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Shows Hispanic newspaper trends, how they reach deep into the Hispanic community, and the role they play in the Hispanic community
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Newspapers reach extends deeply into the Hispanic market
Newspapers are uniquely positioned to grow your share
in the Hispanic market
A copy of this presentation can be found at:
www.nahpprocurement.org
National Association of Hispanic Publications — Overview
• NAHP is a nonprofit trade advocacy organization– Founded in 1982– Represents Hispanic publications serving 41 markets with a
combined circulation of over 14 million
• NAHP member publications reach over 50% of the Hispanic households in the United States
• NAHP furthers the excellence, recognition and usage of Hispanic publications by providing them access to professional development opportunities to better serve and empower our Hispanic communities
• Alloy Access is the official rep firm of the NAHP
IMPORTANCE OF HISPANICS
Hispanics – Fastest growing consumer segment
• 49+ million estimated Hispanic population today– 1 in 6 will be Hispanic in 2010 census– 1 in 5 will be Hispanic by 2020 census
• Hispanic annual income exceeds $700 billion in 2008
• Top 20 markets represent 73% of Hispanic total income
• The Hispanic market is varied– New immigrants and US residents across multiple generations– Broad range of language usage from Spanish only to
predominately English with majority of Hispanics having some fluency with both languages
– Varied Hispanic culture from 22 different countries with different customs, behaviors, and attitudes
Marketers still under invest in the Hispanic market even though they say it’s important
• Only 4% of total marketing spending targets Hispanics
• This underestimates the economic power of the Hispanic market by a factor of 2X to 3X
• Near term marketing opportunity is to build share by spending at a level closer to segment’s economic value
• Use of general market media narrows spending gap but doesn’t eliminate it
CHANGING MEDIA LANDSCAPE
Hispanics increasingly embrace the Internet as they acculturate
Bicultural – 26%•Speaks both languages at home
•Most media consumption in English
•Foreign-born and US-born•Mean age 34•Lived in US 22 year average
Source: AOL Hispanc CyberStudy ‘10 Conducted By Cheskin Research, Chart by: Nile Wendorf, EXTRA Bilingual Newspaper, Chicago, IL
US Dominant – 39%%•Speak English at home•Most media consumption in English
•US-born•Mean age 37•Lived in US 36 year average
Hispanic Dominant – 35%•Mainly speaks Spanish at home
•Most media consumption in Spanish
•Foreign-born•Mean age 40•Lived in US 7 year average
Print usage approximates Internet usage across all acculturation levels
Source: Synovate 2008 Diversity StudyChart by: Nile Wendorf, EXTRA Bilingual Newspaper, Chicago,
IL
Hispanics are more influenced by the media than the general market
• Hispanics consistently rely on the media to sort out purchase decisions
• Newspapers significantly out perform radio as a purchase influencer
• Newspapers are preferred outlet for shaping Hispanic opinions– PR Releases– New Products– Corporate
Responsibility
Importance of Media on Purchase DecisionsGeneral Market vs Hispanic
Word of Mouth
Internet TV News-papers
Maga-zines
Radio Satellite Radio
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Mean
Im
port
ance
Rat
ings
General Market Hispanic
Data Source: Center for Hispanic Marketing Communication, Florida State Univ.Chart by: Nile Wendorf, Extra Bilingual Newspaper, Chicago, IL
The Internet increasingly moving towards multi-faceted entertainment content
Hispanic print opportunity is to change their content delivery consistent with changes in how their readers want to access news, information, and other content about their communities
Source: Wired, August, 2010
CURRENT STATE OF HISPANIC NEWSPAPERS AND WHY
Hispanic newspaper segment remains stable with minimal impact from the recent economic downturn
• In aggregate, the number Hispanic newspapers has not materially changed over the last 3 years
• Weekly publications remain the backbone of the industry
• Dailies are an important factors in the larger markets
• Hispanic newspaper content is generally available no where else which builds reader loyalty and commitment
Sources: Hispanic Newspaper Count: Latino Print NetworkChart & Analysis by: Nile Wendorf, Extra Bilingual Newspaper, Chicago, IL
1990 1995 2000 2005 2006 2007 2008 20090
100
200
300
400
500
600
700
800
900
Num
ber
of N
ewsp
aper
s
189
152
14
195
194
17
251
265
34
343
350
42
346
384
38
377
417
33
381
424
29
382
428
25
Less than Weekly Weekly Daily
Number of Hispanic publicationby frequency of publication
Hispanic circulation remains flat versus a 17% decline for daily Anglo newspapers over last 5 years
• Hispanic newspaper circulation remains stable over the last 4 years
• Expectation is for a return towards circulation growth as the economy improves
• Basis for circulation stability is the focused Hispanic content targeting local communities
62.358.2 55.8 53.3 52.3 51.1 48.6
44.4
4.2
9.8
14.817.6 17.8 18.4 17.9 17.3
1990 1995 2000 2005 2006 2007 2008 2009-0
10
20
40
50
60
70
Circu
latio
n (M
illio
ns)
Daily Newspaper Circulation
Hispanic Newspaper Circulation
Sources: Daily Paid Newspaper Circulation: Newspaper Association of America,Deutche Bank
Hispanic Newspaper Circulation: Latino Print NetworkChart by: Nile Wendorf, Extra Bilingual Newspaper, Chicago, IL
Circulation trendsAnglo daily versus Hispanic newspapers
Hispanic readers are younger than readers of Anglo daily newspapers
• 57% of the Hispanic newspaper readers are between the ages of 18 and 34 as compared to 19% of the Anglo daily newspaper readers
• 84% of Hispanic newspaper readers are below the age of 55 as compared to 57% of Anglo daily newspaper readers
Age of ReadersHispanic Newspapers vs. Anglo Daily Newspapers
Sources: Hispanic Readership Study 03/09 Alloy-AccessNAA Readership Composite Profile 2006
Chart by: Nile Wendorf, Extra Bilingual Newspaper, Chicago, IL
Anglo Daily Newspapers
Hispanic Newspapers
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
19% 38% 27% 16%
9% 10% 38% 43%
18 - 24 25 - 34 35 - 54 55+
Hispanics are highly engaged with their newspapers
Source: 2008 National Hispanic Readership Study, Alloy Access, New York, NYGraphic by: Nile Wendorf, Extra Bilingual Community Newspaper, Chicago, IL
• Hispanic newspapers enjoy an 86% readership as compared to 48% readership of Anglo daily newspapers
• Hispanics are also regular readers and spend a significant amount of time with their Hispanic newspaper of choice
Source: NAA, Scarborough Research, Top 50 markets, 2007
Hispanic newspaper’s readership strengthrooted in its unique role as a community conduit
• Focus on the news, the needs, and the aspirations of the Hispanic community
• Acts as the primary funnel to engage the community
• Advertiser’s benefit from deep reader involvement to build grass root support for their products and services
“Minority newspapers are an inseparable part of the local community. They deliver what no mass medium can: news that is specifically geared to the needs and concerns of individual minority communities.” — IPSOS Hispanic Presentation, May 2007
THE HIDDEN REACH OF HISPANIC NEWSPAPERS
Hispanic newspapers can out reach radio in many markets at a competitive cost
Hispanic newspapers target their distribution to where Hispanics live
• Hispanics tend to cluster into relatively well defined communities– Pattern true for newer and well-established markets– Hispanic newspapers leverage this pattern by aligning their
distribution into those same areas
• Hispanic newspaper’s competitive advantage is its ability to – Target content to local neighborhoods– Efficiently target advertising to those areas where Hispanics
predominately live– Leverage business relationships since many Hispanic
newspapers are locally owned by people that live in these communities
• Advertisers benefit from a deep reach at a competitive CPM that builds the economic strength of Hispanic neighborhoods
80% of Hispanics live within 20% to 30% of the ZIP codes within a DMA
• Basic pattern is true across broad range of markets
• Even in markets with large Hispanic populations, this pattern of geographic concentration exists
• Hispanic newspapers target their content and advertising to those areas that connect Hispanics to their communities
Specific examples of Hispanic newspaper’s reach and cost advantage
• High Hispanic Population: Los Angeles (45% Hispanic, 80% of Hispanics live in 45% of all ZIP codes)– Buying 16 newspapers reach 61.5% of the population at a
weekly cost of $78,730 versus buying 4 radio stations reaching 60.9% of the population at a weekly cost of $68,074.
• Mid Hispanic Population: Dallas (26% Hispanic, 80% of Hispanics live in 28% of the of all ZIP codes)– Buying 8 newspapers reach 74.8% of Hispanics at a weekly
cost of $34,261 versus buying 4 radio stations reaching 51.7% of all Hispanics at a weekly cost of $24,325
• Low Hispanic Population: Washington DC (11% Hispanic, 80% of Hispanics live in 21% of all ZIP codes– Buying 4 newspapers reach 67% of Hispanics at a weekly cost
of $13,153 versus buying 4 radio stations reaching 39% of all Hispanics at a weekly cost of $22,105
Los Angeles Newspapers Radio TV
# of Papers/Stations 16 4 2Net Cost $78,730 $68,074 $97,285Gross Rating Points 199.8 200.6Reach 61.5% 60.9% 65.9%Frequency 1.0 3.7 3.1
Los AngelesKey Facts
Hispanic DMA Rank 1
Hispanic 18 – 54 Pop 3,196,000
Hispanic % of Total 45%
80% live in % of ZIPs 45%
Los Angeles Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
DallasKey Facts
Houston DMA Rank 6
Hispanic 18 – 54 Pop 777,000
Hispanic % of Total 26%
80% live in % of ZIPs 28%
Dallas Newspapers Radio TV
# of Papers/Stations 8 4 1Net Cost $34,261 $24,325 $60,970Gross Rating Points 200.1 200.2Reach 74.6% 51.7% 46.1%Frequency 1.0 3.9 4.3
Dallas Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
Washington DCKey Facts
Hispanic DMA Rank 17
Hispanic 18– 54 Pop 305,000
Hispanic % of Total 11%
80% live in % of ZIPs 21%
Washington DC Newspapers Radio TV
# of Papers/Stations 4 4 2Net Cost $13,153 $22,105 $33,416Gross Rating Points 200.6 200.4Reach 67.0% 39.2% 9.9%Frequency 1.0 5.1 3.4
Washington DC Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
Newspaper’s has strong reach in all markets and compares favorably to other media
Key Point Summary
• Hispanic newspapers are very different from their general market counterparts– Strong circulation trends– Young engaged reader
• A unique relationship with their readers drives the strength of Hispanic newspapers– Exclusive local content– Bond of trust around news, shopping, and information
• Hispanic newspapers reach deep into the market – ZIP code distribution places Hispanic newspapers where they
do the most good– Superior reach to radio with a visual platform– Very competitive CPM– Lower absolute cost than local radio and TV
Contributors
Nile WendorfAssociate [email protected]
Greg AnthonySenior Vice President,
m
Data Sources
Latino Print Networkwww.latinoprintnetwork.c
om
Readership Institutewww.readership.org
Synovatewww.synovate.co
m
Information Resources, Incwww.infores.com
Center for Hispanic Marketing Communicationhttp://hmc.comm.fsu.edu/
Editor and Publisherwww.editorandpublisher.c
om
A copy of this presentation can be found at:
www.nahpprocurement.org
APPENDIX – ADDITIONAL MARKET SPECIFICS
MiamiKey Facts
Hispanic DMA Rank 4
Hispanic 18 – 54 Pop 840,000
Hispanic % of Total 46%
80% live in % of ZIPs 44%
Miami Newspapers Radio TV
# of Papers/Stations 5 5 1Net Cost $40,916 $67,366 $107,171Gross Rating Points 200 200.2Reach 49.1% 56.6% 97.5Frequency 1.0 3.5 2.1
Miami Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
HoustonKey Facts
Houston DMA Rank 3
Hispanic 18 – 54 Pop 843,000
Hispanic % of Total 33%
80% live in % of ZIPs 27%
Houston Newspapers Radio TV
# of Papers/Stations 4 6 1Net Cost $33,741 $65,030 $58,874Gross Rating Points 200.3 200.9Reach 67.7% 71.6% 35.1%Frequency 1.0 2.8 5.7
Houston Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
San FranciscoKey Facts
Hispanic DMA Rank 7
Hispanic 18 – 54 Pop 621,000
Hispanic % of Total 33%
80% live in % of ZIPs 27%
San Francisco Newspapers Radio TV
# of Papers/Stations 5 3 1Net Cost $16,669 $34,170 $71,797Gross Rating Points 198.0 200.9Reach 48.3% 51.4% 28.8%Frequency 1.0 3.8 7.0
Sources: Hispanic Population: Nielsen Claritas, Hispanic Circulation: Reported by publicationsRadio: Arbitron, TV, Nielsen
San Francisco Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
New YorkKey Facts
Hispanic DMA Rank 2
Hispanic 18 – 54 Pop 1,824,000
Hispanic % of Total 21%
80% live in % of ZIPs 21%
New York Newspapers Radio TV
# of Papers/Stations 27 4 2Net Cost $63,620 $68,074 $81,233Gross Rating Points 200.6 200.6Reach 54.5% 54.4% 45.2%Frequency 1 3.7 4.4
New York Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
ChicagoKey Facts
Hispanic DMA Rank 5
Hispanic 18 – 54 Pop 782,000
Hispanic % of Total 20%
80% live in % of ZIPs 22%
Chicago Newspapers Radio TV
# of Papers/Stations 6 4 2Net Cost $26,860 $38,496 $51,383Gross Rating Points 200.9 200.2Reach 52.9% 66.5% 50.8%Frequency 1.0 3.0 3.9
Chicago Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
PhiladelphiaKey Facts
Hispanic DMA Rank 18
Hispanic 18 – 54 Pop 252,000
Hispanic % of Total 8%
80% live in % of ZIPs 22%
Philadelphia Newspapers Radio TV
# of Papers/Stations 3 2 2Net Cost $10,471 $10,844 $55,351Gross Rating Points 103 200.0Reach 69.0% 16.7% 43.8Frequency 1.0 6.1 4.6
Philadelphia Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
MilwaukeeKey Facts
Hispanic DMA Rank 42
Hispanic 18-54 Pop 66,000
Hispanic % of Total 8%
80% live in % of ZIPs 23%
Milwaukee Newspapers Radio TV
# of Papers/Stations 1 1 1Gross Cost $1,257 $6,069 $20,712Gross Rating Points 206.8 No Nielsen dataReach 20.2% 29.8%Frequency 1.0 6.9
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
Milwaukee Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications
SeattleKey Facts
Hispanic DMA Rank 27
Hispanic 18 – 54 Pop 147,000
Hispanic % of Total 8%
80% live in % of ZIPs 35%
Seattle Newspapers Radio TV
# of Papers/Stations 2 2Net Cost $3,744 $3,727Gross Rating Points 200.0 No Nielsen DataReach 41% 32.5%Frequency 1.0 6.2Net CPM $25.60 $11.94
Seattle Hispanic newspaper distribution in key Hispanic ZIP codes
Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications