What: Video ID technology company ZEFR has opened a division dedicated solely to the Hispanic market after closing a US$30 million fundraising round led by Institutional Venture Partners.
Why It Matters: As the Hispanic population grows to 17.4% of the total U.S. population and will account for more than half of country’s growth by 2020, U.S. Online Video and Ad-technology companies looking to expand their reach are investing in reaching this key demographic.
Article by Gretchen Gardner
ZEFR, a Los Angeles-based video identification technology company that uses its videoID™ technology to help brands target influencers and topics through video content on YouTube, manages 275 million videos and tracks 31 billion video views a month. In the wake of a US $30 million fundraising round led by Institutional Venture Partners, ZEFR has opened up a division dedicated solely to the US Hispanic market. We talked to Angie Correa, the company’s new National Strategy and Sales Director for the US Hispanic market, and a former Terra Networks USA Senior Sales Executive, about how the company decided to invest in this growing market and the strategy they plan to put in place to conquer it.
“The Hispanic population accounts for 17.4% of the total U.S. population and will account for more than half of the population growth in the country by 2020. There’s no denying the consumer power of Hispanics is massive,” said Correa. What’s more, the Hispanic market is anything but homogeneous, and ZEFR knows that different strategies will be required for the U.S. vs. foreign-born Hispanics, “as well as varying levels of cultural integration.”
There is a huge need in the market to bring new technology to improve the connection possible between brands and Hispanic consumers.
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And ZEFR has never been a company that shies away from the nuances of different markets –in fact, that’s what has made the company unique from the beginning, Correa claims. “ZEFR is centered on improving advertising by aligning the right brand message with the right content and/or influencer,” Correa said, and her team knows that Hispanic consumers’ taste is just as, if not more, nuanced as that of the general American public, identifying “a huge need in the market to bring new technology to improve the connection possible between brands and Hispanic consumers.”
ZEFRs technical expertise positions the company well to take on this challenge, as its IMS technology “ranks every Influencer across every social platform” and allows them to find the perfect candidates for each brand’s campaign needs. This is a different approach to talent management than that of many other MCNs, as they choose not to “own” talent, but identify Influencers that want to work with brands and help build that organic relationship.
Correa is adamant that this approach “drives better results and deeper relationships between the Influencer, brand and ZEFR,” and pointed us to a campaign they ran with Honda called “A Space for Dreams.” The campaign made use of two important statistics related to the Hispanic market: Hispanics use YouTube heavily, and are also key to auto sales. Selecting two Hispanic YouTube Influencers, they filmed a “Day in the Life” vlog in which they regularly used Honda’s CRV.
The results were huge: record-setting sales and 80% more organic views than Honda had paid for originally. In Correa’s words, the campaign was successful because it “brought to life content that resonated with their followers.”