Hispanic TV Summit: Growing Hispanic Market Awaits "Cultural Mind-Shift"9/24/2009 10:59 AM Eastern
While the 2010 Census is very likely to back up Hispanic marketing
executives claims that the increasing population will lead to a
thriving consumer marketplace, advertisers may still be reluctant,
according to a panel of marketing and sales executives at the 7th
annual Hispanic Television Summit in New York on Sept. 23.
Census numbers are certainly generating excitement among Hispanic
marketers, but as Bromley Communications COO Jessica Pantanini says,
"what really counts is the action that is taken by corporate America."
Pantanini said marketers need to take the Census data but also approach
advertisers with metrics that show increased Hispanic viewership means
increased consumer spending in the market.
But on the advertiser
side, she believes it will take a "cultural mind-shift" and a better
understanding of Hispanic culture in order for buyers to see the
market's blossoming potential.
Others on the panel, entitled
"Media Buyers & Sellers: The State of Hispanic TV Media," agreed
that lots of that potential lies in Hispanic cable. Andrew Capone,
senior VP of marketing and business development for National Cable
Communications (NCC), said cable could make a compelling pitch to
marketers since the industry can layer its subscriber information
(where customers live and how they consume their media) to help
advertisers zero-in on specific audience segments.
marketers are seeing some positive signs despite the beleaguered ad
climate. While many in the industry point to the fact that ad revenues
slowed up in the Hispanic TV market for the first half of 2009-by
around 7% (a sizeable dip, but smaller than the drop in the general
market)-Capone pointed out that a decrease in Spanish-language media
sales didn't necessarily mean advertisers weren't still getting at the
Hispanic consumer. Capone said many advertisers were getting at
consumers through multiplatform initiatives.
executive VP of network sales at Univision, concurred, saying he
expected the second half of 2009 numbers to indicate a rebound in the
Spanish-language space. While acknowledging "we do have hurdles,"
Lazarus added that "the model is working and people are coming into the
Among the hurdles marketing executives in the Hispanic
space have to contend with is the fact that corporations often have
junior-level salespeople on Hispanic accounts, forcing marketers to
often teach them "Advertising 101," as Pantanini joked. There are also
generally high rates of turnover in those positions, making it
difficult to build a relationship and long-term strategy for targeting
Hispanic consumers at many corporations.
Still, many marketers
have been encouraged by the newfound urgency of many companies to get
to Hispanic consumers. Danielle Gonzales, senior VP and managing
director of Starcom MediaVest's Tapestry division, said big-name
clients like Procter & Gamble and Bank of America are stepping up
their efforts to attract Hispanic consumers and acknowledging that they
haven't always been great marketers to Hispanics. Gonzales is pleased
to see that new level of thinking and hopes the company's understand
"now is not the time to turn back."
VCI Solutions CEO Sarah Foss
said she had some broadcast clients who faced up to 40% budget cuts. In
the face of those numbers, she remains encouraged to see that dollars
flowing into the Hispanic market haven't decreased as significantly. In
today's market, that may be what Hispanic marketers can hope for,
leaving them with a feeling of optimism followed quickly by caution.
"This is where the growth is," said Foss, before adding, "Flat is the new growth."
was some disagreement among the panelists as to whether television was
still the first place advertisers should go to attract Hispanic
consumers. Capone cited Nielsen and said television was still the main
driver of marketing message and consumer interest. Others said
multiplatform content was already a strong driver of viewers and it was
just a matter of time before advertisers started putting serious
dollars into other forms of media.
"It's not television anymore,"
said Tom Maney, senior VP of ad sales at Fox Sports en Español. "It's
content. What screen it comes from doesn't really matter." Gonzales
agreed, saying that more money would flow to mobile and other digital
devices when more long-form content became available on those
Capone, at least for now, disagrees. "No one is
paying for it," he said. "The consumer wants it for free; the
advertiser wants single-digit CPMs. It's a hobby; it's not a business."
Capone said that until marketers and advertisers could settle on
accurate ways to quantify the value of digital and mobile content, the
dollars wouldn't flow away from TV.
But despite the
difficulties, marketers still feel positive that 2010 will be a
breakout year for the Hispanic market, with the Census and World Cup
giving the population a chance to show its purchase power.
Said Univision's Lazarus, "With the Census growth, with the ratings, the story is there."