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What needs to happen for  video marketing budgets to increase? This question was asked by Portada to marketers at MediaVest, Horizon, Publicis Media and Dunkin’ Brands in a piece included in our just released 52 page 2017 Video Marketing Guide (Free Download).  Some key insights below.

00ce39dJennifer Weiss,VP, Connections Director, MediaVest (photo) tells Portada that “for Hispanic marketers in particular, there is still a lack of premium, relevant English-language content. Every source out there says the majority of Hispanics are consuming digital content in English, yet the majority of the premium, long-form, relevant video content is repurposed from Spanish language TV networks. Hulu has created some, but there is still a much bigger opportunity in this space. Advertisers are willing to pay more for great content that they know people are watching – and premium, long-form content doesn’t have the same viewability and fraud issues that less premium video content faces. There is also a huge migration of watching long-form content in the digital space, and our ads are less-intrusive there, so we definitely need to provide more content.”

Premium, long-form content doesn’t have the same viewability and fraud issues that less premium video content faces.There is a huge migration of watching long-form content.

DOWNLOAD Portada’s 2017 Video Marketing Guide! The intelligence and forecasts you need. Plus the trends interpreted by major brand marketing, agency and media executives who are shaping the video marketing space.

npiitwnt_400x400“The main challenge is to ensure that the content is relevant, authentic and engaging,” says Janina Delloca-Pawlowski, Brand Manager Multicultural Marketing, Dunkin’ Brands (photo). She adds that “based on research, one in two Hispanic mobile video users proactively seeks content that is relevant to them as a Latino and connects them with aspects of their culture. In fact, they are more likely to watch ads on their smartphones if those ads exemplify aspects of their Latino culture. In addition, they consume online video content in both languages so it is imperative to provide consumers with both English and Spanish content and let the consumer choose the language in which they prefer to engage with our brand.”

Horizon’s Karina Dobarro, VP Managing Director of Multicultural Brand Strategy, Horizon Media,karina-dobarro agrees with Delloca-Pawlowski, “The biggest opportunity today with online video is being able to reach a captivated Hispanic audience with premium content in both languages.”

Off-line Sales Measurement Needed

MediaVest’s Weiss stresses that for video advertising to substantially grow it is necessary for buyers to obtain offline sales data. “We know the consumption is happening – consumers post on social media about seeing our ads online. Yet, many publishers are nervous about allowing closed-loop offline sales metrics. The more we can prove that our media dollars are working hard in the online video space, and with particular publishers, the more media dollars will be available for online video publishers.”

Many publishers are nervous about allowing closed-loop offline sales metrics, but we need offline sales measurement.

People-based Targeting Based on First Party Data

Weiss also has a interesting point to make when she speaks about the scarcity of first party data. “A key hurdle for Hispanic marketers in the online video space is targeting Hispanics on English language sites. We know that Hispanics are consuming General Market media online, yet most of the targeting data available comes from cookies – largely from people who have visited a Spanish language site. We need to make sure we’re able to reach those Hispanics who never visit a Spanish-language website. More 1st party data will help us deliver on that, and publishers need to do more to gather & share that data with advertisers. As the industry moves more towards programmatic private marketplace deals to buy video, this data becomes the holy grail. Many advertisers find it challenging to reach Hispanics with programmatic on English language sites right now, even though we know the audience is there. We must get over the cookie hurdle and move more towards people-based-targeting. “

As the industry moves more towards programmatic private marketplace deals to buy video, first party data becomes the holy grail.

Tailored Creative Messages

44b4c8665d4c4e212964143b8192b228_400x400To Marla Skiko,EVP, Director of Digital & Data Solutions, Publicis Media (photo).  “One challenge is to ensure that creative messaging is tailored for the environment. Marketers want to be as relevant as possible based on what they know about their intended consumer, which has been enabled in part by data-driven audience buying. Beyond that, also tailoring the message for differing video formats is crucial. On some platforms video will have audio, for instance, and in others the audio must be user initiated. Depending on functionality, marketers and agencies must design for success.”

 

What: La Fabrica, a division of Univision Communications, is acquiring African American site The Root from Graham Holdings, the former owner of the Washington Post and current owner of digital properties including Slate. Financial details were not disclosed. On-line magazine focused on news, opinions, culture and entertainment from the perspective of African Americans. The Root reaches an average of 5 million unique users per month, according to ComScore.
Why it matters: Univision has been trying to expand its offerings away from its Spanish-language core products. The acquisition of The Root fits well with its strategy to capture a larger share of Millennial and Urban Audiences, says Marla Skiko, EVP, Director of Digital Innovation , SMG Multicultural.

Univision_TheRootUnivision Communications Inc. announced that it has acquired The Root, a leading online news, opinion and culture destination for African-Americans. In joining UCI, The Root will leverage UCI’s extensive digital production facilities and publishing infrastructure, while its editorial team will retain its voice and stay true to its mission, which has made it successful throughout its history. “Like Univision, The Root aims to serve a significant segment of America’s diverse population. Our diverse communities are continuing to define the fabric of the country, from buying power, to social influence, to elections,” said Isaac Lee, president of News and Digital for UCI and CEO of Fusion. “This game-changing union strengthens our ability to fulfill our shared missions of informing and empowering our communities.”

Marla Skiko, EVP, Director of Digital Innovation , SMG Multicultural, tells Portada. that The Root is a good complement to Univision’s digital offerings. Univision has been broadening the reach of its content base for a few years now with the addition of English language content and content that appeals across the spectrum of the Hispanic audience, from more Spanish dominant to bicultural and bilingual. Adding in content that is appealing for the African American audience will enhance that spectrum and make their offering appealing to a broader group of multicultural users/viewers.”

Univision“This bold new partnership between Univision and The Root underscores the ties that have long bound people of color together throughout the Western Hemisphere and is a sign of even greater levels of communication, collaboration and exchange between these culturally vital groups of people,” said Professor Henry Louis Gates Jr., director of the Hutchins Center for African and African American Research at Harvard University and chairman of The Root, who co-founded The Root along with Donald Graham, CEO and chairman of Graham Holdings Company, in January of 2008. Donna Byrd, VP, Digital and Publisher of The Root, is joining the leadership team of Univision Digital, which recently added Mark Lopez (EVP, General Manager) and Joe Simon (Chief Technology Officer, Digital) in the past two months. Lyne Pitts will continue in her role as the managing editor of The Root.

This should help bring more diversity to Univision’s digital base including that specific African American audience segment.

Is Univision going more African-American and Urban than Hispanic?

MarlaSkiko, SMG Multicultural
MarlaSkiko, SMG Multicultural

Univision’s acquisition of The Root is somewhat unusual since it is outside the Hispanic-focused realm (Spanish-dominant or English-dominant). According to SMG Multicultural’s Skiko, “Given that the fastest growing and most technologically savvy consumers in the US are multicultural, it makes sense to focus on that group. While their core focus has always been and likely always will be on US Hispanic, there is no denying the growth and power of the African American audience, especially in the digital space. It definitely signals that Univision sees the importance of more multicultural audiences, which we see as a good thing, especially when it comes to attracting the ever-important Millennial segment which is largely multicultural.” According to Skiko, The Root definitely appeals to African American Millennials and beyond. “Millennials are a very active, outspoken group who care about their culture and the news that affects their world so this should help bring more diversity to Univision’s digital base including that specific African American audience segment.”

“With The Root, we will serve a diverse, dynamic, young and influential audience with unique, innovative content across platforms while providing a voice to two of the most influential segments of the population,” adds Mark Lopez.

When it comes to mobile marketing campaigns, it is recommended to reach the Multicultural Consumer first. That is what Isabel Rafferty – VP of USA Sales, Adsmovil, Marla Skiko – EVP, Director of Digital Innovation, SMG Multicultural,Scott Kellstedt – GM, Appsnack, an Exponential division, Xavier Mantilla – SVP Multicultural Media, Identity, Mediabrands and Stacey Abreu – Group Planning Director, Mindshare established during a panel held a the MobileMediaSummit during NYC’s Advertising Week. The panel was moderated by Jon Suarez-Davis – VP, Global Media & Digital Strategy, Kellogg Company.

Due to the over-indexing of Hispanic and African American consumers in both the usage and engagement with mobile media, Mindshare’s Stacey Abreu recommends marketers to initiate their mobile marketing campaigns by targeting the multicultural consumer first.Hispanic and African American consumer targeted mobile campaigns is where advertisers should see the biggest bang for their buck.

Mobile Marketing

Adsmovil’s Isabel Rafferty noted that mobile is particularly important when it comes to reach out to the Hispanic consumer, because a substantial part of the Hispanic population uses mobile as their only access point to reach the Internet. SMG Multicultural’s Skiko added that communications with Hispanics should be anchored in mobility.  One of the challenges for marketers, according to Skiko, is that there is not enough content that is culturally relevant. That is why agencies and brands have to start content marketing campaigns targeting the Hispanic population almost from scratch by creating the content.

Communications with Hispanics should be anchored in mobility.

Latin America presence at NYC’s Adweek

Members of the audience at the Mobile Media Summit asked whether there are substantial differences between Latin American (south of the border)  and the U.S. Hispanic attitudes toward mobile media. According to Skiko, the characteristics of the audiences in Latin America are relatively similar to the U.S. Hispanic market. The only major difference is that the U.S. Hispanic consumer straddles between two worlds in a sort of balance between the Hispanic and “general market” cultures. As Identitity’ Mantilla put it, in Latin America “Spanish or Portuguese are the general market.”
To Mantilla in the Latin American mobile market, which currently has an approximately US $250 million annual spend, there is more SMS and text messaging used for advertising that in the U.S. due to the less advanced features of the mobile phones the majority of the population owns . In addition, the length of videos is shorter in Latin America.
According to Mantilla, mobile amounts to 20% of digital budgets in Latin America.
Latin American marketing, media and advertising professionals were definitely present during NYC’s advertising week with more than 25 Brazilian executives present during the MIXX conference and also many others from other countries, including Mexico and Argentina.

Flipboard, the  social-network aggregation and magazine-format application software for different operating systems,  just introduced a new U.S. Latino Content Guide for Hispanic audiences. Will Flipboard be succesful among U.S. Latinos?

Flipboard has launched a new U.S. Latino Content Guide: a place to find publications and news sources popular with Latin audiences in the United States. Simultaneously, the personalized magazine app has made new publishers partnerships, aiming to reach  millions of Hispanic readers.

FlipboardFlipboard’s editorial team compiled the new U.S. Latino Content Guide with Spanish and English content (approximately an 80/20 mix respectively) from sources in the U.S. as well as from the various countries of origin. Content categories include tech, news, fashion and lifestyle .  “We launched the US Latino content guide because we saw that 15% of our domestic (US) readers wanted news and information in Spanish, so we created the U.S. Latino Content Guide for them. We also noticed that Spanish is the second-most popular language in which we receive inbound messages and questions. Our curators in Miami, in collaboration with our editorial team in Palo Alto, have put together a custom Latino Content Guide for this vast group of readers,” says Joe Kutchera, Flipboard’s head of Hispanic partnerships. In the medium term Flipboard intends to reach out to advertisers but for now it is focusing on “building audience for our U.S. Latino and Latin American publishing partners before we work on advertising.”

Much of Flipboards success in the Hispanic market depends on how they promote the Latino content within their app and outside of it so users can find and share it so it can scale.
MarlaSkiko, SMG Multicultural
Marla Skiko, SMG Multicultural

“I think the concept is great! It is so good to see more mainstream digital players, apps and platforms recognizing the growth and digital appetite of the US Hispanic audience and acting on it,” says Marla Skiko, EVP, Director Digital Innovation at SMG Multicultural. I hope Flipboard will have great success with this Latino venture. Much of that depends on how they promote the Latino content within their app and outside of it so users can find and share it so it can scale.”

It is so good to see more mainstream digital players, apps and platforms recognizing the growth and digital appetite of the U.S. Hispanic audience and acting on it.

“I think it definitely will work.  Content is king, that’s nothing new and its been said 1,000’s of times, but the truth remains,” says Yousef Kattan, president and CEO at TruMedia in Dallas. “I truly feel if publishers can’t evolve content and create seams in culture and language then their longevity will be questioned against the evolving Hispanic consumer,” Kattan adds.

Partnerships

Kutchera adds that Flipboard has  “100 million readers globally creating their own personal magazines, aggregating the news and content sources they love – magazines, newspapers, blogs and social networks – all in one place. Now, this includes major brands in Spanish such as CNN en español, CNET en español, Editorial Televisa news in English from Fox News Latino and Huffington Post Latino Voices as well as country-of-origin news from Milenio and Excélsior.”

Additionally, prominent Hispanics have started curating Flipboard magazines that are also featured in the new Content Guide. For example, CNN en Espanol’s Ismael Cala has the magazine “Cala en Flipboard” based on his show and what he is reading, and Doctora Aliza is curating a magazine about living a healthy and happy life called “En Cuerpo y Alma”. There are also Flipboard magazines curated by technology analyst Ariel Coro, Univision news anchor Leon Krauze, TV Azteca’s Alfonso De Anda, Latin Celebrity Chef Pepin and Ana Flores, author of the book “Bilingual Is Better.” Flipboard also launched an exclusive magazine with the Leo Messi Foundation around Leo Messi’s history and social mission for futbol fans around the world. The Flipboard magazine gives readers free access to excerpts of the book “Messi: Choose to Believe” in English and Spanish.

Latin American Edition

Flipboard  launched its Latin American content guide in November last year and has learned a lot about what news and information are most popular for Spanish-speaking markets on mobile devices and tablets. Our integration on Samsung smartphones has been especially helpful in building audience in the region,”  says Joe Kutchera, Flipboard’s head of Hispanic partnerships.

What: CPG Giant Kraft is already leveraging the vast amount of data it has through a data management platform (DMP) and programmatic advertising. The programmatic push includes efforts to reach the Hispanic consumer, Portada has learned.
Why it matters: Programmatic Trading and DMPs are rapidly gaining traction in the digital media market.

Kraft has an impressive CRM system, it includes the Hispanic marketing program Comida y Familia . The CPG giant is now turning all that data of customer interaction into a programmatic and data-centric marketing program. That is what  Bob Rupczynski, VP of media, data and CRM at Kraft Foods, said at the recent Forrester’s Forum for Marketing Leaders.

Rupczynski outlined Kraft’s strategy for leveraging the CPG company’s vast customer data through a data management platform (DMP) and programmatic advertising. “Through our meals, recipes and videos, we have about a billion interactions with consumers every year,” Rupczynski said. According to Adexchanger, Kraft turned to the media agency Starcom and DMP provider Turn, to help it gain and leverage insights from its customer data. In addition to having a comprehensive view of its customers, the company’s goals included delivering more relevant messages, optimizing its media buying decisions in real-time and attributing sales to impressions at the store level.

Hispanic component

Programmatic BuyingPortada asked Starcom Media Vest, Kraft’s media agency, whether the effort also includes the Hispanic market: “This approach  is inclusive of Hispanic and our multicultural team is involved.”Marla Skiko, EVP, Director of Digital Innovation at SMG Multicultural. Skiko is a supporter of programmatic buying as an efficient tool to reach the Hispanic consumer.  “Programmatic buying opens up the opportunity for us to reach multicultural audiences efficiently and effectively. For one, it helps automate a labor intensive buying process. More importantly, it is anchored in using data to identify and connect with specific audiences such that we can tailor messaging at scale to intended multicultural consumers across the digital space.”

Is good multicultural data difficult to find?

“Finding partners with the right data is crucial since good multicultural data is the key to growing the programmatic space for our buys,” Skiko notes. In many ways data is the fuel that drives the Digital Marketing machine. The key question is how to get data as client side marketers often do not want to relinquish data to third parties. Is good multicultural data difficult fo find? “Yes it sure is,” Skiko notes. “We spend a lot of time in our quest to mine first party data with our clients and vendor partners as that is typically preferred over third-party, ” she concludes.

Apple and Comcast are rumored to be cutting a deal that would send a mix of live TV and on-demand video through an Apple set-top box. That’s just the latest in a series of partnerships or acquisitions that could someday let advertisers buy, traffic and analyze online video and TV content together. A look at how agencies and digital vendores are preparing for the TV-Video Convergence.

Nielsen is partnering with Videology to use data to help TV advertisers target young audiences that are watching more digital channels. Comcast bought FreeWheel. And Adap.tv, owned by AOL, launched a programmatic TV buying platform, which it says lets advertisers use data to buy the same audiences online and on TV.

This is clearly the path we’re heading down: to make video buying more seamless, efficient, and data-driven
MarlaSkiko, SMG Multicultural
MarlaSkiko, SMG Multicultural

“This is clearly the path we’re heading down: to make video buying more seamless, efficient, and data-driven. It’s all video buying. We want to use data to inform buying video wherever we’re buying it,” says Marla Skiko, EVP and director of digital innovation for SMG Multicultural.

How close are we to true convergence of the buying process? Not all that close: These deals are about helping TV content owners target ads in the digital world. There is technology and business challenges to work through for brands, agencies, content creators and vendors alike before digital and TV will become apples and apples.

Could DSPs buy TV spots?

SMG, part of the Publicis Group, has access to sister agency VivaKi’s Audience on Demand platform. Skiko says, “They are running hard against trying to buy TV on the platform. It started with display and then folded in social.” She thinks that eventually, anything that can be bought programmatically will be –including TV.

She says that tools like comScore validated Campaign Essentials and Nielsen Campaign Rating already let advertisers talk about online video and TV in the same way, albeit through the TV focus. When placing a GRP focus on digital video, she says, “If you want to buy Hispanic 18 to 49, let’s look at what you actually got of that demographic that you were trying to reach. All of it is still bought on the CPM basis, its’ the nature of talking about the reach and frequency dynamic.”

One of the common criticisms of Nielsen’s and comScore’s audience tools, she adds is, “It’s awesome in the verification but not in the planning phase.” DSPs still need to use their own data together with third-party sources to plan campaigns.

Some agencies — including SMG Multicultural — already are converging their TV and digital video teams for planning and buying.

Business roadblocks

Mark Dominiak, PACO
Mark Dominiak, PACO

Some agencies — including SMG Multicultural — already are converging their TV and digital video teams for planning and buying. Sometimes, this is easier for smaller agencies. Says Mark Dominiak, media strategist PACO, a multicultural agency that handles digital, TV and social media, “At our agency, it’s small enough to where we don’t have the luxury of a department. We have a small group of people who serve all the media goals of the agency. When you have people who are working on all facets, it works to your advantage. There’s no siloing.”

Analytics — the lack of common metrics between broadcast and digital channels — could be the biggest barrier to converged buying. Says Jeremy Helfand, vice president of video monetization at Adobe, “What is the common currency I can transact across all channels? A lot of our customers are using Adobe Analytics to understand the, digital audience but ultimately market needs to go to a true cross-platform currency to allow dollars to flow freely across wherever the audiences are. The consumers are not different between the TV screen and the screen in their hands, so how can we truly monetize that experience across those various channels in an easier way?”

Adobe recently introduced a major upgrade to Adobe Marketing Cloud that converges six products, including Adobe Analytics. Adobe Primetime, the sell-side platform that lets broadcasters package TV content for digital distribution, can take advantage of customer data in the analytics product to target advertising delivered with video content via Primetime. But there’s no way within the product suite to combine this with GRP data from Nielsen. Ashley Still, director of product management for Primetime, says companies could “try” to do this internally.

An agency like us, we almost never talk about how many rating points you are delivering. It’s about, how well does the buy you manufactured serve your marketing objective?

It might behoove agencies to focus less on trying to match gross rating points to CPMs, anyway. Says Dominiak, “An agency like us, we almost never talk about how many rating points you are delivering. It’s about, how well does the buy you manufactured serve your marketing objective? GRPs and impressions are an output you look at but are not critical to deciding if this is a good plan.”

Beyond the data plays of Adobe, Comcast and others lies a deeper question for Hispanic marketers, Skiko says. “Our ideal goal would be to rely on first-party data as much as possible.” That could be derived from a tracked visit to a Spanish-language website, search in Spanish or from a data partner. However, she says, “We need more at scale. Creating pools of first-party data is helpful to enable some of these platforms. When Nielsen or AOL makes an announcement, one of the first questions we want to ask is, ‘Have you thought about how to enable this for multicultural audiences?”

In other words, while the convergence of TV and digital ads is a blip on the horizon, Hispanic marketers have an even longer journey to get there.

No pricing convergence

Photo: James CridlandEven if the metrics and analytics problems get worked out, no one sees the prices of video ads and TV spots converging. But that does not mean that online video will be cheaper than broadcast. Already, we’re seeing some high-value online video reaping higher rates than TV scatter ads — although it’s hard to compare due to the different pricing and metrics.

Increasingly, broadcasters are selling digital as part of their upfronts. For example, NBC offered a huge digital component for the Sochi Olympics, with a website and three different apps that offered a mix of live streaming of TV, video clips, news and custom content.

According to Julie De Traglia, SVP, digital and broadcast marketing research for NBCUniversal, Sochi Olympics broadcast and video ads were sold as a package, and this will be increasingly the case for premium content that’s delivered across channels. “Advertisers buy multiplatform,” she says.

This kind of packaging, to some extent, obviates the need for convergence of TV and video within DSPs and analytics programs — especially while the demand for premium video outstrips the supply, especially in the Hispanic market. Adds Skiko, “Some video may be on parity with television, depends on how the deal is made. And there shouldn’t be a distinction. We have video buyers and we are about to enter another video upfront. You won’t talk about the TV Upfronts anymore.”

2014 just started and we say it’s going to be a banner year for Hispanic marketing. GroupM expects U.S. overall advertising expenditures to increase by 2.9% to US $161 billion. eMarketer expects a 3.8% increase to US$ 171.33 billion. We say that Hispanic advertising will grow substantially more than eMarketer’s and Group M projections for the general  market. Below 7 growth drivers, and some challenges, for marketing, advertising and media executives to take into account.

1. Total Market? Yes but with culturally “fluent” Messaging

2014
Photo: Jens Rost – Creative Commons

One thing is clear by now, the “Total Market approach” has been adopted by the majority of Corporate America as the appropriate approach to target the U.S. consumer. The latest example of this is T2 or Total Toyota. The automaker just announced that its longtime ad agency Saatchi & Saatchi will take the lead over three other Public is Groupe agencies that currently handle multicultural marketing duties—Conill Advertising (Hispanic), Burrell Communications (African-American) and Zenith (Broadcast and out-of-home media buying), along with InterTrend Communications (Asian-American marketing). The new unit will be called T2 (Total Toyota). It is crucial though that the Total Market approach includes  culturally appropiate messaging that deeply resonates with a brands different constituencies. Carlos Saveedra, director of Multicultural Marketing at Pepsi, and a speaker at last year’s ANA Multicultural Marketing Conference uses the term Cultural Fluency:”Cultural Fluency means to market at intersection of interests (e.g. Fashion, Sports etc), rather than to one group in particular.” “It is about being inclusive about the entire texture of multicultural consumers.” Pepsi transitioned from having a multicultural team to have multicultural marketing objectives be included in each brand’s goals.  “Brand managers are accountable to connect with the multicultural consumer. They need to know the multicultural consumer as well as general market consumers.” Saavedra said and added that Hispanic focused executions are not necessarily wrong. But he said that by taking a cross cultural approach, Pepsi discovered that the NFL is very attractive to Hispanics. Before Pepsi obtained this insight, Hispanic campaigns only revolved around soccer.

Brand Managers are now accountable to connect with the Hispanic consumer.

2. The 2014 Soccer World Cup and the Conversation around it

Photo: Milas Page. Creative Commons.
Photo: Milas Page. Creative Commons.

Advertising related to the 2014 Soccer World Cup can increase ad-sales of major Hispanic media properties by up to 40% compared to a non-World Cup year, say executives of Hispanic media properties interviewed by Portada. World Cup right holders (English and Spanish-language TV, online and Radio) are working hard to monetize these rights. But the World Cup offers also other media properties plenty of opportunities (see for example special digital and print editions around World Cup matches and or non directly soccer oriented content such as culture and history content around World Cup host country Brazil.)
“World Cup is big, but I think what can be as important is the conversation around the World Cup – teams, players, host cities, stadiums, etc… We are really pushing to make sure that the brands we manage have a strong presence in these conversations and that these brands become fibers within organic conversation,” Yousef Kattan Fernández President/CEO at Dallas based TruMedia, tells Portada.
(Look out for “Portada’s 2014 Soccer Marketing Guide in partnership with Soccer.com” to be published on www.portada-online.com on January 28th!)

3. Focus on the scalability of digital channels

To Marla Skiko, SVP, Digital Innovation at SMG Multicultural, “the greatest challenge facing Hispanic media is to power the growth of digital media.  As those of us in the Hispanic media space are keenly aware, Hispanic consumers are at the forefront of technology and digital consumption.  We need to see growth in scale across channels from video to social to mobile.”

The greatest challenge facing Hispanic media is to power the growth of digital media.

…with programmatic helping to solve native’s scale issue

ALEMANIA TECNOLOGÍAProgrammatic digital advertising buys are an important tool to solve the scalability issue in digital marketing and advertising. A few months ago Skiko told us that the use of programmatic audience buying technologies can be very efficient, particularly when it comes to target segments of the Hispanic demographic.” Several players including Batanga, Alcance Media, Pulpo Media and in the video space Videology, Adap.tv., Yume and others are trying to capitalize on the catch up potential the Hispanic market has versus the general market in this regard.
(Watch out for “Portada’s Latin Audience Buying Guide“, a new custom branded section to be published on Portada’s English and Spanish-language sites in the next few weeks!).

Programmatic Trading can also help solve another important marketing challenge: How to scale native advertising. While the concept of native advertising, or branded content programs that take advantage of the interactivity of the digital medium (see The New York Times recent implementation),  has been the darling of the industry for the past two years, it has yet to truly take off due to its inability to scale. That is poised to change as native will start to be offered programmatically through new technologies that help publishers display sponsored content at scale. For the ‘right ad at the right time’ to finally become the ‘right content at the right time’, content marketing will need to become seamlessly integrated and distributed through advanced targeting technology via ad exchanges and RTB platforms.

Challenge: Finding ways for brands to stand out…

“One of the  greatest challenges marketers face  in 2014 is finding ways to help their brand stand out,”  TruMedia’s Kattan Fernández tells Portada.  “There are so many advertisers saying similar things in similar places. Messaging is important but understanding where your brand fits contextually is as important.  Finding creative media touch points, whether those be digital, social, mobile, offline are key to creating some sort of awareness and developing that engagement with viewers, listeners or online patrollers,” Kattan adds. He notes that “digital and social continues to be a big focus for our agency and growing those 1 to 1 consumer relationships where we can. ”

Understanding where your brand fits contextually is crucial

…it’s all about Content Marketing! (Driver 4)

Content Marketing

Finding the right context and context through digital and social media will continue to be key. In other words, it’s all about Content Marketing. Content Marketing strategies which succesfully integrate paid, owned and earned media are crucial for brand marketers.

Content marketing can particularly benefit brands who invest in creating culturally relevant content and scale it across screens and devices.

SMG’s Skiko says that “because Latinos are super users of technology and digital media, we expect to focus squarely on the digital space as we look to grow our clients’ business in 2014.” According to Skiko, “there is a strong opportunity to create engaging, socially powered experiences that are grounded in Hispanic consumer insights.  Another opportunity to make that connection is for marketers to develop content tailored to the Hispanic audience.  Content marketing is a growing arena and can particularly benefit brands who invest in creating culturally relevant content and scaling it across screens and devices. We see a strong opportunity to create engaging, socially powered experiences that are grounded in Hispanic consumer insights.”

…and here is where Data comes in (again). (Driver 5)

Customer Insights and Data represent another major driver for Hispanic marketing in the year that just started.  “I think the opportunity is about data. Not only to have it but actually to know how to find insights through it,” says Gonzalo del Fa, president of Group M Multicultural and Portada Editorial Board Member. (Big) Data can not only be used to substantially increase advertising effectiveness but also for content marketing purposes. For brands and agencies the issue is not so much about producing enough content but about creating enough usable content. That is where Data and dynamic content recommendation engines come in. They enable marketers and media to present the right content to the right visitor at the right time without the visitor having to discover it themselves. Machine learning does that discovery for them. The future of content marketing is all about data-driven content origination and curation that are optimized for organic SEO , highly relevant and targeted.

6. Mobile

In 2013 mobile marketing expenditures took off, although perhaps not as much in the Hispanic market. Experts interviewed by Portada note that 2014 will be a very important year for Latam and USH in the mobile industry. Gaston Bercun, Founder & Co-CEO at mobile ad network Hunt Mobile Ads, says  that “a lot of what is going on in the US and Europe will start to be seen in the Latin markets.”  Bercun adds that “we will start to see important growth of investment of brands in their mobile and mobile advertising strategies and this will push the market to a new level. Programmatic and new devices will also help in the process of increasing the smart phone and tablet penetration.” Major platforms like Google, YouTube and Facebook, provide advertisers
access to mobile and don’t need to recreate any mobile platform creative or invest in it. As Sylwia Makarewicz-Liszka, Mobile and Digital Planner at Starcom Media Vest, said during Portada’s 7th Annual Hispanic Advertising and Media Conference last September “not having mobile assets should not be an excuse for not making a mobile campaign.”

7. Digital Video continues to expand

Hispanic Online VideoRelated to the trend of digital expansion and content marketing is the almost explosive growth of digital video in the Hispanic market.  2014 will be the year of video in content marketing and Hispanic advertising. Platforms like Twitter, Instagram and Facebook, are allowing or will soon allow video ads in consumer content feeds. With videos becoming cheaper to produce even small businesses can produce high quality videos. SMG’s Skiko notes that the increased focus on the Hispanic opportunity by mainstream digital publishers is a win for marketers.  Key players such as Google, Facebook and Twitter are ramping up their Hispanic capabilities with dedicated resources and a focus on content creation and improved targeting.  This should help develop more and richer audiovisual media including digital video.  (Join us on June 3rd in Miami when major marketers and digital video experts from the U.S. and Latin America will gather at Portada’s Latin Online Video Forum)

WALT WHITE, meet Walter Blanco. The meth cook/criminal mastermind/chemistry teacher will live again, as Sony and Teleset remake Breaking Bad in Spanish for audiences in Latin American and the United States. Mainstream producers are waking up to something multicultural media have known for quite a while: Hispanics love video. Advertisers are hungry for this audience, and content creators can barely keep up. If you produce premium video that appeals to Hispanics, life is good.

If you can reach Hispanics across multiple devices, life is even better. In October, Telemundo released Telemundo NOW, a digital portal and mobile app that let cable subscribers watch full episodes of Telemundo’s programs in HD on any device. Telemundo NOW is just the latest step in Telemundo’s bold move into digital. Last year, it broke new ground with Mia Mundo, its bilingual web series with brand integrations for Verizon and Chevy.

This year, it upped the digital ante by featuring Mia Mundo content of all kinds on nearly every medium. The novella – along with Chevy car brands – was featured in trailers on Telemundo, as well as on the station’s morning show; and alternative endings were put up for a vote on Telemundo.com and social media, with the winning ending revealed on TV.

In addition to the actual episodes, bonus scenes, actor interview and bios, photo galleries and music packages appeared online and on mobile via Telemundo.com and miamundo.com.

Because Telemundo produces its own programming, “We have a tremendous amount of content that can play out on TV, mobile or gaming devices,” says Peter Blacker, executive vice president of Telemundo Digital Media and Emerging Businesses Division, Telemundo. “It allows us a chance to get our audience even further connected with our content.” It also allows Telemundo to offer custom video content and deep integration across platforms for sponsors like Chevy.

Blacker says, “We are taking our video to market across multiple platforms. We will work with ad partners to sponsor the television show, website video, mobile, VOD, as well as our TelemundoMas video. Consumers can have one consistent relationship with that content.”

Another online video fan is Gabriel Sama, Managing Editor of CNET en Español, the recently launched Spanish-language sister site to CNET, the tech media website that publishes reviews, news and podcasts on technology and consumer electronics. “Video has played a big role at CNET throughout the years and Español is going to leverage that experience, offering the best quality Spanish-language tech reviews and information,” Sama tells Portada®.

Filling the Breach
Content like Telemundo’s and CNET en español is gold for advertisers trying to reach Hispanic consumers. “When it comes to really relevant content, whether in Spanish or English, there definitely has been a lack,” says Marla Skiko, EVP and director of digital innovation for SMG Multicultural, a unit of StarcomMediaVest. “The biggest fact marketers need to realize is that there is such a strong overconsumption of video among these consumers. The indices are astounding – the propensity for not only viewing but also sharing.”

Those 50 million Hispanics living in the United States spend 68% more time watching video on the Internet and 20% more time watching video on their mobile phones than the general population, according to Nielsen. Even better, they are more likely to purchase everything from apparel to stocks using mobile devices, according to Experian.

“Match the dearth of content to the desirability of this audience, and you get premium prices for Hispanic video content,” says Jorg Nowak, head of Latin America and US Hispanic for YuMe. “CPMs are very strong, and I predict they will become even stronger. It’s a great problem to have.”

‘CPM’s on video are going for double the price of traditional banner ads.’

John Trainor, general manager and publisher at Hoy Chicago, agrees: “In very simple terms, CPM’s on video are going for double the price of traditional banner ads however the real business plan comes from building capabilities that enable traditional newsrooms to build engaged audiences through multiple formats with only marginal increments in cost structures by incorporating video into the production flow. It’s not about pre-rolls, its much more than that.”

Market analysis by one automotive company found that perception of three brands was lower among His- panic consumers than among the general population. That hurt, especially since sales of new vehicles grew 28% year-over-year from 2011 to 2012. In June, the auto maker launched pre-roll video campaigns on a custom Hispanic channel on YuMe’s Connected Audience Network, with impressive results. (YuMe isn’t authorized to name the brand.)

“When Hispanics buy a car, it’s a family decision. The entire family comes to the lot and experiences the car. We wanted to replicate that and transfer that to our ad business,” says Nowak. “[The advertiser’s] problem was that the public perceived the brand as being lower in quality, so the campaign objective was to use digital video to create an engaging experience to bring to life the virtues that the car had.”

The video advertising platform created three custom channels for the car maker. On selected sites, video ads for one brand targeted Hispanics aged 25 to 54 with children in the household; second targeted Hispanic consumers aged 18 to 49; the third targeted Hispanics aged 25 to 54. The campaigns garnered a 91% video completion rate, which is 20% higher than the category’s 76% norm, according to YuMe.

Reaching Hispanic consumers is complicated by several things, according to Skiko, including their use of both mainstream and targeted video content, as well as the increasing number of Hispanics for whom English is the preferred or only language. “Because how do I know you’re Hispanic? You know who the user is but how do you know their ethnicity. It’s a bit of a data quandary,” she says.

For example, among the most popular YouTube channels among Hispanics, only one, Machinima, is overtly Hispanic-centric.

Content Targeting
Simply providing content Hispanics will like is one solution to finding them online. Hispanics’ favorite YouTube channel, VEVO, reaches them with a simple, targeted-content approach. It works.

“Music is important to the Hispanic community. Typically we are targeting according to the content itself,” says Jonathan Carson, chief revenue officer. VEVO has a content channel structure that lets brands focus ads on those that skew toward Hispanic audiences; they can also choose to sponsor specific artists.

VEVO also creates custom content tailored to a specific brand’s interests, notably in its Go Shows, which marry live events with digital video. GO Shows are unannounced concert performances in intimate venues; the music video site records the shows for replay on-demand. Its GO Show with Belinda at Los Angeles’ Skybar, sponsored by T-Mobile, drew more than 3 million views between April and June of this year. T-Mobile had a presence at the concert, and its video ads were delivered as pre-rolls when the more than 3 million viewers watch online.

Coors Light sponsored a two-part, behind-the-scenes video promoting Prince Royce’s “Darte un Beso,” while Chivas partnered on a live concert series featuring Café Tacvba. Each garnered more than 1 million views.

These are sold similarly to traditional media sponsorship packages that include a broader media buy across VEVO, according to Carson. “Brands often want to deeply associate themselves with content that means something to consumers. When they try to create that content on their own, it’s often difficult to generate a large audience,” he notes.

YuMe’s targeting is another approach to reaching Hispanics: Its ad network includes 1,500 different sites, including many Hispanic publishers, and its January 2013 acquisition of Crowd Science lets it combine survey, behavioral and contextual data to better understand consumers. YuMe says its Household Targeting solution lets advertisers reach all members of a house- hold across all of their connected screens.

Videology’s Addressable Audience Platform lets advertisers target consumer segments by demographics, psychographics and behavior. It uses contextual targeting technology to determine browser language and the content viewed, mixing that with demographic data from more than 25 data providers to identify users by ethnicity. “Some of them can get as granular as targeting bilingual users,” says Chad Schulte, VP of strategic sales for the Americas.

Most advertisers want to get even more granular, he adds, targeting according to consumers’ diverse interests and buying patterns – and this is another place all those data sources can help. For example, a consumer packaged-goods company might want to reach Hispanic moms with kids under five years old. “We might have one data provider identifying that user as Hispanic, and another that matches that same user as a mother,” he explains.

Crossing Platforms
U.S. Hispanics are 20% more likely to watch video on their mobile phone than non-Hispanics, according to Nielsen. But in search of reach, most advertisers want to be able to use the same creative across devices.

In fact, media planning and buying is increasingly video agnostic. Tapestry’s Lia Silkworth notes that there are substantial changes taking place in the broadcast advertising area. “Many agencies are looking at video agnostic planning and buying. Upfronts are no longer a TV team only affair.” Marla Skiko agreed: “The discussion changed. It starts from a totally different place. It used to be we are buying a 30-second TV spot. Now it’s much more about content and measurability.” The game changer has been the emergence of online video and mobile as well as the increased measurability of digital advertising.

Bob McNeill, CEO of IMAGES USA, says he uses online video in almost every online ad program. “We have found it to be three to four times more effective in unaided recall. I cannot think of a single occasion when the broadcast repurpose does not work for us.”

‘The emergence of online and mobile video and the measurability of digital advertising are game changers.’

Companies including Adobe, Videology, Yume, Adap. TV and Tremor Video provide mathematically driven analyses and allocation of data that allows advertisers to target precise consumer segments – at scale – by demographics, psychographics and behavioral segments through video advertising on multiple screens (connected TV’s, mobile, tablets, PCs).

“If someone starts to engage with more digital properties, it continues to enrich the data set. Maybe they came to the website, filled out a form or visited a retailer with a point of sale card. We can capture all of that, connect it together and create a higher resolution view of any consumer,” says Nate Smith, product marketing manager, Adobe Analytics.

Telemundo is also working to expand its insights across platforms. To better understand Hispanics behavior consuming TV, online mobile and social media, Telemundo and Vision Critical have teamed up to create two “insight communities,” AKA panels. Mi Telemundo, for Spanish-dominant consumers, and Tu Pulso Latino, for bilingual Millennials, will use surveys and consumption tracking to give advertisers a handle on the influences, behaviors and desires of these groups.

More such efforts are needed. As video continues its march to dominance of digital content, the challenge, according to Telemundo’s Blacker, will be for content companies to keep pace with new connected devices and technologies. He says, “Today, it’s tablets and phablets and cell phones. What’s the next frontier? The audience will decide where they want to see our content.” And advertisers will have to follow them.

 

Analysis Analysis: Online video  is getting huge in the Hispanic market. Major general market players including Videology, Tremor Video,  AdapTV, Yume, Tube Mogul and video entertainment network Machinima now have dedicated units exclusively targeting the U.S. Hispanic market. Many of these companies focus on video ad delivery across multiple screens (connected TV’s, mobile, tablets and desktops) to target precise consumer segments—at scale—by demographics, psychographics and behavioral segments. But, in the midst of all this sophistication, what about the creative to use in online video ads ? Can TV spots just be repurposed?  Below what several advertising experts think.

One trend is clear and it is that major buying agencies increasingly see video as a channel agnostic vehicle.”We have many online video campaigns live right now. As we wind down the upfront buying season, video was front and center across screens from TV to desktop to tablet to mobile. More than ever before we are approaching video buying with a screen neutral mindset to align with how Hispanics consume and overconsume video across screens and devices,” Marla Skiko, SVP Digital Innovations at SMG Multicultural tells Portada. But should’nt video ads be adapted to the characteristics of the different channels they are used in?

Online video may be a media buy, but at heart it is a creative piece.

The “No way, Do not repurpose School”

Mobile videos
Mobile videos

Xavier Mantilla,  Partner at IPG MediaBrands in Miami notes that  “online video may be a media buy, but at heart it is a creative piece. If media agencies got more together  with creative agencies , these would be much more successful. When we look at video campaigns that have had higher click-through rates we realize that the creative had a very big part, as well as where it was running, so this fusion of art and science needs to grow.  But then, we need to invest in this and not just repurpose videos.” Marla Lopez Knowles, CMO at  Pulpo Media, has a similar view: “I, personally, believe that developing online video ads will drive greater engagement than the mere repurposing of TV broadcast content.  Again, driving more personalized communications drives greater engagement and brand affinity.  We all want advertisers to recognize us as unique. The more they can speak to a consumer as a unique individual, informed by deep knowledge and insights about the individual/audience, the greater the engagement. It’s more than just reach; it’s reach and touch.  TV broadcast content, by its very nature, is meant for more mass consumption and broad reach.”

On the web we can finally spread our wings and practice “storytelling” like never before.

John Trainor, publisher of Hoy Chicago, also appeals to the different characteristics of the channel where the online video ad is shown: “On the web there are no time constraints or space restrictions like there are for TV or print. There are no 2-minute per segment or 700 word limits, meaning that we can finally spread our wings and practice “storytelling” like never before. It is not about adapting TV content for the web nor is it about adapting print content for the web, it is about telling the story in the best possible way, leveraging all the new tools available to our generation. Regarding the question that always comes up on whether ” size matters” we have learned that it’s not about the length of the video, its what’s in the video what matters, therefore we focus on creating engaging content rather than content you can squeeze within limited space constraints.” Trainor sees the biggest opportunity in branded content and cross-channel sponsored opportunities. As an example he cites a branded content series Hoy Chicago did for Loya Insurance which consisted of a series of 4 videos for “auto enthusiasts” which combined print and digital-video.

The “One Creative across screens School”

Make no mistake, for major Hispanic broacasters such as Univision and Telemundo, online video advertising revenues are still small compared to the billions they yearly get out of traditional Spanish-language  TV and cable advertising. However, it is very important to mention that Spanish-dominant Hispanics spend substantially more time (50% more!) than English – dominant Hispanics watching online video content.
The economic power of traditional TV and cable advertising may be a reason for the  one size fits all approach in which the TV creative is  used on all online video channels.

I can not think of a single occasion when the broadcast repurpose does not work for us.

“We use online video in almost every online ad program because we have found it to be three to fours times more effective in un-aided recall. I can not think of a single occasion when the broadcast repurpose does not work for us,” says Robert L. McNeil. President & CEO  of IMAGES USA in Atlanta, where he creates campaigns for the  Center for Disease Control, Nickelodeon and  Brown Foreman. Todd Wilson, until recently SVP Managing Director at Starcom Mediavest Group Latin America  in Miami (he now is SVP Managing Director, P&G Asia at Starcom Mediavest Group China)  says that Starcom has been running Latin American campaigns for P&G and Samsung and that he tends not to differentiate online video usage by campaign, rather seeing online video as another screen for all client products we would normally target across broadcast and cable.

 

The “It depends School”

Hispanic TV MarketOf course, the characteristics of every brand, the campaign objective, the timing and the channel used  are different. So, it may make sense not to have a clear answer on whether repurposing TV spots or not is the way to go.
SMG’s Skiko notes that “using TV spots for online video creative, is still quite common. We always advocate for messaging that is relevant and will resonate. As we keep planning video across screens it very well may make sense to have the same spot regardless of which screen it is on. That said, we need to be mindful of how behaviors change in digital areas vs. TV and consider how to best utilize TV spots. For instance, if a :30 and :15 are available we would likely suggest use of the :15 online. It is also important to try to capitalize on the nuances of digital and the vast array of creative units and options that exist to match the message format and functionality best to the screen and content in play.
“Ideally, we try not to re-purpose broadcast video for use in digital platforms,” Brett Dennis,  Chief Media Communications Officer at Conill, asserts. Dennis adds that, “while there are certainly production efficiencies that can be gained from using similar assets, we work closely with our creative teams to tailor video content to the medium. We do this for two primary reasons. First, we want to create an emotional connection with people based on the environment they are consuming our message. That might mean different creative approaches, not necessarily different campaign approaches. Second, to drive different behavior based on the channel of video being consumed. We expect a different action from somebody watching video on their big screen TV in the living room versus somebody watching video on their mobile phone while riding the train to work.” According to Dennis, a multi-screen video approach is a consistent part of most campaigns he deploys for clients. “Our current efforts for T-Mobile and Toyota’s Corolla, Camry and Highlander all include video elements across TV.Internet, mobile and social channels. The types of video elements we select are driven by the consumer journey for each brand, the role each media channel plays within that journey and the behavior we want to elicit from consumers.

 

 

What: Latin multichannel network MiTú announced a partnership with media agency Tapestry  for online video advertising and in-video product placement.
Why it matters: The deal is part of a trend in which  agencies and online video content platforms sign broad agreements that include “traditional” advertising and product placements.

MiTú, the Latino lifestyle video content network funded by the Chernin Group,announced today that it has closed a significant marketing agreement with Tapestry, a division of Starcom MediaVest Group Multicultural. The year-long deal negotiated between Tapestry and MiTú’s Chief Revenue Officer, Charlie Echeverry, contains a variety of advertising and integrated marketing elements designed to give Tapestry clients strategic level share of voice across the MiTú networks as well as access to deep integration and social amplification opportunities with MiTú content creators throughout the year.

The deal includes instream video advertising and light integration of certain products within the content for a number of brands.

Campaigns leveraging the new partnership will begin as early as October. A spokesperson at  MiTú told Portada that the integrated marketing elements include “instream video advertising and light integration of certain products within the content for a number of brands.”

MiTú is a multichannel network (MCN). According to the spokesperson MiTú has 950 partner channels, 8 million hours of monthly engagement, 150 million monthly views and more than 25 million global uniques. MiTú  is presently expanding its lifestyle content and programming strategy to include male focused and music content for the first time.

“We are happy to be one of the first movers with MiTú which is adding robust, engaging Latino content into the expanding Hispanic digital space. We are excited to see the network continue to grow and offer solutions that are both video centric and socially connected,” said Marla Skiko, SMG Multicultural’s EVP of Digital Innovation.
“Tapestry uniquely understood the scale, engagement and relevancy that our social video content network could drive and they moved aggressively toward a significant stake in our marketplace to the benefit of their roster,” stated MiTú’s Charlie Echeverry.

MiTú is backed by The Chernin Group LLC (TCG) Along with other investors including: Allen DeBevoise, Chairman, CEO and co-founder of Machinima; Advancit Capital, a venture capital firm founded by Shari Redstone and Jason Ostheimer; Quincy Smith of the internet and media focused merchant bank Code Advisors, and Juan Cristóbal Ferrer of Ferrer Comunicación in Mexico.

What: Two leading media buyers acknowledge the significant role of programmatic buying, particularly when it comes to efficiently targeting Hispanic audiences.
Why it matters: While many observers predict programmatic buying will amount to approximately half of overall U.S. digital advertising by 2017, programmatic buying has a bit more catch up to do in the U.S. Hispanic market.  Programmatic buying will expand into off-line advertising, including TV.

According to Marla Skiko, EVP, Director of Digital Innovation at SMG Multicultural, the use of programmatic audience buying technologies can be very efficient, particularly when it comes to target segments of the Hispanic demographic. Skiko and Lia Silkworth, Managing Director Tapestry, Starcom MediaVest Group participated in a panel moderated by Barry Frey, president & CEO of Digital Place-based Advertising Association, at today’s Eleventh Annual Hispanic Television Summit in New York City.

We want to buy Hispanic audiences in an efficient way. Programmatic trading helps as to do that.

Skiko noted that the use of programmatic trading technologies can also be a very valid argument to convince clients (marketers/advertisers) to spend against the Hispanic demographic. She added that going forward programmatic buying may also be applied to broadcast media. “It’s understood that the market is moving in that direction. That does not mean, however, that all buying will be done through programmatic trading,” Skiko concluded.

Video Agnostic Buying and Planning

Tapestry’s Silkworth spoke about substantial changes taking place in the broadcast advertising area. “Many agencies are looking at  video agnostic planning and buying. Upfronts are  no longer a TV team only affair.” Skiko agreed: “The discussion changed. It starts from a totally different place. It used to be we are buying a 30 second TV spot. Now it’s much more about content and measurability.” The game changer has been the emergence of online video and mobile as well as the increased measurability of digital advertising.

 

What:Marketers are gearing up early in anticipation for 2014’s Fifa World Cup, in Brazil. It is seen as the most important news event platform for Hispanics. Many marketers, including Gonzalo del Fa, president Group M Multicultural in New York City, began conversations with their clients in 2012 and have already closed some of those deals. Digital media has increased tremendously since 2010’s Fifa World Cup.

Why it matters: 3.2 billion people around the world watched the 2010 World Cup. In addition, as Group M’s del Fa puts it, the World Cup is “DVR proof: 90% of views are live.” That is attractive to marketers as viewers are less likely to skip commercials. Also, because of the many options people have to watch their favorite television shows after originally airing – YouTube and Netflix, as well as digital recording devices – sports programming is seen as a better bet.

The 2014 Soccer World Cup to take place next summer in Brazil will be a major factor in Corporate America’s marketing plan towards the U.S. Hispanic population. Already at the end of 2012, major agency executives started to discuss with their clients their involvement in next year’s major event.

“We started the conversations with our clients at the end of 2012 and we have already closed deals for some of them. We have only few negotiations left that we expect to finalize in the next weeks,” Gonzalo del Fa, president Group M Multicultural in New York City tells Portada®. Group M’s clients include major marketers like AT&T, Macy’s, Subway and Ikea. “We started looking at partnerships for our beer client for 2014,” says Oury Tamboura, Senior Media Manager at Horizon Media in Los Angeles, where she plans and buys Hispanic media for clients including Crown Imports (Corona). “We have been talking about how to approach the World Cup with many of our clients. Given the scope and scale of the event, there are many ways to get involved and integrate a World Cup strategy as part of a client’s holistic approach from now through the games next year,” says Marla Skiko, VP and Director of Digital Innovation for SMG’s Multicultural Division.

“The World Cup is the most important news event for Hispanics every four years. It’s the Superbowl, Final Four, World Series and NBA Finals all in one,” claims Penni Barton, publisher of the Spanish-language newspaper Al Día Texas.

“As we all know, World Cup is a huge event for the Hispanic community because ‘fútbol’ is part of our lives,” says Group M’s del Fa. Del Fa, who is based in NYC but was born in soccer-crazy Argentina, notes that the World Cup is also a truly global event as 3.2 billion people watched the 2010 World Cup around the world. “That is why many clients are looking at this asset as a global initiative, not just a local effort. Even in the U.S., the World Cup is not just a Hispanic event – over 24 million people saw the final between the Netherlands and Spain in 2010. Almost 9 million of them watched it on Univision and almost 16 million did so on ABC.

The Soccer World Cup is ‘DVR proof: 90% of views are live.’

One question mark remains in the midst of all the excitement. In mid-June millions of Brazilians took to the streets all over the country in social protests for more education, health and transport services. Protesters armed with screwdrivers and slingshots clashed with police near Rio’s legendary Maracana football stadium where Brazil defeated Spain to win a third successive Confederations Cup. According to many of the protesters, the Brazilian government cares more about the FIFA World Cup and Olympics than about education and healthcare. Despite the social turmoil, polls have shown more than two-thirds of Brazilians support their country hosting the World Cup for the first time since 1950. Sports media entrepreneurs do no foresee major disruptions during the 2014 World Cup. “We have full confidence in Brazil’s infrastructure and security, as well as the coming together of the people of Brazil in delivering a successful World Cup,” says Félix Sención, CEO and Founder of The Mundial Group.

For many brands sports marketing budgets can take a share of more than three quarters of overall marketing budgets. One such example is NAPA Autoparts, whose Hispanic Advertising Agency is Atlanta-based PM Publicidad. Napa Autoparts is the official sponsor of the Méxican Soccer Federation as well as of the Tour of the Méxican Soccer National team in the U.S.

One publication that receives mostly men oriented advertising is Fútbol Mundial. A publication exclusively devoted to soccer, it has a circulation of 904,000 and is published as an insert in the leading Spanish-language newspapers coast-to-coast. “For 2014, we are expanding circulation and are receiving bids to be part of the larger distribution during World Cup year,” says publisher Félix Sención. Sención also leads a digital ad network called Mundial Sports Network. “Mundial Sports Network is offering fully integrated digital sponsorships for the World Cup across all 4 screens. We reach millions of Hispanic sports fans across our network of affiliates, and we produce and publish original, branded sports content for our advertisers including full brand integration within our coverage,” Sencion adds.

Most importantly, as Group M’s del Fa puts it, the World Cup is “DVR proof: 90% of views are live,” says del Fa. In the era of time shifting technologies, this is extremely attractive to marketers, who know that live viewers are less likely to skip commercials.

Sports programming is a better bet for network broadcasters than almost anything else. The rise of online video providers – such as Netflix and YouTube, as well as the increasing use of digital recording devices – are giving audiences unprecedented choices about what they watch and when they watch it. That is why ratings for most TV networks have fallen sharply. The big exception is sports, which has been practically unaffected by the general ratings declines. According to a Nielsen study, viewers watched 97% of sports programming live in 2012, down slightly from 98% in 2008. Those same viewers watched just 75% of non-sports programming live, down sharply from 93% in 2008.

ESPN, which has aired every World Cup except one in 1982, has the English-language TV rights to the 2014 Soccer World Cup in Brazil. Fox won the rights to the 2018 and 2022 World Cups. Univision holds the 2014 Soccer World Cup Spanish-language broadcast rights. However, in 2011, Telemundo won the Spanish-language rights to air the 2018 and 2022 Soccer World Cups over Univision, which has aired every World Cup tournament since 1978.

Soccer World Cup broadcast rights belong to the most coveted content properties. Interestingly the rights to air in Spanish-language are worth more than the rights to air in English: Telemundo paid more than US $600 million for the Spanish-language rights to air the global soccer tournament in 2018 and 2022, more than the US$ 400 million Fox paid for the English-language rights.

While the networks sell TV ad space inventory to national advertisers, other organizations often sell to local and regional advertisers. This is the case of Time Warner Cable which sells local advertising into ESPN properties, including the 2014 Soccer World Cup.

While broadcasters usually get the lion’s share of marketer’s World Cup investment, digital and print media properties also typically boost their offerings during the World Cup and the weeks leading up to it. Al Día Texas’ Penni Barton, notes that the World Cup represents a tremendous opportunity for Al Día. “We’ll explore expanding our portfolio of print offers via special supplements, insertion campaigns, themed-content sponsorship’s and magazines. Likewise, we’ll explore leveraging opportunities for digital, mobile channels and events.”

‘It will be one of the largest sports events of the century: Time zone is just 1 hour difference from U.S. EST.’

Digital at the Core
The Soccer World Cup takes place every 4 years and the media and advertising landscape has changed since the 2010 South Africa World Cup, particularly digital media.

“The amount of digital viewers has grown robustly since 2010 and the digital inventory is broader across platforms and now includes online, mobile and tablets,” says Francisco Morillo, Digital Media Buyer and Planner at Hispanic Group in Miami. He adds that, nowadays “rich media provides a wide variety of creative ad units and online video ads retain the audience at one site for longer period of times.”

SMG’s Skiko notes that “as the use of digital media continues to grow across multiple screens and devices, it is important we approach any plan or program with digital at the core. The Soccer World Cup is no exception as we know engagement will be happening on many devices and in real time. We believe social and mobile will be especially crucial. Advertisers need to find the best ways for an overall integrated approach that capitalizes on how people will be not only watching, but also discussing, sharing and commenting on all aspects of the games and their teams.”

The Local World Cup: Grassroots Soccer Leagues
Grassroots amateur soccer events are a great way for many media properties to connect with the local community as well as to increase revenue streams from sponsorships. Copa Al Día, organized by Dallas/Ft. Worth Al Día, features 136 teams for approximately 1,500 local youth players, ages 5-14 years old, and is open to both select and recreational teams. Copa Al Día 2013 is presented by The North Texas Chevy Dealers Association in partnership with Burger King, MetroPCS, Azteca Dallas 55, and ESPN Deportes Dallas 1540 AM. New York City’s Spanish-language daily newspaper Diario de México USA organizes a similar league in the New York Metropolitan area.

Another grassroots soccer league organizer is Alianza de Fútbol Hispano, an organization exclusively focused on the organization of soccer leagues. Founded in 2004 by Brad Rothenberg and Richard Copeland, Alianza de Fútbol Hispano is one of the largest grassroots soccer programs in the United States, hosting amateur, soccer clinics, and access to pro scouts from the Liga MX, Major League Soccer (MLS) and American colleges and universities. Alianza de Fútbol Hispano recently struck a deal with LeadDog Marketing through which Alianza de Fútbol will launch the Alianza U program, in partnership with Verizon. The program is designated to help Hispanic players and their families understand and navigate through the college recruiting and admission process. Alianza U provides year-long access to students, helping them with the college application process, college recruitment requirements, financial aid and scholarship information.

LATAM Websites
Hispanics love to go to Latin American sports websites to follow major sports events. Journalists at these websites cover soccer matches with a lot of knowledge, passion and resources. Major sports sites include México’s mediotiempo.com, published by Time Inc. owned Grupo Editorial Expansion and Argentina’s canchallena.com (published by La Nacion) and ole.com.ar (owned by Clarin). Spain’s Marca.com (Unidad Editorial) and As.com (Grupo Prisa) also attract substantial U.S. Hispanic audiences.

Miami based Medula Network, an online ad network that targets the U.S. Hispanic and Latin American space, that grew out of PAL (Periodicos Asociados Latinoamericanos) offers U.S. Hispanic impressions and customized packages in the online sports sections of its Latin American newspaper affiliates. Medula CEO Vicente Jubes notes his network also sells U.S. Hispanic audiences that visit 100% sports oriented sites such as Marca.com, Ole.com.ar, Diez.hn, Sport.es, As.com, Libero.pe and Laaficion.com.

A CRM Tool and Media Vehicle
One company that has been able to develop a very strong database of Hispanic and non-U.S. Hispanic U.S. soccer fans is Sports Endeavors. It is known to many as Eurosport, the title of its soccer catalog, which has a circulation of 1 million a year and is dropped nationally 14 times a year.

Based in Hillsborough, North Carolina, Sports Endeavors, Inc. was founded in 1984 by the Moylan family to provide American soccer players with equipment and information. In almost three decades it has developed into an Amazon.com of soccer related items such as equipment, apparel, footwear etc…. Sports Endeavors has benefited from the fact that the U.S. has one of the most diverse soccer fan bases in the World. This fan base includes constituencies as diverse as Major League Soccer Fans, Hispanic Fans, European Fans as well as Amateur Soccer Players.

“Sports Endeavors sales to Hispanic consumers amount to approximately 20% of its overall sales volume,” says Vicente Navarro, Hispanic Market Director at Sports Endeavors. The company’s database includes more than 100,000 addresses of Hispanic active buyers and 6 million different data points on Hispanic households. Most of these clients receive the Eurosport catalog, which has an average page count of 100 pages.

85% of Sports Endeavors sales occur over its different websites (e-commerce). Its main website is soccer.com which according to Navarro receives more than 4.5 million unique users every month. Soccer.com showcases a selection of top of the line soccer merchandise used by world-class players and teams. It carries brands including Adidas, Diadora, Nike and Puma.

The U.S. Has One of the Most Diverse Soccer Fan Bases: MLS Fans, Hispanic Fans and Amateur Players.

Another feature of Soccer.com is that consumers can shop by players, countries or famous soccer clubs. Soccer.com also hosts official online stores for apparel and equipment of many famous international soccer clubs, including Real Madrid, F.C. Barcelona and Bayern Munich.

While Sports Endeavors Inc’s primary objective is to sell soccer and other sports related items, it has developed a large client database which it offers to marketers interested in reaching the U.S. and U.S. Hispanic soccer fan. The digital and print media Sports Endeavors offers includes Package Inserts, Inserts and ROP ads in the Eurosport catalogue, e-mail marketing as well as display and rich media advertising on soccer.com. Sport Endeavors clients include American Airlines, Budweiser, Lowe’s. ESPN Deportes magazine has been inserted in the past in packages that Sports Endeavors mails out to its Hispanic clients. Notmusa’s Record Magazine has also been inserted in the Eurosport catalog.

 

Excitement and some question marks after Yahoo! announced yesterday it it acquiring Tumblr for US$ 1.1 billion. (Even though Yahoo’s! CEO Marissa Mayer, promised “not to screw it up.”)

In the short-term it won’t have a lot of impact on Yahoo’s overall offering, let alone for U.S. Hispanic specifically

Tumblr is certainly a strong platform more than 102 million Tumblr blogs that attracted more than 29.2 million unique visitors  in March who made 6.6 billion page views according to ComScore in March. Tumblr also has a very young audience with 45% of its readers being under 35 years old. Very interestingly, Hispanics clearly over-index as Tumblr users.  Hispanics represent 17% of Tumblr users , almost twice as much as what their representation should be if their overall share of the U.S. Internet is taken into account.

Que Viva Tumblr! 

Segment

 % Tumblr Users

    % of U.S. Internet users

Multiple

Caucasian

64%

76%

0.85X

African-American

11%

9%

1.17X

Asian

7%

4%

1.55X

Hispanic

17%

9%

1.78X

Other

2%

1%

2X

Source: Quantcast

Will Tumblr help Yahoo! to monetize its U.S. Hispanic audience?

The big question in the advertising space  is if and how  Yahoo will be able to monetize Tumblr. We asked Marla Skiko, EVP, Director of Digital Innovation at Tapestry. According to Skiko “because the advertising/marketing potential on Tumblr to date has been fairly limited that in the short-term it won’t have a lot of impact on the overall offering, let alone for U.S. Hispanic specifically.”

Skiko adds that Yahoo will now need to determine how to best monetize Tumblr so they can scale up marketing and media offerings.  “It is a compelling platform from a user perspective, but still is pretty small and not nearly as mainstream as some of the other alternatives.  I am eager to see how Yahoo works to capitalize on this purchase and where they take Tumblr next.  It can be an interesting complement for some of the social experiences we are designing to reach the US Hispanic user, but right now it really is just that, a complement.  From our perspective, having more offerings that we can customize and make relevant for Hispanics is only positive.”

Tapestry, a division of SMG Multicultural, announced that Lia Silkworth, will take on full leadership responsibilities as Executive Vice President and Managing Director. (Read our recent interview with Silkworth).

In this new role, Silkworth will provide strategic vision as well as business management to the largest multicultural media unit in the US. Silkworth, known for her negotiation prowess and strategic vision has helped to increase Tapestry’s partnerships with several clients in her previous role as co-managing director.

“We are excited to have Lia Silkworth take on a larger role at Tapestry and bring with her new ideas and a new perspective for our clients and our team,” stated Monica Gadsby, CEO of SMG Multicultural.

Additionally, Danielle Gonzales, formerly Executive Vice President, Managing Director at Tapestry, will take on a new role as Executive Vice President, Managing Director at Starcom where she will provide leadership across some of Starcom’s largest accounts.  In addition to her new client responsibilities, Danielle will serve on Starcom’s  management board, and will continue to be a  board member for AHAA: The Voice of Hispanic Marketing.

“When you combine her passion for brand-building and strategic solutions, Danielle has consistently delivered innovation and results for our clients, time and time again,” said Lisa Donohue, Starcom USA CEO. “She is a skilled leader, who in this new role will only continue to drive success for the agency and our clients.”

Marla Skiko will continue to act as EVP, Director Digital Innovation at SMG Multicultural.