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The pro-Trump mob that stormed the U.S. Capitol on January 6 was mostly incited by social media driven fake news. It again became blatantly evident that a repluralization of media and a commitment to facts as a public good are crucial to the stability of the U.S. democratic system. Enter Corporate Social Responsibility: Brands and media buyers at agencies should be under pressure to direct advertising to media properties practicing professional journalism. Media dollars should also be directed to  underserved communities. Learn how UM , Cadillac and Realogy  balance the reach vs. responsibility/purpose driven marketing trade off in media buys.

It is not surprising that the  D.C. chaos has actually made many brands to take the decision of pausing social advertising. According to a 2019 study published in Science by MIT Sloan professor Sinan Aral and Deb Roy and Soroush Vosoughi of the MIT Media Lab. They found falsehoods are 70% more likely to be retweeted on Twitter than the truth, and reach their first 1,500 people six times faster. This effect is more pronounced with political news than other categories.  Independent, truth-seeking professional journalists apply reporting methodologies and a code of ethics that makes them accountable and transparent. Corporate social responsibility should make sure that brands advertise in trusted media properties.

However, brand marketers and the media agencies that cater to them not only need brand safety but also reach at a low cost for media buys to be efficient and ultimately obtain leads and sales.

News Sites: How it Works in Practice…

Corporate Social Responsibility
David Queamante, SVP, Client Business Partner, UM Worldwide

David Queamante,  SVP, Client Business Partner, UM Worldwide tells Portada that when he worked at “an Automotive brand, recently, we saw that News Programming has a high index among people who earn the income we wanted to see, and who buy the vehicle segments we were promoting. However, on the Finance brand that I focus on currently, we see that News Programming indexes below 100 for people who will be in-the-market for our type of loan in the next 12 months. I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target.”

I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target. 

Queamante add thats “when we run ads for this company on Social Media, we see that our Cost-Per KPIs is much lower than what we see when we run display ads anywhere else. At the end of the day, I can’t  avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.”

At the end of the day, I can’t  avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.

Journalist Powered Content Ratings…

Separately, IPG Mediabrands, the owner of UM,  has agreed to begin using NewsGuard’s journalist-powered content ratings system for its digital news media buys in the United States, and other key markets. NewsGuard — which was founded by news media pioneer Steven Brill as a solution to the deluge of disinformation being promulgated by questionable publishers and sources — relies on human intelligence as opposed to machine-learning algorithms to detect, organize and rate the veracity of news and information publishers.  Many brands and media agencies recognize that corporate social responsibility includes advertising in trusted media properties.  IPG/ Mediabrands plans plans to use the ratings as part of its programmatic media buys made on news and information websites. “Our partnership with NewsGuard has already helped expand the scope of quality inventory available while ensuring ads remain in brand-safe and brand-suitable environments,” says Mediabrands Global Brand Safety Officer Joshua Lowcock said in a statement announcing the expansion of its agreement.

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Corporate Social Responsibility: How Diversity Media Buys Work  in Practice…

Jason Riveiro, Realogy
Jason Riveiro, Senior Director, Global Growth Markets & Inclusion, Realogy

Another demand consumers have for 2021 is that brands should support media properties that target diverse and underserved audiences. Some members of the brand marketing community agree: “Inclusivity in messaging should be substantial and authentic, but also should include investment in media targeting underserved communities”,  says Jason Riveiro, Senior Director, Global Growth Markets & Inclusion tells Portada.

 

Advertising in 2021
Alexis Kerr,  Cadillac

How does this work in practice? Alexis Kerr, Cadillac’s Head of Multicultural Marketing | Multicultural Strategy, Content and Execution, notes that she has found creative ways to nurture her multicultural media partners to ensure they serve her in various different ways vs just ROI.  “Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships,” she asserts.

MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget.

Custom Solutions that Balance Reach vs. Responsibility

Corporate social responsibility should include that brands advertise in trusted media properties. 
UM’s David  Queamante  notes that his agency
has worked hard to build custom solutions that balance reach with responsibility by making it easier to identify and work with Diversity-owned and Diversity-serving media partners, while still delivering on campaign goals and KPIs. “MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget.  It may not be possible to spend a certain amount of money with diversity-owned partners – many of them lack the scale that non-Diversity-owned partners have. Due to this lower scale, investing an arbitrary amount with these partners may also have negative impact on the campaign reach and exposure to our target audiences.

Corporate Social Responsibility: A Catalogue of Diversity Owned Partners

Queamante adds that the first thing he does is to “start with a database that one of our internal agencies (MAVEN) maintains and updates several times a year. This catalogues Diversity Owned partners across more than just ethnicity. It includes Veteran-owned, Women-owned, Disability-owned and more.
The second step involves to “match the media partners on this list with our custom targets; we call them High Value Audiences (HVA). We identify these audiences using our Acxiom data stack, and we’re able to match these audiences back to media behavior. Based on the HVA media consumption of these Diversity-owned partners we’re able to create investment benchmarks that are specific to each brand and their unique audience.”  “Since these benchmarks factor in HVA media consumption, they have a positive impact on reach and exposure levels for our target.”, Queamante concludes.

 

Knowledge-sharing system for brand marketers

 

 

What form will the advertising mix take once COVID-19 is over? How and where should brands advertise to boost E-Commerce? Should they trust Live Sports to come back in a major way?  How can brand marketers best approach Data Privacy Regulations, First Party Data and Personalization?…. Advertisers have many questions as they go into 2021 and beyond. Check out the answers provided by brand executives in the Portada network and our editorial team. A Q&A reflecting the Advertising and Marketing Zeitgeist.

Brand Marketer Question

MY FIRST QUESTION is WTF I can’t plan much in this environment. When will COVID-19 finally be over?
ANSWER: Don’t expect live to resemble anything close to what we had in 2019 until the second half of 2021.
Good to know: Customers are the lifeblood of business and advertising is the main tool to attract new customers and an important way to retain them. In 2020 business conditions changed dramatically due to COVID-19. This substantially impacted advertising with an expected decrease of U.S. advertising revenue of 17% for 2020 (excluding political advertising, Magna Global);a miserable advertising year.

Brand Marketer Question

OK, but EVEN WHEN COVID IS OVER, how will the new normal impact my advertising and marketing?
ANSWER: Whether you are a company that is not directly facing the consumer or a Direct to Consumer firm, E-Commerce marketing and advertising will be much more important for you compared to pre-Covid-19 levels.(e.g. check out how automotive marketer Cadillac has worked proactively to adapt its advertising and marketing.)
Good to know: COVID has brought enormous changes in the way consumers inform themselves and buy products and has accelerated digital transformation and e-commerce. In January 2020, eMarketer forecast total U.S. ecommerce sales would reach US $674.88 billion in 2020, but a revised estimate puts that figure at US $794.50 billion or 17.7% more than expected! E-commerce skyrocketed from 12% to 16% of retail sales in only one year. Note that there is still a lot of room for e-commerce growth!

On the Relentless Ascent of E-Commerce Focused Advertising

Brand Marketer Question

I can see that it makes sense to put more money to work to grow E-COMMERCE, BUT WHERE EXACTLY SHOULD I DO THIS? Should I invest in advertising to attract  buyers to my own website, to a third party marketplace or to direct them to social selling?
ANSWER: Most brand marketers in the Portada knowledge-sharing network see sales channels as complementary and not competing. “The key is to be omnichannel in order to be where customers need us to be,” one brand marketer says.  Another thing to take into account in your advertising is that third party marketplaces (e.g. Amazon, but also Target or Walmart) are impacting brand messaging. It is crucial for brands to be in control of messaging. As social media becomes even more connected with e-commerce, Influencer marketing  is becoming more sales driven.  (According to Statista, global Instagram influencer marketing amounted to US $ $8,08 billion in 2020.)
Good to know: Amazon (37% sales growth in the third quarter of 2020 (Q3), vs Q3 2019) and other online retailers including Best Buy (23% Q3 2020 vs. Q3 2019 ) and Target (21.3% growth) have gained an enormous power as third party marketplaces who provide data and marketing services to brands. So have delivery and pick-up services like Instacart (grocery), Grubhub (restaurants)  and others. All these intermediaries offer marketers opportunities to advertise their products on their apps and websites. In addition, social media properties are playing a crucial role in sending shoppers to company websites and also offer direct sales integrations (e.g. Instagram has just debuted shopping capabilities within its recently launched Reels feature).
Magna estimates that driven by ecommerce and advertisers looking for “lower funnel” attribution, U.S. digital media revenue grew by 10% in 2020, reaching US $140 billion.

2021 Advertising Question

WHAT ABOUT  THE TOP OF THE FUNNEL. Is there no place for branding and awareness anymore?

ANSWER: “While digital media and e-commerce have changed and shortened the customer’s path to purchase, brand awareness continues to be the basis for consideration and purchase. Broadcast TV and other traditional media forms, including Out of Home Advertising, continue to have major reach and appeal for advertisers. 

Good to know:  Magna forecasts that in 2021, with a COVID vaccine and the postponed Olympics, global advertising will rebound. The agency forecasts the global ad spend to increase by 7.6% to US $612 billion. Linear media, which is mostly awareness-top of the funnel oriented, will grow by 3.5%. 

Where is Experiential Marketing Going?

Advertising in 2021
Michael Goldstein, Mastercard

2021 Advertising

Corporate America used to utilize in-person Live Sports events to obtain high reach and engagement. Will that again be the case once COVID is over or will VIRTUAL EVENTS, INCLUDING E-SPORTS, STILL PLAY A MAJOR ROLE?
ANSWER: “You will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid,” Michael Goldstein, VP and Head of sponsorships North America at Mastercard recently told Portada.

Good to know: The pandemic produced a huge drop in live sports ratings (e.g. a decline of 49% in NBA finals and 61% in NHL finals) as the absence or scarcity of fans in the stands may have dulled the excitement around watching events. Approximately US $ 1 billion in advertising expenditures were lost.

Advertising: How can Ad-Tech and MarTech Help?

2021 Advertising Question

DATA PRIVACY REGULATIONS are making it more difficult to target consumers. How can I solve this in 2021 and beyond? 
ANSWER: Contextual targeting  technology provides a data privacy-friendly alternative to behavioral targeting, It can help a brand understand what a consumer might like without needing personally identifiable information. Contextual targeting uses linguistic elements and the advertisements themselves are selected and served by automated systems based on the context of what a user is looking at (e.g. check out Tecate’s new campaign). Contextual targeting can also be useful for performance marketing efforts.
Good to know:  Data privacy regulations and third party cookie phase-outs have digital advertisers scrambling for solutions to maintain campaign efficiency and scale without the regulation compromising behavioral targeting technology.

Brand Marketer Question

Nice to know…but I think my company should also obtain FIRST PARTY DATA as a major way to get customer insights. Don’t you think so?
ANSWER:  Brands can gain a lot by unifying first-party data sources into a single customer view in a Customer Data Platform, CDP, although the platforms may not necessarily do everything a marketer expects them to do.
Good to know:  Marketers will need to shift from reliance on third-party data for audience targeting and campaign measurement to a new model  improving the way they collect, manage, and activate their first-party data. Ogilvy head of experience technology, Jason Davey, sees digital marketing strategies shifting to prioritize first-party data as the looming cookie crisis gets real.  Due to technological advances, multi-channel data collection, attribution, curation, enrichment and decisioning has become more accessible and affordable.

Question

How does this all connect with my increased need to PERSONALIZE CUSTOMER COMMUNICATIONS?

ANSWER:The appropiate use of CDPs will continue to drive the hyper-personalisation trend, with more interest in Artificial Intelligence including predictive data analysis.

Good to know: Recent Salesforce research found customers increasingly anticipate personalized interactions at every stage of their buyer’s journey, from brand awareness through purchase and potentially on to retention and brand advocacy.

 

Question

Sounds interesting. Another question I have is if I should invest more in CONNECTED TV (CTV). While the audience watching CTV is huge why are CTV advertising investment volumes so small?
Darcy Bowe
Darcy Bowe, SVP, Media Director, Starcom USA

ANSWER: CTV is clearly on the rise, as are other forms of video advertising, yet more sophisticated CTV measurement options “are key – and that will allow us to measure viewership and frequency across screens more easily,” Darcy Bowe, SVP, Media Director at Starcom USA tells Portada.

Good to know: CTV household penetration lies at 80% and Pay-TV’s at 62%, yet CTV  advertising is expected in 2021 to amount to only 15% of total US TV ad spending.

 

How can Segment and Purpose Driven Advertising Really Work?

Question

How should I approach marketing toward ETHNIC POPULATION GROUPS in 2021 and beyond? 
Larissa Acosta
Larissa Acosta, Wells Fargo.

ANSWER: “The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies, that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target”, says Larissa Acosta, Integrated Marketing Consumer + Diverse Segments Team Leader at Wells Fargo.

Good to know: Over the last decade Corporate Americas has used the Total Market approach (TMA). This approach integrates diverse segment considerations and mostly leads to a full cross-cultural approach and campaigns. Critics note that the TMA is not effective for multicultural marketing and that the real reason companies use TMA is that they realize savings in their advertising expense and marketing organizations.

 

Brand Marketer Question

OK. I do want to TARGET THE HISPANIC POPULATION specifically and support media properties that cater to those communities. How can I advertise toward the Hispanic segment in a cost effective way. I mean Facebook and other platforms tend to be cheaper and have a lot of reach?
Advertising in 2021
Alexis Kerr, Cadillac

ANSWER: We have found creative ways to nurture our multicultural media partners to ensure they serve us in various different ways vs just ROI. Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships.”, says Alexis Kerr, Head of Multicultural Marketing | Strategy, Content and Execution, at Cadillac.

Good to Know: Brands are often asked to invest in media properties that serve diverse communities. Yet, these media properties may not have enough reach to justify a media spend on ROI terms. (It also has to be said that while the cost of advertising in social media is lower, it not always guarantees brand safety.)

Brand Marketer Question

RACISM AND INEQUITY are major factors behind civic unrest. How should I be mindful of this in my brand’s advertising? 
ANSWER: It is counterproductive for a company to advertise if it does not commit to social and economic change by incorporating diversity, racial justice and social equity mandates and their execution. This should include executive leadership and personnel selection, an ecologically sound production process as well as diversity in vendors.
Good to know: Covid-19 exposed a historic cycle of systematic racism and oppression as civil unrest hit many U.S. cities in 2020. More than 35% of young consumers (aged 19-26) have stopped shopping from a brand who has not spoken out against racism (Oberland Survey, August 2020).

 

 

d2h Partners has acquired Arenas Group, the first Hispanic entertainment marketing agency of its kind in Hollywood,. The transaction reflects the growing demand for of OTT marketing, D2C and Direct Response expertise.

Both the Arenas and d2H brands will keep their names and identity, complementing each other’s extensive experience, and offering services including Publicity, Promotions, Creative Advertising, Media and Direct Response, and Consumer Insights.  Founded by Santiago Pozo in 1988,  Arenas Group has worked on more than 600 films and television campaigns throughout its 31-year history. d2H Partners, led by branded response veterans Marcelino Miyares, Jr. and Patricia Testa, is a direct response advertising agency also specializing in the US Hispanic market.

Portada interviewed Santiago Pozo, Founder, Arenas Group and Patricia Testa, Managing Partner, d2H Partners.  They claim that “Arenas Group has always been a pioneer in the industry, and continues to stay ahead of the curve by bringing a deep understanding of the Hispanic values and culture to the studios. We are not a general market agency with a Latino arm, we are a Hispanic agency from top to bottom. ”

d2H Partners-Arenas Group: Changing Marketplace

Santiago Pozo
Santiago Pozo, Founder, Arenas Group

Asked about how the new agency will adapt to reflect the changes in Hollywood and Entertainment (e.g. Warner Bros recently announced that it will be distributing movies on HBO Max at the same time as in theatres, the agency executives answer that” the recent announcement made by Warner Bros is a result of the unprecedented times we are living in, and opens up new opportunities to tap into a Latino audience who prefers to enjoy movies with their families at home for financial reasons. We continue to craft relevant messages for our campaigns that resonate with the Latino community.”

The recent announcement made by Warner Bros is a result of the unprecedented times we are living in, and opens up new opportunities to tap into a Latino audience who prefers to enjoy movies with their families at home for financial reasons.

Asked about whether the fact that a DR (direct response) agency (d2H Partners is buying a more traditional agency (Arenas Group) reflects that DR and D2C, including OTT Marketing, expertise has substantially grown in demand, the executives answer that.  “The D2C environment is evolving, and the recent changes caused by the pandemic in how we consume entertainment, call for a more focused and direct approach. That is not to say that marketing and communicational programs traditionally used in the entertainment sector will disappear, but they will have to co-exist in a more D2C-focused marketplace.”

The marketing programs traditionally used in the entertainment sector will  have to co-exist in a more D2C-focused marketplace.
Patricia Testa
Patricia Testa, Managing Partner, d2H Partners

Arenas Group’s key accounts include Walt Disney Animation Studios, Disney+, Netflix, 20th Century Fox, Archdiocese of Los Angeles, Sony Pictures, Paramount Pictures, independent producers, etc., for which they have provided a variety of marketing services from Digital to Publicity, Promotions and Creative. d2H accounts include leading marketers in the Direct to Consumer (D2C) space, such as NuWave, the maker of the Bravo XL Oven. Great HealthWorks, one of the largest vertically integrated direct-to-consumer companies in the US specialized in health and wellness, with its cornerstone product, OmegaXL. On the lead generation front, client Lincoln Heritage Life Insurance markets Funeral Advantage, the leading final expense life insurance program in the U.S.

 

Hispanic content company Impremedia is launching  Siempre Auto: a digital destination specialized in cars and the automotive industry aimed at the Hispanic community living in the United States.  Hispanic car buying habits support the launch as Hispanics are aware of 10-20% fewer car brands than the general U.S. population, according to Nielsen.

Siempre Auto
Rafael Cores, VP of Content, Impremedia

Automotive marketers targeting Spanish-language car buyers in the U.S have a new vehicle to reach Hispanic car buyers at Siempre Auto. Siempre Auto offers specialized information about cars in Spanish. The content seeks to help readers to make the best decisions regarding their mobility needs. “Our goal is to provide a straightforward approach for the Latino consumer that we feel lacking in the current space,” Rafael Cores, Impremedia’s VP of Content, said in a statement. “The reader always comes first. We provide the right information to suit the consumer’s needs: whether that is buying or selling a car, doing maintenance work on your vehicle, or staying updated with the news in the automotive industry.”

Over the past decade, the market of Hispanic car buyers and owners has undergone high growth and now comprises a very lucrative segment for the auto industry.

Siempre Auto: Targeting Hispanic In-Market Car Buyers

Ivan Adaime-ImpreMedia
Ivan Adaime, CEO, Impremedia

Over the past decade Hispanic car buying habits have undergone high growth and now comprise a very lucrative segment for the auto industry. “Despite that fact, there is no modern digital publication serving the needs of the Latino community:  Siempre Auto will fill that gap,” says Iván Adaime, CEO of Impremedia. Adaime tells Portada that “out of the top 10 advertisers at Impremedia there are several automotive companies on top of insurance companies.
Adaime notes that “data shows that 92% out of the 17.8 million Hispanic households in the U.S. currently own a vehicle, while almost half of those households plan to buy a car in the next 11 months. And this trend is fueled by more affluent Spanish-dominant Hispanics”. Impremedia mostly targets the Spanish-language market in the U.S. In fact, Adaime earlier this year told Portada that he has not seen the model of publishing in “english with cultural nuances working at scale.”

17.8 million Hispanic households in the U.S. currently own a vehicle, while almost half of those households plan to buy a car in the next 11 months.

Hispanic Car Buying Habits: Less Car Brand Awareness

Nielsen’s latest Annual Auto Marketing report found that driving connections with the multicultural consumer is key to the automotive industry. According to the study, consumers from multicultural groups – Hispanic, Black and Asian American – are aware of 10-20% fewer car brands than the general U.S. population. The reports adds that “Automotive brands are less top-of-mind for multicultural consumers, and there is an imperative for marketers to close that gap because most purchase decisions can be traced back to brands that consumers already have in mind before starting out on the path-to-purchase. But when purchasing a vehicle, Hispanic and Black shoppers consider six to seven brands by the time they’re ready to buy. This represents two more brands compared to Asian Americans and non-Hispanic Whites. Hispanic and Black shoppers are more receptive to advertising efforts even if a brand wasn’t top-of-mind in the first place.” The reports adds that “Omnichannel advertising is essential for reaching multicultural consumers. Hispanic car shoppers, for instance, tend to be young and connected, and their level of recall for ads they see digitally is unmatched.

Hispanic car shoppers, for instance, tend to be young and connected, and their level of recall for ads they see digitally is unmatched.

According to Impremedia’s Adaime, “Hispanics’ finances dictate pragmatism, that could mean buying used cars or being very practical and price-conscious when buying a new one. We also know that Hispanics over-index for being in buying mode and thinking about making a car purchase in the near future.”

More Targeted Publications in the Pipeline

“Siempre Auto joins our vision of continuing to provide quality content targeted to the interests of different readers in a digital format and is our latest but not last addition to our lifestyle brands,” added Adaime. Impremedia recently launched Solo Dinero  a site targeting audiences and advertisers in the financial category.

New publications will be added in areas where we detect two trends: that there’s a growing need from the audience for quality content in Spanish and a lack of publishers serving those audiences.

“We are planning to launch new publications in areas where we detect two trends: that there’s a growing need from the audience for quality content in Spanish and, on the other hand, a lack of publishers serving those audiences. In this regard, the next few months are going to be pretty busy for us,” Adaime concludes.

While the option that celebrates and promotes the diversity of our country won, the election result shows a very divided citizenship. Purpose Driven Marketing: Two things  to know. 1.: Brands need to allocate a larger amount of their media spend to media properties that invest in professional journalism. 2:. The Total Market Approach makes even less sense in this environment.

1. Challenge: Social Media’s Harmful Role Spreading Entirely Fabricated Content

The spread of entirely fabricated  partisan content presented as factual through social media is very harmful to a functioning democracy. Evidence abounds: According to a 2019 study published in Science by MIT Sloan professor Sinan Aral and Deb Roy and Soroush Vosoughi of the MIT Media Lab. They found falsehoods are 70% more likely to be retweeted on Twitter than the truth, and reach their first 1,500 people six times faster. This effect is more pronounced with political news than other categories.  Separately about two-thirds of Americans (64%) say social media have a mostly negative effect, according to a  Pew Research Center Survey.

Solution: Purpose-Driven Marketing; Brands Invest in Professional and Trustworthy Media

Independent, truth-seeking professional journalists apply reporting methodologies and a code of ethics that makes them accountable and transparent. 

Rafael Cores
Rafael Cores, VP, Digital Content, Impremedia

Rafael Cores, VP, Digital Content at Impremedia tells Portada that “the vote has always been polarized, what perhaps is new is that there is more divisiveness so that one side that does not understand the other.” Cores emphasizes the value of strong editorial guidelines and professionalism:  “At Impremedia our editorial line has always been that  we are on the side of our community. We analyze carefully the policies that impact a majority of the Hispanic population and we report the attacks this community receives regardless from whom they are coming from. We try to provide information that is based on facts and not on opinions or false assertions.”

We try to provide information that is based on facts and not on opinions or false assertions.  

Independent professional journalists need to play a much more important role in providing facts and content to decision making (votes) citizen. Truth seeking journalism must be a value that unites America. However, the cost of professional content and news production and distribution is very high making the running of a profitably operated property a very challenging proposition, but for very few companies (e.g. The New York Times and The Washington Post) as tech powerhouses Google, Facebook and Twitter command more than 80% of the digital ad market.   In other words, we are talking about what economists describe as a market failure in the form of  free market outcomes that result in an uninformed citizenship. Purpose-driven brands can solve this by investing a larger part of their media mix in professionally managed media properties that are trustworthy. Consumers should reward these brands by buying their products and services in a similar way that they reward them by speaking out against racism (e.g. more than 35% of consumers aged between 19 and 26 years have  stopped shopping from a brand that has not spoken out against racism according to a survey by Oberland).

Consumers should reward brands who buy media in professionally managed properties in a similar way that they reward them if brands speak out against racism.  

2. Challenge: The Total Market Approach Is Useless

As expert Dan Goldgeier asserts, a divided country means a divided audience for marketers. That is certainly also the case in multicultural marketing. According to the Associated Press, 63% of Hispanics voted for Biden and 35% for Trump. For Muslims the split was 64/35 and for Catholics 49/50. With the exception of African Americans (90/8), a substantial political divide is always present when marketing to different multicultural segments. The Total Market Approach, understood as an overall marketing strategy that includes diverse segment considerations, too often produces fully integrated cross-cultural approaches based on “common denonimators” that ultimately sterilize  campaigns that fail to engage the target consumer. One key condition for effective purpose-driven marketing is that marketing communications successfully engage their target audience. That does not happen in most Total Market Campaigns.

 

Larissa Acosta
Larissa Acosta, Segments Team Leader, Integrated Marketing, Wells Fargo

Solution : Segment Based Marketing Leading with Diverse Insights

“The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target,” Larissa Acosta, Segments Team Leader, Integrated Marketing at Wells Fargo, tells Portada.

The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies.

“Effective Marketing is about people and relationships. The more we focus on the consumer, their needs their wants, the greater are our opportunities to affect business outcomes. In key categories including financial services diverse consumers represent the engine growth. Multicultural audiences represent 3.2 trillion in spending power. Smart marketers who really understand the business opportunity will seek ways to lead with diverse insights,” Acosta concludes.

The news that Entravision is  purchasing Cisneros Interactive marks another chapter in the consolidation of the U.S. Hispanic and Latin American digital media space. Six questions and answers: Acquisition price? The rationale for the transaction? How Entravision is substituting off-line revenue losses with digital gains and more…(This article has been updated on December 17, 2020 with new insights from industry sources).

Entravision and Cisneros just announced that Entravision has acquired a majority stake in Cisneros Interactive. 6 things to take into account about the transaction and what it says about the multicultural and Latin American digital marketing sector.

1. Entravision purchases Cisneros Interactive: What is the price of the transaction?

Entravision Cisneros Interactive AcquisitionNeither the price of the transaction nor the size of the stake of Entravision in Cisneros Interactive was disclosed (other than it is larger than 50%) UPDATE:  According to our sources, the transaction did reflect a full cash-upfront payment with remaining strong incentives to deliver stronger results over time. Moving forward both Grupo Cisneros and Entravision will run the business based on agreed operational and financial standards within the compliance required as a public entity. 

A full cash-upfront payment with remaining strong incentives to deliver stronger results over time.

2. What is Entravision buying?

Currently, Cisneros Interactive’s portfolio consists of six initiatives:

Representations: Facebook’s Authorized Sales Partner in Latin America: Cisneros Interactive is Facebook’s strategic partner in Latin America, at this moment with presence in 9 countries (Ecuador, Paraguay, Bolivia, Uruguay, Panama, Guatemala, Costa Rica, Dominican Republic and Puerto Rico). Cisneros Interactive in these markets offers advertisers and ad agencies local selling efforts support, agency training and local credit and payment. Cisneros Interactive also has sales partnerships in some Latin American markets with Linkedin and Spotify with which it reaches 17 markets.

– UPDATED: Digital Audio:  Cisneros Interactive fully owns Audio.Ad, perhaps the largest digital Advertising network and the only Audio DSP in Latin America (Audio.trade). It additionally has the exclusive representation in Latin America of large audio publishers such as Tunein, PRISA’s programmatic inventory, Deezer, and podcast-giant Wondery. This unit has direct and strong synergies with AudioEngage, which is Entravision´s own digital audio network. 
– Mobile Video.  Cisneros Interactive has a mobile video platform spearheaded by its JustMob business unit which also holds a strong alliance with Unity, the global mobile platform provider and with presence throughout 16 countries in Latin America.
All Cisneros Interactive employees will remain with the company, with Victor Kong continuing as Chief Executive Officer, based out of Miami. Carlos Córdova will serve as COO of the company and head of all digital audio units. 

3. What is the rationale for the transaction in the U.S.?

Major drivers are to obtain critical mass, more marketing muscle and economies of scale.  Portada estimates,  that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019 (check out our recent Insights Report  How brands engage U.S. Hispanics: New segmentation approaches). At least 80% of that amount is sold by Google and Facebook, leaving approximately  US $210 million for other companies. Portada also estimates that advertising in Spanish-language digital media targeting Hispanics in the U.S. lied at US $350 million in 2019, with approximately US$ 70 million for non-Google/Facebook players. In the U.S. Hispanic market the main second tier players are Univision Interactive,  NBC Interactive, Pandora and Spotify. Entravision digital revenues in the second quarter of 2020, were US $11.4 million. With the Cisneros Interactive acquisition and other acquisitions Entravision is attempting to step up and become a major player in the fifth of the market that is not dominated by Google and Facebook.

With the Cisneros Interactive acquisition  Entravision is attempting to step up and become a major player in the fifth of the digital ad market that is not dominated by Google and Facebook.

If you add the fact that despite all the “diversity marketing” talk during COVID-19 there have been stronger declines in digital ad volume in the U.S. Hispanic advertising market than in the general U.S. market (e.g. CEO Walter Ulloa mentioned during the second quarter conference call that digital revenues were $11.4 million, which represents a decrease of 32% versus the same period last year), the need for consolidation through an Entravision Cisneros Interactive acquisition is imperative.

and Latin America?

The expanding Latin American digital media market is dominated by Google and Facebook who get at least 80% of the sales volume.  The remaining sizable players are ad rep company IMS and video marketer Teads, and perhaps Spotify. Beyond these players, and some strong national market media, it can be said that there is no more “middle class”  in the Latin American and U.S. Hispanic markets.  Hence, the need of medium size players like Entravision and Cisneros Interactive to integrate.

There is no more ‘middle class’ among digital media properties targeting  Latin Americans. Google and Facebook origin more than 80% of the market volume.

 

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4. Entravision Cisneros Interactive acquisition: Are both companies complementary?

By and large they are, as Cisneros Interactive has a strong footprint and client base in Latin America, it serves over 4,700 brands and agencies each month, and Entravision Digital in the U.S. There are some overlaps like Cisneros Interactive Audio Advertising company Audio Ad and Entravision’s Audio Engage. Although, the press release states there will not be personnel changes, some cost saving rationalization in some units going forward may make sense.

5. How is Entravision expanding its digital business?

Entravision Cisneros Interactive Acquisition

For a number of years Entravision has worked on a digital strategy to meet market demand. In  2017, Esteban Lopez Blanco, at the time Chief Strategy Officer at Entravision told Portada  that he “expected a growth rate of the digital business of more than 40% for many years to come.” At the time he estimated the share of digital revenues in Entravision’s overall revenues to climb from 20% to 30% by 2019 or 2020. UPDATED: For 2021, Entravision expects the ratio to be above 50% of revenues.

Earlier this year, Entravision announced the launch of Entravision Digital , which consolidates its business units in the US and abroad and marketing technology businesses under the Entravision brand.  The company has worked over the past several years to  build a portfolio of digital assets that possess digital reach, data insights and creative and programmatic capabilities.  Entravision made its first foray into ad-tech when it bought Pulpo Media for US$ 15 million in 2014. In 2017 it bought Argentinean Martech company Headway , for a price insiders claim to lie between US $30 million and US $40 million, Headway includes  AudioEngage, a digital audio advertising platform; ScrollerAds, an optimized video advertising marketplace; DataXpand, an international data management platform and audience marketplace with consumer insights.
Entravision later bought Smadex, a programmatic, mobile-first, DSP services provider.

6.  Does digital growth at Entravision compensate for off-line declines?

In the short term the answer is no, because right now all revenue types are declining at least in part due to the COVID-19 pandemic. The share of digital revenues on overall revenues was of 25.3% according to Entravision’s second quarter 2020 financial results.  By far the largest part of Entravision’s revenue base is broadcast advertising (TV and Radio) which even before COVID-19 was having year on year revenue declines of at least 10%.  In the words of CEO Walter Ulloa, those declines got bigger with the advent of COVID-19: “Television revenues in the second quarter were down 29% to US $27 million, compared to the prior year period due to the pandemic. National television advertising revenue was down 25%, while local advertising revenue was down 43%. Audio revenues were down 53% during the second quarter, compared to the prior year. Local revenues were down 52%, while national revenues were down 54% in the quarter.” For Q3 2020 In early August, Entravision’s Q3 television advertising business is pacing minus 8%, our radio business is pacing minus 34%, and our digital businesses are pacing minus 18% versus the third quarter of 2019.

For 2021, Entravision expects digital revenues to lie above 50% of overall company revenues.

Walter Ulloa, CEO Entravision, mentioned during the second quarter 2020  financial results conference call on August 4 that  Entravision’s overall revenues decreased 35% to $45.1 million in the second quarter. Consolidated operating expenses were down 24%, and consolidated adjusted EBITDA was down 86% to $1.7 million, compared to $12.6 million last year.

The jury is still out on whether in the long term digital growth will compensate for the secular decline in off-line revenues, but inverstors are not betting on it:  If You Had Bought Entravision Communications’ Shares Five Years Ago You Would Be Down 79%, financial analysts at Simply Wall Street recently wrote.  But then stocks also turn-around.

The real estate industry is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Real estate brokerage Coldwell Banker is implementing an Inclusive Ownership Program to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the sector. To get a better undetstanding of the initiative and its diversity marketing implications, we talked to Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the holding company that owns Coldwell Banker. Riveiro is a member of Portada’s Council System of Brand Marketers. 

Jason Riveiro, Director, Global Development & Growth Markets at Realogy
Jason Riveiro, Director, Global Development & Growth Markets at Realogy

A recent study by ad agency Oberland finds 91% of Americans believe their actions and the actions of brands will lead to sustained change on the social-justice front. According to the study, 42% of Americans aged 19-26 have stopped buying a brand that has been exposed for racist behaviors. Almost one-third of those surveyed want to see brands provide employees with appropriate diversity and inclusion training. 20% want brands to commit to hiring more Black employees.  Are brands not just doing the talk but also the walk? And how are their diversity initiatives reflected in their marketing strategies?

Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the company that owns Coldwell Banker, tells Portada that “the real estate industry as a whole is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Coldwell Banker has identified this issue and is committed to not only expand its diversity in-house, but more importantly, be a leader in servicing, mentoring, and championing diversity in the real estate industry,” Coldwell Banker has a network of over 94,000 affiliated residential and commercial real estate  sales professionals in 3,000 offices across 43 countries and territories.

We are commited to be a leader in servicing, mentoring, and championing diversity in the real estate industry.

Diversity Marketing: How is Coldwell Banker Prioritizing Diversity?

Coldwell Banker’s Inclusive Ownership program  is an initiative to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the real estate industry. Each new brokerage that affiliates with Coldwell Banker will not pay the initial franchise fee and will receive financial incentives to support diverse business owners in the critical first two years of business. Benefits include up to $100,000 of funding, royalty fee rebates as well as education and mentorship. Owners will also receive membership and conference registration for an industry partner group of choice.  As part of their inclusive Ownership program Coldwell Banker recently welcomed three minority owned new brokerages: Coldwell Banker Omni Group in Santa Ana, Calif., owned by Tina Marie and Rich Hernandez; Coldwell Banker Action Holdings in Grand Island, Neb., owned by Amber Schuppan; and Coldwell Banker Commercial Northland in Flagstaff, Ariz., owned by Becky McBride.

How Large are Minorities in the U.S. Realtor Base?

According to the National Association of Realtors, Hispanics/ Latinos accounted for 10 percent of REALTORS®, followed by Black/African-Americans (six percent) and Asian/Pacific Islanders (five percent). New members tended to be more diverse than experienced members. Among those who had two years of experience or less, 27 percent were minorities. Spanish is the most common second language that members were fluent in. Among all REALTORS®, 13 percent were born outside the U.S.

27 percent of realtors who have two years of experience or less are minorities.

Diversity Marketing: How is the Diversity Initiative Supported?

How does Coldwell Banker’s objective of Cultural Diversity impact Marketing? Riveiro tells Portada that his marketing approach is to get the word out to as many industry people as possible. “We’re focusing on growing awareness  among industry reporters and influencers talking about the program and connecting with various organizations / associations – National Association of Real Estate Brokers (NAREB), Asian Real Estate Associate of America (AAREA), National Association of Hispanic Real Estate Professionals (NAHREP) – to spread the word. The program almost markets itself,  as we’ve had hundreds of respondents interested after we first announced it though there are still steps needed to keep up the momentum.”

According to Riveiro, “an additional tactic that sets this program apart is the one-on-one guidance, mentoring and overall support that Coldwell Banker, at a national level, provides to all participants that affiliate with this program. The support starts on Day 1, and agencies benefit greatly from ongoing guidance, access to materials and an immediate network of industry professionals on a nationwide platform”

Video engagement is a major factor for successful advertising. A Vevo-Magna-IPG study finds co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity.

Music video platform Vevo has partnered with MAGNA and IPG Media Lab, to reveal significant findings around the nuances of multicultural audiences’ video viewing behavior.

“The Anatomy of a Video Experience: A Multicultural Study” explores how audiences consume content across multiple devices and their motivations around viewing habits. Understanding these subtleties is key for brands looking for great video engagement and reach receptive audiences and better inform their planning efforts.

Viewer BehaviorThe study found that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White), shared a love of co-viewing (watching video with someone other than yourself) on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV.

Longer viewing periods result from content that people find culturally relevant, specifically sports and music. On average, 37% of highly culturally relevant content viewing sessions last for one hour or more. When it comes to ad receptivity in particular, viewing music content on OTT devices is key, with over 60% of each group responding that they would be receptive to ads.

On average, 37% of highly culturally relevant content viewing sessions last for one hour or more.

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“Partnering with MAGNA and IPG Media Lab once again for this study is really valuable for our business” says Bryon Schafer, SVP of Research, Vevo, “With recent findings showing that 79% of Vevo’s CTV content is being co-viewed, it’s important for us to understand the nuances of audience behaviors in order to pass on these insights with our clients and partners. No screen is seeing a greater surge in Vevo viewership than the television, which has seen an increase of over 20% since March of this year with 61M viewers exclusively engaging on connected TV screens. Modeling user behavior against our content and go-to-market strategies keep us in tune with our global audiences. We’ve really enjoyed finding out exactly what makes viewers tune in – and stay tuned in to the content they watch.”

Video Engagement: Audience demographics

While co-viewing on OTT devices spans across all surveyed viewer behavior groups, each demographic has vast differences around why, when and how they watch content on various devices. Some of these findings include:

  • Asian audiences:
    • Older audiences are more likely to seek out informative videos for task-based viewing sessions across all devices.
    • Younger Asian audiences are more likely to watch binge-friendly genres, like music, resulting in longer viewing periods of over an hour across all devices.
  • Black/African American audiences:
    • As a whole, Black/African American audiences watch binge-worthy content for longer periods of time. However, unlike younger Asian audiences, younger Black/African American viewers tend to watch content in shorter spurts of less than 30 minutes, likely driven by higher levels of mobile usage.
    • Black/African American viewers are the most likely audience to seek out music and sports content.
    • OTT is the leading device to resonate with Black/African American viewers at their most engaged with 63% of audiences being receptive to ads on this device.
  • Hispanic/Latino audiences:
    • English-dominant and bilingual Hispanic/Latino viewers tend to have longer watch time. While Spanish-dominant audiences watch for mid-length sessions of 30-59 minutes.
    • 33% of total Hispanic/Latino viewing sessions last longer than one hour.
    • 60% of Hispanic/Latino viewers watching music on OTT are receptive to ads.

Viewer Behavior“Culture is a pervasive and essential part of every consumption and is being driven by people of color,” says Oscar Allain, VP of Cross-Cultural Strategy & Research at UM. “These consumers are critical to the growth of businesses across all sectors. Not only are they influential in driving their own cultures, but they are also shaping mainstream culture.”

These consumers are critical to the growth of businesses across all sectors.

“Our Cultural Dimensions study reinforced the idea that social media platforms have helped propagate and influence the conversation on culture.  So the merging of our datasets with IPG Media Lab’s and MAGNA’s helps to bring new multicultural insights into how we think about creating smarter strategies for data analysis, planning, creative and more,” says Deidre Smalls-Landau, U.S. Chief Marketing Officer and Global Head of Culture for UM.

What: Who are brands turning to in order to engage today’s evolving Hispanic Marketing audiences? Are Univision and Telemundo still the go-to networks? How are budget allocations shifting as new platforms and media emerge? We talk to industry insiders to find out.
Why It Matters: While digital platforms allow for more effective targeting and messaging, Univision and Telemundo remain referential to Hispanic marketers. Their market share and consumer demographics resources make them pillars of Hispanic communication.

Evolving demographics and new digital platforms and formats are keeping marketers on their toes. But while online video and social media are extremely popular, some things don’t change. Networks Univision and Telemundo continue to wield considerable power in connecting brands with Hispanic audiences.

 

Telemundo, Univision: a source of knowledge about consumer demographics in Hispanic Marketing

Multicultural marketers watch Univision and Telemundo closely. The industry leaders are an example on how to keep up with the increasingly complex Hispanic demographic. In many ways, marketers are comfortable turning to them as safe bets for reaching and truly engaging Hispanic audiences. Chris Ota, Marketing Manager, Confections & Global Foods at Nestlé USA said that their Multicultural COE, led by Margie Bravo, “works very closely with Univision and Telemundo as they bring great resources and knowledge about with consumers demographics.”

Margie Bravo, Multicultural Marketing Manager at Nestlé USA explains how the two powerhouse networks have seen the shifting Hispanic Marketing landscape evolve. “They are adapting the offering for the future as they more than anyone has seen their audience evolve as well.”

Larissa Acosta, Segments Integrated Marketing Lead at Wells Fargo, agrees. “Latinos are an important consumer segment for Wells Fargo, which is why Univision and Telemundo are key partners in our marketing mix. They both target the same audiences with similar programming. We don’t see one network as more effective than the other.”

Too few marketers cater to Spanish-Speaking Hispanics 

Lucia BallasTraynor, Executive Vice President, Client Partnerships at Hemisphere Group, supports both Ota and Acosta’s arguments in favor of Univision and Telemundo’s effectiveness. “Tell me what general market network can claim the type of share that Telemundo and Univision have. That’s what marketers and buyers should focus on,” she says. 

Tell me what general market network can claim the type of share that Telemundo and Univision have? That’s what marketers and buyers should focus on.

She also explains what it means that Univision and Telemundo still hold such a high share of Hispanic audiences. “It means that regardless of acculturation level or language proficiency, Hispanics are still largely underserved by general market choices.”

English or Spanish. What difference does it make?

Regardless of which language Hispanics speak primarily, Spanish plays a key role in their identity. For this reason, “reaching ‘Spanish-language Hispanics’ is still a priority for a select group of marketers, but should be part of every marketer’s strategy,” adds Traynor.

Nonetheless, Morgan admitted that Univision and Telemundo are far more targeted to the bilingual or Spanish-dominant Latino. They “still don’t address the English dominant ones, as the majority of their programming (95%+) is Spanish-language.” As the Hispanic becomes more acculturated and bilingual, Morgan, at least, does not see them switching to English: “Their core business is Spanish-language television, so the story they tell in the marketplace speaks to that.”

New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant. We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.

Acosta of Wells Fargo seconds that sentiment, and adds: “Spanish language television has been delivering big ratings for a while now, so we are not surprised that the trend continues.” She also notes that much of the viewing for these networks is live, as streaming and time-delayed viewing become more common programming formats.

It’s complicated to address the Hispanic audience at the right level of inclusion. Marketers must understand that the Hispanic American today is complex. Bravo of Nestlé says that when Telemundo and Univisión started “[they] had a foreign-born population that didn’t speak English, but today the highest growth is coming from the second-generation of US-born Hispanics who are very proud of where they came from but want to also honor their American heritage.” For this reason, instead of focusing solely on Multicultural or Hispanics, many brands are opting for a Total Market approach.

More Brands Adopting ‘Total Market’ Approach

Nerds candy Hispanic Marketing campaign
Nerds candy Hispanic Marketing campaign

Nestlé is one of them. Their coffee Latino-oriented brands like La Lechera, Nescafé Clásico, and Coffee-mate communicate through both English and Spanish advertising. Bravo adds that “The Spanish creative may be slightly different to acknowledge the nuances of how the brand is viewed or used amongst Latinos.” However, a Total Market approach seems to facilitate more flexibility.

Bravo also mentions that Nestlé has introduced “exotic flavors inspired by Hispanic tastes across several categories,” like confections, frozen snacks, and beverages. For example, take the Nerds candy ¡Lucha Grande! campaign. “For Hispanics some of these flavors may be nostalgic. But for Non-Hispanic Millennials, these flavors may add a cool twist to their favorite Nerds candy,” says Bravo. And the industry recognized this effort, awarding it the National Confectioner Association’s (NCA) “Most Innovative 2017 New Product” award.

Are Facebook and Google alternatives to Univision and Telemundo? 

So what about the alternatives to Univision and Telemundo? Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures, said: “Univision and Telemundo are Spanish-language television networks,” says Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures. “Facebook, Google and now possibly Snap have more influence specific to Latinos, [but] those networks have small digital footprints.”

On the other hand, Acosta noted that new digital platforms do offer opportunities that television does not. “New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant…We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.”

Acosta adds: “Both networks have recognized that media consumption is changing. They’ve set very interesting strategies in play to evolve with the times.” By acquiring properties like Fusion, The Onion, and The Root, Univision’s strategy seems to target not just Hispanic, but Millennial audiences. Telemundo, on the other hand, promotes within NBC’s properties. “They are both important partners, and are among many other Hispanic targeted vehicles that are part of our media mix,” Acosta said.

Multicultural and Hispanic Marketing: different but the same? 

While some people use the words “Multicultural” and “Hispanic” interchangeably, they most certainly do not mean the same thing. Still, many brand marketers do not have budgets for both types of targeting. Are media buyers and brand marketers starting to shift budgets away from Hispanic into broader Multicultural targeting?

Morgan of Latina Media Ventures asserts that he does see them as competing for budgets. “It’s about trying to tap into two buckets of money. Some brands just have one or the other, but it’s smart on their part if they can pull it off, as Multicultural blurs the color or ethnicity line.”

But Morgan does not believe that budgets will shift away from Hispanic to Multicultural. Hispanic “can be as specific as Spanish-language only. This means the exclusion of the fastest growing Hispanic segment, the acculturated Latino.” In his experience, “there are specific Hispanic initiatives and then there are Multicultural ones.”

Will both fuse? Will marketers have to choose?

Acosta of Wells Fargo agrees that both Multicultural and Hispanic marketing are evolving. This progress is thanks to demographic changes “combined with the growing influence of diverse cultures on the mainstream, particularly with younger, digital native generations.” She adds that they work closely with Association of National Advertisers, the Alliance for Inclusive & Multicultural Marketing, and other industry organizations “so that the work is reflective of the growing influence and acceptance of diverse insights in business planning.”

Acosta asserts that, at Wells Fargo, they do not see any demographics or audiences as competing for budget.  Instead, they let “the business opportunity determine our segment strategies and budget allocations.” This means the company allocates budgets in segments that are driving business through studying campaign data and measuring performance. So, in the end, it always boils down to having the right data. It’s important to know your target in order to choose the right approach. 

 

 While civil unrest has hit many U.S. cities, brands response to racism has often been unmindful.
“Brands have nothing real to say about racism’ is the headline of a recent Atlantic Monthly article. Is Corporate America ready to provide messaging that resonates with the consumer? How should brands respond to racism? 7 things to know.

1. Brands Response to Racism that has Resonated with the Consumer: Nike and Ben & Jerry

Nike was among the first brands to pivot its messaging. On May 29, Nike posted a text video in black and white, tracked to somber piano music, on its social-media accounts. “For once, don’t do it,” the 60 second video solicits, invoking the brand’s famous “Just do it” slogan. Later in the video, the command gets only slightly more specific: “Don’t pretend there’s not a problem in America.” Eventually, the “problem” is named as racism.

Ben & JerryIce cream and frozen yogurt company Ben & Jerry issued a corporate statement on its website and on Twitter that’s been widely shared and praised on social media. It begins by saying, “The murder of George Floyd was the result of inhumane police brutality that is perpetuated by a culture of white supremacy.” The statement includes a four-point action plan for eliminating white supremacy in the U.S. and is accompanied by graphics that read, “We must dismantle white supremacy. Silence is NOT an option.” Over the last 10 days hundreds of companies, sports teams, and celebrities followed suit with posts of their own, many of them nearly identical in their vague phrasing and awkward execution. The social media noise and general lack of real commitment made by marketers, prompted Jeffrey Dunn, CEO of Bolthouse Farms, a vertically integrated farm company specializing in refrigerated beverages, to write the following in a LinkedIn post: “At Bolthouse Farms, we stand in solidarity with the black community and others who have faced social & racial injustice. To honor this, Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics. We hope these conversations can help us come together as a community to find long-term solutions for positive change in this country.”

Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics.

2. Are Companies “Opening their Purses” like Social Media Users Demand?

Social media users are saying “open your purse” to brands and celebrities posting messaging against racism in support of #BlackLivesMatter to demand action, not just words. An example of a company seemingly talking the talk but not walking the walk is L’Oréal Paris who spoke out publicly last Monday in support of the Black Lives Matter movement and received much criticism in the comments of its social post after model Munroe Bergdorf posted about the brand on her Instagram, saying it had dropped her from a 2017 campaign for “speaking out against racism and white supremacy.”

3. Yes, Some Are: P&G, Beauty Brands…

Procter & Gamble announced a new US $5 million contribution to the P&G “Take On Race” fund that will go to support organizations like the NAACP Legal Defense and Education Fund, the YWCA Stand Against Racism and the United Negro College Fund.
In addition, over 60 beauty brands have pledged financial support for organizations including Black Lives Matter, the Minnesota Freedom Fund and the NAACP, according to a growing checklist of brands being compiled by industry watchdog account Estée Laundry. Unilever established a a $100,000 investment fund that will be provided to five activists working toward social change, and many of its brands including Axe, Tazo, Suave, Seventh Generation, Degree and Vaseline have pledged more than $1 million to organizations fighting for racial equality. Luxury makeup brand Glossier and YouTube both pledged $1 million each to related causes.

4. Brands Response to Racism: Donations are Not Enough; This is a Systemic Crisis

Let’s not forget that corporate donations can be more of a symptom of corporate racial injustice than a remedy. There are huge structural issues here. Black and brown Americans are extremely underrepresented in Corporate America; definitely in marketing departments. As Portada has written before, Multicultural and Hispanic Centers of Excellence that don’t have decision making power over budgets, are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic. While thought leaders often claim that corporate diversity drives business benefits, Corporate America has not adjusted; black professionals today hold just 3.2% of executive and senior manager positions and less than 1% of Fortune 500 CEO spots, according to a report from the Center for Talent Innovation called “Being Black in Corporate America.”

Multicultural Centers of Excellence that don’t have decision making power over budgets are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic.

5. Consumers will Vote with Their Wallets …

Consumers can play a crucial role in forcing corporations to really commit to diversity and racial justice. Consumers should increasingly reward companies who really commit to diversity and racial justice by buying their products and services. Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.

Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.

Millennials are already giving cause related factors a lot of weight when making purchasing decisions. Lewis Williams, EVP and Chief Creative Officer at Burrell Communications told Adweek. “that younger generations are “holding brands accountable. … They’re telling brands, you have to do more, you have to change the situation.”

6. Brands Who Recognize New Consumer Power will Benefit

Brands need to incorporate diversity and racial justice to their most important company objectives in order to reflect consumer preferences (see point 6 above).  This requires that company leadership and stakeholders first pause to think; L’Oreal USA  did have to pause and listen from members inside and outside its organization to decide both the multi-cultural division’s and larger company’s response, Erica Culpepper, general manager of multi-cultural beauty at L’Oréal USA, told Glossy. “On Friday, we paused all content that was beauty-specific, or around product or influencers, things that might seem trivial in the larger landscape… but elevating social justice as a company is something that is new for us, but part of our longer-term strategy,” she said. Let’s hope so.

7. Brands Response to Racism: MarTech can Help to Connect with the Consumer at Scale

Appropiately leveraged marketing technologies can help brands get closer to consumers in this time of unrest. “Time, Context, and Location are key to a successful marketing campaign. Given the global pandemic, and the current state of the country, every state and city is experiencing different things at different times. It is critical to talk to each audience differently,” says Oz Etzioni, CEO, of Clinch, an AI powered omnichannel personalization technology platform. According to Etzioni, “Personalization is now an essential. Customers increasingly expect ads to be personalized. Not in a creepy way, but in a way that fits with the way they see the world right now. Brands win audiences by creating connections based on empathy and relevance.” According to Etzioni, “70% of companies that use advanced personalization have already earned 200% ROI or more from it.”

Marketing and media moves at NFL, Meredith, and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.

 

Marketing and Media Moves

The NFL has hired Luis Martínez Wagner as its new Senior Director of Sales and Marketing, reported AdLatina. He previously led marketing at Hasbro Mexico, a company he first joined in 2012.

 

 

 

Meredith Corp has announced that General Electric veteran Jason Frierott will fill the role of Vice President as well as replace Joe Ceryanac as Chief Financial Officer. Frierott will take on his new role on March 9 and report to CEO Tom Harty.

 

 

Thomson Reuters Corp. has announced a number of management changes. Most importantly, former Nielsen Holdings PLC President and Chief Operating Officer Steve Hasker will take on the role of CEO and president. In addition, Mike Eastwood will fill the role of CFO. Both changes are effective March 15.

 

 

 

Automotive aftermarket company Driven Brands, which includes Maaco, Meineke Car Care Centers and Take 5 Oil Change, has named Summer Nunn as its first-ever female CMO. Nunn first arrived at Driven Brands five years ago. She most recently served as Marketing SVP for Take 5 Oil Change.

 

 

 

Teylez Perez is now Vice President of Marketing at Curacao. He first started at the company in 2008, but left in 2017 to fill leading marketing positions at Lionsgate and Hyphen-Studios.

 

 

 

 

Leonor Palao has started a new position as Vice President, Brand at J.P. Morgan Asset Management. She previously filled the role of Assistant Vice President, Brand Marketing and Advertising at OppenheimerFunds.

 

 

 

 

Telemundo 47 / WNJU announced the addition of journalist David Rodriguez to the station’s news team. Rodriguez will co-anchor the 5 PM weekday edition of “Noticiero 47 Telemundo” and also work as a general assignment reporter, regularly appearing on the 11 PM weekday newscasts.

 

 

 

 

Multicultural marketing may be officially dead (or more important than ever), but one thing is certain: smart marketers focus on culture. Three things they know and you should too…

Smart Marketers Keep Culture on the Front Burner
J. Walker Smith, Chief Knowledge Officer, Brand & Marketing, Kantar

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.

Smart Marketers Keep Culture on the Front Burner
Esperanza Teasdale, VP & General Manager, PepsiCo’s Hispanic Business Unit

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. 

 

Kick-Off Facts

need for tech knowledge

  • 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.

Check out the previous Brand Marketer Challenge here: Social Media’s Evolving Role, 4 Opportunities for Travel and Lifestyle Marketers 

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.

If you are interested in joining the Portada Council System, our year-round knowledge sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

Two Tech Knowledge Opportunities identified by Portada Council System Members

1. Agencies Have Often More Cultural Knowledge than MarTech Companies

Related comment: “Firms with no cultural knowledge can affect messaging to multicultural segments. There is a need for cultural identifiers.”

Brands that market ‘in culture’ are more successful. Consultancies are often not able to take this into account.

2. Advertisers Have the Opportunity to Influence Talent Selection

Related comment: “Some clients are more prepared than the agency ‘experts'”

Practical example: A famous multinational company changed to a new agency and made sure to be able to influence payrolls, positions, objectives, etc.

It’s not about tecnology, but about knowledge.

 

If you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

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. 

 

Kick-Off Facts

need for tech knowledge

  • 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.

Check out the previous Brand Marketer Challenge here: Social Media’s Evolving Role, 4 Opportunities for Travel and Lifestyle Marketers 

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.

If you are interested in joining the Portada Council System, our year-round knowledge sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

Two Tech Knowledge Opportunities identified by Portada Council System Members

1. Agencies Have Often More Cultural Knowledge than MarTech Companies

Related comment: “Firms with no cultural knowledge can affect messaging to multicultural segments. There is a need for cultural identifiers.”

Brands that market ‘in culture’ are more successful. Consultancies are often not able to take this into account.

2. Advertisers Have the Opportunity to Influence Talent Selection

Related comment: “Some clients are more prepared than the agency ‘experts'”

Practical example: A famous multinational company changed to a new agency and made sure to be able to influence payrolls, positions, objectives, etc.

It’s not about tecnology, but about knowledge.

 

If you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

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.

Denny’s “See You At Denny’s” Campaign

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

Latido MusicA 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.”

 

Graduated Investment

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.”

 

Check out previous Insider columns

Insider: Snackable Content, Multicultural as Something Organic, Amazon Ad Sales and More…

 

 

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.

 

multicultural marketing moves at K12K12, 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.

 

 

 

 

multicultural marketing moves at Publicis GroupePublicis 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.

 

 

 

 

multicultural marketing moves at AB In-BevBaseball 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.”

 

 

 

 

Bill Abbott, Chief Executive of the Hallmark Channel’s parent company Crown Family Networks, is to exit the business after 11 years. His exit comes shortly after a controversy over the company’s handling of an ad featuring a same-sex couple.​

 

 

 

 

 

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.

 

 

 

 

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.

 

multicultural marketing moves at K12K12, 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.

 

 

 

 

multicultural marketing moves at Publicis GroupePublicis 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.

 

 

 

 

multicultural marketing moves at AB In-BevBaseball 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.”

 

 

 

 

Bill Abbott, Chief Executive of the Hallmark Channel’s parent company Crown Family Networks, is to exit the business after 11 years. His exit comes shortly after a controversy over the company’s handling of an ad featuring a same-sex couple.​

 

 

 

 

 

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.

 

Esperanza Teasdale
Esperanza Teasdale, VP & General Manager, PepsiCo’s Hispanic Business Unit

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.

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

2020 opportunities expertMarketers’ 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

2020 opportunities expertTo 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.”

 

2020 opportunitiesIf you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, please contact us here if you are marketing services supplier and here if you are a brand marketer.

 

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?”