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What: Sprint and T-Mobile continue to drop hints that they will indeed merge, with the latest rumors asserting that T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, with Sprint’s SoftBank Group Corp controlling 40 to 50 percent.
Why It Matters: Aside from reshaping the mobile landscape through combining two of its largest players, how would the merger affect major (and minor) carriers’ ongoing battle for the loyalty of Hispanic consumers?

Rumors about a possible merger between third-largest US wireless carrier T-Mobile and fourth-largest Sprint have intensified as unnamed sources come out to drop hints about how the deal would look.

On Friday, Reuters cited unnamed sources that claimed that while T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, SoftBank Group Corp, which controls Sprint, would come out with 40 to 50 percent ownership.

A brand shaped by its focus on innovation and offering new kinds of value through mobile technology, T-Mobile has been targeted for merger deals by both Verizon and AT&T, the first and second-largest carriers in the country, in the past. With its focus on offering flexible, low-cost plans that appeal to Hispanics, Sprint could offer T-Mobile a deeper reach into this key growth market while the new company chips away at Verizon’s pricing advantage.

For Mobile Carriers, Hispanics Are Key to Growth

The numbers don’t lie: According to Nielsen, there are 56 million Hispanics (and counting) in the United States, and 72% of them own a smartphone (10 percent higher than the national average).

And so it is no surprise that both T-Mobile and Sprint have made Hispanic marketing a priority in their own way. According to Ad Age, as recently as 2013, T-Mobile ranked seventh among the top 10 advertisers to Hispanics, with $98.7 million spent on Hispanic marketing alone in 2013 compared to Sprint, which came in at #18 on the list spending $68.6 million.

But when Bolivian Marcelo Claure took over as CEO of Sprint in 2014, things began to change. It started with him  starring in a Spanish-language Sprint commercial on Univision during the Latin Grammys broadcast that November that opened with him saying “Hola, soy Marcelo Claure.”

From there, Claure went on a hiring spree to create a team capable of leading Sprint’s battle for the Hispanic market. He started by hiring Manuel Campos, the T-Mobile account director at Hispanic agency Conill, as Hispanic marketing director for the company, and a few months later, Claure hired current marketing chief, Spaniard Roger Solé, who came to Sprint from TIM Brasil, Telecom Italia’s mobile operator in Brazil, where he was CMO.

Sprint’s Hispanic marketing strategy was to give the demographic an option that was built for their preferences and behavior: For just $100 a month, a Sprint family plan included 20 gigabytes of data. Sprint’s Boost Mobile division also released rate packages custom-designed for Hispanics: one combined calling and unlimited messaging from the U.S. to Cuba and was offered exclusively at Boost Mobile dealers in the Miami area.

In the meantime, T-Mobile launched Univision Mobile, which offered customers monthly plans that include 100 minutes of international calling to countries in Latin America and unlimited text messaging to phone numbers in more than 200 countries around the world. The service has since been absorbed into the Ultra Mobile service but was the first in a number of ambitious moves by the brand to capture this key demographic.

Merger Will ‘Coalesce Their Hispanic Efforts’

Tru Multicultural’s founder and CEO Yousef Kattan, whose past clients include T-Mobile, added that the mere amount of data they will be combining will “create an environment of intelligence” that will allow the combined company to be “smarter, efficient and ultimately more effective will be sizable.”

We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space.

“We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space,” Kattan added.

Mario Carrasco, Co-Founder and Principal of ThinkNow Research, highlighted that “Sprint has been focusing on targeting the Hispanic market seriously since 2015,” and that “their main rival in this space has been T-Mobile.” As the Hispanic demographic has been key to their battle for the third spot, Carrasco asserted that their unique strengths will complement each other with regard to Multicultural. “This merger will coalesce their Hispanic efforts by combining Sprint’s low-cost plans with T-Mobile’s branding will lead to a more effective Hispanic targeting effort overall,” Carrasco said.

Merger Will Make Space for Minor Carriers, Unconventional Services Popular Among Hispanics

One of the biggest questions surrounding the merger is how reducing the number of major carriers will affect the mobile landscape. With regard to the Hispanic market, experts seem to agree that the merger would create a unique window of opportunity for prepay segment, minor carriers, and unconventional mobile services, all of which are popular among Hispanic consumers.

Carrasco of ThinkNow predicted an increase in the adoption of simple mobile and TracFone, options that are particularly appealing to the Hispanic market. “Adoption of Wi-Fi phones is increasing, and unconventional services such as Google Fi will begin to take more of the market share,” Carrasco said.

Kattan added that prepay will likely continue to evolve and become a focus for major carriers trying to reach growing numbers of Multicultural consumers who prefer non-traditional mobile plans. “This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic,” Kattan said.

This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic.

Carrasco echoed that sentiment: “I believe these nontraditional services and carriers have more appeal to Hispanics who tend to adopt emerging technologies at a faster rate than the general population.”

With so few major carriers in the event that the merger occurs and is approved by US regulatory bodies, data and pricing wars would intensify as the “big three would fight even harder for these gross adds,” Kattan said. “Device offers will also get more competitive to help entice consumers to leave their current carriers.”

In the End, T-Mobile and Sprint ‘Are Going After Very Similar Segments’

Aligning the strategies of two large and complex operations with unique branding and identities like T-Mobile and Sprint is never a simple endeavor. “Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market,” Carrasco said.

Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market.

But their core values may be more aligned than we think. “Both T-Mobile and Sprint and their prepay services MetroPCS and Boost respectfully are going after very similar segments that value price first, but don’t want to sacrifice quality and flexibility,” Kattan explained. Aligning Verizon and T-Mobile’s core values? That would be more complicated, Kattan admitted.

In the end, both brands have unique advantages that should serve each other well as they grow. T-Mobile is a “game changer and innovator in the space; a brand truly built around the consumers’ needs that can provide value,” Kattan said. On the other hand, Kattan pointed to price, devices, and distribution as Sprint’s key claims.

If the deal goes through, an already evolving mobile market will be shaken up yet again, and Hispanic consumers will be key as carriers build strategies to adapt to the demographic’s quick adoption of new, alternative mobile technology and preference for flexible, price-conscious mobile plans.

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Multicultural consumers right now.

To subscribe to Portada’s Interactive Database of Marketers targeting U.S. consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com.

For prior Sales Leads editions, click here.

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  • Sprint

Telecom giant Sprint has built its own ad agency by putting together its own marketing unit that will handle digital ad buying and advertising creative, as well as ‘programmatic’ ad buying, search advertising and even traditional media buying – all in house. Many if not all of these functions have traditionally been handled by outside ad agencies. Sprint follows other brands’ steps including Allstate, StubHub, Unilever and Netflix among others, who have all taken programmatic in-house in recent years. Last year, Sprint launched Yellow Fan Studios, an in-house creative studio. In the past year, it has also ended its relationship with ad agencies including Deutsch and DigitasLBi Chicago. The company continues to work with ad agency Droga5 for strategy and Horizon Media for buying ads on TV and other mediums, however.

 

 

  • Buchanan’s

Buchanan’s and global Latin superstar J Balvin launched the search for Los Imparables (the Unstoppables). During J Balvin’s ENERGÍA tour, which kicks off Hispanic Heritage Month, Buchanan’s and J Balvin will be spotlighting Los Imparables (The Unstoppables) – the new generation of Latinos who are positively influencing and shaping mainstream culture – in cities around the country to bring these catalysts of Latino culture into the spotlight and celebrate their greatness. Those 21+ with a thirst to move forward, including creators, artists, musicians, and fashionistas, will be invited by Balvin to showcase their work for the opportunity to be featured on the artist’s Facebook page. Balvin is inviting those 21+ to join Los Imparables by sharing their work on Instagram for a chance to be spotlighted by him on his Facebook, including #Imparables and #EsNuestroMomento, and tag @BuchanansWhisky when posting the photo. Balvin will choose and highlight the winners on his social media channels throughout his tour. Carat is Buchanan’s media buying agency.

 

 

 

  • Univision & Rosetta Stone 

Univision Communications Inc. (UCI), the media company serving Hispanic America, has entered into a new partnership with language education powerhouse Rosetta Stone Inc., a world leader in technology-based learning solutions to debut Univision Aprender con Rosetta Stone, a new language learning program to help the Hispanic audience gain English-language proficiency. Conversely, those looking to gain proficiency in Spanish will also be able to benefit from the co-branded program. Several subscription options starting as low as US$79 for three months of access are available now on www.univisionaprender.com as well as through the Google Play and iOS app stores.Univision Aprender con Rosetta Stone is a mobile-first digital language learning solution tailored to Hispanic learners looking to learn English or Spanish. The program includes the immersive curriculum developed by language and education experts at Rosetta Stone, as well as its TruAccent™ speech recognition technology to help learners get speaking accurately right from the very first lesson.  Learners have access to a personalized skills-based learning platform, as well as numerous features including Phrasebook, Stories and Audio Companion. Various subscription options are available starting at US$79 for a three-month subscription, US$119 for a six-month subscription, US$179 for a 12-month subscription and US$249 for a 24-month subscription at launch.

 

 

  • Rakuten Group & Golden State Warrior

On September 12th, the Golden State Warrior announced they came to terms on a three-year jersey sponsorship deal with Japanese e-commerce company Rakuten. The jersey patch deal is reportedly worth US $20 million a year. During the 2017 Sports Marketing Forum in New York, Rahul Kadavakolu, Executive Director of Global Marketing & Branding, Rakuten Group, was the first person to talk about the deal, on behalf of the e-commerce giant. The brand is not only going global, but it is also making changes to its products so that each of them includes the name Rakuten, for example, Rakuten Viber, instead of just Viber. The sponsorship represents the biggest NBA jersey sponsorship contract to date.

 

NEW PORTADA RESEARCH REPORT: “Content Marketing Initiatives targeting Hispanic and Multicultural Audiences”. The report is filled with intelligence for brand marketing executives targeting multicultural consumers – the majority of consumers in many major U.S. markets –  as well as for media and marketing tech vendors. This report provides a description of 20 content marketing initiatives. Each program’s main elements are described (Brands involved, Target Audience, Owned Properties, Paid Media Program, Key Influencers) are summarized and the agencies and brand decision makers behind them are listed. Described companies include: Avocados from Mexico, Barilla, Best Western, Ford, General Mills, Hershey’s, Kellogg, Kimberly Clark, Kraft, Makita, Miller Coors, Nestle, Procter & Gamble, State Farm, Sprint, Unilever, Verizon, Vilore and Wonderful Pistachios. Buy the report here  Upgrade to “Research Plus Membership” for only US$ 999 and access this report and 9 more!

 

  • Hennessy

Hennessy, one of the world’s best-selling Cognac, and Golden Boy Promotions, the first national Hispanic-owned boxing promotional company, announced a formal partnership that brings to life the spirit of Hennessy’s “Never stop. Never settle” mantra, with content that tells the remarkable story of Saul “Canelo” Álvarez. Like Hennessy, the Mexican boxer epitomizes the importance of family and the pursuit of excellence. The integrated partnership features original content, in addition to digital micro-videos, special events, and cross-channel promotions intended to inspire others to “Never stop. Never settle.” In recognition of the millions of boxing fans that will be cheering across the globe this weekend, Hennessy recommends enjoying this Canelo-inspired cocktail while viewing at home. Hennessy is imported and distributed in the U.S. by Moët Hennessy USA. Hennessy distills, ages and blends spanning a full range: Hennessy V.S, Hennessy Black, V.S.O.P Privilège, X.O, Paradis, Paradis Impérial and Richard Hennessy.

 

 

  • Chili’s

Chili’s Grill & Bar has appointed 360i as its integrated media agency of record, Adage has reported. Chili’s has previously hired 360i as its digital marketing agency in 2016, including creative and media, following a competitive review. The Dentsu Aegis Network-owned agency will continue to handle that part of the business, but will now also field integrated planning, communications planning and broadcast planning, buying and execution for the casual-dining chain. Chili’s spent US$119 million on measured media in the U.S. in 2016, up from US$114 million in 2015, according to Kantar Media.

 

 

 

  • WPP

Holding company WPP has combined five of its brand consultancies and design agencies — Brand Union, The Partners, Lambie-Nairn, Addison Group and VBAT — to form one large global brand agency that will launch in January 2018. The new agency, which does not have a name yet, will have a combined staff of 750 people in over 20 countries, with client billings of more than US$100 million worldwide. The entity will be led by Jim Prior as global CEO and Simon Bolton as executive chairman. Back in June, WPP announced it was combining MEC and Maxus into a new entity called Wavemaker. On the same month, Mindshare absorbed Ogilvy’s Neo and in July, the holding company merged Possible into Wunderman.

 

 

NEW FEATURES TO PORTADA’S INTERACTIVE DATABASES
We have incorporated new features to the interactive database of corporate marketers and agency executives targeting U.S. consumers:
New Leads: Weekly more than 20 new leads uploaded to the Database by the Portada team as well as the contacts related to the above weekly Sales Leads column written by our editorial team.
Download the Database: Download the full Database in Excel Format.
Search Database: You can search through a user-friendly interactive Interface: Search Fields include: Name, Company/Agency, Job – Title, Address, Zip, E-mail, Accounts (Agency), Phone, Related News.

 

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What: A week ago, Univision announced its alliance with Juanfutbol to launch an exclusive soccer channel focused on millennials. Now, in an interview with Portada, Juanfutbol founder Miguel Ramírez Lombana tells us about his plans for expanding the business to a second country in Latin America.
Why it Matters: Through its alliance with Univision, Juanfutbol will do live broadcasts on Facebook in an effort to reach bilingual and multicultural Hispanic millennials who are accustomed to consuming multi-screen content, as an additional part of the company’s expansion plans.

Three years ago, Miguel Ramírez Lombana saw an opportunity to create a new sports content platform focused on soccer that would be broadcast on social media. “For many users, social media has become their main source of news,” he explains.

For many users, social media has become their main source of news.

When he launched Juanfutbol, he wanted to anticipate a trend that was already in the making. “Juan[futbol] anticipated a type of consumption (that would be done through social networks),” he adds.

In his experience, the site’s growth has been aided by the fact that it was easier to create something entirely new at the beginning of the trend, adopting new technologies and platforms, than by turning around an already existing medium that needed modernizing.

Juanfutbol was created in 2014 to entertain millennial fans, who have changed the way digital media is used. The brand has grown considerably since its inception and become very popular in Mexico, where it reaches millions of young soccer fans through all of its social and digital platforms.

“We struggled the first few months because nobody was monetizing content through social media,” but it was worth the perseverance and effort, he says.

We struggled the first few months because nobody was monetizing content through social media.

Now, Juanfutbol is a well-recognized outlet among the Mexican public, as well as Hispanic consumers in the United States. Armed with this success, it was time for the entrepreneur to “experiment” with a new project, and Univision turned out to be the right partner.

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juanfutbol“Univision is very invested in soccer. For them, this sport is part of their core (content) strategy”, explains Ramírez Lombana. That is why, through this new alliance, a new sports news unit will be created to reach bilingual and multicultural Hispanic millennials, whose use of mobile devices, digital videos, and social networks exceeds that of the general population.

“Univision has definitely dominated the Spanish-speaking Hispanic market, but the children of this population are bilingual and are accustomed to consuming (content) in English,” says the entrepreneur. Therefore, it was decided that the channel would do live broadcasts on Facebook featuring primarily English content, with a focus on creating original content on social media for soccer fans.

When asked why they decided to use Facebook instead of Univision’s platforms or even Juanfutbol itself, Ramírez Lombana explained that the company was convinced by FB’s strong appeal among young people and especially among Hispanics. In Mexico, for example, Facebook is still the most widely used social network.

Univision DeportesIn addition, thanks to this alliance, a customer can now buy advertising on Univision or delve into social media with Juanfutbol. “Both platforms complement each other very well,” he says.

Now, as part of its expansion, Juanfutbol is preparing to fan out across the Latin American market in partnership with Univision. Ramírez Lombana revealed during the interview that the company will be launching the platform in a third country in the coming months. However, he was not yet able to give specific details about this new market.

As part of its expansion, Juanfutbol is preparing to fan out across the Latin American market in partnership with Univision.

This summer, Juanfutbol will also debut a revamped and improved mobile application.

What: Univision Communications Inc. (UCI) unveiled its 2017-2018 programming line-up. Tapping into Hispanic’s passion for soccer is a key strategy for the largest Hispanic media company.
Why it matters: While Univision has lost some of its edge in the ratings vs. its rival Telemundo, the network presented itself at the upfronts in NYC touting key passion points of its audience. Hispanics passion for soccer plays a key role.

To date, Univision estimates its full portfolio reaches on average 108 million unduplicated media consumers each month – a 34% year-over-year improvement. As a strategy to create unique opportunities for marketers to deliver results leveraging viewers’ passion, the Company has decided to highlight the five passion points driving audience engagement: Soccer, News, Family, Music, and Drama.

“From more catered programming to improved access to content, we have enhanced our diverse portfolio to meet the needs of not only the next generation of American youth but also our valued clients. Our strategy continues to center around connecting and engaging with the audiences of the future and maintaining our unwavering commitment to authenticity and excellence,” said Randy Falco, President and Chief Executive Officer of Univision Communications.

We have enhanced our diverse portfolio to meet the needs of not only the next generation of American youth but also our valued clients.

According to the broadcaster, Univision Deportes has solidified its role as the home of soccer and strengthened Univision Deportes Network’s (UDN) position as the No. 1 Spanish-language sports network in the U.S. This has allowed Univision to deliver three times more soccer viewing opportunities than any other broadcaster.

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In 2016 alone, UDN primetime viewership grew by 33% among adults 18-49. In addition, five out of the top six most-watched live sporting events among Hispanics – in any language – were soccer matches broadcast on UDN.

In 2016 alone, UDN primetime viewership grew by 33% among adults 18-49.

This year, UDN will continue to deliver more soccer coverage than ever before, expanding on the Company’s position in the space and showcasing the importance of the sport in Hispanic culture. Starting in the summer of 2018, Univision Deportes will begin airing the UEFA Champions League. The matches will air exclusively in Spanish across UCI’s linear and digital platforms. Also, in the summer and fall of 2018, Univision Deportes will bring fans the UEFA Europa League and UEFA Nations League, respectively, across its platforms.

As part of its new programming, Univision Deportes will bring extensive coverage of the 2018 FIFA World Cup in Russia. Complementing the live action on the field, the channel will air a primetime talk show, live multiplatform shows, a second-screen viewing option, and more. It will also provide a slate of pre- and post-game expert analyses and complimentary programming across all Univision platforms.

With many matches airing from Russia at off-peak viewing hours, Univision Deportes will air an unique primetime show that will not only recap that day’s action but will merge the best of sports and entertainment.

The PortadaLat Awards have announced the 2017 Golazo Award nominees. Voting is open through May 19 to determine the finalists who will battle it out in front of a jury at PortadaLat on June 7! Below are the 16 shortlisted nominees. Peer-to-Peer recognition is a foundation of the PortadaLat Awards and it’s up to you to vote on which candidates move on to the finalist round. Check out the nominees and vote for your favorite now!

Don’t forget to register to join sportscasting celebrity Fernando Fiore, industry leaders and game changers in Miami, June 7-8 for the ninth annual #PortadaLat Conference. The event kicks off on June 7 with a spotlight on the significant role of soccer marketing in the U.S. and Latin America. Learn more about Portada’s new ticket options.

Agencies, including PR agencies, brand marketers, and media properties were invited to nominate campaigns, concepts and ideas that substantially engage consumers in the U.S. or Latin America through soccer content. These are the nominees:

” MLS “”Stand as One Campaign”/Brooklyn Brothers “

https://pbs.twimg.com/profile_images/790548785864867841/414P_m13.jpgThe campaign featured creative elements including television spots, digital and print advertising, in-venue visibility, social content, and storytelling, and was rolled out during the 2016 MLS season. The campaign ran with spots across all MLS’ broadcast partners, along with significant online activation. “Stand as One,” created collaboratively by The Brooklyn Brothers and MLS’ in-house marketing and creative team, was designed to elevate the movement and the sport of soccer in North America. It highlighted the electric and unifying fan and stadium experience that is unique to MLS’ core, as well as the world-class quality demonstrated by its players every week.The campaign was supported by all five of MLS’ national broadcast partners: ESPN, FOX Sports, Univision,

The campaign was supported by all five of MLS’ national broadcast partners: ESPN, FOX Sports, Univision, TSN and RDS, as well as all international and regional MLS broadcast partners. In addition, MLS digital channels, including MLSsoccer.com, MLS Video and MLS’ social media, played a leading role in the campaign. The campaign captured the true essence of MLS by celebrating the stories of MLS’ clubs and local markets. The visual elements reflect the authenticity, unity, and excellence of Major League Soccer, its players and its supporters, who combine to define the sport in the United States and Canada.


“My Inter Jersey” / Gravity

Fans of Inter love to wear their team colors loudly and proudly. Digital natives enjoy generating their own content, especially if they can put their name on it. Our goal was to drive awareness and sales of the new Inter Milan jersey by Nike.

Based on this insight, Gravity proposed to create a web platform that would enable fans to create their own personalized wallpapers for devices depicting the new jersey design.

We targeted fans on social media that re-directed them to a microsite to create personalized jersey. To incentivize fans to purchase the new jersey, the first 10 thousand participates were provided with a discount coupon to buy the jersey from Nike.

Launched in mid-November, it has already attracted more than 24,000 fans from 155 different countries. There are over 12,800 newsletter subscribers and thousands of social mentions and positive sentiment.

Link to Campaign/Brand.


AT&T / MNT / The Marketing Arm

AT&T / MNT / The Marketing ArmIn efforts to connect with Hispanic Millennials, The Marketing Arm (TMA) launched the Expresa Tu Pasión soccer campaign, a collaboration between AT&T and the Mexican National Soccer Team (MNT). This campaign engaged Hispanic Millennials, both socially and in the real world through exclusive experiences and activations. To amplify the program, TMA created the “AT&T Expressions” app. A digital platform, which consisted of customized emoticons that brought soccer fan excitement to life. By using these emoticons, AT&T was able to easily interact with Hispanic Millennials in stadiums, music venues, social media channels, and AT&T retail stores nationwide.

The MNT consumer experience included Retail and exclusive VIP events with MNT legendary players, an interactive zone during the pre-game tailgate parties, Fútbol Fiesta, and leveraged the existing relationship with popular Univision sportscaster Adriana Monsalve as a celebrity guest during every match.

Link to Campaign/Brand.


FC Bayern Audi Summer Tour 2016 / FC Bayern Munich LLC

FC Bayern Audi Summer Tour 2016 / FC Bayern Munich LLC.FC Bayern Munich opened an office in New York (2014) to grow our fanbase and better connect with fans in the U.S.; bringing them closer to the club they love. In three years we’ve seen interest in Bayern grow from 13M to 27M followers.

The 2016 U.S. Audi Summer Tour campaign gave fans that haven’t been to Munich the chance to see their team on home soil. Fixtures in Charlotte, Chicago and New York, appealed to general sports and soccer fans, including the large Hispanic Bayern fanbase and population there.

Results:
• Attendance – 180,000+ for three games
• 340M+ people reached via social media
• 43.7M interactions & video views on our social channels
• 12M+ watched TV broadcast
• 65K increase in CRM database, 18K increase in newsletter subscribers
• 43 media appointments
• 20 player activations with partners

Link to Campaign/Brand.


Inter Milan / Gravity

Inter, the Milan-based professional Italian football club, was taking part in the U.S. International Champions Cup, and hoping to make a splash in the U.S. marketplace.

To broaden its reach, Inter worked closely with Gravity to create a campaign that would increase brand relevancy into the lives of U.S. soccer fans.

The campaign featured a video montage of past, and epic, goals, that showcased Inter’s legendary heritage. To further enhance relevancy, these videos used American NBA/NFL/MLB commentators from sports outside of soccer. When Inter was shown scoring a goal, the commentator called out “touchdown” or a “home run” in an effort to “teach America how to cheer.” The unexpected combination of European and American sports promoted Inter in an exciting and engaging way that people (especially soccer fans) across the globe understood.

The four videos were aired globally across Inter’s social media channels as well as boosted with paid social.

Link to Campaign/Brand.


Johnson & Johnson/MLS/U.S. Soccer

Johnson & Johnson/MLS/U.S. SoccerJohnson & Johnson announced a multi-year extension of its sponsorship as official healthcare partner of MLS and US Soccer. The sponsorship was first activated in 2015 and this is the second time the consumer brand renews its sponsorship.Johnson & Johnson Consumer Brands will be integrated throughout different platforms including digital, broadcast and video content, as well as in-stadium exposure. Johnson & Johnson will also continue to create on-site activations during relevant MLS events, such as the All-Star Game, which is presented by Target and the MLS Cup. For the US Soccer partnership, the healthcare company will sponsor both male and female senior and youth national teams. Johnson & Johnson will use its partnership to expose many of its different brands on the field. It will also integrate it into its marketing strategies, including the Johnson & Johnson Donate a Photo app, through which people can connect with causes that they care about and other key platforms and partners.


Pepsi “Momentos”/UEFA Champions League/BBDO

Pepsi™In 2017, in its second year as a sponsor of the Union of European Football Associations (UEFA). Pepsi launched its first global campaign based on a “Moments” creative platform. The campaign is active in nearly 75 countries including most of Latin America and the U.S.
The #PepsiMoment campaign, which features football/soccer stars Sergio Agüero, Alexis Sánchez and Vincent Kompany, looks to build on and associate the Pepsi brand with fans’ excitement in the lead-up to the UEFA Champions League Final on June 3 in Cardiff, Wales. Taglined “Show How Much It Means,” the campaign celebrates the sport’s fans by depicting their passion before, during and after matches. Pepsi posted creative from lead agency AMV BBDO on YouTube, including a 60-second anthem video that’s a montage of game-related moments, called “We Know How Much It Means”; several 10-second videos excerpted from the anthem; and short videos featuring the three brand-rep athletes talking about their favorite football moments. The campaign spans “always-on, exclusive content” and shareable social media creative, including fan-generated content. The campaign lives on Facebook, Instagram Stories, and Snapchat. Digital elements launched this week in the U.S. and most of the other nearly 75 countries targeted for the campaign, a brand rep reports. TV spots are also broadcast in most of those markets.

Link to Campaign/Brand.


Scotiabank/F.C. Barcelona

Scotiabank JamaicaFC Barcelona and the FC Barcelona Foundation announced an official partnership with Scotiabank that designates the Canadian bank as the Official Bank of FC Barcelona in Latin America and the Caribbean. This agreement will allow Banco Colpatria, Scotiabank’s Colombian partner, to sponsor youth-focused programs in Colombia, as well as participate in events and offer soccer experiences to its clients. Because it will support young people from Colombia through various programs sponsored through Banco Colpatria. The winners of the Scotiabank-organized championship will be able to travel and attend training events in Barcelona, Spain. Scotiabank, in association with its Colombian partner Banco Colpatria, will host a four-day FutbolNet Festival, in which a thousand young players will train and learn important sports and life skills.


 

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What: Telemundo, the official Spanish-language broadcaster of the 2018 FIFA World Cup in Russia, has selected Anomaly to lead the strategy and creative for the broadcast of the event.
Why it matters: After being broadcasted on Univision for over 40 years, the FIFA World Cup found a new Spanish-language rights holder in Telemundo. The network’s sports division, Telemundo Deportes, is one of the leading providers of sports content in Spanish in the United States.

As of today, Anomaly’s New York office will lead the strategy and creative for the broadcast of the 2018 FIFA World Cup in Russia for Telemundo. Meanwhile, the network prepares to broadcast the FIFA Confederations Cup Russia 2017 this summer.

Nominate your candidates! Call for Entries: 2018 Golazo International Soccer Award!

Giovanni Villamar
Giovanni Villamar, Managing Director at Anomaly. (Photo: LinkedIn)

After signing a deal in 2011, Telemundo has become the official Spanish-language home of the 2018 FIFA World Cup in Russia. Leaving Univision out after 40 years.

Given Anomaly’s approach of weaving Latino cultural insights into everything it does, it only makes sense for Telemundo to choose it. The agency also won the 2017 Ad Age Agency of the Year award.

“This is continued evidence, of our mission to make Anomaly a company that can credibly and relevantly communicate with everyone in America. Equally, our progressive view of the Latino audience is aligned with Telemundo’s mission of representing an authentically Latino-American experience,” said Giovanni Villamar, Managing Director at Anomaly. 

Founded just over 10 years ago, Anomaly has offices in Los Angeles, New York, Toronto, London, Amsterdam, and Shanghai.

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English-language soccer broadcasting is becoming more relevant in the U.S. for everyone involved: fans, broadcasters, soccer teams and brands. NBC, Univision Deportes, Turner, BeINSports and others are jumping at the opportunity.

On February, Facebook and Univision announced a partnership by which the social media platform would start broadcasting Mexican Liga MX live soccer matches in English and a similar agreement was struck for MLS matches.

Rafael Ramirez
Rafael Ramírez, Chief Creative Officer at Newlink. (Image: LikedIn)

“Broadcasting soccer in English responds to a dynamic in our bilingual Hispanic fan which is English-dominant,” explains Rafael Ramírez, Chief Creative Officer at Newlink.

“We need to acknowledge that our audience is bi-national and bilingual,” adds Juan Carlos Rodríguez, president of Univision Deportes. “Mexican and Latino children don’t want to speak Spanish anymore. Through socio-economic and demographic studies, we discovered that they play soccer since they were kids, but they did it in English. Their switch has changed, they want to watch El América and Las Chivas, but they want to listen to it in English.”

Soccer continues to be the number one sport for Hispanic audiences, but the way it is consumed is what has changed.

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In addition, soccer is becoming more popular among English natives. According to Ramírez, soccer has become the favorite sports for teenagers in the U.S., independently of their culture.

Mexican and Latinos’ children don’t want to speak Spanish anymore.

In the annual High School Athletics Participation Survey 2015-2016, conducted by the National Federation of State High School Associations (NFHS), soccer came in in fifth place in terms of number of participants, with 440,322 young men playing the sport.

Soccer Teams want the Attention

Due to the increased interest in soccer of English-dominant audiences in the U.S., Mexican soccer teams are also looking to sell their rights for English-language broadcasts.

Esteban de Anda
Esteban de Anda, Commercial Alliances and Communications Director of Xolos. (Image: LinkedIn)

“We urgently need sports anchors for radio and TV to give audiences the chance to listen to our game match broadcasts in English. We need to take this into account when broadcasting our games in the U.S.,” said Esteban de Anda, Commercial Alliances and Communications Director of Xolos, Tijuana’s soccer team.

A marketing executive at Club America, who asked to remain anonymous, explained that English-natives represent a relevant opportunity for the team, but the broadcasters are the ones who choose how to use their soccer rights. “The U.S. is a relevant market for us, but it is the broadcaster who chooses how to use our rights over there.”

Broadcasters pay more to a university in Albuquerque for their English-match rights than for ours in Spanish, although in terms of investment return we give them much more money.
Jose Luis Higuera B.
José Luis Higuera, Grupo Chivas Omnilife’s CEO. (Image: Twitter)

For Grupo Chivas Omnilife’s CEO, José Luis Higuera, it is very clear that the money is where the English-spoken games are. “It seems that even cricket has a higher budget than Chivas. Broadcasters pay more to a university in Albuquerque for their English-match rights than for ours in Spanish, although in terms of investment return we give them much more money.”

Liga MX still has the overall highest rating regardless of language.

If switching their broadcasts to English will let the teams get more investment, both from broadcasters and brands, then this definitely represents an opportunity for soccer teams.

According to Vicente Navarro, Vice-President of Product Development at marketing agency AC&M Group, about two-thirds of all the games broadcasted in the U.S. are broadcasted in English. “There are plenty of examples of English language soccer on TV showing really good numbers. NBC and Premier League has been a great success, and numbers for properties like Bundesliga and MLS keep getting stronger. However, Liga MX still has the overall highest rating regardless of language.”

Broadcasters agree on the opportunity

Although English-language broadcasts only represents 3% of Univision’s audience, Rodríguez admits the numbers keep growing. “It isn’t a trend jet, but it is a proof of it working.”

This explains why Univision is making strategic alliances with Facebook to broadcast LigaMX games in English.

Michael Neuman_Scout Sports and Entertainment
Michael Neuman, the EVP and Managing Partner at Scout Sports and Entertainment.

But not only Mexican-league’s games are relevant to English-natives. “There used to be a pretty strong influx of Spanish-language soccer games being broadcasted to the U.S.,” explains Michael Neuman, the EVP and Managing Partner at Scout Sports and Entertainment. Now we are seeing NBC making an enormous effort to bring Premier League soccer from the UK into the U.S. during season, on weekend mornings. They are really trying to train the American soccer fan that is seeking that experience.”

The audience is there and it is growing. There is definitely an interest on behalf of broadcasters to exploit the opportunity. A great example is Turner, which in February acquired the UEFA Champions League English-language media rights, starting in fall 2018, after 27 years without carrying any soccer programming. The company will pay more than $60 million annually for the rights, outbidding FOX and NBC.

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“The ability for an English-speaking soccer fan to see high quality games has never been as accessible as it is today,” Neuman ads.

What brands are missing

Vicente Navarro
Vicente Navarro, Vice-President of Product Development at marketing agency AC&M Group (Image: Twitter)

“For us, English-language properties are always something we recommend to our clients if the target market makes sense. We buy media with FOX, NBC, BeIN Sports and others regularly, because we know there is a growing viewership and we have to be talking to them,” says Navarro.

We know there is a growing viewership and we have to be talking to them.

According to Rodríguez the opportunity is great, but brands are still missing out because of their local strategies. Mexican brands should take more advantage of their binational businesses. “Comex, for example, has business both in Mexico and in the U.S., they should be able to pay soccer sponsorships in both countries.”

To this, Navarro ads that “some brands might want to stick to Spanish-language only but for most having a mix of both is a better approach.”

Soccer and Sports Marketing content will be very important at Portada’s major  PortadaLat event on June 7-8 in Miami.
Programming will include:
THE GOLAZO 2018 SOCCER WORLD CUP CAMPAIGN PITCH:
JURY: Mike Tasevsky, SVP of U.S. Sponsorship at MasterCard
Felix Palau, VP at Tecate, Heineken
Ed Carias, Sr. Brand Manager at el Jimador Tequila – North American Region, Brown-Forman
(Shortlisted candidates will be voted on by Portada’s audience in May.)
DESCRIPTION: Nine shortlisted nominees for the Golazo 2018 Soccer Marketing pitch battle it out in front of a jury! Who will come out on top?
HOW BRANDS SHOULD LEVERAGE SPORTS CONTENT
Mike Tasevsky, SVP of U.S. Sponsorship at MasterCard
Felix Palau, VP of Tecate at Heineken
John Alvarado, VP Brand Marketing at Crown Imports
Ed Carias, Sr. Brand Manager at el Jimador Tequila – North American Region, Brown-Forman
DESCRIPTION:
Sports marketing experts discuss opportunities for brands to leverage sports content in order to better connect with the U.S. and Latin American consumer.
HAPPY HOUR IN HONOR OF THE LAUNCH OF PORTADA’S SPORTS MARKETING PROGRAM
Enjoy a glass of wine and toast to the launch of Portada’s new sports marketing initiative. Register at early bird price here!

The just ended first quarter of 2017 was certainly eventful for politics and marketing. 7 essential insights  that impact your multicultural marketing  business. Questions we answer: Is Univision back on track?; Trump’s impact on Hispanic advertising, Are agencies winning multicultural accounts…and more.

1. Is Univision back on track? Well….

Early in January  the Federal Communications Commission announced that it would  allow foreign ownership of Univision to exceed the mandatory 25% ceiling up to 49%.  As a result of the ruling, Televisa increased its stake to 40%. The larger Televisa stake also allows both companies to work closer together and they announced  an expansion of their relationship by unifying both of their content development and production efforts with Isaac Lee becoming Chief Content Officer of both Univision and Televisa. The Televisa deal provides breathing room on the financing side (Univision has a high debt load). But the company is still facing substantial headwinds, excepting perhaps its Univision Deportes unit, in its main business of Spanish-language broadcast ad sales. Are Univision investors including Saban Capital Group, Madison Dearborn Partners, Providence Equity Partners, TPG Capital, and Thomas H. Lee Partners going to be able to recover their investment at the US$ 12.5 billion valuation they bought Univision back in 20017? Very unlikely, if we look at Univision’s current growth rate and the current stock market valuations for media companies.

2. Trump’s Impact on Advertising Expenditures Targeting Hispanics…..

donald_trump_8567813820_2No one is going to say this openly, but first quarter sales at most Hispanic broadcast and radio companies have not been great (BTW: Check out how Radio and Broadcast company Entravision is “buying growth” with the recent acquisition of digital advertising company Headway).
President Trump’s comments, and intended new legislation, about immigration and the deporting of undocumented immigrants have substantially increased the uncertainty of that sector of the Hispanic population. Some advertisers that target this Spanish-dominant sector of the Hispanic population have reduced their spend.  Even in the mobile world, we have heard that first quarter activity of Hispanic inventory at mobile exchanges was relatively low.

3….but ObamaCare Lives On and so Does Health Care Marketing to Hispanics…

House majority Speaker Paul Ryan said it two weeks ago after the Trump’s administration healthcare bill defeat: “Obamacare is the law of the land” and will remain so “for the foreseeable future.” This also implies that 2017 (Hispanic) Healthcare marketing will remain in place and health care solution providers like Emblem Health, (check out our interview with CEO Karen Ignani) and others will keep their marketing plans.

We are revealing the  agenda of the ninth annual edition of PortadaLat in Miami on June 7-8, 2017.
Portada has been the leading source of expert analysis on the US multicultural and Latin American marketing and innovation spaces since 2003. For the 9th annual edition of PortadaLat our team is gathering a unique set of key decision  makers and thought leaders in one place to share insights, brainstorm solutions and debate the future of marketing technology, digital platforms, brand marketing and more. Register at early bird ticket (deadline April 14!).

4. …and Agencies Continue to win Multicultural Specific Accounts

While some major CPGs (P&G, Kellogg, General Mills) have been cutting marketing expenditures (and  Hispanic/multicultural has been one of the first line items to be cut), other blue chip companies are putting resources to work to target the Hispanic consumer. E.g. We hear that Atlanta headquartered PM3 just won the Paychex Hispanic account. A major executive at a big four ad holding company also tells us about renewed interest of major companies in the Hispanic market opportunity.

5. High Growth in Native

Photo: Xosé Castro. Under CC Licence.
Photo: Xosé Castro. Under CC Licence.

Native advertising is growing at a high rate and there are more solutions that tap this opportunity from a programmatic and scalable standpoint (e.g. see Headways’s  introduction of a Spanish-language native ad marketplace and Kickads recent launch of a mobile SSP for Spanish-speaking markets.

6. Sports, a Growing Passion Point

Millennial Marketing efforts, often are related to sports content. For instance Kellogg did a deal with the MLS for sports content. Sports championships also have the allure of “appointment viewing” be it over broadcast or streaming and the content be amplified via paid and organic social efforts.  With programmatic dominating the digital display ad space, there is also a shift of more customized efforts using influencers and content marketing services through sponsorship deals.

7. Multicultural Marketing as a Base for Cross-over General Market Efforts (Buchanan’s and Tecate)

1 - J Balvin and Buchanan’s “Es Nuestro Momento Ft. J Balvin” contest“Buchanan Whisky Scotch was focused on the Hispanic market and now they are expanding their targeted consumer base to the overall market. They have defined the blended scotch whisky category, which is declining in size, but they are breaking through because they focused on the Hispanic market,”  a brand marketing executive for a major alcoholic beverage brand  recently told Portada.  Similarly, another alcoholic beverage, Tecate in 2017 is crossing over to the general market and now is one of  the four top brands that beer behemoth Heineken is marketing in the U.S. (Dos Equis, Stromboli Cider and Heineken are the other three). BTW: Don’t forget that Mexican imported beers are the fastest growing category in the U.S. beer market.”

 

What: José Luis Higuera, CEO of Club Guadalajara, announced that his team would not return to television, neither open nor cable.
Why it matters: In 2016, the Chivas de Guadalajara club did away with broadcasting their matches on television to focus exclusively on their own streaming platform and a few alliances with Claro and Cinépolis.

JAV_5197
Jose Luis Higuera, CEO of Club Guadalajara.

“There is no way Chivas will return to television,” said Jose Luis Higuera, CEO of Club Guadalajara, during his presentation at the 2017 Sports Innovation Summit (SiS) in Mexico City.

After a briefing in which the club’s general manager complained about the low amounts that brands pay to Mexican teams compared to European clubs, he explained that although the Chivas TV online platform still had flaws, the team would not be broadcasting their games again on Mexican TV.

Instead of returning to the traditional model of selling broadcast rights to the big TV networks, Higuera talked about creating alliances with new outputs such as the big movie theaters. Late last year, Cinépolis entered into an alliance with Chivas TV to include its matches on the OTT platform owned by the Mexican film company, Cinépolis Click.

In addition, Higuera sees good opportunities in broadcasting his team’s live matches on the big screen. “It’s already been done with Champions League and also the NFL,” said the club owner, whose soccer team is 100% composed of Mexican players.

Since its departure from open television, the Chivas club has received criticism for charging its fans for viewing the games on a platform that not everyone has access to and is also plagued with many flaws. However, Higuera is convinced that the only way to improve the team is through a greater injection of capital. This is just one more effort to bring revenue to the club.

Although he was not very clear about the launch dates for Chivas’s new alliances, he emphasized that the team would not be returning to the small screen under any circumstances.

Contrary to Higuera’s strategy in the Mexican market, Juan Carlos Rodríguez, President of Univision Deportes, also stated during the SiS that Chivas signed on for another year with the television station to extend its sale of TV rights to the U.S. market until 2018.

What: Carlos Slim is planning to launch a 100% Mexican channel aimed at Mexican audiences in the United States, in late 2017. Nuestra Vision will be launched by Slim’s latAm cell-phone company America Movil’s unit Publicidad y Contenido Editorial to target 35 million Mexican-Americans, the largest segment of the U.S. Hispanic audience.
Why it matters:  Mexican Americans amount to 70% of the Hispanic population and continue to be a key audience segment. Slim’s America Movil (Publicidad y Contenido Editorial) could become a significant competitor to Univision (of which Mexican Televisa is a substantial competitor) and NBC’s Telemundo. Azteca America is another player in the Mexican-American TV market.

Telecommunications tycoon Carlos Slim is planning  to launch a 100% Mexican channel aimed at Mexican audiences in the United States, in late 2017.

The channel, dubbed Nuestra Vision (“Our Vision” in English), will be positioned as a direct competitor of well-known hispanic broadcasters such as Univision and Telemundo. Univision, which reaches  97% of Hispanic households in the U.S., announced that it would expand its relationship with Mexican media company Televisa this week.

Nuestra Vision will be launched by the America Movil unit Publicidad y Contenido Editorial. América Móvil, the largest cellular phone company in Latin America, is owned by Slim and run by CEO Victor Herrera and VP Stephano Herrera.

“Nuestra Visión is focussed on Mexicans, made by Mexicans and transmitted from Mexico,” said the narrator in a promotional video.

Nuestra Visión will air news, movies, sports highlights and will aim to be “100%” Mexican and in support of Mexico’s heritage. Through this content, the company is planning target 35 million Mexican-Americans, the largest segment of the U.S. Hispanic audience.

“Because we know their preferences, customs, entertainment and communication needs, we are able to provide customized and authentic content,” CEO Víctor Herrera said in a statement.

The channel, which will be transmitted from Mexico, is “currently open to broadcast as a DTT [Digital terrestrial television] affiliates across the U.S. interested in joining them to reshape the landscape of Hispanic media,” stated a company spokesperson.

The channel will launch in a year of great tension between the U.S. and Mexico triggered by the new president Trump. Slim had suggested the candidate’s economic policies could “destroy” the United States, while Trump accused Slim of orchestrating unfavorable coverage of his candidacy.

For the moment, the company wont reveal further details on its affiliates and distribution plans.

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As the US-Hispanic demographic evolves and grows, multicultural strategists and media planners are faced with the challenge of connecting with an audience 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 Hispanics? 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.

Spanish Language Not A Strategy Anymore

There is one definite conclusion among multicultural 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.

Asten Morgan
Asten Morgan

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-omd
Ana Crandell, Group Account Director at OMD Multicultural

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 media 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.”

Lucia Ballas-Traynor, EVP of Sales at Hemisphere Media Group
Lucia Ballas-Traynor, EVP of Sales at Hemisphere Media Group

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.”

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

Brian Kaminsky, President of Programmatic and Data Operations at iHeartMedia
Brian Kaminsky, President of Programmatic and Data Operations at iHeartMedia

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.

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.

Yesterday’s announcement of the FCC, by which the U.S. regulator allows foreign ownership of Univision to exceed the mandatory 25% ceiling up to 49%  is major news. As a result of the ruling, Televisa will increase its stake to 40%. 6 ways this may impact the largest media company targeting Hispanic audiences in the U.S and the multicultural marketing space.

1. A “White Knight” Rescue for Univision

descargaThe FCC ruling is a big relief for Univision. “Without this ruling, Univision would remain cash strapped, hindering its ability to pull itself out of the current ratings slump,” Court Stroud a long time Hispanic TV executive tells Portada. “The company would continue to decline, either divesting divisions or holding a fire sale. The FCC decision is a white knight rescue for Univision,” Stroud adds.

2. Televisa gets Effective Control of Univision

televisaBy swapping debt into stock, the Mexican media giant Televisa now is by far the largest shareholder in Univision. In addition to the sizable economic and political interest the Mexican broadcaster has in Univision, it also gets significant royalties from Univision’s Spanish-language media sales. Televisa supplies about 35% of Univision’s television programming and more than half of its content across other platforms. In fact in a MOU (Memorandum of Understanding) with Univision of July 2015, Televisa negotiated higher royalties for 2018 and beyond. “Effective January 1, 2015 and through December 2017, the royalty rate on substantially all of Univision’s Spanish-language media networks revenue is 11.84 percent. Starting January 1, 2018, the royalty rate will increase to 16.13 percent.’ Televisa has a tremendous vested interest in Univision’s growth (even more if we take into account that Univision’s revenues are in dollars while the Mexican peso – Televisa is a Mexico City headquartered company  has seen a substantial devaluation since Trump became president-elect in the U.S).

3. More Resources to Invest in Programming that Specifically Targets U.S. Audiences

Univision’s longtime rival Telemundo has seen gains in its prime-time lineup. This is attributed to the fact that Telemundo specifically invests in content targeting U.S. Hispanics. Televisa Spanish-language programming is mostly targeting the Mexican consumer and re-aired in the  U.S. Televisa now has an increased incentive, because of its higher stake in Univision, to produce content for Univision that specifically targets the U.S. Hispanic consumer, including bilingual and English-dominant audiences. More and better content in the U.S. Hispanic TV and video markets should provide better options for the Hispanic consumer and beyond.

4… and  for Marketing the new U.S. Sports Broadcast Rights of Mexican Soccer Clubs

Seleccion Mexicana de FutbolWhile Univision lost to Telemundo the 2018 and 2022 World Cup broadcast rights (or it just didn’t want to pay as much), it still has a very sizable amount of broadcast rights including UEFA match rights as well as MLS and Mexican National Team performances in the U.S. In fact, it is well-known in the market that Univisioin recently bought U.S. broadcast rights of several Mexican Soccer Teams from Azteca America (including those of Atlas, Santos Laguna, Monarcas  de Morelia and Club Tijuana, Azteca will keep the rights for these clubs in the Mexican market).

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5. Less of a Debt Burden for Univision …

2013 ChallengesIn addition to a somewhat lackluster rating performance, what mostly has plagued Univision over the last few years is its very high debt load (US$ 9.3 billion at the end of 2015). This is the result of the 12.3 billion LBO (Leverage Buyout) of 2006, done at the top of the  market, which was led by financier  Haim Saban and other private investor groups. Struggling to make payments the company cut back on programming and late last year announced staff cuts of approximately 250 employees. Now with the increased Televisa stake and less debt, Univision’s financial freedom has increased.

6…. and less Pressure for an IPO, which Becomes less Likely

With the increased Televisa stake and investment Univision has less of a need to look for financing at events like an IPO. At current stock price levels of major U.S. broadcasters (depressed due to cord cutting and  other factors), Univision’s IPO price would be way below the US $ 12.3 billion valuation of the 2006 LBO. In fact, under this new scenario it is very unlikely that an IPO will happen anytime soon. However, in today’s press release Univision still talks about an IPO: “The FCC’s decision will enable Univision to accommodate increased foreign investment that may result from share purchases by the public in an IPO while enabling Televisa (an existing investor in, and business partner of, Univision) to increase its current equity stake in the company.”

What: The Federal Communications Commission (FCC) has decided that it will allow foreign investors to own equity in Univision beyond the mandated 25% cap on foreign ownership in U.S. radio and television companies, Radio and Television Business Report reveals. Foreign investors will now be able to own up to 49% of Univision’s stock and voting rights.
Why it matters: The FCC announcement opens the way for Televisa, a major Mexican media company, to increase its stake in Univision to 40% from its current 22% ownership. Televisa will do so by converting the Univision debt it owns into stock.  As a result, Univision’s sizable debt load will be reduced and it should be able to put more resources to strengthen its programming, which lately had lost ground against competitor Telemundo.

In July 2016  Univision requested the Federal Communications Commission (FCC) permission to increase Televisa’s stake in Univision from 10% to 40%.
The FCC now has granted permission to increase that stake to 40%. (Although it is not clear whether Televisa already holds a 22% stake as a result of a MOU with Univision announced on July 2, 2015.  At the time, Televisa said it planned to increase its stake in Univision to 22% and swap US $1.125 billion of Univision debt it held to equity shares.) In any case, with the new FCC ruling Televisa will be able to increase its stake to 40%, exchanging debt for equity, and Univision’s US $9.3 billion debt load (31.12.215) will be substantially reduced.

Univision’s debt load will be substantially reduced as a result of the FCC allowing Televisa to increase its stake

NHMC Supports Televisa Stake Increase

Several Hispanic organizations including the National Hispanic Media Coalition (NHMC) have written over the past months to the FCC (check filing August 29, 2016) favoring the increase of Televisa’s stake in Univision to 40%. Alex Nogales president of NHMC wrote that the “NHMC supports the Petition because of the potential it presents for American Latinos to tell their stories to the nation, in English and in Spanish. Univision has stated that Televisa’s past investments in Univision have resulted in the hiring of more American Latinos,and have resulted in an increase in its U.S.-based content production. NHMC is encouraged that Univision will utilize the capital infusion to further bolster its Spanish-and English-language programming in the United States and further grow its diverse talent pool.”

CHECK OUT: 6 Ways the FCC ruling will impact Univision and Hispanic Marketing

Join us at PORTADA Mexico!

What: Univision Communications will lay off at least 250 employees. The cuts are mostly related to Univision’s digital units including Fusion Media Group.
Why it matters:The lay offs amount to almost 6% of Univision’s workforce.

u4xpomt6_400x400Univision Holdings Inc., the largest Spanish-language broadcaster in the U.S., will undergo a restructuring that could mean the firing of at least 250 employees, accounting for nearly 6% of its workforce.

The layoffs will include cuts at Fusion Media Group, which targets millennial audiences in English and Spanish on cable TV and online. Univision employed about 4,000 people as of March 31, according to filings.

The cuts are part of “a broader streamlining of operations across Univision,” according to Isaac Lee, Univision’s chief news, entertainment and digital officer.

“Constantly adjusting our scale and our processes is a reality of the business we are all in,” he said. “These necessary changes come as we look to strategically bring together several distinct digital media companies into one powerful and nimble digital publishing entity.”

The company is preparing for a possible IPO while struggling with shrinking sales and profit and adjusting to a restructuring that includes adding fusion.net and TheRoot.com to the Gizmodo Media Group, which Univision bought in September.

The changes also follow a year of declining ratings at Univision, and a Q3 report that showed drops in ad sales and a US$199.5 million write-down primarily to account for the diminishing value of the company’s radio properties.

Univision wound up with a US$30.5 million loss in Q3, down from a US$109.8 million profit last year, with US$734.8 million in revenues, down 8.3%.

Univision, based in New York, confirmed that it “eliminated a number of positions in various areas of the company” and said it will be adding new ones in coming months “to support strategic growth areas,” according to an e-mailed statement.

Univision is privately held. Its chairman is billionaire investor Haim Saban.

 

A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

Hulu has added programming from to its new live TV streaming service from 21st Century Fox, Walt Disney/ABC Television Group, ESPN, Fox News, FX Networks, Fox Regional Sports Networks and National Geographic. The service is set to launch in early 2017, and will offer limited commercials for $7.99 per month or commercial-free for $11.99 per month.

Univision Digital, the digital division of Univision Communications Inc. (UCI), announced the launch of “CNCO Evolution,” a new web series that tells the story of how the winners from “La Banda” are dealing with their newfound success and how they prepared for the launch of their first album, Primera Cita. The six-episode series presented by Walmart, premieres today on LaBandaOficial.com.

Video compression products provider EuclidIQ has announced the immediate availability of OptiiQ.ly, an Online Video Platform (OVP) that offers a simple end-to-end channel solution for distribution of live and pre-recorded video content over the internet.

teadsNative video platform and outstream video provider Teads is looking into adding haptic feedback to its mobile ad video solutions. Teads’s studies reveal that haptic video ads, which include a small motor in the phone that creates vibrations so that people can experience sensations from videos, increase user attention, engagement, and interaction vs. non-haptic ads.

Online video platform providers Brightcove, Vidyard and Kaltura came in at the top of a study by Forrester Research that rated platforms’ abilities to support sales and marketing efforts in the enterprise segment. Competitors include Adobe, IBM and Ooyala.

Portada‘s 2017 Online Marketing Guide is out! Download it for free and get the latest in opportunities and challenges in the industry, video ad market forecasts and video audience development.

FilmStruck, Turner Classic Movies’ new streaming service for film lovers, has now launched. The service features a collection of hundreds of classic, indie, foreign, and cult film, and will cost $7 per month.

Sojern, a marketing engine for travel brands with clients including Marriott, Disney, Emirates, and Hertz, announced it is the first company in travel to become a DoubleClick Certified Marketing Partner.  The list of approved members is hand-selected and vetted by Google and partner companies have proven expertise in successfully delivering results on DoubleClick’s suite of advertising products at scale.

LATAM MARKET

A report from Newzoo has revealed that the Latin American games market is the second fastest growing sector in the world, and that this year the region will generate $4.1b in video game revenues for a year-on-year rise of 20 per cent.

A new IMS survey found that about 90% of people connected to the Internet in Latin America own a smartphone, and that Android is the preferred operating system.  There is also going to be an estimated 200 million smartphones in the region by 2018. This annual study tracks regional trends in digital consumption and mobile apps.

PORTADA RESEARCH: Hispanic Online Video Ad Market to Soar to US $450 million. In a new report, Portada estimates that the Hispanic Online Video Ad market volume will climb to US $450 million by 2020. Particularly high growth is to be expected by branded content videos. Among video ad-tipes, in-stream will continue to have the largest share, although out-stream will grow at a higher rate.

Opera TV has announced a partnership with Claro video, a premium video on-demand service, to bring its service to millions of devices through participation in Opera TV’s Certification operaProgram and distribution through the Opera TV Store. Through the partnership with Opera TV, Claro video is increasing its presence in the growing Latin American market by streamlining its app development and deployment efforts, making it available on a variety of ecosystems and devices where over-the-top (OTT) is enabled by Opera TV.

According to the Mexico Total Telecommunications Services Market from Frost & Sullivan’s Digital Transformation team, the current Mexican telecommunication services market is mostly monopolized by Telmex and its mobile arm Telcel. But in the PayTV segment, Televisa has the largest share.

Last Wednesday, the Argentine Ministry of Communications met with the FCC in Washington to discuss the issue of regulating emerging technology and platforms in the OTT market as a part of Argentina TIC Day, a business round set up by businessman Oscar Aguad to attract investment in Argentine telecommunications companies.

Thanks to OTT subscriptions to services like Netflix and Claro Video, Brazil and Mexico are the markets with the second and third-highest growth (26 and 25 percent, respectively) in the segment in Latin American and OECD countries.

Carlos Slim and his company, América Móvil, are expressing interest in entering the pay TV market in Mexico. During a conference, Daniel Hajj, América Móvil’s general director, said that the company is following the rules for entering the pay TV market, which were set by Mexico’s Federal Telecommunications Institute. América Móvil already has pay TV services in Chile, Colombia, Peru, Ecuador, Brazil and soon Argentina.

Last Monday night, while 84 million people tuned into the presidential debate between Democrat Hillary Clinton and Republican Donald Trump, Mexican beer company Tecate provided some comic relief in the form of a “YUGE” wall: a beer wall, that is. We spoke to Felix Palau, Heineken Brand Regional Director at Global Marketing Americas Heineken, about the campaign’s impact, more than a million views on Youtube, as well as Tecate’s impressive growth in the general market.

Felix Palau, Heineken Brand Regional Director at Global Marketing Americas Heineken
Felix Palau, Heineken Brand Regional Director at Global Marketing Americas Heineken

“The time has come for a wall,” says a booming voice projected over a bird’s eye view of the US-Mexico border. “A tremendous wall. The best wall.” The camera zooms in on two groups of men standing on opposite sides of a wall:  “a beer wall” that is revealed to be about, oh, one and a half feet high.

One of the men slams a Tecate beer can down on the wall, which also happens to serve as a perfect resting spot for a can of beer. “A wall that brings us together,” the voice says, as the men leap over, high-five, pull out a cooler of drinks and proceed to party. “This wall might be small, but it’s going to be YUGE,” the voice declares.

The ad, a clear reference to the infamous border wall that Donald Trump may or may not be serious about building (let’s hope we don’t have to find out), was aired on Fox News, Univision and Telemundo during the debate. Filmed on the border by Saatchi & Saatchi New York in Tecate, Mexico, it was the first time that Tecate, whose Tecate Light is the #1 growing light beer in the US, had targeted the general market instead of its typical bicultural Hispanic.

“Beer Is A Great Unifier”

Felix Palau, Heineken Brand Regional Director at Global Marketing Americas Heineken, explained that while targeting the bicultural Hispanic has been a winning strategy for years, the brand was ready to take it to the next level: “the main difference between this campaign and past ones is that the Tecate Beer Wall opened up the conversation with all consumers – regardless of their backgrounds – and is giving everyone a bold taste of the Tecate brand.”

[youtube https://www.youtube.com/watch?v=Bev4NZEFsCQ]

Palau said that the spot, which has been viewed almost a million times on YouTube, has received an “extremely positive” reaction over the past week, and that “by playing into the ongoing conversation of this notion of a wall, and putting a very lighthearted, fun twist on it,” the brand has “created a very non-polarizing campaign that most people really love.”

Palau also asserted that the concept of the Tecate Beer Wall was working well in conveying the concept that “beer is a great unifier,” and that while they “have believed in this campaign from its conception, and it’s really rewarding to see millions of others reacting in a similarly positive way.”

By playing into the ongoing conversation of this notion of a wall, and putting a very lighthearted, fun twist on it, we created a very non-polarizing campaign that most people really love.

And while an ad so focused on border issues might attract more interest from Hispanic or Mexican viewers than the general market, in this case, the buzz surrounding the election (and people’s desperate need for comic relief) has made the spot a hit with all audiences.

Unlike other Tecate campaigns, the “Tecate Beer Wall has really brought these two worlds together,” Palau asserts. “From Mexicans and US Hispanics to the more general market consumer, the idea of people coming together to celebrate over a beer is an idea that resonates with people of all ethnicities.”

While Palau is Mexican born and admits that he lives somewhere between his Mexican and American worlds like many bicultural consumers, his team at Heineken is a big mix, and the campaign reminded him that “there’s something special about what happens when you’re in a melting pot that transcends borders.”

Transcending Borders, Race and Politics in a Polemic Election

While some may interpret the ad as a public endorsement of Hillary Clinton, or a rebuke of the concept of “the wall” or Donald Trump’s candidacy in general, Palau insists that the brand “strategically created the Tecate Beer Wall in a way that does not trivialize the issue or polarize any one group.”

The ad was truly about playing into an ongoing conversation in a lighthearted way, and the goal was “to stay neutral while opening up a dialogue about a very poignant topic that transcends borders, race and politics.”

From Mexicans and US Hispanics to the more general market consumer, the idea of people coming together to celebrate over a beer is an idea that resonates with people of all ethnicities.

So, don’t expect Tecate to go too crazy with its first foray into political satire. While Palau recognized that his team is “always open to new ideas,” he says they are “currently only focusing on this iteration of the Tecate Beer Wall spot.”

And certainly do not get your hopes up for an official Tecate presidential endorsement. This brand is all about getting some laughs out of an increasingly polarized and anxious American public.

“We believe its unifying message of bringing people together is very much aligned with our brand, and something people really need to hear – particularly in a Presidential campaign that has at often times, been very heated, causing a divide in consumers,” Palau says. “The ideal scenario is that whomever wins this long campaign, we can all celebrate with a Tecate or Tecate Light.”

I don’t know if I’ll be celebrating either way, but Palau’s probably got one thing straight: we’ll all need a beer after this election is over.

 

A summary of the most exciting recent news in sports marketing and media in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

U.S./U.S.-HISPANIC MARKET

fight
Kyra “Mogwai” Batara with coach Casey.

MMA sensation Kyra “Mogwai” Batara will represent the organization for the first time in Combate Americas history during the RIZIN FF fight in Tokyo, Japan, on September 25.

Nike and Apple announced their partnership’s newest product, the Apple Watch Nike+, which pairs the exclusive Nike Sport Bands with the Apple Watch Series 2, which features GPS, a display twice as bright as that of previous models, water resistance for depths of up to 50 meters, a powerful dual-core processor and watchOS 3.

Univision Deportes announced its schedule for the upcoming 2018 FIFA World Cup Qualification. The line-up includes games played by the U.S., Mexican and Canadian national teams, as well as the debut of the UEFA National Team qualifying matches on UCI’s networks.

These are the #Portada16 Award Finalists in the Sports Marketing Campaign Category:
-Western Union Digital: the “Be Futbol” Campaign
-Bones Love Milk
-Copa Coca-Cola

Winners will be announced at the Sports Marketing Forum, part of #Portada16 on Sept. 14 in New York City’s Yotel.

With this week’s start of the NFL season, the league’s four major TV network partners have cumulatively sold close to $2.5 billion worth of commercial time, Broadcasting & Cable reports. This means each one of the networks has sold more inventory than it did last season, and at higher prices.

Ray Warren.

NBCUniversal Telemundo Enterprises announced Ray Warren as Telemundo Deportes’ new president. In this new role, the veteran sports executive will oversee NBCUniversal Telemundo Enterprises’ growing sports business and lead its strategy across all its platforms and networks. He will be responsible for developing both existing franchises and future acquisitions with a keen focus on the FIFA World Cup properties.

Warren will be based in Miami and will report to Cesar Conde, the chairman of NBCUniversal International and NBCUniversal Telemundo Enterprises, effective September 19.

DOWNLOAD Portada’s 2016 Sports Marketing Guide!

arroz-oriente-petrolero-bloomingLATIN AMERICAN MARKET

Bolivian soccer clubs Oriente Petrolero and Blooming are trying to earn some additional funds by selling their own rice brands through Silos Montego SRL, which will handle the product’s fabrication and distribution.

Argentine soccer club Boca Juniors is looking for companies willing to pay an unspecified sum to put their name on its Alberto J. Armando Stadium and become its main sponsor starting in 2017. Experts expect the stadium to be named after a multinational.

Liga Mexicana has positioned itself in the top ten of leagues who spent the most on signings during this season. England’s Premier League set records, coming in first through spending €1.4 billion, while Italy’s A Series spent €700 million. In ninth place, we find Liga MX’s €49.5 million.

What: Univision has won the auction for Gawker Media after placing a winning bid of US$135 million. The offer includes all seven of Gawker Media’s sites, including Gawker.com.
Why it matters: This is the first acquisition of a major digital media property by Univision, perhaps together with the purchase of a controlling stake in The Onion earlier this year. Univision is  the largest Hispanic targeted media company which until a few years ago only catered to Spanish-dominant Hispanics. Gawker is also one of the first acquisitions  that does not have a purely multicultural profile. Univision is trying to sell its stock in a public offering (IPO) in a market where traditional broadcasters have lost value. By acquiring Gawker, Univision is trying to positively impact the growth prospects for the company.

U4xpomT6_400x400 zBK6duWc_400x400Univision has won the auction for Gawker Media after placing a winning bid of US$135 million for the bankrupt blog network, according to a person familiar with the deal. The offer includes all seven of Gawker Media’s sites, including Gawker.com
“We have completed the bid process and we anticipate the court finalizing the order on August 18th. We are not commenting further at this point,” a spokeswoman at Univision tells Portada.

Gawker had declared bankruptcy after losing a US$140 million lawsuit to former pro wrestler Hulk Hogan and Peter Thiel. A federal bankruptcy court judge will approve the final sale Thursday.When it is final, the judgment funds will be set aside while Gawker appeals its court case; eventually the money will go to the side that wins. Ziff Davis,which has originally offered US$90 million, and Univision were the only two bidders for Gawker.

CHECK OUT:
Univision asks FCC to Allow Televisa to Increase its Stake in Univision
Univision Buys Fusion Stake from ABC, but will it get it to work?

“Gawker Media Group has agreed this evening to sell our business and popular brands to Univision, one of America’s largest media companies that is rapidly assembling the leading digital media group for millennial and multicultural audiences. I am pleased that our employees are protected and will continue their work under new ownership — disentangled from the legal campaign against the company. We could not have picked an acquirer more devoted to vibrant journalism,” said Gawker Media owner Nick Denton in a statement.

Fusion Media Group

Univision, which until recently was best known as a Spanish-language TV network, has been expanding its digital reach by growing and acquiring a collection of brands, including  its interests in Fusion and El Rey as well as The Root, The Onion, A.V. Club, Clickhole, Starwipe, Flama, Univision Digital and Univision Music. All these assets are now part of The Fusion Media Group (FMG).  It is likely that Gawker will become a part of Fusion Media Group.  Univision is building a diversified media company in The Fusion Media Group, and Gawker Media’s brands speak to a younger, tech-savvy audience.

WATCH Gawker’s Nick Denton speak at the 2013 edition of the Portada LatAm Summit (PortadaLat).

Join us at PORTADA Mexico!

What: Univision Holdings has requested the Federal Communications Commission (FCC) permission to increase from 10% to 40% Televisa’s stake in Univision. FCC reported that it will publish comments on the operation on August 8 and provide a  final answer on September 7.
Why it matters: Univision is attempting to do an IPO and Televisa is its main strategic partner and one of its main investors.

US Spanish-language network Univision Holdings has requested the Federal Communications Commission (FCC) permission to increase Televisa’s stake in Univision from  from 10% to 40%.

Televisa supplies about 35% of Univision’s television programming and more than half of its content across other platforms. Foreign companies can only own up to 25% stake in U.S broadcasters, that is why Univision is asking the FCC to make an exception.

The FCC reported that will publish comments on the operation on August 8 and will provide a final answer on September 7, Mexico’s El Proceso newspaper reported that Televisa received US $83.3 million in royalties from Univision during the second quarter of 2016.

Join us at PORTADA Mexico!

What?: Mexican soccer teams are being paid millions of dollars for broadcasting rights in the U.S.
Why it matters?: Broadcast channels in the U.S. are spending millions of dollars a year to obtain the rights to transmit Mexican soccer games in an effort to reach the 35 million Hispanics of Mexican descent living in the U.S. (Note: This article is a revised version of an article included in Portada’s 2016 Sports Marketing Guide, to get the full version, DOWNLOAD it here).

12106291_144901869198946_1403484663_n_002In 2013, Chivas, Guadalajara’s main football club, signed a $16 million-dollar deal with Univisión to broadcast their regular season games in the United States until 2018. This contract surpassed the team’s last agreement with Telemundo, who paid them $11 million for the rights from 2008 to 2013. With these numbers, Chivas has positioned itself as the highest-paid team for broadcasting games in the U.S (see table below)., ranked even above the entire Mexican national league, Liga MX, which is paid US$12 million a year by Univisión/ESPN to broadcast its games in English and Spanish.

Chivas is just one example of a Mexican soccer team that has its eye on the U.S. market. El America, Cruz Azul and Pumas are paid $15, $11 and $10 million dollars a year for the U.S. rights, respectively. Broadcast networks like Grupo Azteca are investing substantial amounts of money to shore up their soccer offerings.

“With more than 35 million Hispanics of Mexican descent living in the U.S., it is easy to understand why Mexican soccer teams decided to promote their audience there. The Liga MX even gets the highest audience rate of all games,” says Vicente Navarro, VP of business development at AC&M Group, a Hispanic and soccer marketing agency.

Good Things Happen North of the Border

TeamTV Channel
DealYearly income in
 USD
AméricaUnivisión2015-202015,000,000
AtlasUnivisión2013-20165,500,000
ChiapasUnivisión2013-20163,000,000
Cruz AzulUnivisión2013-201811,000,000
GuadalajaraUnivisión2013-201816,000,000
LeónTelemundo/NBC2012-20156,300,000
MonterreyUnivisión2013-20163,000,000
MoreliaAzteca América/ESPN2013-20165,000,000
PachucaTelemundo/NBC2014-20187,000,000
PueblaAzteca América/ESPN2013-20162,500,000
QuerétaroAzteca América/ESPN2014-20172,000,000
SantosUnivisión2013-20164,000,000
TigresUnivisión2013-20163,000,000
TijuanaAzteca América/ESPN2013-20163,500,000
TolucaUnivisión2013-20178,000,000
UNAMUnivisión2013-201810,000,000
VeracruzUnivisión2013-20173,500,000

Source: Wikipedia and Portada
Note: Mexico’s major soccer teams and their broadcast rights in the U.S.

According to Jorge Villalobos, CEO of Sports Marketing Monterrey, selling broadcast rights to American media channels is a win-win situation for everyone involved. The soccer team obtains more exposure (apart from being paid well), the TV channel gets quality content, the advertising companies have a platform on which to sell their content, and the fans are able to see their teams play.

Jorge Villalobos, CEO at Sports Marketing Monterrey
Jorge Villalobos, CEO at Sports Marketing Monterrey

There are many sports channels in the U.S. and most of them designate a bigger part of their broadcasting time to soccer, not only in Spanish but also in English, says Villalobos. “This is an industry that is evolving, and as the U.S. audience is becoming more sophisticated, it demands better quality.” The evolution of American audiences has to be reflected in the channels’ content, and if an audience is interested in Mexican soccer, the channels will do what it takes to show it.

Some years ago, it was crazy to think that the media would broadcast even 20% of the Mexican season’s friendly soccer games: All of the games that we play in the U.S. are transmitted not only nationally but also in Mexico and 20 other countries,” says Villalobos. What’s more, El Tri, Mexico’s national soccer team, plays more games in the U.S. than in Mexico.

Selling to an American Audience

Only 10 days ago Univision Deportes broadcast the Campeón de Campeones match (Champion of Champions) with Honda as title sponsor. The winners of the two most recent Liga MX seasons played against each other. Tellingly the match was not played in Mexico, but Dominguez Hills-Carson, CA.

“Soccer advertisers keep growing in the U.S.,” says Villalobos. “There are more and more brands that see soccer as their best tool to reach the Hispanic market and connect with it.” For this reason, agencies like Sports Marketing Monterrey are focusing on bringing Mexican soccer and brands closer, not only through advertising but also through other experiences like events and special promotions.

Vicente Navarro, VP of business development at AC&M Group
Vicente Navarro, VP of business development at AC&M Group
“The average income in the U.S. is much higher than in Mexico,” admits Navarro. “This also means that the fans have a higher purchasing power to buy stuff from their favourite teams.”

Still “it is not a secret that the fans have stopped spending their money on ‘things,’ because now, they want experiences,” admits Villalobos. So, when bringing a team to the U.S., the commercial relationship does not end after the game: the brands are sponsoring other events, too, for autograph signing or meet-and-greets with players, for example.

But brands cannot forget that U.S. Hispanics behave differently than Mexicans do in their home country. It is a mistake to think that one can apply the same campaign used during a soccer game in Mexico in the U.S., because “it is a different target and you have to discover how to reach it,” adds Villalobos.

DOWNLOAD Portada’s 2016 Sports Marketing Guide!

According to Navarro, selling broadcast rights to U.S. channels doesn’t represent a risk at all for the teams. “It could be risky for the companies buying the rights, or for the marketing agencies paying for advertising, if the team is having a terrible season,” he adds. “But, in general, the teams can bring in great revenue because they are already a strong global brand.”

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