Diageo, the world’s largest producer of spirits and beers, spent US $2.5 billion in marketing in 2021, according to Statista. “At Diageo brands lead with culture,” Jennifer Yu, Vice President, Brands in Culture North America at Diageo, tells Portada. Marketing with cultural intelligence has become crucial for corporate success in Multicultural America. We conducted an interview with Yu to ask her how she does cultural marketing at the beverage giant.
Before Yu entered her current position at Diageo in August 2021, she worked as Senior Global Events Lead, High Touch Experiences at Apple, Inc. Contrasting the approach to marketing at both companies, Yu asserts that “at Diageo brands lead with culture. At Apple they lead with product.” After her experience at Apple, Yu wanted to go back into cultural marketing, where she had occupied positions prior in her career, as she is very interested in the “human aspects that drive the connectivity of all the diverse cultures in the United States.”
Yu’s role at Diageo is new and, in her words, aims at “driving a unified platform where all Diageo brands can show up in one cohesive space.” An example of such a platform is the recent partnership between Diageo brands Johnnie Walker,Tequila Don Julio,Tanqueray, & Smirnoff Pink Lemonade with House of Slay (Phillip Lim, Prabal Gurung, Laura Kim, Ezra J. William, and Tina Leung), an AAPI founded and fashion-forward collective with the mission of stopping Anti-Asian hate and discrimination.
We work on driving a unified platform where all Diageo brands can show up in one cohesive space.
As the Vice President, Brands in Culture North America, Yu leads a team of 12 marketers who drive the integration of the brand portfolio’s multicultural marketing efforts into a cohesive strategy and create cutting-edge initiatives uniting entertainment endeavors with strategic partnerships to launch and amplify new brand narratives. Yu and her team are part of Diageo’s Center of Marketing Excellence which, and unlike Dish and Wells Fargo, does not have media budget decision making power – it does for PR and experiential marketing-, but issues recommendations to the brand marketers in each of the product lines. “We work across the portfolio of brands driving experience, influencer and social media. We have a consultative role with brand managers and work hand in hand with them on a strategy for all brands through one cohesive platform,” Yu says.
How Does Culture Impact Marketing?
Yu notes that each brand at Diageo has a brand purpose. Yu and her team are unifying brand purpose together in order to highlight different cultures. In the case of the AAPI Heritage Month 2022, House of Slay initiative. Diageo wanted to create a platform for underrepresented voices in the AAPI community to show its rich heritage while combating Anti-Asian hate .”We wanted to show rich heritage and culture across the Asian diaspora. We liked the activity component of House of Slay,” she notes. “The Asian diaspora is composed of 40 different communities. we did not want to be monolithic and celebrate all of them. That is why we brought together fashion, food, designers and other unique partnerships that drive the agenda,” says Yu. The House of Slay/Diageo Day Night MRKT was promoted through social media buys as well as earned media PR efforts.
Cultural Marketing Challenges
A key challenge in cultural marketing Yu notes is “that each of the micro communities are represented in their authenticity and still can be celebrated through one unique platform.” In order to accomplish this, inclusive messages need to be crafted that touch all of Diageo’s brand portfolio, she asserts.
A key challenge in cultural marketing is that each of the micro communities are represented in their authenticity and unique cultures , and still can be celebrated through one platform.
Asked about which of Diageo beverages index high with particular multicultural groups, Yu notes that Johnnie Walker is huge with the Asian community, while Buchanan and Don Julio have a large Hispanic following.
Note: Portada inteviewed Yu on May 20 during the Diageo and House of Slay Day Night Mrkt event in New York City’s Lower East Side’s The Market Line venue.
Danone’s marketing strategy is committed to its purpose of bringing health through food, understanding and listening to multicultural consumers, and creating products to drive more inclusivity within the industry.
There has been an increasing focus on the importance of supporting the immune system, particularly due to its relationship with overall wellbeing. Younger generations, like Millennials, are looking for functional benefits in their foods. With 70%1 of your immune system living in your gut, it’s no surprise that 77%2 of adults are looking to particular foods and products to help support their immune system, while 44%3 look to yogurt in particular. Activia, the probiotic pioneer and modern gut health innovator, has launched its latest innovation to meet that growing demand. The new Activia+ Multi-Benefit Probiotic Yogurt Drinks4 are packed with billions of live and active probiotics that help support your gut health5, plus are an excellent source (20% DV) of Vitamins C, D and Zinc to support your immune system. These tasty, drinkable yogurts bring you A+ feels with every delicious sip.
“At Danone, we know good gut health is the gateway to a variety of health benefits and overall well-being,” said Kallie Goodwin, Vice President of Family & Wellness Brands, Danone North America. “We also know that consumers are becoming increasingly interested in both gut health and foods that help support the immune system. Our new innovation, Activia+, comes at the perfect time as, now more than ever, people are turning to functional foods and products for the extra support of their gut and immune system.”
Now more than ever, people are turning to functional foods and products for the extra support of their gut and immune system.
As the #1 gut health brand, millions of Americans rely on Activia for its gut health benefits.6 With the introduction of Danone’s marketing strategy through Activia+, the first Activia product with nutrients to help support the immune system with Vitamins C, D and Zinc, the brand is now offering them a way to support both their gut health as well as their immune system. The new innovation has 9 grams of sugar, 70 calories, and comes in three fan-favorite flavors: strawberry, peach and raspberry.
To bring to life the added benefits of the nutrients in Activia+ for immune system support, the brand launched a new creative campaign, titled “A+ Feels.” The campaign, geared towards younger generations of consumers interested in proactive health and a continuation of the Activia “A to Z” campaign from July 2020, features catchy, rhythmic music with scenes of diverse women feeling full of life – from family and fitness to work and love. The song lyrics explain that Activia+ Multi-Benefit Probiotic Yogurt Drinks packed with billions of live and active probiotics help support your gut health, plus have Vitamins C, D and Zinc to support your immune system, so you can get those A+ feels. Activia’s modernized aesthetic and campaign vibe, as well as the launch of Activia+, helps address the demand from this younger, health and wellness-conscious consumer. The integrated creative campaign will live across national television, digital, social media, shopper marketing and public relations.
Activia+ is available in 3.1 fl. oz. bottles and is available at select retailers nationwide, including Kroger, Publix, Stop & Shop, Target, and more, for $4.59 per 6-pack.
Sedano’s Supermarket, the largest Hispanic-owned supermarket chainin the U.S., recently introducedNuestra Sazón magazine, the first step in its retail media network launch. The custom publication comes in digital and print versions and is aimed at celebrating Latin cuisine and culture. Portada interviewed Javier Herrán, Chief Marketing Officer, Sedano’s. to learn more about Nuestra Sazón and other projects related to Sedano’s retail marketing strategy.
With headquarters in Miami-Dade County, Sedano’s employs approximately 3,000 associates and operates 34 stores across Florida in Miami-Dade, Broward, Orange, and Osceola counties.
In the digital age custom print publications have perhaps lost some of their allure. Yet Sedano’s recently introduced this bilingual magazine with a circulation of 52,500 mailed directly to homes across Sedano’s primary market in Florida. Nuestra Sazón, launched with the help of Havas House — the global custom media, content and publishing division of Republica Havas — is published three times a year (March, July, November) and has an average readership of 105,000 readers. “We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth,” says Javier Herrán, Chief Marketing Officer, Sedano’s. “It has brought new brand partnerships to the table while vitalizing existing partnerships and customer experiences. It also provides the opportunity to speak to customers while they’re at home, as they’re creating their shopping lists and build relationships with them outside of the stores,” he adds.
Using Retail Media as an Extension of Sedano’s Existing Marketing Strategy
“Nuestra Sazón acts as an extension of Sedano’s existing marketing strategy, promoting the brand ethos in a new light that’s more humanized and approachable.” CMO Herran notes. He adds that “the magazine celebrates the richness of the Hispanic cuisine and culture through engaging content, local stories, and comida criolla recipes customers can cook at home using ingredients from featured brands.”
We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth.
Sedano’s further promotes the magazine and its content via social media campaigns and monthly e-newsletters to its more than 32,000 subscribers. Sedano’s Retail Media Network , of which Nuestra Sazón magazine is the first step, will provide supporting brand partners with the opportunity to creatively showcase their products throughout the supermarket chain’s vast reach in Florida.
Sedano’s comsumer touchpoints are multichannel which is reflected in the above-described multichannel marketing strategy. Herran states that Sedano’s offers its customers a number of ways to shop. “We feel that we need to reach our customers where they want to be and where they want to shop conveniently. Our customers have the ability to shop our stores in person or online through various platforms, including our website, www.sedanos.com, Cornershop by Uber, Shipt, DoorDash, Uber Grocery and on Uber Eats. Our goal is to reach every consumer with our unique product offerings regardless of the platform they choose to use,” Herran concludes.
The Dominican Republic’s Grupo Corripio and Puerto Rico’s Grupo Ferré Rangel are the two largest media groups in the Caribbean. Both groups have a significant commonality: a very important audience reach in the United States. With the audience as a backbone, “both media companies joined forces in 2018 to build a larger and stronger audience network of Hispanics in the U.S,” Augusto Romano, CEO of Digo Hispanic Mediatells Portada.
The U.S. Hispanic population has grown from 50.5 million in 2010 to 62.1 million in 2020. Hispanics accounted for 51% of entire U.S. population growth during that period. Due to the relative youth of the Hispanic population and its entrepreneurial character it can be said that, more than any other group, Latinos drive the U.S. economy.
In addition to its owned and operated sites, Digo Hispanic Media includes other handpicked premium, reputable, and well-established Spanish language publishers from Latin America and the U.S. in its network.” According to Romano, these premium publishers are the first point of reference for Hispanics in the U.S. and they have the need of staying connected to the news of what’s happening in their country of origin.” For example, these audiences are interested in content that deals specifically with sports heroes of Puerto Rican origin El Nuevo Dia Puerto Rico Managing Editor, Rafael Lamatells Portada .
The Vision for 2025…
“We are a data-driven company and our purpose has always been to make true connections between audiences and brands,” Aisha Burgos, SVP, Sales & Marketing, at Digo Hispanic Media asserts. “By 2025 we expect to take this to the next level by continuing being strategic with our partners, delivering the correct data connectivity and addressability with the audience they want to engage with, not only at the correct time, through the correct channel or device, but also in the correct environment, either in the real world, the metaverse or even outer space. The sky is the limit, pun intended!”, Burgos adds.
By 2025 we expect to take this to the next level, either in the real world, the metaverse or even outer space!
Supporting Digo’s network of publishers is another key element of Digo’s DNA .”As we all know content is king and the audience is the queen, and those are the two most valuable assets that publishers have. We will be side by side with our publishers to ensure that they can continue catering to their audience the content that they need and want in the formats and channels that they prefer, while they can also rely on us in helping them future-proof their business with new ad tech, user experience best practices and new monetization capabilities,” says Burgos.
…and What It Means for Brands.
Premium content and brand safety are two key pillars of Digo’s offering. “Advertisers will benefit from all of the above, plus they will have exclusive access to premium and culturally relevant environments where they can connect and engage with their desired audience,” CEO Romano emphasizes. Digo has developed its own ad-tech stack, which allows it to offer audience segmentation, dynamic-creative optimization and other services to advertisers. Digo also has partnerships with major DMPs. “Our ad-tech, plus our audience first-party data and our network allow us to develop the perfect solution for our clients, aiming always to achieve their business goals. Our clients will also benefit from relevant insights related to their target audience and will be able to execute new and more intelligent strategies to continue improving its ROAS,” Romano mantains.
Hispanic Media: Owned and Operated Sites Meet Brands’ Thirst for First-Party Data
In times of cookieless marketing and brands’ imperative to gain first-party data, having a Hispanic media partner who owns and operates (OO) digital media properties is very advantageous to advertisers. “Having owned and operated sites gives us a competitive advantage vs other networks since we are able to identify our audience and gather our first-party data with a key-value setup – universal id’s – allowing us to push the audience segments to our Ad Manager, SSP and/or our DSP. “This enables us to maintain data connectivity and addressability in a cookieless world. We have been testing and executing campaigns with this cookieless approach and we’ve seen great results in performance and costs,” Romano concludes.
Our ad-tech, plus our audience first-party data and our network allow us to develop the perfect solution for our clients!
How are media holding agencies’ plans for Increased minority media buys panning out so far? We asked several key players on the brand, media agency, and publisher side about how they see brand advertisers supporting media properties targeting minorities and how the plans toward increased investment by major media holdings have been working so far. Views from Jason Riveiro, Larissa Acosta, Gonzalo del Fa, Ivan Adaime and Federico Grinberg.
After the murder of George Floyd and the rise of the Black Lives Matter movement, a demand consumers have for 2022 and beyond, is that brands support media properties that target diverse and underserved audiences. Members of the brand marketing community agree: “Inclusivity in messaging should be substantial and authentic, but also should include investment in media targeting underserved communities”, says Jason Riveiro, VP Global Service, Realogy.
Larissa Acosta, until recently Segments Team Leader, Integrated Marketing, at Wells Fargo noted that “the change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target.”
“Effective Marketing is about people and relationships. The more we focus on the consumer, their needs, their wants, the greater are our opportunities to impact business outcomes. In key categories including financial services, diverse consumers represent the engine of growth. Multicultural audiences represent 3.2 trillion in spending power. Smart marketers who really understand the business opportunity will seek ways to lead with diverse insights,” Acosta concluded.
Smart marketers who really understand the business opportunity will seek ways to lead with diverse insights.
The demographic rationale for marketing toward the Hispanic and African American population, and for minority media buys, was strengthened even more with the recent publication of the 2020 Census Results. “The U.S. population is much more multiracial and much more racially and ethnically diverse than what we have measured in the past,” said Nicholas Jones, a Census Bureau official. In States like California, Hispanics became the largest racial or ethnic group, growing from 37.6% to 39.4% from 2010 to 2020, while the share of white people dropped from 40.1% to 34.7%.
Major media buying agencies have announced comprehensive initiatives to increase advertising expense in media owned and targeted to the African American and Hispanic population. GroupM made a 2% pledge, calling on its clients to invest at least that amount of their annual media spend in diverse and Black-owned media. The program includes a 2+% Pledge and “Diverse Voices Accelerator” positive impact fund that begins with an initial focus on Black-owned media. This pledge invites GroupM clients to invest at least two percent (2%) of their total annual media budgets in Black-owned media. Invitations and planning are active now, with activation projected in the next 12 months. In 2020, Black-owned media companies saw less than 2% of total ad spend, despite Black consumers representing 13% of the population,
IPG’s Mediabrands recently pledged to spend a minimum of 5% on Black-owned media across its client portfolio by 2023 and held its first upfront for Black-owned and targeted media companies in March. The goal is to help lift spending on Black-focused media, which last year was less than 2% of the total, according to Nielsen Ad Intel data cited by IPG. Black consumers make up at least 13% of the population, but available impressions for Black-owned media are equal to 3% of the total impressions available among all media types, according to data compiled by sister agency Magna.
While Dentsu hasn’t made a specific pledge to increase minority media buys, it has established a division to consult with and support minority-owned media businesses and “establish client benchmarks to reach diverse media audiences,” a company announcement said. Dentsu also announced that it will limit payment terms for minority-owned media to 30 days, a move that was more than welcomed by players in the multicultural media industry. Dentsu said that it was inspired to shift from the industry-standard payment terms of 60 and up to 120 days by General Motors, which was the first to offer updated payment terms earlier this year.
Havas Media, Publicis and GroupM each launched curated media marketplaces representing black, Hispanic, LGBTQ+ and other minority-owned publishers, as well as publishers that create content specifically for underrepresented communities. Havas Media’s social equity private marketplace represents roughly 250 publishers with minority and LGBTQ+ owners, including Blavity, MadameNoire and Black Enterprise. Moen and Michelin have signed on as inaugural spenders. Clients can access GroupM’s marketplace both programmatically and directly. It includes 300 publishers that are Black- and Hispanic-owned or focused, such as Essence, Oprah Magazine and Atlanta Black Star. GroupM declined to name clients using the marketplace.
GroupM’s Gonzalo del Fa, President GroupM Multicultural, tells Portada that one of the difficulties of knowing where the ratio between Hispanic-owned media digital media impressions and overall U.S. digital impressions lies is that there is no official data of many minority-owned media properties. The recent publication by the ANA, Nielsen and The Media Framework of a comprehensive and validated diverse-owned media list in the industry may help in this regard.
One of the difficulties of knowing where the ratio between Hispanic-owned media digital media impressions and overall U.S. digital impressions lies is that there is no official data of many minority-owned media properties.
Regarding how GroupM’s commitment to increase ad expenditure in minority-owned (Black and Hispanic) media has panned out so far, del Fa says that it is too early to say as GroupM is currently undertaking its first analysis of the initiative.
Minority Media Buys: Doing the Talk but not the Walk (For Now)
What do Hispanic and African American media owners say? Are monies really being invested in minority media? Asked about whether he sees an increased investment coming from media buying agencies or their curated marketplaces, Ivan Adaime, CEO of Spanish-language publisher Impremedia, answers with two unequivocal “no’s”. Earlier this year, ImpreMedia issued an open letter to advertisers and media agencies calling to an end of the discrimination in advertising towards U.S. Hispanic and ethnic media. “We are not seeing a significant increase in expenditure towards Hispanic from top media agencies. We are seeing some direct advertisers increasing their expenditure towards Hispanics,” says Federico Grinberg, EVP of Playmaker, the owner of Hispanic targeted soccer fans sites Futbolsites.com.
We are not seeing a significant increase in expenditure towards Hispanic from top media agencies. We are seeing some direct advertisers increasing their expenditure towards Hispanics.
Asked about whether he is getting more business from curated marketplaces Grinberg notes that there is “no significant shift.” He adds that he expects to “see an impact for Q4, and for 2022 with the FIFA World Cup.”
Looking at data provided by Statista which puts U.S. digital advertising spending at US $130 billion in 2020 and Hispanic digital advertising spending at US $ 1.5 billion, we arrive at a percentage of Hispanic spend vs. overall expenditures of 1.15%. Quite a low ratio, to say the least….
The ANA, Nielsen and Media Framework announced a collaboration aimed at increasing investments in multicultural and minority-owned media (African American, Asian, Hispanic, LGBTQ and People with Disabilities) to help brands and agencies measure their investment and impact on multicultural and inclusive-owned media and the communities these represent.
Three organizations, ANA, Nielsen and Media Framework acknowledge the crucial role multiculturally owned media plays and just announced a collaboration aimed at increasing investments in multicultural and inclusive-owned media (African American, Asian, Hispanic, LGBTQ and People with Disabilities) to help brands and agencies measure their investment and impact on multicultural and inclusive-owned media and the communities these represent. On October 8th, during the ANA Masters of Marketing Conference, AIMM will release the most comprehensive and validated diverse-owned media list in the industry, created by Media Framework via its database of media vendors – MAVEN.
Paired with this list, AIMM and Nielsen are also releasing a new “Diverse Owned Media Planning and Investment Guide” – free to the industry – that will include profiles and aggregated metrics of diverse-owned media on TV, radio and digital platforms with their related audience descriptions, estimated reach, gross impressions and more.
The collaboration will help to create greater equity, visibility, and investment in minority-owned media.
The partnership aligns with ANA AIMM’s vision for the industry to #SeeALL and its commitment to increase the visibility of diverse-owned media across national, local and cable TV, radio and digital entities. The resources will also allow marketers and agencies to discover and build partnerships with diverse media companies.
“Together, we are creating a more equitable playing field by bringing greater visibility to all players in the industry, providing valuable data to advertisers and connecting brands with the diverse-owned media in which so many of them have pledged to financially invest,” said Lisette Arsuaga, Co-Founder of ANA AIMM. “It’s time the industry invests in engaging multicultural and diverse audiences who are key to business growth. That effort cannot be maximized without investing in both diverse-owned AND targeted media.”
It’s time the industry invests in engaging multicultural and diverse audiences who are key to business growth. That effort cannot be maximized without investing in both diverse-owned AND targeted media.
Multicultural Media: AIMM’s Seven-Point Pledge to address systemic inequities in the marketing and advertising industry, specifically by:
Helping brands and agencies plan and measure fair investments commensurate with the opportunity
Going beyond traditional efficiency reach measurements by overlaying new critical measures of Cultural Relevance capturing the quality of the connection proven to enhance engagement and impact
“We embrace AIMM’s 7 Point Pledge and are excited to work with AIMM in an industry wide effort to increase investment in minority, LGBTQ+ and disability-owned media companies that will fuel their ability to, in turn, invest in improving and expanding their offerings, especially in culturally relevant content,” stated Kathleen Coffey, CEO and Founder of Media Framework. “Identifying, documenting, and tracking diverse media ownership is the most challenging part of what we do at Media Framework, but it is also the most rewarding.”
Identifying, documenting, and tracking diverse media ownership is the most challenging part.
ANA AIMM will evaluate current advertising spend on diverse-owned media and establish industry investment benchmarks, informed by Nielsen AdIntel, the company’s advertising monitoring service. This will enable the partners to track the growth of advertising spend on diverse-owned media in various markets and across TV, radio, print and digital platforms over time.
Comprising nearly 7% of all media entities, multicultural & inclusive-owned media are a key component for advertising spend, and with further investment these entities can continue to grow and serve their communities. According to MAVEN data on multicultural & inclusive-owned entities categorized to date: 40% are currently Hispanic-owned, 40% Black or HBCU-owned, 10% Asian-owned, 7% Native American-owned, 2% LBGTQ-owned and 1% owned by people with disabilities. Part of AIMM and MAVEN’s work will involve sourcing and vetting further diverse-owned media entities in order to come closer to the full understanding of the universe of these diverse media entities.
We want to raise the visibility of the diverse-owned media that play a critical role in reaching and representing the increasingly diverse U.S. population.
“As part of our commitment to creating a better media future for all people, we want to raise the visibility of the diverse-owned media that play a critical role in reaching and representing the increasingly diverse U.S. population,” said David Kenny, Nielsen CEO. “Through our work with ANA AIMM, we are also empowering advertisers to more effectively measure their investments.”
“ANA has worked on behalf of advertisers and brands to ensure their investments are measurable in all media,” said Bob Liodice, CEO of the ANA. “We are honored to have informed this work which will raise the visibility of the value and high relevancy of diverse-owned media to advertisers. Not only are we helping marketers, but we are also doubling down on the ANA’s commitment to addressing the systemic inequalities in our industry.”
To be considered for inclusion in the multicultural and inclusive-owned media list, please reach out to firstname.lastname@example.org. The special list offer consisting multicultural and inclusive minority-owned media will be exclusive to ANA and AIMM members by subscription. More extensive tools for agencies and marketers may be accessible directly from Media Framework.
Purpose driven community engagement and marketing is a big imperative for Corporate America. Houston headquartered national mortgage Lender Envoy Mortgage just initiated the Gift of Home program, an example of a brand that does the talk and the walk when it comes to corporate social responsibility and diversity. Erin Schwartz, Corporate Communications Director at Envoy Mortgage, explains to Portada how the Gift of Home program works and her overall approach to community engagement.
Corporate Social Responsibility should not be taken lightly by corporations, particularly in times of COVID-19. Houston headquartered Envoy Mortgage, a top 100 national mortgage lender, is acting accordingly and recently introduced the Gift of Home program through which it will gift 50 households across the U.S. up to $150,000 in mortgage assistance, including taxes, as part of this program designed to show gratitude during a challenging time for customers. Through June 2021, Envoy Mortgage will randomly select 50 of its customers from across the country to receive one month’s mortgage payment and tax assistance. The recipients will be announced by surprise from market to market.
“Traditional community engagement is not doing it anymore. We wanted to do something meaningful that has an impact on people’s lives.” Erin Schwartz, Corporate Communications Director at Envoy Mortgage, based in Houston, tells Portada. Schwartz, who leads all internal and external communication functions for Envoy’ Mortgage, adds that “when the pandemic hit many sectors were deeply impacted. There was a lot of uncertainty in financial services and mortgage services. However, lower interest rates did very well for the real estate industry. So we decided to give back and do something for people suffering in the pandemic.”
To ensure the greatest good, Gift of Home recipients are customers who play essential roles in their communities To select recipients Envoy Mortgage looks into two subsets of its customer database: Borrowers of VA (Veteran Loans) and FHA Loans (Loans that have a federal assistance). Within these two subsets they looked for first responders, nurses, educators and small business owners and their employees. Recipients are mostly in urban areas or within 30 miles of urban areas nationwide throughout Envoy Mortgage’s footprint of 130 branches nationwide .
Traditional community engagement is not doing it anymore. We wanted to do something meaningful that has an impact on people’s lives.
Community Engagement: Hispanic and African-American
The program officially launched in Envoy Mortgage’s hometown of Houston, where the company surprised Josué Rios, a firefighter from Mexican descent, who contracted COVID-19 while working on the frontlines. Envoy Mortgage is making all of Mr. Rios’ mortgage payments, January through December 2021. “2020 was a challenging year, not only for my family, but also for so many others in our community. I’m overwhelmed and so grateful to be receiving the Gift of Home from Envoy Mortgage,” says Rios, who works at Fire Station 83. “This is life changing and means the world to me and my family.”
There are three Hispanic winners so far. The third winner was announced last Wednesday March 10 when Sandra Velasquez, a local Senior patient representative at the Children’s Pediatrician & Associates, COVID survivor, mother of four, head of HH, from Salvadorian origin in the DC area was surprised and delighted with Gift of Home from Envoy Mortgage, gifting her a month of her home loan mortgage payment including taxes. According to Schwartz, particularly Hispanics and African-Americans are a great target for the Gift of Home program as well as for Envoy Mortgage’s overall community engagement strategy which includes consumer education virtual seminars that educate about different mortgage programs whose down payment requirement is below 20%. Diverse population segments are particularly underrepresented in the real estate industry. This is not the case at Envoy Mortgage: 17% of Envoy team members identify as Hispanic, 15.71% of loans funded in 2020 were to borrowers that identified as Hispanic or Latino in their application. The Hispanic borrower average funded home loan amount was US $242,317.
Community First Communication Approach
Schwartz notes that Envoy Mortgage is a community first organization. “Being involved in our community is just part of our DNA. Our customers are our neighbors. Despite our advances in technology, people want to talk to other human beings. We are a high touch organization that wants to be involved with real persons. This is our secret to ensuring our customers love their mortgage experience.”
The recipients also become informal spokespersons and ambassadors and are interviewed on the radio and other local media outlets.
The microsite https://giftofhome.envoymortgage.com/ is the cornerstone of Envoy’s outreach and the central dashboard and repository for showcasing the program and the recipients. “It’s all about the recipients and their stories,” Schwartz asserts. Envoy Mortgage did do a paid social campaign (Instagram, Facebook and LinkedIn) for the kick-off of the program. However, Schwartz notes that most of their outreach is purely organic: “The story tells itself. We engage local team members and loan officers who feel really proud to work for a company that does so much for the community. The recipients also become informal spokespersons and ambassadors and are interviewed in the radio and other local media outlets.” The community engagement initiative has obtained a substantial amplification on social media. From January 12, 2021 to March 1 the Gift of Home initiative has garnered 1,169,509 impressions, 455,163 video views and 63,410 engagements
The Gift of Home community engagement program will run through the fall when it will be culminated with another grand winner. It is planned that there also will be a program during the holiday season every year.
Impremedia has acquired the food and recipes sites Comedera. Comedera joins Impremedias’s family of news and lifestyle brands.
“We are excited to bring Comedera into the Impremedia family,” said Iván Adaime, Chief Executive Officer, Impremedia. “We know Hispanic consumers are increasingly looking online for cooking solutions to make their lives easier and better, and this acquisition provides us an ideal way to address this growing opportunity.”
“Latinos are known for celebrating around the table with family and friends. We don’t organize any event where food is not involved. On top of that, in our daily lives, we also enjoy food, and we are increasingly concerned about the ingredients and the choices we make in the kitchen”, Rafael Cores, Impremedia’s VP of Content, said in a statement.
“We know how important, rich and diverse the culinary experience is for our target audiences,” Rafael Cores, Impremedia’s VP of Content, said in a statement. “Our goal is to provide a straightforward approach for the Latino consumer that we feel lacking in the current space, to everyday family cooks and new foodies.”
Comedera is a site for families and everyday cooks, with a history as one of the original food blogs. It was created by Madrid-based web entrepreneur and photographer Daniel Noboa, who launched it in 2012 and made it grow into a website that reaches millions of users every month.
Impremedia has a proven track record of building and scaling quality content brands. I’m thrilled that the site that I founded is ready to go to the next level,” said Daniel Noboa, founder of Comedera.
“We see a big opportunity in the food space. We will be investing in improving our recipe base while also getting in other food-related content areas,” concluded Adaime.
Music and Multicultural Marketing play an important role in Cadillac’s marketing, Alexis Kerr, Head of Multicultural Marketing, Strategy, Content and Execution, at Cadillac. tells Portada. The automotive marketer tells us all about how she uses music to tell the brand’s story. Plus the Hispanic media outlets she supports and why.
In 2017 Cadillac received a US $12 billion product-investment pledge to reinvigorate the brand and in early 2019 the General Motors brand named Debora Wahl as Cadillac’s global chief marketing officer. In 2019 Cadillac sales increased 1,1 % to 156,246 unit. The results represent the first annual increase in sales volume that the luxury brand has experienced in the American market since 2013. Music Marketing and Multicultural Marketing play an important role in Cadillac marketing overall and growth. That is why we
interviewed Alexis Kerr, Head of Multicultural Marketing, Strategy, Content and Execution, at Cadillac. “Music continues to be at the foundation of our efforts,” Kerr asserts. As an example she mentions the Cadillac LYRIC, an electric crossover to be produced by Cadillac which will be available for purchase in the first half of 2022. According to Kerr, “with the introduction of LYRIC, we have appreciated how the world has embraced Cadillac by mentioning it in over 3,600 songs. Music is also something that crosses partnerships, influencers, content and activations so we found ways to leverage the right artists to tell our brand’s story.”
Music crosses partnerships, influencers, content and activations so we found ways to leverage the right artists to tell our brand’s story.
Cadillac Marketing: Heavily Leaning into the Hispanic Community
Asked about which activations Cadillac is planning in 2021 in the multicultural space, Kerr answers that “In 2021, we are leaning in heavily into the Hispanic community. We are fully engaging and focusing on properties we currently support. Hispanicize is a great example of a partnership that offers an activation as well as media buying opportunities. A few other media partners that we support that have our audience are Telemundo, Estrella, Unimas, Hulu Latina, Univision, Xandr Direct TV. We buy Hispanic Addressable TV to ensure a 1:1 at scale approach. Overall, we have an audience-first approach, we ensure that we leverage media companies that are Hispanic-owned.”
We buy Hispanic Addressable TV to ensure a 1:1 at scale approach.
Brands are under increasing pressure to invest in media properties that support truth-based journalism and diverse communities. So is Cadillac’s Marketing. Yet, these media properties may not have enough reach to justify a media spend in ROI terms. What is Kerr’s view on this? “We have found creative ways to nurture our Multicultural media partners to ensure they serve us in various different ways vs just ROI. Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships.”
We have found creative ways to nurture our multicultural media partners to ensure they serve us in various different ways vs just ROI.
The pro-Trump mob that stormed the U.S. Capitol on January 6 was mostly incited by social media driven fake news. It again became blatantly evident that a repluralization of media and a commitment to facts as a public good are crucial to the stability of the U.S. democratic system.Enter Corporate Social Responsibility: Brands and media buyers at agencies should be under pressure to direct advertising to media properties practicing professional journalism. Media dollars should also be directed to underserved communities. Learn how UM , Cadillac and Realogy balance the reach vs. responsibility/purpose driven marketing trade off in media buys.
It is not surprising that the D.C. chaos has actually made many brands to take the decision of pausing social advertising. According to a 2019 study published in Science by MIT Sloan professor Sinan Aral and Deb Roy and Soroush Vosoughi of the MIT Media Lab. They found falsehoods are 70% more likely to be retweeted on Twitter than the truth, and reach their first 1,500 people six times faster. This effect is more pronounced with political news than other categories. Independent, truth-seeking professional journalists apply reporting methodologies and a code of ethics that makes them accountable and transparent. Corporate social responsibility should make sure that brands advertise in trusted media properties.
However, brand marketers and the media agencies that cater to them not only need brand safety but also reach at a low cost for media buys to be efficient and ultimately obtain leads and sales.
News Sites: How it Works in Practice…
David Queamante, SVP, Client Business Partner, UM Worldwide tells Portada that when he worked at “an Automotive brand, recently, we saw that News Programming has a high index among people who earn the income we wanted to see, and who buy the vehicle segments we were promoting. However, on the Finance brand that I focus on currently, we see that News Programming indexes below 100 for people who will be in-the-market for our type of loan in the next 12 months. I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target.”
I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target.
Queamante add thats “when we run ads for this company on Social Media, we see that our Cost-Per KPIs is much lower than what we see when we run display ads anywhere else. At the end of the day, I can’t avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.”
At the end of the day, I can’t avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.
Journalist Powered Content Ratings…
Separately, IPG Mediabrands, the owner of UM, has agreed to begin using NewsGuard’s journalist-powered content ratings system for its digital news media buys in the United States, and other key markets. NewsGuard — which was founded by news media pioneer Steven Brill as a solution to the deluge of disinformation being promulgated by questionable publishers and sources — relies on human intelligence as opposed to machine-learning algorithms to detect, organize and rate the veracity of news and information publishers. Many brands and media agencies recognize that corporate social responsibility includes advertising in trusted media properties. IPG/ Mediabrands plans plans to use the ratings as part of its programmatic media buys made on news and information websites. “Our partnership with NewsGuard has already helped expand the scope of quality inventory available while ensuring ads remain in brand-safe and brand-suitable environments,” says Mediabrands Global Brand Safety Officer Joshua Lowcock said in a statement announcing the expansion of its agreement.
Corporate Social Responsibility: How Diversity Media Buys Work in Practice…
Another demand consumers have for 2021 is that brands should support media properties that target diverse and underserved audiences. Some members of the brand marketing community agree: “Inclusivity in messaging should be substantial and authentic, but also should include investment in media targeting underserved communities”, says Jason Riveiro, Senior Director, Global Growth Markets & Inclusion tells Portada.
How does this work in practice? Alexis Kerr, Cadillac’s Head of Multicultural Marketing | Multicultural Strategy, Content and Execution, notes that she has found creative ways to nurture her multicultural media partners to ensure they serve her in various different ways vs just ROI. “Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships,” she asserts.
MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget.
Custom Solutions that Balance Reach vs. Responsibility
Corporate social responsibility should include that brands advertise in trusted media properties. UM’s David Queamante notes that his agency has worked hard to build custom solutions that balance reach with responsibility by making it easier to identify and work with Diversity-owned and Diversity-serving media partners, while still delivering on campaign goals and KPIs. “MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget. It may not be possible to spend a certain amount of money with diversity-owned partners – many of them lack the scale that non-Diversity-owned partners have. Due to this lower scale, investing an arbitrary amount with these partners may also have negative impact on the campaign reach and exposure to our target audiences.
Corporate Social Responsibility: A Catalogue of Diversity Owned Partners
Queamante adds that the first thing he does is to “start with a database that one of our internal agencies (MAVEN) maintains and updates several times a year. This catalogues Diversity Owned partners across more than just ethnicity. It includes Veteran-owned, Women-owned, Disability-owned and more. The second step involves to “match the media partners on this list with our custom targets; we call them High Value Audiences (HVA). We identify these audiences using our Acxiom data stack, and we’re able to match these audiences back to media behavior. Based on the HVA media consumption of these Diversity-owned partners we’re able to create investment benchmarks that are specific to each brand and their unique audience.” “Since these benchmarks factor in HVA media consumption, they have a positive impact on reach and exposure levels for our target.”, Queamante concludes.
What form will the advertising mix take once COVID-19 is over? How and where should brands advertise to boost E-Commerce? Should they trust Live Sports to come back in a major way? How can brand marketers best approach Data Privacy Regulations, First Party Data and Personalization?…. Advertisers have many questions as they go into 2021 and beyond. Check out the answers provided by brand executives in the Portada network and our editorial team. A Q&A reflecting the Advertising and Marketing Zeitgeist.
MY FIRST QUESTION is WTF I can’t plan much in this environment. When will COVID-19 finally be over?
ANSWER: Don’t expect live to resemble anything close to what we had in 2019 until the second half of 2021. Good to know: Customers are the lifeblood of business and advertising is the main tool to attract new customers and an important way to retain them. In 2020 business conditions changed dramatically due to COVID-19. This substantially impacted advertising with an expected decrease of U.S. advertising revenue of 17% for 2020 (excluding political advertising, Magna Global);a miserable advertising year.
OK, but EVEN WHEN COVID IS OVER, how will the new normal impact my advertising and marketing?
ANSWER: Whether you are a company that is not directly facing the consumer or a Direct to Consumer firm, E-Commerce marketing and advertising will be much more important for you compared to pre-Covid-19 levels.(e.g. check out how automotive marketer Cadillac has worked proactively to adapt its advertising and marketing.) Good to know: COVID has brought enormous changes in the way consumers inform themselves and buy products and has accelerated digital transformation and e-commerce. In January 2020, eMarketer forecast total U.S. ecommerce sales would reach US $674.88 billion in 2020, but a revised estimate puts that figure at US $794.50 billion or 17.7% more than expected! E-commerce skyrocketed from 12% to 16% of retail sales in only one year. Note that there is still a lot of room for e-commerce growth!
On the Relentless Ascent of E-Commerce Focused Advertising
I can see that it makes sense to put more money to work to grow E-COMMERCE, BUT WHERE EXACTLY SHOULD I DO THIS? Should I invest in advertising to attract buyers to my own website, to a third party marketplace or to direct them to social selling?
ANSWER: Most brand marketers in the Portada knowledge-sharing network see sales channels as complementary and not competing. “The key is to be omnichannel in order to be where customers need us to be,” one brand marketer says. Another thing to take into account in your advertising is that third party marketplaces (e.g. Amazon, but also Target or Walmart) are impacting brand messaging. It is crucial for brands to be in control of messaging. As social media becomes even more connected with e-commerce, Influencer marketing is becoming more sales driven. (According to Statista, global Instagram influencer marketing amounted to US $ $8,08 billion in 2020.) Good to know: Amazon (37% sales growth in the third quarter of 2020 (Q3), vs Q3 2019) and other online retailers including Best Buy (23% Q3 2020 vs. Q3 2019 ) and Target (21.3% growth) have gained an enormous power as third party marketplaces who provide data and marketing services to brands. So have delivery and pick-up services like Instacart (grocery), Grubhub (restaurants) and others. All these intermediaries offer marketers opportunities to advertise their products on their apps and websites. In addition, social media properties are playing a crucial role in sending shoppers to company websites and also offer direct sales integrations (e.g. Instagram has just debuted shopping capabilities within its recently launched Reels feature). Magna estimates that driven by ecommerce and advertisers looking for “lower funnel” attribution, U.S. digital media revenue grew by 10% in 2020, reaching US $140 billion.
WHAT ABOUT THE TOP OF THE FUNNEL. Is there no place for branding and awareness anymore?
ANSWER: “While digital media and e-commerce have changed and shortened the customer’s path to purchase, brand awareness continues to be the basis for consideration and purchase. Broadcast TV and other traditional media forms, including Out of Home Advertising, continue to have major reach and appeal for advertisers.
Good to know: Magna forecasts that in 2021, with a COVID vaccine and the postponed Olympics, global advertising will rebound. The agency forecasts the global ad spend to increase by 7.6% to US $612 billion. Linear media, which is mostly awareness-top of the funnel oriented, will grow by 3.5%.
Where is Experiential Marketing Going?
Corporate America used to utilize in-person Live Sports events to obtain high reach and engagement. Will that again be the case once COVID is over or will VIRTUAL EVENTS, INCLUDING E-SPORTS, STILL PLAY A MAJOR ROLE?
ANSWER: “You will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid,” Michael Goldstein, VP and Head of sponsorships North America at Mastercard recently told Portada.
DATA PRIVACY REGULATIONS are making it more difficult to target consumers. How can I solve this in 2021 and beyond?
ANSWER: Contextual targeting technology provides a data privacy-friendly alternative to behavioral targeting, It can help a brand understand what a consumer might like without needing personally identifiable information. Contextual targeting uses linguistic elements and the advertisements themselves are selected and served by automated systems based on the context of what a user is looking at (e.g. check out Tecate’s new campaign). Contextual targeting can also be useful for performance marketing efforts. Good to know: Data privacy regulations and third party cookie phase-outs have digital advertisers scrambling for solutions to maintain campaign efficiency and scale without the regulation compromising behavioral targeting technology.
Nice to know…but I think my company should also obtain FIRST PARTY DATA as a major way to get customer insights. Don’t you think so?
ANSWER: Brands can gain a lot by unifying first-party data sources into a single customer view in a Customer Data Platform, CDP, although the platforms may not necessarily do everything a marketer expects them to do. Good to know: Marketers will need to shift from reliance on third-party data for audience targeting and campaign measurement to a new model improving the way they collect, manage, and activate their first-party data. Ogilvy head of experience technology, Jason Davey, sees digital marketing strategies shifting to prioritize first-party data as the looming cookie crisis gets real. Due to technological advances, multi-channel data collection, attribution, curation, enrichment and decisioning has become more accessible and affordable.
How does this all connect with my increased need to PERSONALIZE CUSTOMER COMMUNICATIONS?
ANSWER:The appropiate use of CDPs will continue to drive the hyper-personalisation trend, with more interest in Artificial Intelligence including predictive data analysis.
Sounds interesting. Another question I have is if I should invest more in CONNECTED TV (CTV). While the audience watching CTV is huge why are CTV advertising investment volumes so small?
ANSWER: CTV is clearly on the rise, as are other forms of video advertising, yet more sophisticated CTV measurement options “are key – and that will allow us to measure viewership and frequency across screens more easily,” Darcy Bowe, SVP, Media Director at Starcom USA tells Portada.
Good to know: CTV household penetration lies at 80% and Pay-TV’s at 62%, yet CTV advertisingis expected in 2021 to amount to only 15% of total US TV ad spending.
How can Segment and Purpose Driven Advertising Really Work?
How should I approach marketing toward ETHNIC POPULATION GROUPS in 2021 and beyond?
ANSWER: “The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies, that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target”, says Larissa Acosta, Integrated Marketing Consumer + Diverse Segments Team Leader at Wells Fargo.
Good to know: Over the last decade Corporate Americas has used the Total Market approach (TMA). This approach integrates diverse segment considerations and mostly leads to a full cross-cultural approach and campaigns. Critics note that the TMA is not effective for multicultural marketing and that the real reason companies use TMA is that they realize savings in their advertising expense and marketing organizations.
OK. I do want to TARGET THE HISPANIC POPULATION specifically and support media properties that cater to those communities. How can I advertise toward the Hispanic segment in a cost effective way. I mean Facebook and other platforms tend to be cheaper and have a lot of reach?
ANSWER: “We have found creative ways to nurture our multicultural media partners to ensure they serve us in various different ways vs just ROI. Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships.”, says Alexis Kerr, Head of Multicultural Marketing | Strategy, Content and Execution, at Cadillac.
Good to Know: Brands are often asked to invest in media properties that serve diverse communities. Yet, these media properties may not have enough reach to justify a media spend on ROI terms. (It also has to be said that while the cost of advertising in social media is lower, it not always guarantees brand safety.)
RACISM AND INEQUITY are major factors behind civic unrest. How should I be mindful of this in my brand’s advertising?
ANSWER: “It is counterproductive for a company to advertise if it does not commit to social and economic change by incorporating diversity, racial justice and social equity mandates and their execution. This should include executive leadership and personnel selection, an ecologically sound production process as well as diversity in vendors. Good to know: Covid-19 exposed a historic cycle of systematic racism and oppression as civil unrest hit many U.S. cities in 2020. More than 35% of young consumers (aged 19-26) have stopped shopping from a brand who has not spoken out against racism (Oberland Survey, August 2020).
d2h Partners has acquired Arenas Group, the first Hispanic entertainment marketing agency of its kind in Hollywood,. The transaction reflects the growing demand for of OTT marketing, D2C and Direct Response expertise.
Both the Arenas and d2H brands will keep their names and identity, complementing each other’s extensive experience, and offering services including Publicity, Promotions, Creative Advertising, Media and Direct Response, and Consumer Insights. Founded by Santiago Pozo in 1988, Arenas Group has worked on more than 600 films and television campaigns throughout its 31-year history. d2H Partners, led by branded response veterans Marcelino Miyares, Jr. and Patricia Testa, is a direct response advertising agency also specializing in the US Hispanic market.
Portada interviewed Santiago Pozo, Founder, Arenas Group and Patricia Testa, Managing Partner, d2H Partners. They claim that “Arenas Group has always been a pioneer in the industry, and continues to stay ahead of the curve by bringing a deep understanding of the Hispanic values and culture to the studios. We are not a general market agency with a Latino arm, we are a Hispanic agency from top to bottom. ”
d2H Partners-Arenas Group: Changing Marketplace
Asked about how the new agency will adapt to reflect the changes in Hollywood and Entertainment (e.g. Warner Bros recently announced that it will be distributing movies on HBO Max at the same time as in theatres, the agency executives answer that” the recent announcement made by Warner Bros is a result of the unprecedented times we are living in, and opens up new opportunities to tap into a Latino audience who prefers to enjoy movies with their families at home for financial reasons. We continue to craft relevant messages for our campaigns that resonate with the Latino community.”
The recent announcement made by Warner Bros is a result of the unprecedented times we are living in, and opens up new opportunities to tap into a Latino audience who prefers to enjoy movies with their families at home for financial reasons.
Asked about whether the fact that a DR (direct response) agency (d2H Partners is buying a more traditional agency (Arenas Group) reflects that DR and D2C, including OTT Marketing, expertise has substantially grown in demand, the executives answer that. “The D2C environment is evolving, and the recent changes caused by the pandemic in how we consume entertainment, call for a more focused and direct approach. That is not to say that marketing and communicational programs traditionally used in the entertainment sector will disappear, but they will have to co-exist in a more D2C-focused marketplace.”
The marketing programs traditionally used in the entertainment sector will have to co-exist in a more D2C-focused marketplace.
Arenas Group’s key accounts include Walt Disney Animation Studios, Disney+, Netflix, 20th Century Fox, Archdiocese of Los Angeles, Sony Pictures, Paramount Pictures, independent producers, etc., for which they have provided a variety of marketing services from Digital to Publicity, Promotions and Creative. d2H accounts include leading marketers in the Direct to Consumer (D2C) space, such as NuWave, the maker of the Bravo XL Oven. Great HealthWorks, one of the largest vertically integrated direct-to-consumer companies in the US specialized in health and wellness, with its cornerstone product, OmegaXL. On the lead generation front, client Lincoln Heritage Life Insurance markets Funeral Advantage, the leading final expense life insurance program in the U.S.
Hispanic content company Impremedia is launching Siempre Auto: a digital destination specialized in cars and the automotive industry aimed at the Hispanic community living in the United States. Hispanic car buying habits support the launch as Hispanics are aware of 10-20% fewer car brands than the general U.S. population, according to Nielsen.
Automotive marketers targeting Spanish-language car buyers in the U.S have a new vehicle to reach Hispanic car buyers at Siempre Auto. Siempre Auto offers specialized information about cars in Spanish. The content seeks to help readers to make the best decisions regarding their mobility needs. “Our goal is to provide a straightforward approach for the Latino consumer that we feel lacking in the current space,” Rafael Cores, Impremedia’s VP of Content, said in a statement. “The reader always comes first. We provide the right information to suit the consumer’s needs: whether that is buying or selling a car, doing maintenance work on your vehicle, or staying updated with the news in the automotive industry.”
Over the past decade, the market of Hispanic car buyers and owners has undergone high growth and now comprises a very lucrative segment for the auto industry.
Siempre Auto: Targeting Hispanic In-Market Car Buyers
Over the past decade Hispanic car buying habits have undergone high growth and now comprise a very lucrative segment for the auto industry. “Despite that fact, there is no modern digital publication serving the needs of the Latino community: Siempre Auto will fill that gap,” says Iván Adaime, CEO of Impremedia. Adaime tells Portada that “out of the top 10 advertisers at Impremedia there are several automotive companies on top of insurance companies.” Adaime notes that “data shows that 92% out of the 17.8 million Hispanic households in the U.S. currently own a vehicle, while almost half of those households plan to buy a car in the next 11 months. And this trend is fueled by more affluent Spanish-dominant Hispanics”. Impremedia mostly targets the Spanish-language market in the U.S. In fact, Adaime earlier this year told Portada that he has not seen the model of publishing in “english with cultural nuances working at scale.”
17.8 million Hispanic households in the U.S. currently own a vehicle, while almost half of those households plan to buy a car in the next 11 months.
Hispanic Car Buying Habits: Less Car Brand Awareness
Nielsen’s latest Annual Auto Marketing report found that driving connections with the multicultural consumer is key to the automotive industry. According to the study, consumers from multicultural groups – Hispanic, Black and Asian American – are aware of 10-20% fewer car brands than the general U.S. population. The reports adds that “Automotive brands are less top-of-mind for multicultural consumers, and there is an imperative for marketers to close that gap because most purchase decisions can be traced back to brands that consumers already have in mind before starting out on the path-to-purchase. But when purchasing a vehicle, Hispanic and Black shoppers consider six to seven brands by the time they’re ready to buy. This represents two more brands compared to Asian Americans and non-Hispanic Whites. Hispanic and Black shoppers are more receptive to advertising efforts even if a brand wasn’t top-of-mind in the first place.” The reports adds that “Omnichannel advertising is essential for reaching multicultural consumers. Hispanic car shoppers, for instance, tend to be young and connected, and their level of recall for ads they see digitally is unmatched.”
Hispanic car shoppers, for instance, tend to be young and connected, and their level of recall for ads they see digitally is unmatched.
According to Impremedia’s Adaime, “Hispanics’ finances dictate pragmatism, that could mean buying used cars or being very practical and price-conscious when buying a new one. We also know that Hispanics over-index for being in buying mode and thinking about making a car purchase in the near future.”
New publications will be added in areas where we detect two trends: that there’s a growing need from the audience for quality content in Spanish and a lack of publishers serving those audiences.
“We are planning to launch new publications in areas where we detect two trends: that there’s a growing need from the audience for quality content in Spanish and, on the other hand, a lack of publishers serving those audiences. In this regard, the next few months are going to be pretty busy for us,” Adaime concludes.
While the option that celebrates and promotes the diversity of our country won, the election result shows a very divided citizenship. Purpose Driven Marketing: Two things to know. 1.: Brands need to allocate a larger amount of their media spend to media properties that invest in professional journalism. 2:. The Total Market Approach makes even less sense in this environment.
1. Challenge: Social Media’s Harmful Role Spreading Entirely Fabricated Content
The spread of entirely fabricated partisan content presented as factual through social media is very harmful to a functioning democracy. Evidence abounds: According to a 2019 study published in Science by MIT Sloan professor Sinan Aral and Deb Roy and Soroush Vosoughi of the MIT Media Lab. They found falsehoods are 70% more likely to be retweeted on Twitter than the truth, and reach their first 1,500 people six times faster. This effect is more pronounced with political news than other categories. Separately about two-thirds of Americans (64%) say social media have a mostly negative effect, according to a Pew Research Center Survey.
Solution: Purpose-Driven Marketing; Brands Invest in Professional and Trustworthy Media
Rafael Cores, VP, Digital Content at Impremedia tells Portada that “the vote has always been polarized, what perhaps is new is that there is more divisiveness so that one side that does not understand the other.” Cores emphasizes the value of strong editorial guidelines and professionalism: “At Impremedia our editorial line has always been that we are on the side of our community. We analyze carefully the policies that impact a majority of the Hispanic population and we report the attacks this community receives regardless from whom they are coming from. We try to provide information that is based on facts and not on opinions or false assertions.”
We try to provide information that is based on facts and not on opinions or false assertions.
Independent professional journalists need to play a much more important role in providing facts and content to decision making (votes) citizen. Truth seeking journalism must be a value that unites America. However, the cost of professional content and news production and distribution is very high making the running of a profitably operated property a very challenging proposition, but for very few companies (e.g. The New York Times and The Washington Post) as tech powerhouses Google, Facebook and Twitter command more than 80% of the digital ad market. In other words, we are talking about what economists describe as a market failure in the form of free market outcomes that result in an uninformed citizenship. Purpose-driven brands can solve this by investing a larger part of their media mix in professionally managed media properties that are trustworthy.Consumers should reward these brands by buying their products and services in a similar way that they reward them by speaking out against racism (e.g. more than 35% of consumers aged between 19 and 26 years have stopped shopping from a brand that has not spoken out against racism according to a survey by Oberland).
Consumers should reward brands who buy media in professionally managed properties in a similar way that they reward them if brands speak out against racism.
2. Challenge: The Total Market Approach Is Useless
As expert Dan Goldgeier asserts, a divided country means a divided audience for marketers. That is certainly also the case in multicultural marketing. According to the Associated Press, 63% of Hispanics voted for Biden and 35% for Trump. For Muslims the split was 64/35 and for Catholics 49/50. With the exception of African Americans (90/8), a substantial political divide is always present when marketing to different multicultural segments. The Total Market Approach, understood as an overall marketing strategy that includes diverse segment considerations, too often produces fully integrated cross-cultural approaches based on “common denonimators” that ultimately sterilize campaigns that fail to engage the target consumer. One key condition for effective purpose-driven marketing is that marketing communications successfully engage their target audience. That does not happen in most Total Market Campaigns.
Solution : Segment Based Marketing Leading with Diverse Insights
“The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target,” Larissa Acosta, Segments Team Leader, Integrated Marketing at Wells Fargo, tells Portada.
The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies.
“Effective Marketing is about people and relationships. The more we focus on the consumer, their needs their wants, the greater are our opportunities to affect business outcomes. In key categories including financial services diverse consumers represent the engine growth. Multicultural audiences represent 3.2 trillion in spending power. Smart marketers who really understand the business opportunity will seek ways to lead with diverse insights,” Acosta concludes.
The news that Entravision is purchasing Cisneros Interactive marks another chapter in the consolidation of the U.S. Hispanic and Latin American digital media space. Six questions and answers: Acquisition price? The rationale for the transaction? How Entravision is substituting off-line revenue losses with digital gains and more…(This article has been updated on December 17, 2020 with new insights from industry sources).
Entravision and Cisneros just announced that Entravision has acquired a majority stake in Cisneros Interactive. 6 things to take into account about the transaction and what it says about the multicultural and Latin American digital marketing sector.
1. Entravision purchases Cisneros Interactive: What is the price of the transaction?
Neither the price of the transaction nor the size of the stake of Entravision in Cisneros Interactive was disclosed (other than it is larger than 50%) UPDATE: According to our sources, the transaction did reflect a full cash-upfront payment with remaining strong incentives to deliver stronger results over time. Moving forward both Grupo Cisneros and Entravision will run the business based on agreed operational and financial standards within the compliance required as a public entity.
A full cash-upfront payment with remaining strong incentives to deliver stronger results over time.
2. What is Entravision buying?
Currently, Cisneros Interactive’s portfolio consists of six initiatives:
– Representations: Facebook’s Authorized Sales Partner in Latin America: Cisneros Interactive is Facebook’s strategic partner in Latin America, at this moment with presence in 9 countries(Ecuador, Paraguay, Bolivia, Uruguay, Panama, Guatemala, Costa Rica, Dominican Republic and Puerto Rico). Cisneros Interactive in these markets offers advertisers and ad agencies local selling efforts support, agency training and local credit and payment. Cisneros Interactive also has sales partnerships in some Latin American markets with Linkedin and Spotify with which it reaches 17 markets.
– UPDATED: Digital Audio: Cisneros Interactive fully owns Audio.Ad, perhaps the largest digital Advertising network and the only Audio DSP in Latin America (Audio.trade). It additionally has the exclusive representation in Latin America of large audio publishers such as Tunein, PRISA’s programmatic inventory, Deezer, and podcast-giant Wondery. This unit has direct and strong synergies with AudioEngage, which is Entravision´s own digital audio network. – Mobile Video. Cisneros Interactive has a mobile video platform spearheaded by its JustMob business unit which also holds a strong alliance with Unity, the global mobile platform provider and with presence throughout 16 countries in Latin America. All Cisneros Interactive employees will remain with the company, with Victor Kong continuing as Chief Executive Officer, based out of Miami. Carlos Córdova will serve as COO of the company and head of all digital audio units.
3. What is the rationale for the transaction in the U.S.?
Major drivers are to obtain critical mass, more marketing muscle and economies of scale. Portada estimates, that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019 (check out our recent Insights Report How brands engage U.S. Hispanics: New segmentation approaches). At least 80% of that amount is sold by Google and Facebook, leaving approximately US $210 million for other companies. Portada also estimates that advertising in Spanish-language digital media targeting Hispanics in the U.S.lied at US $350 million in 2019, with approximately US$ 70 million for non-Google/Facebook players. In the U.S. Hispanic market the main second tier players are Univision Interactive, NBC Interactive, Pandora and Spotify. Entravision digital revenues in the second quarter of 2020, were US $11.4 million. With the Cisneros Interactive acquisition and other acquisitions Entravision is attempting to step up and become a major player in the fifth of the market that is not dominated by Google and Facebook.
With the Cisneros Interactive acquisition Entravision is attempting to step up and become a major player in the fifth of the digital ad market that is not dominated by Google and Facebook.
If you add the fact that despite all the “diversity marketing” talk during COVID-19 there have been stronger declines in digital ad volume in the U.S. Hispanic advertising market than in the general U.S. market (e.g. CEO Walter Ulloa mentioned during the second quarter conference call that digital revenues were $11.4 million, which represents a decrease of 32% versus the same period last year), the need for consolidation through an Entravision Cisneros Interactive acquisition is imperative.
and Latin America?
The expanding Latin American digital media market is dominated by Google and Facebook who get at least 80% of the sales volume. The remaining sizable players are ad rep company IMS and video marketer Teads, and perhaps Spotify. Beyond these players, and some strong national market media, it can be said that there is no more “middle class” in the Latin American and U.S. Hispanic markets. Hence, the need of medium size players like Entravision and Cisneros Interactive to integrate.
There is no more ‘middle class’ among digital media properties targeting Latin Americans. Google and Facebook origin more than 80% of the market volume.
At this exclusive virtual event, Brand Decision Makers and Marketing Service Suppliers will share and accelerate knowledge on key topics including multicultural marketing, e-commerce marketing and marketing technologies.
4. Entravision Cisneros Interactive acquisition: Are both companies complementary?
By and large they are, as Cisneros Interactive has a strong footprint and client base in Latin America, it serves over 4,700 brands and agencies each month, and Entravision Digital in the U.S. There are some overlaps like Cisneros Interactive Audio Advertising company Audio Ad and Entravision’s Audio Engage. Although, the press release states there will not be personnel changes, some cost saving rationalization in some units going forward may make sense.
5. How is Entravision expanding its digital business?
For a number of years Entravision has worked on a digital strategy to meet market demand. In 2017, Esteban Lopez Blanco, at the time Chief Strategy Officer at Entravision told Portada that he “expected a growth rate of the digital business of more than 40% for many years to come.” At the time he estimated the share of digital revenues in Entravision’s overall revenues to climb from 20% to 30% by 2019 or 2020. UPDATED: For 2021, Entravision expects the ratio to be above 50% of revenues.
Earlier this year, Entravision announced the launch of Entravision Digital , which consolidates its business units in the US and abroad and marketing technology businesses under the Entravision brand. The company has worked over the past several years to build a portfolio of digital assets that possess digital reach, data insights and creative and programmatic capabilities. Entravision made its first foray into ad-tech when it bought Pulpo Media for US$ 15 million in 2014. In 2017 it bought Argentinean Martech company Headway , for a price insiders claim to lie between US $30 million and US $40 million, Headway includes AudioEngage, a digital audio advertising platform; ScrollerAds, an optimized video advertising marketplace; DataXpand, an international data management platform and audience marketplace with consumer insights. Entravision later bought Smadex, a programmatic, mobile-first, DSP services provider.
6. Does digital growth at Entravision compensate for off-line declines?
In the short term the answer is no, because right now all revenue types are declining at least in part due to the COVID-19 pandemic. The share of digital revenues on overall revenues was of 25.3% according to Entravision’s second quarter 2020 financial results. By far the largest part of Entravision’s revenue base is broadcast advertising (TV and Radio) which even before COVID-19 was having year on year revenue declines of at least 10%. In the words of CEO Walter Ulloa, those declines got bigger with the advent of COVID-19: “Television revenues in the second quarter were down 29% to US $27 million, compared to the prior year period due to the pandemic. National television advertising revenue was down 25%, while local advertising revenue was down 43%. Audio revenues were down 53% during the second quarter, compared to the prior year. Local revenues were down 52%, while national revenues were down 54% in the quarter.” For Q3 2020 In early August, Entravision’s Q3 television advertising business is pacing minus 8%, our radio business is pacing minus 34%, and our digital businesses are pacing minus 18% versus the third quarter of 2019.
For 2021, Entravision expects digital revenues to lie above 50% of overall company revenues.
Walter Ulloa, CEO Entravision, mentioned during the second quarter 2020 financial results conference call on August 4 that Entravision’s overall revenues decreased 35% to $45.1 million in the second quarter. Consolidated operating expenses were down 24%, and consolidated adjusted EBITDA was down 86% to $1.7 million, compared to $12.6 million last year.
The real estate industry is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Real estate brokerage Coldwell Banker is implementing an Inclusive Ownership Program to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the sector. To get a better undetstanding of the initiative and its diversity marketing implications, we talked to Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the holding company that owns Coldwell Banker. Riveiro is a member of Portada’s Council System of Brand Marketers.
A recent study by ad agency Oberland finds 91% of Americans believe their actions and the actions of brands will lead to sustained change on the social-justice front. According to the study, 42% of Americans aged 19-26 have stopped buying a brand that has been exposed for racist behaviors. Almost one-third of those surveyed want to see brands provide employees with appropriate diversity and inclusion training. 20% want brands to commit to hiring more Black employees. Are brands not just doing the talk but also the walk? And how are their diversity initiatives reflected in their marketing strategies?
Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the company that owns Coldwell Banker, tells Portada that “the real estate industry as a whole is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Coldwell Banker has identified this issue and is committed to not only expand its diversity in-house, but more importantly, be a leader in servicing, mentoring, and championing diversity in the real estate industry,” Coldwell Banker has a network of over 94,000 affiliated residential and commercial real estate sales professionals in 3,000 offices across 43 countries and territories.
We are commited to be a leader in servicing, mentoring, and championing diversity in the real estate industry.
Diversity Marketing: How is Coldwell Banker Prioritizing Diversity?
Coldwell Banker’s Inclusive Ownership program is an initiative to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the real estate industry. Each new brokerage that affiliates with Coldwell Banker will not pay the initial franchise fee and will receive financial incentives to support diverse business owners in the critical first two years of business. Benefits include up to $100,000 of funding, royalty fee rebates as well as education and mentorship. Owners will also receive membership and conference registration for an industry partner group of choice. As part of their inclusive Ownership program Coldwell Banker recently welcomed three minority owned new brokerages: Coldwell Banker Omni Group in Santa Ana, Calif., owned by Tina Marie and Rich Hernandez; Coldwell Banker Action Holdings in Grand Island, Neb., owned by Amber Schuppan; and Coldwell Banker Commercial Northland in Flagstaff, Ariz., owned by Becky McBride.
How Large are Minorities in the U.S. Realtor Base?
According to the National Association of Realtors, Hispanics/ Latinos accounted for 10 percent of REALTORS®, followed by Black/African-Americans (six percent) and Asian/Pacific Islanders (five percent). New members tended to be more diverse than experienced members. Among those who had two years of experience or less, 27 percent were minorities. Spanish is the most common second language that members were fluent in. Among all REALTORS®, 13 percent were born outside the U.S.
27 percent of realtors who have two years of experience or less are minorities.
Diversity Marketing: How is the Diversity Initiative Supported?
How does Coldwell Banker’s objective of Cultural Diversity impact Marketing? Riveiro tells Portada that his marketing approach is to get the word out to as many industry people as possible. “We’re focusing on growing awareness among industry reporters and influencers talking about the program and connecting with various organizations / associations – National Association of Real Estate Brokers (NAREB), Asian Real Estate Associate of America (AAREA), National Association of Hispanic Real Estate Professionals (NAHREP) – to spread the word. The program almost markets itself, as we’ve had hundreds of respondents interested after we first announced it though there are still steps needed to keep up the momentum.”
According to Riveiro, “an additional tactic that sets this program apart is the one-on-one guidance, mentoring and overall support that Coldwell Banker, at a national level, provides to all participants that affiliate with this program. The support starts on Day 1, and agencies benefit greatly from ongoing guidance, access to materials and an immediate network of industry professionals on a nationwide platform”
Video engagement is a major factor for successful advertising. A Vevo-Magna-IPG study finds co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity.
Music video platform Vevo has partnered with MAGNA and IPG Media Lab, to reveal significant findings around the nuances of multicultural audiences’ video viewing behavior.
“The Anatomy of a Video Experience: A Multicultural Study” explores how audiences consume content across multiple devices and their motivations around viewing habits. Understanding these subtleties is key for brands looking for great video engagement and reach receptive audiences and better inform their planning efforts.
The study found that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White), shared a love of co-viewing (watching video with someone other than yourself) on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV.
Longer viewing periods result from content that people find culturally relevant, specifically sports and music. On average, 37% of highly culturally relevant content viewing sessions last for one hour or more. When it comes to ad receptivity in particular, viewing music content on OTT devices is key, with over 60% of each group responding that they would be receptive to ads.
On average, 37% of highly culturally relevant content viewing sessions last for one hour or more.
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“Partnering with MAGNA and IPG Media Lab once again for this study is really valuable for our business” says Bryon Schafer, SVP of Research, Vevo, “With recent findings showing that 79% of Vevo’s CTV content is being co-viewed, it’s important for us to understand the nuances of audience behaviors in order to pass on these insights with our clients and partners. No screen is seeing a greater surge in Vevo viewership than the television, which has seen an increase of over 20% since March of this year with 61M viewers exclusively engaging on connected TV screens. Modeling user behavior against our content and go-to-market strategies keep us in tune with our global audiences. We’ve really enjoyed finding out exactly what makes viewers tune in – and stay tuned in to the content they watch.”
Video Engagement: Audience demographics
While co-viewing on OTT devices spans across all surveyed viewer behavior groups, each demographic has vast differences around why, when and how they watch content on various devices. Some of these findings include:
Older audiences are more likely to seek out informative videos for task-based viewing sessions across all devices.
Younger Asian audiences are more likely to watch binge-friendly genres, like music, resulting in longer viewing periods of over an hour across all devices.
Black/African American audiences:
As a whole, Black/African American audiences watch binge-worthy content for longer periods of time. However, unlike younger Asian audiences, younger Black/African American viewers tend to watch content in shorter spurts of less than 30 minutes, likely driven by higher levels of mobile usage.
Black/African American viewers are the most likely audience to seek out music and sports content.
OTT is the leading device to resonate with Black/African American viewers at their most engaged with 63% of audiences being receptive to ads on this device.
English-dominant and bilingual Hispanic/Latino viewers tend to have longer watch time. While Spanish-dominant audiences watch for mid-length sessions of 30-59 minutes.
33% of total Hispanic/Latino viewing sessions last longer than one hour.
60% of Hispanic/Latino viewers watching music on OTT are receptive to ads.
“Culture is a pervasive and essential part of every consumption and is being driven by people of color,” says Oscar Allain, VP of Cross-Cultural Strategy & Research at UM. “These consumers are critical to the growth of businesses across all sectors. Not only are they influential in driving their own cultures, but they are also shaping mainstream culture.”
These consumers are critical to the growth of businesses across all sectors.
“Our Cultural Dimensions study reinforced the idea that social media platforms have helped propagate and influence the conversation on culture. So the merging of our datasets with IPG Media Lab’s and MAGNA’s helps to bring new multicultural insights into how we think about creating smarter strategies for data analysis, planning, creative and more,” says Deidre Smalls-Landau, U.S. Chief Marketing Officer and Global Head of Culture for UM.
What: Who are brands turning to in order to engage today’s evolving Hispanic Marketing audiences? Are Univision and Telemundo still the go-to networks? How are budget allocations shifting as new platforms and media emerge? We talk to industry insiders to find out. Why It Matters: While digital platforms allow for more effective targeting and messaging, Univision and Telemundo remain referential to Hispanic marketers. Their market share and consumer demographics resources make them pillars of Hispanic communication.
Evolving demographics and new digital platforms and formats are keeping marketers on their toes. But while online video and social media are extremely popular, some things don’t change. Networks Univision and Telemundo continue to wield considerable power in connecting brands with Hispanic audiences.
Telemundo, Univision: a source of knowledge about consumer demographics in Hispanic Marketing
Multicultural marketers watch Univision and Telemundo closely. The industry leaders are an example on how to keep up with the increasingly complex Hispanic demographic. In many ways, marketers are comfortable turning to them as safe bets for reaching and truly engaging Hispanic audiences. Chris Ota, Marketing Manager, Confections & Global Foods at Nestlé USA said that their Multicultural COE, led by Margie Bravo, “works very closely with Univision and Telemundo as they bring great resources and knowledge about with consumers demographics.”
MargieBravo, Multicultural Marketing Manager at Nestlé USA explains how the two powerhouse networks have seen the shifting Hispanic Marketing landscape evolve. “They are adapting the offering for the future as they more than anyone has seen their audience evolve as well.”
Larissa Acosta, Segments Integrated Marketing Lead at Wells Fargo, agrees.“Latinos are an important consumer segment for Wells Fargo, which is why Univision and Telemundo are key partners in our marketing mix. They both target the same audiences with similar programming. We don’t see one network as more effective than the other.”
Too few marketers cater to Spanish-Speaking Hispanics
Lucia Ballas–Traynor, Executive Vice President, Client Partnerships at Hemisphere Group, supports both Ota and Acosta’s arguments in favor of Univision and Telemundo’s effectiveness. “Tell me what general market network can claim the type of share that Telemundo and Univision have. That’s what marketers and buyers should focus on,” she says.
Tell me what general market network can claim the type of share that Telemundo and Univision have? That’s what marketers and buyers should focus on.
She also explains what it means that Univision and Telemundo still hold such a high share of Hispanic audiences. “It means that regardless of acculturation level or language proficiency, Hispanics are still largely underserved by general market choices.”
English or Spanish. What difference does it make?
Regardless of which language Hispanics speak primarily, Spanish plays a key role in their identity. For this reason, “reaching ‘Spanish-language Hispanics’ is still a priority for a select group of marketers, but should be part of every marketer’s strategy,” adds Traynor.
Nonetheless, Morgan admitted that Univision and Telemundo are far more targeted to the bilingual or Spanish-dominant Latino. They “still don’t address the English dominant ones, as the majority of their programming (95%+) is Spanish-language.” As the Hispanic becomes more acculturated and bilingual, Morgan, at least, does not see them switching to English: “Their core business is Spanish-language television, so the story they tell in the marketplace speaks to that.”
New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant. We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.
Acosta of Wells Fargo seconds that sentiment, and adds: “Spanish language television has been delivering big ratings for a while now, so we are not surprised that the trend continues.” She also notes that much of the viewing for these networks is live, as streaming and time-delayed viewing become more common programming formats.
It’s complicated to address the Hispanic audience at the right level of inclusion. Marketers must understand that the Hispanic American today is complex. Bravo of Nestlé says that when Telemundo and Univisión started “[they] had a foreign-born population that didn’t speak English, but today the highest growth is coming from the second-generation of US-born Hispanics who are very proud of where they came from but want to also honor their American heritage.” For this reason, instead of focusing solely on Multicultural or Hispanics, many brands are opting for a Total Market approach.
More Brands Adopting ‘Total Market’ Approach
Nestlé is one of them. Their coffee Latino-oriented brands like La Lechera,Nescafé Clásico, and Coffee-mate communicate through both English and Spanish advertising. Bravo adds that “The Spanish creative may be slightly different to acknowledge the nuances of how the brand is viewed or used amongst Latinos.” However, a Total Market approach seems to facilitate more flexibility.
Bravo also mentions that Nestlé has introduced “exotic flavors inspired by Hispanic tastes across several categories,” like confections, frozen snacks, and beverages. For example, take the Nerds candy ¡Lucha Grande! campaign. “For Hispanics some of these flavors may be nostalgic. But for Non-Hispanic Millennials, these flavors may add a cool twist to their favorite Nerds candy,” says Bravo. And the industry recognized this effort, awarding it the National Confectioner Association’s (NCA) “Most Innovative 2017 New Product” award.
Are Facebook and Google alternatives to Univision and Telemundo?
So what about the alternatives to Univision and Telemundo? Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures, said: “Univision and Telemundo are Spanish-language television networks,” says Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures. “Facebook, Google and now possibly Snap have more influence specific to Latinos, [but] those networks have small digital footprints.”
On the other hand, Acosta noted that new digital platforms do offer opportunities that television does not. “New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant…We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.”
Acosta adds: “Both networks have recognized that media consumption is changing. They’ve set very interesting strategies in play to evolve with the times.” By acquiring properties like Fusion, The Onion, and The Root, Univision’s strategy seems to target not just Hispanic, but Millennial audiences. Telemundo, on the other hand, promotes within NBC’s properties. “They are both important partners, and are among many other Hispanic targeted vehicles that are part of our media mix,” Acosta said.
Multicultural and Hispanic Marketing: different but the same?
While some people use the words “Multicultural” and “Hispanic” interchangeably, they most certainly do not mean the same thing. Still, many brand marketers do not have budgets for both types of targeting. Are media buyers and brand marketers starting to shift budgets away from Hispanic into broader Multicultural targeting?
Morgan of Latina Media Ventures asserts that he does see them as competing for budgets. “It’s about trying to tap into two buckets of money. Some brands just have one or the other, but it’s smart on their part if they can pull it off, as Multicultural blurs the color or ethnicity line.”
But Morgan does not believe that budgets will shift away from Hispanic to Multicultural. Hispanic “can be as specific as Spanish-language only. This means the exclusion of the fastest growing Hispanic segment, the acculturated Latino.” In his experience, “there are specific Hispanic initiatives and then there are Multicultural ones.”
Will both fuse? Will marketers have to choose?
Acosta of Wells Fargo agrees that both Multicultural and Hispanic marketing are evolving. This progress is thanks to demographic changes “combined with the growing influence of diverse cultures on the mainstream, particularly with younger, digital native generations.” She adds that they work closely with Association of National Advertisers, the Alliance for Inclusive & Multicultural Marketing, and other industry organizations “so that the work is reflective of the growing influence and acceptance of diverse insights in business planning.”
Acosta asserts that, at Wells Fargo, they do not see any demographics or audiences as competing for budget. Instead, they let “the business opportunity determine our segment strategies and budget allocations.” This means the company allocates budgets in segments that are driving business through studying campaign data and measuring performance. So, in the end, it always boils down to having the right data. It’s important to know your target in order to choose the right approach.
While civil unrest has hit many U.S. cities, brands response to racism has often been unmindful. “Brands have nothing real to say about racism’ is the headline of a recent Atlantic Monthly article. Is Corporate America ready to provide messaging that resonates with the consumer? How should brands respond to racism? 7 things to know.
1. Brands Response to Racism that has Resonated with the Consumer: Nike and Ben & Jerry
Nike was among the first brands to pivot its messaging. On May 29, Nike posted a text video in black and white, tracked to somber piano music, on its social-media accounts. “For once, don’t do it,” the 60 second video solicits, invoking the brand’s famous “Just do it” slogan. Later in the video, the command gets only slightly more specific: “Don’t pretend there’s not a problem in America.” Eventually, the “problem” is named as racism.
Ice cream and frozen yogurt company Ben & Jerry issued a corporate statement on its website and on Twitter that’s been widely shared and praised on social media. It begins by saying, “The murder of George Floyd was the result of inhumane police brutality that is perpetuated by a culture of white supremacy.” The statement includes a four-point action plan for eliminating white supremacy in the U.S. and is accompanied by graphics that read, “We must dismantle white supremacy. Silence is NOT an option.” Over the last 10 days hundreds of companies, sports teams, and celebrities followed suit with posts of their own, many of them nearly identical in their vague phrasing and awkward execution. The social media noise and general lack of real commitment made by marketers, prompted Jeffrey Dunn, CEO of Bolthouse Farms, a vertically integrated farm company specializing in refrigerated beverages, to write the following in a LinkedIn post: “At Bolthouse Farms, we stand in solidarity with the black community and others who have faced social & racial injustice. To honor this, Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics. We hope these conversations can help us come together as a community to find long-term solutions for positive change in this country.”
Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics.
2. Are Companies “Opening their Purses” like Social Media Users Demand?
Social media users are saying “open your purse” to brands and celebrities posting messaging against racism in support of #BlackLivesMatter to demand action, not just words. An example of a company seemingly talking the talk but not walking the walk is L’Oréal Paris who spoke out publicly last Monday in support of the Black Lives Matter movement and received much criticism in the comments of its social post after model Munroe Bergdorf posted about the brand on her Instagram, saying it had dropped her from a 2017 campaign for “speaking out against racism and white supremacy.”
3. Yes, Some Are: P&G, Beauty Brands…
Procter & Gamble announced a new US $5 million contribution to the P&G “Take On Race” fund that will go to support organizations like the NAACP Legal Defense and Education Fund, the YWCA Stand Against Racism and the United Negro College Fund. In addition, over 60 beauty brands have pledged financial support for organizations including Black Lives Matter, the Minnesota Freedom Fund and the NAACP, according to a growing checklist of brands being compiled by industry watchdog account Estée Laundry. Unilever established a a $100,000 investment fund that will be provided to five activists working toward social change, and many of its brands including Axe, Tazo, Suave, Seventh Generation, Degree and Vaseline have pledged more than $1 million to organizations fighting for racial equality. Luxury makeup brand Glossier and YouTube both pledged $1 million each to related causes.
4. Brands Response to Racism: Donations are Not Enough; This is a Systemic Crisis
Let’s not forget that corporate donations can be more of a symptom of corporate racial injustice than a remedy. There are huge structural issues here. Black and brown Americans are extremely underrepresented in Corporate America; definitely in marketing departments. As Portada has written before, Multicultural and Hispanic Centers of Excellence that don’t have decision making power over budgets, are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic. While thought leaders often claim that corporate diversity drives business benefits, Corporate America has not adjusted; black professionals today hold just 3.2% of executive and senior manager positions and less than 1% of Fortune 500 CEO spots, according to a report from the Center for Talent Innovation called “Being Black in Corporate America.”
Multicultural Centers of Excellence that don’t have decision making power over budgets are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic.
5. Consumers will Vote with Their Wallets …
Consumers can play a crucial role in forcing corporations to really commit to diversity and racial justice. Consumers should increasingly reward companies who really commit to diversity and racial justice by buying their products and services. Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.
Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.
Millennials are already giving cause related factors a lot of weight when making purchasing decisions. Lewis Williams, EVP and Chief Creative Officer at Burrell Communications told Adweek. “that younger generations are “holding brands accountable. … They’re telling brands, you have to do more, you have to change the situation.”
6. Brands Who Recognize New Consumer Power will Benefit
Brands need to incorporate diversity and racial justice to their most important company objectives in order to reflect consumer preferences (see point 6 above). This requires that company leadership and stakeholders first pause to think; L’Oreal USA did have to pause and listen from members inside and outside its organization to decide both the multi-cultural division’s and larger company’s response, Erica Culpepper, general manager of multi-cultural beauty at L’Oréal USA, told Glossy. “On Friday, we paused all content that was beauty-specific, or around product or influencers, things that might seem trivial in the larger landscape… but elevating social justice as a company is something that is new for us, but part of our longer-term strategy,” she said. Let’s hope so.
7. Brands Response to Racism: MarTech can Help to Connect with the Consumer at Scale
Appropiately leveraged marketing technologies can help brands get closer to consumers in this time of unrest. “Time, Context, and Location are key to a successful marketing campaign. Given the global pandemic, and the current state of the country, every state and city is experiencing different things at different times. It is critical to talk to each audience differently,” says Oz Etzioni, CEO, of Clinch, an AI powered omnichannel personalization technology platform. According to Etzioni, “Personalization is now an essential. Customers increasingly expect ads to be personalized. Not in a creepy way, but in a way that fits with the way they see the world right now. Brands win audiences by creating connections based on empathy and relevance.” According to Etzioni, “70% of companies that use advanced personalization have already earned 200% ROI or more from it.”
Marketing and media moves at NFL, Meredith, and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Marketing and Media Moves
The NFL has hired Luis Martínez Wagner as its new Senior Director of Sales and Marketing, reported AdLatina. He previously led marketing at Hasbro Mexico, a company he first joined in 2012.
Meredith Corp has announced that General Electric veteran Jason Frierott will fill the role of Vice President as well as replace Joe Ceryanac as Chief Financial Officer. Frierott will take on his new role on March 9 and report to CEO Tom Harty.
Thomson Reuters Corp. has announced a number of management changes. Most importantly, former Nielsen Holdings PLC President and Chief Operating Officer Steve Hasker will take on the role of CEO and president. In addition, Mike Eastwood will fill the role of CFO. Both changes are effective March 15.
Automotive aftermarket company Driven Brands, which includes Maaco, Meineke Car Care Centers and Take 5 Oil Change, has named Summer Nunn as its first-ever female CMO. Nunn first arrived at Driven Brands five years ago. She most recently served as Marketing SVP for Take 5 Oil Change.
Teylez Perez is now Vice President of Marketing at Curacao. He first started at the company in 2008, but left in 2017 to fill leading marketing positions at Lionsgate and Hyphen-Studios.
Leonor Palao has started a new position as Vice President, Brand at J.P. Morgan Asset Management. She previously filled the role of Assistant Vice President, Brand Marketing and Advertising at OppenheimerFunds.
Telemundo 47 / WNJU announced the addition of journalist David Rodriguez to the station’s news team. Rodriguez will co-anchor the 5 PM weekday edition of “Noticiero 47 Telemundo” and also work as a general assignment reporter, regularly appearing on the 11 PM weekday newscasts.