Portada Magazines' Hispanic Marketing 12 Predictions for 2012

Portada Magazine again published predictions for the 2012 Hispanic Marketing and Media industry.

1. Univision’s IPO will take place in 2012
The investors who took the broadcast media private will want to monetize their investment in 2012 through an IPO.

2. Mobile becomes huge for Hispanic Marketing
Mobile media (Mobile phones, Tablets and E-Readers) will become a major force in Hispanic Marketing and Advertising. That is why Portada is dedicating a special event (The Hispanic Mobile Marketing Forum on Sept. 19, 2012) to analyze this phenomenon. Hispanic Consumers spent more than $5.15 billion during this year’s holiday season on mobile devices, according to the Hispanic Holiday Mobile Survey 2011 by Zpryme.

3. The “SoLoMo” trend will continue
“SoloMo”, or Social-Local-Mobile will be increasingly applied to marketing strategies. Particularly in the Hispanic market, where both social networking and mobile usage overindex. Geolocalization when using mobile media, e.g. checking in on Facebook and/or FourSquare, or in review sites such as Yelp will be driving local consumer marketing and advertising. QR Code integrations in print advertising will play a particularly important role for retail. Online-Mobile Gaming and In-Game Advertising will play an increasingly important role.

4. T-Mobile will end in the hands of a Latin Telecommunications giant
Now that AT&T has officially announced that it is no longer pursuing a T-Mobile acquisition, we know for sure that as “a contractual penalty for the collapse of the merger, AT&T will pay T-Mobile $3 billion in cash, and give T-Mobile at least $1 billion worth of spectrum rights. Portada predicts that Latin Telco giants America Movil and Telefonica have a strong chance to end up acquiring T-Mobile.

5. U.S. Hispanic Advertising Market will grow by 5% in 2012…
As 50+ Hispanic marketing executives said in a recently published Portada Survey, U.S. Hispanic Advertising will grow by approximately 5% in 2012 driven by Auto, Political and Financial Advertising.

6. Hispanic Digital Advertising’s expansion will continue to grow at a high rate
While digital advertising in the U.S. Hispanic market still amounts to less than 5% of the overall advertising pie, compared to nearly 20% for the overall U.S. market, the U.S. Hispanic digital advertising market will continue to grow in 2012 at a very high rate.

7. Online Video will be on a roll
Within digital media Hispanic online video advertising will be growing the most. The rationale is very compelling: Hispanics watch more video online than their general market counterparts. Content providers will be working hard to increase their online offerings, particularly of Spanish-language online video, and satisfy the needs of the online video advertising markets.

8. Hispanics Newspapers will do well overall
Hispanic Newspapers will continue to have a relatively strong performance, particularly when compared to their U.S. general market counterparts. The strong community media element of Hispanic newspapers plays in favor of them. So does the fact that print media continues to be a great way to target Spanish-dominant U.S. Hispanics.

9. ImpreMedia will be acquired
Impremedia private equity backers Clarity Partners, Halyard Capital Fund, ACON Investments and Knight Paton Media as well as Goldman Sachs (who provided a loan) are looking for an exit. The likely buyer is a large general market newspaper chain who wants to place a strong bet on the Hispanic digital and print media markets.

10. Measurable (Targeted) Media will continue its expansion
The rise of digital media and the data about audience reach engagement etc that comes with, is impacting other media. Targeted TV (e.g. Hispanic audiences of general market TV programs) are also being developed and increasingly sold to advertisers.

11. E-Commerce and Online Media will get closer
Content Marketing applied to online media has a lot to do with SEO. Once the content attracts an audience, that audience can be monetized via advertising or via e-commerce. Major companies, who attract millions if not tens of millions of unique visitors, are betting on content production to attract the right audience and then convert readers into buyers. Watch out for more and more CPG’s and retailers hiring journalists and editors to produce and curate content on their corporate (media) sites.

12. Spanish-Language Media will continue to lead
During the last months of 2012 several new ventures, particularly digital media properties, have been launched to target English-dominant Hispanics online. Will these in-culture English-language media be able to differentiate itself enough from general market English-language media and obtain major advertising buys? The jury is still out. In any case, while English-dominant targeted Hispanic media is a great addition to the Hispanic advertising and media landscape, we think that, when it comes to mass media, in 2012 Spanish-language will continue to be the pre-eminent way to market to and reach the U.S. Hispanic population.

Hispanics Are Online, But do Marketers See Them?

eMarketer expects U.S. online advertising spending to reach $31 billion in 2011.  How much of that is spent targeting U.S. Hispanics? Industry figures show it at only $200 million in 2011, a mere 0.65% of the total investment in U.S. online advertising, according to an article in MediaPost's "Engage: Hispanics."

Woefully low, even if you're only targeting Spanish-dominant Hispanics.  This has to change in 2012 as studies continue to show Hispanics prevalence for on-line from both traditional and mobile/tablet platforms.

Online Hispanics Have A Hard Time Finding Health Information In Spanish

"When it comes to being healthy, Hispanics have several things going against them: language and cultural barriers, lack of access to preventive care and lack of health insurance. But there is another, lesser-known barrier that prevents them from living healthier lives: lack of online health information in Spanish." So says Lee Van in his MediaPost article about the lack of Spanish-language health content.

In the past 12 months, usage of health websites skyrocketed among the bilingual and Spanish-preferring online Hispanics. As a result, more than half of all online Hispanics visits a health site each month.

Growth in health site visitation by segment September 2010 - 2011
English Preferring: 25%
Bilingual: 47%
Spanish Preferring: 35%
All Hispanics: 32%

Percent of given segment that visited a health site in September 2011
English Preferring: 53%
Bilingual: 52%
Spanish Preferring: 51%
All Hispanics: 52%

This article ties back to what I wrote about in January 2010 after the release of the AOL Cyberstudy, which pointed out that Hispanics recognize the disparity between the availability of English and Spanish-language content. They perceive English sites as more comprehensive in part because they know the Spanish content is not.

Further, the study showed that Hispanics often prefer English content and mistrust Spanish content because Spanish-language sites are often little more than literal translations of English content. In fact, only 3% of respondents found Spanish sites more trustworthy and useful than those in Spanish.

The only way to overcome this challenges is to offer relevant, comprehensive and trust worthy health information in Spanish.  As Lee points out at the end of his article, there is a clear demand for Spanish language health information online and relatively few companies providing it.

PR Pros agree social media is important for reaching Hispanics, but only 45% use it

While acknowledging social media's importance, only 45% of respondents to a recent study say they uses said they actually use it, compared to 92% who use it to reach mainstream markets.


The study -- conducted by TeleNoticias and LatinoWire, surveyed PR professionals in conjunction with the Hispanic Public Relations Association (HPRA), Hispanicize, HispanicAd.com and Survey.com -- points out that the Hispanic market is top of mind for marketers as the results of the 2010 US census are released, and as the audience demands that companies interact with it where it is — online.

7 reasons to target the Hispanic Market

Good post by Gus Razzetti from StrategicSense laying out 7 reasons he uses to neutralize the most frequent rejections about marketing to the Hispanic market.

1. Hispanics represent a huge segment (don’t get caught by the word minority):
-- About 1/3 of U.S. population is either Hispanic, Asian or Black (doesn’t include 4 million Puerto Ricans).
-- 23 metro areas have more Hispanics than whites.
-- 326 counties where ethnic minorities are the majority—many of the largest, such as Los Angeles, New York, Chicago and Santa Clara.
-- Only 1 in 5 new households in the U.S. in 2009 were non-Hispanic whites.
2. Latinos presence keeps growing
-- Hispanics contributed 52 % of population growth since the year 2000
-- There are 9 births for every death. For non-Hispanic whites, the ratio is 1-to-1.
-- By 2015, population 3 largest ethnic groups will be: 110.5 million and Hispanics will represent nearly 50% of population
-- 80%+ of the U.S. population growth in the last 10 years has come from ethnic minorities.
3. Hispanics do have money to spend
-- Hispanics plus Asians contributed 2/3 of annual spending growth in 2010.
-- Hispanics form 16% of the population but nearly 50% of consumer spending growth in 2010.
-- Due to younger age, longer life expectancy and robust spending, acquiring multicultural customers today are worth far more than non-Hispanic whites.
-- Latinos over $2.5 million and Non-Hispanic whites less than $2.2 million over their life span when acquired today.
-- Buying power of Hispanics and African Americans is around $2 Trillion dollars, larger than Brazil’s entire economy was in 2009.
4. Latinos will have a bigger impact in your future than you think
-- 92% of retirees are non-Hispanic and American’s depend increasingly on Latino taxpayers.
-- Hispanics voted for Obama over McCain by 2-1 margin
-- Nearly 20% of congressional districts that will hold elections during the upcoming midterm cycle have a Latino population of at least 25%
-- Increasing levels of naturalization along with trends in voter registration results in an increasingly important electorate: politicians are catering more and more to Latino interests.
5. Hispanics are influencing mainstream
-- Online Hispanics have proven to be tech-savvy media trendsetters.
-- 40% of Latinos are creators (333 Index vs General Market) creating their own content: publish a blog or own website, upload videos/music, etc.
-- According to Ken Muench, 31% of the new Oxford English Dictionary words reflected crossculturalism, and many are food and entertainment-related, such as anime, telenovela, guayabera, taqueria, huevos rancheros and cilantro.
-- 75% of hip-hop music is sold to White youth.
6. Latinos have a strong (bi) cultural connection
-- Don’t overestimate the impact of US born or second generations, only 8% of Hispanics are assimilated.
-- 70% of Latinos are Bicultural and 22% still unacculturated.
-- 80% of Biculturals say that it’s very important for them that people know that they are Hispanic.
-- 95% agree that being a part of the Hispanic community in the US is extremely important to them.
-- 80 percent of Hispanics are bilingual and about 20 percent are dependent on English or Spanish.
7. Hispanics respond positively to specific (inclusive) marketing efforts
-- The uniqueness of this segment’s mindset and values requires relevant marketing efforts.
-- In culture campaigns tend to perform much better than adaptations
-- Sensis reports results of 200-300% difference in Hispanic response to digital ads.
-- 64% have responded to direct mail advertising compared to just 46 percent of the general U.S. population in the same period of time.

Sources: US Census Bureau, Geoscape, Ad Age, Mobile marketer, Pew Hispanic, AOL, Sensis, DraftFCB.

Free 2010 Hispanic Market Overview Report Available

Adam R Jacobson, a U.S. Hispanic market journalist and market research specialist, has released a report entitled, Hispanic Market Overview – 2010 (download PDF here from HispanicAd.com)

The first in an expected series of reports, provides an overview/snap shot of the Hispanic market. It also features a review of 2009 advertising expenditures, the latest Geoscape population statistics, detailed advertising activity at magazines according to Media Economics Group/HispanicMagazineMonitor and a detailed look at the fast-growing Hispanic digital and online industry.

Hispanic online ad spending sees continued increase

Marketers made some cuts to Hispanic advertising in traditional Spanish-language media but increased 2% in online spending, according to a report by the Jack Myers Media Business Report.

According to the report, total Hispanic ad spending is forecast to drop 11.2%, with a slight rebound projected for 2010.

The report predicts Spanish-language advertising will not reach its 2008 peak of $4.25 billion again until 2012, although its share of total US advertising continues to increase.

Forrester Research: Hispanics represent "dream segment" for advertisers

Forrester Research released a report entitled "Hispanic Consumers Offer Opportunities in a Recession." This report, as well as comments from Gisela Girard, chairman Association of Hispanic Advertising Agencies (AHAA), were cited in an article where Forrester Research Analyst Tamara Barber called the Hispanic population a "dream segment" for advertisers.

Why a "dream segment?"

Because of their growing buying power, their "economic optimism," and their loyalty to companies that woo them, she said. And, in a down economy, smart advertisers use ads "to build and maintain brand loyalty through relevance."

Batanga Buying HispanoClick?

Portada Magazine is reporting that Batanga maybe close to acquiring HispanoClick.

This is significant in that Batanga would be able to take on Univision.com in the area of online advertising. Batanga is already surpassing Univision.com in terms of visitors and has grown to be the online powerhouse in its category.

The interesting aspect, as Portada Magazine rightly points out, is that the trend of online media companies buying online advertising networks is no longer a general market trend.