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What: Ford & WPP’s global partnership is being reviewed and may be extended in 2018. However, a final decision has not been made yet. Separately, Adage reported that Ford has moved outside of WPP for help on a new campaign for its Lincoln brand, tapping Laundry Service, a Wasserman Media Group-owned New York-based shop. The shop’s content studio, called Cycle, was hired to handle social media for a new campaign for the redesigned 2018 Lincoln Navigator SUV, a Lincoln spokesman confirmed.
Why it matters: Ford is WPP’s biggest global client for both creative and media services. Last February, WPP acquired U.S Hispanic shop Zubi Advertising to handle Ford’s multicultural account.

Ford Motor Company verbally informed WPP that they are considering their future internal and external marketing model and want to enter into a further agreement with WPP for a period to be agreed in 2018.

According to a brief statement, WPP is considering the proposal and is in discussion with Ford on next steps.

GTB (Global Team Blue) is the result of agencies Team Detroit, Blue Hive (the WPP units that serve Ford outside the U.S.) and Retail First merger under a single global identity. Currently, GTB operates on six continents and has 49 offices. It is integrated across most communications disciplines and is WPP’s largest agency team. It’s one of 48 WPP global client teams.GTB also services other clients including Purina and Johnson Controls.

Ford told Reuters in a statement that WPP’s staff were “trusted partners and curators of the Ford brand”, and added: “As we are across the Ford business, we are exploring options to improve the fitness of our marketing and advertising operations. No decisions have been made.”

In separate but related news, Adage reported that Ford has moved outside of WPP for help on a new campaign for its Lincoln brand, tapping Laundry Service, a Wasserman Media Group-owned New York-based shop. The shop’s content studio, called Cycle, was hired to handle social media for a new campaign for the redesigned 2018 Lincoln Navigator SUV, a Lincoln spokesman confirmed to Adage.

Hispanic Shop Zubi

Last February, WPP’s GTB, it’s wholly owned full-service agency dedicated to the Ford Motor Company account, acquired Zubi Advertising Services, Inc. (“Zubi”), a full-service advertising agency that focuses on the Hispanic market in the US. The acquisition continued WPP’s strategy of investing to strengthen its “horizontality” offer to clients by enhancing the capabilities of its global account teams, such as GTB, and in important markets such as the US.

 

What: A recent Nielsen study found that ads delivered in Spanish outperform campaigns aimed at the general public in terms of ROI.
Why It Matters: Hispanics represent a huge opportunity for marketers with 57 million people adding up to $1.3 trillion in spending power. But with such large numbers comes complexity, and a struggle to form a complete picture of Hispanic consumers.

In a recent report, Nielsen shed light on the Hispanic consumer, sharing that about 83 percent of U.S. adults in Hispanic TV households speak some level of Spanish in the home, with 27 percent speaking only Spanish and 57 percent speaking both languages. The audience measurement firm also found that ads delivered in Spanish outperform campaigns aimed at the general public in terms of ROI:  54 percent of Spanish language TV campaigns perform in line with or ahead of English language campaigns.

While it would be misleading to view the general public and Hispanic Americans through the same lens, the report was encouraging for those looking for effective ways to engage Hispanic consumers and reinforced many marketers’ argument that investing in Hispanic consumer targeting is smart. But it’s only smart if it comes with a commitment to understanding the cultural nuances that shape Hispanic behavior. 

‘Right to Win’ Key to Higher ROI

In the study, Nielsen compared the returns on investment (ROI) from a wide variety of brands’ Spanish-language campaigns to market averages. Looking at 50 projects with clients in many categories, the research discovered “five key levers to driving higher ROI on Spanish-language TV.” The analysts even provided data that revealed the drivers of “high ROI” versus “low ROI” campaigns.

One of the most interesting findings from the Nielsen study is that brands that Hispanics purchase more frequently generated a higher ROI across Spanish language TV. To explain this, Mebrulin Francisco, Senior Partner, Director of Marketing Analytics at GroupM asserted that “where we see higher performing campaigns, it goes back to whether you have the ‘right to win.’”

Francisco explained that one of the most important elements of delivering these types of ROIs is looking past the sheer number of Hispanics to determine which brand in the portfolio Hispanics are connecting with, “because it’s not about population size, it’s about their pocket size,” an argument that is supported by the data collected on brands that are popular with Hispanics. 

“This is critical learning to the industry,” Francisco elaborated: “We tend to say Hispanic populations are growing, and that this is why you should invest, but we see high performance because we had reason to believe that putting money there made sense.”  Being able to identify the brands to leverage is key to generating successful Spanish-language campaigns, Francisco said, because “maybe a product doesn’t have owned authenticity to win with a Hispanic audience.”

CHECK OUT the #Portada16 session, Are Multicultural Media Buying Agencies Necessary? Get ready for #Portada17 in NYC on September 13 (Sports Marketing Forum) and 14 (11th Annual Multicultural Marketing and Media Conference)!

Marketers: Offline Media Key in Consumer Journey

Brands must devote significant energy to understanding where and how customers prefer to shop, as people now use a wide variety of platforms when comparing products and ultimately making purchases. For that reason, cross-channel plans are “always more effective than a single medium plan,” Gloria Constanza, partner, chief contact strategist at Dex-P said.

All of our General Market counterparts are paying more and more attention to the Hispanic market and making that a priority since they are seeing that this is where their growth opportunity exists.

And while Constanza asserted that “digital is more efficient in affecting the bottom of the funnel,” she added that offline media’s role in conversion is strong: “There are many attribution models that clearly indicate that the function of offline media at the consumer journey mapping process is very strong at driving the upper funnel, thereby being responsible for the conversion step of the funnel.” A successful Hispanic marketing strategy will take these factors into account and reach people at all stages of their shopping journey. 

Education, Development of New Methodologies Contribute to ROI

Marian Lozano, Associate Media Director at Zubi Advertising, said that by now, most brands they work with “understand that one size does not fit all when it comes to speaking to Hispanic consumers,” but that this is the direct result of their efforts to educate clients. Lozano explained that she and her colleagues are “constantly helping clients understand the differences between the different Hispanic segments and groups.”

This has paid off. “All of our General Market counterparts are paying more and more attention to the Hispanic market and making that a priority since they are seeing that this is where their growth opportunity exists,” Lozano affirmed.

Constanza of Dex-P added that in her experience, “the Spanish-language targeted efforts have always delivered much higher and attractive ROI.” To inform strategy, her team often tests the dual language approach for targeting both acculturated and unacculturated Hispanics. “Through evaluations of sales and their tracking study, we continuously see that Spanish-language over-performs the English-targeted Hispanic initiative YOY,” she said.

For many data providers, the way you can pick up the Hispanic sales is making inferences based on first and last name, where they live, and density data. Even with an incomplete picture, we are still seeing how they are responding, so imagine if we had the full picture.

But there are still many obstacles to effectively targeting Hispanics: Francisco of GroupM argued that the “biggest challenge today is how sales are broken down by ethnicity,” which she described as “a tall order” because “they know they are selling but they don’t know whom they are selling to.” Francisco warned that relying on Home Scan, Nielsen, and panels to draw conclusions without taking a look at the methodologies implemented is dangerous.

The good thing is that campaigns will only perform better as more effective methodologies for breaking down consumer behavior are discovered: “For many data providers, the way you can pick up the Hispanic sales is making inferences based on first and last name, where they live, and density data. Even with an incomplete picture, we are still seeing how they are responding, so imagine if we had the full picture,” Francisco said. 

With Hispanic Targeting, Good Things Come to Those Who Wait

For brands looking to strike gold with Hispanic consumers, patience is a virtue. To make the most of this demographic, they must understand that “you can’t expect results to come in in a year,” Francisco said.

Constanza echoed that sentiment, stating that while it is important to identify and prioritize the brands that are currently connecting with Hispanic consumers, “we also cannot forget that Latinos will be the main driver of many businesses in the years to come.” When immediate results don’t come in, “they should not stop their Hispanic program – instead, they need to continue to optimize it until they find the right approach.”   

Francisco added: “When it comes to Multicultural, people think if it doesn’t work in a year, it doesn’t work at all, but you have to build brand equity and build a relationship with a consumer.” This is important when one considers that just reaching Hispanics is one thing, while truly engaging with them in a meaningful way is another.

Unfortunately, letting a machine spill data for you without the proper mining and interpretations can lead to a missed target.

Constanza elaborated: “In an era of advanced technology and a tsunami of available data, today it is easier to target Hispanics in the language that is more rational to them.” But truly connecting with “heart and emotions” will require that marketers invest in acquiring a much more “extreme expertise and inherent knowledge of this complex audience.”

Because it is not just about the data, but how the data is gathered and interpreted, and the insight it provides.  In addition to reaching Hispanics where they will be open to your messaging, Constanza emphasized the importance of “staying culturally relevant and uncovering those unique triggers that allow a brand to foster deep connections with Latinos.”

While data from reports like Nielsen’s is useful in loosely confirming or dispelling common assumptions about Hispanic consumers, the real trick is deciphering the meaning behind the numbers. “Unfortunately, letting a machine spill data for you without the proper mining and interpretations can lead to a missed target,” Constanza said.

 

What: WPP’s GTB is acquiring Hispanic-focused advertising agency Zubi Advertising Services. The transaction had been rumored in the market for many years and only came to fruition now.
Why it matters: Zubi was one of the very few still independent Hispanic advertising agencies as most have been acquired by global agency conglomerates. Zubi is headquartered in Coral Gables, Florida with offices in Los Angeles and Detroit and its’ client roster includes Ford Motor Company, J.P. Morgan Chase Bank, N.A., and Dunkin’ Donuts.

descarga-2 xm7ecfes_400x400GTB announced the acquisition of Zubi Advertising Services, Inc. (“Zubi”), a full-service advertising agency that focuses on the Hispanic market in the US.

The acquisition and integration of Zubi into GTB‘s offering represents a strategic move for the agency as its clients are increasingly aiming to connect effectively with the Hispanic consumer.  The U.S. Census expects the Latin population to more than double with the next two generations.

Founded in 1976 by Tere Zubizarreta —  to service her first client, Banco Popular — Zubi is headquartered in Coral Gables, Florida with offices in Los Angeles and Detroit. Zubi employs approximately 120 people and has a blue chip client roster that includes the likes of Ford Motor Company, J.P. Morgan Chase Bank, N.A., and Dunkin’ Donuts.

“This affiliation is part of our evolution to provide our clients with best-in-class resources and to work together to grow through new business opportunities.  Michelle and I are confident that the legacy of Tere Zubi will continue for decades to come,” said Joe Zubi, Chief Operating Officer, whose sister, Michelle Zubi, currently serves as the firm’s Chief Administrative Officer.

“We’re delighted to welcome Zubi into the GTB family,” said Satish Korde, GTB’s Global Chief Executive Officer.  “Zubi does outstanding work and exhibits an authentic culture of extraordinarily talented people.  For GTB, this acquisition exemplifies our approach to bring the best to bear for our client.”

Now a key part of an agency team that spans across six continents, Zubi will benefit from the diverse resources of the WPP group of companies.  The acquisition continues WPP’s strategy of investing to strengthen its “horizontality” offer to clients by enhancing the capabilities of its global client teams, such as GTB, and in important markets such as the US.

Join us at PORTADA Mexico!

With increasing pressure from digital, broadcasters will strut their best and brightest stuff this week. Here’s what media buyers from Zubi Advertising, Horizon Media, Havas Media, Dieste, Bromley and Innocean USA expect.

-baila-si-puedes-1971641
Azteca’s Baila si Puedes

Ahead of the TV Upfronts, Azteca America gave a sneak preview of “La Hora Ganadora,” an hour of family-oriented programming that will rotate shows in short seasons of a few weeks.

Says Manuel Abud, president and CEO of Azteca America, “For advertisers, it means I am committing to a genre that will bring a similar type of viewership.”

“La Hora Ganadora” offerings include dance competition “Baila si Puedes” and game show “El Rival Más Débil.” Each show will run for around eight weeks. Abud says of the new approach, “It’s getting more difficult to get an audience engaged for a longer period of time, so we don’t ask for such a big commitment as in the past.”

La Hora Ganadora
La Hora Ganadora

His statement is central to the conundrum of the Upfronts, as networks try to get advertisers and agencies excited enough about shows to put big bucks upfront – as viewing habits and media consumption change.

TV: Still Relevant

Make no mistake, though. TV as we know it is not going away, and neither are the Upfronts. Certainly, TV consumption overall is changing, with people – especially younger people – watching less broadcast and more over-the-top and direct-to-digital video. Nevertheless, media buyers say television is important for reach.

karina-dobarro-188“We are dealing with a consumer that over-consumes media, so we are still able to find them through linear TV as well as online video,” says Karina Dobarro, vice president and managing director of multicultural brand strategy for Horizon Media.

Media buyers agree that television remains the fastest and best way to generate reach, even as it evolves.

Media buyers agree that television remains the fastest and best way to generate reach, even as it evolves. It’s important even when reaching Hispanic millennials, according to Isabella Sanchez, vice president of media integration for Zubi Advertising – and so is Spanish-language programming. “People think millennial equals English, and that’s not necessarily the case. Millennials just happen to be younger. If you look at Univision’s numbers on any given day, they have a huge foothold on the 18-to-34-year-old populations,” she says.

Isabella Sanchez_Zubi_BW
Isabella Sanchez, Zubi

A case in point is the gigante gap in Sunday-night television that will be left with the demise of the elderly and beloved Sabado Gigante. Univision may reveal a replacement during its upfront. Says Sanchez, “It looks like a dated program, but millions of people watch it. I have no doubt Univision will come up with something tremendous as a replacement.”

Sabado Gigante looks like a dated program but millions of people watch it. I have no doubt Univision will come up with something tremendous as a replacement.

Meanwhile, says Dobarro, the end of the show “represents an opportunity to continue to attract their current TV audience while trying to grow that younger audience.”

Broadcasters Expand Digital

Of course, digital placements on network dotcoms have been available for years. As TV consumption continues to move fluidly across screens, media buyers are interested in seeing how networks will showcase and handle digital.

At last year’s Upfront, Azteca America announced a partnership with YouToo Technologies, a “social TV platform.” This year, Azteca and YouToo will offer online and mobile trivia games for new programming including “La Hora Ganadora” and “Viernes Futbolero.”

Manuel Abud foto
Manuel Abud, Azteca America

Abud says, “Digital will be a bigger part of the upfronts in general. As the technology keeps moving, we will.” Because consumers have become device-agnostic when viewing TV, he says, “My focus is on developing content-centric franchises.”

Eric Bader, CMO of RadiumOne, a provider of programmatic advertising solutions, points out that television and digital aren’t so much at odds with each other when it comes to marketing goals. He says, “Television is essentially designed to meet brand and exposure metrics at the top of the funnel. Digital has effectively grown to service the bottom of the funnel and more direct marketing expectations.” Instead of buyers trying to decide which content is superior, or how much budget should go to TV versus digital, he advises, “The first thing that has to happen is that the advertiser has a full picture of both the brand goals and the direct engagement goals. It has to start with the measurement goals being defined, and then going into the market and seeing where you will find the audience that meets these goals.”

Says James Zayti, group director of Hyundai Media at Innocean USA, “We have to think about all the touchpoints where someone buying a car would be viewing content. For younger consumers, that would be more digital touchpoints, but we definitely need a marriage of both.”

Horizon Media’s Dobarro has seen a shift in how Spanish-language networks position their digital offerings. While they used to compare their online video to established, digital-native content companies like Yahoo, now they are going up against other broadcaster dotcoms. “It’s more of an even playing field for them,” she says. “They have realized they are not going to be able to gain the audience and reach of Google, for example.”

Still, much more needs to be done, according to Sue De Lopez, group account director for Bromley. The new marketing model, she says, is “dynamic, always-on and iterative. There is a tremendous void in multi-platform and multicultural content right now.”

She is seeing advertiser budgets shift from television to digital and to multiscreen. In fact, Bromley has shifted its own rhetoric, now talking about “video” instead of TV/digital; and it now sees its teams as working in content instead of advertising.

Meanwhile, De Lopez says, “Broadcasters are offering digital, but the units they offer are basic, the same old units: banners, static, B-roll videos. It’s all very cookie cutter. Brands and agencies are looking beyond the expected digital offerings. We want to know how we can tap into culturally relevant digital content that is customizable, so brands can fit in in a very organic way.”

The question of rates

In earlier days, broadcasters may have thrown in some digital advertising on their dotcoms as a value-add. With today’s shift to digital, that would be crazy.

Says Bader of RadiumOne, “Now they are bundling it in a different financial package, because there is more viewership on those platforms.”

Abud says that Azteca will be flexible – but not give freebies. “There are some clients that want to deal with digital separately, some want to see it as a combined effort,” he says. So, some advertiser budget that formerly went to Azteca broadcast may now be split. He adds, “Digital is still a complement for broadcast. Someday it will have a life of its own, but I’m not there yet.”

Univision has one strong property next year — soccer — and will probably try to bring in a lot of revenue for that

Zubi’s Sanchez acknowledges, “Everyone always wants to increase their rates; it’s the game we’ve all been playing for years. They ask for a lot and then buyers fight them on it.” She thinks that more cross-platform opportunities can help networks increase revenue without raising television rates. She notes, “Univision typically has led the pack in setting CPM increases. They have one strong property next year — soccer — and will probably try to bring in a lot of revenue for that. But all predictions say it will be a soft upfront when talking about base programming.”

Greater accountability from networks

Measurement continues to be a concern of TV buyers. Dave Morgan, CEO of Simulmedia, says, “There is no question we will see a greater use of data. There is a lot of rhetoric with buyside and sellside positioning, both saying they are bringing their best data to the table.” Simulmedia uses data to aggregate audiences for agencies and advertisers, mostly in the scatter market. “Brands and marketers themselves are clear that they want true ROI, but that isn’t how most TV media has historically been bought.”

Joseph Abruzzo, Havas Media
Joseph Abruzzo, Havas Media

Joseph Abruzzo, chief exploration officer for Havas Media, concurs. “One thing that’s changing is networks are very interested in protecting their revenue base. They will be selling greater accountability [by] starting to offer data-infused targeting options,” he says.

For example, Azteca is working with Furious Corp, the Nielsen-funded startup that works with television programmers to use real-time data from smart TVs and other connected devices to plan and optimize revenue across platforms. Meanwhile, Turner Broadcasting System, CBS and NBCUniversal have announced initiatives to add performance-based metrics to TV buying.

Abruzzo says that merging third-party data sets gives broadcasters the ability to create richer profiles of those who are actually watching a program, so an advertiser could target, for example, people who are most likely to buy a Lexus. “These are still linear buys,” he says, “but you are buying a program that has an audience composition mostly made up of [your target audience].”

Better targeting is especially important to buyers on multicultural desks, according to Greg Knipp, CEO of Dieste. “In our space in past, it’s been Univision and Telemundo, and then you fill in around those two. As we get more sophisticated in segmenting our audience, and the more targeting we can get in traditional media, the better off we’ll be.”

Knipp expects even greater shifts in the media landscape in years to come. He notes that a lot of the most talked-about content among young Hispanics and bi-culturals is stuff you can’t buy: programs like “Game of Thrones” and “Orange is the New Black.” Acknowledging that broadcasters must be more conservative than OTT providers, the question he sees is, “How will we reach this audience that is watching things that don’t have advertising?” The answer, in his opinion, is using data from set-top boxes and smart TVs, combined with third-party data, to get better addressability.

Morgan of Simulmedia thinks it’s possible that measurement could actually show that some TV spots are undervalued. His question for agencies is, “Now that you have sellers willing to sell on ROI, are buyers willing to buy on ROI?”

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Contrary to general market newspapers many Hispanic newspapers are growing their circulation. Is this fact appealing enough for national and regional advertisers? A high quality panel at Portada’s 8th Annual Hispanic Advertising and
Media Conference will explore the above and other questions.  Panelists will include Isabella Sanchez, VP Media Integration at Zubi Advertising and Verizon’s Director of Multicultural Advertising Oscar Madrid.

Oscar Madrid, Verizon
Oscar Madrid, Verizon
Isabella Sanchez, Zubi Advertising
Isabella Sanchez, Zubi Advertising

Get your tickets now! Early Bird pricing expires this Friday August 8!

In a special on-stage interview Aaron Kushner, CEO of Freedom Communications, the owner of the recently launched Los Angeles Register. the Orange County Register, the Press Enterprise and other major digital and print media properties, will explain the rationale behind his large print media investments and tell the audience what went well and what not and why.  The interview will be conducted by Portada’s very own Marcos Baer.

Other major confirmed speakers that will analyze the most important issues driving Multicultural Marketing forward include:

Ana Lucia Soto, Media Manager, JC Penney
Lyris Leos, Brand Marketing Strategy Director, JC Penney
Cesar Sroka, Group Account Director, Omnicom Group
Manny Gonzalez, Senior Director-Multicultural, Moet Hennessy
Daniel Villaroel, Director Multiethnic Marketing, Maybelline New York and Garnier
Keisha Andrews-Rangel, Managing Director, nTrigue media
Maria Lopez Knowles, CMO, Pulpo Media
Maria Rios, Director of Multicultural Marketing & Media Strategy, Macy’s