Companies Pursue Growing Hispanic & Latino Market With Ad DollarsMay 13, 2012
April 18, 2012: Source: MarketingCharts.com
US advertiser spending in almost all traditional mediums targeted at Hispanic audiences (Spanish advertising mediums) grew between 2010 and 2011, reflecting the potential of this young and growing market, which is forecast to reach $1.5 trillion in buying power by 2015,according to [download page] an April 2012 report from Nielsen. Total advertising spend on Spanish advertising mediums was more than $5.7 billion in 2011. Spanish language network TV made up the greatest share of spend, at 57%, and grew 13% year-over-year. Spanish spot TV was the next-largest medium, at 20% of total spending, though advertising on this medium increased just 1% year-over-year. National magazine spending, though accounting for just 2.4% of total spend, grew the most rapidly, at 26%, while Spanish cable TV, which accounted for almost 8% of spend, increased by 21%. Local newspaper spending, the smallest medium, was the only one to see a decline in spend, of 4%.
Spending Heavyweights Remain On Top
Procter & Gamble, the leading advertiser, maintained its top-ranked position in Hispanic spending, allocating 73% of its $225.6 million in spending to Spanish language network TV. Other companies on the top 10 list in both 2010 and 2011 were McDonald’s, AT&T, Verizon, Toyota, General Mills, and General Motors. Bancorp moved into the second spot in 2011, with $193.1 million in spending, with almost all (98%) of this on Spanish language network TV. In fact, all of the top 10 advertisers spent at least two-thirds of their Hispanic advertising budgets on this medium save for AT&T, which devoted an equal amount to Spanish language network TV as to spot TV (both at 42%).
Impact Better for Spanish Language TV Ads
Data from Nielsen’s “State of the Hispanic Consumer” indicates that Hispanics like TV ads 51% more if viewed in Spanish rather than English, and that hiring Spanish-speaking talent to deliver the script resonates 30% better with this group. In fact, although Hispanics remember English language commercials as well as much as the general population, the same commercial shown in Spanish can bump up ad recall by as much as 30%.
According to recent results from a Yahoo! Insights report, advertisers targeting Hispanic audiences with messaging targeted towards their ethnicity will be more likely to find favor with 1st generation than later generation Hispanics. Results from the report show that 70% of 1st generation Hispanics say they notice products and brands that make the effort to reach their ethnicity through advertising, while more than 3 in 5 are more likely to try such a product or brand, and be more trusting of it. This compares to 40% of later-generation Hispanics who notice products and brands blending ethnicity into their advertising, and less than one-third who are more likely to try that product or brand, and be more trusting of it.
- According to the Nielsen report, 56% of US Hispanic adults speak either only Spanish (28%) or mostly Spanish (28%), compared to 40% who speak either only English (15%) or mostly English (15%). The remainder speak Spanish and English equally.
- Hispanics have much higher concentration than the overall population average (16%) in Texas (38%), California (38%), Florida (22%), Colorado (21%), Nevada (27%), and New Mexico (46%).
- Hispanics tend to overindex in younger age demographics when compared to non-Hispanic whites. For example, they are much more likely to be 15-24-years-old (17.1% vs. 12.6%) and 25-34-years old (17.3% vs. 11.8%), and far less likely to be 55-64-years-old (6.8% vs. 13.6%).