Hispanic Market Overview 2012

HISPANIC MARKET OVERVIEW, presented by López Negrete 2012 Edition

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TABLE OF CONTENTS

INTRODUCTION 3

2011: WHERE THE DOLLARS WENT BIG INVESTMENTS FROM CORE ADVERTISERS 6 RADIO: DOLLARS FUELED BY EMERGING MARKET GROWTH 8

THE U.S. HISPANIC MARKET: POPULATION SNAPSHOT 12 MULTICULTURAL AMERICA, BY COUNTY—2016 14 HISPANIC POPULATION GROWTH —1980 15 HISPANIC POPULATION GROWTH — 2016 16 HISPANIC VS. NON-HISPANIC WHITE POPULATION GROWTH – 1990-2016 17 * U.S. Hispanic population vs. Total population – Top 50 markets – 2011 24

THE U.S. HISPANIC MARKET: AGENCY HISPANIC VS. ‘SPANISH’: THE BATTLE EVOLVES 25 THE HISPANIC CONSUMER: CONSTANTLY CROSSING CULTURES 29 THE U.S. HISPANIC MARKET: AGENCY/ONLINE/PR SOCIAL MEDIA: THE HISPANIC HOT SPOT 31 BRAND LEADERSHIP, ACROSS ALL PLATFORMS 33

THE U.S. HISPANIC MARKET: ONLINE THE PORTAL: ADAPTING FOR ITS AUDIENCE 35

THE U.S. HISPANIC MARKET: MEDIA CULTURAL FLUENCY: WHAT MATTERS MOST 38 CROSS-PLATFORM VALUES 41 TR3S: ‘A BRIDGE BETWEEN TWO WORLDS’ 42

THE U.S. HISPANIC MARKET: SPORTS A KEY CONNECTOR TO LATINO CONSUMERS 45

THE U.S. HISPANIC MARKET: SYNDICATED RADIO PROGRAMMING MUSIC, TALK, AND LOTS OF GOALS 49

THE U.S. HISPANIC MARKET: TECHNOLOGY CONTEXTUAL POWER 52

HMO MARKET PROFILE: CHICAGO 54

THE U.S. HISPANIC MARKET: NEWSPAPERS DIGITAL DIVERSIFICATION 57

THE U.S. HISPANIC MARKET: MAGAZINES HISPANIC GLOSSY OVERVIEW: WHO’S SPENDING WHERE 59

ABOUT THE AUTHOR 61

ADVERTISER INDEX 62


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INTRODUCTION

What is the Hispanic market all about?

According to Tony Ruiz at The Vidal Partnership, that is one of the most-feared questions from creatives. In a conversation at his New York office in late November 2011, Ruiz and I spoke about how to shape the 2012 edition of Hispanic Market Overview. Ruiz and I had previously exchanged some thoughts about how “disgusting” the level of advertising dollars allocated to Spanish-language media was. I challenged his remark, pointing to the rise in English-preferred Hispanics and bilinguals and, as a result, lower use of Spanish-language media.

Through interviews conducted over the first quarter of 2012 and through research studies examined over late nights shared with Chinese food and Magic Hat beer, it became clear that Ruiz had a very valid point. Indeed, the share of advertising dollars going to Spanish-language media is below where it should be. But it is the share of dollars to “Hispanic media” that needs to increase.

“Hispanic media” is comprised of not only Spanish-language media but also English-language media featuring culturally relevant content for the bilingual, bicultural Latino – the largest growth segment of the U.S. Hispanic market. There is also “Spanglish” media, with a mix of English and Spanish targeting a young, hip and influential audience. Interestingly, that’s nothing new – WQBA-FM “Super Q” did that in Miami nearly 30 years ago, and the WPBT-Channel 2 sitcom “Qué Pasa, U.S.A.” continues to live on in reruns nearly 40 years after its ground-breaking debut. Today, “Qué Pasa, U.S.A.” is still ahead of its time. That’s pathetic.

Multicultural America is rapidly becoming Mainstream U.S.A. That’s why this report delves deep into the key issues facing marketers, agencies, media buyers and media planners already familiar with the players. New to Hispanic marketing and seek the basics, or a “Hispanic 101?” We invite you to download the 2010 and 2011 editions of Hispanic Market Overview by visiting AdamRJacobson.com.

According to the Selig Center for Economic Growth 2010 report “The Multicultural Economy,” Hispanic buying power is expected to grow by 50% between 2010 and 2015, to $1.5 trillion. A Nielsen study of U.S. population by ancestry found that Mexicans account for 33 million Americans, second only to Germans and ahead of the Irish, the English and Italians.

If you’re not marketing to Hispanics, why bother selling your product, good or service?

Adam R Jacobson


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2011: WHERE THE DOLLARS WENT One year ago, uncertainty about when advertising activity would get its Census 2010-fueled jump start was still a topic of discussion among many Hispanic marketing and advertising professionals. By September, optimism rose. As 2011 came to a close, a robust fourth-quarter gave Hispanic media the adrenaline boost it had craved for months: Hispanic media is not only healthy, but it far outperformed the total market in 2011.

According to Kantar Media, Spanish-language television enjoyed an 8.3% jump in measured ad spending between 2010 and 2011. This statistic includes the four broadcast networks rated by Nielsen – Univision, Telemundo, TeleFutura and Azteca América – in addition to four undisclosed Spanish-language cable television networks and 71 local Spanish-language television stations. Higher sell-out levels at over-the-air networks served as the chief catalyst for the growth. With the anticipated Q3 launch of MundoFox in 20 Designated Market Areas (DMAs), along with the addition of new Univision cable networks, ad spending for Spanish-language television is set to see its biggest surge in years.

With Hispanic TV on fire, marketers and advertisers should also set their sights on Spanish-language magazines. Kantar Media, which uses data from the Publishers Information Bureau, measured nearly 25% year-over-year increases in measured ad spending for Hispanic glossies between 2010 and 2011. Spanish-language newspapers also saw growth – bucking the trend of total-market dailies and weeklies, which continue to see reader and advertiser erosion. Kantar Media data show Hispanic newspapers enjoying a nearly 2% improvement in measured ad spending from 2010 to 2011. By comparison, total market newspapers were off 3.7%, year to year.

The spectacular performance of Hispanic media in 2011 was fueled in large part by steep rises fourth quarter activity, compared to 2010. Spanish-language TV was up 19.1% in Q4 ’11, compared to the same period a year earlier. Spanish-language magazines grew 25.1% from Q4 ’10 to Q4 ’11, while Spanish-language newspapers enjoyed a stunning 10.4% rise in Q4 ’11.

With a flurry of activity highlighted by the launch of a new Spanish-language broadcast television network, in addition to new cable television networks from the No. 1 Hispanic entertainment company, increased attention to the Latino media consumer will heighten awareness and provide greater opportunities to capture more ad dollars while welcoming the advertiser that has remained reluctant to engage with consumers who enjoy Spanish-language content -- no matter their preferred language.


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The improvement in Hispanic advertising dollars came as overall ad spending during Q4 slipped by 1%, compared to the same period in 2010. This marks the first quarterly decline since the end of 2009 and points to a slowdown in advertising growth rates seen in every quarter since Q3 2010.

Why? Digital and mobile budget shifts could be the culprit. In prepared comments, Kantar Media Intelligence North America SVP/Research Jon Swallen said, “Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly toward emerging and unmeasured digital platforms bears watching as 2012 unfolds.”


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BIG INVESTMENTS FROM CORE ADVERTISERS

Kantar Media data show the top 10 advertisers in Hispanic media investing $1.4 billion during 2011 – a jump of 29.2%. Yet this group accounts for 24.7% of all Hispanic media expenditures, the largest Top 10 share concentration of any medium.

Indeed, the Top 10 players are largely familiar to Hispanic market observers. Discounting “Broadcasting Media Partners,” a pseudonym for activity across Univision’s multimedia properties, the top advertiser in Hispanic media during 2011 was Procter & Gamble, with $209.6 million invested.

P&G increased its Hispanic marketing budget by 9.6% from 2010 – despite an overall dip in its advertising dollars, year-to-year. According to Kantar Media, P&G remained the No. 1 overall advertiser by a large margin, with $2.95 billion invested in all U.S. media in 2011. That actually reflects a 5.4% drop in ad dollars from 2010 for the consumer packaged goods (CPG) giant. P&G’s activity in 2012 is set to reach new heights, thanks to the recent appointment of Ernesto Adduci as Vice President/Account Director for Lápiz, leading the agency’s efforts with such brands as Gain, Bounty, Charmin, Always, Dawn, Prilosec OTC, Herbal Essences, Puffs and Clear Blue.

Meanwhile, Hispanic media can brag about a whopping 131% year-over-year investment increase for Kraft Foods seen in 2011. The jump came as the company in March 2011 selected Houston-based López Negrete Communications to handle brand leadership, strategic planning, business analytics and creative development for its Maxwell House coffee brand in the U.S. Hispanic market.

Agency CEO Alex López Negrete cited his firm’s experience with CPG companies in successfully building Hispanic consumer activity in nabbing the account. Maxwell House joins Kraft mayonnaise, Kraft Singles cheese, and Ritz crackers on the LNC roster.

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General Mills and Toyota Motor Corp. also played their part in making 2011 a strong year for Hispanic media. Neither brand made the overall top 10, according to Kantar Media.

The same can be said for Dish Network, which grew its Hispanic advertising budget by71.2% from 2010 to 2011 and is now the No. 2 advertiser, ahead of McDonald’s. The quick service restaurant (QSR) chain slimmed its overall Hispanic marketing dollars by 2.6%, to $114.4 million, but remains an integral and vibrant player. Digital, mobile, experiential and “grass roots” marketing dollars should also be considered when looking at the golden arches.

Wireless services companies tempered their overall Hispanic market ad expenditures, with Verizon and AT&T scaling back their overall dollars to Spanish-language media. General Motors is now No. 10 among U.S. Hispanic market advertisers.

Companies in the overall top 10 that are absent from the Hispanic top 10 include Pfizer, which invested more than $1.2 billion in total market media in both 2010 and 2011. L’Oreal SA grew its overall budget by 18.1% in 2011, to $1.34 billion, and ranks sixth; the company is highly active in the U.S. Hispanic market, in particular with print and online vehicles targeting Latinas.


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RADIO: DOLLARS FUELED BY EMERGING MARKET GROWTH

It is well established that the bulk of the U.S. Hispanic market’s advertising dollars are concentrated in Spanish-language television – the mass media that assumingly delivers the most eyeballs for the buck.

Yet the radio industry has traditionally done the best job of tracking advertising dollars and reporting on annual results. BIA/Kelsey in April 2012 released its top-line total radio revenue data for 2011, and an interesting dichotomy has developed. As reported by

Radio-Info.com columnist Tom Taylor, Portland, Maine enjoyed 22.8% revenue growth between 2010 and 2011, finishing out the year with $25.4 million in total radio revenue. In Worcester, Mass., just to the west of Boston, total radio revenue increased 15.8%, to $12.9 million, from 2010 to 2011. Mid-size markets also enjoyed healthy albeit more conservative growth – Providence, RI, home to sizable Portuguese and Latino communities, saw total radio revenue improve 9.9%, to $45.3 million. According to BIA/Kelsey, these increases are endemic in times when national advertising dollars shrink. That’s exactly what happened in the last few months of 2011, when the nation’s top markets saw national activity slide.

Overall over-the-air revenues were statistically flat in 2011, inching ahead 0.9% from 2010 to finish at $14.1 billion, BIA/Kelsey reports. Online and digital revenue brings an additional $439 million to the total, with strong growth ahead. BIA/Kelsey predicts radio’s online revenues to easily surpass $500 million in 2012 and surge to $767 million by 2016.


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With national dollars down and local activity up for all radio stations, where does that leave Hispanic radio? The forecast is cloudy, with occasional bursts of sunshine. Emerging markets represent the strongest growth for Hispanic radio broadcasters, with companies such as Adelante Media Group, Entravision, Curtis Media Group, Davidson Media Group, Connoisseur Media and even the largest operator in the U.S., Clear Channel, active in some of the most lucrative markets, long term.

Are client-side marketers, advertisers and media buyers interested? In an October 2012 visit to a large media buying and planning agency by The Adam R Jacobson Editorial Services and Research Consultancy, discussion about the Sacramento-Stockton-Modesto DMA was tempered by questions about the Los Angeles market. Are markets such as Milwaukee and Philadelphia ignored because they are so close to mega-sized markets such as Chicago and New York, respectively? Are budgets so tight among

marketers that investing in Hispanic media in a sub-Top 15 Hispanic DMA simply costs too much?

According to top Hispanic radio broadcasting executives, the troubles Spanish-language and Hispanic-themed audio content companies face are perhaps more fundamental. Speaking at the Radio Ink Hispanic Radio Conference, held in March 2012 in San Diego, Adelante Media Group CEO Jay Meyers – a veteran of total-market radio

– said he is not one to go into an agency to talk about getting Hispanic advertising dollars. “I’m here to talk about how 100 percent of the dollars are going to reach 87 percent of the market … and that’s stupid! If we got 33 cents on the dollar for the percentage of the audience that is Hispanic, we wouldn’t be here [in San Diego] today. We’d be in Maui, paying our own way.”

Entravision Radio Division President Jeffrey Liberman declared that it is tougher today for Hispanic radio sales executives than it was in 1992 to lure advertisers. Therefore, he called on Hispanic radio to step up in unison and start fighting for its rightful share of the ad dollars. “We have to do a better job in sales and provide our advertisers reasons to buy us. Today, we have a more competitive marketplace. Research has gotten better. We need to unite, as an industry, and go after Corporate America. We can worry about competition later, but we need to hit Corporate America over the head … I’m going to do it whether I am joined or not.”

In 2007 total radio revenues came in at $17.9 billion. Even with digital and online growth, is an $18 billion target a dream of yesteryear? As the U.S. economy starts to recover from its worst economic malaise since the 1930s, the App may be the best thing that could have ever happened to the radio industry.

“We need to unite, as an industry, and go after Corporate America. We can worry about

competition later, but we need to hit Corporate America over the head … I’m

going to do it whether I am joined or not.” — Jeffrey Liberman, Entravision Radio


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Already, “radio” is a term that should be replaced by “audio content,” given the proliferation of Smartphone-friendly Apps including Clear Channel’s iHeartRadio, CBS Radio’s Radio.com and TuneIn, which allows users to stream thousands of AM and FM stations from around the world within seconds of conducting a search by song title, a particular recording artist, or the radio station’s name.

According to the 2012 edition of The Infinite Dial, produced in partnership by radio industry ratings firm Arbitron and Edison Research, the average daily time Americans spend with AM and/or FM radio is 2 hours, 7 minutes. For heavy Internet users, it is 2 hours, 14 minutes.

Yet for all of the worry about rapidly changing consumption habits of AM and FM broadcasts, Hispanic broadcast companies and their advertisers should be pleased with the current portrait of how people tune in: Radio and online/digital activities complement each other, with 87% of weekly online radio listeners consuming AM and/or FM radio in the last seven days. Additionally, as reported by Radio-Info.com’s Tom Taylor, 68% of individuals who listen to AM and/or FM broadcasts while at-work do so with “a regular radio” – and not via streamed audio.

Even so, Arbitron/Edison found 18% of respondents listening to AM and FM radio on a computer, and 13% listening to the radio on a mobile device – numbers that will most certainly increase over time.

As Hispanics largely overindex on smartphone use, with Mintel noting in a 2011 report that 1 in 5 Latinos use such devices as their primary internet gateway, Hispanic broadcasters may wish to further embrace the App to grow its listener base while concurrently luring new media dollars.

¡QUE BUENA DINERO! Univision’s regional Mexican WOJO-FM was Chicago’s sixth-biggest station in terms of ad revenue in 2011, billing $21.3 million, according to Miller Kaplan Arase & Co. data reported by TimeOut Chicago radio columnist Robert Feder. CBS Radio’s WBBM-FM (B96), a Top 40 station with a significant Hispanic audience, billed $23.5 million and ranks fourth.


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THE U.S. HISPANIC MARKET: POPULATION SNAPSHOT

Much has been said and blogged about the “New American Mainstream,” a term coined by Miami-based multicultural market intelligence firm Geoscape. Indeed, the “total market” in the U.S. is more inclusive of multicultural groups than ever before and can no longer be considered a “minority.”

According to Geoscape, the non-Hispanic White population will be roughly equal in size to the combined total population of Hispanics, Blacks and Asians in 38 years. In just four years – in 2016 -- Hispanics will comprise 58.4 million of the 326.1 million people who reside in the U.S. This compares with 40 million Blacks (inclusive of African-American, Caribbean and African peoples) and 16.5 Asians (inclusive of Pacific Islanders); 212.3 million Americans will fall into the “other” category, suggesting that a surge in mixed-race populaces is continuing at rapid-fire pace.

Source: Geoscape, American MarketScape Datastream, 2011 series


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In 2000 Latinos surpassed Blacks as the largest multicultural group. The Hispanic population continues to surge – thanks mainly to births, rather than immigration. In 2011 Hispanics comprised 16.4% of the total U.S. population. In less than four years, nearly 18% of the population will be Hispanic – accounting for 58.4 million.

In the last 10 years alone, the U.S. has seen the following changes:

• Nearly 16 million Hispanics have been added to the population • 45% growth in the Hispanic population was seen between 2001-2011 • Hispanic population growth from 2001 to 2011 accounted for 52% of total U.S.

population growth


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Multicultural America, By County - 2016

Non-Hispanic Whites are the minority in an increasing number of counties – 326 in 2011, according to Geoscape.

The top 15 counties in the U.S., by multicultural population, as of 2011 are as follows:

• Los Angeles, CA • Cook, IL • Harris, TX • Orange, CA • Kings, NY • Miami-Dade, FL • Dallas, TX • Queens, NY • Riverside, CA • San Bernardino, CA • Clark, NV • Santa Clara, CA • Broward, FL • Bexar, TX • Philadelphia, PA


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HISPANIC POPULATION GROWTH – 1980

In1980, gateway states bordering Mexico experienced the most population growth. Additionally, Miami-Dade County was transformed by a wave of Cuban immigration resulting from the Mariel boatlift -- a mass emigration of Cubans who arrived in Florida between April 15 and October 31, 1980.

Courtesy of Geoscape


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HISPANIC POPULATION GROWTH – 2016

Today, gateway cities for Latinos are no longer along the Mexican border or within 120 nautical miles of Cuba. Atlanta and metropolitan Chicago are important entry points for Hispanic immigrants, as are agricultural areas in eastern North Carolina, western Iowa and across Nebraska and Kansas. Western Arkansas is now an important Latino center, while metropolitan Washington, DC has experienced sizable growth from not only Mexican immigration but also Caribbean Hispanics of Cuban, Puerto Rican and Dominican heritage.

Courtesy of Geoscape

This differs dramatically from African-American growth trends, as the vast majority of Blacks reside in the South. The highest percentage of Asians reside in California, with other significant pockets in greater Seattle, Chicago, New York, Boston, Dallas, Houston (accounting for Hmong), and Washington, DC.


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HISPANIC VS. NON-HISPANIC WHITE POPULATION GROWTH – 1990-2016

According to Geoscape, Charlotte is the leader in percentage gain for Hispanic population growth between 1990 and 2016. Atlanta and Raleigh are second and third, respectively, followed by the Orlando-Daytona Beach-Melbourne and Minneapolis-St. Paul DMAs. Central Florida has seen rapid growth in Puerto Rican and Mexican emigration, while the Twin Cities has seen the arrival of Mexicans and Central

Americans. Marketers should strongly consider investing in Hispanic media in the emerging markets shown above to maximize their opportunities for Latino consumer growth.

Acculturation is the process whereby immigrants acquire a new culture through language, customs, lifestyle, media usage and other practices while retaining elements of their home culture as well. For Hispanics, Geoscape® calls this characteristic Hispanicity™. At left are the CultureCodes as determined by Geoscape.


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Recent immigrants have increased the proportion of non-acculturated Latinoamericanas, while second and third-generation Hispanics have increased the proportion of Americanizados and Nueva Latinas. Nevertheless, the Hispanic population will increase in all segments.

Source: Geoscape, American MarketScape DataStream, 2011 series.

The Miami-Fort Lauderdale DMA is perhaps the only large metropolitan area in which nearly half of the population (48%) is either Spanish-preferred or Spanish-dominant. In Houston and Los Angeles, biculturals and those who prefer to use English more than Spanish – or exclusively – are the majority of the Hispanic populace.

About 60 percent of Hispanics are Bilingual to some degree and about 40 percent are dependent on either English or Spanish.


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As seen in Geoscape’s American Marketscape DataStream, 2011 Series, Mexicans comprise nearly 69% of the total U.S. Hispanic population.

Of course, marketers active in the U.S. Hispanic market realize that the geographic distribution of certain ethnic groups makes a “national” Latino advertising effort perhaps trickier than one may assume. Florida is home to many Cubans and Puerto Ricans; New York is home to many Dominicans and Puerto Ricans. Yet each state has seen a noticeable increase in its Mexican population, with Puebla natives found in Queens and agricultural regions of the Mid-Hudson Valley. Furthermore, pockets of Central Americans can be found across Miami-Dade County, FL while Peekskill, NY, in Westchester County, is a hub for Ecuadorian immigrants.


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2011: EARNINGS AND EXPENDITURES

The median income of all U.S. Hispanics is greater than that of Blacks but less than Whites and Asians. However, the size of the Hispanic population makes this consumer group enticing and attractive to marketers.

Hispanic spending is significant across a variety of major categories, thanks to their relative youth and larger-than-average household size. Total aggregate Hispanic consumer spending for 2011 is over $593 Billion.

Top categories include insurance companies, automotive and food/beverage.


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Hispanics consume more than the average American household in many categories.

Furthermore, the continued rapid growth in the Hispanic population makes this consumer group simply important to underserve or altogether ignore. This suggest marketers invest consistently—and perhaps at a much deeper level—in Hispanic media than ever before.

The median age of Hispanics is 27.3 years, compared to 41.2 years for non-Hispanic whites. Additionally, life expectancy for U.S. Latinos is 84 years old, compared to 81 for non-Hispanic whites. Thus, in many if not most consumption categories the multicultural consumer is actually worth more, not less, than the non-Hispanic white household.


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THE OPPORTUNITY

Despite the size of the U.S. Hispanic market, advertising dollars devoted to Spanish-language media in 2009 represented less than 5% of the total advertising pie.

Tony Ruiz, director of communications planning for New York-based Hispanic-focused agency The Vidal Partnership, has been particularly vocal about the trickle of ad dollars going to Spanish-language media.

"I think it's disgusting that only 4.5% of media spending is going toward Hispanic consumers," Ruiz said during a panel discussion at the B&C/Multichannel News Hispanic TV Summit, held in September 2011. "I think it's disgusting that we had to make a big deal out of the 2010 Census. Most organizations in the U.S. don't know how to fully value the Hispanic contribution to their business; it's largely perceived as a secondary segment of the population.”

Chris Montenegro McGrath, vice president of sustainability and Latino marketing at Kraft Foods, understands the importance of reaching Latinos. The company’s Hispanic ad budget grew three-fold in 2011; she says the budget is 4.5% above the industry average.

Some industry leaders have challenged Ruiz, saying that Hispanic marketers and ad agencies must continue to pound away at the significance of the Latino consumer. If not, they’ll continue to be overlooked. Thus, opportunity abounds for the company that learns and understands why Hispanic ad expenditure increases are so important for the bottom line: ROI growth.


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U.S. Hispanic population vs. Total population – Top 50 DMAs – 2011, presented by Geoscape

Name Total Population (2011) Hispanic Population (2011)

Los Angeles 17,729,990 8,039,483

New York 20,977,155 4,707,737

Houston 6,417,076 2,272,478 Miami-Ft. Lauderdale 4,356,130 2,153,792 Chicago 9,708,757 2,010,692

Dallas-Ft. Worth 7,208,815 1,937,058 San Francisco-Oakland-San Jose 7,152,857 1,697,582

Phoenix (Prescott) 5,097,438 1,415,719 San Antonio 2,516,842 1,399,364 Harlingen-Weslaco-Brownsville-McAllen 1,298,618 1,175,927

Sacramento-Stockton-Modesto 4,082,972 1,100,323 Fresno-Visalia 1,979,196 1,072,798 San Diego 3,140,677 1,023,578

Denver 4,126,703 864,039 Washington, DC (Hagerstown) 6,502,200 846,445

El Paso (Las Cruces) 1,036,572 820,599 Philadelphia 8,030,208 809,600 Albuquerque-Santa Fe 1,917,235 808,668

Orlando-Daytona Beach-Melbourne 3,728,115 731,540 Tampa-St. Petersburg (Sarasota) 4,385,228 705,639 Atlanta 6,454,764 693,661

Las Vegas 2,038,402 603,176 Austin 1,930,884 596,009

Boston (Manchester) 6,380,432 532,754 Seattle-Tacoma 4,880,463 451,606 Tucson (Sierra Vista) 1,172,515 431,189

Bakersfield 773,844 409,734 Salt Lake City 3,021,907 399,546 Portland, OR 3,192,730 393,815

West Palm Beach-Ft. Pierce 1,935,417 358,220 Corpus Christi 579,221 355,266

Monterey-Salinas 742,647 354,313 Hartford & New Haven 2,667,914 333,040 Raleigh-Durham (Fayetteville) 2,998,162 298,693

Yuma-El Centro 379,893 264,756 Laredo 271,354 259,803 Ft. Myers-Naples 1,193,162 251,367

Charlotte 3,029,279 251,117 Santa Barbara-Santa Maria-San Luis Obispo 700,321 242,988

Palm Springs 432,094 227,643 Yakima-Pasco-Richland-Kennewick 689,247 224,058 Waco-Temple-Bryan 1,016,687 223,455

Minneapolis-St. Paul 4,551,263 222,446 Milwaukee 2,319,488 220,749 Odessa-Midland 424,228 204,981

Colorado Springs-Pueblo 928,778 191,651 Oklahoma City 1,838,391 189,775

Detroit 4,821,460 189,649 Kansas City 2,453,482 187,217 Amarillo 545,386 181,324


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AGENCY

HISPANIC VS. ‘SPANISH’: THE BATTLE EVOLVES

How marketers approach the Hispanic market is an ever-changing endeavor. Twenty years ago, developing Spanish-language creative and investing in a media buy was reason for celebration. Today, multi-pronged, 360-level brand connectivity initiatives incorporate English- and Spanish-language creative, mobile and digital initiatives, and product integration, among other things.

Hispanic Market Overview talked to several advertising industry leaders about how they’re adapting to the evolving marketplace. We open the discussion by asking Isaac Mizrahi, SVP and Managing Director of Miami-based Alma, how advertisers should approach the U.S. Hispanic market today compared to 2005.

HMO: Spanish-language media remains very important for reaching the all Hispanic consumers -- despite all the chatter about English-language preferences rising among large groups of Latinos. Is the growing population of English-preferred and bilingual Latinos a major topic of discussion with your clients?

Isaac Mizrahi: When discussing marketing opportunities with our clients, we suggest an approach that recognizes that “culture is the new language” -- meaning that, first and foremost, brands should understand what makes their messages more relevant to the Hispanic segment based on culture, behaviors and idiosyncrasies.

However, it is important to recognize the important role the Spanish language plays and will still play for years to come. Many studies, like the recently released The State of the Hispanic Consumer: The Hispanic Market Imperative from Nielsen have shown that Spanish not only plays a role as a communication asset to consumers, but most importantly as a cultural anchor, in particular to second and third-generation Hispanics.

HMO: Bilingual. Bicultural. Youth and Young Adult. These are buzzwords among many. So where is the CMO and client going with respect to its Latino campaigns and focus?

IM: In an era where the average CMO tenure is counted in months, not on years, it is imperative that any marketing program be focused on hard data -- not buzzwords. We suggest as a starting point an assessment of a company's source of sales growth. While Hispanics represent 16% of the U.S. population, in some categories they represent a significant share of the sales and, more importantly, an even higher share of the sales growth. That analysis will guide the CMO and his team in determining the right sub-segments to target within the diverse Hispanic market –including language preference, biculturalism and other categories of cultural affinity. As it is clear that the overall economic recovery will happen at a very slow pace, the companies that are leading

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the pack in terms of sales growth are also the ones who are investing in the Hispanic market in a consistent and holistic way.

HMO: You have a great perspective on English vs. Spanish with respect to media, lifestyle and culture. Many Hispanics between 21 and 43 years old are retroacculturating. In Miami WLTV-Channel 23's news is top-ranked, challenging Fox affiliate WSVN-Channel 7. Both attract Hispanics -- but different types of Hispanics. Is this emblematic of what's to come nationally?

IM: I use an analogy that explains how the discussion around language sometimes tends to be a bit superficial. As a fútbol fan, I can go to China by watching a whole

local league game on TV despite the fact that I don't speak the language. At the same time, a National Hockey League game in Spanish won't make me more interested in the sport. The reality is that several second-generation Young Latinos (we call them “Fusionistas” at Alma) are looking for specific content in Spanish. That happens not only because they value Spanish as a cultural

anchor, but also because the content they are looking for reflects who they are -- 100% American and 100% Latino.

HMO: Digital and mobile initiatives are essential for all media growth in the 2010s and beyond as platform-specific communication will soon be phased out, thanks to rapid changes in how consumers digest entertainment. Please explain how agencies are striving to meet client demand in reaching Latinos over smartphones, tablets, and the next great mobile technology.

IM: A couple of years ago we made the strategic decision to incorporate digital into everything we do. We eliminated the digital department, and incorporated digital experts inside all agency functions, like the “trios,” where planning, creative and digital work in an integrated way. Moreover, we guide our creation philosophy under the belief that consumers are not only the end of our client's communication, but rather individual "broadcast towers" that can further enhance our message through their own networks. Once you work based on these pillars you start leveraging the immense digital possibilities as a core part of our ideas and not as extensions of our above the line creative.

HMO: Even with new television networks and great ratings for Hispanic radio, Spanish-language media still struggles to get its share of the advertising pie while digital/mobile dollars are growing rapidly, percentage-wise. What are the challenges with increasing advertiser activity and, ultimately, dollars -- even as Q4 2011 delivered strong results for Hispanic media.

“First and foremost, brands should understand what makes their messages more relevant to the

Hispanic segment based on culture, behaviors and idiosyncrasies.” – Isaac Mizrahi, Alma


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IM: With 18 years of client-side experience and three years at an agency, I can highlight two major challenges. First, in most companies the process to allocate resources still resembles a rear view mirror, looking for the past as a source of guidance on investment, rather than looking at sources of volume growth. Based on my observation, several companies still have this approach of “incrementalism” when it comes to

Hispanic market investment. They’ll say, "If I have the extra dollar I will allocate to Hispanic marketing". How about starting from scratch and allocating resources based on where your volume is coming from?

Second, Spanish-language advertising doesn't mean Hispanic Marketing. Today the marketplace requires more sophisticated knowledge about the Hispanic segment, and when companies reduce their Hispanic marketing programs into a Spanish-language media program or even an advertising program, their success will be limited. This may create a barrier for future investments.

Isaac Mizrahi joined Alma in 2009. His previous experience includes roles as Director, Multicultural Marketing for Sprint Nextel and Marketing Communications Innovation Manager for The Coca-Cola Company North America.

http://www.hispanicad.com


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http://www.goltv.tv


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AGENCY

THE HISPANIC CONSUMER: CONSTANTLY CROSSING CULTURES

Two worlds, one individual.

Today’s Hispanic consumer is highly likely to not only shift between English and Spanish at a moment’s notice, but also between “Hispanic” and “total market” in an instant.

Jorge Plasencia, CEO of Miami-based República, says his total market agency was launched with this concept instilled as a basic tenet.

“We were one of the first agencies to use the term ‘cross-cultural,’ and positioning ourselves as a cross-cultural agency was really the way to go,” he says of República’s 2006 launch. “Here at the agency we are really living in two worlds – with our media, our music, and our language. That’s really where we are going

[as Hispanics], with people having these two seamless identities. That is why reaching them in a culturally relevant way, regardless of whether it is in English or Spanish, is how we operate.”

That being said, Plasencia believes Spanish-language media should represent “a big chunk of the buy.” He says, “You hear a lot about how you can reach the Hispanic consumer today through a general-market buy, but we feel that placement in both English and Spanish media is important.”

“In a market like Los Angeles, to reach that 18-34 vibrant young Latina, you’ve got to advertise on KLVE but you’ve also got to advertise on KIIS-FM.” – Jorge Plasencia, CEO, República

HMO ENTREVISTA Bringing the client key information about the Latino consumer is paramount to keeping them interested in Hispanic marketing and advertising, says Carlos Martinez, President of Conill, a Hispanic-focused agency with offices in Miami’s Brickell District and the South Bay region of greater Los Angeles. Job One for Martinez and his team is to discuss the “total Hispanic” marketplace.

“There are definitely levels of acculturation, and when you look at language, language is a tactic,” he believes. “After the 2010 Census was released, there was talk that second- and third-generation Hispanics may be more comfortable being talked to in English than Spanish. Our clients, and everyone else, are looking at that. If you want to win with any product and service, you really have to look at that Hispanic segment – it is super-important.”

Conill has eyed the bilingual, bicultural Latino consumer for more than six years, stepping out in 2006 with a Toyota commercial in both Spanish and English that aired during that year’s Super Bowl telecast. “That first ad, for the hybrid Toyota Camry, spoke to one key insight we found,” Martinez says. “We found that the vehicle was similar to Hispanics, who go back and forth between two languages. Hence, the commercial showed a father and son, speaking two languages, shown with a Camry that has two power sources.”


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In fact, buying certain English-language media – in particular CHR/Pop radio stations – is very much a Hispanic buy in markets such as Los Angeles and Miami. “KIIS-FM and [WHYI] Y-100? Those stations are Hispanic, because they attract listeners who are Latino, and who live in two worlds. In a market like Los Angeles, to reach that 18-34 vibrant young Latina you’ve got to advertise on [Univision Radio’s Spanish Adult Contemporary KLVE] K-Love but you’ve also got to advertise on KIIS-FM. You have to look at your dollars and spend them in a way where you’re maximizing them and reaching people in both languages. If you are only on one of those stations you are missing the boat, because that person is continuously going back and forth between these stations.

Al Quintana, EVP of Roar Media and publisher of The Digital Raindance, is the father of three teenagers who prefer to use English but love many things about their Hispanic heritage, and aren’t afraid to show it. “It’s as simple as dancing to salsa music when they go to a party,” he told attendees at a March 2012 MIT Enterprise Forum panel discussion held at the University of Miami. “My teens love to play dominos when with friends or family. It is about our culture. At some point, maybe some of those cultural traits will dissipate. But I’m not so sure about that.”

Maribel Ferrer, a Hispanic public relations and communications expert at Fleishman Hilliard, believes it is up to the madre to keep the cultural connection alive with Hispanic kids and teens. “They are the keepers of the culture,” she says. “They are the ones to keep the connection going.”

http://www.jakeadams.net


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AGENCY/ONLINE/PR

SOCIAL MEDIA: THE HISPANIC HOT SPOT

“The Latino consumer is hyperconnected, and the idea of the ‘cafecito break’ became virtual by having a smartphone in our hands.”

That’s the assessment of Xavier Mantilla, director of sales for Cisneros Company-owned mobile advertising network RedMás. Speaking at a MIT Enterprise Forum panel discussion held in March 2012 at the University of Miami, Mantilla noted that 32% of all web-based content is consumed from digital-based technology. As Hispanics overindex in their adoption of smartphone and tablet devices, they possess tremendous influence over where digital media is heading.

Culture plays a large role in this fast-adoption of digital platforms, including socially enabled Apps, says Fleishman Hilliard’s Maribel Ferrer. For marketers that wish to engage with the digitally minded Latino, Ferrer has one simple suggestion: Listen to your customer. Tools such as Radian6 can serve as strong user intelligence tools, providing rich data on how Hispanics are using your digital platforms.

How social media impacts online commerce should also be examined in the Hispanic space, notes Roar Media’s Al Quintana. For instance, any website featuring a product, brand, service or good should be mobile-optimized, given the trend of Hispanics accessing the internet from a smartphone or tablet.

Targeting Latinos through digital platforms should also be based on content, and not so much on language. Mantilla believes many Hispanics have the luxury of picking and choosing a language. With the rise in bilingual, bicultural Hispanics already being seen in the U.S. he firmly believes that “language is not about un solo idioma. It is about how I am speaking to you.” Ferrer agrees. “Culture will be a unifier of Hispanics for years to come.”

Mantilla says marketers should look at two key things when looking at digital media, in particular social networking platforms:

• Ask where and/or how Hispanics are participating in social media • Determine how Hispanics are engaging in social media conversations

Social media is used by many brands to connect to the Latino consumer in a very grass-roots way, chatting with them like a trusted friend over an afternoon coffee. For Quintana, social media platforms are also perfectly designed to convert people to website users, driving traffic to an online destination center that remains highly important despite a heightened focus on Apps.


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República’s Jorge Plasencia, in an interview for the Hispanic Market Overview, added, “We all know that Hispanics overindex with everything online, and the fact that social media is so robust in our community is because it is ‘social’ – a community that wants to stay in touch with family and friends and stay in touch with people right here or with someone in their home country.”

That’s why many República clients are making social media an important part of their Hispanic strategy, coming to the agency with a much more robust team to develop and execute content. At República, social media is an entirely separate group from its public relations division. “All they do all day long is research and coming up with content for social media,” Plasencia says.

HMO FYI – República is set to expand with a Los Angeles-area

office, says CEO Jorge Plasencia. He hopes to

accomplish this goal within the next 12 months.

http://www.ahaa.org


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AGENCY/ONLINE/PR

BRAND LEADERSHIP, ACROSS ALL PLATFORMS

In November 2011, a Houston-based independently owned Hispanic marketing agency took time out to celebrate on Chicago’s Navy Pier. The occasion? The shop, López Negrete Communications, had been selected as the “Best Hispanic Agency Using Social Media to Reach Latinos” by Latinos in Social Media (LATISM) at its annual awards gala.

CEO Alex López Negrete points to the rapid embrace of smartphones and other handheld digital devices for his agency’s integration of social media into its creative services.

"The digital emergence of 13.5 million Latinos on Facebook and 8.1 million on Twitter, along with the emergence of an enormous community of Latino bloggers, has revolutionized the marketing landscape forever. Our clients' brands are competing for the moment and competing for relevance in a time when attention is a precious commodity. Hence, we have made it a strategic imperative to be an innovator in this space and to have the best people in the industry, setting models and standards in the use of social media targeting Latinos.”

The recent addition of Sandra Alfaro as Managing Director of Brand Leadership at López Negrete will likely further bolster the agency’s standing. The move also gives a vote of confidence to the Hispanic advertising industry, as Alfaro joins LNC after a short stint as head of Ramona, a now-shuddered Hispanic boutique with MDC Partners’ Kirshenbaum Bond Senecal + Partners. Before that, Alfaro served as Director of Account Management at New York-based independent agency The Vidal Partnership. Alfaro works alongside Julio Arrieta, who shares her duties.

“We need to be that partner for the client that has the deep, unmatched understanding of the Hispanic consumer audience,” Alfaro says. “Our goal is to be the extension of the client’s marketing team … and we have to earn it.”

Alfaro believes the Hispanic-focused shop is important for CMOs charged with achieving ROI in their Latino marketing efforts. Why?

“It is the passion, and dedication, and level of talent found at the Hispanic agency,” Alfaro says. “When Hispanic is the sole focus, there’s a difference. It matters when you wake up and all you eat and drink is your market. It really speaks to your level of service.”

For digital, Lopez Negrete has drawn kudos for its social media efforts for Verizon (Somos Verizon FiOS on Facebook and @SomosFiOS on Twitter), and its interactive websites created for Verizon (www.EnciendeteFiOS.com), Sonic Drive-Ins


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(espanol.sonicdrivein.com), and Pernod Ricard's Chivas Regal (www.nochesdebrotherhood.com).

“Our knowledge is not read in a textbook or analyzing numbers,” Alfaro says. “It is in us, and we live it everyday. We all represent different acculturation segments, and you see it walking around the office every day. It’s got to come from inside.”

On the subject of English vs. Spanish, Alfaro prefers to take the conversation above language and to make it “about the mindset of the consumer,” thinking carefully about how to engage the consumer within the brand categories and touch points that matter most for them. “For example, one can start the day with Spanish-language radio and work all day speaking English,” she says. “We can engage in brands that are most relevant to our mindset at any given time.”

Traditional advertising is an integral part of López Negrete’s activity. Yet digital “has permeated every single aspect of marketing today,” Alfaro says. “In everything we do we add a component that is digital in nature. It is a booming, robust area for the agency.”

http://www.hpra.camp8.org/


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ONLINE

THE PORTAL: ADAPTING FOR ITS AUDIENCE

Is the online hub – the portal – still relevant, given all of the discussion about Apps, smartphones and tablet use?

Yes, and especially in the Hispanic market.

Staying relevant with an ever-changing audience, by delivering the right mix of content, is one of the reasons why portals such as Terra.com continue to attract online Latinos. Fernando Rodriguez, CEO of Terra USA, notes that in the U.S., 64% of its audience is comprised of second- and third-generation Latinos, with the remainder first-generation Hispanics. “We recognize that our audience is very proud of their culture, and we understand who they are and that they live in two worlds,” he says. “We’re speaking to them in two languages.”

While Terra.com’s calling card is relevant news, sports and entertainment content in Spanish, for U.S. audiences, Rodriguez says the integration of more English-language content is a central part of Terra USA’s growth strategy. “I don’t want to define us as an English-language portal or a Spanish-language portal. We want to cater to all Hispanics. It’s not about Spanish, or English, or Spanglish – it is about understanding the consumer and what is relevant to them.”

How to the deliver the relevant content is a critical part of an evolution at Terra USA. While the portal remains a key audience driver, it has ensured that its content was available through “all venues and through all screens” since 2006. One example of Terra’s expansion to smartphones and tablets is its recently launched live interactive music platform. Built for a bilingual audience, the Toyota-sponsored platform offers live streaming and real-time interaction with a given band. Miami-based pop fusion group Locos Por Juana was the first act to participate; 40% of live streaming of the band’s show was conducted through mobile devices, Rodriguez says.

“This is not the next trend,” he notes. “It is happening right now. For entertainment and for information, mobile is now the primary device, because you always have it with you.”

“For entertainment and for information, mobile is now the primary device, because you always have it with you.” – Fernando Rodriguez, CEO, Terra USA


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http://www.espndeportessales.com/Contact-Us.aspx


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Digital platforms also present a great opportunity for online media to gain additional ad dollars. “Before there was a challenge because the [comScore] numbers were not that significant,” Rodriguez says. “But now all stakeholders in the market need to understand how to leverage these digital platforms. We have reached a point where we have critical mass, and we need to do a better job of monetizing that. The social arena is also huge, and we need to use social networks to promote our content.”

For Terra USA, the goal isn’t to have a lot of Facebook fans. Rather, it is about users of the social networking site to become familiar with Terra, through content promotion. “We see a significant click-through from Facebook and we’re looking for them to connect back to Terra.com. Of course we want to have a conversation with people through these platforms. But we don’t want to have just passive fans. We want to have fans that contribute to the content and add to the experience. If you do not create engagement, and that conversation, you are not reaching your ultimate objective.”

With all the push toward digitally savvy and bilingual, bicultural Hispanics, Terra will remain highly interested in attracting the first-generation Hispanic. “You shouldn’t ignore the first generation,” Rodriguez says. “It will be a mistake to forget about them. Yes, we’re pushing English programming and not just for the sake of it. We’re talking about things that matter to the consumer today. It is about understanding how the consumer wants content that is relevant to them, and how they want it delivered to them.”

RadioLatino What are the songs Hispanic radio listeners are most likely to hear on Spanish-language radio? Here’s a glance at the most-played current singles, year-to-date, as measured by Mediabase 24/7.

REGIONAL MEXICAN: La Arrolladora Banda el Limon “Llamada de mi Ex”

SPANISH CONTEMPORARY: Maná “El Verdadero Amor Perdona”

TROPICAL (SALSA/BACHATA): Prince Royce “Las Cosas Pequeñas”

REGGAETON/LATIN URBAN: Daddy Yankee “Lovumba”

Copyright © 2012 Mediabase. All Rights Reserved.


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MEDIA

CULTURAL FLUENCY: WHAT MATTERS MOST

Cesar Conde, President of Univision Networks, is fully aware of the increased use of English among Hispanics. He’s also among the ranks of industry veterans who believe that Spanish-language media will remain vital to reaching all Latino consumers for years to come.

In an interview with Hispanic Market Overview, Conde discusses how the nation’s leading Spanish-language media company is overcoming any objections from potential clients that believe hitting English-language media is suffice for meeting their Hispanic marketing needs.

CESAR CONDE: The most effective way to reach Hispanics is in culture. More than Spanish fluency, more than English fluency, cultural fluency is what is relevant. Latinos crave aspects of their culture – food, holidays, music, media, and content - that reflect their roots, community, values, and aspirations.

The culturally relevant content that exists in Spanish-language media – and is not readily available in English – satisfies the appetite for Hispanic culture. We also know that 75% of all Hispanics speak Spanish at home and that 42 out of the top 50 shows among Hispanic bilingual audiences are on Univision. Language is a powerful tool to use in the in-culture approach, and while some marketers believe they are effectively reaching Hispanic consumers through English-language media, they are reaching English-dominant Hispanics, who are highly fragmented across English-language media. The top three English-language broadcast shows with Hispanics only deliver 8-10% of Hispanics within their audience, while Hispanics represent 19% of the U.S. population.

HMO: English-language usage will continue to rise, and Hispanic media must recognize this. What efforts are Univision's brands undertaking to welcome Latinos that may only use Spanish with family and close friends, extending its relationship with third- and fourth-generation Latinos?

CC: For Hispanics, Spanish is the language of the heart that maintains a strong connection to the content, their country of origin, culture and community. In fact between 1980 and 2007 the number of Spanish speakers in the U.S. grew by more than 200%. We recognize that the Spanish-language opportunity will continue to grow, which is why we remain committed to serving our audience in Spanish – and are expanding those offerings through the launch of our three new 24-hour Spanish-language cable networks, which are focused on three of Hispanic America’s biggest passion points -- novelas, sports, and news.


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The fact remains that our content speaks to Hispanics. Because of our strong mix of novelas throughout the week and our powerful franchises such as [beauty competition] Nuestra Belleza Latina on Sunday nights, Univision has become a competitive player among the “Big 5 networks.”

HMO: Digital and mobile initiatives are essential for all media growth in the 2010s and beyond as platform-specific communication will soon be phased out thanks to rapid changes in how consumers digest entertainment. How is Univision at the forefront of reaching Latinos over smartphones, tablets, and other digital devices?

CC: We know audiences are becoming more evolved every day, they are no longer a simple extension of television and radio – they’re interactive, they’re on the go, and they are accessing content from different devices. We think it’s instrumental to provide stellar content that features top-of-the-line personalities, artists and storylines, or exclusive elements that give users the chance to truly engage in something they cannot find anywhere else.

Univision is spearheading efforts to make content available to the country’s fastest-growing consumer segment, across all platforms. We offer our audience culturally relevant content, covering an array of passion points – from sports, with live streaming of our soccer matches on UnivisionDeportes.com, to music with our "Univision InStudio” sessions, which recently featured Paulina Rubio,

We also reach Hispanics with social media. Social media has proven to be not just a two-way conversation but has also enhanced the whole TV viewing experience. It has, in a sense, recreated the family and friends viewing experience in an interactive way. Our future will be largely centered on increasing our variety of interactive content and expanding its distribution across different platforms, with an emphasis on community and social media.

HMO: Univision is expanding with new television networks. But is it too late to gain traction in Spanish? Aren't there already "enough" TV networks serving Spanish-preferred Latinos? These are questions asked by some, but with MundoFox launching and your expansion obviously there is a fallacy to these statements. Can more networks bring more viewers and more dollars without diluting an already challenged market?

CC: This is a very exciting time to be in media and in Hispanic media, specifically, as new competitors pursue the opportunity. We see the increased attention to the Hispanic consumer as a positive development. Competition is nothing new to us. Univision is a brand that is focused on innovation and on delivering the best available

In 2011 Univision was the No. 1 network among Adults 18-34

more nights than any network, except for Fox. Univision also beat NBC 195 times among

Adults 18-49.


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content for Hispanic America. Our relationship with Televisa gives us an enormous competitive advantage in the marketplace. Coupled with the strength of our brand, Univision continues to see growth. In fact, there are more than 100 Hispanic-focused broadcast and cable networks in the space and today.

Media dollars have always followed the consumer. Today, Hispanics are at 50.5 million in the U.S. and 54% of population growth in the next five years will be attributable to Hispanics – that’s one in every four babies born in this country. By 2050 one in three Americans will be Hispanic. Numbers are the name of the game in media. Univision is working to help marketers and agencies capitalize on the opportunity to drive sales with Hispanics by simply shifting their media dollars to Univision. We recently launched a marketing campaign with a razor-sharp focus on this message to media decision-makers.

HMO: How is Univision going after the bilingual, bicultural Hispanic audience? Should it? After all, they're likely watching MTV, ABC, Fox, and ESPN in English, so why bother in Spanish, right? Or is that statement patently false?

CC: Univision’s strongest demographic performance is among young Hispanic Adults 18-34 years old. A growing portion of this demographic is bilingual. Yet even as they learn English, the data show that these viewers choose to consume media in Spanish on Univision. Delivering culturally relevant content to bilingual, bicultural Hispanics is the key, and our numbers prove this. Against other networks, Univision’s audience has the youngest media age (36.2) of any broadcast network regardless of language, while ABC (51.6), NBC (51.4), CBS (56.5) and FOX (44.4) continue to draw an older audience base during their broadcast prime.

Cesar Conde oversees the Univision and TeleFutura broadcast television networks and six Univision cable television networks: Galavisión, De Película, De Película Clásico, Bandamax, Ritmoson, Telehit and Clásico TV. He is also responsible for Univision Studios, created in December 2009 to build on the original programming produced by the company. From 2002-2003, he served as a White House Fellow for Secretary of State Colin Powell and prior to joining Univision served as vice president of business development for starMedia.


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MEDIA

CROSS-PLATFORM VALUES

Spanish-dominant and bilingual Hispanics are an integral part of the audience focus for Telemundo, the NBC Universal-owned rival to Univision. Dan Lovinger, EVP/Ad Sales for Telemundo Media, believes the network will continue to target Hispanics who crave Spanish-language programming for years to come. “We believe there is a lot of opportunity to grow in Spanish,” he says.

At the same time, Lovinger has his eyes set on attracting young Hispanics, regardless of what language they prefer to use, to Mun2, NBCU’s Spanish-language cable television network seen by many as the hipper younger cousin to Telemundo. “The median age of the Mun2 audience is 26-29-years old, which well represents the median age of

Hispanic America,” he says.

“If you do your content right, they will come and watch it,” he says. Speaking of Telemundo, Lovinger adds, “Our growth isn’t due to any one program this year. We’re up in every hour in prime-time. We have made improvements to our live specials and award shows [including the recent Premios Billboard] and added non-fiction programming. I think there is some room for reality television, and I don’t think it’s going to replace novelas. But I would not be surprised if I saw more reality programming in the future.”

Digital media, along with social media, are platforms now being packaged by the network to further attract those twentysomethings to Telemundo and Mun2. “Our philosophy is that we want our content to be everywhere,” Lovinger says. This has resulted in a launch of smartphone Apps devoted to novelas and sports.

“We had interest in these Apps from Day One, and now we are gathering the ROI data and putting something together,” Lovinger says. The tools are used to drive engagement in the most efficient ways possible.

“We are using social media for a number of purposes, but first and foremost it is a promotional tool for us,” he continues. “Before the launch of our 10pm telenovela, ‘Relaciones Peligrosas,’ we knew there were ways the young characters could self-promote themselves. So we enabled the cast to be catalysts by taking to social media.”

HMO FYI – Borja Perez has been promoted to to senior vice president of digital and social media at Telemundo. He continues to report to EVP/Digital Media and Emerging Business Peter Blacker. Telemundo in 2011 enjoyed double-digit digital ad revenue growth.


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Still, Telemundo is taking a cautious approach to fawning over Facebook. “If you have 500,000 followers, what do you do with that?” Lovinger asks. “You have to publish on Facebook everyday, and it almost becomes a liability rather than a benefit if you are not actively populating the page with stories.”

At day’s end, Lovinger is most pleased about continued growth in viewership at Telemundo, in particular among adults 18-49. “We’re up no matter how you slice it. We used to have a 25 share total-day and we’re now a 29 share total-day for the broadcast season. Consequently, people reward you for that.”

Going into the 2012-13 Upfronts, Lovinger hopes those people represent potential and returning advertisers.

MEDIA

TR3S: ‘A BRIDGE BETWEEN TWO WORLDS’

“Language does not capture the uniqueness of the Hispanic audience.”

That’s the view of Charlie Singer, SVP of Content and Creative for Tr3s, Viacom’s U.S. Hispanic cable network originally conceived as MTV en Español. While Tr3s has shed the “MTV” brand, it has much of the essence of its English-language sibling. New series include “Quiero My Baby,” a reality series sponsored by Target spotlighting bicultural parents as they tackle parenthood; the Mexican novela “Bienvenida Realidad,” a success on Cadena Tres that deals with the pressures and intolerances of adolescence; and “The Ricardo Laguna Project,” a look inside the amusing life of BMX star Ricardo Laguna as he attempts to break three world records and start his own family business while balancing his close-knit Latino family and life in Las Vegas.

It’s not your parent’s Hispanic television network.

“Our bilingual, bicultural audience comes to Tr3s because our brand attributes speak directly to who they are, and in a very different way than the English- and Spanish- dominant networks,” Singer says. “Tr3s is the bridge between the two worlds, and our original content is our best asset for filling the void among these networks. There are certain aspects of the bilingual audience that are Spanish-dominant and others that are more acculturated and English-dominant. Understanding this is key to creating effective and engaging content for this audience.”

Bilingual in its approach, Singer says Tr3s’ language choices are dependent on multiple variables from show formats and content to genre and the generations of its audience. “Our viewers under 30 years old are more English-dominant in their day-to-day lives but


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more Spanish-dominant at home with their parents and grandparents. It’s important to understand the full spectrum of this audience’s reality.”

In fact, focusing on language is missing the point, Singer says. “Yes, there are limitless choices when it comes to content that engages this audience, but our audience comes to Tr3s because we deliver authenticity vs. language. They’re more likely to watch Tr3s’ ‘Quiero Mi …’ franchise over the stereotypes on [sitcoms like] CBS’ ‘Rob.’”

Many Tr3s viewers are digital and mobile technology innovators. Singer says Tr3s is certainly aware of the robust opportunity to approach this group of consumers on their hand-held device.

“We’re developing more user-generated content across multiple vehicles, including social media and mobile,” Singer says. A new Quiero Mis Quinces App is now available. “We’re also strengthening our strategic partnerships with AOL Latino and Ourstage.com, which reaches a community of 17 million music fans and new artists. We are also exploring new opportunities with key players such as Spotify and ImpreMedia, among others.”

New television networks, from MundoFox to Univision’s niche cable networks, seek to add more viewers and attract more advertisers to Spanish-language television, which already receives the bulk of Hispanic ad dollars. How does Tr3s fit in to this growth, especially as discussion continues about the growth of bilingual, bicultural Latinos that seemingly prefer English-language media?

Singer comments, “The new and existing Spanish-dominant platforms will certainly face some challenges in the coming years, given the idle economy and decline in immigration. The future is the bilingual-bicultural audience, given they’re the fastest growing segment of this population. Tr3s’ research study, 'Death of the Hispanic Adult Demo as We Know It,' reinforces the need for Hispanic marketers and industries to develop strategies that target that bilingual-bicultural viewer, specifically. It will be interesting to see the shift in strategy.”


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http://www.mediaresponse.com/us/contacto.html


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SPORTS

A KEY CONNECTOR TO LATINO CONSUMERS

Brands have ample opportunities to connect with a fervent, passionate group of Hispanic men and women – the sports fan. From soccer to boxing to NFL, NBA, Major League Baseball and mixed martial arts, Latinos love sports.

In fact, the Hispanic thirst for sports programming seemingly can’t be quenched. On April 7, 2012, Univision launched “Univision Deportes,” a 24/7 network devoted to sports available exclusively to Dish Network subscribers. With a fútbol-heavy slate that includes Mexican Premier League and Major League Soccer matches and studio highlight shows featuring Univision talent such as Fernando Fiore, Univision Deportes is complemented by “Univision Deportes Dos” – also launched April 7 exclusively for DishLATINO subscribers. “Dos” will feature 10 exclusive broadcasts of Mexican League soccer matches, through its partnership with Televisa, in addition to encore presentations of Univision Deportes programming.

Univision has set its sights on taking at least a nibble of the audience – and ad dollars – that currently go to such cable television networks as GolTV, Fox Deportes and ESPN Deportes.

Mario Fraticelli, Director of Content for Digital and Manager of Social Media for ESPN Deportes, and Oscar Ramos, Senior Director and General Manager for ESPN Deportes Radio and ESPN Deportes Digital, participated in a round-table discussion with Hispanic Market Overview editor Adam R Jacobson to discuss what’s driving the Hispanic sports fan, and how ESPN Deportes continues to innovate through digital and mobile platforms, in addition to its mix of programming.

HMO: Content delivery is more than just a television network or videos on a website, especially with Hispanic sports fans who more than ever are using mobile devices to stay apprised of the latest news and features. How is ESPN Deportes reaching these fans?

Oscar Ramos: The mantra that ESPN that has always lived by is to serve the sports fan in any way, shape, or form through the most convenient delivery vehicle or screen. That’s not just our mission statement: We live by this on a day-to-day basis.

HMO: We hear more and more about the bilingual, bicultural Hispanic, in particular among younger men. How is ESPN Deportes addressing this growth?

Mario Fraticelli: We are focused on Spanish-language content, but we also know how to speak Spanglish. The median age of the ESPN Deportes consumer is 34. We want to approach a younger group.


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HMO: How is ESPN Deportes accomplishing this?

MF: Through social media. We’re doing this that allow for more flexibility, and allow fans to interact with the content.

ESPN Los Angeles is producing content that is in Spanglish. We just launched a four-part video series where we sat down with colleagues from the English side of ESPN and produced a Spanglish version of the web series Born + Raised. For ESPN Deportes we sent Chuey Martinez, a presenter on Viacom’s Tr3s network and a KIIS-FM/Los Angeles DJ, to Spring Training in Arizona. It’s humorous, and talks about how to get in shape and what the “MLB look” is.

OR: This is all a work in progress for us. We take a step back every single day and analyze how the fan experience was compared to yesterday. As their needs or specific appetite for specific content changes, we need to respond to those changes. That involves both intuition and our own research, interacting with our own fans through social media. We can interact and see instantly how the audience reacts.

HMO: Mario, what are you learning from social media?

MF: We are learning a lot about fan behavior. My priority is to drive traffic to the website. For example, the fan is telling us during the game – a big game like [the April 21, 2012 Barcelona vs. Real Madrid “Súper Clasico” match] – to go to our website with commentary. That’s one-way communication, with no participation. Now, fan behavior is telling us that they go to watch the game on ESPN Deportes but they’re going to be chatting on Twitter. The result: Having a hash tag on Twitter. That’s how we can adapt to what the fan does.

HMO: Is there a plan to monetize social media platforms ESPN Deportes is using?

OR: ESPN Deportes has a “total media” approach – It’s not just social media, it is how social media interacts with our linear terrestrial network, magazines and mobile platform. We don’t necessary have a specific campaign or strategy by platform. We

GOL SCORED IN GOTHAM

ESPN Deportes Radio will debut on AM 1050 in the New York metropolitan area this September, thanks to an arrangement between The Walt Disney Company and Emmis Communications that shifts the English-language “ESPN 1050” to WRKS-FM 98.7. ESPN Deportes Radio recently added a Chicago signal – an FM translator at 97.5 that covers a majority of the market’s Hispanic population.

ESPN Deportes Radio rounds out its reach in the top 10 U.S. Hispanic markets, and currently has 45 affiliates nationwide.


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really try to say to the advertiser that one works with the other, and the idea here is that you buy into that approach, and that you’re going to reach the fan in different ways.

Digital is still a bit challenging, but it is starting to change, in terms of results and being able to deliver results to our advertisers. It is still in the ‘new media’ arena, and a lot of advertisers are still not convinced of its effectiveness. We strive to prove to them that it is successful and effective and when combined with other media can become robust and efficient.

MF: Right now we have a campaign running on TV, and on digital and social media, for Gillette. Every morning I post who delivered the best goal in La Liga over the weekend; this is presented by Gillette. This is part of the whole package.

HMO: What else makes ESPN Deportes different, given the ever-growing competition?

OR: Fans tell us we’re very unique in how we are committed to the sports world. We focus on being able to bring the best research, journalistic approach, commentary and debates to what we offer and really present sports in a very compelling way. Beyond the play-by-play, it is really that game around the game.

Play-by-play is very important, but equally important is the ability to interact with our experts and debating with some of the other experts on our staff. I think there are always challenges, and I think that is what makes us better and what makes us stronger – to not be complacent with what we’ve got and to always take what we want and make it better.

HMO: What’s the biggest change from 2005 that you can share?

OR: The acculturation level of Hispanics. Nobody is surprised that it has happened, but perhaps we’re a little surprised at the speed that acculturation has happened. Our biggest benefit is being able to quickly react to that.

MF: I spent 2000 to 2006 with Univision.com and we were so concerned about the purity of the Spanish content. Now, Spanglish and bilingualism are being used because of the changing nature of the youth market. It simply gives us more flexibility in the production of content and how we approach the fan.

FOX Deportes has partnered with boxing promotional company Golden Boy Promotions that allows the Spanish-language cable television sports network to air a monthly U.S.-based boxing event produced exclusively for the network. Two live boxing events from cities throughout Mexico are included in the agreement, which gives FOX Deportes broadcast rights to classic fights from Golden Boy Promotions’ library.


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http://www.telemundo.com


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SYNDICATED RADIO PROGRAMMING

MUSIC, TALK, AND LOTS OF GOALS

Many radio stations pride themselves on their strong lineup of presenters. Others strut their stuff with their music, or sports programming.

The syndicated radio network is largely responsible for delivery of these shows. In the U.S. Hispanic market, Fútbol de Primera Radio and GLR Networks are among the primary distributors of sports programming, general-interest talk shows and, in the case of GLR, a growing variety of music-oriented programs.

Such offerings are important not only for independently operated Spanish-language radio stations, but also their listeners. Spanish-language radio stations educate, inform, and entertain a large segment of media consumers who prefer to engage in programming that uniquely speaks to them. Even as the percentage of English-preferred Latinos continues to rise, consumption of Spanish-language radio remains strong - and is predicted to stay this way for many years. Stations offering Spanish-language syndicated programming are a vital part of Hispanic radio's long-term growth.

Sports – soccer, in particular – is a primary component of what syndicators offer to Spanish-language AM and FM stations in the U.S. The reason, notes Fútbol de Primera chairman Andres Cantor, is simple. “Hispanics prefer to listen to soccer in its native language, and with the special flavor only the best announcers can give the game. Soccer is about the passion, and Hispanics will always relate to play-by-play in their language, with the broadcasters that can reciprocate the feelings of the listeners.”

Fútbol de Primera has been FIFA’s U.S. broadcast partner for World Cup radio coverage since 2002, and has agreements in place through the 2022 games. It also offers shoulder programming including the Cantor-hosted Fútbol de Primera Show, which airs daily and covers the world of soccer. FDP Radio isn’t just about fútbol – the network also offers daily vignettes and our lifestyle program "Casos y Cosas de Collins," hosted by Maria Antonieta Collins.

GLR Networks is also widely known for its sports programming, with a growing list of affiliates for its play-by-play of Mexican Premier League squad Chivas de Guadalajara and 11 other Fútbol Liga Mexicana teams. There’s also a weekday sports update of 2 ½ minutes in length offered five times each day, and a 60-second sports update delivered six times each weekday to meet the demand of the Hispanic sports fan.

But GLR’s growth is also coming from non-sports programming. In 2011 En Voz Alta con Maria Celeste was added to the lineup, and the 2 ½ minute vignette airs up to three times daily on roughly 50 affiliates. Luis Gutierrez, VP and Director of National Advertising


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Sales at GLR, notes Celeste is scoring in the ratings among women 25-54. Advertisers on board for En Voz Alta include JCPenney, Clorox, Macy’s, Allstate, State Farm, Walgreen’s, and Sears. GLR’s talk programming also includes Salud y Familia with Dr. Elmer Huerta, the first-ever Latino to serve as president of the American Cancer Society. Huerta is available as a vignette delivered in similar fashion to En Voz Alta, or as a daily hour-long show airing at 10am PT/1pm ET. Top-of-the-hour news is also a major part of GLR’s programming. The network’s “Minuto 60” five-minute newscast is anchored by veteran Hispanic journalist Pedro Sevcec.

In Spain and in many parts of Latin America, the “40 Principales” brand is synonymous with Top 40 radio. In the U.S., the brand is used as the name of a two-hour countdown of the week’s biggest songs, delivered weekends to affiliates.

Now, GLR is offering four additional music shows to affiliates:

• Tropical Latino, featuring salsa, merengue and bachata music from music charts across Latin America

• El Elevador, a top 10 regional Mexican hits countdown

• El Callejón, a two-hour music and lifestyle show focused on reggaetón and the Latin Urban movement

• World Dance Music, featuring news and mixes from renowed DJ Luis López.

HMO ENTREVISTA Spanish-language media remains vitally important for reaching all Hispanic consumers, despite the rise in bilingual and English-preferred Latinos. Mark López, head of U.S. Hispanic audience at Google, shares how the digital media giant is approaching the U.S. Hispanic market and targeting the Latino online consumer.

The U.S. Hispanic market is a powerful one, and Google helps advertisers reach this incredibly savvy group of consumers, whether via Spanish-language or English-language campaigns. We believe bicultural and bilingual content is key to engaging the U.S. Hispanic market, and we help our advertisers reach this powerful audience by offering display, video, and mobile ad-serving platforms to help them connect with users at their moment of relevance.

Our approach to adjusting to the unique needs and behaviors related to this market is to invest the time in understanding it. For instance, our research has shown us that U.S. Hispanics are more likely to watch full-length movies and TV shows, share videos and engage with longer-format content than Whites, Blacks, or Asians; they are 58% more likely to click on search ads and are 22% more likely to make purchases in-store as a result of online ads viewed while researching a potential purchase than the general US population.

(Continued on page 53)


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http://www.almaad.com


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TECHNOLOGY

CONTEXTUAL POWER

Juan Chacín believes in the power of contextual advertising. That’s why he’s convinced HOTWords, already the No. 2 online advertising network in Latin America, is poised for success in the U.S. Hispanic market.

A brand administered by Media Response Group, Chacín recently demonstrated to Hispanic Market Overview just how HOTWords works.

We navigated to an article about Pepsi appearing on the website for Grupo Multimedios’ Milenio, a major national daily newspaper in Mexico. Two words appeared highlighted and underlined in green: grandes and Pepsi. A mouse-over the first word delivered a pop-up advertisement for Pepsi Light (a.k.a. Diet Pepsi outside of North America), which faded away after a few seconds. A mouse-over to the second word delivered something even grander – a 30-second television commercial for Pepsi Kick, marketed in Mexico as a ginseng-enhanced version of the cola.

The examples answered the basic question of what contextual advertising actually is: A form of targeted advertising in which the content of an ad is in direct correlation to the content of the web page the user is viewing.

How does it work? Chacín’s HOTWords team adds a code that allows its system to search text on a webpage for relevant words and phrases. Those words and phrases are then matched against HOTWords’ database of suitable advertisers and/or relevant content on its network of websites.

Current publishers include Puerto Rico’s top daily newspaper, El Nuevo Día; Telemundo; and the Yahoo! Publisher Network. Clients range from major motion picture companies to the world’s biggest CPG companies.

“There is a lot of audience in the U.S. to websites we are already working with,” Chacín says. “But advertisers aren’t approaching this audience.” Now, McDonald’s and Toyota are actively using HOTWords, targeting U.S. Hispanics.


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ComScore data for March 2012 shows HOTWords networks with 87.5 million total unique visitors in Latin America, with 66.6% reach. While Google is bigger, Chacín believes his company’s offering is the best alternative, with far greater reach than Batanga Network in the region.

“We are bringing relevant information through a campaign that is presented in a healthy environment,” says Chacín.

Now, Spanish-language portals viewed by internet users in the U.S. can use geotargeted campaigns the HOTWords team can develop, bringing hyperlocal, regional or national solutions to a client.

For the client, the technology comes at a cost-per-click price; if you click on the ad, you’ll be charged, Chacín explains. “This bring ROI, and measurable results,” he says.

To avoid a bombardment of highlighted words delivering sponsored content, HOTWords employs a four word per article maximum; it guarantees a click-through rate of 3%-6%.

“A Nielsen study recently noted that 70% of internet users found contextual advertising non-intrusive,” Chacín says. “They believe the information is totally relevant to what they were reading.”

HMO ENTREVISTA Mark Lopez, Google

Advertising to Hispanics is about way more than a language shift -- it's about understanding the online habits of this audience and conveying culturally relevant messages. We use the power of data to help our advertisers identify consumer trends and deliver well-targeted messages to the right person at the right time.

HMO: Digital and mobile initiatives are essential for all media growth in the 2010s and beyond as platform-specific communication will soon be phased out thanks to rapid changes in how consumers digest entertainment. How is Google at the forefront of reaching Latinos over digital devices?

All of these "new-new" ways of reaching consumers are paramount; the U.S. Hispanic population is more mobile than the general population, they're earlier adopters and they tend to use more devices -- like smartphones and gaming devices -- than the total population. They're also 32% more likely to have a smartphone, and use it as often as a PC to access the internet. More than 40% of Hispanics use their smartphones to compare prices and locate retailers, and Hispanics are more likely than the general population to share videos and engage with longer format content.

In short, US Hispanics are digitally savvy. Our mobile platform, AdMob, has tremendously broad reach among Latinos. TrueView is a great example of how we are redefining how advertisers can buy video and only pay for completed views, vs. CPM. We work with advertisers on solutions that incorporate search, display, and video to meet their marketing objectives. We are very focused on ensuring that advertising engagement does not impact a great consumer experience.


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HMO MARKET PROFILE: CHICAGO

AMERICA’S SEGUNDA CIUDAD

Chicago has long had the nickname “The Second City.”

Little did anyone know it would in the year 2012 refer to its status as a forthcoming hub of Latino cultural influence.

Marco López, EVP/Client Services at Chicago-based experiential marketing agency Elemento L2, is one of the few that’s been long aware of the Windy City’s Hispanic hum. Now bubbling out of such neighborhoods as Cicero and Berwin, Latinos are no longer centralized in places such as Pilsen.

“The natural perception of Chicago is that it is fifth or sixth in population,” López says of the number of Latinos in the metropolitan area. “We’re two-million-plus strong now, and the complexion of the Latino population in Chicago matches that of the U.S.”

Indeed, 16% of Chicago’s population is Hispanic, and the majority of Hispanics are of Mexican origin. That’s why focus groups and consumer research on Latinos is more common in Chicagoland than ever before. But Hispanic media dollars still lag, despite Univision Radio’s WOJO-FM billing $21.3 million in 2011, placing sixth among all AM and FM stations in Chicago regardless of language, according to Miller Kaplan Arase & Co.

“Houston was historically a lot stronger in obtaining Hispanic media dollars than Chicago, even though we had more Hispanics here,” says López, who earlier in his career worked at Univision’s Chicago operation. “Charlotte. Seattle. Those are emerging markets. Is Chicago an emerging market? Not at all.”

But Chicago’s Latino community has changed greatly since the 1950s, when Puerto Ricans were the predominant Hispanics in the region. “Chicago has a great balance of new immigration and continued growth of the New Generation Latino who has Hispanic roots, and Hispanicity in their blood,” López says. “Chicago is not like Los Angeles, or Phoenix, or Texas, where there are long-standing generations of Latinos that

BELOW THE LINE

At Elemento L2, EVP/Client Services Marco López works with such clients as Coca-Cola and 100 Años tequila on “below the line” efforts from offices in The Loop. This includes public relations, social media, shopper marketing and retail strategy. The agency opened its doors in September 2011.

“We look at who the attendees are to community events, we think about how we’re going to talk to them, and then we gain insights,” López says. “From that we get creative ideas and bring it to an experiential level.”


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were there before the U.S. was the U.S. South Americans have settled on the North Side of Chicago in the last 10-15 years, with Colombians growing in number.”

Chicago also benefits from boasting a higher educational attainment level of its Hispanics than other major metropolitan areas, mainly due to recent immigration from other nations. But Chicago’s Latinos are best-represented by blue-collar workers, López notes.

They’re also represented in the area’s schools. Take, for instance, Unity Junior High School, located at 54th and Cermak – one of the most densely populated Hispanic neighborhoods in the Midwest. “The school has one of the largest populations of Mexican-Americans,” López says.

Is there a marketing opportunity? Yes. But there’s also a “cultural responsibility,” López says, in getting students at Unity and other schools in Northern Illinois trained for higher education, and future employment. Chicago’s major corporations, which include McDonald’s, Sears, Allstate, Walgreen’s, Jim Beam, Abbott Laboratories, Motorola, and U.S. Cellular, have also been leaders at various levels with marketing to Latinos. Being in a vibrant Hispanic metropolis with further aid them and, perhaps, lead competitors to augment their Latino marketing efforts.

Meanwhile, cultural trends are already emerging from La Segunda Ciudad. Duranguense music, styled by natives of the Mexican state of Durango, is truly the regional Mexican sound of Chicago, with the biggest acts in the genre calling the city home.

From Humboldt Park to Logan Square and even suburban Joliet, Chicago’s Latino

vibrancy is rising. While national advertisers may not realize this, the students at Unity certainly do. “We visited the school and did an in-school presentation with Mexican sports figures and other notables,” López says. “When we showed ‘El Chavo del 8’ even the black kids laughed and cheered. They recognized Chespirito.”

Prince Gets the Royal Treatment in the Loop

Top Stop Music urban bachata superstar Prince Royce attracted nearly 1,000 attendees hours before a 6pm autograph signing of his newest album at the FYE store across from Macy's in downtown Chicago on April 11, 2012. Fans who purchased the artist’s latest CD earned the meet-and-greet opportunity, and a personalized signing of the album by Royce. The promotion was put on by Univision Radio/Chicago's Spanish Pop Contemporary Maxima 93.5/103.1 and promoted across Univision/Chicago's multimedia properties.

Photo: Adam R Jacobson


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http://www.hispanicad.com


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NEWSPAPERS

DIGITAL DIVERSIFICATION

“It’s an interesting time to be in the Hispanic news industry.”

So says John Trainor, publisher of Tribune Co.-owned Hoy.

For starters, Hoy may be viewed by many in the industry as a daily Spanish-language newspaper distributed free of charge to Hispanics across metropolitan Chicago.

But Trainor and his big boss – Tribune CEO Tony Hunter – don’t consider Hoy a newspaper, nor do they consider Tribune a newspaper company. “We are a media organization that just happens to publish a newspaper,” Trainor says.

Convincing everyone of this shift in the company’s mentality hasn’t been easy. Just ask the national advertisers that aren’t patronizing Hoy.

“There is this stigma about newspapers dying, yet our circulation and pickup rates for Hoy are climbing, and our readership is growing,” Trainor says. “It’s a tough place to be. We haven’t seen any decline.”

In fact, Trainor says Hoy has nearly tripled its cash flow since his 2008 arrival. The growth, however, is primarily from local advertisers and the rapid expansion of Tribune’s home-delivered Fin de Semana end-of-week newspaper. At present, the weekend publication has a print run of roughly 335,000.

Yet Trainor is well aware of print’s limited lifespan. That’s why he’s assisted in a major overhaul of Vivelohoy.com, initially launched at the fall 2008 Association of Hispanic Advertising Agencies conference as a video-rich portal. In 2011, Vivelohoy.com shifted to the WordPress platform, leading to substantial growth. “We started with 60,000 unique visitors per month and we ended the year with 600,000 uniques per month,” Trainor says.

How did they accomplish this? The shift in platforms was only half of the story. “We changed the flow from print to the website by inverting it,” he explains. “The thinking was ‘digital first,’ and how consumption patterns worked. So, we shifted our content strategy.”

This content shift also led Vivelohoy.com to engage in “crowd sourcing” – a.k.a. user-generated news and information. Journalists fear not: Your job isn’t being replaced by José Fulano de Tal. Rather, it gives the website a greater way to gain unique viewers.

“Print pays our bills and is a way to subsidize the digital platform for the

future. If we don’t do it right, we might be out of business.” – John Trainor,

Hoy


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“In the past editors would aggregate stories and gather information throughout the day, and then their work was done,” Trainor says. “Now with websites so many news sources are competing against one another. Yes, the reader becomes the content partner, but when you search a story on Google and it’s from Reuters how many websites pop up with the same story?”

Next up for Vivelohoy.com – mobile optimization. A late May 2012 launch is set, with beta testing already in place. “With the growth of mobile and tablets we had to have a site that is responsive to an iPad or a smartphone,” he says. “I am realistic that at some point print will decline.”

Thus, Tribune and other industry leaders are adamant on diversification of the revenue stream. “Monetizing events is a big part of the shift newspaper companies are taking, with [Belo-owned] Al Día in Dallas a leader in that,” Trainor says. “Print pays our bills and is a way to subsidize the digital platform for the future. If we don’t do it right, we might be out of business.”

Other ways Trainor would love to monetize Vivelohoy.com include capitalizing on its traffic from Mexico City, the No. 2 location for visitors after Chicago. In fact, half of the site’s visitors are from outside of the U.S. Editors are also incorporating more English-language content onto Vivelohoy.com, in recognition of the likelihood that website visitors are bilingual.

In March 2012 impreMedia attracted attention by announcing that Argentina’s La Nación reached an agreement with the privately held Hispanic news company to become its strategic and controlling shareholder. It remains to be seen what impreMedia’s plans are for its impre.com portal and its individual titles, which include El Diario-La Prensa in New York and the nation’s biggest paid-circulation Spanish-language daily, La Opinión in Los Angeles.

Trainor hopes for the best for his industry. But he’s not exactly optimistic. “I don’t see a nice picture for independent Hispanic publishing companies because they’ll have increased competition from large companies applying their muscle and going after niche growth due to general-market declines. And, they’ll have to deal with the national advertisers who are, sadly, convinced the Hispanic newspaper industry is dying.”


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MAGAZINES

HISPANIC GLOSSY OVERVIEW: WHO’S SPENDING WHERE Source: HispanicMagazineMonitor™, a service of Media Economics Group, (c) 2012

Top 20 Advertisers in Hispanic Magazines (By estimated Advertising Spending) January - December, 2011

Rank Advertiser Total Ad Pages Total Dollars

1 Procter & Gamble Company 1,106.30 $44,026,350

2 L'Oreal USA, Inc. 397.76 $20,482,339

3 Mars, Incorporated 154.99 $4,836,064

4 General Motors Corporation 129.00 $4,041,224

5 Estee Lauder Companies Inc. 62.00 $3,608,611

6 Pfizer, Inc. 58.00 $3,539,572

7 Kellogg Company 58.27 $3,427,706

8 Ford Motor Company 93.00 $3,406,287

9 Kraft Foods, Inc. 61.50 $3,102,744

10 Johnson & Johnson 46.08 $2,862,399

11 National Milk Processor Board 55.00 $2,611,523

12 America Sunshine LLC 111.00 $2,334,500

13 Chrysler, LLC. 76.00 $2,298,915

14 JC Penney 32.00 $2,218,816

15 Church & Dwight Co. 29.59 $2,104,166

16 Target Corporation 32.00 $2,064,241

17 Mattel, Inc. 60.00 $2,041,200

18 McDonald's Corporation 47.00 $2,031,143

19 Kimberly-Clark Corporation 41.82 $1,787,935

20 Walt Disney Company (The) 23.33 $1,651,010

Totals: (top 25) 2,853.44 $122,040,100

Totals: (all advertisers) 6,169.23 $215,494,894

Source: HispanicMagazineMonitor™, a service of Media Economics Group, (c) 2012


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TOP HISPANIC MAGAZINES (By estimated Advertising Revenue) January - December, 2011

Rank Magazine Total Ad Pages Total Dollars

1 People en Espanol 967.73 $69,351,308

2 Latina 680.25 $32,588,026

3 Ser Padres 228.88 $18,927,096

4 Siempre Mujer 307.76 $18,054,320

5 TV y Novelas 558.97 $17,615,785

6 Vanidades 526.31 $16,317,750

7 TV Notas 815.10 $7,132,487

8 Ser Padres Espera 142.82 $4,916,420

9 Cosmopolitan en Espanol 401.60 $4,616,425

10 Hispanic Business 197.32 $4,127,006

11 Poder Hispanic 131.65 $4,034,127

12 Vista 82.63 $3,490,130

13 Constru-Guía al Día (Home Depot Version) 95.00 $2,748,625

14 ESPN Deportes La Revista 191.62 $2,198,140

15 Selecta 332.08 $1,694,528

16 Latina Style 118.00 $1,642,510

17 Latino Leaders 112.50 $1,444,522

18 Alma Magazine 84.00 $1,172,000

19 New Parent en Espanol 22.65 $1,038,901

20 Ser Padres Bebe 12.65 $823,510

Totals (all magazines): 6,169.23 $215,494,894

Source: HispanicMagazineMonitor™, a service of Media Economics Group, (c) 2012


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ABOUT THE AUTHOR

ADAM R JACOBSON is a veteran journalist and multicultural marketing strategist. He is the principal editor of the Hispanic Market Overview series of reports, distributed exclusively through HispanicAd.com. As a consultant, Jacobson has served as the

principal analyst for Arbitron’s Hispanic Radio Today and as a corporate strategist for Adelante Media Group. He also assisted in the launch of LatinBusinessToday.com and covered the Latin American airline industry for Latin Trade magazine. Prior to the 2010 launch of his consultancy, Jacobson served as a senior editor at Hispanic Market Weekly, launching its CMO Essentials and HispanicSportsBusiness platforms. Jacobson has also penned articles for The Miami Herald, and served as part of the launch staff for

Latina Style Magazine. Jacobson’s career also includes a 10 ½-year stint covering the radio and music industries for former industry trade publication Radio & Records. In April 2012 Jacobson was appointed Multicultural Analyst for Mintel, reporting to Senior Multicultural Analyst Leylha Ahuile. With this appointment, Jacobson has suspended all activities associated with The Adam R Jacobson Editorial Services and Research Consultancy.

HISPANIC MARKET OVERVIEW reports are produced by The Adam R Jacobson Editorial Services and Research Consultancy and distributed through a strategic partnership with HispanicAd.com.

Advertising Sales Representative: Manny Ballestero -- 973-540-8859 (office); 973-214-1972 (cell) [email protected]

© 2012 Adam R Jacobson. Use of this report is prohibited without the expressed written consent of the content creator. Unauthorized distribution and online hosting of this report is subject to criminal prosecution under intellectual property laws administered by the state of Florida and as applicable under Federal legislative action.

http://www.jakeadams.net


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ADVERTISER INDEX

López Negrete Communications 9

GLR Networks 22

GOL TV 28

ESPN Deportes 36

HOTwords 44

Telemundo 48

Alma 51


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