latino lingo

All things related to effective Hispanic marketing, Hispanic advertising and Hispanic public relations.

Monday, November 07, 2011

Moving Beyond The Hispanic 'Right Spend' Argument

How much should a company allocate for the Hispanic market?  The Association of Advertising Agencies says it's 14.2%.  But, is that a number that can arbitrarily used across the board?  I've said no for quite some time. Instead, I've always advocated that the "right" spend should link, if nothing else, to a company's actual customer base that is Hispanic.  In other words, if your target market is 40% Hispanic then your budget allocation should be 40% or close to 40%.

Here is an article from Jose Villa that takes my argument into a few more specific, and relevant, areas.  He argues, correctly, that the AHAA number not only can't be applied as a macro approach but also that the recommended percentage only focuses on Spanish-language paid media.

Perhaps that's the right number if on top of that you add, as Jose says, earned media (i.e. public relations, events social media, etc.) as well as "owned" media (i.e. in store).  Perhaps.  But there is a danger, and ultimately a diminishing return on an association like AHAA, if we as an industry start settling for a "magic number."

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