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Trump Effect could be positive for Hispanics; Honey Maid profiles Dominican immigrant family; Gannett downsizes; and Clinton ponders Latino campaign strategy.

The Trump effect

Yeah, he talked trash about Hispanics and made people very mad. But you know what? He also got more people to, um, notice Hispanics. And that includes general-market media. Publications including the Business Insider, International Business Times, and the Baltimore Sun (which covered Honey Maid’s “4 de Julio” campaign as part of the larger story), as well as usual suspects like the Yucatan Times, ran articles countering Trump’s egregious remarks by making the same points that Hispanic media outlets and agencies have been making for a long, long time: $1.5 trillion market + 17.1 percent of total U.S. population = important demographic. We told you so!

Honey Maid is sweet on Hispanics

“4 de Julio” is one of a new set of TV spots for Honey Maid, the brand that Mondelez International relaunched two years ago. It focuses on the Gomez family, immigrants from the Dominican Republic, talking about what it means to be American. According to Co.Create, along with the 30-second TV spot, the brand made short documentaries profiling three of the families featured in the ad. The campaign from Droga5 extends the #ThisIsWholesome theme, which aims to showcase American diversity by featuring same-sex parents, biracial couples and blended families.
[youtube https://www.youtube.com/watch?v=tsxFM_P5cr4&w=560&h=315]

Sell Clinton like Coke

HillarySpeaking of general market pubs covering Hispanic issues, BuzzFeed ran an article on a potential Hispanic marketing strategy for the Hillary Clinton campaign. BuzzFeed reported, “The campaign is said to be keeping its options open for talent, looking beyond Hispanic political firms that have been brought on for this work in years past to, as an example, ‘go get the firm that does Latino advertising for Coca-Cola,’ said Andres Ramirez, a 20-year veteran Democratic strategist who was part of the local meeting in Nevada.”

BuzzFeed reporter Adrian Carrasquillo spoke to several Hispanic marketing consultants, as well as Hispanic political consultants to get their views on how Hillary should get with Latinos.

Gannet is downsizing

Or maybe we should call it right-sizing. The media conglom spun off its newspaper properties under the Gannett rubric. Now, Tegna Inc., the digital and broadcast company that split from Gannett, is unloading its giant McLean, Va. headquarters complex. London-based Tamares Group will buy the complex and lease part of it back to Gannett. In June, Gannett completed its acquisition of the Texas-New Mexico Newspapers Partnership, and CEO Robert Dickey said that he aims to have newspapers in the expanded chain work more closely together and share assets as USA Today Media Network.

Bromley retires and shuts agency

BromleyExecutives always say they’re leaving somewhere to pursue “other opportunities.” In the case of Ernest Bromley, who founded Bromley Communications in 1981, it’s really true. He’s going after a PhD in consumer behavior, according to the San Antonio Business Journal. Read our full interview with Bromley to hear his thoughts about the current Hispanic marketing landscape and why we need the kind of research that clients won’t pay for.

Local radio up while overall ad spending dips

Kantar Media’s quarterly ad-spending report found that overall dollars were down – and not only because of the extreme advertising for the Olympics last year. Sixteen of the 21 media types Kantar monitors saw lower spends. One of the exceptions was local radio: Hispanic local radio expenditures increased 6.5 percent, while English-language local radio was up 5 percent, thanks to auto dealers, legal services, and healthcare providers. Network radio went down 2.0 percent, and national spot radio dimmed 11.3 percent.

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What: WPP’s wholly-owned companies, GroupM, and Kantar Media have partnered with measurement company Rentrak to deliver new services in television measurement and consumer insights to clients in the United States.
Why it matters: WPP will add Kantar Media’s US television measurement business into Rentrak in exchange for US $98 million of Rentrak common stock.In return, Rentrak gets Kantar Media’s TV measurement business in the US.

descarga (3)WPP‘s wholly-owned companies, GroupM, the global media investment management company and Kantar Media, its media research and analytics business, have partnered with Rentrak, the US-based film and television measurement company. The partnerships are designed to deliver new services in television measurement and consumer insights to clients in the United States.

Under the terms of the agreement, WPP will add Kantar Media’s US television measurement business into Rentrak in exchange for US $98 million of Rentrak common stock. WPP will also purchase shares directly from the company for US $56 million in cash giving WPP a final ownership stake of 16.7% of Rentrak.

Through the terms of the deal, WPP’s various companies, like media agency GroupM, will now have access to Rentrak’s local-and-national TV viewing data and measurement to combine with Kantar’s digital media and purchase data.The transaction, when closed, will include Kantar Media’s customer contracts and customer relationships involved in U.S. television measurement, creating the benefits of clarity and simplicity for clients in the U.S. TV ratings marketplace with a single and passive TV measurement ratings service. This transaction gives Rentrak and Kantar better scale to rapidly innovate their products and services in the United States. No Kantar Media TV measurement or global development capabilities outside of the United States are affected by this transaction.

Under the agreement, Rentrak will also integrate its national and local TV measurement with a number of Kantar’s U.S.-based services that focus on digital media, advertising expenditure and purchase data. The integration will provide advertisers, agencies, TV networks, multichannel video program distributors (MVPDs) and local television stations throughout the U.S. with even more powerful tools to understand consumers’ purchasing habits and the ability to link TV viewing habits with purchase and other behavior in the United States.

“Irwin Gottlieb and Rino Scanzoni of GroupM are right on target about how this kind of scaled viewing and purchase behavior data for targeting and measurement is critical for the future of TV ad business as audience fragmentation continues to accelerate,” said Dave Morgan, founder and CEO of venture-funded TV ad targeting company Simulmedia.

The transaction, which is subject to customary regulatory approvals, is anticipated to be completed by the end of calendar 2014.Goldman, Sachs & Co. served as financial advisor to Rentrak.No Kantar TV measurement or global development capabilities outside of the US are affected by the transaction. 

Financial implications

The deal will help position audience-based TV buying as a complement to content-based or program-specific buys. An important step, as dollars begin to move between programmatic video and linear television.These agreements continue WPP’s strategy of developing its services in important markets and sectors and strengthening its capabilities in digital and data investment management businesses.

These agreements continue WPP’s strategy of developing its services in important markets  and strengthening its capabilities in digital and data investment management businesses

WPP’s digital revenues surpassed US $6 billion last year, and accounted for approximately 35% of the holding group’s total revenues of US $17.3 billion. The group projected as much as a 10% increase to 40-45% for digital as a percent of total revenue within the next five years.WPP has steadily invested in tech from outside companies. Last month, the company deprived itself of digital media platform Open AdStream from Xaxis, selling the tech to AppNexus for US$25 million. This move, in turn, gave WPP a roughly 15% stake in the ad tech company’s US$1 billion-plus business.

However, it seems that GroupM’s partnership with Nielsen, a Rentrak competitor, could be affected by this acquisition.

From a financial standpoint, the deal gives Rentrak an incremental revenue boost of US $7 million to US $9 million annually, according to PiperJaffray analysts in a research note. Rentrak expects the agreement to produce multiple long-term revenue streams resulting directly from the acquisition of Kantar’s TV service, as well as from anticipated future joint marketing agreements with Kantar and the company’s expanded relationship with, and endorsement from, GroupM.

 

 

Among all the positive news (hype?) about the growth  of English-language media targeting the Hispanic population, let’s not forget one thing: Spanish-language media advertising is the only very bright spot in the overall U.S. advertising landscape as the just published Q1 2013 figures from Kantar show.  The data  on the below table speaks for itself.

Advertising in Spanish-language media rocks!

Media/Language

English

Spanish

TV

– 1% (Avgr. Cable, Network, Syndication)

+13.5%

Newspapers

-6.25%

+ 1.4%

Magazines

-2.9%

+12%

Source: Kantar Media Data
Note: Portada calculated averages for each Media Type

According to Kantar, while local and national newspapers were down an average of -6.25% during the first quarter Hispanic newspapers were up 1.4%. Magazines were down an average of 2.9% and Hispanic magazines were up a striking 12%!  Even more striking was the difference between general market English-language TV and Spanish-language TV: English-language TV including (including Cable) decreased by an average of 1% and Spanish-language TV grew by an eye popping 13.5%.

For many marketers, the key question is whether to market in Spanish or English?  It seems  that, at least as it relates to advertising, Spanish continues to be a viable and growing alternative.

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