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The Hispanic Marketplace

The Hispanic Marketplace. Demographic & Geographic Trends. U.S. Hispanic population has grown 35.6% from the 2000 Census to the July 1st, 2009 Census Update. Now totaling 48.4 million, or 15.8% of the total population, Hispanics are the largest minority group in the nation.

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The Hispanic Marketplace

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  1. The Hispanic Marketplace

  2. Demographic & Geographic Trends

  3. U.S. Hispanic population has grown 35.6% from the 2000 Census to the July 1st, 2009 Census Update. Now totaling 48.4 million, or 15.8% of the total population, Hispanics are the largest minority group in the nation. Source: U.S. Census Bureau Annual Population Estimates, June 2010

  4. U.S. Hispanic Population Will Continue to Boom Year Hispanic Total U.S Hispanic % Total 2000 35,622,000 282,125,000 13 2010 47,756,000 308,936,000 15 2020 59,756,000 335,805,000 18 2030 73,055,000 363,584,000 20 2040 87,585,000 391,946,000 22 2050 102,560,000 419,854,000 24 Source: Advertising Age Hispanic Fact Pack 2009, U.S. Census Bureau, June 2010

  5. U.S Hispanic Population Distribution by Place of Origin Dominican 2.8% Other Hispanic 17.7% Cuba 3.4% Salvadoran 3.1% Mexico 64% Puerto Rico 9% Source: Census Bureau, June 2010

  6. Hispanic Population is Younger than the U.S. Population – Nearly 50% Under 24 Years Old % Hispanic % Total U.S. Index of Population Population Population Hispanic To Ttl U.S. Under 5 years 5.83 3.49 167 5 to 13 years 8.55 6.10 140 14 to 17 years 3.42 2.80 122 18 to 24 years 7.8 6.9 113 25 to 44 years 5.85 5.15 114 45 to 64 years 8.68 14.40 61 65 years and over 2.93 7.55 39 Median age 27.4 38.3 71 Source: U.S. Census Bureau Annual Population Estimates, June 2010

  7. Hispanics Account for Over 25% of the Population in Four States Hispanic % Ttl U.S. Hispanic as % Ttl State State Population Hispanic Population Population California 13,681,375 28.3 37.02 Texas 9,148,056 18.9 24.75 Florida 3,992,297 8.3 10.80 New York 3,274,385 6.8 8.86 Illinois 1,968,599 4.1 5.33 Arizona 2,031,650 4.2 5.50 New Jersey 1,452,824 3.0 3.93 Colorado 1,018,204 2.1 2.75 New Mexico 915,738 1.9 2.48 Georgia 819,887 1.7 2.22 Source: U.S. Census Bureau Annual Population Estimates, June 2010

  8. Purchasing Power

  9. Hispanics are an Influential Force in the U.S. Consumer Economy According to estimates from the University of Georgia’s Selig Center for Economic Growth: • Hispanic buying power will grow from $212 billion in 1990, to $978 billion in 2009, to over $1.3 trillion in 2013. • The 2009 value will exceed the 2000 value by 100% - a percentage gain far greater than the 45% increase in non-Hispanic buying power. • This substantial growth is supported by two major factors: favorable demographic growth and the increasing amount of Hispanic business owners. • The rate of growth of Hispanic-owned businesses (+31%) between 1997 and 2002 was triple that of the national average growth (+10%) for all businesses. Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  10. Top 10 States Account for 80% of Hispanic Buying Power State Totals in Billions 1 California $ 253.0 2 Texas $ 175.0 3 Florida $ 101.0 4 New York $ 76.0 5 Illinois $ 43.0 6 New Jersey $ 37.0 7 Arizona $ 31.0 8 Colorado $ 21.0 9 New Mexico $ 18.0 10 Georgia $ 15.0 Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  11. Media Usage

  12. Top 10 Hispanic Designated Market Areas *Percent of Hispanic households where only or mostly Spanish is spoken by all persons 2+ Source: Advertising Age Hispanic Fact Pack 2009; Nielsen Media Research Jan. 2009

  13. Top Primetime Network TV Programs Among Hispanic Viewers: Spanish-Language Among Hispanics, the Top 34 Shows are on Spanish Language Television. The First English Language Show doesn’t appear until rank 35 & only 10 of the top 100 programs are EL May 2009 Hispanic Avg. Hisp. Avg. Hisp. Rank* Program [Day] Network HH RTG HH (000) VWRS (000) 1 Mañana Para Siempre [Tue] Univision 22.9 2,904 5,132 35 American Idol [Wed] Fox 6.8 864 1,336 47 American Idol [Tue] Fox 6.0 765 1,179 58 Grey’s Anatomy [Thu 9pm] ABC 5.6 707 1,059 62 NBA Playoffs on ABC [Sat 3 (Special) 05/23] ABC 5.1 649 1,057 63 Dancing with the Stars ABC 5.0 626 900 70 Dancing with the Stars Results ABC 4.3 547 861 77 So You Think You Can Dance [Wed] Fox 4.0 510 801 79 House Fox 4.0 501 768 80 Heroes NBC 3.9 498 699 85 So You Think You Can Dance[Thu] Fox 3.8 484 756 *Ranked among all Hispanic viewers **The top 34 shows are on SLTV Source: Advertising Age Hispanic Fact Pack 2008; Nielsen Media Research 4/27 – 5/31/09

  14. Top U.S. Spanish-Language Radio Formats Top Radio Formats Among Hispanics (A 18+) Source: Advertising Age Hispanic Fact Pack 2009

  15. Hispanics use Electronic Media for a Variety of Reasons *Average hours Hispanics spend weekly. Source: Advertising Age Hispanic Fact Pack 2009; Spring 2008 MRI Survey of the American Consumer

  16. Hispanics are Highly Engaged with Mobile Multimedia Applications Hispanics 18-34 comprise 51.5% of the total Hispanic mobile population Hispanic Mobile All US Mobile Activity Subscribers Subscribers Watched video 6.7% 3.1% Listened to sideloaded music 6.8% 3.2% Accessed news/information via browser 18.8% 9.6% Played a downloaded game 14.4% 9.0% Accessed application 32.9% 18.8% Sent photo or video 26.8% 15.3% Source: Cellular-news 5/14/07; M:Metrics Survey

  17. Spanish Language Ad Spending

  18. Hispanic Media Ad Spending (Millions) Medium 2008 2007 % CHG Network/national TV $1,807.3 $1,789.4 1.0 Local TV 707.4 707.0 0.1 National radio 221.8 221.3 0.2 Local radio 529.2 524.1 1.0 National newspaper* 124.0 123.8 0.2 Local Newspapers* 186.2 185.7 0.3 Internet 225.5 179.9 25.4 Magazines 115.4 110.6 4.3 Out-of-home 86.9 86.2 0.8 TOTAL 4,003.7 3,927.9 1.9 *Excluding Classified Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence

  19. Top Ad Spending Categories in Hispanic Media 2008 U.S. Gross Measured Ad Spending ($000) Category 2008 2007 % Chg Telecommunications & Internet $659,817 $563,515 17.1 Retail 612,428 589,716 3.9 Automotive 571,431 714,868 -20.1 Restaurants 304,138 281,188 8.2 Food, beverages & candy 297,874 302,638 -1.6 General Services 280,942 248,809 12.9 Personal Care 263,981 229,714 14.9 Movies, recorded video & music 252,993 274,131 -7.7 Insurance 205,135 154,274 33.0 Medicines & remedies 169,266 203,564 -16.8 Source: Advertising Age Hispanic Fact Pack 2009, 7/28/09; TNS Media Intelligence

  20. Top 10 Advertisers in Hispanic Media (Measured U.S. Media Spending) 2008 Marketer Ad Spending ($000) %Chg Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence

  21. Top 10 Spanish-Language Spot TV Advertisers 2008 Marketer Ad Spending ($000) % Chg Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence

  22. Top 10 Spanish-Language Network TV Advertisers 2008 Marketer Ad Spending ($000) % Chg Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence

  23. Top 10 Hispanic Newspaper Advertisers 2008 Marketer Ad Spending ($000) % Chg Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence

  24. Top 10 Hispanic Internet Advertisers 2008 Marketer* Ad Spending ($000) % Chg *Excludes paid search and broadband video Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence

  25. Top 10 Hispanic Spot Radio Advertisers 2008 Ad Spending ($000) %Chg Source: Advertising Age Hispanic Fact Pack 2009, Measured radio ad spending from Nielsen Co. Percent change is computed from 2007 data

  26. Top Hispanic Markets by Media Spending for Spanish-Language Outlets 2008 Estimated Expenditures in Millions DMA TV Radio Print Total Los Angeles $357.69 $191.42 $102.43 $651.54 Miami/Ft. Lauderdale 132.58 103.31 66.89 302.78 New York 114.22 93.17 55.29 262.68 Houston 64.08 63.98 9.76 137.82 Chicago 52.24 48.21 27.75 128.20 San Francisco/Oakland/San Jose 47.57 32.13 6.40 86.10 Dallas 39.34 31.88 9.07 80.29 San Antonio 24.06 35.81 4.74 64.61 Phoenix 30.29 15.48 18.04 63.81 San Diego 29.55 20.09 5.89 55.53 TOTAL 891.62 635.48 306.26 1,833.36 Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence

  27. Top 10 U.S. Hispanic Advertising Agencies U.S. Revenue in thousands* Agency 2008 % Change Dieste, Harmel & Partners (Omnicom) $44,900 11.1 Vidal Partnership 35,000 12.9 Bravo Group (WPP) 31,500 5.0 GlobalHue 28,178 37.2 Lopez Negrete Communications 24,150 1.6 Zubi Advertising Services 21,500 9.7 Bromley Communications (Publicis) 21,100 -6.6 Conill (Publicis) 19,900 -3.9 LatinWorks (Omnicom) 17,440 1.5 Alma DDB 14,800 13.0 TOTAL 258,468 *Advertising Age estimates, by US revenue in 2008 Source: Advertising Age Hispanic Fact Pack 2009, 7/09

  28. Language Preference and Marketing to Hispanics

  29. Language Preference(Language Spoken at Home - Hispanic Adults 18+) Speaking both Spanish and English Source: Isabel Valdes/Consultant, July 30, 2008 – Based on 2008 Nielsen UEs

  30. Language Plays a Key Role in the Hispanic Culture • Hispanic culture has made a huge impact on mainstream America • The increasing political, cultural and economic influence of Hispanics has changed the way America looks, thinks, eats, dances, votes and conducts business. • Retro-acculturation • As being part of an ethnic group is “in” a burgeoning cultural pride has taken hold and teens begin the process of retro-acculturation where they are interested in learning more about their culture, language and traditions. Sources: Isabel Valdes/Consultant –July 30, 2008; Cheskin Research 2007

  31. Marketing to Hispanics • US Born • First- and second-generation Hispanic youths tend to thoroughly identify with and embrace their cultural heritage even as they begin blending into American society. • Feel comfortable using “ready to serve”. • Retail and marketing savvy. • Foreign Born • Advertising/information “hungry”. • No brand heritage – many brands are “unknown”. Source: Isabel Valdes/Consultant –July 30, 2008

  32. Marketing to Hispanics • Connecting culturally and emotionally is key to successful Hispanic communication. • An effective approach is “in-culture marketing”, capitalizing on core common values: • Extremely family-oriented. Hispanic families are very likely to be three-generational, with grandparents an integral part of the unit. • Marketing strategies with family values themes have strong appeal to them. • Group oriented. Focus more on core group(s) rather than on the individual. • Enjoy group outings such as street fairs, festivals and sports events. Source: Isabel Valdes/Consultant –July 30, 2008

  33. Successful Hispanic Advertising Campaigns

  34. Telemundo Teamed with GMC for Web Soccer Reality Series • Telemundo created a campaign for the Sierra truck brand called “Long Shot” that allowed players a second chance to impress the team’s coach and viewers. • “The concept was an interactive soccer experience that ties together grass roots, web, mobile and TV,” said Peter Blacker, senior VP-digital media at Telemundo. • According to Telemundo, whenever they do cross-platform integration like this Sierra campaign, scores go up for brand awareness and likability for the related ad campaign. • The campaign included 12 broadband episodes on Yahoo Telemundo, weekly updates on two sports shows plus one-minute units with GMC spots and web content, a custom site that’s GMC-branded on Yahoo Telemundo, and mobile phone promotions. Source: Advertising Age 7/7/08

  35. Bank of America Launched Spanish Language Advertising Campaign • Hacia Adelante was the name of a Bank of America Corp.’s Spanish-language ad campaign. • The campaign marketed the importance of a checking account in owning a first home, paying for college and starting a small business. • “We want to instill confidence among our Hispanic customers that they should feel comfortable visiting a banking center and speaking with our bilingual associates about their financial needs and goals,” said Lynn Kuttruff, marketing executive for consumer and small-business deposits and growth markets. • Promotion for the campaign included television, radio, print, ATM and branch advertising. Source: East Bay Business Times, 8/6/08

  36. Dr Pepper’s First Quinceañera Sweepstakes • Dr Pepper promoted a special sweepstakes in 2007 in 20 Hispanic markets. • Customers received a free CD with traditional quinceañera songs with the purchase of two 12-packs of Dr Pepper. • Some CDs contained tickets to mail in for inclusion in the sweepstakes drawing. • The marketing goal was to become the soft drink brand associated with a tradition that Hispanic teens and their families value. • The campaign included remotes with local radio stations, in-store displays and street teams handing out flyers. Source: Adweek 6/11/07

  37. Unilever Spanish Language Initiative • In 2007, Unilever launched a major Spanish language initiative in celebration of Hispanic culture and traditions. • The new features of the marketing program called “Vive Mejor” (“Live Better”) included a bilingual consumer publication, a Spanish language Web site and television integrations. • The publication, Vive Mejor (a free magazine available at supermarkets in high-density Hispanic neighborhoods across the country), offered shopping and beauty tips. • Unilever also ran five-minute branded segments with their personal-care and food brands during Univision’s morning show “Despierta America.” • A one-hour reality cook-off with a $1 million grand prize also ran on Galavision. Source: Adweek 5/22/07

  38. Home Depot Hispanic Advertising Campaign • Home Depot’s “My Favorite Corner” ad focused on Hispanic consumers and their unique home improvement stories. • The campaign was based on the strong emotional connection Hispanic customers have to their culture and the way it is expressed in their home improvement projects. • English and Spanish advertising featured the Home Depot’s tagline, “Puedes hacerlo. Podemos ayudarte.” Source: hispanicad.com 4/9/07

  39. Restaurants Tailoring Advertising Programs to Hispanics • Pizza Patron found that community involvement and tapping into a strong sense of family is an effective way to market to Hispanics. • El Pollo Loco utilizes different strategies and ad campaigns for Hispanics, which represent 50% of the chain’s customer base. • Olive Garden developed a communications plan that leveraged its existing brand strategy to have more relevance with Hispanics. • Papa John’s expanded its online ordering site to include a Spanish language section. • McDonald’s launched a multi-media campaign during Lent to promote the Filet-O-Fish sandwich to Hispanics. Source: The Food Institute Report 1/22/07

  40. Targeting Hispanics is a Winning Strategy for P&G • A longtime Spanish language television advertiser (since 1961), P&G is currently the number one overall Spanish language advertiser. On Spanish language TV alone, it has doubled its investment in the past 5 years and partners with a variety of organizations dedicated to serving the Hispanic community. • Even in this challenging economy where private label has been capturing major market share, P&G continues to see advantages to its Hispanic marketing efforts. According to P&G, its fastest growing brand Bounty, is a brand where it has long been running value-oriented communication. “Consumers recognize its performance advantages. On Bounty, we are growing both share on the value tier (Bounty Basic) and also on the premium tier behind Bounty Extra Soft which was designed to [appeal primarily to] Hispanics.” (David Miller Gomez-Giron, P&G/Associate Marketing Director). Sources: TNS-MI Stradegy; Brandweek – 8/14/2009

  41. State Farm Accelerates Hispanic MarketingEfforts • While it has been marketing to Hispanics for the past decade, State Farm recently stepped up its efforts, spending nearly $58 million in total Spanish language media in 2008 (double its 2007 SL advertising efforts). • Prior to 2005 State Farm felt it lacked an integrated marketing strategy in targeting Hispanics. Its goal was to develop a long term strategy that fully communicated its services and benefits to the Hispanic market. • In hopes of connecting with Hispanics on a deeper level it earmarked more marketing dollars for community event sponsorships such as bike safety fairs and support of local baseball and soccer teams. • “Consumers are savvy today. But you can take a relationship deeper when you can connect with consumers in ways they don’t necessarily expect.” (Mark Gibson, Assistant VP, Advertising/State Farm) Source: The Miami Herald – 8/10/2009

  42. Thank You!

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