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Hispanic Market

Why the Hispanic Market Should Be Part of Your Media Strategy

July 26th, 2016   ||    by Susan Kuchinskas

At the recent Cannes Lions Festival, campaigns for the Hispanic market won a total of sixteen awards, reported AdvertisingAge. Omnicom’s multicultural agency Alma alone took home eight Lions, while We Believers walked away with four.

It’s not only creativity that’s being poured into advertising for the Hispanic market; ad dollars are also flowing there, as advertisers of general-market products wake up to the buying power and cultural influence of Hispanics.

Hot Market

American Hispanics are likely to be bilingual and bicultural, according to Nielsen, moving fluidly between cultures and languages. This is especially true of younger Hispanics, notes The Community. Biculturals now account for 44 percent of the Hispanic population in the United States and 45 percent of total US Hispanic buying power.

Hispanic consumers are on the cutting edge of technology and lifestyle trends. They spend more time using mobile devices, notes Nielsen, and their digital media consumption on all devices is increasing, reports Marketing Charts. Because of this, Portada expects online video advertising to the US Hispanic market to grow at a compounded annual rate of 45.2 percent, from $70 million in 2015 to $450 million by 2020.

In addition to using mobile devices, this segment of the population is also turning on the TV. Spanish-language channel Univision is the fifth most-watched network in the States, according to The Washington Post. At the same time, primary English speakers—Hispanic or not—are increasingly tuning into television programming with a Spanish flavor. For example, the audience for El Rey, a new cable channel launched by filmmaker Roberto Rodriguez in partnership with Univision, is 20 percent Latino, 20 percent African American, 10 percent Asian, and 50 percent white, according to the Guardian.

Tapping into the Hispanic Market

Many advertisers have been actively marketing to Hispanics for years. One notable example is Honda, who recently launched an integrated ad campaign, according to HispanicAd, for its Ridgeline truck. The campaign includes sponsorship of the Univision Deportes’ broadcast of “Campeón de Campeones,” as well as social media, digital, and a thirty-second commercial, “No Es Nada,” all by Honda’s multicultural agency Orcí.

Tecate recently launched its first-ever national ad campaign in English, notes Adweek. The TV spots feature Mexican boxing superstar Canelo Alvarez and soccer referee Felipe Ramos Rizo and appealed to a bicultural market.

Fellow marketers should note the importance of this campaign. As Hispanics are becoming more acculturated, non-Hispanics are adopting more aspects of Hispanic culture, like quinceañeras and soccer/fútbol, according to Media Life Magazine. That means that advertisers can pull double-duty and appeal to both Hispanics and the general market. A good example is Hispanic food purveyor Goya’s recent English-language spot “Real Life Chefs” that features diverse cooks using Goya products.

To be effective, media planners and buyers must understand the different levels of acculturation within this demographic, according to Lee Vann, co-founder of Hispanic digital agency Captura Group.

Programmatic Buying

Advertisers who want to reach the Hispanic market on Spanish-language television stations will soon be able to tap into the power of programmatic buying for linear television. Azteca America talked about plans to sell programmatically during its 2016 Upfront, although no further details have been released. Univision announced it would work with AOL to sell linear television spots, according to Media Post.

Another advantage of buying television advertising programmatically is that advertisers can use their first-party data derived from digital ads to improve the efficiency of their television buys. And with Hispanic consumers’ enthusiastic use of digital media, this could be a big win for brands that want to connect with these super consumers.

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