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.
Sometimes people have the view that with enough data you can target anyone effectively, thereby removing the need to appeal to the audience’s culture. How can we continue to recognize the importance of culture in this technology-driven age? “Culture influences commerce. There is a recurring tendency among business leaders to take culture for granted. But culture is embedded in everything, and thus when culture changes everything is affected,” J. Walker Smith, Chief Knowledge Officer, Brand & Marketing at Kantar Consulting tells Portada. “Culture is how people live. Technology is simply a tool people use to engage with culture. Technology is not unimportant. It’s just not the context of life that is the root source of aspirations, expectations, and values. That’s culture.”
Periods of change are when culture gets noticed most, but it never goes away. The smartest marketers keep culture on the front burner. Lagging marketers ignore culture, so they are always behind change and new opportunities.
3 Things Brand Marketers Who Focus on Culture Know About
“Periods of change are when culture gets noticed most, but it never goes away. The smartest marketers keep culture on the front burner. Lagging marketers ignore culture, so they are always behind change and new opportunities, ” Kantar’s J.Walker Smith adds. Savvy marketers who focus on culture make sure to take into account the below three key considerations.
1. It’s Decision Science (Not Data Science)
Smart marketers who keep culture as a key priority know that ultimately data insights are there to base decisions on. That is why it is crucial that data scientists work in close coordination with brand marketing decision makers (who ultimately have the budgeting power.)
2. Marketers who Keep Culture on the Front Burner Run a Business Unit (NOT a Center of Excellence)
Data teams and cultural intelligence teams need to be embedded into the overall marketing organization. They should not act as consultants who have no real decision-making power (e.g. the Hispanic Centers of Excellence that some companies have set up are commendable initiatives but often don’t impact real marketing decision-making). The best is to integrate cultural insights into overall data analysis and marketing decision-making. For example, Curacao, a department chain store with locations in California, Nevada and Arizona which ranks among the top 100 electronics and appliance retailers in the U.S., makes sure to take into consideration cultural insights as part of the whole marketing mix. Curacao has a team of data scientists that look at purchasing behavior and take into account culture by looking at consumers in the following way: – Spanish-dominant – Bilingual – Hispanic – English-General Market
Another alternative to make sure that data insights and marketing budgets are aligned is by creating a business unit. Pepsi created a Hispanic Business unit in 2018(a move somewhat contrary to overall U.S. marketing trends). Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit, tells Portada, that her Hispanic business unit independently determines strategy , commercial tactics and, most importantly has a dedicated advertising and marketing budget. Teasdale is responsible for the overall Hispanic strategy, engagement and sales for the Hispanic business within Pepsi North America Beverages.
“We also have our own data team, which is responsible for analyzing the Hispanic business today. That is how we measure performance. Another part of the team analyzes consumer insights. E.g. segmentation. Their worked helped to provide a perspective of Hispanics that goes beyond years in the country and language and is more in the mindset of the target, ” Teasdale adds. This helped Pepsi to come up with “Es lo que quiero“, the Hispanic adaptation of the recently released tag “That’s what I like”.
Marketers in the Portada Council System voted for the topic “Why data scientists need to be culturally sensitive; A brand marketer’s perspective” as the keynote topic for the upcoming Portada Los Angeles, April 2 conference. The topic selection highlights how important it is for brand decision makers understand the cultural implications of the data insights process.
3. Marketers who Focus on Culture Check Data Quality (DMP’s and DSPs)
The smartest marketers who keep culture on the front burner also know that data quality is key, particularly when it comes to cultural insights. Data management platforms (e.g. Blue Kai, LiveRamp and others) and demand side providers do not always provide solutions that capture cultural nuances. “For DSP’s and DMPs to have data on particular consumer targets, they need to identify and code them separately. Only this way you can get information/insights back,” an industry insider tells Portada. The issue is that DMP’s and DSP’s often don’t do that extra mile, because they are not paid to do it.
DMP’s and DSP’s often don’t to that extra mile, because they are not paid to do it.
In the era of technology, the winner is the one who adapts faster. Thus, clients are moving their programmatic ad buying in house, as well as looking for media services in big consultancy firms such as Accenture. This results in a need for tech knowledge in ad media agencies who are facing challenges to remain relevant. Learn how Portada Council System’s leading brand marketers and agency executives offer solutions to better adapt to an increasingly demanding technological landscape.
About 30% of marketers were unsatisfied with their agency model in 2018. (Movidiam)
Nearly 80% of the brands that are members of the U.S. Association of National Advertisers (ANA) have some form of in-house agency, almost double since 2008. (ANA)
In 2019, the purchase of creative ad agency Droga5 by Accenture meant adding a creative muscle not normally associated with giant consulting firms. Additionally, WPP announced that it would not participate in pitches audited by Accenture.
Three Tech-Knowledge Challenges According to Portada Council System Members
1. Focusing on Digital Lower-Funnel Can Hurt Traditional Brand Buiding
Related comment: “Consultancies and MarTech companies are mostly involved with lower-funnel conversion, but what happens if nothing comes in the lower funnel? Focus on digital to the exclusion of traditional media which may have a more brand building, higher-funnel role in messaging.”
This is just another fad in the industry. Media agencies have a much more unified approach to marketing and media than consultancies.
2. Finding the Right Talent Isn’t Easy
Related comment: “One way to boost talent and knowledge is by encouraging companies to move from vertical structures to demand cells (sales, marketing, supply, development, etc) so that they can evolve to multifunctional teams instead of verticalities.”
There’s too much technology, too many tools that no one knows how to handle.
3. Leadership is Too Far Above
Related comment: “Managers often give instructions from corporate without much real knowledge of the market.”
Many times, senior executives at agencies have a lot of theoretical knowledge they haven’t really put in practice.
The fate of multicultural marketing is a hot-button topic, with some saying it’s officially “dead” and others arguing that it should be more important today than ever. As minority ethnic groups shaped the evolution of the U.S. population in recent years, multicultural marketing became a hot topic in every corporate marketing department. Smart brands started to invest significant effort in strategies to reach ethnic groups with distinct cultural and ethnic behaviors and values. Best practices emerged, but marketers often stumbled and struggled to get it right.
Today there is a wide range of views on multicultural marketing among industry leaders. Here, we look at a range of perspectives on how brands can form genuine, long-lasting connections with diverse audiences.
Ethnic minorities playing an increasingly important role in U.S. demographics
Between 2000 and 2010, the U.S. Hispanic population grew by 43%, or four times the growth rate of the total population, according to the Census Bureau. And they’re not slowing down – the U.S. Hispanic population is expected to double in the next 40 years. In 2020, the country’s population of 17-years-old’s and under will come from a minority background for the first time.
In fact, diverse ethnic groups are so significant to the makeup of the U.S. population that the Census Bureau recently launched a $500 million marketing campaign in 13 different languages aimed at reaching multicultural audiences. For the first census to go digital, the U.S. government is making a massive effort to reach 99% of the population. In today’s America, that requires significant effort to reach niche ethnic audiences.
While this year’s census is sure to provide important insight on population trends, the government predicted that by 2020, U.S. Hispanics will make up 29 percent of the growth in real income and are expected to add more than $1.3 trillion in buying power. Despite all this, multicultural ad spend only makes up 5% of marketing budgets today.
America’s shifting population sparks debate over multicultural marketing
Latinx, Asian and African American populations now have a combined population of 130 million, making up almost half of the population. With the massive growth of these demographics came a shift in the marketing world. The big question was this: How do cultural differences among ethnic groups shape different lifestyles, preferences, and values? And how can marketers better target these different groups with tailored products, messaging, and campaigns?
Multicultural marketing became both a buzzword and a real concept: Entire departments and agencies dedicated to targeting diverse audiences emerged. But as ethnic minorities become the new “majority” in the United States, some have argued that the term is obsolete.
After all, if such a significant slice of the American population is multicultural, then what exactly is the general market if not a mix of diverse cultures? Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense. Today, the fate of multicultural marketing is a hot-button topic in the industry, with some saying it’s officially “dead” and others arguing that it should be more important today than ever.
Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense.
Minorities don’t believe they are being represented in ads
Brands’ failure to reach diverse audiences is reflected in the attitudes of minorities themselves. A recent study by Adobe found that nearly three in four whites (74 percent) believe their race/ethnicity is represented in the ads they are served, compared to 26 percent of blacks and only 10 percent of Hispanic/Latinos.
Some argue that multicultural is the new general market
Those that argue that multicultural marketing is dead focus on the fact that there are now so many ethnic minorities shaping the U.S. population that they have become the new general market. They argue that treating ethnic minorities like distinct audiences reflects an attitude that pits assimilation against multiculturalism and provokes cultural boundaries instead of inclusion.
This attitude would imply that diversity and multicultural departments, multicultural agencies, and segmentation by ethnicity are all unnecessary. At the same time, it would lead to new approaches to marketing that look at the general market with an appreciation for how cultural forces and fusions shape trends and consumer behavior. Concepts like cross-cultural and poly–cultural marketing are emerging. Some find this exciting, not discouraging.
Diversity and Inclusion important, but not the same as multicultural marketing
Given the country’s ongoing demographic evolution, backlash against multicultural marketing is surprising to some. Many veteran marketers have issued a warning to those who minimize the importance of multicultural marketing. To them, a “minority-majority” America offers smart marketers enormous opportunities for growth.
Despite the growth and purchasing power of multicultural populations, corporate America tends to look for blanket approaches to addressing diversity. There has been a recent increase in the number of “Diversity and Inclusion” programs in corporate offices. This is an important effort that is effective in creating an inclusive space for diverse voices in the workplace, but it is not the same as maintaining multicultural marketing practices.
Corporate brands need multicultural marketing departments because representing diversity in the office through “Diversity and Inclusion” programs is not the same thing as investing in strategic initiatives to better market to multicultural audiences. The former looks inward to shape corporate and workplace culture, and the latter looks outward to grow business.
U.S. Hispanic identity tied strongly to culture of origin
According to a study by Kantar Consulting, 92% of Hispanics believe that it feels natural to live in the U.S. and connect to its culture but retain the culture of their country of origin. 57% of Hispanics believe that the Spanish language is more important to them today than it was just five years ago. And 62% of younger Hispanics – the ones who feel particularly unrepresented in the market – reported becoming more interested in the Spanish language. Brands looking to connect with emotions and themes that truly connect with Hispanic audiences should look to their cultural roots for sources of inspiration.
Smart brands are turning to multicultural to reinvigorate, strengthen image
Some marketers have identified and built strategies around these opportunities. Large brands across the country are betting big on multicultural to transform their brands and, in turn, lead to significant growth.
Fast-food chain Denny’s is one example. The brand is looking to target young, multicultural diners with their campaign “See You at Denny’s,” which focused on illustrating a diverse, relaxed, and comfortable brand.
John Dillon, Chief Brand Officer at Denny’s, explained to Forbes: “It was important for us to tell our story to multiple audiences and to make sure we’re speaking to the cultural nuances of African-American consumers and Hispanic consumers, as well as the total market. Working with these three agencies executes those nuances and allows us to share who we are as a brand and the inclusivity and diversity that we stand for. We are a family brand and always have been and we are recognizing that the American family has evolved.”
Procter & Gamble is also betting big on multicultural after discovering that they record top performance among African American and Hispanic consumers in market share. Marc Pritchard, P&G’s chief brand officer, told the audience at the Association of National Advertisers’ (ANA) 2019 Multicultural Marketing & Diversity Conference that if P&G’s brands could match their general-market performance with multicultural audiences. “The size of the prize is big – up to $1 billion in extra sales just by achieving market shares equal to the national average on all of our brands,” Pritchard said.
Whatever your view on multicultural marketing, inaction is irresponsible
While reasonable marketers can disagree about multicultural marketing, all comprehensive marketing strategies must account for today’s increasingly diverse population. Whether you adopt the “minority majority” attitude, focus on cultural fusion, or embrace segmented targeting, successful marketing means recognizing and elevating a wide range of voices and cultures.
The podcast advertising market is becoming a force to be reckoned with. In fact, marketers are projected to spend over US $1 billion by 2021 according to the IAB and PwC. One recent transaction in the podcast M&A space caught our eye: the strategic investments in reVOLVER Podcasts by Latido Music.
Latido Music Partners Up with reVOLVER Podcasts
A source at Latido Music, a digital platform for Latin music fans, has told Portada that “for now, it is a minority stake in the double digits, but we are both optimistic about reVolver’s long-term success and ambitious, so you can draw your own conclusions.”
For now, it is a minority stake in the double digits.
The source adds that this was a strategic investment in every sense of the word. “We see reVolver as having a leadership position in its segment, and we like that its consumer base overlaps substantially with that of Latido Music.”
As with most target audiences in the digital age, the digital media industry for Latinx is very fractionalized. That is why, according to the source, ” a strategic investment in reVolver is something of a ‘horizontal integration’ strategy. We try to capture a greater mind share of this important audience across devices and content types, rather than trying to own the entire value chain of a single content type – which in this day and age is effectively impossible anyway.”
The amount of the investment has to remain undisclosed. However, the source adds: “that it is a graduated investment, meaning our stake in the company will grow over time.”
Multicultural marketing moves 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.
K12, a for-profit education company that sells online schooling and curricula, has appointed Adrian Jordan as Senior Director, Multicultural Marketing and Strategy. He previously filled the role of Director, Multicultural Marketing at Charter Communications. Jordan is a member of the Portada Council System of Brand Marketers.
Publicis Groupe announced the appointment of Ronnie Dickerson Stewart to Publicis Groupe U.S. Chief Diversity Officer, effective February 3rd. In this role, Stewart will be responsible for driving the organization’s Diversity & Inclusion culture and initiatives in the U.S. She will also lead the Talent Engagement & Inclusion (TE&I) Council.
Baseball superstar Alex Rodriguez is the new Chairman and Co-owner of Dominican beer brand Presidente, owned by AB In-Bev. “Presidente is one of the most prestigious brands in the DR,” he told Forbes. “It’s unfortunate my father is not still here to watch this, but I think that he would be more proud of this partnership than my home runs.”
Hulu CEO Randy Freer is set to step down from his role as leader of the streaming platform. The move comes after Disney looks to better integrate the streamer with its Direct-to-Consumer & International division under Kevin Mayer. Disney controls all of Hulu since its 21st Century Fox and Comcast deals.
Pepsi announced an integration with Telemundo’s, through which it will become the first-ever beverage sponsor of La Voz, the Spanish-language edition of NBC’s “The Voice.” As the show’s first-ever beverage sponsor and prizing partner, Pepsi will take the season two stage by storm, celebrating Latin music and the talented phenoms giving everything to become the next big musical superstar. The premiere episode of season two of “La Voz” is set to air this Sunday, January 19th.
The new investment reflects Pepsi’s Hispanic Business Unit commitment to Hispanic Marketing and to “elevate the voice of the Hispanic consumer”, Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit , tells Portada. “The La Voz sponsorship, which taps into the Pepsi brand’s rich heritage in music and entertainment, allows us to celebrate Hispanic culture and passion points and support the next generation of talented musicians who aren’t afraid to live life their way and chase their musical dreams,” Teasdale adds.
The campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.
Pepsi will level up the season two “La Voz” prize, bringing the original $100k grand prize up to an epic $200K. The integration will span the blind auditions, battle rounds and live performances. It will feature cups branded with Pepsi in the coaches’ chairs and include Pepsi branding across a number of touchpoints: multi-screen presence throughout the season, in-show and out-of-show custom activations on linear and social and prominent thematic storylines woven throughout the season.
La Voz Sponsorship with the Fusionistas Target in Mind
Teasdale, a half Ecuadorean and half Colombian executive, notes that “Pepsi understands the passion point that Hispanics have with music. It’s in their DNA.” She adds that the campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.”
“Eso es lo que quiero”
The integration will also bring to life and feature the newest U.S. Pepsi campaign tagline, “That’s What I Like” (“Es Lo Que Quiero”). Launched earlier this month, the new tagline is the brand’s first in two decades and is inspired by the most loyal Pepsi drinkers, who proudly like what they like and live their lives out loud without worrying about what others will think – whether that’s belting out a song at karaoke, clapping at the end of a movie, or simply enjoying a Pepsi.
Pepsi unveiled five new national commercials to launch the new tagline, three of which were developed in partnership with the Pepsi brand’s Hispanic agency, Alma (“DJ BBQ,” “Subway,” and “Lavandería). The new ads spotlight various everyday people getting lost in a moment and finding themselves dancing in unexpected places or situations, despite the amused gaze of onlookers. Each spot is underpinned by a variety of upbeat music spanning hip-hop, dance hall, Latin pop tracks and more. The spots will air across English and Spanish-speaking properties to reach the brand’s ever-growing fusionista fans, Latinos celebrating and blending their Hispanic and U.S. cultures.
The quick-service-restaurant industry is one of the sectors that are expected to continue growing steadily in the U.S. As competition multiplies, QSR marketing needs to become more precise, and tailored for specific audiences.
What Does QSR Marketing Mean?
Quick-service restaurants are those where consumers pay for food before eating. In the U.S., QSRs typically sell burgers, sandwiches, ethnic foods, pizza, pasta, and chicken. This industry excludes coffee and snack shops. In recent years, QSRs have started to diversify as a result of evolving consumer behavior and preferences. Thus, the space has become more crowded.
QSR brands have to be smart about their marketing. They already have two main advantages: low prices and convenience. Even though the category has performed well recently, as shown by the US $273 billion in revenue and an average yearly growth of 4.1% in the last five years, heavy competition forces QSR operators to differentiate in a fierce battle where smarts mean everything.
One way to be outstanding is by offering outstanding experiences. In the words of Alex Tokatlian, Brand Marketing Director at Marco’s Pizza and until late 2019 Advertising Manager at Domino’s Pizza*, “experience matters a 100%. It’s different for our category because people are mostly enjoying their pizzas outside of the restaurants. They get it delivered to their home, but we do everything we can with technology to make the experience as easy and as seamless as possible. We’ve done things like Domino’s Hot Spots, that mean you don’t need a specific address to receive a pizza, you can have it delivered to the beach, the park, etc. We find ways to bring meaningful service innovation to life, just to make that pizza experience easier and faster.”
Experience matters a 100%.It’s different for our category because people are mostly enjoying their pizzas outside of the restaurants.
How Quickly is the QSR Marketing Industry Growing?
The QSR industry in the United States is forecasted to reach US $731.8 billion by 2024. The main factor driving the industry growth is the digitalization of food services, including anticipated reservations, orders, and online payment. This is a great opportunity for marketers, as digital advertising is expected to grow from 36.1% in 2019 to 43.8% of total QSR Marketing by 2023.
In 2018, McDonald’s was the top spender within the category. With US $761 million spent in ad expenditures, the chain was way ahead of brands such as Domino’s, on the second spot with US $418 million, and Taco Bell on the third spot with US $415 million.
What’s the Role of Technology?
A recent report by the National Restaurant Association used a forecasting approach based on questionnaires sent to experts to predict the future of QSRs by 2030. Three out of five developments center around technology: mobile payments, handheld payment terminals, and a majority of digitally-placed takeout or delivery orders placed digitally.
Evidently, QSR marketing should take this into account. We asked Alex Tokatlian about how Domino’s is taking advantage of technology to improve marketing. He told Portada about their ground-breaking initiative “Points for Pies”, a loyalty program that rewards consumers of the pizza category regardless of where they eat. “It was a big effort right before the super bowl, the first of its kind as far as we know,” shared Tokatlian. “I don’t think there’s been another brand willing to reward consumers for participating in the category, not specific to the brand.”
Also, the program is completelymobile-based and uses artificial intelligence. “We know technology is highly relevant in the multicultural segment, and we had the experience available in Spanish as well,” commented Tokatlian. “It was also our first time using AI in this capacity. We had a “Pie-dentifier” built into the app, which scanned the images you put it on and it had to decide whether it was pizza or not. If it was pizza, we awarded the points to the customer.”
QSR Marketing and the Multicultural Opportunity
According to recent data, 40% of America’s population will be multicultural by 2021. Also, Hispanics account for 20% of QSR sales. “Hispanics are also more family-oriented when eating out,” mentioned Geoscape CEO César Melgoza to QSR magazine. “Half of Hispanic restaurant visits from Spanish-dominant Hispanics include parties with children, and one-third of visits from English-speaking Hispanics include children. This is compared to only 29% of non-Hispanic families who bring their children to restaurants.”
Moreover, QSRs are important to Hispanics not only in the U.S., but also in their origin countries. “The QSR category is very relevant for Hispanics,” shared Aisha Burgos, SVP of Digo Hispanic Media. “In Puerto Rico we estimate that there are 1,300 quick service restaurants in an island that measures 100×35 miles. According to Scarborough, 88% of the population of Puerto Rico have visited a QSR in the past 30 days. We see how these restaurants are using omnichannel strategies. They’re trying to connect with the right person at the right moment with the right message.”
Why Digitalization is the Key According to Digo Hispanic Media
Burgos agrees that digitalization is a crucial component of QSR marketing growth and efficiency. “In digital, we’re seeing a lot of different strategies that include high impact display banners when they are launching a new product,” she explained. “This is a very effective strategy since it helps them create awareness in the first stage of the funnel. Some examples of high impact banners that they use include formats like the interscroller, rich media, takeovers, and video. We also see how they use day parting in a very effective manner to showcase their menus and products in the correct context for the user.”
These restaurants are using omnichannel strategies to ensure they connect with the right person at the right moment with the right message.
Actually, Digo Hispanic Media is seeing an “always on” approach with QSR marketing. “They need the reach and frequency to stay relevant in a competitive landscape,” said Burgos. “In our sites we’ve seen an average of .30% CTR for this category, which is really good since most of these banners don’t necessarily have a clear CTA. Their main focus is to drive traffic to their locations, not their sites. With 90% of traffic coming from mobile, QSRs are very clear that they need to be in mobile.”
Brands Know How Important Multicultural Consumers Are
The growth potential and buying power of Hispanics make of this group the most important multicultural audience. For Domino’s Pizza, it’s important to really make Hispanics like they’re included in the brand’s marketing. “We always have to keep an eye in how media consumption habits are changing, the best way to reach the consumer and also what’s most effective for our franchisees,” said Tokatlian. “So we’re always trying to understand media behavior and how to reach different audiences. Specifically for multicultural audiences, we think tailored messages make more sense. We’re very disciplined in our approach, we’re very much into the data, we test and learn everything to make sure the investments we’re making are effectively driving sales.”
A customized message is important, but you have to find a balance between broad general marketing and where it makes sense to send a more nuanced message.
In fact, Hispanics are a very important part of business for Domino’s. “As a national brand we have a footprint all over the country in major cities, especially in markets with high Hispanic populations; 20% of stores are in high Hispanic markets and those stores account for 25% of our sales,” shared Tokatlian. “For the multicultural segment, we did a spot featuring an employee explaining the ‘Points for Pies’ program. He goes around different situations and different parts of the city showing ways in which people enjoy pizza. We had a corner slice shop, eating pizza at home with the family… We used examples that are relevant for that audience, beyond just language.”
Furthermore, Domino’s genuinely cares about giving back to the community. Their employees have the possibility to become franchisees, and 90% of Domino’s franchisees started off working at a store. “The people that are franchisees have come from within, they have grown at our stores,” told Tokatlian. “Often they end up serving the communities that they came from. In terms of our national footprint in Hispanic communities, you do get a lot of multicultural franchisees.”
How to Reach Those Multicultural Consumers?
The first obvious answer is data. For Domino’s Pizza, data has been important since before it was smart. As Alex Tokatlian explained, “We needed people’s addresses and phone numbers. We also look at their order preferences to offer improved experiences. Knowing what they like, how they order, how they use our website… It’s very important for us to understand our consumers. The experience is customizable, there are always certain toppings that certain markets order more.”
Furthermore, said Tokatlian, it’s very important to test and learn. “Everything we do, we put the rigor up front to test and measure if things are working or not, which allows us to be more efficient and effective in marketing and media strategies. That’s my best advice. It requires some inspiration but also a sense of discipline. Trying to think ultimately what will be the best thing to drive the business and engage with customers in a way they want. A customized message is important, but you have to find a balance between broad general marketing and where it makes sense to send a more nuanced message. It’s all about being disciplined, leveraging data and taking a measured approach to things.”
* Alex Tokatlian was interviewed for this story in the summer of 2019
2020 promises to be an exciting year in marketing. We asked brand and media agency executives that are part of the Portada Council System where they see the main challenges and opportunities.
As the new year fast approaches, Portada touched base with brand marketers and media agency executives, members of Portada’s Council System. We asked them what 2020 could bring in terms of challenges and opportunities. Among the most alluring opportunities and/or challenges, they cited: preparing for a world without (or a smaller) Facebook, more proprietary data for brands, efficient cross-screen metrics, marketing in a divisive political scenario, and finding synergies between Hispanic and general marketing campaigns.
2020 opportunities: Preparing for a world without (or a smaller) Facebook
Marketers’ reliance on social media as a marketing and lead-generation tool has been parallel to Facebook’s rise to social media heaven. But has the social media giant reached its zenith or, even worse, is it starting to decline? “How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond? This is more of a longer-term challenge, ” says John Sandoval, Senior Brand and Latino Marketing Manager at Intuit.
How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond?
Brands need more ownable and proprietary data
To Peter Lee Brown, Brands & Communications Strategy, at Nestle, “Data has become commoditized, brands need more ownable, proprietary data“. Related to this challenge, Brown sees an opportunity for brand marketers in terms of “lean innovation and in-housing capabilities”, as he expects them to “lead to greater speed, creative expertise, and control.”. According to Brown in the current scenario of perpetual disruption, “brands can drive disruption and become challengers.”
Ariela Nerubay, Chief Marketing Officer at Curacao, also cites disruption, in this case in the retail space as an alluring opportunity: “Disruption of the retail in-store experiences to drive traffic to physical stores.”
Making second-generation Hispanic campaigns attractive to non-Hispanics…
Successful marketing to the LatinX consumer (second and third-generation Hispanics) is paramount to the progress of Corporate America in 2020 and beyond. Ariela Nerubay, Chief Marketing Officer at Curacao, tells us that “How to develop targeted campaigns for the 2nd and 3rd gen Hispanic on general market media that also attracts non-Hispanics” is one of the main challenges for her company in 2020. Similarly, she also cites developing a “lead generation strategy for Hispanic and non-Hispanic customers with same creative” as a challenge and opportunity.
…in a world where it is increasingly “not good” to be the “other”.
Marketing in a politically convoluted environment that is often divisive has been an important topic at Portada Council System workshops in 2019. Going into 2020 it will continue to be a challenge for brand marketers. As Intuit¨s John Sandoval notes “Specifically to multicultural marketing, in a country and increasingly in a world (last week’s UK election) where it is ‘not good’ to be the other or a minority or a population group other than the ‘mainstream’, how do we get the resources, attention, etc, from across the landscape? What if Trump is re-elected for another 4 years?”
Cross Screen Measurement to understand Reach and Frequency
The ascent of video marketing, partly a result of the substitution of TV media budgets by video, is bringing in more 2020 opportunities for media buyers. Darcy Bowe, SVP, Media Director, Starcom USA tells Portada that “cross-screen measurement that allows us to understand overall reach and frequency, including understanding where truly incremental reach is being driven” is an important opportunity for efficient media buys in 2020. Bowe is part of Starcom’s Video Center of Excellence, where she focuses on investing in all video media as well as creating content and building integrated programs in the video media space on behalf of her clients.
Given the range of CPMs and creative units across media types, how do we value an impression in each type and how does that impact ROI?
Bowe also notes that, given the range of CPMs and creative units across media types, it will be important to develop solutions for how impressions should be valued in each type and how this impacts ROI. To resolve the relationship between performance and branding (awareness) will be another challenge: “How can we best create media plans that balance targeting the most likely consumer to interact & transact with the brand as well as find broad reach to create awareness?”
Realogy’s Karim Amadeo has been promoted to Manager, Multicultural & Growth Market at Realogy Holdings and CENTURY 21. We touched base to learn more about her new position and Realogy’s multicultural marketing strategy.
Karim Amadeo, a Portada Council System member, has recently been promoted from Manager, Hispanic National Hispanic Advertising, Century 21 Real Estate to Manager, Multicultural & Growth Market at Realogy and Century 21. We wanted to know more about this new position, so we sat down with Amadeo to ask her a few questions about this new role and Realogy’s multicultural marketing strategy overall.
Realogy is a publicly listed major provider of residential real estate services in the U.S. Its brands include Better Homes and Gardens® Real Estate, CENTURY 21®, Climb Real Estate®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, Sotheby’s International Realty® as well as NRT, Cartus®, Title Resource Group and ZapLabs®, an in-house innovation and technology development lab. The company, headquartered in Madison, NJ, operates around the world with approximately 188,600 independent sales agents in the United States and approximately 111,200 independent sales agents in 113 other countries and territories. According to the most recent financial statement, Realogy spent US $202 million in marketing in the first nine months of 2019 versus 199 million during the first nine months of 2018.
Realogy provides independent sales agents access to leading technology, best-in-class marketing and learning programs, and support services to help them become more productive and build stronger businesses. In her expanded role, Amadeo tells Portada, she will be serving all the Realogy brands, while continuing to lead Multicultural National Advertising efforts at Century 21 Real Estate.
“As part of my expanded role, I will focus on managing our industry partnerships and increasing our agent and broker engagement efforts,” she commented. “Additionally, I will continue to work with CENTURY 21 on its Empowering Latinas campaign, which launched in 2017 and has awarded more than 100 scholarships to Latinas in Miami and Houston markets, as well as the brand’s collaboration with the Eva Longoria Foundation.”
As part of my expanded role I will focus on managing our industry partnerships and increasing our agent and broker engagement efforts.
Realogy’s Multicultural Objectives
When asked about which in her opinion are the main objectives of Realogy when it comes to the multicultural consumer, Amadeo answers that “Realogy has worked to elevate our engagement throughout the year, and has commenced a three-year Growth Markets strategic plan to leverage the scale of Realogy and better align our internal brand teams. We participate in industry conferences that specifically focus on policies that support a more diverse market.”
In addition, Amadeo explained that executives and affiliates volunteer as speakers to join the conversation and make a positive impact in the real estate industry and in the community in two ways: “First, as a shared service for our different brands, Realogy seeks to attract and retain diverse corporate talent, agents and brokers to mirror or exceed growth market demographics in the communities that we serve. Second, as end-consumer Realogy focuses on external diversity marketplace efforts by forming partnerships with professional real estate associations whose ongoing missions are to improve diverse homeownership rates, including among the Hispanic, Asian-American, African-American, and LGBT communities.”
Cultural traditions that drive multicultural shopping are also resonating with many mainstream shoppers, which increases return on investment and magnifies the business case for reaching multicultural consumers.
According to Amadeo, “the population growth and the increase in buying power of Hispanic, African-American, Asian, and LGBTQ segments has provided significant growth opportunities for companies that serve the needs of multicultural consumers. Brands that provide a high level of service and support to multicultural consumers are finding success. It’s not about simply having an ad in a different language. Rather, it is about being culturally relevant. We still need to see more ethnic diversity in marketing and media.”
Amadeo adds that “According to Nielsen, the multicultural consumer is younger than the rest of the population and a trendsetter and taste maker across a broad range of categories, from food and beverage to beauty products.”
Reaching out to this segment has an important potential to increase ROI. As she explains, “Cultural traditions and social aspirations that drive multicultural shopping and product behaviors are also resonating with many mainstream shoppers, which increases return on investment and magnifies the business case for reaching multicultural consumers. Additionally, multicultural consumers have a higher life expectancy, living longer than their White Non-Hispanic counterparts.”
New Lead Generation Programs
Realogy’s overall marketing strategy has recently been strengthened by several lead generation programs, as we could infer from CEO Ryan Schneider’s conference call with financial analysts on November 7. Over the past year, Realogy has launched multiple marketing products, including Listing Concierge and Social Ad Engine to help drive better marketing for its agents.”We are excited to enter 2020 with three new high potential lead generation programs that can provide high quality leads to our agents and franchisees and deliver great value propositions to consumers,” said Schneider.
“In Q3, we launched Exclusive Look, a new marketing product available to all of our 47,000 Coldwell Banker owned brokerage agents share and search new listings before they are available to the broader market via public websites,” he added. “Second, last quarter, we launched TurnKey in collaboration with Amazon, as a new source of lead generation for our agents and franchisees. In Q3, we launched the Realogy Military Rewards program. And more recently we announced an Affinity lead generation program with AARP that will launch in Q1 of 2020.”
Portada Council System members have voted for the topics to be discussed at the three main speaking slots at Portada Los Angeles on April 2, 2020. The topics revolve around data collection with a cultural approach, influencer marketing, and consumer insights.
For over a decade, Portada has been there to offer a space in which experts can discuss the most relevant issues of marketing and advertising. Now, for 2020 we are taking it one step further by inviting brand and agency decision-makers (members of the Portada Council System) to get directly involved in the selection of the content of each of our events.
Consequently, the brand marketers in Portada’s Council System have voted for the topics to be discussed at the three main speaking slots during Portada Los Angeles on April 2, 2020.
“The brand marketers in our Council System play a crucial part in determining the topics of our events. By having these leading practitioners suggest and vote for the themes of the three main speaking slots, we make sure that brand marketing, tech and media executives targeting the diverse U.S. consumer get the most relevant content available in the marketplace,” says Marcos Baer, president of Portada.
Below are the three winning topics as well as comments from Portada Council System members as to why these reflect their interests.
Portada Los Angeles Keynote: Why data scientists need to be cultural experts (A media planner/buyer perspective)
In 2017, the Economist declared data, and no longer oil was the most valuable resource in the world. And even though brands and agencies now have access to tremendous amounts of data, the tricky part is how to make sense of it. For the Portada Los Angeles Keynote talk, Council System members selected the topic of data collection and the extra layer of adding a cultural filter to how that data is processed. Below are the members’ thoughts and questions around the issue.
I’d like to hear how data scientists are cutting data to understand audiences and behaviors at the multicultural level. It would be interesting to see how the data changes once you’ve looked at it from a cultural perspective.
Would be interested to hear from data scientists about how they layer in cultural understanding. Is it all done in algorithms or are they also making “manual” choices based on cultural nuances?
Sometimes people have the view that with enough data, you can target anyone effectively, thereby removing the need to appeal to the audience’s culture. How can we continue to recognize the importance of culture in this technology-driven age?
How to combat bias in data, examples of how data can be interpreted in different ways by people who do not understand the culture?
I notice there is a shift where many ethnic or multicultural agencies are moving beyond population subgroups (Hispanic/Latino, Asian, etc) and shifting towards culture. So in a way, culture and being culturally relevant is the latest evolution of multicultural marketing. It would be good to hear how the rigors of data relate to culture or vice versa.
Consumer Insight Highlight Speaking Slot: What creates brand lift?
How to measure brand lift. How to understand the impact of media spend.
This seems fairly obvious, but with so many marketers choosing to focus on attribution and lower-funnel metrics, it’s important to remind ourselves that without a strong brand identity and awareness, the purchase funnel will dry up.
I am especially interested in understanding how can I lift or transform a brand’s reputation and perception online, social listening studies, setting benchmarks, improving engagement based on brand interactions that aren’t necessarily transnational, cause-related marketing and its true impact on brand love and conversion.
How do you break through the clutter in an age where people are used to influencers pitching product after product?
Which industries, type of messages or cultural moments are influencer moments and which are not?
Understanding how companies evaluate influencer marketing’s impact on their objectives. And also how they think about leveraging influencers.
As media markets are diversified to include more faces and individuals that come and represent specific communities it’d be pertinent to hear more about the process of influencer identification, vetting, and relevancy in the different markets we are trying to influence.
It would be good to understand how this has evolved and what the next platform capabilities are.
Portada Los Angeles 2020 will be a unique experience. First, the three different Council System bespoke workshops will take place in the morning. Also, brand marketers and best-of-breed marketing services suppliers will have 1:1 meetings and attend VIP networking functions. In addition, attendees will learn at four exclusive and highly-curated speaking slots on the themes outlined above, which were voted by the over 100 brand marketers in the Portada Council System.
More information about the structure of speaking slots at Portada events:
Keynote: 45-minute session. An overarching topic of paramount importance to the brand marketing community to be addressed by subject matter experts who provide innovative solutions.
Consumer Insight Highlight: 25-minute session. Consumer Engagement and sales conversion are the ultimate objectives for brand marketers. This session will provide key and fresh consumer insights that foster the understanding of the U.S consumer and provide actionable tips for marketers.
MarTech Solution Spotlight: 25-minute session. Technology plays a crucial role both for consumers as well as an enabler for marketers. During this session a major brand marketing thought leader will reveal the latest trends on the use of technology by consumers and brands.
Partner Thought Leadership Presentation. An opportunity for a Portada partner to gain major exposure in front of a listening audience of major brand marketing executives.
For more information about Portada Los Angeles on April 2, 2020 click here
For brands who want to connect with Caribbean Hispanics in the U.S., baseball could represent the right platform to start a long-term consumer-brand relationship. Nearly one-third of all major league players are Latinos, including those born in Latin America and within the 50 U.S. states. The Dominican Republic has the highest number of players in the big leagues.
Once upon a time, on May 9, 1871, Estevan Enrique “Steve” Bellán debuted as the first Latin American born individual to play professional baseball in the U.S.A. He played as a third baseman for the Troy Haymakers in New York. About 200 years later, nearly one-third of all major league players are first or second-generation Latinos.
According to the Major League Baseball (MLB), the Dominican Republic has the highest number of international players in the big leagues, with 102 players during Opening Day in 2019.Second in the ranking is Venezuela, with 68 players, and Cuba comes in third with 19 players. “Baseball receives the most attention in Caribbean countries, even more than soccer,” Augusto Romano, CEO at Digo Hispanic Media, tells Portada.
Catering for A Segment’s Needs
First, Digo noticed Caribbean Hispanics are a niche market with particular needs, separate from the general Hispanic market. Then, the U.S Hispanic audience network figured how to reach about five million Puerto Ricans, Cubans, and Dominicans who are concentrated on the east coast of the U.S. However, Romano has a new strategy in mind: “Get to them through baseball!”
Get to them through baseball!
Born from the union of the two largest media groups in the Caribbean, GFR Media from Puerto Rico and Grupo Corripio from the Dominican Republic, Digo’s audience has shown a special interest in how Caribbean-born baseball players are developing within MLB. “We write stories about the playersin a culturally relevant manner, starting with their origins, something the mainstream media doesn’t do. This allows U.S. Hispanic fans to follow players from their country of origin on our premium sites,” says Romano. Nevertheless, it seems brands are still missing out on the opportunity.
According to Josh Rawitch, Sr. Vice President, Content & Communications for the Arizona Diamondbacks, since last year, the MLB has been working on promoting individual players.This is an important shift in the league’s marketing strategy where traditionally entire teams were promoted.
“The league is smart enough to let these players be who they are,” Rawitch tells Portada. “Therefore we are letting their personalities show a little bit more.”
Most of Arizona Diamondbacks’ fans come from Mexico and Venezuela. However, the team also recognizes the importance of its Caribbean followers. The star, pitcher Yoan Lopez, for example, is from Cuba.
Concerning Puerto Rican players, Esteban Pagán, sports editor at GFR Media, believes that even though Puerto Rico has produced four island born hall of famers, and they have always been very active and noticeable with players in the league, right now there’s a new group of very talented players that are starting to arise. It is a matter of time for us to see more profesional global Puerto Rican players, he explains. “Brands are missing out on opportunities to connect with the U.S.H. audience because these big players are just starting to emerge and are recently being noticed and followed by MLB fans.”
“We are in the exact time in which we can see the potential [of the Caribbean players] in the long run,” Jorge Cabezas, GFR Media, General Manager, adds.
Connecting With Caribbean Hispanics
“The way we try to connect with the Caribbean fan base is first through our social media accounts. They’re being followed by Latinos all over the world, thus we specifically try to highlight our Hispanic players. We have some Cuban players and tons of Venezuelans and Dominicans,” adds Rawitch. “We know when we are sending out messages on social media, we are interacting heavily with fans from the Dominican Republic and Puerto Rico.”
The second way the D-Backs are connecting with Caribbean Hispanics is through their local baseball academy in the Dominican Republic. In fact, all 30 major league clubs have baseball academies there, according to Anthony Salazar, chair of the Latino baseball committee.
The way we try to connect with the Caribbean fan base is first through our social media accounts.
“We go down there for graduation every January or February. Moreover, we do a second trip when we do a clinic in the Dominican Republic or we’ll do public appearances,” explains Rawitch.
Their first docuseries named “Las Academias,” explores the beautiful island of the Dominican Republic along with the small towns scouting for talented hopefuls. These athletes each and every day train at one of the 30 major league youth training camps across the island.
“Brands will have access to sponsor these content series via our sales team and we will insert them in the story to ensure their brand and products are showcased in a relevant and engaging manner,” said Aisha Burgos, SVP of Sales & Marketing for Digo Hispanic Media.
It seems that the league and its teams are already reaching out to their Hispanic and Caribbean Hispanic fans. So, what’s happening with brands?
Most brands recognize that outside of soccer, baseball is probably the second most followed sport in Latin America. However, in some countries like Cuba or DR, it is even bigger, believes Rawitch. “Simply, look at the sheer volume of people who are following baseball from the Caribbean. If you’re a company looking to communicate with them, it makes sense to find your way there through a major league team, for instance.”
According to Google Trends, in the past 12 months the words baseball, beisbol and pelota were the most searched the most in countries like the Dominican Republic, Puerto Rico, Cuba, Panamá & Venezuela. “Baseball runs in our blood. This represents a huge opportunity that brands need to take advantage of,” said Romano.
ANA announced the winners of the 2019 Multicultural Excellence Awards in 12 categories during the ANA’s 2019 Multicultural Marketing & Diversity Conference. Nike won the Best in Show award for the “Dream Crazy” spot.
For 19 years, the ANA Multicultural Excellence Awards have recognized client-side marketers and their agency or media partners who produce the best multicultural advertising campaigns. This year, the competition, open to both ANA members and nonmembers, received 224 entries of campaigns produced between June 2018 and June 2019.
Sponsored by the ANA Multicultural Marketing & Diversity Committee, the awards were created to recognize the outstanding work being done in the multicultural marketing industry.
Nike and ad agency Wieden+Kennedy received top honors, winning the Best in Show award for its spot called “Dream Crazy.” The two-minute video features former San Francisco 49ers quarterback Colin Kaepernick and several other professional athletes such as LeBron James and Serena Williams. It encourages viewers to believe in and pursue their dreams no matter how unreachable they might seem. Last month it received an Emmy award for the year’s most outstanding commercial.
The award recipients were announced at the ANA Multicultural Excellence Awards Dinner, hosted by Gilbert Dávila, chair of the ANA Multicultural Marketing & Diversity Committee, and Claudine Waite, ANA Director, Content Marketing Committees & Conferences.
The 2019 winners in each category are the following
Lopez Negrete Communications
Procter & Gamble
Grey Canada and MMK
Procter & Gamble/BMW
Procter & Gamble
Saturday Morning Group
People with Disabilities
Area 23, An FCB Health Network Company
Anheuser Busch, brand Estrella Jalisco
Black & Abroad
BBDO New York, BBDO New York, O Positive, Dini Von Mueffling Communications
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.
Conviva’s recent report on the state of streaming shows overall streaming has increased rapidly, with viewing hours up 53% year over year. Roku remained the most popular way to stream in Q3, up 73% year over year to capture 25% of all viewing hours. NFL streaming tallied a 77% increase in plays led by mobile devices, up 109%. For top streaming providers’ social accounts Facebook led in followers, Instagram led in engagements, and YouTube led in social video views.
U.S. President Donald Trump’s approval ratings are underwater among Hispanics in Florida according to a statewide survey of 600 voters conducted by the Business and Economics Polling Initiative (FAU BEPI ) in Florida Atlantic University’s College of Business. The poll shows Hispanics overall have an unfavorable opinion of Trump, with 48% disapproving of his job performance, while 31% approve, and 22% are undecided. Trump’s approval is underwater with Puerto Ricans at 64% disapproval and 19% approval. However, those from Mexico are split, with 43% disapproval and 38% approval. Cubans provided a bright spot for Trump, with 47% approval and 28% disapproval.
According to the new study Pet Population and Ownership Trends in the U.S: Dogs, Cats, and Other Pets, 3rd Edition by Packaged Facts, more than half (54%) of American households have a pet, and households with pets will total 67 million in 2019. The two most popular pets, dogs and cats, live in 39% and 24% of U.S. households, respectively. One in eight households has other pets—including fish, birds, reptiles, or small animals such as rabbits, hamsters or gerbils. A key trend shaping today’s pet owner population is its increasing diversity. Compared to a decade ago, pet owners are now more likely to be a member of a multicultural population segment (28% in 2018 vs. 22% in 2008).
A new study by Twilio has found consumers prefer email and text when talking to brands, despite a wide availability of channels. The survey, which includes responses from 2,500 global consumers, also concluded that consumers are more likely to reward businesses that adhere to their preferred channels. The study found include that channel, frequency and timing will influence consumer behavior and sentiment, as 94% of consumers reported they are annoyed by the current communications they receive from businesses, citing high communication frequency (61%), irrelevant content (56%), not remembering opting in (41%) and being contacted on the wrong communication channel (33%) as the reasons.
A new U.S. nationwide survey by Genesys of 800 consumers over the age of 18 has concluded that 68% have positive interactions with customer service bots. While 21% say they can “almost always” resolve their issue through a bot without escalation to a customer service representative, 47% say they can do this “more than half of the time.”Moreover, 73% of respondents are open to dealing with a chatbot, even though half (51%) say this is only when the issue is simple or transactional, such as checking account balances, resetting passwords or confirming order status.
According to research firm Toluna, 58% of U.S. consumers of all age groups identify themselves as being ‘extremely’ or ‘very’ environmentally conscious, with almost half (45%) of those aged 18 to 34 stating that it is extremely important to buy goods that are produced in an environmentally friendly way. More than a third (37%) of the 1,000 U.S. consumers who took part in the survey say they seek out and are willing to pay up to 5% more for environmentally friendly products.
Portada Insights Reports are tools that help navigate different disciplines of marketing for both brand marketers and marketing service suppliers. Portada’s new report, ‘How Brands Engage U.S. Hispanics: New Segmentation Approaches’, sheds light on how brand marketers can better reach this multicultural segment.
Even though Hispanics account for about 17% of the U.S. population, and in spite of their demonstrated buying power and high indexes of technological adoption, most companies still struggle to come up with appropriate multicultural marketing strategies. The need to implement new, more efficient segmentation approaches to engage and retain the U.S. Hispanic consumer is becoming more pressing.
Consequently, Portada has compiled a series of insights that shed light on how brand marketers can face the new multicultural reality. The new Portada Insights report, titled How Brands Engage U.S. Hispanics: New Segmentation Approaches, provides a fresh perspective on the media advertising expenditures reaching Latinos in the U.S. In addition, it shares the results of research conducted throughout the year at closed doors with the Portada Council System members.
“As the United States get more diverse and more complex from a consumer behavior perspective it has become an imperative for brand marketers to develop new segmentation approaches to target multicultural consumers; particularly the U.S. Hispanic consumer. This Portada Insights report is an example of how our knowledge-sharing and networking platform, the Portada Council System, works on innovative approaches for brands to engage consumers in the multicultural United States,” says Marcos Baer, president of Portada.
The Portada Insights report How Brands Engage U.S. Hispanics: New Segmentation Approaches includes:
Data reflecting the new Hispanic reality, including Hispanic-targeted English-language and Spanish-language media expenditures and forecasts based on research by Portada.
Challenges and opportunities in deriving new segmentation approaches as seen by brand marketers
Practical examples of why the changing identity features of Hispanics can be a major challenge for marketers
We sat down with Alex Gallegos, Senior Director, Sales & Marketing at L.A. Care, to discuss healthcare marketing initiatives for Hispanic Americans in Los Angeles. In this exclusive interview, Alex talks about L.A. Care’s marketing tactics and media mix.
In recent weeks, we’ve been following L.A. Care’s moves to improve healthcare in Los Angeles. In early September, L.A. Care Health Plan and Blue Shield of California Promise Health Planannounced a five-year commitment to expand Community Resource Centers across Los Angeles County. In total, they will jointly operate 14 resource centers in L.A. County. Each center will serve approximately 72,000 people per year when services and staff are fully built out, serving more than one million Angelenos annually.
By the end of the same month, L.A. Care announcedit appointed Las Vegas-based Ntooitive as its digital marketing AOR. Together, Ntooitive and L.A. Care’s marketing team now coordinate and manage traditional media buying, digital media services, and digital creative production with a focus on delivering campaigns aimed at raising brand awareness and product growth.
Around that time, Ntooitive announced a new data-driven digital marketing service, Ntooitive Healthcare, that helps companies in the healthcare industry to reach target audiences. Both companies are working together to replicate the success of last year’s enrollment period. They trust that their efforts will allow more local communities access to affordable healthcare insurance. We talked to Alex Gallegos, Senior Director, Sales & Marketing at L.A. Care, about the marketing initiatives and media mix in his mind for this enrollment season.
Healthcare Marketing Tactics
Portada: What would you describe as advanced multicultural healthcare marketing tactics?
Alex Gallegos: There is certainly a broad definition that can be associated with a term like “advanced multicultural marketing tactics”. We approach our audiences in a way that I feel is very practical. The first step to that is listening and understanding. Our members all have diverse backgrounds, needs, and wants, and it’s our job to act in a way that is relevant to them. In some cases, that means we have different marketing channels for different audiences, and in some cases, that means we say things differently. In other cases, that means that we partner with community-based organizations. I feel that being advanced means being ready to do things differently because it’s the right way to do it for that person/audience.
Portada: How many Californians qualify for Covered Open Enrollment? What amount of the above are Hispanic?
A.G.: In theory, the pool of people who are eligible for Covered CA is very high. The point of distinction here is how many people really do need access to the Covered CA exchange. A large majority of people receive coverage through their employer and even Medicare, this means the difference of people left are those that should consider Covered California as an option. California has done well in the last six years to get people to enroll into Covered CA, and now the opportunity really is focused on the people who may want to switch through shopping health plans based on their needs. The demographics of L.A. County eligibles is very reflective of the county demographics as a whole, I would say roughly half the market is Hispanic or identifies as Hispanic.
We are all connected to a device and use the internet for everything, so we need to be more omnipresent in our advertising.
Top VS. Bottom of the Funnel
Portada: What marketing activities of L.A. Care would you categorize as top of the funnel?
A.G.: We utilize a lot of outdoor marketing to create product visibility – billboards, bus advertising, digital billboards, transit shelters. In addition, we are investing more and more in digital, it just makes sense. We are all connected to a device and use the internet for everything, so we need to be more omnipresent in our advertising. You can expect to see our digital advertising on Pandora, YouTube, Facebook, Instagram, Spotify and many leading websites.
Portada: What about the bottom of the funnel?
A.G.: We leverage our television and radio partnerships to really drive calls to our enrollment call center. We also leverage our medical group and broker partnerships to help create sales opportunities. And lastly digital. Digital, while being at the top of the funnel, also creates plenty of conversion opportunities with lead generation and the use of our shopping website for L.A. Care Covered.
We know that a bad web experience can derail an enrollment opportunity, so we take our web and digital experience very seriously.
Portada: To what extent is the success of your campaigns based on your users’ online experience?
A.G.: We look very closely at web traffic, search traffic, and the performance of our digital investments. It helps us understand what people are looking for, what people use on our websites and how we need to enhance our digital touchpoints. We know that a bad web experience can derail an enrollment opportunity, so we take our web and digital experience very seriously. Websites have to be easy to use and very functional.
L.A. Care’s Media Mix
Portada: Please describe the media mix of LA Care’s current campaign.
A.G.: I would break it down as follows:
30% – Outdoor, out of home
10% – Print and events
30% – Radio and television
30% – Digital
Portada: How has the media mix changed compared to 5 years ago and why?
A.B.: We have invested more in our digital offerings and Los Angeles being a commuter market, we have also grown our outdoor partnerships. The feedback and the research we undertake tells us that product and brand awareness has grown. Also, our membership has grown significantly. We will continue to monitor trends and make adjustments as necessary. A good marketer is always evolving.
This year, Pandora is presenting the ANA Multicultural Marketing & Diversity Conference, which will take place on November 6-8 in San Diego, California.
On behalf of ANA’s Alliance for Inclusive and Multicultural Marketing (AIMM), PQ Media has just released a study titled U.S. Multicultural Media Forecast. According to the results of the study, 95% of the media revenues are concentrated in non-Multicultural media when only 63% of the population base is non-Multicultural, which means there is a huge opportunity for growth.
For twenty-one years, ANA has organized a yearly conference focused on multicultural marketing and diversity. On November 6-8, marketers from Denny’s, Facebook, PepsiCo, McDonald’s, Ulta Beauty, Ford, Facebook, Chico’s BBDO New York, and Subway will share their best practices at the 2019 ANA Multicultural Marketing & Diversity Conference, presented by Pandora. They will share their successful strategies of marketing to multicultural segments, they’ll discuss how they measure ROI of multicultural marketing plans and how they come up with inclusion strategies that create authentic and meaningful impact.
Marc Pritchard, Chief Brand Officer at The Procter & Gamble Company, will facilitate a discussion with other industry disruptors who talk about actions that can help you become a force for equality and inclusion throughout the entire creative world. Just a couple of months ago, in June, Marc Pritchard became the trending topic of Cannes Lion when he said “If you’re not doing multicultural marketing, you’re not doing marketing.” At the ANA Masters of Marketing Conference on October 4, Pritchard shared P&G’s plans to disrupt the industry with first-party data.
We talked to Terry Sell, national truck manager at Toyota Motor North America, about Toyota’s recent soccer campaign featuring Jorge Campos. Toyota is one of the top 10 spenders in broadcast TV advertising, with $157 million spent in 2017. Through the campaign “Choose the Toughest Field”, the car company has managed to reach out to three audiences: Hispanics, soccer fans, and car lovers. Here’s what Sell had to say.
Portada: Tell us what the “Choose the Toughest Field” soccer campaign is about.
Terry Sell: “The ‘Choose the Toughest Field’ soccer campaign is the 2019 soccer platform for Toyota. It builds powerful connections between the sport of soccer, players, fans, and trucks. The campaign was inspired by some of the more traditional playing conditions in Latin America. We considered that soccer is often played in dirt fields rather than nicely groomed grass. Those tough fields are where players exhibit their true potential, just like our trucks. The campaign’s commercials capture the toughness of the Tacoma and Tundra trucks as they take on tough terrains in a rough, non-traditional environment, thus their connection to the sport.”
TS: “Toyota has long recognized Hispanic guests as a linchpin of its success. Hispanic vehicle registrations account for over 20% of overall registrations, making the Hispanic market a significant portion of Toyota’s overall success. In fact, Toyota has been the number one automotive brand among Hispanics for14 consecutive years.”
Hispanic vehicle registrations account for over 20% of overall registrations.
P: On which platforms will it appear?
TS: “The campaign broadcast elements were timed for the 2019 Concacaf Gold Cup. But it will continue through March 2020 on other soccer media properties that we sponsor such as the UEFA Champions League, the U.S., and Mexican National Teams and Liga MX.”
P: Why did you choose retired Mexican goalkeeper Jorge Campos as your spokesperson?
TS: “We are delighted to partner with Mr. Campos. He is the embodiment of someone who has taken on the toughest terrains throughout his life and career as a legendary soccer player. His personal story, very much in sync with the attributes of the vehicles, resonates incredibly well with fans.”
Mr. Campos is the embodiment of someone who has taken on the toughest terrains throughout his life and career as a legendary soccer player.
P: How will you measure the success of the campaign?
TS: “Our goal is to drive consideration for Toyota trucks by increasing model association within their competitive set, and elevate ad awareness, vibrancy, opinion, consideration, and imagery. On the ground, through our interactive footprint at events, we are looking at engagement levels that funnel into sales leads.”
P: What other activities will you do around the campaign, off-screen?
TS: “The campaign has a diverse and robust digital and social component, including videos and rich mobile display ads and banners. For our social channels, we teamed up with Jorge Campos to develop a series of soccer technique videos. These showcase his great foot skills to engage guests in the sport.
Off-screen, we’re bringing the campaign to life through an interactive soccer footprint. It was present throughout the Gold Cup games and will be present during our sponsorship of Tour Aguila with our Club America partners in July. Also, it will appear at the Toyota Copita Alianza youth tournaments that continue through September.”
Off-screen, we’re bringing the campaign to life through an interactive soccer footprint.
P: Does this campaign appeal to any other market apart from Hispanics?
TS: “Soccer is part of the Hispanic culture. It is part of their life and brings generations together to enjoy the game. In fact, we know that Hispanics over-index when it comes to viewership in the U.S. With that in mind, our campaign fully focuses on this important target market for our brand.”
P: What challenges do you face with this campaign and how will you overcome them?
TS: “As soccer continues to gain popularity in the U.S., we have seen more brands getting into this space. Toyota has supported the sport and engaged with its fans for more than a decade so we’re appreciative of the brand loyalty we’ve received from fans and owners over the years. We’ll continue to engage with fans by developing creative campaigns that leverage partners, properties and celebrity talent that truly speak to the fans and to the essence of the game.”
As soccer continues to gain popularity in the U.S., we have seen more brands getting into this space.
P: What else are you working on?
TS: “As I mentioned, our campaign ambassador, Jorge Campos, engaged with us on a series of videos showcasing soccer techniques. In August, Jorge Campos hosted a soccer clinic at one of the Toyota Copita Alianza youth tournaments. We’ll also recognize a stellar student-athlete with a scholarship for their outstanding accomplishments in the classroom and on the field as part of our partnership with Alianza de Futbol.”
What: Multicultural Audience Measurement experts offer Portada insights around the problem of audience under-representation. Why it matters: Measurement firms under-represent multicultural audiences by as much as 25%, which causes a negative impact in media investment and produces overall flawed results.
Audience measurement has never been more complicated, as cultural nuances and consumer behavior shift and change, and the proliferation of new technologies demands multi-channel strategies. The task is even more difficult when it comes to measuring multicultural audiences. Experts tell Portada major measurement firms under-represent these audiences by as much as 25%. If this is the case, the media budget for targeting multicultural audiences should be substantially higher than it is right now. Just for Hispanic marketing, Portada estimates overall expenditures of US 6.07 billion in 2019. However, if firms under-represent audiences by up o 25%, media expenses could increase by up to US 1.5 billion. Admittedly, this is a back-of-the-envelope calculation. Nevertheless, it highlights the importance of accurate multicultural audience measurement in satisfying clients’ needs, and its potential for the multicultural media industry.
The lack of a common audience measurement currency in multicultural audience measurement impacts media investment levels negatively.
For many years now, companies like Nielsen and Kantar have offered advanced TV audience measurement. However, competition has increased. New players offer digital solutions that claim to be more comprehensive. This forces the bigger players to think of new ways to keep up with how audiences move and evolve. Inconsistencies between reported data reveal the lack of a common audience measurement currency in multicultural audience measurement. Hence, there’s a negative impact in media investment.
Furthermore, marketers’ biases lead to incorrect data interpretation. In turn, this leads to bad consumer experiences and negative overall results. How can we expect to move the needle if we can’t even tell where it is? In order to find out more about how to face these challenges, we talked to experts who understand how audience measurement impacts media planning and buying: Dana Bonkowski, SVP, Multicultural Lead at Starcom; Mebrulin Francisco, Managing Partner, Sr Director, MPlatform, GroupM; Nelson Pinero, Senior Digital Director, Senior Partner at GroupM; and David Queamante, SVP, Client Business Partner at UM Worldwide.
Audience Under and Over-Representation
All interviewees agree that multicultural audiences are still under-represented by major measurement firms. One of the reasons for this, explains Mebrulin Francisco, is the lack of insight into how audiences behave. Francisco mentions as an example all those times when data providers collected data on Hispanics. But once her team digged deeper, they realized the majority of Hispanics represented were English-dominant. This is a big issue because “it means the data is not representative of all the Hispanics in the U.S., creating a blind spot,” she says.
The same has happened in the other extreme, where you can have over-representation of Spanish-dominant consumers, creating a blind spot for Bilingual or English-dominant Hispanics. “This is especially the case within sets that depend on cookie level data,” Francisco explained. “If this is true for the Hispanic segment, which is the largest among multicultural consumers, think about the under-representation of African-American or Asian segments. Many data providers do not even report on these multicultural sub-segments.”
Language preference won’t singlehandedly define and capture an audience. So, in many cases, a large portion of a given audience is not captured.
Therefore, the first thing is having a representative sample of the audience. It might seem obvious, but in the words of David Queamante, “Unless measuring companies take the time to ensure they are gathering information from a representative sample of users, they will under-count multicultural audiences by default”. This represents a challenge. As Dana Bonkowski mentions, “engagement with culture-driven content is often the best signal to identify whether or not a person is ‘multicultural’. But language preference won’t singlehandedly define and capture an audience. So, in many cases, a large portion of a given audience is not captured.”
Multicultural Media Consumption is Elusive
Marketers have long assumed that a universal approach can reach audiences. However, “in doing so they fail to identify key nuances in motivations, attitudes, and behavior across consumer segments leading to an incomplete marketplace assessment,” explained Mebrulin Francisco. In the case of multicultural consumers, it’s even more complicated to hit the mark: Since datasets are limited, firms “do not flag multicultural consumers accurately and do not provide a holistic view of the brand’s performance, blurring meaningful insights,” said Francisco.
Multicultural media consumption is concentrated on certain outlets that [aren’t always] included on measurement companies’ surveys and reports. Therefore, multicultural media consumption may seem to ‘disappear’.
Moreover, multicultural audience measurement is rarely accurate. Why is that? As David Queamante explains, “Multicultural media consumption is concentrated on certain outlets that may not always be large or prominent enough to be included on the measurement companies’ surveys and reports. Therefore, multicultural media consumption may seem to ‘disappear.'” Besides, as Queamante mentions, not all measurement companies offer surveys in Spanish. This oversight considerably reduces the representation of Spanish-dominant Hispanic audiences, for example.
Privacy Issues Complicate Measuring Even More
This new era has brought significant advantages. For example, we can measure whatever happens as long as it happens online. However, the fact that it’s now easier to use and collect data as also brought up important privacy issues. Nelson Pinero predicts: “With audiences paying a little bit more attention to how and which personal data is being shared, it will become a bit more difficult to reach a diverse audience.”
However, this is already a reality. Media buyers and agencies are working together around the problem of accurate audience measurement. But “what follows now is all part of the balancing act between data and the years of experience that allow the media buyers to react dynamically to market conditions and to, ideally, optimize plans,” adds Pineiro. “Audiences will take more control of how they are reached, and agencies trying to find the right audience will need to cross-reference their deterministic/probabilistic data to enhance plan performance.”
What Happens Now?
The obvious prediction is that data science will become even more important in the digital world. “Measurement is the new black,” declares Mebrulin Francisco. “As we push towards a data-driven age in marketing, science, quantification, and data are going to continue to be a cornerstone of decision making. If I cannot measure the impact of my investment, understand my audience impression on a site, or reach potential, it will be very hard to make a case for using a partner.”
Start building out multicultural and cultural expertise in house to accurately represent these audiences in your data streams.
Moreover, the immediate future is inescapably multicultural. Marketers need to use art to harness the power of all this data in order to represent audiences accurately. Experts like Mebrulin Francisco believe a good way to start is with first-party data. “If you are in the audience measurement space my recommendation is to start building out multicultural and cultural expertise in house to accurately represent these audiences in your data streams.”
When asked for her views on the future, Dana Bonkowski shared the hope that “marketers invest to better understand the business-building power of multicultural audiences. More than 30% of all Americans fall in one or more ‘multicultural’ audience buckets. The question should be “How can you afford not to invest against better multicultural audience measurement?”
We caught up with Kia Motors America’s Eugene Santos, Senior Manager, Multicultural Marketing, about Kia’s new multicultural campaign, Driving Forces. Anything related to the Hispanic market comes toSantos’ desk first, so he knows a thing or two about how to market to Hispanic consumers. He told Portada New York 19’s audience all about Kia’s first time using influencer marketing to target Hispanics.
Eugene Santos, Senior Manager of Multicultural Marketing at Kia, has spent years practicing how to market to Hispanic consumers. The last time we spoke to him,he gave us a preview of what he had in store for the brand’s next Hispanic-oriented campaign. All we knew at the moment was the goal, to reach the Hispanic segment through an emotional connection to the brand’s new slogan. Fast forward to a couple of months later, Kia has launched Driving Forces, a campaign that involves real Latino stories.
“We launched a message during the super bowl: Give it everything,” Santos said to an audience of fellow brand marketers at Portada New York. “In the past, Kia has been successful with Superbowl commercials. But now that the message is out there, what do we do with it? What does it mean? Especially for Latinos.”
The problem facing automakers these days, according to Santos, is that vehicles are smarter and last longer, so consumers are holding to their cars for more time. “The need for an automobile has decreased,” Santos pointed out. But the campaign has already proved to be fruitful, as the 200-percent increase in traffic to the Kia Soul landing page shows. Santos shared this and other pieces of information in exclusive at Portada New York… metrics not even Kia’s management had seen!
Still Talking Up the Hispanic Market
For a Korean brand that is relatively new to the U.S., the new Driving Forces campaign is a huge deal. “As all multicultural marketing managers know, budget is an issue,” said Santos. “Since Hispanics account for 18% of the population, General Market assumes we should have 18% of the marketing budget, but it doesn’t work that way.”
In fact, a real problem that stood out throughout the Portada New York conferences was the need to convince management of the relevance of Hispanic consumers. “You’d think that in 2020 we wouldn’t need to fight to convince organizations about the Hispanic business opportunity,” commented Santos. “But we keep fighting the same fight. Therefore, make sure you can show metrics that the general market understands.”
The good news is: insightful, culturally nuanced campaigns are an important step to increasing companies’ awareness…, and getting a few more ad dollars. “Telling a story allows us to continue to connect with our audience and keeps the brand on top of mind. This might look like a simple project, but it’s making our company reconsider how they think about multicultural,” shared Santos.
An Effective Campaign Will Take You Far
As Eugene Santos explained, a successful campaign can yield results that are very important for the long run: not only can it get you more budget with management, but it can also ease you into the next step of your strategy.
That’s why Santos likes storytelling; it can elevate your brand by telling relatable stories to consumers and then follow up on those stories. But many times complications arise from the start in multicultural marketing. Whether it’s the lack of multicultural representation in management, inaccurate audience measurement or a lack of creative assets, it’s still difficult to know how to market to Hispanic consumers, starting from the (still relevant) question of what language to use.
Problem: How to Market to Hispanic Consumers
“When people think ‘Hispanic’, they automatically assume they have to use Spanish,” told Santos. “It doesn’t have to be that way. So for the first time, we’re using English-language creative to reach Hispanics. Bilingual and bicultural creatives go a long way.”
But the problem persisted: how could they elevate the Kia brand in a meaningful way? There were many factors at play, like limited assets, recent leadership changes and a low budget. “For a long time people have assumed that Kia is a cheap Korean Brand, but for the last 5-6 years, Kia has been recognized with top quality distinctions with brands like Mercedes and Porsche,” pointed out Santos. “Kia has various brand messages, but the objective was to dilute it into one message that created top brand consideration.”
Answer: Brand Ambassadors Who Share the Consumers’ Stories
Influencers are a risk, and yet most marketers have experience with them. They all learn that the only effective influencer marketing is based on brand ambassadors that share a true affinity with the brand’s values. For that reason, Santos chose two unique influencers that could tell the Latino story, because it was theirs.
“How do we tell the underdog story, which is really the Kia story, and how do we tell the Latino story to them?” asked Santos rhetorically. “I want to talk about the professional who is trying to do something different and relate it to my key customer.”
Consequently, Kia worked with Andrea Londo, a self-proclaimed border child who commuted from Tijuana to San Diego every day to go to school. Now, she is living her dream of being an actress. “You probably don’t know her, but in 2-3 years you will,” assured Santos. On top of everything, Londo drives a Kia Optima, which made for a perfectly organic fit.
Clara Pablo, the other influencer featured in the campaign, is the manager of Miami-based Latin Pop group CNCO and of Colombian singer Maluma. Music is one of Kia’s verticals, which allowed for an organic fit with Pablo. In addition, she’s a breast cancer survivor and awareness advocate, which adds “a humanistic element that allows us to send out a message not only about cars but beyond. Young Latinos want to connect with brands that stand for the same things they do.”
Once You Have the Right Message, Put it In the Right Creative (and Get the Right Partner to Do It)
One of the first things to do if you wish to launch a successful campaign is choosing the right partner. Because of the various problems multicultural marketers have to face, an agency that can really carry your message is as important as the message itself. For the Driving Forces campaign, Kia partnered up with Verizon Media. “We knew they could programmatically expose our message to a wider audience that is bicultural. Also, their creative studio, RYOT, could help us with assets that allowed us to show our message in relation to the creative,” explained Santos.
Together, they came up with docu-style creatives and an array of branded formats to tell the story of Latinos and Latinas. Through the two “driving forces” the brand chose as ambassadors, they focused on upbringing, biculturalism, accomplishments and their will to tackle a challenge. “The main goal was for them to connect with us,” stressed Santos. “We wanted to hit them at different points of their journey to let them know that we’re here for them and we understand them.”
Results (Spoiler: Cultural Marketing Works)
The results so far have been positive. The completion rates above the benchmark of both videos show that consumers are interested. Also, CTRs are the same in Spanish and English, so language doesn’t always matter as long as viewers really connect with the message. “If the emotional component is there, they’ll stick around and come back,” said Santos. Reach and engagement have also been good, which has given Santos the confidence to ask for more budget.
Ultimately, Santos concluded that it’s all about three key rules. First, define your strategy: be clear on what the content should speak to and ensure alignment to overall brand strategy. Second, listen to your gut. Pick a partner that can execute and deliver significant reach for your targeted audience. Finally, don’t forget to ask yourself this question: what’s my next move?