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Martha Kruse

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Walmart’s Every Day Low Prices (EDLP) policy is having a clear impact on advertising in multicultural media. The Bentonville, Arkansas, retail giant is scaling back TV advertising, newspaper circulars and in-store displays in an effort to refocus on EDLP. What Javier Delgado Granados, Multicultural Marketing Director at Walmart and Hispanic media executives have to say.

Javier Delgado Granados, Multicultural Marketing Director at Walmart, tells Portada that Walmart has reinvigorated its focus on EDLP and that this has the following implications for advertising: “Operating under this model affects all we do at Walmart, including how we negotiate with our suppliers, how we advertise and how we go to market with price. In comparison to last June, we’ll run roughly half of the number of circulars. At the same time, the items and prices that are highlighted will last two weeks vs lasting one week. We’re focused on long-term loyalty, not a weekly sale.” Delgado’s comments refer to Walmart’s newspaper advertising in general, but Hispanic newspapers have also been hit. (Check out our exclusive interview today with Trevor Hansen, CEO of EPMG, the firm that places Walmart circulars in Hispanic print media).

In comparison to last June, we’ll run roughly half of the number of circulars.

Walmart3Delgado adds, however, that digital media expenditures are increasing. “We’ve also increased our digital spend – serving solutions to customers we know are looking for particular products while searching and shopping online.” “Our intention is to follow the customer and the General Market and Multicultural media behaviors are shifting dramatically,” Delgado concludes.

Newspaper Inserts have been a popular vehicle for big box retailers, especially when they are placed in large circulation home-delivered newspapers. Martha Kruse, Multicultural Marketing Director at Rooms to Go, tells Portada that she thinks that “the home-delivery distribution method of Hispanic newspapers can be very powerful.” Rooms to Go places English-language circulars in many Hispanic newspapers including Al Dia de Dallas and La Voz de Houston.

Hispanic Publishers to Walmart: Listen to your Regional Marketing Managers

WalmartNow Hispanic newspaper publishers are encouraging Walmart to bring the creative process and media planning to second and third tier suppliers who are on the ground and understand how the communities engage with print and their brands.
“If Hispanic market is one of their main goals, we hope Walmart will start applying their own retail strategy, visit their stores and listen to employees and local stores managers to media and go and visit the publications and the organizations who place the media,” says Martha Montoya, publisher of Seattle, WA based El Mundo newspaper. I am “very disappointed in Walmart’s short-sidedness in regards to the Hispanic Market. All indicators prove Hispanic Language Consumers are driving retail sales for Walmart and its peer retailers,” says Zulema Tijero, Sales Manager at Washington DC based El Tiempo Latino (owned by The Washington Post).

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Anita Grace, president of Anita Grace Ad Execs, and a sales representative for Freedom Communications, Gannett and AIM Texas Hispanic newspapers, says that “over and over newspaper inserts have been proven effective for retailers. I believe Walmart is getting caught up in the ‘apps and digital is enough and it’s cheap hype’. I would encourage my Hispanic print peers to develop relationships with their regional marketing manager and make sure they are aware of the cut. When they see a dip in numbers they know what to blame. Also we should encourage the regional managers to report back to corporate and ask for this program to be re-established.”
Other Hispanic newspaper publishers point out that it is their experience that their readers want the flyer in hand and that this includes Millennials. In the Hispanic market, there is no digital option to substitute a hand-delivered quality product to the front door that encompasses multiple generations, they claim.

Hispanic: Down in Digital and Mag. Advertising

According to Media Economics Group, overall, Hispanic magazine ad spend in the Department Stores category, which includes Target, Walmart and other big box retailers) is up by about 130% this year. However, so far this year Walmart ad spending in Hispanic magazines is $285,200 down 43% from $500,910 same period last year. This year, Walmart ranks sixth (down from third in the same period last year) among all retailers in ad spending in Hispanic magazines (Macy’s is first with US $2 million in spending).

While, as Delgado points out Walmart may be spending more to reach out to consumers via digital media, its activity “has been virtually non-existent on Hispanic digital properties,” says Carlos Pelay, president of Media Economics Group. .”In contrast, during January – May, 2014 Walmart accounted for 25.8% of all ad occurrences in the department store retail category on Hispanic websites – second only to Target (35.6%).

Hispanic Magazines Spending of Retailers (Jan-Jun 2015)

Company20142015Change
Macy’s, Inc.$383,679$2,004,908422.5%
JC Penney$0$471,081na
Target Corporation$312,257$407,02130.3%
Wal-Mart Stores, Inc.$454,690$285,200-37.3%
Saks Incorporated$9,720$9,7200.0%
Sears Holdings$222,747$0-100.0%
TOTAL$1,383,093$3,177,930129.8%

SOURCE: Media Economics Group

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The jury about the viability/success of sites targeting Hispanic (women) in English is still out (e.g. see the recent closures of CNN Latino and NBC Latino). Portada asked  media buyers at corporations and agencies about their views. What media buyers at Maybelline, Rooms to Go and Haworth Marketing and Media have to say.

Acculturated Latinas

Moguldom Media Group just introduced LatinaMadre.com a bicultural site targeting acculturated Hispanic moms. The rationale for the launch  seems pretty understandable when explained by Moguldom Media Group Chief Revenue Officer Christian Gonzalez: “There is a lack of information  for US-based Latinos/Hispanics,  but more so in the useful/factual information arena – Information people can use in their day-to-day lives. As far as LatinaMadre.com is concerned, we have a fair amount of content targeting Hispanic women.”

Quite a few media properties have been betting on reaching and engaging acculturated Hispanic moms. Demographic facts support  their efforts: Hispanic women are the growth engine of the U.S. female population and are expected to represent 30% of the total female population by 2060, while the non-Hispanic white female population is expected to drop to 43% according to a recent Nielsen study. But what do media buyers have to say? Are acculturated sites reaching the Latino population good enough? Is English-language  content targeting Hispanics still too scarce?

When it comes to digital media reaching out to the bicultural Latina, very few sites update their content often enough, particularly if you compare it to general market sites.
Daisy Terrazas-Cole
Daisy Terrazas-Cole, Multicultural Media Strategist, Haworth Marketing and Media


Daisy Terrazas-Cole, is  a Multicultural Media Strategist working at Haworth Marketing and Media
in Minneapolis, MN. Terrazas-Cole works on the multicultural strategy for Target whose main objective is to reach bilingual Hispanic women  that are milennials and navigate between both cultures. Terrazas-Cole notes that some sites do a good job, including some Spanish-language sites who provide international news and sites targeting the general market in “pure” English,  but that “there seems to be a big gap when it comes to content targeting the bicultural Latina.”
Daniel Villaroel, Director Multiethnic Marketing at Maybelline New York and Garnier, says that “for the general market, there continues to be a growth trajectory for digital content. In comparison to the Hispanic market, some content produced in English is meeting the needs of some Latinas.  However, I think more content that’s of better quality is necessary for Latinas in both English and Spanish. I’m seeing a huge appetite for Spanish language/bilingual content.” (BTW: the data on the table at the end of this article supports Villaroel’s view). He adds that his brands “have fully robust Spanish language web and mobile sites.  We utilize a variety of tools at our disposal to reach Latinas digitally that include standard display, branded content and video among other tactics.”

Martha Kruse
Martha Kruse, Senior Director Multicultural Marketing, Rooms to Go

Martha Kruse, Senior Director Multicultural Marketing at Rooms to Go, notes that “there is a good amount of media content targeting women in my opinion. Depending on the category you can find from well-established publishing house to bloggers, etc. Now, in turn when it comes to targeting Hispanic women, digitally, I think no one owns it yet.”

As for targeting Hispanic women, digitally, I think no one owns it yet.

The costly need to update

“When it comes to digital media reaching out to the bicultural Latina, very few sites update their content often enough, particularly if you compare it to general market sites,” says Haworth’s Terrazas-Cole. It is a Catch 22 issue: If digital properties do not have enough good quality and frequently updated content they may not attract enough advertising dollars, which in turn are not sufficient to finance the editorial operation. Enedina Vega-Amaez ,Vice President/Publisher at Meredith Hispanic Ventures Group, contends that frequent updating  “is a question of resources and having the staff necessary to respond to what is current and trending since the web is so immediate.  In the magazine publishing world you are publishing for a monthly or a weekly, on the web it’s daily, if not hourly.”

The table below shows that English-language (general market)  sites in the beauty, lifestyle, fashion and style categories  are most visited by Hispanic women rather than sites that specifically target acculturated Latinas. It will be interesting to see if in the next 10 years this pecking order can be changed by new start-ups within media that exclusively targets acculturated Latinos.

General Market sites  lead when it comes to target acculturated Latinas

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Properties

Total unique visitors (000)

Lifestyles – Beauty-Fashion/ Style

6914

Glam Style

1067

Stylelist Sites

875

TotallyHer – TheFashionSpot

626

ComplexStyle

481

Hearst Beauty & Fashion Network

468

Livingly: Style

378

Enfemenino.com Sites

297

POPSUGAR Fashion Beauty

292

Refinery29

280

Glo

266

Source: comScore – December 2013