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Zulema Tijero

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In 2015 major retailers have transferred FSI (Free Standing Inserts in Newspapers, circulars, or preprints) dollars to digital advertising, and are studying results for future advertising commitments. A round-up about how this situation is playing out in the Hispanic newspaper market.

Hispanic NewspapersThe FSI business, an ad-category that has been relatively shielded from the general decline in newspaper advertising, has lately also seen significant declines. Walmart’s decision earlier this year to cut its overall FSI advertising by 50% has definitely played a role. Says, Zulema Tijero, Advertising Manager at El Tiempo Latino, owned by The Washington Post: “Due to Walmart scaling back on their preprint, our preprint business has declined for 2015 about 30%, but our local business has grown specially in the arts/entertainment categories.” Tijero adds that the FSI business is declining because it’s a huge expense to print the FSI, therefore advertisers are moving dollars to online.
“Big box retailers appear to have made a real strong effort on Cyber Monday offerings and have transferred FSI dollars to digital, and are studying results for future advertising commitments, luckily impreMedia is in a position to capture many of the transferred dollars as a result of our digital offerings,” notes George Ayala, ‎VP Advertising Eastern Region at impreMedia, a major Hispanic newspaper publisher.

Tangible Offers

Newspaper CouponsPrinting substantial runs of preprint advertising can cost up to US$ 1 million per run, but FSI’s remain a key way for advertisers to obtain reach, which digital media often cannot give them.) Even with the circulation declines at major newspapers inserts still land in about 50 million households, according to Borrell Associates, a market-research firm. impreMedia’s Ayala notes that, despite less business from big-box retailers,”FSI’s have been just slightly stronger (than ROP advertising) for the following reasons: They allow customers to have a tangible printed piece they can hold on to until they are ready to purchase. Some companies feel customers are feeling a bit overwhelmed and confused with the many online offerings. Also FSI real estate allows you to show multiple offerings on one page and most newspaper companies including impreMedia allow you to distribute FSI at zip code level providing great cost efficiencies.” Ayala notes that the strongest category in FSI’s are Grocery &; Telecom.

Some companies feel customers are feeling a bit overwhelmed and confused with the many online offerings. FSI’s allow companies to provide customers with a tangible offer, customers can hold on to and use when they are ready to purchase.

Switch Back from Digital to Print in 2016?

“We feel engaging the Hispanic consumer through culturally relevant print remains the most effective approach available in terms of advertising cost and advertising results. Most of our major advertisers have expressed disappointment with the results of digital experimentation in 2015 and the quarterly results for advertisers that cut back on print back up this assessment,” a Hispanic newspaper publisher tells Portada. “Experienced marketing directors know that most digital audience numbers in Hispanic are dreadful. Most also understand that attempting to engage the Hispanic consumer (regardless of generation) through general market media is the exact opposite of cultural engagement,” he adds.

“I would say FSI are almost always stronger than ROP and this year is no different. Retail advertisers mostly are to account for FSI revenue. They are also loyal and frequent advertisers. Consumers love shopping from their weekly circulars and the return on investment to the advertiser shows it,” says Anita Grace, an advertising sales executive who sells into newspapers including The Brownsville Herald, La Voz de Arizona and Excelsior/La Prensa Riverside says that

Homero MartinezHomero Martinez (photo), general manager of the Dallas Morning News Spanish-language publications,”FSIs continue to be a strong and effective way for advertisers to reach consumers. Even with all the different forms of advertising out there, very few are as tried and true as FSIs. Furniture, Grocery, Retail, Home Improvement, and Telecom are strong players.” Andres Valdes, National Sales Manager at the Houston Chronicle, claims that within the preprint FSI vehicle big-box retail is the largest category and Quick Services Restaurantes (QSRs) the weakest. The Dallas Morning News Homero Martinez agrees, “Sit-down restaurants and QSRs are a couple that we’d love to see more.”

Hispanic newspaper circulation, contrary to the vast majority of general market newspaper circulation, is actually up. It grew by 4 percent last year for 31 weekly Spanish-language newspapers examined by Pew Research Center in a recent report. This trend reflects the great appetite for reliable, local news among Hispanics.

With no less than seven Latin American teams, including Mexico,  qualifying for the second round of the World Cup in Brazil and, let’s not forget also Team USA, World Cup Marketing and Advertising Opportunities are still being sold.

Univision’s Juan Carlos Rodriguez recently told us that the current World Cup is the most successful ad-event in the history of Univision. Brands such as Hiunday and Dish, are advertising in Spanish in English-language media mainstreaming their Hispanic marketing. Below a look at how some digital and print media properties are capitalizing on the opportunity.

Mexico Fans“With seven Latin-American countries and the U.S. advancing to the next round of the World Cup, advertiser inquiries from prospective and current advertisers of Hoy’s World Cup opportunities, online and digital are still being received,” says Sandra Alvidrez National Sales Manager, Hoy/LA Times Media Group in Los Angeles. According to Alvidrez, so far, the primary share of World Cup advertising is coming from the spirits/liquor advertisers, primarily within the beer category.  “We are also seeing non-endemic advertisers such as studios, there’s interest in adjacencies to World Cup coverage for the promotion of their upcoming film releases.  It’s also been a hot spot for local advertisers who obviously don’t have the budgets to be an official sponsor of the tournament, but can participate with small sponsorships partnered with content.”

Inquiries from prospective and current advertisers of Hoy’s World Cup opportunities, online and digital are still being received.

Ginger Neal, President & Chief of Strategy at Lion Heart Digital, a multicultural newspaper digital ad network, tells Portada that “many media buyers voiced concerns about ad dollars going away but that is not what we saw.  Our advertisers made their commitments in 2013 and our campaigns didn’t shift based on the outcome. While Mexico being in the finals makes everything more exciting, our publishers and most of their audience are committed either way.” According to Hoy Los Angeles’ Alvidrez, “as Mexico advances, it’s no surprise that more interest is building specifically in the markets that we cover, Los Angeles and Chicago; and current advertisers are extending their current campaigns to coincide with Mexico’s success in the World Cup.”  (The Mexican National Team lost against Netherlands in the second round play-off on June 29). In terms of popular ad-categories Neal asserts that “much like 2010, on a national level most of our clients are committed to branding strategies. Some of the strongest national advertising categories include Telecom, Automotive, Airlines and Financial. ”

Zulema Tijero, Sales Manager at Washington D.C.’s Hispanic newspaper El Tiempo Latino notes that her newspaper published a special 2014 World Cup supplement a few weeks ago. She is now running special sections for 4 extra weeks and selling ads into it. The main source of advertising are local advertisers, lawyers and retail stores & insurance companies. She adds that at a regional & national level, budgets have been cut across the board. “Most or our sales came locally with the exception of McDonald’s.  “Sales were 20% less from 2010,”  Tijero concludes.

National Audience Success: More Attention to Soccer Overall

USA feature FIFA World Cup 2014

Hoy Los Angeles’s Alvidrez cautions that “although, World Cup has always been a global sensation, domestically it’s been a challenge, since other sports take priority. Soccer isn’t always a priority – but with this year’s numbers, it’ll be hard to find a national marketer who won’t want to participate at some level in 2018.”
Alvidrez adds that the U.S. team’s success is driving more attention to the sport overall, drawing a bigger domestic audience, that is much larger than expected, and even more so than the NBA finals or the World Series audiences.”

Soccer isn’t always a priority – but with this year’s numbers, it’ll be hard to find a national marketer who won’t want to participate at some level in 2018.

Differences vs 2010: A shift in Distribution

What are the main differences in Marketing and Media between the 2014 Soccer World Cup in Brazil and the one before (South Africa in 2010) “The shift we did see was in distribution. Most campaigns want to include video, social and mobile as part of the program. As far as overall advertising dollars we saw an uptick with some of the larger brands but for the most part we believe money is being reallocated, “says Lion Heart Digital’s Neal.
To Sandra Alvidrez,  one important change at her property versus 2010 is  having a reporter stationed in Brazil. This allows Hoy to provide readers in print and visitors online with a unique perspective, covering everything from first-hand accounts of how the weather is playing a role in these matches or international fans unscripted feedback on the World Cup overall.”

DOWNLOAD Portada’s 2014 Soccer Marketing Guide in partnership with SOCCER.COM and AC&M Group. (Free, login or free registration required).