A summary of the most exciting news in multicultural sports marketing. If you’re trying to keep up, consider this your one-stop shop.
ESPNis bringing back ESPN8. “The Ocho” will take the place of ESPN2 on Aug. 8, offering 24 hours of off-beat programming. KFC will sponsor all 24 hours of programming in a series of vignettes that will run throughout the day. Within the lineup will be the 2018 Dodgeball World Cup, the US Open Ultimate Championships, the Spikeball East Tour Series, Major League Eating, the Cornhole: ACL Pro Invitational, and the World Championship of Ping Pong.
Van Heusenhas become UFC’s first-ever “Official Men’s Dress Furnishings Provider,” with UFC bantamweight champion TJ Dillashaw and UFC welterweight contender Stephen Thompson starring in a new commercial highlighting the Van Heusen Flex collection of men’s shirts and pants. The commercial and campaign creative will be placed across national and local cable television, and display ads on select retailer sites. According to a Washington Post poll, 38% of mixed martial arts fans are African-American, and 31% are Hispanics.
OTT DAZN is planning on creating original lifestyle content including documentaries, talk shows and podcasts as part of its international expansion. “In a market like the US where we’re very strong in combat sports rights but don’t have much else, we need original content,” said DAZN chief executive James Rushton, to Digiday. “Part of our challenge is, we have to turn these boxers back into superstars.” The platform is set to launch in September with only boxing and martial arts rights and will be supplementing that coverage with an original daily news show offering an inside look at what fighters get up to outside the ring.
Boxing promotion company Top Rank signed a new seven-year partnership with ESPN. As part of the deal, ESPN will provide live coverage of 54 boxing events per year, as well as delivering previews and post-fight analysis programmes, archive and studio content and new shows.
UFC confirmed its first-ever event in Beijing, China, taking place at the Cadillac Arena on Nov. 24. “China is the next frontier for the growth of UFC and the sport of mixed martial arts, and this market is paramount to our success internationally,” UFC Vice President of Asia-Pacific Kevin Chang said. UFC will be working together with Endeavor China to deliver the live event.
Clemson University locked in a 10-year contract extension with Nike, that will run through the 2027-28 academic year and grant the athletic department more than $58 million in apparel allowances, direct cash payouts, and royalties. “Nike is one of the premier brands in the world and we’re excited to build upon our relationship,” said Dan Radakovich, Director of Athletics, Clemson University.
FedEx expanded its partnership with the NBA’s Memphis Grizzlies to become the franchise’s first-ever jersey sponsor. The FedEx logo will be integrated into the team’s newly designed Nike uniforms for the 2018/19 season.
Major League Baseball and ESPN announced that the 2018 MLB Postseason will begin exclusively on ESPN on Oct. 2. The National League Wild Card Game presented by Hankook will also be available on ESPN Radio, ESPN Deportes, ESPN Deportes Radio and the ESPN App. 31% of MLB players are Latino, according to ESPN.
UFC signed a multi-year marketing partnership with meal delivery service Trifecta Nutrition. The agreement represents a brand-new sponsorship category for UFC. In return, Trifecta will have a branded presence at the UFC Performance Institute and an activation presence at UFC’s live events. Trifecta will use UFC branding to create custom delivery boxes and to promote national sweepstakes for UFC events.
What: Francisco Lindor’s All-Star Game appearance in Washington, D.C. helped enhance his status as one of the league’s rising stars on and off the field. Why it matters: A crossover standout like Lindor, who has appeal not just to Latinos but to a wide variety of fans, can be what baseball needs as it struggles to market outside of die-hard fans, to younger audiences.
There he was in the midst of the biggest night of stars for Major League Baseball (@MLB) in the summer of 2018, shining as bright as a personality as anyone else and then some. The Cleveland Indians’ Francisco Lindor (@Lindor12BC), a young, athletic, multilingual personable star, chatting up Joe Buck (@Buck) and crew on the FOX Broadcast from his spot at shortstop, live in the midst of the All-Star Game (@AllStarGame) in Washington as play was developing all around him.
Not only was he answering questions and giving fans a true “look-see” into the goings on on the field, Lindor was chatting up players around him in English one minute, Spanish the next, with the ease of a talk show host. He also didn’t miss a beat as he tracked down a short 7th inning popup in left field, still conversing with the guys in the booth as the inning ended. At a time when some are questioning the marketability of a young generation of stars, the 24-year-old Puerto Rican seems to be ready to assume the mantle not just for Latino fans, but for all of America as the Tribe (@Indians) make their play in the season’s second half and beyond.
…in a time when many are questioning the lack of marketing effort put forth around some of MLB’s brightest stars, the Puerto Rico native might be ready for a big next step.
The smooth conversation during the national broadcast wasn’t the first time even that day that Lindor let his personality do the talking. He arrived for the MLB red carpet sporting a stylish backpack and hat, with skinny jeans and no socks, as comfortable with the cameras as he is on the diamond. “His sense of calm and style is impeccable,” said La Vida Baseball (@LaVidaBaseball) Editor In Chief Adrian Burgos. “If Prince came back as a ballplayer, he would be Lindor; he epitomizes cool.”
Cool is anything the 24-year-old now Floridian has been on the field again this year, ranking among American League leaders in everything from runs (first as of 7/25) to home runs (5th) to WAR (4th). His brand value is also sizzling.
According to opendorse (@opendorse), the leading platform for pairing athletes of all backgrounds with brands using social media metrics, the man known as “Mr. Smile” has amassed over 84,000 new followers on Instagram since Opening Day, seventh among all active MLB players in growth since the season started. He is also 5th overall amongst Latino stars and gaining fast, trailing only Giancarlo Stanton, Manny Machado, Jose Altuve and Javier Baez.
That on and off appeal hasn’t gone unnoticed in a world well outside Cleveland now. When LeBron James exited Ohio for the L.A. Lakers earlier this month, New Balance (@newbalance), which made Lindor their global ambassador for baseball, started lobbying that James’ massive downtown billboard be replaced by one of Lindor. The campaign itself fit well into his rise on the field, and was amplified by the national stage last week in Washington, where media big and small suddenly saw star power on the rise. Other brands, like Pepsi, Taco Bell, Lids, and Franklin have started to hitch their ride on Lindor’s growth, and in a time when many are questioning the lack of marketing effort put forth around some of MLB’s brightest stars, the Puerto Rico native might be ready for a big next step.
“Francisco has a rare mix of being comfortable around both the English and Spanish speaking fans, partially because he came to the mainland U.S. at such a young age and grew up in baseball in a multilingual and multicultural environment,” Burgos, who has followed Lindor throughout his career, added. “Cleveland might not be L.A., but his personality and performance will transcend that city, and he is a great fit for what baseball needs: a young, savvy, telegenic crossover star, it’s very exciting to see his potential playing through.”
Now that potential still has a ways to go, both on the field and off. To effectively rise above Ohio and find his way to Madison Avenue consistently, the Indians need to stay in the competitive mix. A healthy season, combined with a vibrant personality for a sport that is working to grow telegenic, multicultural stars is a marriage that sells, and sell Lindor can do.
For brands, for baseball, to the growingly engaged and business savvy Latino audience, and most importantly, to mainstream America, Francisco Lindor is raising the bar. A new star shown brightly in the Nation’s Capital, now it seems ready to take its place in a bright multicultural constellation.
Portada wants to reward the best in multicultural sports and soccer marketing, which is why it has created three awards highlighting the best of the best in three different categories. The winners will be announced on September 25 at Portada NY, and they will be chosen by a jury composed of Portada’s Sports Marketing Board. Check out the categories and submit your nomination below, creativity counts!
GRASSROOTS MULTICULTURAL FAN ENGAGEMENT BY A TEAM, PROPERTY OR LEAGUE
Description: Tell us who has done the best in the past year to engage a multicultural audience that expanded.. Who were the stakeholders, what were the goals, what media did you use, what was the target audience and how did it go beyond the game. Creativity counts…and it does not have to be limited to Spanish!
Criteria: Please provide a timeline, rough budget spent (not for publication), key participants in the program or programs. applicants can submit a maximum of three programs, although only one per organization will be selected as a finalist.
BEST MULTICULTURAL ENGAGEMENT ACTIVATION BY A BRAND WITH A TEAM OR LEAGUE
Description: What brand has done the most to work with a team, league or a property to grow and engage in the space of the multicultural sports business?
Criteria: Describe the length, the goal and the ROI of the program, along with the approximate budget. Brands can submit multiple programs that were targeted to individual athletes, teams, or leagues as well.
Description: Soccer is growing every day in North America; what team, league, network, or brand is doing it the best and why, from MLS to European Leagues to World Cup. (Not limited to MLS or to multicultural).
Criteria: Briefly tell the story of what you are doing to grow soccer, from cause related programs to promotional campaigns; provide the strategy, the methods and the expected ROI.
What: Seven in 10 of the 58 million U.S. Hispanics now use a smartphone, and more are bypassing desktop and laptop computers completely in favor of tablets and mobile. Why It Matters: With some help from their expertise in Hispanic mobile behavior, mobile ad network Adsmovil topped the latest comScore Mobile Metrix® in both the Hispanic Mobile and Total Mobile Audience reach categories. Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly? And what does a Hispanic adnetwork’s continued success with total audiences say about the key role that Multicultural plays in any mobile campaign’s success?
Since 2000, Hispanics have accounted for more than half of the population growth in the United States: According to the Pew Research Center, the number of Hispanics in the country reached 58 million in 2016. And with seven in 10 U.S. Hispanics now using a smartphone, this means that advertisers hoping to win in the United States must prioritize reaching this dynamic and tech-savvy demographic.
More and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s walled gardens.
“Taking into account that Hispanics are heavy mobile users and even use their mobile devices as their primary access to the internet, we always include mobile in all our communication strategies. In fact, we always recommend clients having a mobile-first approach when implementing any digital campaign,” Gonzalo del Fa, President of GroupM Multicultural (photo)asserted.
With this in mind, ad network Adsmovil launched Programmatic Mobile Hispanic solutions in 2015. In recent years, the network has become a leader in Hispanic targeting, coming up with award-winning programmatic creative and location-based targeting initiatives informed by a thorough understanding of their clients’ targets. And now, October 2017 data from ComScore has Adsmovil coming in at the top of the lists of Total Internet and U.S. Hispanic reach for Mobile:
Mobile Metrix Key Measures
Total Unique Visitors(000)
Total Internet(total audience: Mobile)
Adsmovil Network-Potential Reach
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
H Code Media
SOURCE: U.S. Hispanics Mobile Only, Comscore, October 2017.
Total Unique Visitors(000)
Total Internet: Hispanic All: (Mobile…)
Adsmovil Network-Potential Reach
H Code Media
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
SOURCE: Total Audience Mobile Only, Comscore, October, 2017.
The voices demanding alternatives to the “duopoly” of Facebook and Google are growing louder, suggesting that Adsmovil could emerge as a leader at just the right time. While Google and Facebook took over 77% of the US$12 billion-dollar increase in global online ad spend in 2017, more and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s “walled gardens.”
AdsMovil Credits Success to Unique Understanding of Hispanic Behavior
In today’s landscape, marketers are being forced to reckon with the fact that consumers cannot be reduced to simple profiles determined by gender, age, and ethnicity. AdsMovil’s targeting solutions are focused on helping advertisers reach Hispanic users, looking at mobile users through an ethnographic lens that identifies specific Hispanic audiences according to the following factors: generation, acculturation, language and country of origin.
Hispanics’ acculturation levels lead to different attitudes toward language: those that are acculturated were typically born in the United States, prefer to speak in English, and can “toggle between Latino and American culture.” They are typically tech-savvy and have at least a high school education. Non-Acculturated Hispanics may or may not have been born in the United States, may have immigrated recently and typically hold a high school degree or less.
The benefits of understanding and appreciating these drivers of Hispanic mobile behavior make all the difference, pushing Hispanic marketing shops like Adsmovil at the top of Total Audience measurement on comScore’s Mobile Metrix in October 2017.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic. “Mexicans have different taste and buying habits than Dominicans or Argentinians. Adsmovil helps you deliver more effective media because we realize the differences and can target more appropriately. As a result, you will have better-performing campaigns,” said, Adriana Daantje, Global Product Director at Adsmovil.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.
Acculturation, Generation, Language, Country of Origin Key Factors in Determining Hispanic Behavior
In focusing on factors like acculturation, generation, language, and country of origin, Adsmovil can create targeted solutions for profiles of users with very distinct behavioral patterns: For example, non-acculturated Latinos are less comfortable using technology and slower to adopt new devices and functions, tend to use older mobile devices, and often have their browsers set in the Spanish language. They also consume more Spanish-language content, often from their countries of origin.
Mobile use among US Hispanics also varies greatly based on generation, as first-generation Hispanics are not only more likely to speak Spanish, but also more likely to look for online content in-language, and to browse ethnically relevant news, entertainment and food content. Hispanic Millennials, on the other hand, care more actively about technology and “want to stand out and be noticed,” according to Adsmovil. While they incorporate many Hispanic music, family, and culinary traditions, they are more open-minded than older Hispanic Americans, and tend to evolve with the rest of the younger Millennial Americans in terms of political and cultural beliefs and practices.
Adsmovil’s key differentiator is how it builds and identifies audiences within the Hispanic community based on the content that Hispanics consume (language, keywords, context), instead of relying solely on targeting via location, app install or purchasing history. It has direct relationships and preferred access to Hispanic premium publishers offering qualifying traffic, and offers 100% SOV, and sponsorship and content integration opportunities with exclusively Hispanic publishers.
What: We caught up with industry pioneer Rochelle Newman-Carrasco of Walton Isaacson at the ANA Multicultural Conference and asked her a few questions about the growing momentum of The Alliance of Multicultural Marketing (AIMM). Why It Matters: Carrasco shared insight from the founding members of AIMM in order to provide a range of perspectives on areas of importance to the industry.
In October 2016, the Association for National Advertisers took an important step in encouraging the industry’s progress when it established the Alliance for Inclusive and Multicultural Marketing to establish a “powerful, unified voice for the advancement of multicultural marketing.” A year later, the group is working cooperatively, transparently, and methodically to set the groundworks for a marketing industry that better reflects today’s diverse audiences.
Industry Must ‘Separate Excuses from Legitimate Concerns’
When the AIMM met in August 2017, it was stated that accessibility, accuracy, and affordability of multicultural-specific data were some of the most significant obstacles in developing effective strategies for advancing Multicultural. But what strategies are in place to tackle these challenges?
Carlos Santiago, President of Santiago Solutions Group explained: “The Alliance is identifying issues that are standing in the way of progress and then bringing unified industry clout to the table in order to change supplier behavior insofar as diverse consumer groups are concerned.”
There is a tendency (perhaps due to lack of access effective data) to make excuses when it comes to Multicultural, and “the key is spending the necessary time to separate excuses from legitimate concerns – having zero tolerance for cop-outs like ‘it’s too hard’ or ‘it’s too expensive,’” Santiago added.
Santiago explained that the “siloed approach to problem solving” may not work as well as “having diversity of thought come up with innovative solutions,” which is why the Metrics and Measurement Committee, led by Gonzalo del Fa of Group M Multicultural (who is also a Portada Editorial Board member), has “laid out a really robust plan of action, and [the group is] moving into a very exciting stage of implementation that will include a Multicultural Data Roundtable.”
‘It’s No Longer Possible to Keep this Failure Hidden’
This is not the first time that marketers have sounded the alarm and expressed how urgent this Multicultural crisis is. So what’s different this time?
Rochelle Newman-Carrasco,EVP at Walton Isaacson, insisted that “it’s no longer possible to keep this failure hidden, especially from internal and external stakeholders for whom ‘multicultural’ is more than a department.”
Failing to reach and connect with Multicultural audiences has real implications for all serious brands in today’s world, and “for many consumers and employees, multicultural matters are life and death matters — matters of image and identity that can inspire or alienate generations to come,” Carrasco said.
‘Whole Communities of Consumers Are Missing or Minimized’
Perhaps one of the first steps in making real progress is holding brands accountable for their lack of effort. Carrasco explained that “poor performance is directly related to segment-specific neglect, whole communities of consumers are missing or minimized throughout the marketing cycle—missing from staffing, budgeting, and creative representation.”
Poor performance is directly related to segment-specific neglect, and whole communities of consumers are missing or minimized throughout the marketing cycle—missing from staffing, budgeting, and creative representation.
While some more visionary brands are stepping up to make their Multicultural efforts more than a symbolic gesture, “other brands are having their course corrected by consumers who will no longer accept failure at their expense,” Carrasco insisted. “Marketers must understand that culturally-specific marketing is not just a theoretical exercise or something to track in the P&L or on a spreadsheet.”
Brands ‘Discovering Ways to Balance the Benefits of Collaboration with Restrictive Guardrails’
While sharing Best Practices and lessons learned from experiments in Multicultural are key if the industry as a whole is to progress, “certainly there is a natural reticence to share proprietary details” said Lisette Arsuaga, Co-President and COO of Davila Multicultural Insights. But she emphasized that this is changing, and that “brands are discovering ways to balance the benefits of collaboration with restrictive guardrails.”
What do brands get out of sharing and collaborating? “Participation in an exchange that triggers discovery and progress in ways that hunkering down and walling off a brand do not,” Arsuaga said.
Within the framework of AIMM, we see brands seizing opportunities to enter into dialogue with one another and to offer up their processes while taking in the learnings of others.
“Within the framework of AIMM, we see brands seizing opportunities to enter into dialogue with one another and to offer up their processes while taking in the learnings of others.”
Arsuaga also added that making a unified effort to bring in new, diverse talent is key: “Multicultural cannot reach its full potential without filling a pipeline with new talent and joining together to do so.”
The ‘Total Market’ Problem
After the August meeting, Carrasco of Walton Isaacson asserted that the AIMM was exploring the effectiveness of the term ‘Total Market,’ saying that “while the Total Market Committee has not yet repealed and replaced the phrase ‘Total Market,’ there is data to support that its usage, and often random application, has hindered rather than helped marketers to powerfully connect with multicultural communities.” Since then, AIMM’s Total Market Committee, led by David Cardona of Clorox and Javier Delgado of Coca-Cola, has dedicated a significant amount of effort to reaching a definitive conclusion on how well ‘Total Market’ works for the industry, launching a campaign called #TotalMarketDoneRight.
Gilbert Davila, Chair, ANA Multicultural Marketing and Diversity Committee asserted that “AIMM’s aim is to shatter myths and address the many misinterpretations that have occurred since this concept was introduced several years ago.”
Davila explained that “Total Market was intended to level the playing field and bring multicultural marketers to the mainstream marketing table where they rightly belonged…Instead, the concept became a convenient excuse for eliminating resources and budgetary line items in the name of efficiencies.”
While Total Market was supposed to address the “absence of multicultural consumers in what is often referred to as ‘mainstream’ marketing, it was not intended to eliminate culturally targeted marketing nor was it meant to make cultural specialists irrelevant,” Davila clarified.
‘If You’re Not Reflecting Diverse Audiences You’re Rejecting Diverse Audiences’
Where will the AIMM go from here? While Davila reinforced that “AIMM is laser-focused on bringing back the integrity of marketing that is both universal and unique,” the renewed and refreshed commitment to this topic will require concrete actions that the group is ready to spearhead.
Marketers create messages that impact the mirror we hold up to America and the world – if you’re not reflecting diverse audiences you’re rejecting diverse audiences and that’s not solved with casting, it’s only solved with clarity and commitment.
Santiago of Santiago Solutions Group described the AIMM’s approach as “going down a path of disruption and innovation and avoiding the well-worn traditional approaches to quick but unremarkable fixes.”
The intent is there, but hopefully action will follow. “Marketers create messages that impact the mirror we hold up to America and the world – if you’re not reflecting diverse audiences you’re rejecting diverse audiences and that’s not solved with casting, it’s only solved with clarity and commitment,” Carrasco emphasized.
What:GoDiversity, an independent, minority-owned multicultural advertising agency recently announced the release of a Dreamers emojiand social media badge. Why It Matters: GoDiversity CEO Humberto Freydell argued that while many agencies hesitate to take sides in political debates, in the case of the Dreamers, the issue “transcends politics” and is about “humanity and compassion.”
Last week, Multicultural advertising agency GoDiversity announced the release of a Dreamers emoji and social media badge, created by the agency to show support for the hundreds of thousands of people in the U.S. affected by the DACA program and DREAM Act, known as “Dreamers.”
The emoji features a character wrapped in an American flag and is part of the agency’s #DreamersWeAreWithYou campaign.
Created in 2012, DACA, or the Deferred Action for Childhood Arrivals program, allowed people who came to the United States illegally as children to obtain legal work permits and a renewable two-year protection from deportation. The Trump administration rescinded the program in September.
Social Activism in the Era of Trump: Emojis and Hashtags Take On New Meaning
The Trump administration is certainly no stranger to controversy, but the decision to end the DACA program was met with particular anger from those who saw the move as an attack on innocent victims: young men and women who had been brought to the United States illegally as children by their parents.
Why an emoji? Humberto Freydell, CEO of GoDiversity, compared emojis to international traffic symbols: “They’re understandable no matter what language you speak.” A product of the digital age, emojis can certainly pack a punch, transmitting more than words and conveying messages that transcend language. “I wanted to find a universally-recognized ‘vehicle’ to carry a message which I think is extremely important, especially in these polarizing times,” Freydell added. “I wanted to find a universally-recognized ‘vehicle’ to carry a message which I think is extremely important, especially in these polarizing times.”
The idea is for the emoji to empower its users in a way that is “easy to use and understand, and non-offensive by its very nature.
Emojis have become useful tools for people that have a hard time finding the words to communicate emotions or messages, and in that sense, Freydell said that he believes that “it could be useful for many people and groups, beginning with any that may be seen as ‘persecuted’ or in need of public support.”
Dreamers Emoji A ‘Call to Action’
For now, the emoji is available for download on the website that the agency put together for this campaign. In addition, visitors to the site will find social media badges and cover photos available for free download. Together, these elements are meant to empower Dreamers and those who support them to not only speak up but also “effect real change” through acts like contacting their local officials.
It doesn’t hurt that GoDiversity knows a thing or two about delivering effective messaging, either: “We are studying other ways we can leverage our expertise in social media and public relations to help raise awareness of this cause,” Freydell said.
‘How Can You Not Take A Stand?’
Traditionally, privately owned brands and firms have hesitated to take sides in political controversies. But there’s nothing traditional about the Trump administration, and there is something about the Dreamers that seems to transcend politics.
When asked if he hesitated to speak up about President Trump’s action on DACA, Freydell did not hesitate. “Our first instinct was, how can you not take a stand on an issue as clear-cut as this?” He continued: “It really goes beyond politics; it’s about humanity and compassion.” Freydell added that while there are usually two sides to the issues that divide Americans, “when one comes along where the ‘right’ side seems so clear, it’s like a gift.”
Our first instinct was, how can you not take a stand on an issue as clear-cut as this?
Not all agencies agree with Freydell. But his argument raises an important question: Do agencies that claim to specialize in multicultural marketing have a moral obligation to support populations like the Dreamers? Freydell went as far as to say that agencies’ reactions reveal a great deal about their priorities: “Many of these organizations only see diversity markets as a piece of the overall pie, perhaps even as low-hanging fruit…they are not necessarily interested in supporting, educating or empowering those in these markets.”
While many organizations worry that taking sides could cost them business through alienating clients in “non-diversity” markets, Freydell made it clear that GoDiversity does not share the same fear: “This is in clear contrast to our mission, which is, essentially, to help clients who share our values to reach the multicultural markets in which we do so much of our work.”
Feedback Has Been ‘Positive, Supportive and Encouraging’
Since the release of the emoji last week, feedback has been “positive, supportive and encouraging, both from the media and from the general public,” Freydell claimed. While public statements like this are bound to generate controversy, the strongest reaction, Freydell said, came from a man who objected to the fact that the emoji showed the character wrapped in the American flag.
“We very much respect his opinion,” Freydell clarified, “and would only respond that perhaps we see the flag as more of a symbol of inclusion than he does, whereas he might see it more as something else.”
Throughout all of the amazing presentations at #Portada17, one key question was brought up time and time again: As a marketer, how do we market ourselves? Is “Hispanic”-targeted marketing dying, and if so, how do we justify our jobs?
In the face of shrinking budgets and resources, it is more important than ever to be able to present the hard data and business opportunities behind Hispanic and multicultural marketing to your business partners as well as your own boss and co-workers. But it’s not usually the money itself that’s a problem—social media campaigns, for example, can be successful at any budget—but, instead, education.
The general perception amongst the #Portada17 crowd is that the “Hispanic” segment will only disappear in one of two ways: 1) nuclear war, and 2) when the “general market” becomes the Hispanic market. The idea that we don’t need to pay attention to Hispanics, or that they aren’t important to the growth of our brands, is dangerous to your bottom line.
The general perception amongst the #Portada17 crowd is that the “Hispanic” segment will only disappear in one of two ways: 1) nuclear war, and 2) when the “general market” becomes the Hispanic market.
According to the industry leaders at #Portada17, the same cultural values that resonate with Hispanics in bi- and multicultural marketing efforts also work to feed into and boost general market campaign results. The multicultural consumer is “part of your brand and part of the growth of it,” even for very “traditional American” brands if you do it right, according to Margie Bravo, Multicultural Marketing Manager, Nestlé USA.
Some of the best campaigns are those that resonate with Hispanic audiences without isolating others. The gold standard? Campaigns that welcome African-American, Asian, and other non-Hispanics (including the increasingly diverse “white America”) into the conversation. In a panel, Seraj Bharwani, Chief Strategy Officer at AcuityAds, mentioned one Hispanic-oriented ad that resonated with him because of the strong ties it showed between parents and their adult children who stayed close to home—a unique relationship that also exists in Indian (and, increasingly, Millennial) culture.
Setting aside the debate over total marketing, an integrated approach recognizes the rapidly shifting demographics of the U.S. Half of Millennials don’t fit in neatly to the traditional conception of the “general market”—that is, non-Hispanics. But as our panelists stressed, in order for total marketing to work, it must be done right.
Education is Key
Although Comcast is incredibly supporting of multicultural marketing efforts, earlier in her career, Marie Casimir Fallon, Director of Media Strategy & Planning at Comcast Cable Corporation, had to face pushback. To help resolve the issue, she helped develop an educational curriculum that broke down the numbers behind her ideas and showed why they worked.
To help resolve the issue, she helped develop an educational curriculum that broke down the numbers behind her ideas and showed why they worked.
One audience member asked during a panel about the “perfect curriculum” to use in teaching others about Hispanic marketing. Although it elicited a few chuckles, the question itself is on-point. In order to gain the support of your company, you need to teach them why what you do is critical. Once you have that, you’re free to “break the rules, and take a chance to make an exciting marketing plan” in the words of Joi Tyrell, the SVP Director of Campbell Ewald/Sociedad.
Today at Comcast, every employee goes through training that teaches them about the demographics of their consumers (including Hispanics), where sales are coming from (both on a demographic and regional level), and where sales can grow. The company’s proprietary software even breaks down how many Hispanics, African Americans, Asians, and other groups the company should have as consumers in any given area and for every given product.
But as Fallon pointed out, you don’t need to have this kind of expensive in-house technology to do a good job—you can work with the kinds of knowledgeable partners and agents you’ve met at #Portada17 who have these tools and can challenge you to do better.
you don’t need expensive in-house technology to do a good job—you can work with the kinds of knowledgeable partners and agents you’ve met at #Portada17 who have these tools and can challenge you to do better.
Another successful businesswoman pointed to the secret of her success as “turning off the crazy Latina … you can do that at home.” Although it feels like a small tragedy, the fact is that in order to convince a skeptical C-suite of the importance of Hispanic-oriented marketing, we have to speak their language.
Just like a campaign targeting Hispanics is stronger if the messaging is in Spanish (and takes account of the nuances of the language and culture), management responds to numbers. Don’t pitch your plan as “the right thing to do,” advised another speaker. But even the most mono-cultural C-suite will understand the bottom line (and if they don’t, that’s just bad business).
The key is to anchor yourself in hard data and become a teacher.
The key is to anchor yourself in hard data and become a teacher. Essentially, that’s what marketing is all about, isn’t it? Everything you do has to be driven by accurate market, consumer, and sales research. Otherwise, you and your team are walking blind. If you don’t know where you’re going, how can they, or anyone else, follow you?
Peter P. Snitzer Jr., CEO at Conffianz, explains how social media is helping the beauty company grow, during Portada’s 11th Annual Multicultural Advertising and Media Conference.
On September 14, Peter P. Snitzer Jr., CEO, Conffianz participated on the Multicultural Shoppers panel, where he explained how the Latina consumer is practically why their beauty brand exists. “We are all about empowering Latinas,” said Snitzer Jr. during an interview.
We are all about empowering Latinas.
Given that Conffianz’ target is older women, the company has been using traditional outlets like TV as their marketing platforms. But, as Snitzer Jr. explains, Facebook has also become a great tool. Recently, the brand launched a campaign that had user-generated content. “We had a fantastic result. You really can’t compete with user-generated testimonials,” he explained.
We had a fantastic result. You really can’t compete with user-generated testimonials.
In addition, Conffianz has been working with some business partners to grow both the brand and their commitment to the Latino community. To find out who these allies are, watch the full interview below.
Margie Bravo, Multicultural Marketing Manager at Nestlé USA, explained during Portada’s 11th Annual Multicultural Advertising and Media Conference, on September 14, how brands need to embrace the multicultural consumer and understand how it is their responsibility to grow their brands organically.
During the The Future of Multicultural Marketing panel, Margie Bravo, Multicultural Marketing Manager at Nestlé USA, presented how the Swiss multinational is currently implementing sweeping changes to its marketing organization by incorporating multicultural insights into its marketing strategy, media, and budgeting for its billion dollar brands.
You really need to understand the consumer, and understand how multicultural consumers are part of your brand and part of the growth of it.
When talking to her, she explained how today growth is everything to the company, and how relevant the multicultural market is for that growth. As a brand, “you really need to understand the consumer, and understand how multicultural consumers are part of your brand and part of the growth of it.”
This is why every brand should include them in its marketing strategy. To do so, she continued, your best tool is analytics. “People don’t really understand where sales are coming from, and how each market makes you grow.”
People don’t really understand where sales are coming from, and how each market makes you grow.
Put short. She advises to “go for more because this [multicultural] market has a lot to give.”
Thanks to all who joined us for a phenomenal #Portada17. If you remember nothing else, here are the top three things you need to take away.
The first, and a line that earned much applause during a session: “If you’re not passionate about the Hispanic marketplace, leave.” Our jobs can be difficult, but they are also dynamic, insightful, and rewarding. If you’re prepared, here are the rest:
Narrow Focus, Big Impact
When building a campaign, leaders never assume. They analyze detailed consumer research (down to the zip code!), identify demographic data, and are open to realizing new passion points. They develop a single centralized brand message that resonates throughout everything they build. And they aren’t scared to take a chance. It’s a symphony where everyone collaborates and nuances are celebrated.
That doesn’t mean you need a multi-million dollar budget. Seek out partners that are good at what they do, efficient, and make sure that the conversation between your companies is open and transparent. Just like a vertical model won’t have the full impact that a multimedia one will, isolating individual efforts also becomes counter-productive. Having multiple agencies at the table creates a small, but healthy, tension that challenges and inspires us to go beyond the norm and build a truly innovative campaign.
Having multiple agencies at the table creates a small, but healthy, tension that challenges and inspires us to go beyond the norm and build a truly innovative campaign.
Focus on targeting the Hispanic consumer specifically, and don’t just translate general market efforts word-for-word. Over 80 million people identify as Hispanic in the U.S., and half of Millennials are not white. Successful campaigns leverage unique, data-backed Hispanic insights into their overall brand messaging to feed into and grow general market efforts.
Grassroots efforts are some of the most authentic ways to target consumers’ passion points. But we can’t simply copy-paste one local campaign to another area. U.S. Hispanics are a diverse group in and of themselves, and one of the best practices when conducting market research is to conduct multiple focus groups in different cities. Hispanics in Miami, New York, and Los Angeles all have different consumption, buying, and media habits (and it’s not always because of their national origin).
Grassroots efforts are some of the most authentic ways to target consumers’ passion points.
The Year of Soccer
The 2018 World Cup is THE chance to cash in on all your previous soccer marketing efforts. Brands must continue to stay relevant and meaningful to consumers in a limited time frame, and last year’s campaign won’t cut it.
The 2018 World Cup is THE chance to cash in on all your previous soccer marketing efforts.
Digital and mobile consumption of the games is expected to increase next year, so fans will partake in events as they happen, on multiple screens. In addition to the time difference, we must be mindful of the space a brand occupies and that placement is as organic as possible.
At the end of the day, fans don’t necessarily care if their team wins or loses. The most important thing is the experience of being part of the game. When a brand becomes part of that experience too, we’ve done our job.
Some companies describe their efforts around sporting events as akin to becoming a media publisher. They anticipate the events of the day and potential moments where they can critically engage fans—a record beat, a brilliant goal, a last-ditch play. The strongest impact comes when we think on our feet and react with fans, like a fan. The brand not only becomes part of the conversation but can even lead it.
Some companies describe their efforts around sporting events as akin to becoming a media publisher.
To do this well, companies need to come prepared with a developed campaign, content, and brand messaging backed by market research. As in all things.
What: San Francisco ad tech company RhythmOne LLC has acquiredRedwood City-based YuMe Inc. in a cash and stock deal valued at about $185 million. Why It Matters: Through YuMe, Rhythm One “gains access to premium video supply including emerging, high-value connected TV inventory, unique customer insights, cross-screen targeting technology and established demand relationships.”
San Francisco ad tech company RhythmOne LLC has acquired Redwood City-based YuMe Inc. in a cash and stock deal valued at about $185 million.
RhythmOne changed its name from blinkx earlier in 2017 when it named Ted Hastingsas its CEO. Speaking confidently about the added value that the acquisition will bring, Hastings said:“We believe this combination will give RhythmOne the resources, relationships, and talent to drive value for its shareholders, and true a return on investment.”
Through YuMe, RhythmOne Gains Access to Premium Video Supply
In a market increasingly driven by online video, this deal is significant in the sense that “through YuMe, RhythmOne gains access to premium video supply including emerging, high-value connected TV inventory, unique customer insights, cross-screen targeting technology and established demand relationships,” said Hastings.
Jorg Nowak, SVP International at YuMe, took it a step further, saying: “I believe the online advertising market is ready for a comprehensive, independent advertising technology, and our combined company will be well-positioned to lead the market.” He also pointed to the fact that the two ventures are “near perfect complements to one another,” pointing to YuMe’s strong relationships with agencies and brands and its demand side platform, which “align well with RhythmOne’s unified programmatic platform and sizeable supply-side footprint.”
Acquisition Will Facilitate Better Multicultural Targeting
Nowak signaled that the acquisition will enable better Multicultural targeting within the United States thanks to the fact that “RhythmOne will bring us greater access to a massive supply of brand-safe inventory.”
He also pointed out that RhythmOne’s analytics and data management platform “include a unified, proprietary data set that will enhance our own data and audience targeting toolbox to allow us to reach multicultural audiences with precision and scale.”
While Nowak asserted that the acquisition will not affect YuMe’s strategy for LatAm, he did say that he envisioned “the value that we can offer LatAm based advertisers and publishers increasing exponentially.”
What: WPP has made a strategic investment in 88rising, a US-based producer of digital content catering to the Asian millennial market. Why it matters: The investment completes WPP’s other multicultural investment in companies such as Woven Digital, which creates content for the millennial male market in the US, and Mitú, the digital media company focused on developing content for Latino youth.
WPP announced that it has made a strategic investment in 88rising, Inc. (“88rising”), a US-based producer of digital content catering to the Asian millennial market. Terms of the investment were not disclosed.
88rising has branded and sponsored content deals with companies such as adidas, Maybelline and Revolve, an online fashion and cosmetics retailer. It employs approximately 15 people. It is based in New York with an office in Los Angeles, with plans to open an office in Shanghai. It was founded in 2015.
88rising is a multi-platform digital media company that focuses on content about Asia and Asian culture. To date, 88rising has produced over 500 hours of original content that has generated over 80 million total video views on Facebook and YouTube. More than half of 88rising’s 16-34-year-old viewers are in the Asia Pacific region.
The investment continues WPP’s strategy of focusing on three key areas that differentiate the Group’s offering to clients: technology, data and content. The Group has invested in multiple specialized digital content companies like Russell Simmons’ All Def Digital, a leader in producing and distributing music and digital content for the important-to-reach, urban-centric youth culture, and Refinery29, a fashion and lifestyle media company that provides content, shopping solutions and social networking opportunities in the fashion, shopping and beauty categories targeted towards millennial women.
WPP has also invested in Woven Digital, which creates content for the millennial male market in the US, and Mitú, the digital media company focused on developing content for Latino youth in the US and worldwide. The Group has also strategic investments in Fullscreen, Indigenous Media, Imagina (a content rights and media company based in Spain), MRC and VICE.
WPP’s digital assets also include companies such as Acceleration (marketing technology consultancy), Cognifide (content management technology), Conexance (data cooperative), Salmon (e-commerce), and Hogarth (digital production technology). WPP also has investments in innovative technology services companies such as Globant and Mutual Mobile, as well as ad technology companies such as AppNexus, comScore (data investment management), Domo, mySupermarket, Percolate and ScrollMotion.
WPP’s roster of wholly owned digital agencies include AKQA, Blue State Digital, Essence, F.biz, Mirum, POSSIBLE, Triad Retail Media, VML and Wunderman.
WPP’s digital revenues were over US$7.5 billion in 2016, representing 39% of the Group’s total revenues of US$19.4 billion. WPP has set a target of 40-45% of revenue to be derived from digital in the next four to five years. In North America, WPP companies (including associates) collectively generate revenues of US$7.5 billion and employ almost 29,000 people.
What: A recent Nielsen study found that ads delivered in Spanish outperform campaigns aimed at the general public in terms of ROI. Why It Matters: Hispanics represent a huge opportunity for marketers with 57 million people adding up to $1.3 trillion in spending power. But with such large numbers comes complexity, and a struggle to form a complete picture of Hispanic consumers.
In a recent report, Nielsen shed light on the Hispanic consumer, sharing that about 83 percent of U.S. adults in Hispanic TV households speak some level of Spanish in the home, with 27 percent speaking only Spanish and 57 percent speaking both languages. The audience measurement firm also found that ads delivered in Spanish outperform campaigns aimed at the general public in terms of ROI:54 percent of Spanish language TV campaigns perform in line with or ahead of English language campaigns.
While it would be misleading to view the general public and Hispanic Americans through the same lens, the report was encouraging for those looking for effective ways to engage Hispanic consumers and reinforced many marketers’ argument that investing in Hispanic consumer targeting is smart. But it’s only smart if it comes with a commitment to understanding the cultural nuances that shape Hispanic behavior.
‘Right to Win’ Key to Higher ROI
In the study, Nielsen compared the returns on investment (ROI) from a wide variety of brands’ Spanish-language campaigns to market averages. Looking at 50 projects with clients in many categories, the research discovered “five key levers to driving higher ROI on Spanish-language TV.” The analysts even provided data that revealed the drivers of “high ROI” versus “low ROI” campaigns.
One of the most interesting findings from the Nielsen study is that brands that Hispanics purchase more frequently generated a higher ROI across Spanish language TV. To explain this, Mebrulin Francisco, Senior Partner, Director of Marketing Analytics at GroupM asserted that “where we see higher performing campaigns, it goes back to whether you have the ‘right to win.’”
Francisco explained that one of the most important elements of delivering these types of ROIs is looking past the sheer number of Hispanics to determine which brand in the portfolio Hispanics are connecting with, “because it’s not about population size, it’s about their pocket size,” an argument that is supported by the data collected on brands that are popular with Hispanics.
“This is critical learning to the industry,” Francisco elaborated: “We tend to say Hispanic populations are growing, and that this is why you should invest, but we see high performance because we had reason to believe that putting money there made sense.” Being able to identify the brands to leverage is key to generating successful Spanish-language campaigns, Francisco said, because “maybe a product doesn’t have owned authenticity to win with a Hispanic audience.”
Brands must devote significant energy to understanding where and how customers prefer to shop, as people now use a wide variety of platforms when comparing products and ultimately making purchases. For that reason, cross-channel plans are “always more effective than a single medium plan,” Gloria Constanza, partner, chief contact strategist at Dex-P said.
All of our General Market counterparts are paying more and more attention to the Hispanic market and making that a priority since they are seeing that this is where their growth opportunity exists.
And while Constanza asserted that “digital is more efficient in affecting the bottom of the funnel,” she added that offline media’s role in conversion is strong: “There are many attribution models that clearly indicate that the function of offline media at the consumer journey mapping process is very strong at driving the upper funnel, thereby being responsible for the conversion step of the funnel.” A successful Hispanic marketing strategy will take these factors into account and reach people at all stages of their shopping journey.
Education, Development of New Methodologies Contribute to ROI
Marian Lozano, Associate Media Director at Zubi Advertising, said that by now, most brands they work with “understand that one size does not fit all when it comes to speaking to Hispanic consumers,” but that this is the direct result of their efforts to educate clients. Lozano explained that she and her colleagues are “constantly helping clients understand the differences between the different Hispanic segments and groups.”
This has paid off. “All of our General Market counterparts are paying more and more attention to the Hispanic market and making that a priority since they are seeing that this is where their growth opportunity exists,” Lozano affirmed.
Constanza of Dex-P added that in her experience, “the Spanish-language targeted efforts have always delivered much higher and attractive ROI.” To inform strategy, her team often tests the dual language approach for targeting both acculturated and unacculturated Hispanics. “Through evaluations of sales and their tracking study, we continuously see that Spanish-language over-performs the English-targeted Hispanic initiative YOY,” she said.
For many data providers, the way you can pick up the Hispanic sales is making inferences based on first and last name, where they live, and density data. Even with an incomplete picture, we are still seeing how they are responding, so imagine if we had the full picture.
But there are still many obstacles to effectively targeting Hispanics: Francisco of GroupM argued that the “biggest challenge today is how sales are broken down by ethnicity,” which she described as “a tall order” because “they know they are selling but they don’t know whom they are selling to.” Francisco warned that relying on Home Scan, Nielsen, and panels to draw conclusions without taking a look at the methodologies implemented is dangerous.
The good thing is that campaigns will only perform better as more effective methodologies for breaking down consumer behavior are discovered: “For many data providers, the way you can pick up the Hispanic sales is making inferences based on first and last name, where they live, and density data. Even with an incomplete picture, we are still seeing how they are responding, so imagine if we had the full picture,” Francisco said.
With Hispanic Targeting, Good Things Come to Those Who Wait
For brands looking to strike gold with Hispanic consumers, patience is a virtue. To make the most of this demographic, they must understand that “you can’t expect results to come in in a year,” Francisco said.
Constanza echoed that sentiment, stating that while it is important to identify and prioritize the brands that are currently connecting with Hispanic consumers, “we also cannot forget that Latinos will be the main driver of many businesses in the years to come.” When immediate results don’t come in, “they should not stop their Hispanic program – instead, they need to continue to optimize it until they find the right approach.”
Francisco added: “When it comes to Multicultural, people think if it doesn’t work in a year, it doesn’t work at all, but you have to build brand equity and build a relationship with a consumer.” This is important when one considers that just reaching Hispanics is one thing, while truly engaging with them in a meaningful way is another.
Unfortunately, letting a machine spill data for you without the proper mining and interpretations can lead to a missed target.
Constanza elaborated: “In an era of advanced technology and a tsunami of available data, today it is easier to target Hispanics in the language that is more rational to them.” But truly connecting with “heart and emotions” will require that marketers invest in acquiring a much more “extreme expertise and inherent knowledge of this complex audience.”
Because it is not just about the data, but how the data is gathered and interpreted, and the insight it provides.In addition to reaching Hispanics where they will be open to your messaging, Constanza emphasized the importance of “staying culturally relevant and uncovering those unique triggers that allow a brand to foster deep connections with Latinos.”
While data from reports like Nielsen’s is useful in loosely confirming or dispelling common assumptions about Hispanic consumers, the real trick is deciphering the meaning behind the numbers. “Unfortunately, letting a machine spill data for you without the proper mining and interpretations can lead to a missed target,” Constanza said.
Check out our new round up for brand marketers, where you’ll find the most relevant new insights and research published over the last week. If you’re trying to keep up, consider this your one-stop shop.
Google, PayPal and WhatsAppwere named the most Meaningful Brands 2017 in Havas’s global study, which covers 33 countries, 300,000 respondents and 1,500 brands –which looks at brand performance and wellbeing. The study also found that 84% expect brands to produce content but they think 60% of all content created by brands is poor, irrelevant or fails to deliver. Only 40% of the world’s leading 1,500 brands produced content that meets requirements.”
Global brand strategy, design and experience firm Siegel+Gale announced the findings of the seventh annual Global Brand Simplicity Index. Among the findings: 64 percent of consumers are willing to pay more for simpler experiences and 61 percent of consumers are more likely to recommend a brand because it’s simple.
Googlehas been named the world’s most valuable brand by the Brand Finance global 500 report. This puts last year’s most valuable brand, Apple, in second place.
According to a report from digital platform Agency Spotter, agencies and design firms’ typical projects now range between $50,000 and $250,000 with the typical annual deals up to $20 million. 30% of decision makers at brands say they typically hire a partner within two to three months, 31% hire an agency within a month, and 39% say it takes them four or more months.
Makeup line bareMineralshas launched a new campaign to highlight the expansion of its foundation range to include 12 new shades, allowing the brand to better cater to a more diverse consumer base.
The National Association of Minority Automobile Dealers (NAMAD) and IHS Markithonored American Honda with the “Top Overall Ethnic Vehicle” DVL Award for automotive brands dedicated to driving sales leadership with Asian, Native American, Hispanic and African American car buyers.
An Oracle survey found that 34% of brands claim that their sales, marketing and customer service teams work completely independently of each other, leading to a lack of customer insight. 33% blame it on their current systems and technologies, while 30% say their corporate culture makes it tricky for sales and marketing teams to align priorities.
Facebook’s Q4 and full year earnings report found an 18% year-over-year increase in daily active users reaching 1.23 billion. 84% of Q4 advertising revenue came from mobile ads, up from 80% the same quarter last year. The tech giant’s mobile daily active users in December hit 1.15 billion, a 17% year-over-year increase.
L2‘s fourth annual intelligence report on social platforms found that Snapchat’s brand adoption rate grew by 50% between January and October in 2016, and that 64% of brands are now on the app.
Clutch’s survey, ‘Content Marketing Survey 2016, which spoke to 300 content marketers in the US about their objectives, strategies and metrics, found that 49% say brand awareness is the main goalof content marketing strategies followed by search engine visibility (30%) and lead generation (21%).
The MBLM Brand Intimacy 2017 Report, which looks at how brands resonate with consumers on an intimate and emotional level, ranked Apple, Disney and Amazon as the top-ranked intimate brands.
According to Millward Brown Digital’s2016 Hispanic American Auto Buyers Report, Hispanic American consumers account for $27.9 billion in registered new vehicle transactions, representing 11% of the total market, and annually, the Hispanic population in the United States grows by about one million people.
What: Major League Baseball (MLB) and mitú announced their new “Always-On” content campaign designed to deliver unique MLB content to multicultural youth. Why it matters: Unique collaboration celebrates the individuality, heritage and diversity of MLB players and fans, beginning in February.
Beginning in February, MLB and mitú will unveil an array of exclusive digital content that will appear across a variety of mitú and MLB distribution channels. As part of the partnership, mitú will leverage its proprietary technology to measure response and sculpt content to maximize engagement and reach for a young multicultural audience.
“We are excited about this new partnership with mitú which will showcase the energy and heritage of MLB, its players and fans in a creative and fun way for young Latinos,” said Felicia Principe, Director, Brand Advertising & Marketing at Major League Baseball. “This partnership will give mitú access to valuable MLB content and star Latino baseball players that its consumers will enjoy.”
MLB and mitú will collaborate in creating content capturing the spirit and pride of current and former MLB players, comedic sketches, listicles and memes that celebrate the enthusiasm of a new and diverse generation of MLB fans and players. On Opening Day 2016, 235 players – almost 30 percent of the league – were of Latino descent and in a recent ESPN poll, more than 60 percent of Hispanic people living in the U.S. consider themselves fans of Major League Baseball.
“We’re excited to partner with MLB in this unique and exciting way. mitú is the heart and soul of multicultural youth and our deep audience insights coupled with MLB’s historic brand, charismatic players and loyal fan base makes for a perfect partnership,” said Roy Burstin, CEO of mitú. “We are honored to work with MLB and look forward to a successful partnership.”
What: Horizon Media has launched a dedicated multicultural social solution led by Karina Dobarro and Pedro L. Rodriguez. Why it matters: This new multicultural social practice will maximize brand influence for agency’s clients across multicultural audiences through organic engagements, influencer relationships and strategic paid media.
Horizon Media, the privately held media services agency, announced that it is launching a dedicated multicultural social solution to help the agency’s clients maximize brand influence through organic engagements, influencer relationships and strategic paid media within the multicultural space. The newly formed practice will be led by Karina Dobarro, VP, Managing Director, and Pedro L. Rodriguez, Director, Social Strategy and Influence, at Horizon Media.
Horizon Media, currently the 7th largest U.S. Hispanic Media Agency according to Advertising Age, will marry its multicultural capabilities with those of its robust social practice to activate across six key areas within the multicultural segment: social intelligence, authentic conversation, influencer marketing, paid amplification, reputation management and compelling content.
“The multicultural market, which currently accounts for 40% of the U.S. population and growing according to the Census, will continue to drive consumer growth,” said Pedro L. Rodriguez, Director, Social Strategy and Influence, Horizon Media. “Our goal is to enable our clients to connect with the array of multicultural communities through authentic conversations to increase awareness, consideration, advocacy and loyalty. This new capability is a way for us to expand the existing Spanish language paid social media work we have executed for clients for example, into a more robust portfolio of multicultural social services.”
“Young multiculturals are an empowered segment driving innovation and growth across a multitude of social platforms,” said Karina Dobarro, VP, Managing Director, Multicultural, Horizon Media. “Engaging this coveted segment requires authentic social content that is inclusive, in-culture and often in-language. We recognize the untapped potential of this multicultural audience of ‘super-users,’ and will launch our multicultural social practice to efficiently reach this group in impactful ways on behalf of our clients.”
Multicultural men and women represent a massive segment of the influencer space today– and as “Super Consumers,” multicultural audiences represent US$3.4 trillion in consumer spending today, according to Nielsen. The new offering will help align Horizon’s brands with both the growing cohort of multicultural influencers on social media and the multicultural consumer population by uncovering digital intelligence to build better brand stories, create a social media foundation to drive strategy, extend branch reach and reputation, and build experiences on behalf of Horizon’s clients.
“What’s great about social media is that we can swiftly test and learn through audience interactions and insights to develop strategies and ongoing optimization strategies based on performance,” continued Pedro L. Rodriguez, Director, Social Strategy and Influence, Horizon Media. “From there, we can provide recommendations to our clients which can even drive product and service innovation from the ground up.”
Horizon’s social practice is comprised of over 30 specialists (including six bilingual specialists), and is fully integrated within the agency’s larger planning teams to strategically leverage social media content and learnings for integrated media campaigns across all facets of the organization.
Just a glimpse at the headlines surrounding today’s biggest brands suffices as proof that diversity is one of their top priorities. Last Friday, Hewlett Packardsent a letter to all its agency partners requesting a proposal from each one on how they would increase the number of women and people of color on their creative staffs. This followed an almost identical request from General Mills earlier in the week.
So how well are multicultural agencies faring in meeting the increased demand for campaigns shaped by diversity and the inclusion of a wider audience? Throughout 2016, media industry rabble-rousers have stirred up discussion about how well multicultural agencies are serving brands in their targeting efforts, and whether they must find new ways to deliver ROI if they are to stay relevant to their clients.
How can multicultural agencies adapt to shifting demographics, and should media, creative and digital be bundled together? How can marketers look at the media landscape holistically without losing sight of the particular idiosyncrasies of Hispanic audiences?
Take a look at what Nydia Sahagún, Senior Vice President and Head of Diverse Segment Strategy at Wells Fargo Bank; Zach Rosenberg, president of MBMG Media; and Janina Delloca-Pawlowski, Multicultural Marketing Manager at Dunkin’ Brands had to say about Hispanic agencies’ roles in the current media climate.
Do Smaller Segments Require Smaller Efforts?
Anyone in the business would be hard pressed to call the Hispanic market “small” today. The Hispanic market is growing faster than any other in America, and given the size and purchasing power of Hispanic consumers, it really cannot be considered a separate segment in this day and age. Wells Fargo Bank’s Sahagún asserted that “with Hispanics shaping modern society as we know it, their impact should not solely be measured on size but rather on the influence and impact they have on the broader population.”
But since it is technically still a segment within the general population, misconceptions about the amount of effort, or money, that should go into Hispanic outreach are still giving shape to ineffective Hispanic outreach.
Multicultural agencies need to “drive meaningful conversations and engagement with this audience, which will take prioritization and commensurable investment,” Sahagún said. Dunkin’ Brands’ Delloca-Pawlowski added that even if you do look at Hispanics like a “small segment,” they “often mean larger efforts because the level of engagement needs to be that much more refined and specialized.”
Misconceptions, Arbitrary Budgets Are a Disservice
An agency, whether it is multicultural or full-service, will often be limited by the budget it allots to Hispanic and multicultural targeting. But Zach Rosenberg, president at MBMG Media, which specializes in integrated media campaigns and counts El Pollo Loco, Shakey’s Pizza and The General Insurance among its clients, highlighted that decisions on budgets can have a significant effect on the success of Hispanic outreach efforts, and that brands sometimes define budgets for multicultural arbitrarily, setting an incidental percentage of the general campaign budget aside for targeting instead of reaching a number through analysis and serious consideration. In this case, hasty budget decisions mean that “segments could end up being underserved,” Rosenberg warned.
On the other hand, “full service agencies may be able to allocate larger budgets to all aspects of their multicultural outreach, as they may fit it into their holistic view of the media instead of putting aside a small amount for targeting particular demographics,” he elaborated.
What’s more, some brands are just starting to grasp the opportunity that Hispanics present them. It may take time for brands to not only wrap their heads around the size and potential of this sub-group, so strategies will take time to develop and engage consumer segments as they hope: “It does not happen overnight and results/ROI should be analyzed accordingly,” Delloca-Pawlowski said.
Sahagún echoed that sentiment, stating that “every brand is at a different point in their journey to understand the impact and influence of the Hispanic market.” Sometimes, integrated campaigns are “a step in the right direction.” In the case of Wells Fargo, the goal is always “to represent the diverse point of view early and often.” But not all brands are that far ahead.
Full-Service Agencies Struggle to Adapt to Current Landscape
Rosenberg cited the rise of digital as another added complex element in an industry that has been highly “debundled,” with creative, digital and media often handled by separate shops. “There are digital shops that manage both creative and media under one roof,” he said, but others believe that the digital ecosystem requires the undivided attention of specialized agencies. Rosenberg argued that “digital is just one other, albeit, complex and ever changing channel, and should be viewed in the context of all media channels which can only be done at a general media agency.”
“Media is media,” Rosenberg asserts. So when it comes to general media versus specialized or multicultural agencies, there is an argument for putting everything under one roof, especially because bigger agencies tend to have bigger budgets and consequently, more negotiating power. But that doesn’t mean that multicultural agencies aren’t necessary: “If the staff at a general media agency doesn’t understand the nuances of marketing to these groups (language, age, geography, media usage, acculturation), then they will be doing a disservice” to their clients, Rosenberg clarifies.
Rosenberg summarizes the dilemma: “The challenge with housing multicultural media with creative under one roof is their ability to achieve the necessary clout in the marketplace to negotiate the best media deals. In a world of specialization, the adage is that it is hard to do two things well. There are very few full service agencies, general or multicultural, relative to the current agency landscape.”
Ensuring Authenticity While Adopting to Changing Consumer Landscapes
Hispanic consumers have taken on a new identity as the country’s demographics have shifted. This, coupled with the rapid adoption of technological tools and platforms designed to inform marketing decisions means that everyone is fighting to keep up.
Delloca-Pawlowski believes that all agencies, not just multicultural, are facing a similar challenge: “All agencies must evolve with the changing consumer landscape, because what worked in the past may not continue to work in the future.” In general, she said, “as consumers’ product preferences and media consumption habits evolve, agencies need to embrace these changes and adjust their plans accordingly.”
She also underlined the importance of ensuring “cultural and language authenticity” instead of simply “translating general market creative.” “At the end of the day,” she said, “every agency must demonstrate their value to the client through overall thought leadership, consumer insights on their respective segments, new communication opportunities and pitching better ways to engage with consumers, as well as reporting competitive activity.”
Brand and Agency Collaboration Key to Success
Ultimately, brands and agencies have a shared responsibility to bring out the best in each other while generating impressive ROI. Delloca-Pawlowski highlighted that it is the “client’s responsibility to foster this kind of teamwork and collaboration among its agencies” to ensure that the “best work will surface and the entire team will shine as a result.”
In that respect, Rosenberg argued that specialized agencies have a leg-up here, as they “have the advantage of strategic adherence across both creative and media,” and that “the burden has fallen on media agencies to ensure collaboration between client and all of their agency partners. This is just as important with multicultural shops, and the future multicultural agency could be one where they drive strategy for creative and media but outsource activation,” Rosenberg estimated.
Perhaps Sahagún summarized it best: “Agencies that rest on their laurels will become obsolete – regardless of their particular specialty.”
The topic of this article will be explored in-depth at At #Portada16 Sept. 14-15 in NYC, in the session “Are Multicultural Agencies Necessary?” MODERATOR: Zachary Rosenberg, President, Milner Butcher Media Group PANELISTS: Mebrulin Franciso, Senior Partner, Director of Marketing Analytics at GroupM Alejandro Solorio, Hispanic Marketing Director, Comcast Gloria Constanza, Partner, Chief Contact Strategist, D’Exposito & Partners Alexander Traverzo, Multicultural Marketing Manager & Strategist, Hola Lucia Ballas-Traynor, EVP of Ad Sales, Hemisphere TV Description: Leading practitioners will immerse themselves in the questions below: • Are Hispanic marketing and media buying justified under the total market approach? • Agency models for media and content development • The role of the media agency in the age of programmatic audience buying REGISTERhere at the online promotion price!
The Interactive Advertising Bureau (IAB) and its Multicultural Council have launched a “multicultural hub” to establish best practices across all multicultural considerations and segments. Portada spoke to Joe Laszlo, VP, Industry Initiatives at the IAB, to discuss the significance of this initiative and how the hub hopes to foment more thoughtful, effective multicultural campaigns.
Helping Digital Advertisers Thrive in a Multicultural, Digital World
A simple glance at recent statistics on the American population provide more than enough justification for an increased focus on reaching diverse, multicultural audiences: over 50% of the U.S. population is diverse, non-white Americans. In fact, just the numbers about Hispanics alone are impressive as well: Hispanics are the fastest growing population segment in the United States, and the population of Hispanics is expected to exceed 58 million by the end of 2016.
“We needed to establish best practices on how to navigate challenges, develop authentic creative and be more effective in our approach as marketers,” Laszlo explains. So with the aid of the 60+ companies within the Council, and under the leadership of Co-Chairs Diego Antista, U.S. Multicultural Agency Head, Google, and Liz Blacker, EVP, Multicultural Strategy and Sales, iHeartMedia, the organization created an initiative to establish best practices that will support buy-side agency and brand partners in navigating multicultural advertising in the “new America.”
The Multicultural Council was created about five years ago, Laszlo says: “Members of the Hispanic community came to us and said, ‘We care about the Latinos in the US, but our titles cover a much broader group than that.'” As the IAB puts great effort into conducting research and producing resources like white papers, infographics and reports for those in the industry, it follows that the organization would create a group dedicated solely to promoting the growth and strength of the multicultural marketplace with regards to content, marketing, and corporate culture both in their initiatives and employee diversity.
The goal is to develop downloadable, single-page sheets on topics like multicultural programmatic, U.S. Hispanic search and strategies for LGBTQ audiences.
The goal is to develop downloadable, single-page sheets on topics like multicultural programmatic, U.S. Hispanic search and strategies for LGBTQ audiences to “help digital advertisers thrive in this digital world we live in,” says Laszlo.
Multicultural More than Hispanic
It is not unusual for people to equate “multicultural” with simply “Hispanic,” but other demographics are growing at significant paces as well. Asia is projected to replace Latin America (including Mexico) as the minority-majority source of new U.S. immigrants. And African Americans have unprecedented buying power, reaching $1.2 trillion as of 2015 (up 275 percent from 1990).
But it is undeniable that the Hispanic community has contributed to raising awareness of the importance of speaking to each demographic and developing personalized messages for not just Hispanics, but also Asian Americans, African Americans, Latinos, Blacks, LGBTQ individuals, Veterans, as well as addressing Body Positivity and Gender Equality. The Multicultural Council started as a Hispanic Council, but it didn’t take long for it to evolve.
Multicultural needs to be more than just a checked box. That won’t resonate with audiences. Multicultural is much more about a strategy that can be adapted and transformed.
Laszlo agrees that many advertisers and marketers’ introductions to multicultural occurred through their Hispanic targeting efforts. In their efforts to better comprehend today’s Hispanic, they realized that each demographic has its own nuances and sets of values. “In the past, marketers and brands would say, ‘We have our mainstream marketing message, we’d better do it in Spanish too.’ Then they realized just translating wasn’t the most authentic way to speak to that audience. As that realization hit, they realized that the way to speak authentically to other audiences and demographics requires subtlety and nuance and expertise as well.”
The industry’s journey with Hispanic audiences has taught it “how to listen and understand an audience,” Laszlo asserts.
Best Practices for the “New America”
When asked to elaborate on the concept of establishing best practices for the “new American,” Laszlo says, “Multicultural needs to be more than just a checked box. That won’t resonate with audiences. Multicultural is much more about a strategy that can be adapted and transformed.”
“Everyone has radar for inauthentic messages. Smart brands and agencies want to do the right thing, and the fallout for being clumsy or insensitive with strategies will backfire.”
“It’s the death of media mass communication,” Laszlo continues. Platforms and tools for making practical use of Big Data for analytics and targeting mean that there is no excuse for failing to speak to consumers as individuals.
“It’s about a subtle shift in the balance of ‘we’re all Americans, and there are certain values that resonate with all of us’ versus ‘we are unique individuals that identify with many communities,’ and in terms of the way that marketers strategize, that shift is reflected in their planning,” Laszlo explains.
Laszlo believes that multicultural tactics will become general marketing tactics with time, as the industry moves “from mass undifferentiated communication to sensitivity to different interests,” because “everyone wants to be spoken to in a way that is authentic and meaningful to them.”
The conversation has gradually shifted from advertising buyers outside of multicultural specialist agencies asking “why would I need to do more than just translate” to “how can I build a multicultural tool kit that’s going to work.”
IAB’s Multicultural Hub is showcased through this link, accessible to anyone on the website. The organization will also be distributing copies at multicultural related events. The goal is to show the industry that the IAB takes multicultural audiences very seriously, and imply that other industry professionals should as well.
“Everyone has radar for inauthentic messages,” Laszlo says. “Smart brands and agencies want to do the right thing, and the fallout for being clumsy or insensitive with strategies will backfire.”
NBCUniversal announces CultureFirst, the IAB hosts a multicultural town hall, Hispanics could drive auto sales, while the New York Times examines what makes multicultural TV shows relevant to all.
Universality Is Key to Crossover Appeal of TV Programs
The Hispanic audience is fragmenting along with all other TV audiences, as a plethora of over-the-top video choices wear down television’s mass appeal. In this landscape, TV shows should aim beyond Latin-centric characters and themes, according to a New York Times article. A case in point is the critically acclaimed Jane the Virgin, which has garnered respectable audiences across cultures. The reason, according to the article, is “it captured the essence of the culture without banging it over people’s heads.” While Jane and her family are Hispanic, the Times notes, it’s “built around a mother-daughter-grandmother dynamic that could translate to other races and ethnicities: ‘It’s just a girl who wants a dream to come true.'”
TuYo Enters OTT Market
Hispanic digital entertainment TuYo, led by Jenni Rivera and “I Love Jenni” producer Peter Salgado will launch in July, according to VideoInk. The digital channel will include free, ad-supported programming as well as paid, on-demand offerings in Spanish and English. A wide mix of programs includes series, documentaries, movies, sports, reality, gaming, news and music. Content partners include Latin World Entertainment, World of Wonder, VIP 2000, Dhana Media and Great Glass Productions.
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NBCU Upfront Pitches Targeting via Culture
NBC Universal’s Upfront presentation included the unveiling of CultureFirst, a new way of targeting Hispanic consumers via cultural traits instead of language. . It also announced NBC Deportes, which will produce sports content for Telemundo and NBC Universo, as well as its digital properties, with offerings to include FIFA World Cup, NASCAR and Olympic qualifiers. League, NFL and NASCAR. And, in a play to capture the interest of Hispennials, NBCUniversal Hispanic Group said it would do whizzy new things like dual-screen storytelling and an interactive comic book series. It also made a deal with Defy Media to create new content across platforms, centered on Defy’s Clevver TeVe, a Spanish-language YouTube channel covering fashion, music and lifestyles with a millennial focus.
IAB’s Town Hall to Promote Digital for Multicultural
In the IAB Blog, Jessica Ramirez spelled out 8 things marketers should know about Hispanics. Those eight will be familiar to anyone working in the Hispanic market, but the post also serves as an invitation to the IAB’s Multicultural Creative Town Hall to be held May 27 in New York. Ramirez notes that multicultural spending still lags population growth; the town hall may give agencies and publishers more ammunition.
Hispanics to Drive Growth in Car Sales
According to Automotive News, Hispanic consumers could be the auto industry’s leading growth engine for the next 20 to 30 years. The article includes stats from Polk Automotive that Hispanic buyers delivered 96 percent of Ford and Chevrolet’s combined year-over-year retail sales growth, 33 percent of Nissan’s, 35 percent of Toyota’s and 100 percent of Honda’s. Wow. While a lot of car companies’ efforts are going to helping local car dealerships better serve the variety of Hispanic and Latin consumers coming through their doors, it’s also good news for Hispanic media, with Hispanic advertising becoming an important part of new-vehicle launches. [Ctahfb]
In our new agency profile feature, Susan Kuchinskas writes about Spark’s origin, key clients, its multicultural offering, main decision makers, cool upcoming campaigns and more…Spark’s Elevator pitch? Boutique services with the clout of Starcom Media.
This Chicago-based, full-service media agency is the smallest in the StarcomMediaVest Group, but it aims to be, well, the sparkiest. The company’s genesis was in 1999 as Starlink Worldwide, a media agency aiming to serve independent agencies with a more creative approach. In 2007, it rebranded as Spark Communications, with a digital focus. Chris Boothe, formerly president of Starcom, came aboard in 2012 as the agency’s first CEO.
“We created a model based on the best of both worlds: boutique but backed by a global agency network,” he says. Boothe is emphatic – if a bit vague – about how collaboration with its powerful media parent works, but he notes, “If SMG has a strategic partnership with Univision and SMG, all our clients can benefit from that.”
Media plans are architected and executed by Spark, informed by the agency’s insights as well as those stemming from SMG research partnerships and findings, and they also benefit from the parent’s preferred pricing. Key Clients: ConAgra, Red Lobster, Kao, Taco Bell
Spark works with clients large and small. Boothe says, “We work best with clients that are seeking to do things differently and want to develop programs that are content-, data- and analytics-driven; delivering precision targeting and making realtime decisions.” Efficiency and precision come from a scientific approach to campaigns that provides maximum impact with minimal waste – and that’s of interest to every client these days, Boothe says. “All clients now are trying to outsmart versus outspend. You have to have a challenger brand mentality.”
Multicultural marketing is built into Spark, which takes the total market approach for all media strategies. That said, Stephen Paez, vice president and director of multicultural, is aggressively going after multicultural accounts, having grown total multiculti revenue by close to 20 percent in his 18-month tenure. Spark Multicultural is part of SMG Multicultural, the nation’s largest multicultural marketing agency. While it has its own internal resources, it also can leverage the resources of SMG MC in the same way that other brands within the parent agency do.
Media plans are architected and executed by Spark, informed by the agency’s insights as well as those stemming from SMG research partnerships and findings, and they also benefit from the parent’s preferred pricing. The lead media planners on client teams make key decisions in collaboration with the client, and they’re responsible for making sure the specific client gets the best pricing, best activations and added value, Boothe says.
Shelby Saville, EVP of digital, oversees close to half of all agency billings. Stephen Paez oversees multicultural media and John Muszynski, chief investment officer, leads all investment, total market, negotiations on behalf of Spark’s clients.
European Wax Center will launch a campaign with the release of 50 Shades of Grey. The in-cinema TKs place with NationalCinemedia Networks allows ECM to target this movie only, running in 1,500+ theaters across the US. A partnership with Fandango lets Spark serve online ads to women who have purchased 50 Shades of Grey tickets or reviewed the movie.
To launch Delta Faucets’ new HappiMess campaign, Spark collaborated with Animal Planet marketing and Discovery Communications ad sales marketing to create multifaceted brand integration centered on a custom, content-driven contest. The partnership in the TV show Treehouse Masters includes custom, on-air vignettes; passive product integration; in-program mentions and bumps; and forefront integration in the show finale.
Digital dimensions include a digital landing page on Animal Planet for contest submissions, co-branded banners on Animal Planet and Discovery Digital Network; a co-branded Rich Media Video Box that features the custom vignettes; co-branded homepage road blocks on Animal Planet and Discovery Digital Network; and a sponsored, “behind-the-build” digital episode.
A campaign promoting skiing in Montana used location-based mobile ads to reach people in the Midwest who were at ski resorts, top skier airports and other outdoor areas. The idea was to target people in markets where there are lots of skiers but the local skiing is not so good. Spark also geofenced the entire state of Montana to allow the Montana Office of Tourism to track the percentage of people who received a Montana ad and later actually visited the state during the ski season. The estimated $25,000 budget resulted in an incremental lift of 4,752 visitors and an incremental $6.9 million lift in visitor spending — returns of $276 for every ad dollar spent. [vimeo 105771261 w=500 h=281]