Despite recession, State Farm and others strengthen commitment to Hispanic market

From the Miami Herald is an article regarding how State Farm Insurance is increasing its Hispanic market budget over last year. According to the article, State Farm, spent nearly $58 million in advertising in Spanish-language TV, magazines and newspapers in 2008, doubling what it had spent in the prior year, according to TNS Media Intelligence. More than $5 billion was aimed at the Hispanic market in 2008, according to TNS Market Intelligence, an advertising market research firm.

Why is this increasing while the general market advertising is decreasing?

1. In addition to the population growth, the share of buying power controlled by Hispanic consumers will grow to 10 percent, or $1.4 trillion, of the U.S. total by 2013, according to the Selig Center for Economic Growth at the University of Georgia's Terry College of Business. That is more than all other minority groups, including African Americans, the articles says.

2. The article states: "Hispanics' shopping habits also make them appealing to advertisers: They are more frequent shoppers than non-Hispanics and are more willing to buy from advertisers than non-Hispanics, according to a survey released in June by Experian Simmons and Univision Communications."