The Association of Hispanic Advertising Agencies, who is hosting its annual conference in Miami
this week, released a report
that shows that the higher the percentage of overall all spend allocation to Hispanic media, the higher the company's revenue growth.
Specifically, those companies that allocate more than 14.2 percent in Hispanic marketing are showing high levels of topline revenue growth, the report says.
AHAA has divided Hispanic advertisers into five categories:
- Best in Class, defined by their allocation of more than 14.2 percent of overall ad budgets to Hispanic media;
- Leaders, companies which allocate between 6.4 and 14.2 percent;
- Followers, which allocate between 3.6 and 6.4 percent;
- Laggards, defined by their Hispanic allocations of 1.0 to 3.6 percent; and
- Denial, defined by their allocation of less than one percent.
Those of you who follow my blog or see my Hispanic Marketing Forum
presentations know how much I talk about the importance of budget allocation. I still confront many companies who claim not to have a "Hispanic marketing budget" when in fact their issue is one of proper allocation rather than needing more resources.
I invite you to read an article I wrote on the topic of allocation in April 2009 in Media Post
that still rings true today.