Hispanic Fact Pack 2013 - Advertising Age

hfp2013 v48.qxp

7/11/2013

12:50 PM

Page 1

11%

Hispanic media spending growth in 2012

2012 ad spending in Hispanic media

$8B $246 MILLION

Procter & Gamble’s 2012 Hispanic measured-media spending

26%

28

Median age of U.S. Hispanics, vs. 37 for overall U.S. population

Percentage of U.S. population under age five that is Hispanic

HISPANIC FACT PACK 2013

10 YEARS OF BIG CHANGE U.S. marketing, media, demographics and agencies

Welcome to Ad Age’s 10th annual Hispanic Fact Pack, and all the changes a decade has brought in marketing to Hispanic consumers. In our inaugural Hispanic Fact Pack, we reported that 2003 U.S. Hispanic media spending totaled $2.8 billion. That nearly tripled to $7.9 billion in 2012 (Page 6). And Hispanic internet display spending, now at $431 million, wasn’t even measured a decade ago. Many of the players are still the same— Procter & Gamble Co. is the most important U.S. Hispanic advertiser, spending $246.2 million in 2012 (Page 8)—up from $169.8 million in 2003—and Univision remains the biggest Spanish-language media group. But the game is very different. In the last decade, the fastest growth in the U.S. Hispanic market has shifted from foreignborn immigrants to U.S.-born Hispanics, and that is reflected in media and marketing. New Hispanic media properties, for instance, increasingly target bilingual and English-speaking millennials. Univision and Walt Disney Co.’s ABC are partnering to launch English-language cable news channel Fusion in the second half of 2013; Univision also is an investor in El Rey Network, an English-language cable channel in the works from filmmaker Robert Rodriguez. In print, Hearst Corp.’s English-language Cosmopolitan for Latinas will publish four issues this year. Marketers are increasingly considering Hispanics’ tastes and seeing them become preferences in the general market, too. It’s no coincidence that the 25 largest Hispanic advertisers now include General Mills and Mars Inc., neither of which was in that ranking a decade ago. Hispanic-owned Goya is partnering with Hero AG’s Beech-Nut in a national rollout this sum-

mer of Beech-Nut Goya baby food, a line of Latin flavors and combinations that reflects today’s demographics: One-fourth of U.S. births are to Hispanics, who typically buy more baby food than do other groups. Only five of this year’s 10 biggest Hispanic agencies (Page 38) were in the top 10 a decade ago—Bravo Group, Lopez Negrete Communications, Alma, Zubi and Dieste. One former top 10 agency, WPP’s Mendoza Dillon & Asociados, has disappeared through mergers; it’s now part of WPP’s Bravo. Newcomers include fast-growing LatinWorks, now the thirdbiggest Hispanic shop (from No. 16 in the 2004 edition and No. 5 last year), and Conill, ranked No. 5 from No. 13 a decade ago. The Coral Gables, Fla., headquarters of Accentmarketing is in the process of closing. Accentmarketing, which is 49% owned by Interpublic Group of Cos., continues to operate a small office in West Hollywood, Calif., reporting through Interpublic's Axis Agency. Specialist media-buying agencies were slow to move into the U.S. Hispanic sector, and unlike in the general market, some of the biggest Hispanic shops are still full-service ad agencies with media departments. For the first time, the five biggest Hispanic media agencies are specialist shops, but half of the 16 media agencies with more than $3 million in media-services revenue are full-service Hispanic agencies (Page 42). In agency honors, LatinWorks was Ad Age’s Multicultural Agency of the Year and La Comunidad won a spot on Ad Age’s Agency A-List (Page 41). Both agencies were awarded at the Cannes Lions festival in June 2013, along with Alma, Grupo Gallegos and Lapiz. —LAUREL WENTZ

Correction: An earlier version of this story incorrectly stated that Concept Café had completely shuttered. It is now operating from Boston.

ADVERTISING AGE

JULY 22, 2013 • 3

We’re the ones that make those butterﬂies in your stomach nervous. be bold. beBravo.com


INSIDE NMARKETINGN P. 6I

NDEMOGRAPHICSN P. 34I

Hispanic ad spending by medium

Population

Hispanic media ad spending growth rates Spending by medium

U.S. population totals Hispanic discretionary spending

P. 8I

P. 36I

Largest advertisers

Average time spent by online Hispanics

Largest spenders in Hispanic media, including magazines, newspapers, TV, radio and internet

On media-related activities

NMEDIAN P. 18I Language preferences

Purchase plans Via device by category

NAGENCIESN P. 38I

For Hispanic adults

Largest Hispanic agencies in 2012

Top 10 U.S. TV markets

By U.S. revenue from Hispanic activities

By Hispanic TV households

P. 41I P. 20I TV and cable programs

Award-winning Hispanic agencies Eight Lions won at Cannes Festival

Ranked by ratings and shown by language

Largest media properties TV and cable networks, magazines, newspapers, social networks, websites, mobile phone use, online ad networks, radio

P. 42I Largest Hispanic media agencies in 2012 By estimated U.S. revenue from Hispanic activities

Updated with corrections, July 31, 2013. Corrections appear on Pages 3, 28 and 40.

HOW TO REACH US Advertising Age’s Hispanic Fact Pack 2013 was published July 22, 2013. Email: [email protected]. Send mail to: Ad Age DataCenter 150 N. Michigan Ave., Ste. 1737 Chicago, IL 60601

Additional copies: Order print copies at [email protected] or by calling 1-877-320-1721; for readers outside the U.S., 1-313-446-0450. Digital edition available free online at AdAge.com/trend-reports through Aug. 21; available for $29 after that. Staff: Kevin Brown, Bradley Johnson, Catherine Wolf, Shawna Lent, Laurel Wentz and Amanda Murphy. Ad sales: (212) 210-0159.

This document, and information contained therein, is the copyrighted property of Crain Communications Inc. and The Ad Age Group (© Copyright 2013) and is for your personal, non-commercial use only. You may not reproduce, display on a website, distribute, sell or republish this document, or the information contained therein, without prior written consent of The Ad Age Group.

ADVERTISING AGE

JULY 22, 2013 • 5

hfp2013 v48.qxp

7/11/2013

12:51 PM

Page 6


Hispanic media spending growth rates Versus all U.S. measured-media ad spending growth, 2003 to 2012 Percent change 13.3% 20%

U.S. Hispanic measured media

6.1%

11.1% All U.S. measured media -8.6%

-10 2003

2004

2005

2006

2007

2008

3.2%

-10.2% 2009 2010

2011

2012

Sources: All U.S. media data from Kantar Media. Hispanic data for 2009 through 2012 are Ad Age DataCenter estimates (see chart below). Hispanic media data from 2003 through 2008 from HispanTelligence, research arm of Hispanic Business, based on input from Kantar Media, media industry experts, advertising agencies and public records.

Hispanic major media ad spending in 2012 Gross U.S. ad spending. Dollars in millions U.S. ADVERTISING SPENDING IN HISPANIC MEDIA 2012 2011 % CHG

MEDIUM

Network TV Spot TV Cable TV networks

$4,206

$3,491

20.5%

1,323

1,237

6.9

PERCENT OF TOTAL 2012 2011

52.9%

48.8%

16.7

17.3

246

227

8.3

3.1

3.2

5,775

4,955

16.5

72.7

69.3

Newspapers

683

702

-2.7

8.6

9.8

Magazines

294

365

-19.5

3.7

5.1

Subtotal TV 1

Other print

39

47

-17.0

0.5

0.7

1,016

1,113

-8.7

12.8

15.6

Spot radio 3

725

666

8.9

9.1

9.3

Internet

431

420

2.5

5.4

5.9

$7,946

$7,154

100.0

100.0

Subtotal print 2 4

Total

11.1%

Totals by media are gross ad revenue. Sources: 1. TV data are measured media from Kantar Media (kantarmediana.com). Excludes ad spending for Univision Prepaid MasterCard (Tarjeta Prepagada Univision MasterCard), a prepaid card launched by MasterCard and Univision in 2009 and issued by Bancorp Bank. 2. Print data from Latino Print Network. Newspapers include classified. Other print includes annuals, catalogs, journals, newsletters and yellow pages. Print includes Puerto Rican publications as well as Mexican border publications with U.S. circulation. Kantar Media also measures Hispanic newspapers and magazines. 3. Spot radio data from Nielsen (nielsen.com). 4. Internet data are Ad Age DataCenter estimates of internet display advertising. Kantar Media monitors Spanish-language websites.

6 • JULY 22, 2013

ADVERTISING AGE

MORE WAYS TO WIN THE HISPANIC FAN

MORE PLATFORMS, MORE SPORTS, IN ANY LANGUAGE 20M HISPANIC FANS

A WEEK

WATCH, LISTEN, READ OR LOG-ON TO ESPN MEDIA JOHN FITZGERALD

10+ HOURS

A WEEK

TIME SPENT BY HISPANIC FANS W/ ESPN MEDIA

VP MULTIMEDIA SALES ESPN DEPORTES

20M HISPANIC FANS A QUARTER

4

CONSECUTIVE YEARS HIGHEST-RATED & MOST-WATCHED

[email protected] WWW.ESPNDEPORTESSALES.COM

Sources: GFK, ESPN All Day, Every Day Fall 2012, 18.7 million Hispanic P13-64; Nielsen, 4Q12, Hispanic P2+, AA reach with 1+ minute X\HSPÄLYSP]LZK:WVY[ZJLU[LYVU,:75,:75+,769;,:,:75,>:,:75,:75