What: NAI has released the most recent update of its Code of Conduct, which expands on the rules and regulations around digital advertising, reinforces requirements for collection and use of data, and bans behavioral targeting of users younger than 16. Why it matters: The Conduct Code, first published in 2000 and last updated in 2018, is meant to thoroughly encompass the products, technologies, and most recent ways of today’s digital advertising society.
Non-profit organization Network Advertising Initiative has announced its 2020 Code of Conduct. The document is meant to be an updated, more comprehensive version of the NAI Code, which was first published in 2000. The 2020 Code expands coverage to fully encompass all the new products and technologies relevant to today’s digital advertising industry and strengthens requirements related to the collection and use of NAI member companies’ data for digital advertising.
“The 2020 NAI Code expands the scope of coverage of modern digital advertising practices by formally including the use of offline data and advertiser customer database information to target ads across websites, applications, and television screens; something many of our members already proactively honor,” said Leigh Freund, NAI President and CEO, in a statement. “This Code further aims to future-proof and proactively fill potential gaps by including any other use of previously collected data about a particular user or device to target digital advertising.”
Among the main updates included since the 2018 document, NAI goes further into collection and use of precise location data. “We are asking members to work with application publishers to provide additional notice regarding advertisers’ uses of data when obtaining consumer consent”. The code also imposes rigorous requirements for the collection and use of sensor information like that provided by cameras, microphones, and biometric sensors.
Moreover, to comply with the California Consumer Privacy Act, NAI’s 2020 Code bans behavioral targeting of users younger than 16, thus raising the minimum age from the 2018 document by 3 years.
“The Code also introduces requirements to increase transparency for political audience targeting, requiring NAI members to disclose the political audience segments they use for tailored advertising.”, said Freund.
The enforcement of the 2020 Code is planned for January 1st, 2020.
A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
Ampere Analysis’ Top Online Video Services Barometerhas revealed that YouTube is the most watched online video service by a longshot, with 68.7 percent of global internet users claiming to have visited the website at least once in the last month.
Google is opening up more intent data for targeting on YouTube and introducing more services through its Custom Affinity Audiences offering.
Video ad serving platform SpotX announced today an exclusive agreement to power the programmatic monetization of Vudu’s Movies On Us advertising-supported content catalog.
Netflix is raising the prices of its US-based streaming plans to support the costs of its popular original programming.
Video monetization company FreeWheelhas released its Q2 2017 Video Monetization Report, revealing that mid-rolls on full episode premium content enjoy a 97 percent completion rate.
GoPro on Thursday released improved models of its mini-cameras and Karma drone to bolster the efforts of creators sharing videos online at a media event in San Francisco.
Adobe Sparkhas launched new features for creating and sharing branded stories in all three Spark formats: Post (for graphics), Page (for web pages), and Video (for video stories).
comScorehas launchedActivation, a product suite that helps advertisers, agencies, and media companies efficiently reach the right audiences at the right time using data from comScore’s planning and measurement products.
Executives from OTT platforms analyzed strategies for the Latin American region at the Next Series Mexico & Central America, an event organized byDataxis in Mexico City from Oct 3-4.
Telefonica and Logan have united to integrate their Big Data with mobile ads in Latin America to enable more effective personalization of mobile ad campaigns.
The IOT Grouphas engaged consumer electronics sales representative company Maximum Export Import LLC to manage the market development of its ROVA Selfie Drone and AirSelfie products in Latin America.
Next week, 300,000 video game fans, developers and publishers like Sony, Ubisoft, Activision and Microsoft will head to Sao Paolo, Brazil for the Brasil Game Show, Latin America’s largest gaming convention, where the role of YouTube and Twitch in democratizing gaming will certainly be discussed.
Broadband satellite solutions company Hughes Network Systems announced the launch of HughesNet® high-speed satellite Internet service in Colombia beginning on September 28, the company’s second international deployment of its award-winning consumer service beyond North America.
According to the Tecnología residencial 2017 report, published by Carrier y Asociados, the number of connected devices per household in Argentina has increased over the last year, currently at 6.3 devices per home, increasing from an average 5.8 last year.
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.
As the US-Hispanic demographic evolves and grows, multicultural strategists and media planners are faced with the challenge of connecting with a consumer that cannot be defined by a single language or set of behaviors. How educated are agencies when it comes to awareness of the appropriate media mix for reaching today’s Hispanic consumer? Are agencies hoping to reach them through the general market, or are they happy to continue making full use of the traditional options, Telemundo and Univision, especially now that programmatic makes it possible to conduct highly targeted campaigns across a variety of media? We talk to industry insiders to find out.
Hispanic Consumer Targeting: Spanish Language Not A Strategy Anymore
There is one definite conclusion among multicultural marketing strategists: Spanish is not enough to reach U.S.-Hispanics, as the acculturated Latino, who often speaks more English than Spanish in their everyday life, is the fastest-growing group within the Hispanic segment. The question on the tip of many tongues is how to connect with young, well-educated Hispanic millennials.
While the general market may reach some of this segment, those campaigns “might reach them but they are not likely to connect or touch an emotion, so it’s a missed opportunity,” says Asten Morgan, Latina Media Ventures’ Executive Director of Integrated Media.
In the face of this challenge, some agencies and buyers simply resort to the big players like Telemundo and Univision. Morgan added: “I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.”
I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.
Others are sensing a need for greater education on who Hispanics are and where they can be reached. Lucia Ballas-Traynor, the EVP of Sales at Hemisphere Media Group, explained: “We need to come together as an industry and provide clients and agencies with best practices and guidelines on Hispanic TV buying.”
Part of her concern stems from worries that if this education does not take place, agencies will simply hope for the best in reaching Hispanics through the general market, since their go-to’s for this type of targeting, Univision and Telemundo, “are not meeting their total market objectives and can satisfy them using general market networks.”
Ana Crandell, Group Account Director at global media agency OMD Multicultural, also attributed a “hesitance to expand beyond the Univision and Telemundo’s of the world” to education, saying that it “really comes down to a lack of knowledge of the offerings available in this space,” and that “many marketers continue to think of the U.S. Hispanic marketing landscape as being limited to just a handful of players, which we know has not been the case for many, many years now.”
The acculturated Hispanic has certainly turned many marketing strategies on their heads. Zach Rosenberg, President of MBMG Media Group, offered an example of the firm’s experience with client El Pollo Loco: “It was clear that they were over-messaging to their Hispanic consumer set while not having enough of a presence in the general market,” he explained. “Our strategic approach was to recalibrate their media mix to include less Spanish Language programming as a larger percentage of Hispanic consumers are acculturated now than even 10 years ago.”
There is a hesitancy to expand beyond the Univision’s and Telemundo’s of the world.
But this was not an uninformed decision. “It should be noted that our multicultural expertise is what led us to this rationale and success,” Rosenberg reminded us.
Another industry insider, who preferred not to be named, defended practices that put a heavy emphasis on the big players: “I think that buying these two partners delivers significant reach of Spanish Preferred Hispanics (and at times can reach goals established by some clients),” but that “to be more holistic and well rounded in the approach it is good to include the other Spanish-language stations that may not deliver as high ratings but definitely provide areas that do not duplicate with Univision and Telemundo.”
Spanish-Language TV’s Transformation
So why aren’t Telemundo and Univision meeting their market objectives? Latina’s Morgan pointed out that they aren’t focusing on digital: “They are focused on their core businesses of television, and their digital properties don’t deliver Hispanics at scale.”
Ballas-Traynor asserted that when it comes to Spanish-language TV, “buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.”
Ballas-Traynor highlighted a few factors that she attributes to this transformation: a general shift to a ‘total market’ approach with a focus on “great buying efficiencies,” and a consequential “shift in buying responsibilities to general market investment/activation teams that have little to no understanding of Hispanic media, or of the audience profiles and content that differentiate these outlets.”
She also noted that agency fees for buying have been reduced across the board, resulting in a “greater emphasis on buying agencies that leverage their clout with fewer, bigger media partners.” She asserted that “budgets for accounts that are active in Hispanic are flat at best.”
While some may see it as an issue related to a lack of education in media buying, our anonymous industry contact believed budgets are a significant issue here: “I think sometimes the media buying community can be misinterpreted, because they do understand that there are others S-L stations that bring value to campaigns. However, the reality is that advertising budgets can be challenging these days and it’s important to secure a strong base media buy to drive sales.”
Spanish-language TV buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.
Nonetheless, education appears to have a significant role in fixing this conundrum. Multicultural strategists like Ballas have encountered “a lack of resources and multicultural expertise” that is made worse by the fact that there is such a wide variety of media options that buyers end up doing “fewer and bigger deals with less players.”
And once clients and buyers have decided who that small group of players will be, they often resist change, funding “the same programs year over year with the same players, rather than adapting their plans to incorporate other important networks, regardless of performance.”
For this reason, many believe it is important that entities like Morgan’s Latina Media Ventures, which has “always focused on the acculturated Latina,” exist. Their DSP platform claims to do a better job targeting Hispanics in English or Spanish using first party data from their two owned and operated sites to build better Hispanic audience profiles. Then, third party data is brought in “to ensure we aren’t solely relying on sources that aren’t dedicated solely to the Hispanic demo.”
Hispanic Consumer Targeting: Disconnect Between Multicultural Strategy, Planning
Ballas-Traynor was clear about her firm belief that the industry must update its approach to Hispanic targeting, asserting that top 50 Hispanic advertisers probably only do Upfronts with a few different media a year.
“They buy ‘bundles’ which include online, cable and other assets. Perhaps a dozen go deeper than Univision and Telemundo as part of their media mix (mostly partners that they have worked with over the years). And a handful, at most, are adding any ‘new’ networks,” Ballas- Traynor explained. “As you can imagine, this is very frustrating because we know that the buys for those same accounts go ‘deeper’ and broader in terms of media selection in the general market.”
Another large problem is a growing disconnect between multicultural strategists that do understand the Hispanic market, and the general market activation teams who handle Hispanic network investment, that do not. Ballas-Traynor expressed disappointment that many of the activation teams have “little understanding of the differences among the various Hispanic origin groups, the content that resonates most, who the broadcast versus the cable outlets and sometimes who the measured players are.”
Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.
It is not uncommon for clients to have a very clear understanding of the consumption patterns and demographics of a key segment, how it differs from others within the Hispanic category, and what markets drive their purchases. But activation teams may not be as informed as the client or the multicultural strategist, and that can be a great detriment to the effectiveness of the campaign.
iHeartMedia is one of the alternatives whose assets might not all be digital, but it claims to reach 91% of the U.S. Hispanic population on a monthly basis through more than 100 stations that have significant Hispanic composition such as LA’s KIIS and KTU in New York City, who have a 50 percent and 40 percent Hispanic composition, respectfully.
Plus, the buyers can’t be the only problem. According to Morgan, they are just “the tip of the iceberg,” because “agency personnel are sitting on the sidelines using their own services,” claiming that they can only use internal platforms, “which are easier, safer and often less effective.” It may just take these agencies losing a client for change to occur: “until a change agent comes along or they lose the account, they move at glacial speeds.”
Programmatic, Scalable Options Help Engage Hispanic Audiences Off and Online
iHeartMedia’s President of Programmatic and Data Operations, Brian Kaminsky, highlighted how iHeart Media
takes advantage of its wide array of on and offline assets to help brands engage Hispanics: “We have seen almost universal interest in our platform from the agency community who are interested in efficiency and new ways to evaluate a traditional media, and from clients who’ve made an investment in their customer data platforms,” Kaminsky asserted. “Being able to incorporate broadcast radio, given its massive Hispanic reach, into audience focused plans is appealing because of the high ROI it offers relative to digital.”
Regarding programmatic’s influence, Kaminsky said: “Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.” He elaborated, explaining that they created a programmatic solution for broadcast radio “to meet the shift to audience based buying and planning spurred by digital media.”
His team collects audience insights through merging data from their digital platform, social networks and third-party data sources, which allows them to “offer marketers the same type of audience targets that they are buying from connected mediums like digital, including an audience that is made up of people with an affinity for Hispanic culture.”
And the insights become actionable through their proprietary platform, which uses a planning algorithm and cloud-based networking of their radio inventory to optimize plans. “This allows us to identify very specific and highly desirable audiences at the scale that only radio can provide,” he concluded.
Crandell, of OMD Multicultural, agreed that programmatic has had a significant affect on Hispanic targeting: “I find that most successful strategists that work within the US Hispanic space very much see the value of this vehicle and, most importantly, have been able to identify its role within the broader marketing mix.”
Crandell also noted that in her experience, it has been important to remember that programmatic should be incorporated into the strategic level, not just buying and execution: “If the use of programmatic is only executed (and decided upon) at the buying stage, marketers stand to miss out on perhaps the most valuable aspect of this vehicle – that being its ability to deliver extremely beneficial learnings on the target, as they are based on actual user behavior,” Crandell explained.
Hispanic Audience Targeting: Data Changes Everything, But Is It Accurate?
Some industry insiders are actually worried that programmatic, with all of its data, may be misleading agencies. “It’s tough now, because programmatic has made it easy for general market media properties or agency trading desks to stake a piece of the Hispanic pie courtesy of an algorithm,” Morgan lamented. “Now they can scientifically state how their algorithm reaches Latinos.” But is just reaching Latinos enough?
“We don’t doubt the capabilities, but there is reason to doubt the accuracy of hitting the target, as their targeting foundation is built on third party data sources that aren’t the most accurate,” Morgan noted.
One thing is certain: marketers are at a crossroads, and the first step in the path to truly reaching Latinos is accepting the complexity of their behavior and preferences, something that the industry has yet to accomplish.
While marketers are certainly aware of the increasing purchasing power of U.S. Hispanics, this complex demographic requires a marketing strategy that recognizes their nuanced behavior, multichannel habits and sophisticated biculturalism. This is even more true during the holidays, when trends in Hispanic shopper preferences and spending patterns are revealed all at once. We talked to Tracy Galindo, an independent consultant who works steadily with Jewel-Osco and Albertsons, and Randy Stockdale, Chief Marketing Officer at multicultural marketing firm Solex Marketing Solutions, about trends in targeting Hispanics during the 2016 holiday season.
At-A-Glance: The Hispanic Shopper
The IRI’s latest HispanicLink study revealed that there are 55 million Hispanics in the U.S. representing 18 percent of the population, with a spending power of $1.5 trillion. The study also revealed that almost 60 percent of Hispanics are Millennials or younger, accounting for 80 percent of segment growth.
And brands are paying attention: Target announced that it is increasing its spending on Spanish-language television ads by 67 percent this year while making an effort to incorporate Hispanics into its general marketing strategy instead of creating a separate Hispanic marketing plan. Target has been called out for careless mistakes in its Hispanic targeting in the recent past: Spanish-speaking Target consumers noticed that “habanero” was spelled “habañero” on one of its Archer Farms brand sauces.
Randy Stockdale, Chief Marketing Officer at Solex who has led teams that have launched well over 15 brands in the US Hispanic market, explains that when he was engaged to re-position a well-known grocery chain whose primary customer base is the Hispanic consumer, the most important objectives “included re-focusing the creative messaging, In-Store Merchandising, and all shopper marketing initiatives.” Other priorities included “integrating all communication plans to include the ever-growing bicultural segment who tends to cross-shop the most.”
Holidays Offer Wide Opportunities to Connect
The holidays offer brands a particularly unique opportunity to connect with Hispanic consumers, who feel a strong tie to seasonal holiday traditions, often thinking of it as the most important time to connect with family and loved ones through ritual and a celebration of their shared culture.
The ever growing bicultural segment tends to cross-shop the most.
Target will be running ads including “The Toycracker,” starring a young girl named Marisol, and Target’s mascot, Bullseye the dog, with a parade of toys available at the store. Another features a Broadway-style musical and two bilingual actresses, Kylie Cantrall and Isabella Russo.
Target has also announced that it is increasing its overall television spending by 21% during the holidays (it spent $9.1 million on Spanish-language and $100 million total on total market television ads in 2015).
But the months leading up to the holidays are also key, as they are used to develop strategies for the year to come. “November is not only a great time to analyze all the happenings of 2016, but to truly hone in on ideal timeframes, themes, stores, and brand partnerships for 2017,” said Tracy Galindo, a consultant to Jewel-Osco/Albertsons and owner of a small business.
For Jewel-Osco, this means sending success stories to 30+ brands for Jewel-Osco’s 9th Annual Hispanic Heritage Month program, complete with sales lift from our circular, merchandising and event activations, recapping on their Día de los Muertos sponsorship, where they sponsored and sampled at the 30th Annual Day of the Dead festival at Chicago’s National Musuem of Mexican Art, or “finalizing plans for our annual Felices Fiestas program,” through which they interact with Hispanic shoppers, over a month, during the holidays.
Galindo also laughed while referring to what the Hispanic marketing universe calls ‘El Maratón Lupe-Reyes,’: “a light-hearted way to refer to the seemingly countless traditions honored by members of the Hispanic community, starting December 12, on the Feast of our Lady of Guadalupe, running all the way until January 6, on Three King’s Day.” This includes the nine days of Las Posadas, the Nochebuena, Christmas Day and New Year, and then ends with Día de Reyes, but can even be extended to February 2, Día de la Candelaria.
Mix of Ad, Display, Experiential and Social
One of the biggest focuses of Hispanic marketers during the holidays has been how to best integrate multichannel behavior into their strategies. While Hispanics are showing particularly high use of digital channels for browsing, reviewing products and comparing prices, and are increasingly interested in convenience, they have also been revealed to enjoy the in-store shopping experience more than other shoppers.
Prioritizing convenience, Hispanics enjoy online shopping, and multichannel options like “click and collect,” which allow them to browse, order and pay online and collect the physical items in-store, are popular. But the IRI study also showed that 68 percent of Hispanic shoppers (and 7 in 10 Hispanic Millennials) say they enjoy grocery shopping versus 59 percent of total U.S. shoppers. And while 39 percent of U.S. shoppers report shopping alone, 79 percent of Hispanic shoppers go grocery shopping with someone else, such as a spouse, child or friend.
This has led to much greater mix in terms of the channels used for reaching Hispanic shoppers. Galindo explained that the Ethnic and Specialty Marketing Department at Jewel-Osco is “prepared with a multi-brand platform in place, featuring a comprehensive ad, display, experiential and social plan featuring some of the top items used for each of these celebrations” including tamale prep endcaps, month-long hot pricing, tastings of champurrado, arroz con leche and Rosca de Reyes at stores throughout Chicagoland to stay “lockstep with the community.”
2017 Forecast: A Focus on Integrating Hispanic Consumer with Digital Strategies
So what will be changing between 2016 and 2017, as more insight is revealed about this key consumer demographic? “If anything, in 2017, we’ll be integrating even more feedback from brand and broker partners, Store Directors – not to mention executive teams at Jewel-Osco – and implementing even more themed experiential events throughout the year and tying them into hot pricing, display and social initiatives,” said Galindo, who helps organize more than 70 large-scale events for clients every year. “Think Chinese New Year, Día del Amor y la Amistad, an even bigger and better Taste of Passover, Día del Niño, Día de la Madre, Italian Heritage Month, and so many others.”
One thing that Galindo and her collaborators have learned is that “sometimes, the right products and the right assortment, at the right price, can be a lot more genuine and effective than a simple bilingual or in-language welcome sign.” Sometimes all the data in the world, or the thoroughly researched digital media plan, are less effective than that which is unquantifiable: “It’s about knowing the community our stores exists in, making the right hires, putting on a local lens, finding authentic products, and helping those products shine through endcaps and special callouts,” she elaborated.
Stockwell explained that in terms of big shifts between 2016 and 2017, “it will not be so much ‘shifting,’ but implementing plans to fully integrate the Hispanic consumer in key areas such as Mass media, Digital, Social, and Shopper Marketing.”
He added that “the Shopper Marketing component will also have more of a digital presence versus just in-store or near store.” And he made note of the rise of mobile among Hispanic consumers: “Given our Hispanic consumers are more and more relying on their mobile devices, there is a clear opportunity to enhance messaging and offers through a digital platform” in 2017.
No matter what media mix and messaging a brand selects to reach Hispanic shoppers in 2017, they will all need to find a way to make that personal connection with a demographic that sees right through inauthentic messages, and highly values family, and the shared moments that so many brands strive to bring them. “Knowing how much our shoppers – especially Hispanics – value the experience, the personal interaction, the trust factor, is the sweet spot,” said Galindo.
Dish’s Sling TV promises to “take back TV” for $20 a month through live programming from your computer screen. But when it comes to catering to increasingly important Hispanic viewers, Sling TV is forming a strategy to make sure its advertising targeting capabilities and programming are finely tuned.
We spoke with Jose Romero, general manager of Sling Latino, about how the platform will be tailoring its content and ad capabilities to Latino viewers, and the launch of CUBAMAX TV, its curated channel for Cuban American audiences. It is the first American channel of its kind to offer content filmed and produced on the island.
Introducing Addressable Capabilities to Ad Inventory
While Romero asserts that at the moment, Sling does not have its own ad sales force for selling to Hispanic audiences, he says that the company expects “to introduce addressable capabilities to Sling TV ad inventory in the coming months, enabling us to reach individual Hispanic subscribers across a variety of networks.”
The company has admitted that this type of targeting is key to the platform’s business model, as they are more valuable than broadcast ads. And since ads are not exactly popular with viewers, especially on paid content, these targeting capabilities should help the company get closer to its goal: more relevancy, less advertisement.
SlingTV admits that targeting is key to the platform’s business model.
Sling Launches CUBAMAX TV
One of Sling TV’s latest announcements in the realm of Hispanic targeting is the launch of the CUBAMAX TV channel, which, in Romero’s words, will “create a cultural exchange that will both provide a window into life on the island and connect Cuban-Americans with content from their home country.”
60 percent of CUBAMAX TV’s content is generated by Cuba’s state agency RTV Commercial, while the other content consists of documentaries created by young, independent filmmakers. The channel has acquired the rights to 200 Cuban movies and will be showing two movies and as many as three telenovelas per day. Programming on CUBAMAX TV such as “Sonando en Cuba” and “Vivir del Cuento” will showcase the unique perspective of the people of the island.
The relationship between the United States and Cuba has evolved greatly since President Obama fully restored American diplomatic relations with Havana in December 2014. And the effect of this announcement was as cultural as it was political, encouraging a deeper connection between the countries, who have always been tied by the significant Cuban-American population in states like Florida.
Commenting on the effect of these developments on Sling’s decision to develop content for Cuban-American audiences, Romero says: “Since President Obama’s announcement in late 2014, we, like many companies, have been exploring a greater level of cultural engagement between the U.S. and Cuba.”
He continues to explain that the channel provides an outlet for Cuban voices and talent that had been somewhat stifled due to the previously tense diplomatic relations. “We think normalization has created a tremendous opportunity that is yielding benefits, in this case for our customers, for the Cuban population living in the U.S., and for the entertainers whose work is aired on CUBAMAX TV.”
And while this shift has already undoubtedly created many opportunities for American tourism on the island, channels like CUBAMAX TV will hopefully shed light on the magic of Cuban culture for those that cannot travel there themselves. “While not everyone gets the opportunity to visit the island, our customers can now turn on our TV and get a feel for the culture and entertainment the Cuban people have worked to cultivate,” Romero adds.
Programming for Hispanics: Not So One-Dimensional
Sling Latino has gotten one thing right already: developing programming for Hispanic audiences is no easy task, as those that fall into the ‘Hispanic’ category are by no means uniform in language preferences or taste. For that reason, Romero says that Sling has developed a variety of programming packages: “Sling offers a suite of standalone and add-on Spanish-language programming packages tailored to English-dominant, bilingual and Spanish-dominant U.S. households.”
Best of Spanish TV packages are priced at $5 more per month when combined with either Sling Orange (single-stream) or Sling Blue (multi-stream) services. They are $10 when purchased as standalone packages.
What’s more, the platform is taking regional variations into account: “We recently announced that Sling Latino is the first to launch regionally focused programming packs, beginning with CARIBE, which includes content from Cuba, Puerto Rico, and coming soon, the Dominican Republic.”
And they’re not stopping there. Romero adds: “We plan to add new regional packs in the coming months, and look forward to delivering the regional content that our customers crave in a way that allows for flexibility, mobility and personalization in their entertainment.”
What: We speak to Alejandro Roman Fuster, the Head of Sales Planning and Order Management at Pulpo Media, about how media planning agencies have begun to collaborate with political campaigns looking to target of Hispanic audiences. Why It Matters: Today, both brands and political campaigns that have strategies for making use of Big Data and analytical tools for targeting win big. Roman Fuster explains why targeting a consumer is similar to targeting a voter.
In this day and age, every campaign needs a digital partner. The world is as connected as ever, and data is constantly being generated through the many available platforms users are plugged into. To capitalize on this, Pulpo Media has created tools that aid in the analysis of that gargantuan mass of ever-expanding data to create clear insight about consumer and user behavior and preferences. For better or worse, these tools have become handy for political campaigns looking to understand their voters as well.
Media Planners: the ‘Right Match’ for Political Clients?
Pulpo Media, which specializes in online Hispanic media and audience targeting, may not have originally envisioned becoming involved in political planning, but has found that its data and targeting abilities work just as well for voters as they do for consumers. Typically, brands approach Pulpo for assistance in reaching very targeted audiences through their digital properties as well as parent company Entravision’s radio stations and television channels. Part of their jobs is to stay close to advertising agencies, who often hire them to execute their campaigns for clients.
A few years ago, during commercial conversations with advertising agencies they pitched Hispanic services to regularly, agencies wondered whether Pulpo might be a “right match” for some of their political clients. It turns out that they were.
Media companies that have specialized in Hispanic targeting are finding themselves in demand in the face of a large, thriving Hispanic-American population of 50 million people. But as that population has grown, many fail to understand how much it has evolved in terms of its makeup, education, consumption preferences and behavior. This is also very true of the Hispanic voter.
The Shifting Landscape of Hispanic-American Voters
Alejandro Roman Fuster, the Head of Sales Planning and Order Management at Pulpo Media, asserts that much of Pulpo’s success has had to do with its deep understanding of the complex, varied and evolving Hispanic culture. “The Hispanic population has been drifting from a first-generation consumer to a second-plus generation consumer who is much more acculturated, and understands American society much more than their parents and grandparents did,” Roman Fuster says. “When looking at these new generations, they are hybrids comfortable in both Hispanic settings and general market settings.”
Two years ago, campaigns acted like recording an ad in Spanish was enough.
When it comes to politics, it’s too easy to assume that all Hispanics care about is immigration, or that they will always vote Democrat. “Two years ago, campaigns acted like recording an ad in Spanish was enough,” Roman Fuster says. Pulpo’s love of data has allowed it to create a strategy that works just as well for political campaigns as it does for brands.
In the end, Roman Fuster believes that “voters are also consumers.” While the “data is not necessarily similar, the process is.” When a political client approaches Pulpo, a similar technique is used to develop a media proposal as the one they use for their regular clients. In both cases, Pulpo strives to develop data-based KPIs that are as specific as possible to drive the campaign. The variables can be treated almost interchangeably, as candidates and geographical regions “functions as a market, and voters are the consumers.”
Roman Fuster continues: “Political candidates, like brands, will have characteristics and must generate a representation of the voter/consumer that requires the same analysis as planning for a brand.” Campaigns know what they ultimately want: votes. But Pulpo’s job, as is that of any agency that targets specific demographics or audiences, is to find the best path to those votes.
Putting Data to Work
For its political clients, Pulpo actually does assign each traceable follower a specific cost to help measure ROI. In establishing KPIs, the team grapples with questions like whether or not it should focus on interactions with the banner or event attendance and whether or not there is time to develop complex benchmarks, or if cost-effectiveness will take front seat (sometimes political campaigns give them just 24 hours to create a plan). Instead of looking solely at Hispanics’ political leanings, Pulpo helps its clients look at transversal messages that cross party affiliations.
The audience team pulls public and private data from censuses, housing surveys and external data it pays to access. Then the data intelligent team crosses online behavior with offline behavior to identify trends and create propensity models that generate different profiles and potential buyer info within the target audience.
“The goal is to help our clients understand the power of data” in order to “construct a story” about these voters and their lives that can be used to create campaign messages that truly resonate. For example, “new voters may not be as ‘brand loyal’ as their more seasoned counterparts and even older voters are being more flexible in terms of whom they vote for,” says Roman Fuster. Younger Hispanics are completely mobile dependent and conduct almost all browsing on their phone.
Hispanic voters are now 60% bilingual and bicultural, so targeting through a Spanish-language ad may not be the best way to target them after all. This kind of data helps agencies know where their audience lives and target their messages and plans appropriately.
Leveraging Entravision’s Properties
Pulpo’s data analysis expertise is only one its secret weapons. Entravision’s 56 television stations and 49 Spanish-language radio stations are powerful tools for Pulpo in terms of granting clients exclusive exposure on platforms that are sure to reach Hispanic audiences.
When working with political clients, Pulpo can and does make use of some of Entravision’s premium programs, among them popular personalities like Eddie ‘Piolin’ Sotelo, El Erazno and Alex ‘El Genio’ Lucas. A Pulpo proposal for a political candidate sometimes includes interviews on Entravision’s different shows, accompanied by corresponding social media campaigns on the programs’ accounts. Not all agencies can offer this kind of exposure.
New voters may not be as ‘brand loyal’ as their more seasoned counterparts and even older voters are being more flexible in terms of whom they vote for.
Pulpo is just one example of an agency that is catering to the high demand for insight on Hispanic voters, and while it may have gotten a head start, others are probably not far behind, as they have undoubtedly found that they need to develop similar tools to keep up. Every campaign needs to be better, more micro-targeted, than the last, and with access to so much data, those willing to organize it have found that a miraculous level of detail can be attained in terms of what truly motivated human behavior – and voting habits.