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Beam Suntory has announced Jessica Spence will fill the newly-created role of President of Brands, effectively replacing the Chief Marketing Officer. Spence will be responsible for managing the global P&Ls of Beam Suntory’s largest brands, which include the whisky brands Jim Beam and Maker’s Mark.







Toyota Motor North America announced that Cooper Ericksen will be promoted to Group Vice President, Product Planning and Strategy, effective Aug. 5. Ericksen has been with Toyota since 1991. He will replace Andrew Coetzee, who plans to retire on Aug. 2 after 31 years of service to Toyota.






Multi-channel engagement platform Leanplum has appointed Kate FitzGerald as President, effective immediately. Before joining Leanplum, FitzGerald was President of Americas Sales for Marketo







WPP’s Ford-dedicated agency GTB has announced the appointment of Robert Guay as CEO. Guay, who will replace Satish Korde in late July, will lead the evolution of the agency’s relationship with its flagship client, Ford Motor Company. Satish Korde will become Chairman Emeritus of GTB, assisting Ford on strategic projects. The announcement comes less than a year after Ford announced plans to divide its US $800-million creative business between several shops, moving away from GTB’s dedicated model.






AT&T’s WarnerMedia unit has named Ann Sarnoff as chair and CEO of Warner Bros. Sarnoff succeeds Kevin Tsujihara, who left after unethical behavior was discovered. Sarnoff will be based in Los Angeles and will officially join the company later this summer.






Eventbrite, a global ticketing and event technology platform, has announced the appointment of Casey Winters to Chief Product Officer. In this role, Winters will lead the global product management, design and research teams to drive innovation for event creators around the world.






Apple audio brand Beats by Dr Dre has appointed former Electronic Arts (EA)vice-president Chris Thorne as its Global Chief Marketing Officer, following a five-month search. Thorne will oversee the brand’s global marketing across all channels.






Wendy’s has promoted Carl Loredo to Chief Marketing Officer from his role as Vice-President of Brand Marketing, which he took on when he joined Wendy’s in 2016. He will report directly to Kurt Kane, who is being promoted to US president and chief commercial officer.






What: Standard Media Index has released market actuals and updated media forecasts through 2023. SMI expects the full U.S. advertising marketplace to expand by 8% in 2019.
Why it matters: The TV market is heavily concentrated; the top seven media owners account for 84% of ad spend season-to-date. Through April 2019, upfront revenue is down 0.5% annually. On a two-year basis, upfront revenue was down 3.6% on an average weekly basis.

According to Standard Media Index’s forecasts, U.S. advertising could expand by 8% in 2019 excluding cyclical events like the Olympics and World Cup. While major marketers are anticipated to grow a mere 2.5%, small and medium-sized businesses (SMB), who generally self-manage their ad spending through digital tools, will grow by nearly 14%.

SMI has noted that major marketers have limited incremental investments in search to a +1.6% growth level through the first four months of 2019, down from double-digit growth in 2018. Similarly, incremental investment in social has been reduced to +24% growth level through the first four months of the year from +50% in the same period last year. According to SMI, social grew by over US $150 million in the January to April period in 2018, while in 2019 that figure was “only” US $25 million.

Ad formats across all digital platforms are showing long-term growth. On a two-year CAGR basis, audio is up 7%, search is up 10%, display (driven by social) is up 11%, but video tops the list with growth at 15%. Actually, video is the dominant content and ad format in the U.S. among major marketers, as 63% of ad spending is being invested with video publishers or, growingly, digital video ads on non-video publishing.

SMI points out that the TV market is heavily concentrated; the top seven media owners account for 84% of ad spend season-to-date (Oct. 2018 – Apr. 2019). However, the actual delivery of the 2018-2019 season-to-date is not experiencing the level of advertising activity expected last summer, when it was reported upfront demand was between +3% to +4% overall. In reality, through April 2019, upfront revenue is down 0.5% annually. On a two-year basis, upfront revenue was down 3.6% on an average weekly basis.


Top Media Owners (2019-to-date)
10.4%(new) Walt Disney
9.2%NBC Universal
8.6%CBS Corp.
5.5%AT&T (incl. WarnerMedia)
4.2%(new) FOX Corp.

Habib Khoury is the CEO of MASS Exchange, a revolutionary platform that could be described as a futures market for buyers and sellers of media. We sat down with him to discuss MASS Exchange’s partnership with Mundial Sports Network, a leading Latino sports network with magazines like Futbol and Beisbol as well as digital properties like VidaLatina.com, FutbolMundial.com, BeisbolMundial.com and BoxeoMundial.com, and how his company applies a financial model to a complex industry plagued by a lack of transparency (Partner Message).

Providing A Transparent Solution to Publisher’s Challenges

Digital publishers face significant challenges when trying to sell

Habib Khoury, CEO, MASS Exchange
Habib Khoury, CEO, MASS Exchange

their inventory in programmatic marketplaces. They defend against fraudulent traffic which creates significant oversupply; they defend against other publishers that are willing to sell anything at pennies; they defend against buyers who know much more than they do about their audiences and dictate terms; they defend against technology intermediaries that extract too much value for handling a transaction; and they defend against having to bear the costs of the ever increasing complexity of the technology associated with participating in programmatic markets. “All of these pressures keep driving down publisher revenues while increasing their costs,” Khoury adds. “Unlike in other markets like Europe, digital publishers have not been effective at organizing themselves into large selling groups to aggregate audiences and increase their pricing power vis a vis buyers and share the costs of technology.”

MASS Exchange provides publishers like Mundial with tools to help them act as a virtual selling group and seamlessly manage inventory they sell from their owned and operated sites and inventory they sell (or could sell) on behalf of their syndicated partners. In addition, MASS Exchange’s marketplace seeks to transform how buyers and sellers interact by enabling them to transact in a transparent, price-discovered, and balanced programmatic futures marketplace.

MASS Exchange is the first to implement in programmatic media a market model inspired by finance, which is based on what is called a “price discovered market.

Khoury explains: “MASS Exchange is the first to implement in programmatic media a market model inspired by finance, which is based on what is called a ‘price discovered market.'” In this market model, buyers and sellers retain full control over every aspect of the trade, including transparency. Product packages, prices and transaction rules are set by the buyer in the form of buy-orders, and the seller in the form of sell-orders. “MASS Exchange’s matching engine matches buy-orders to sell-orders based on the rules set by each party, which means that supply and demand can be optimized for both sides. If either the buyer or seller is unhappy with the value of a trade, a match does not take place. The platform is flexible and supports one-to-one, one-to-many and many-to-many deals.” Again, a win-win for buyers and sellers.

The Current “Open Market” in Programmatic is Broken 

MASS Exchange is essentially providing a transparent alternative to what Khoury believes is a broken programmatic market. Due to a lack of transparency and price discovered market today, sellers do not know how much the buyer, which is ultimately the brand, values or pays for their inventory in current open programmatic markets.

Khoury gives us an example: “Imagine that in order to reach a specific set of audiences through their agency, Nike spends $10 and the agency buys $10 on behalf of Nike programmatically, only $3.50 goes to buy the actual media. The rest ($6.50, which includes the agency fee of $1) is consumed by the multitude of intermediaries that handle the transaction and sit between the buyer and the seller,” he explains. “In addition, Nike has no idea who they are buying from or which intermediary is shaving what amount from their media spend. This is a broken business model. By comparison, in financial services each transaction costs a fraction of a penny to transact over an exchange, and buyers and sellers have full transparency.”

Khoury elaborates: “On the other hand, if one takes that same Nike example and applies it to MASS Exchange’s market, that $10 in media spend would buy $8 in media (versus $3.50), and the $2 balance would be split in a transparent manner between the agency and MASS. We created MASS Exchange as a transparent marketplace (a real exchange) that can expose inventory packages and prices to buyers and sellers so that all parties can have a better understand of the values traded.”

In MASS Exchange, buyers and the sellers control the level of opacity they each require to maximize their trading strategies. Transparency, or the lack thereof (i.e. opacity), is not imposed upon them arbitrarily by market intermediaries. We help both sides win.

Khoury adds: “In MASS Exchange, buyers and the sellers control the level of opacity they each require to maximize their trading strategies. Transparency, or the lack thereof (i.e. opacity), is not imposed upon them arbitrarily by market intermediaries. We help both sides win.”

“What We Trade Is Complex” 

“Buying and selling media is more complicated than buying and selling coffee,” Khoury says. “With coffee, you trade based on the quality of the grain, the price and the time of delivery. With media, you have to trade for the right message, to the right person, at the right place, at the right time, using the right metric. And in order to increase the probability that an advertising message will be effectively consumed, it must be done within the right context,” he continues.

“If you’re in the market for a car and receive a brand message sitting in the grocery line, chances are good that you will ignore it. But if you are browsing a car site you like, you are much more likely to be receptive to such an ad message.” Context is integral to the publishers’ brand identities and current “open market” programmatic environments do not support the notion of context. MASS Exchange is the only programmatic marketplace that values a publisher’s brand, like Mundial’s, by assigning a tradable value to that brand/context.

“MASS Exchange is the only marketplace that breaks out the inventory bought and sold into two prices: one price for the audience, and one price for the placement/context,” says Khoury. Like in real estate, in which there is a price for the building as well as the land, when added together, you have the total price or value of the inventory. In this analogy, each audience is “akin to the value of the building absent the land it sits on,” and “should have the same value to a brand regardless of where you consume their add.” The placement or context of that ad is where the premium exists, as someone who is on the market for a car will be much more likely to convert on a Toyota site.

Since publishers need to make sure that their brand and content attracts its target audiences, those that do a better job of this should be able to “charge a premium for that value in programmatic markets, especially when they can sell their inventory to buyers directly over the phones” through MASS. So the placement/context value is similar to the value of the land. “The ability to charge separately for context in any programmatic market only exists in MASS Exchange,” Khoury says.

Bringing Buyers and Sellers Together Transparently

“The absence of more transparent marketplaces and clear performance metrics on both sides of the trade insures that many of these problems will not go away any time soon. And while brands have started to demand more transparency in how their ad dollars are spent, the agencies and programmatic intermediaries’ responses have been halfhearted at best,” Khoury laments. “This means that open programmatic marketplaces are likely to remain structurally opaque, buyers will continue to be suspect of the values they receive from publishers and sellers will continue to see downward pressure on their inventory/audience values.”

“Humans have a hard time managing complexity at scale,” Khoury says. “Our belief was that the financial services had already solved for the financial engineering challenges that come with trading complex assets like media and advertising.” MASS Exchange is, indeed an exchange, but it is “retrofitted to support the unique challenges we have in our industry.”

MASS Exchange Perfect for Publisher like Mundial Sports Network

Khoury sees MASS as a perfect fit for a publisher like Mundial for several reasons: MASS Exchange’s sell-side tool (Liquid™) curates and optimizes inventory for sale at scale before anything is exposed to the market, helping customers like Mundial manage the ever increasing complexities of programmatic trading. Liquid™ enables Mundial to organize, package, price and optimize everything they have to sell, so that “no value is left on the table,” says Kyle Harris, EVP at The Mundial Group.

“Liquid™ makes it possible for Mundial to buy inventory from syndicated partners and resell that inventory to brands and agencies, virtually extending their audience reach (i.e. more to sell) and simplifying tracking and management on one platform. And when Mundial is ready to trade, MASS Exchange’s marketplace makes it easy for Mundial to sell programmatically its most valuable assets, which today it has to trade manually over the phone in order to get the best prices/values,” Harris continues.

Bottom line: “MASS Exchange provides Mundial with a unified platform to maximize its revenues from any channel, programmatic or otherwise, while maintaining full control and transparency over how, when, to whom and at what values their inventory is traded,” says Khoury.

What is clear is that if the programmatic model must change, Khoury is one of the first to apply this type of financial approach to the media industry in an attempt to increase transparency and control in highly complex trading. Luckily, Mundial Network was happy to put his theory to the test.

What: WPP’s MEC is car rental company Hertz new media agency of record in the US, Canada and Latin America.
Why it matters: MEC will replace incumbent agency Florida-based FKQ Advertising.

Car rental company Hertz has appointed WPP’s MEC as its new media agency of record in the US, Canada and Latin America.

The win follows a “media pitch which consolidates media investment, planning, strategy, digital, SEM, SEO, mobile, analytics and insight, and affiliate marketing with one agency,” according to MEC.

MEC will replace incumbent agency Florida-based FKQ Advertising for media planning and buying duties.

“We’ve determined that MEC is the right media planning and buying partner for Hertz Global and our portfolio of brands. We look forward to tapping their strategic planning, creativity and best-in-class analytics and insights capabilities in the digital space as we go to market in support of our Hertz, Dollar and Thrifty brands,” said Hertz’s EVP and chief marketing officer Matt Jauchius on the appointment.

In 2015, the company reported total advertising costs of US$170 million.


See also:
SALES LEADS LATAM: Marriot, Hertz, Dove…

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Entertainment and media spending will hit US$720 billion by 2020, up from US$603 billion in 2015, while internet advertising will overtake broadcast advertising in the U.S. for the first time, according to the finding from PwC’s annual Global Entertainment and Media Outlook report, the company’s five-year economic forecast for media and entertainment industry revenue and ad spending.


The US to remain the leading internet advertising market in the world

Internet advertising will advance double-digits over the next five years(2016-2020) and will remain a hotspot for media industry growth and business model shifts,  according to the US entertainment and media outlook. In 2015, internet advertising generated revenues of US$59.6 billion and that number is projected to rise to US$93.5 billion by 2020 (9.4 percent CAGR).


US internet advertising revenue will continue to surge forward, with mobile seeing the most rapid growth–all forms of mobile advertising will continue to grow in the coming years.

One key driver is the shift in search from laptops to mobiles, with mobile paid search internet advertising having seen tremendous recent growth. Also of note is video internet advertising revenue, which is among the fastest-growing sub-components of the US Internet advertising market.

The biggest advertising gains are expected in mobile advertising, which was responsible for 34.7 percent of total internet ad revenue in 2015 at US$20.7 billion and is projected to rise to 49.4 percent by 2020.


Mobile video internet ad revenue will increase from US$3.5 billion in 2015 to US$13.3 billion in 2020 (a 30.3 percent CAGR).

However, while internet advertising continues to grow at an increased rate, there are some headwinds brewing, triggered by challenges such as transparency, ad fraud, and privacy.

In today’s media landscape, can anyone be a “media company?”

EMC-Outlook-US-web-TV-and-Video-OTT_new_normalAccording to the US entertainment and media outlook, the next five years will hold major changes for how people watch TV and video.

As consumer wants and expectations continue to change, so too does the TV and video industry. Today’s and tomorrow’s definition of what it means to be a “media company” will continue to evolve, as companies — not just entertainment and media companies — invest in content and direct customer media relationships.

EMC-Outlook-US-web-TV-and-Video-Operators_fight_for_eyeballsWe will continue to see a rapid increase in new entrants and competitors in the space as subscriber-based businesses continue to consolidate. Operators are also attempting to target cord-cutters and cord-nevers by marketing their OTT streaming and download services–two areas that will represent tremendous growth potential for this industry’s foreseeable future.

U.S. TV advertising revenue is forecasted to increase from US$69.9 billion to US$81.7 billion in 2020, at a compound annual growth rate (CAGR) of 3.2 percent.

US video gaming hits the next level—what’s driving the growth?

video-games-2According to the US entertainment and media outlook: 2016-2020, the video games industry thrives over the next five years. Total Video Games revenue is epected to grow by 3.6% up to US$20.3 billion in 2020.

The shift to digital is well under way in the US video games sector, but physical persists–the industry as a whole will see solid growth over the next five years. Video games advertising revenue will continue to grow over the forecast period, more so than in other markets given the mature nature of both gaming and advertising the US.

Virtual reality marks another exciting area of growth in this space, with US companies at the forefront of driving the VR platforms, developing camera technology, and building compelling content. Competitive gaming–known as eSports–is also an area of particular interest and growth, and one that will continue to grow in prominence as local awareness grows here in the US. eSports has the potential to drive significant direct and indirect revenue over the forecast period.


What: impreMedia recently announced the creation of IM Studio ñ, its in-house marketing solutions service provider.
Why it matters: More media companies are starting to open their own marketing solutions divisions as part of their growth strategies.

Jeffrey Duque
Jeffrey Duque, VP of client solutions at IM Studio ñ.

For years the media company impreMedia has been providing specialized content for Hispanic audiences in the U.S. through different print and digital brands such as La Opinión, El Diario and La Prensa. But since 2014, the team started receiving requests to create personalized solutions for marketing agencies and their clients and become a sort of personal publisher. “We soon realized that there was a huge opportunity in this market,” remembers Jeffrey Duque, VP of client solutions at IM Studio ñ.

“Since we are experienced in generating content, we saw the chance to offer agencies and their clients the opportunity to generate content for them and help them create their own media,” ads Duque. With this goal in mind, IM Studio ñ was launched in January 2015 to become an in-house marketing solutions service provider, specialized in the Hispanic and multicultural market.

We soon realized that there was a huge opportunity in this market.

As a marketing solutions service provider, IM Studio ñ works as an independent institution, separate from impreMedia. For example, when planning a client’s media buy, impreMedia is just one more option, and is not given any special preference. “We offer a lot more thab just our own media,” says Duque

Also, once the strategy and the campaign are built, it becomes property of the client. They get to use what IM Studio ñ creates as they wish, and with whomever they want. “When, for example, we write a story in form of native advertisement, they can sell it to any other paper or content provider: it doesn’t have to be published on impreMedia’s pages,” he explains.

“When planning a client’s media buy, impreMedia is just one more option.”

To create a broader impact when building a campaign, the agency is aiming to work with a similar model like that of Buzzfeed. According to Duque, Buzzfeed analyzes the distribution points first, and then uses that insight to create content. “We are not there yet, but we are looking at the same strategy.”

To make sure their campaigns are working, the team is very passionate about measuring every phase. “It is very important to measure the whole process so you can make sure you are having the impact you are looking for. This is also why we offer flexibility to make sure we are meeting those KPIs,” explains Duque.

After little more than one year in operation, one of the challenges the agency faces is to differentiate itself from its mother company. “The relationship with impreMedia is good because it has opened so many doors for us. But at the same time, it is also hard to differentiate ourselves and make it clear that we are not trying to sell media, but that we are here to sell marketing solutions. It is a process of evangelizing what we are doing,” explains Duque.

Check out: Learn how L’Oreal is revolutionizing Content Marketing at PortadaLat

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What: Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record.
Why it matters: Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

gELngik-_400x400Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record. It will be supported by SocialCode for digital in North America. Essence has been tapped to support Visa’s programmatic efforts on a project and regional basis.

Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

The review begun earlier this year and shorten the list of contenders to finalists OMD, Starcom and Essence. OMD was the incumbent, and held the account for many years.

Visa spent US$112 million on U.S. measured media in 2014. That’s 13% less than the company spent on measured media in 2013.

What: Telecom Giant Altice has acquired Cablevision in a US$9 billion deal.
Why it matters: Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.The deal includes the Long Island tabloid Newsday and local Channel 12.

zx0-TG32_400x400Dolan family is selling Cablevision, the flagship cable company it founded more than 40 years ago, to France’s telecom giant Altice for US$9 billion,

The deal also includes the Long Island tabloid Newsday and local Channel 12.

Following this deal, Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.It will also gain control of the 400,000 circulation newspaper and the seven regional Channel 12 cable news networks.

Cablevision was founded in 1973 by Dolan family patriarch Charles Dolan.The company took control of Madison Square Garden and its Knicks and Rangers sports teams in 1997 before spinning them off into a separate company in 2010.Today,Cablevision is valued in US$$7.9 billion. Over the past 12 months, Cablevision has increased its stock price by 48 percent, and is up 38.3 percent year-to-date.

The cable industry has been consolidating for years — and Cablevision, like many other pay-TV outfits, has been the subject of many sale rumors in recent years.

But now,  Charles Dolan has retired and James busy is serving as the executive chairman of MSG and on the board of family-controlled AMC Networks, so maybe is right for the family to sell one of the pieces of its sports, media and entertainment empire.

Altice’s owner is part of a wider effort by the company to expand its US holdings.In May, telecom giant acquired a 70 percent stake in St Louis-based Suddenlink — a deal that valued the Midwest cable company, with about 1 million subscribers, at US$9.1 billion.


What: The Wall Street Journal is rolling out “What’s News,”its first mobile-only product , a paid  news app.The projects is aimed to support subscribers migrating to digital platforms.
Why it matters: Digital platforms are becoming popular among publishers who want to reach readers on mobile devices.Just like the WSJ, the New York Times is also turning to digital to counterpart print revenues downward trends. Not only for advertising but also for paid subscriptions. According to a recent WAN-IFRA report circulation revenues (print and digital) topped advertising revenues  for the first time for newspapers worldwide in 2014.

wsj_savedThe Wall Street Journal is rolling out its first mobile-only product, a paid, digest-style news app that consolidates digital and reconfigures its newsroom through staff buyouts.

The app, called “What’s News“, will be produced by a team of journalists and offered as an add-on for subscribers.

The new app is aimed to support its almost 2.2 million subscribers’ loyalty, out of which at least 700,000 are digital-only subscribers,as the Journal marches toward a goal of 3 million paying customers by 2017.The Apphas been described as a scan of the day’s most important news stories broken down for readers on the go. They also said it’s being talked up internally as a key component of the Journal’s digital strategy.

The new app is aimed to support its almost 2.2 million subscribers’ loyalty, out of which at least 700,000 are digital-only subscribers

Digest format

Digital is becoming popular among publishers who want to reach readers on mobile devices, where there’s a race to monetize audiences that access headlines thorugh their smartphones.

Apple has also released a new mobile news app  to give users a mix of stories from different publications. The New York Times already has “NYT Now,”a  news app that it is trying to scale as an advertiser-supported product after the app failed as a paid offering. Yahoo’s News Digest has gained popularity as a twice-daily blast of  stories as a morning and evening newspaper.

News Corp.,WSJ parent company, expects the new digital projects to help diminished print revenues, which have suffered an industry-wide downward trend as readers and advertisers are turning to digital platforms. Journal advertising revenues were down 11 percent in the third quarter of 2015, which included a 9-percent decline in the news and information segment that encompasses the Journal.

WSJ is expected to pump more newsroom resources into mobile initiatives like What’s News in the coming fiscal year, which begins in July.

Timothy Martell, executive director of the Indepenent Association of Publishers’ Employees, a union that represents 477 U.S.-based members of the roughly 1,800-person combined global newsroom of the Journal and Dow Jones’ Newswires, noted that there have lately been several dozen involuntary cuts outside of the newsroom. Layoffs are possible within the newsroom if the buyouts do not achieve management’s desired cost efficiency.

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What: Wells Fargo has shifted its Media and Digital Business after a review that started in February and has not yet been finalized. OMD will pick up Hispanic media from Acento Advertising.
Why it matters: Acento Advertising has handled Well Fargo’s Hispanic Media buying for many years.

N5L2uOTF_400x400Following Wells Fargo latest review, Omnicom Group shops OMD and Organic are said to be in advanced negotiations to take on business handled mainly by Interpublic Group’s units.

OMD, lead agency on traditional media planning and buying, will add responsibility for digital and search, which was previously handled by Interpublic’s UM. In addition, OMD will pick up media planning and buying on multicultural ads, which had been split among agencies like Muse, DAE and Acento.Wells Fargo is also expected to shift its digital creative business from Interpublic’s MRM to Organic.
Acento Advertising has handled Well Fargo’s Hispanic Media buying for many years.  Oscar Mendoza,  Interactive Media Buyer at Wells Fargo spoke last fall at Portada’s Evolving America Summit at Digital Hollywood about Wells Fargo’s Hispanic digital initiative. Mendoza has since moved to work as Digital and Social Media Strategist at Earth Island.

Wells Fargo spent US$177 million in media in 2013.

A year ago Wells Fargo replaced longtime creative agency DDB with its Omnicom sibling shop BBDO after a review.Wells Fargo is the 70th largest advertiser in the U.S., spending a total of US$610 million in 2013 on advertising and promotion, according to its 10-K.  In the Hispanic market, Wells Fargo has sizable initiatives in the Financial Literacy and Sports Marketing sectors. The company spent US$170 million in U.S. measured media in 2013,according to Kantar Media, with more than half devoted to network TV, cable TV and digital display.

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