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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.o rg

Newspapers Extend Reach

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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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Page 1: Newspapers Extend Reach

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

Page 2: Newspapers Extend Reach

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

Page 3: Newspapers Extend Reach

IMPORTANCE OF HISPANICS

Page 4: Newspapers Extend Reach

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

Page 5: Newspapers Extend Reach

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

Page 6: Newspapers Extend Reach

CHANGING MEDIA LANDSCAPE

Page 7: Newspapers Extend Reach

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

Page 8: Newspapers Extend Reach

Print usage approximates Internet usage across all acculturation levels

Source: Synovate 2008 Diversity StudyChart by: Nile Wendorf, EXTRA Bilingual Newspaper, Chicago,

IL

Page 9: Newspapers Extend Reach

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

Page 10: Newspapers Extend Reach

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

Page 11: Newspapers Extend Reach

CURRENT STATE OF HISPANIC NEWSPAPERS AND WHY

Page 12: Newspapers Extend Reach

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

Page 13: Newspapers Extend Reach

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

Page 14: Newspapers Extend Reach

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+

Page 15: Newspapers Extend Reach

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

Page 16: Newspapers Extend Reach

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

Page 17: Newspapers Extend Reach

THE HIDDEN REACH OF HISPANIC NEWSPAPERS

Hispanic newspapers can out reach radio in many markets at a competitive cost

Page 18: Newspapers Extend Reach

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

Page 19: Newspapers Extend Reach

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

Page 20: Newspapers Extend Reach

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

Page 21: Newspapers Extend Reach

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%

Page 22: Newspapers Extend Reach

Los Angeles Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 23: Newspapers Extend Reach

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

Page 24: Newspapers Extend Reach

Dallas Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 25: Newspapers Extend Reach

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

Page 26: Newspapers Extend Reach

Washington DC Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 27: Newspapers Extend Reach

Newspaper’s has strong reach in all markets and compares favorably to other media

Page 28: Newspapers Extend Reach

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

Page 29: Newspapers Extend Reach

Contributors

Nile WendorfAssociate [email protected]

Greg AnthonySenior Vice President,

[email protected]

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

Page 30: Newspapers Extend Reach

APPENDIX – ADDITIONAL MARKET SPECIFICS

Page 31: Newspapers Extend Reach

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

Page 32: Newspapers Extend Reach

Miami Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 33: Newspapers Extend Reach

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

Page 34: Newspapers Extend Reach

Houston Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 35: Newspapers Extend Reach

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

Page 36: Newspapers Extend Reach

San Francisco Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 37: Newspapers Extend Reach

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

Page 38: Newspapers Extend Reach

New York Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 39: Newspapers Extend Reach

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

Page 40: Newspapers Extend Reach

Chicago Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 41: Newspapers Extend Reach

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

Page 42: Newspapers Extend Reach

Philadelphia Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 43: Newspapers Extend Reach

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

Page 44: Newspapers Extend Reach

Milwaukee Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications

Page 45: Newspapers Extend Reach

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

Page 46: Newspapers Extend Reach

Seattle Hispanic newspaper distribution in key Hispanic ZIP codes

Sources: Hispanic Population: Nielsen ClaritasHispanic Circulation: Reported by publications