Advertising in Mexico

1. Advertising in Mexico By: Evan Baxter Communications Major

2. Introduction: Mexico and Advertising • Mexico has a population of approximately 111,700,000 people. In that large of a population, millions of people come across different advertisements every day. • There are approximately 32,000,000 internet users and in a study from 2003. 1 of 5 Mexicans own a television so there is a decent but not large market in Mexico. • The purpose of my presentation is to show the value of advertising in Mexico and how education is benefitted from advertising

3. Advertising in Mexico • Mexico spends about 2 billion dollars for advertisements a year • Experts say that any American products sells successfully • Slightly more than 65 percent of the advertising peso is spent on television, with more than 80 percent of that going to Televisa, a communications giant that operates three nationwide networks. • Companies that are heavily advertised in Mexico are Coca-Cola, Frito-Lay’s Sabrita Chips, and Bimbo Bread

4. Mexican Advertising Struggles • The Mexican advertising as a whole is a struggling business.The fairly small size of the Mexican consumer market and the dislike of Mexican businesses to spending on advertising have made this a reform age for the country's advertising industry. • Many top ad agencies are not based in Mexico. Many Mexican agencies have survived by allying with international companies, which tends to obscure the smaller agency's identity.

5. Struggles Continued • Television advertising is the most effective medium in Mexico. Like the U.S. there are restrictions for certain products for when and where they can be shown. Ads for cigarettes and hard liquor are only after 10 P.M, as are commercials for condoms. • Another problem for Mexican ad agencies is that commercials are very expensive ($150,000 per minute). Small business cannot afford that kind of advertising so they must settle for other mediums. • Because about half of the population is under the age of 25, it is hard to market to the older demographics. • Advertisers do not even consider people under the age of 25 to be active consumers because they typically do not have the funds to be in that status. • In all of Mexico, only 12,000,000 people are considered to be active consumers

6. Better Future Ahead • These days there is a brighter outlook for Mexican media while they try to extend their markets to the U.S.. • Because 60% of Hispanics that come into the U.S. are Mexican, Mexican media can target that audience in the America. The most effective advertising states are the border states like Arizona, New Mexico, Texas, and California. • A prime example is El Latino magazine. In their publication, they advertise real estate. In Mexico, an average sized home is $150,000 compared to right over the border where the price is around $600,000. This has helped in Americans buying Mexican homes.

7. Projects Helping Mexican Schools • The Mexican School Project is a fundraiser by a high school in Medicine Hat, Alberta, Canada. • They raised $7,000 to help develop Mexican schools in Pedro Moreno and with help from the Sunrise Rotary Club they raised another $2,500 for school supplies • The Mexican government also decided to match what they raised. By 2010, the schools were almost finished.

8. Projects Helping Mexican Schools • The Camilla Rotary Club and the Bainbridge Rotary Club joined forces to create their own Mexican School Project. • Led by Camilla Rotary Club member Marlene Free, the Mexican School Project raised $26,000 for Puerto Vallarta, Mexico’s schools • They bought 20 computers for two middle schools, furniture, and 50 pairs of glasses • Their fundraising also included basic baby-sitting and care, physical hygiene bathing, healthy nutrition, physical therapy and general rehabilitation, special education classes, speech therapy, hydro massage, recreational therapy including music, singing, and dancing, art therapy and access to specialists. • They continue receiving grants from the International Rotary Club to keep this helping trend going

9. How My Major Can Assist the Development of Mexican Schools • In my major of communications, media is the main focus. It’s mostly about getting the word out to as many people as possible. • A career like advertising can be a great way to help and promote fundraisers and receive grants from people and companies. • Advertisements or stories could be broadcasted over television, radio, magazines, newspaper and internet about non-profit organizations looking to help this cause. • These ads could tell the public where to donate, how to donate, and if they would like to volunteer, how they could go about doing that.

10. Bibliography • (2006). The World Factbook: Mexico. CIA. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html • DePalma, Anthony. (1994) The Media Business: Advertising; Mexican Attitudes Shift to U.S. Goods. The New York Times. Retrieved from: http://www.nytimes.com/1994/11/23/business/the-media-business-advertising-mexican-attitudes-shift-in-flood-of-us-goods.html?pagewanted=all&src=pm • Johnson, Bob.(2011). The Sunrise Rotary Rides Again. The Mexican School Project. Retrieved from: http://www.mexicanschoolsproject.com/blog/ • Stripling, Sonia. (2009). Camilla Rotary Club lends helping hand in Puerto Vallarta. Retrieved from: http://www.camillarotary.org/Projects/projects.html