bad hombres. Others were drawn to him because of his opposition to abortion or a belief that he was less corrupt than Clinton.
Regardless of the true explanation, for marketers, the important question is: How does behavior in the voting booth translate into consumer behavior? Multicultural marketers may need to admit that in this case, they don’t have all the answers. What is certain is that Trump has not become any less controversial since assuming office, and many Americans are demanding to know where their favorite brands stand in such a heated political climate. Brands cannot hide for the next four years.
The fact that Trump won despite his openly aggressive tone toward the country’s largest minority group has many wondering how much Americans have truly embraced diversity. Multicultural marketers must take the lead in guiding brands that want to elevate Multicultural perspectives, but this starts with some soul-searching.
Unease in an Already Fragile Business
With a president whose rhetoric suggests a rejection of diversity, will brands pump the breaks on including Multicultural themes in their messaging? Speaking to Portada, a marketing professional from a multinational food manufacturing company that preferred not to be named predicted that depending on brands’ shoppers and how traditional they are, many may not wish to attract the attention that comes with political statements.
The insider continued to say that a Trump presidency would reveal brands’ true colors, and “separate the companies that are really serious about Multicultural from the ones that are not.” And many of the brands that embrace Multicultural will keep the tone positive instead of combative, she asserted, aiming for inclusive messages, “while the latter will probably keep some Multicultural in-market activation, but will back away from controversial messages.”
Multicultural is more fragile because its harder to demonstrate success, and there is less precision in metrics and more diseconomies of scale. Any major change in the mindset of brands, companies or the general environment has a greater impact on what we do.
As Multicultural agencies look for answers, one senses a general sense of unease in the industry. Roberto Siewczynski, the SVP and Group President at global marketing company Epsilon, explained that Multicultural “is more fragile because it’s harder to demonstrate success, and there is less precision in metrics and more diseconomies of scale.”
Any major event, including a polemic presidential administration, can affect the attitudes of brands enough to shift budgets towards other market activations and put agencies in a precarious position. Siewczynski continued: “Any major change in the mindset of brands, companies or the general environment has a greater impact on what we do.”
Education, Advocacy Are Essential
But others in the industry seem to be more optimistic, pushing for a continued effort to educate brands and colleagues alike on the importance of speaking to a variety of unique audiences and demographics. The marketing industry has made slow but steady progress in terms of prioritizing Multicultural audiences and themes, and those that have been working in this fragile industry do not want to see any of their work undone.
Suggesting that the industry should take an active role in encouraging brands to invest in Multicultural, Executive Vice President of Advertising Sales at Hemisphere Media Group, Inc. Lucia Ballas-Traynor highlighted the importance of continuing education, including a need for policy advocates within the industry, saying, “Our industry needs to get involved.”
The content, images, and rhetoric that our industry promotes must celebrate Latin culture and people and we must continue to educate everyone (and ourselves) on the issues and policies that affect the Latino community before we enter the discussion and take action.
Beyond considering Latinos as consumers, Multicultural professionals need “to be able to speak intelligently about them and to be part of an organization that focuses on advocating for our community.” Ballas-Traynor, who is on the Board at the Hispanic Federation, emphasized that the industry as a whole “must educate itself on the issues and policies that affect the Latino community before we enter the discussion and take action.”
In this sense, even the brands that want to steer clearer of controversy can “contribute to the conversation that Trump’s Presidency and his policies have generated on issues that affect the Latino community such as immigration and border security…in a way that is unified, productive and positive,” Hemisphere Group’s Ballas-Traynor said.
‘Be a Beacon or Go Into the Shadows’
If the Super Bowl was any indication, 2017 will see many brands embrace the opportunity to connect with Multicultural audiences feeling threatened by President Trump’s rhetoric. Companies like Budweiser, Google, Audi, and Airbnb all took clear stances on issues that have become central in President Trump’s first days, like the border wall with Mexico and gender equality.
Brands (and companies) are at crossroads, they have to decide if they want to be a beacon or go into the shadows when it comes to building meaningful and emotional connections with multicultural consumers.
“The Super Bowl was an interesting point in time when you think about what has happened,” Epsilon SVP Siewczynski argued. “Brands (and companies) are at crossroads, they have to decide if they want to be a beacon or go into the shadows when it comes to building meaningful and emotional connections with Multicultural consumers.”
Siewczynski added that we should wait and see how President Trump’s policies actually affect key demographics like Hispanics. In a recent piece, he argued that after Trump’s election, “labor-intensive segments that have large Latino participation” rallied. If Trump follows through on keeping jobs in America, the Hispanic American could end up with more disposable income and greater prosperity.
As Multicultural marketing professionals regroup after this unprecedented election, positivity is a welcome sentiment. And with sheer numbers on their side, Hispanic marketers will play a vital role in protecting Multicultural’s seat at the table.
What: Technology-based marketing company Headway has introduced NativeWay, the first marketplace for native ads on Spanish-language sites. Why It Matters: As programmatic in LatAm heads into what Headway’s VP of Product & Strategy Dario Diament calls its “second phase of evolution,” NativeWay will help advertisers connect their messages with targeted Spanish-speaking audiences.
Technology-based marketing company Headway, which has a significant presence in Latin American and US-Hispanic markets alike, recently introduced NativeWay, the first marketplace for native ads on Spanish-language websites. The platform makes it possible for advertisers to incorporate the concept of content marketing into Spanish-language advertising for the first time.
NativeWay allows advertisers to place highly customized ads into editorial space on Spanish-language websites, adapting each ad to the structure of the publishers’ sites. Advertisers can access Headway’s long list of publishing partners, i.e. sites and content creators, to make sure that their ads are placed on sites whose content is relevant and engaging to their target audiences. In this sense, the advertisement is both organic and interesting to the reader, and more likely to generate clicks and drive revenue.
Latin American Programmatic Entering ‘Second Phase’ of Evolution Driven by Native Ads
The concept of native advertising has been shaking up the US advertising market for some time now, as advertisers have embraced it as a way to transmit marketing messages through storytelling as opposed to traditional advertising distributed through standard banners and videos.
Dario Diament, Headway’s VP of Product & Strategy, explained that “Latin American programmatic is entering the second phase of evolution, past the basic understanding of
networks and audiences.” Nonetheless, he says, there is a “gap” in native advertising that has left clients searching for better ways to communicate with particular audiences. Headway decided it was the right time to “invest in developing a marketplace and find the right partners through contacting and educating the owners of websites and content creators,” Diament said.
To use the platform, advertisers can create one or various standard images with editorial intro texts. Then, Headway’s technology distributes the ads to hundreds of sites, where they are placed within the structure of the website. “Instead of banners, you are seeing a sponsored article or link to an interactive experience or video: something relevant in a relevant context,” Diament said.
Latin American programmatic is entering the second phase of evolution, past the basic understanding of networks and audiences.
Another plus is that the advertisers do not have to design a new set of ads for each site: NativeWay adapts the template ads to each advertising space as needed, cutting out the extra work associated with creating different ads for different formats and sites.
Educating Publishers on Native Advertising a ‘Process’
One of the most important factors behind NativeWay’s success will be educating the publishers of the Spanish-language sites so that they understand the benefits of partnering with Headway and venturing into the universe of native advertising.
“Publishers are used to creating sites with spaces for banners that they monetize, but when you offer them the opportunity to show content automatically, the biggest challenge is to change the paradigm of leaving spaces open on the site for advertisers,” Diament explained.
To use NativeWay, publishers do not have to modify their existing pages, but they do have to make the few technical changes necessary for any ad campaign and select where on the page they want the ad to appear. Another benefit is that publishers are not forced to pick traditional or native: they can use NativeWay while maintaining traditional ads like banners.
Publishers are used to creating sites with spaces for banners that they monetize, but when you offer them the opportunity to show content automatically, the biggest challenge is to change the paradigm of leaving spaces open on the site for advertisers.
And since the publishers sometimes feel a lack of quality control when it comes to whose ads end up on their sites, Headway goes out of its way to make sure that all of their advertisers are “first-class,” and assured us “there won’t be anyone selling some magic hair cream.”
NativeWay Compatible with DSPs
Headway works with trading desk and advertisers to help each client to find the most adaptable sites for its ads. In this sense, the platform is as versatile as it is exact. Diament highlighted that clients can target as specifically as they want: “When clients plan for programmatic, they can use various signals through segmentation, lifting or selecting sites where you want to appear or filtering by audience.”
It is also notable that advertisers can place their native ads using any programmatic platform. This is innovative because “the trend is to use traditional formats for programmatic: typically, programmatic does facilitate native ads,” Diament said. NativeWay ads can we bought programmatically through most DSPs.
So far, Headway is more than confident in the effectiveness of NativeWay, confirming that the ads consistently surpass CTR standards while ensuring that they are seen by people that care about them in a relevant context.
When done right, native ads have proven to generate high click levels and traffic because the reader is drawn into the experience offered through highly relevant content. “This is a very rich experience for publishers and advertisers to incorporate,” Diament concluded.
Diament says that Headway has “coordinated campaigns in the automobile, mass consumption and women’s categories,” and that the roll-out of NativeWay has been very encouraging.
With vast experience in both international and Spanish-speaking regions of Latin America, Headway is more than qualified to blaze trails when it comes to offering continuing innovation to the region and connecting Spanish-speaking audiences with relevant and engaging ads.
Check out our new round up for brand marketers, where you’ll find the most relevant new insights and research published over the last week. If you’re trying to keep up, consider this your one-stop shop.
Google, PayPal and WhatsAppwere named the most Meaningful Brands 2017 in Havas’s global study, which covers 33 countries, 300,000 respondents and 1,500 brands –which looks at brand performance and wellbeing. The study also found that 84% expect brands to produce content but they think 60% of all content created by brands is poor, irrelevant or fails to deliver. Only 40% of the world’s leading 1,500 brands produced content that meets requirements.”
Global brand strategy, design and experience firm Siegel+Gale announced the findings of the seventh annual Global Brand Simplicity Index. Among the findings: 64 percent of consumers are willing to pay more for simpler experiences and 61 percent of consumers are more likely to recommend a brand because it’s simple.
Googlehas been named the world’s most valuable brand by the Brand Finance global 500 report. This puts last year’s most valuable brand, Apple, in second place.
According to a report from digital platform Agency Spotter, agencies and design firms’ typical projects now range between $50,000 and $250,000 with the typical annual deals up to $20 million. 30% of decision makers at brands say they typically hire a partner within two to three months, 31% hire an agency within a month, and 39% say it takes them four or more months.
Makeup line bareMineralshas launched a new campaign to highlight the expansion of its foundation range to include 12 new shades, allowing the brand to better cater to a more diverse consumer base.
The National Association of Minority Automobile Dealers (NAMAD) and IHS Markithonored American Honda with the “Top Overall Ethnic Vehicle” DVL Award for automotive brands dedicated to driving sales leadership with Asian, Native American, Hispanic and African American car buyers.
An Oracle survey found that 34% of brands claim that their sales, marketing and customer service teams work completely independently of each other, leading to a lack of customer insight. 33% blame it on their current systems and technologies, while 30% say their corporate culture makes it tricky for sales and marketing teams to align priorities.
Facebook’s Q4 and full year earnings report found an 18% year-over-year increase in daily active users reaching 1.23 billion. 84% of Q4 advertising revenue came from mobile ads, up from 80% the same quarter last year. The tech giant’s mobile daily active users in December hit 1.15 billion, a 17% year-over-year increase.
L2‘s fourth annual intelligence report on social platforms found that Snapchat’s brand adoption rate grew by 50% between January and October in 2016, and that 64% of brands are now on the app.
Clutch’s survey, ‘Content Marketing Survey 2016, which spoke to 300 content marketers in the US about their objectives, strategies and metrics, found that 49% say brand awareness is the main goalof content marketing strategies followed by search engine visibility (30%) and lead generation (21%).
The MBLM Brand Intimacy 2017 Report, which looks at how brands resonate with consumers on an intimate and emotional level, ranked Apple, Disney and Amazon as the top-ranked intimate brands.
According to Millward Brown Digital’s2016 Hispanic American Auto Buyers Report, Hispanic American consumers account for $27.9 billion in registered new vehicle transactions, representing 11% of the total market, and annually, the Hispanic population in the United States grows by about one million people.
As the US-Hispanic demographic evolves and grows, multicultural strategists and media planners are faced with the challenge of connecting with an audience that cannot be defined by a single language or set of behaviors. How educated are agencies when it comes to awareness of the appropriate media mix for reaching today’s Hispanics? Are agencies hoping to reach them through the general market, or are they happy to continue making full use of the traditional options, Telemundo and Univision, especially now that programmatic makes it possible to conduct highly targeted campaigns across a variety of media? We talk to industry insiders to find out.
Spanish Language Not A Strategy Anymore
There is one definite conclusion among multicultural strategists: Spanish is not enough to reach U.S.-Hispanics, as the acculturated Latino, who often speaks more English than Spanish in their everyday life, is the fastest-growing group within the Hispanic segment. The question on the tip of many tongues is how to connect with young, well-educated Hispanic millennials.
While the general market may reach some of this segment, those campaigns “might reach them but they are not likely to connect or touch an emotion, so it’s a missed opportunity,” says Asten Morgan, Latina Media Ventures’ Executive Director of Integrated Media.
In the face of this challenge, some agencies and buyers simply resort to the big players like Telemundo and Univision. Morgan added: “I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.”
I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.
Others are sensing a need for greater education on who Hispanics are and where they can be reached. Lucia Ballas-Traynor, the EVP of Sales at Hemisphere Media Group, explained: “We need to come together as an industry and provide clients and agencies with best practices and guidelines on Hispanic TV buying.”
Part of her concern stems from worries that if this education does not take place, agencies will simply hope for the best in reaching Hispanics through the general market, since their go-to’s for this type of targeting, Univision and Telemundo, “are not meeting their total market objectives and can satisfy them using general market networks.”
Ana Crandell, Group Account Director at global media agency OMD Multicultural, also attributed a “hesitance to expand beyond the Univision and Telemundo’s of the world” to education, saying that it “really comes down to a lack of knowledge of the offerings available in this space,” and that “many marketers continue to think of the U.S. Hispanic media landscape as being limited to just a handful of players, which we know has not been the case for many, many years now.”
The acculturated Hispanic has certainly turned many marketing strategies on their heads. Zach Rosenberg, President of MBMG Media Group, offered an example of the firm’s experience with client El Pollo Loco: “It was clear that they were over-messaging to their Hispanic consumer set while not having enough of a presence in the general market,” he explained. “Our strategic approach was to recalibrate their media mix to include less Spanish Language programming as a larger percentage of Hispanic consumers are acculturated now than even 10 years ago.”
There is a hesitancy to expand beyond the Univision’s and Telemundo’s of the world.
But this was not an uninformed decision. “It should be noted that our multicultural expertise is what led us to this rationale and success,” Rosenberg reminded us.
Another industry insider, who preferred not to be named, defended practices that put a heavy emphasis on the big players: “I think that buying these two partners delivers significant reach of Spanish Preferred Hispanics (and at times can reach goals established by some clients),” but that “to be more holistic and well rounded in the approach it is good to include the other Spanish-language stations that may not deliver as high ratings but definitely provide areas that do not duplicate with Univision and Telemundo.”
Spanish-Language TV’s Transformation
So why aren’t Telemundo and Univision meeting their market objectives? Latina’s Morgan pointed out that they aren’t focusing on digital: “They are focused on their core businesses of television, and their digital properties don’t deliver Hispanics at scale.”
Ballas-Traynor asserted that when it comes to Spanish-language TV, “buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.”
Ballas-Traynor highlighted a few factors that she attributes to this transformation: a general shift to a ‘total market’ approach with a focus on “great buying efficiencies,” and a consequential “shift in buying responsibilities to general market investment/activation teams that have little to no understanding of Hispanic media, or of the audience profiles and content that differentiate these outlets.”
She also noted that agency fees for buying have been reduced across the board, resulting in a “greater emphasis on buying agencies that leverage their clout with fewer, bigger media partners.” She asserted that “budgets for accounts that are active in Hispanic are flat at best.”
While some may see it as an issue related to a lack of education in media buying, our anonymous industry contact believed budgets are a significant issue here: “I think sometimes the media buying community can be misinterpreted, because they do understand that there are others S-L stations that bring value to campaigns. However, the reality is that advertising budgets can be challenging these days and it’s important to secure a strong base media buy to drive sales.”
Spanish-language TV buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.
Nonetheless, education appears to have a significant role in fixing this conundrum. Multicultural strategists like Ballas have encountered “a lack of resources and multicultural expertise” that is made worse by the fact that there is such a wide variety of media options that buyers end up doing “fewer and bigger deals with less players.”
And once clients and buyers have decided who that small group of players will be, they often resist change, funding “the same programs year over year with the same players, rather than adapting their plans to incorporate other important networks, regardless of performance.”
For this reason, many believe it is important that entities like Morgan’s Latina Media Ventures, which has “always focused on the acculturated Latina,” exist. Their DSP platform claims to do a better job targeting Hispanics in English or Spanish using first party data from their two owned and operated sites to build better Hispanic audience profiles. Then, third party data is brought in “to ensure we aren’t solely relying on sources that aren’t dedicated solely to the Hispanic demo.”
Disconnect Between Multicultural Strategy, Planning
Ballas-Traynor was clear about her firm belief that the industry must update its approach to Hispanic targeting, asserting that top 50 Hispanic advertisers probably only do Upfronts with a few different media a year.
“They buy ‘bundles’ which include online, cable and other assets. Perhaps a dozen go deeper than Univision and Telemundo as part of their media mix (mostly partners that they have worked with over the years). And a handful, at most, are adding any ‘new’ networks,” Ballas- Traynor explained. “As you can imagine, this is very frustrating because we know that the buys for those same accounts go ‘deeper’ and broader in terms of media selection in the general market.”
Another large problem is a growing disconnect between multicultural strategists that do understand the Hispanic market, and the general market activation teams who handle Hispanic network investment, that do not. Ballas-Traynor expressed disappointment that many of the activation teams have “little understanding of the differences among the various Hispanic origin groups, the content that resonates most, who the broadcast versus the cable outlets and sometimes who the measured players are.”
Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.
It is not uncommon for clients to have a very clear understanding of the consumption patterns and demographics of a key segment, how it differs from others within the Hispanic category, and what markets drive their purchases. But activation teams may not be as informed as the client or the multicultural strategist, and that can be a great detriment to the effectiveness of the campaign.
iHeartMedia is one of the alternatives whose assets might not all be digital, but it claims to reach 91% of the U.S. Hispanic population on a monthly basis through more than 100 stations that have significant Hispanic composition such as LA’s KIIS and KTU in New York City, who have a 50 percent and 40 percent Hispanic composition, respectfully.
Plus, the buyers can’t be the only problem. According to Morgan, they are just “the tip of the iceberg,” because “agency personnel are sitting on the sidelines using their own services,” claiming that they can only use internal platforms, “which are easier, safer and often less effective.” It may just take these agencies losing a client for change to occur: “until a change agent comes along or they lose the account, they move at glacial speeds.”
Programmatic, Scalable Options Help Engage Hispanic Audiences Off and Online
iHeartMedia’s President of Programmatic and Data Operations, Brian Kaminsky, highlighted how iHeart Media
takes advantage of its wide array of on and offline assets to help brands engage Hispanics: “We have seen almost universal interest in our platform from the agency community who are interested in efficiency and new ways to evaluate a traditional media, and from clients who’ve made an investment in their customer data platforms,” Kaminsky asserted. “Being able to incorporate broadcast radio, given its massive Hispanic reach, into audience focused plans is appealing because of the high ROI it offers relative to digital.”
Regarding programmatic’s influence, Kaminsky said: “Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.” He elaborated, explaining that they created a programmatic solution for broadcast radio “to meet the shift to audience based buying and planning spurred by digital media.”
His team collects audience insights through merging data from their digital platform, social networks and third-party data sources, which allows them to “offer marketers the same type of audience targets that they are buying from connected mediums like digital, including an audience that is made up of people with an affinity for Hispanic culture.”
And the insights become actionable through their proprietary platform, which uses a planning algorithm and cloud-based networking of their radio inventory to optimize plans. “This allows us to identify very specific and highly desirable audiences at the scale that only radio can provide,” he concluded.
Crandell, of OMD Multicultural, agreed that programmatic has had a significant affect on Hispanic targeting: “I find that most successful strategists that work within the US Hispanic space very much see the value of this vehicle and, most importantly, have been able to identify its role within the broader marketing mix.”
Crandell also noted that in her experience, it has been important to remember that programmatic should be incorporated into the strategic level, not just buying and execution: “If the use of programmatic is only executed (and decided upon) at the buying stage, marketers stand to miss out on perhaps the most valuable aspect of this vehicle – that being its ability to deliver extremely beneficial learnings on the target, as they are based on actual user behavior,” Crandell explained.
Data Changes Everything, But Is It Accurate?
Some industry insiders are actually worried that programmatic, with all of its data, may be misleading agencies. “It’s tough now, because programmatic has made it easy for general market media properties or agency trading desks to stake a piece of the Hispanic pie courtesy of an algorithm,” Morgan lamented. “Now they can scientifically state how their algorithm reaches Latinos.” But is just reaching Latinos enough?
“We don’t doubt the capabilities, but there is reason to doubt the accuracy of hitting the target, as their targeting foundation is built on third party data sources that aren’t the most accurate,” Morgan noted.
One thing is certain: marketers are at a crossroads, and the first step in the path to truly reaching Latinos is accepting the complexity of their behavior and preferences, something that the industry has yet to accomplish.