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Ad Age's 2015 Hispanic Fact Pack Is Out Now

Guide Includes Marketing, Media and Agency Rankings, Plus Digital and Demographic Trends

Marketers continue to boost spending in the U.S. Hispanic media market, with 2014 advertising outlays growing by 12.0%, far ahead of the estimated 4.9% growth for overall U.S. major-media ad spending. As usual, internet spending (up 18.3%) and TV (up 14.7%) fueled that growth. Newspapers eked out 1.4% growth in ad spending, and magazines were down by 0.6%.

Ad Age's twelfth-annual Hispanic Fact Pack, distributed with the Aug. 3 issue of the magazine, includes data about marketers, ad spending, demographic change and how Hispanics use digital media. Rankings in the 40-page 2015 guide include the top 50 Hispanic advertisers, the 50 largest Hispanic agencies and the 16 biggest Hispanic media agencies.

The top 50 Hispanic marketers increased spending by 17.6% to $3.8 billion, led by the biggest advertiser,Procter & Gamble Co.

Rivalries are heating up. In two of the biggest recent account moves, Sprint is moving to Omnicom Group-controlled Alma after a Hispanic pitch and AT&T, the No. 2 spender, is now at Omnicom's Dieste after leaving its previous agency, WPP's Bravo Group.

PepsiCo and Coca-Cola Co., once big U.S. Hispanic spenders, are back. PepsiCo, which just squeezed into last year's Hispanic Fact Pack ranking in the No. 50 spot, jumped 15 places to No. 35 with a 39% increase in 2014 spending to $46.7 million. Similarly, Coca-Cola re-entered the top 50 at No. 45 as its Hispanic ad spending surged 68.4% to $38.4 million.

After years of speculation over when and how UnivisionHoldings' private-equity investors would sell the Spanish-language media giant they bought in prerecession 2007, Univision filed in early July 2015 for an initial public offering. Univision recently extended through 2030 its programming agreement with Mexico's Grupo Televisa, the world's biggest Spanish-language TV producer. Televisa will own about 22% of Univision if the IPO is completed.

In the 50 largest U.S. Hispanic agencies' ranking, Lopez Negrete Communications' 26.3% revenue growth to $42.3 million moved the independent agency into the top slot from No. 2 after a steady climb over the past decade from No. 7 in the 2005 Hispanic Fact Pack.

The agency's 2014 growth spurt was fueled by winning the VerizonWireless account in late 2013, adding more Chrysler nameplates in 2014—Chrysler 200, Dodge and Ram---and Samsung's almost doubling its Hispanic spending, said President-CEO Alex Lopez Negrete. Rarely losing major clients also helps; two of Lopez Negrete's three biggest accounts,Walmart and Bank of America, have been with the agency more than 20 years. In other moves, the Houston-based shop opened offices in New York and Mexico City. And the agency is turning the corner on creativity under CCO Fernando Osuna.

Also climbing steadily is Saatchi & Saatchi's Hispanic shop Conill, part of Publicis Groupe. Conill is now the third-biggest U.S. Hispanic shop, after LatinWorks, and is up from the No. 4 slot last year and No. 7 in 2011.

One venerable Hispanic agency, Publicis-owned Bromley Communications, closed in August 2015 after 34 years. Chairman-CEO Ernest Bromley said he plans to earn a doctorate in consumer behavior, do research and teach.

In agency honors, Ad Age named Alma the Multicultural Agency of the Year for the second year, while The Community won a coveted spot on Ad Age's A-List of the top 10 agencies. The Community, owned by Publicis, this year changed its name from La Comunidad as a reflection of America's changing multicultural scene.

Unlike in the general market, a number of U.S. Hispanic agencies continue to operate media departments, rather than outsourcing planning and buying to media agencies. That includes LatinWorks, Conill, Lopez Negrete Communications, Casanova Pendrill, Zubi Advertising Services and Acento Advertising.

But the shift continues to media agencies, which take the top seven slots in Ad Age's Hispanic media agency ranking. Two specialist media agencies were added this year. They are Maxus, WPP's fourth and smallest media agency, and Horizon Media. Maxus got a big boost to its Hispanic business with assignments from Nestle, SC Johnson and other clients. And Horizon has revved up its Hispanic media effort after hiring Karina Dobarro a year ago as VP, managing director, multicultural brand strategy, along with Jerly Marquez as associate director of multicultural brand strategy. Ms. Dobarro was previously managing director of multicultural marketing at WPP's Mindshare and Ms. Marquez was a multicultural market specialist for WPP's Group M media agencies.

Another WPP media shop, MEC Bravo, which started as Y&R Hispanic shop Bravo's media department, is re-branding as MEC Multicultural.

And Conill is now splitting media accounts it formerly controlled for some of its biggest clients. Toyota moved Hispanic media buying to ZO Multicultural, leaving Conill with planning, along with Hispanic digital planning and buying. And T-Mobile consolidated media planning and buying at ZO Multicultural, although Conill still has a team providing Hispanic media insights and activation for the car maker.

Hispanics continue to account for nearly half of the U.S. population growth since the 2010 Census, and now account for 17.4% of the population, or 55.4 million people. And they are young. More than 25% of the U.S. population under the age of 10 is Hispanic, and so are more than 20% of millennials.

Hispanics continue to be more digital than their non-Hispanic counterparts. They spend more time than non-Hispanics watching videos online (2.7 hours per day compared to 2.1 hours for non-Hispanics), playing video games and accessing the internet on a tablet or phone.

The digital edition of the Hispanic Fact Pack is available free to Ad Age members and Datacenter subscribers here, and is available to non-subscribers for $49.

Source: adage.com (via Ad Age's 2015 Hispanic Fact Pack Is Out Now | Hispanic Marketing - Advertising Age)

By the editors of Media Life

This is part of an ongoing Media Life series entitled “Catching the next big wave: Hispanic advertising.” You can read previous stories by clicking here.

We tend to talk about Hispanics as a group.

But while it’s true that many share a similar heritage, there’s great diversity among Hispanics. Many don’t even trace their roots to the same continent, let alone the same country.

Understanding the nuances and identities of Hispanics is crucial in building any media plan.

Do you target in English or Spanish?

Certainly you do it in Spanish if you’re targeting an Hispanic sixtysomething who came from Mexico and speaks little English.

But what about the Hispanic Millennial who was born here? He may speak Spanish at home with his parents but English outside the home and with everyone else in his life.

These sorts of challenges are unique to planning and buying Hispanic media.

To help media buyers and planners get a better feel for America’s Hispanics in all their diversity, Media Life set out to compile the best possible set of statistics and data.

We’ve assembled it below, in infographic form.

We break out Hispanics by:

Age

Income

Ethnicity

Employment

Education

Language

Did we miss anything?

Let us know what questions you have and we’ll try to track down the information and add it to the story.

#source:#medialifemagazine.com

Hispanics Travel, Affluent Hispanics TRAVEL

The travel industry has been going through a transformative period as travel agents and tour operators are struggling to compete with online booking and self-guided vacations driven by online review sites. As the official Hispanic market research partner of the National Tourism Association, ThinkNow Research has created a comprehensive research study delving into the traveling habits of U.S. Hispanics.

The report covers everything from travel habits, preferences, booking, amusement parks, transportation, average spend, and destinations.

This blog focuses on a potential target within the U.S. Hispanic demographic that presents a large opportunity for the travel industry, affluent Hispanics, defined as household incomes $80K+. Our larger report available for purchase delves into all income levels.

The affluent Hispanic traveler represents a unique opportunity for the travel industry in many ways. The first is in travel frequency. When looking at affluent Hispanics vs. affluent non-Hispanics, Hispanics took almost 2 more vacations in the past year vs. their non-Hispanic counterparts:

This trend is apparent across all incomes though slight less pronounced with median income Hispanics traveling almost 5 times in the past 2 years vs. 4 times for non-Hispanics. Lower income Hispanics are also over-index with 3.2 vacations in the past 2 years vs. 2.1 for their non-Hispanic counterparts.

In short, Hispanics travel more across all income levels and the difference is especially pronounced among affluent Hispanics. This presents a great opportunity for the travel industry as Hispanics are clearly outpacing their non-Hispanic white counterparts in terms of sheer number of vacations.

This trend continues when we delve into spend per vacation. Looking at the amount spent on their last U.S. vacation, we see Hispanics spending nearly $300 more than non-Hispanics:

Broken out by income, this trend becomes even more pronounced:

The above table highlights how large the opportunity is among Hispanics, but even more compelling, affluent Hispanics. Affluent Hispanics average a spend of almost $4K for a U.S. vacation and $6K for an international vacation. Not only are affluent Hispanics traveling more, their spending more per vacation. Doesn’t get better than that for an ideal consumer target in the travel industry.

OK so Hispanics travel more, spend more, but what is important to them? How do I appeal to this super traveler? Our report delves into specifics regarding attitudes about vacations. One data point that provides a clue into what is important to Hispanic travels is regarding their attitudes about vacations. Looking specifically at the statement, “My children influence where we decide to go on vacation” almost 60% of Hispanics agreed with that statement vs. 43% of non-Hispanics:

This data obviously points to the need for travel agents and tour operators to be aware of a very important decision maker for Hispanics, children.

Hispanics present a unique opportunity for the travel industry and the space is open for brands and companies to make real headway with this demographic. If targeted correctly, U.S. Hispanics can be a saving grace in an industry hit hard by online players.

Source: thinknowresearch.com

#latinos hispanicamerican hispanictravel hispanicmarket cesaraparicio

U.S. Hispanics Are Super Mobile,

Super Consumers

When we look across the swath of digital consumers in the U.S., Hispanics are now the most avid smartphone users around. In fact, according to the most recent Total Audience Report, they’re on their phones for more than 14 hours a week for app, audio, video and web purposes. And when it comes to the other things we do with our phones—including talking—the same trend seems to hold true.

For example, Nielsen Mobile Insights has found that the average Hispanic mobile user uses 658 minutes per month on their mobile plan, which is significantly more than the average of 510 minutes per month for all consumers. When broken down by Hispanic subgroups, bilingual Hispanics dominate in terms of minutes used, as they spend more than 762 minutes per month talking on their mobile devices.

This high level of mobile engagement parallels the high level of satisfaction that Hispanics have with their mobile service providers. Compared with all multicultural groups, Hispanics are consistently the most satisfied with their devices and carriers. These high levels of satisfaction also make them least likely to become “switchers” and change devices or carriers, suggesting that Hispanics stick with brands they like and are familiar with.

From a holistic mobile perspective, Hispanics have become Super Consumers. Their high usage and engagement with mobile devices cross-functionally provides an interesting opportunity for those in the mobile space. With a population that will account for more than half of the population growth in the U.S. by 2020 and nearly 85% of growth by 2060, their current $1.4 trillion spending power will grow even larger.

These Super Consumers provide an opportunity for marketers and advertisers working anywhere around the mobile world—whether it be devices, apps or carriers—to grab the attention of these highly engaged and highly valuable consumers.

METHODOLOGY

The insights from this article were derived from Nielsen Mobile Insights, the largest national study of the mobile market trends and attitudes, in the second quarter of 2015:

Mobile Insights surveys more than 300,000 online respondents per year and provides in-depth tracking of attitudes, behaviors and usage by Hispanic acculturation and versus non-Hispanics

The Spanish language version of Mobile Insights is conducted via phone in 25 key Hispanic markets

Fielded every month: 10,000 Hispanic respondents per quarter, Online surveys: 6,000 Hispanic respondents per quarter, Phone surveys performed by Spanish speaking interviewers: 4,000 Hispanic respondents per quarter

Source: nielsen.com

#Hispanics hispanicmedia hispanicmobile ushispanics superconsumers hispanicmedia Hispanicmarketing multicultural latinos uslatinos

The Growth of ‘Multiracial’ America

The number of multiracial Americans is much higher than previously thought, a new report says, with some Americans far more likely to see themselves as mixed than others—a trend that could quicken America’s racial transformation.

Nearly 7% of Americans 18 or older have a multiracial background, according to a Pew Research Center report released Thursday. That is sharply higher than previous estimates of roughly 2% based on the Census Bureau’s American Community Survey.

Pew’s report is based on a nationally representative survey of over 1,500 multiracial Americans ages 18 and up conducted in the spring. Instead of using just self-reports by those surveyed, Pew took a new “three-generation” approach by accounting for the racial backgrounds of parents and grandparents. Hence the higher estimate.

Multiracial Americans don’t necessarily see themselves that way. In fact, just four in 10 U.S. adults with mixed-race backgrounds considered themselves “mixed race or multiracial,” Pew found; 60% didn’t. This “multiracial identity gap” was fueled, in large part, by the largest group of U.S. multiracials—those with white and Native American backgrounds.

Just 25% of adults with a white-American Indian racial background considered themselves “multiracial.” Reasons for not citing a multiracial background ranged from the fact that someone looked like one race, or were raised that way, or didn’t know any family member or ancestor who was a different race.

By contrast, 61% of white-black multiracial Americans said they were multiracial, along with 70% of adults with a white-Asian background. While “Hispanic” is not a race, roughly 53% of Hispanics with mixed-race backgrounds identified as multiracial, the report said.

A few caveats: “Race” is a slippery and vexing intellectual concept, with a troubled history in the U.S.

Multiracial Americans are far from monolithic. Americans with white and Asian backgrounds, for example, tend to identify with non-Hispanic white Americans. Mixed Americans with a black background are much more likely to say they have been unfairly stopped by police because of their racial background—an experience that closely mirrors that of single-race blacks.

And people change what they say about their race over time, or even based on the situation. Three in 10 multiracial adults say they have changed the way they describe their race over the years, Pew notes.

Still, Pew’s survey findings suggest U.S. multiracials are becoming more likely to embrace their multiethnic heritage rather than see it as a liability. That could mean even more interracial marriage and childbearing and a more diverse U.S. population.

Multiracial Americans are already growing at a rate three times as fast as the overall U.S. population. The share of marriages between spouses of different races has increased almost fourfold since 1980. The share of multiracial babies has risen from 1% in 1970 to 10% in 2013.

This process may be about to speed up.

If Asians and Hispanics—America’s more recent, immigrant-influenced minorities—are most likely to celebrate their mixed heritage, that could mean “multiracial populations will explode even faster than we might have thought,” says William Frey, a Brookings Institution demographer whose 2014 book, “Diversity Explosion,” details how Hispanics, Asians and multiracial Americans are quickly transforming U.S. society.

Nearly 60% of white-Asian Americans said having a mixed racial background has been an advantage, Pew said. Around one-third of multiracial Hispanics said the same.

It’s not all about Asians and Hispanics.

Mr. Frey’s work shows that even among mixed-race Americans with a black background, “racial barriers are being broken.”

Some 15% of black toddlers under age 5 were considered white-black in 2010, compared with just 8% in 2000, he notes. Asked if their racial background has been a disadvantage, 72% of Americans with a white-black background said it didn’t make a difference, Pew found.

As multiracial Americans become more comfortable with their identities—and as their ranks grow—the boundaries of these categories may start to erode. America’s melting pot won’t just hold different ingredients; it will turn into soup.

“The definition of race and race-related identity in America going forward will be more fluid than we have ever experienced,” Mr. Frey says. “The concept of race will be fuzzy and may eventually fade away, despite its importance today.”

Source: http://blogs.wsj.com

5 Steps To Capturing The Hispanic Market –

The Last True Growth Opportunity - Forbes

Most U.S.-based firms have a significant corporate imperative to attract Hispanic consumers, given their tremendous demographic and economic importance. Some companies, such as McDonald’s, Budweiser, and AT&T, are spending significant resources to gain market share with Hispanics and are making inroads. But it’s no simple task. According to a 2012 Nielsen report, “Hispanics are the fastest growing ethnic segment expected to grow 167 percent from 2010 to 2050, compared to 42 percent for the total population.” The report also found that Hispanics “will be the dominant and in many cases the only driver of domestic CPG sales growth.”

In fact, AdAge reported that Steve Mandala, Univision’s VP of advertising and sales had recently stated at a company presentation, that all of beverage marketers’ growth will come from the Hispanic market, likewise auto sales will grow twice as fast as sales to non-Hispanics. With this new business reality, the Hispanic market may well be one of the last significant growth opportunities left in the U.S., particularly in the consumer goods and service industries.

So, how do you capture this often elusive market? A well-crafted, data-driven strategy is the first step in reaching the Hispanic marketplace. The process must incorporate marketing, strategy, and financial assessments to comprehensively assess the Hispanic opportunity, which results in outputs that frame the size, scope, and process required to win with Hispanics, as well as clear financial contributions and investments.

As Monica Gill, Senior Vice President, Public Affairs and Government Relations – Nielsen, sees it: “Latinos are emerging as a powerhouse of economic influence, presenting marketers an increasingly influential consumer group that can translate into business impact. The key is to recognize that today’s modern Latino is ‘ambicultural’ with the ability to seamlessly pivot between English and Spanish languages and to embrace two distinct cultures. Understanding how to connect with this unique consumer profile will be key to successful engagement.”

As the 2012 Nielsen report put into perspective, “Latinos are no longer just a sub-segment of the economy, but a prominent player in all aspects of American life.” To that end, what’s needed is a comprehensive approach to creating a Hispanic strategy that highlights a deep understanding of brand building for Hispanics and their critical voice across social media platforms, as well as a “traditional” understanding of the need to approach this group in a highly-targeted and micro-localized fashion, using a test-as-you-go approach to determining best practices.

From my experience leading the Center for Hispanic Leadership, a human capital and business strategy development firm with Fortune 500 client companies, I have developed five guiding principles for companies looking to establish a Hispanic strategy.

1. Define Clear Goals and Objectives to Win with Hispanics

Most firms continue to approach the Hispanic market as either an outreach of general market business practices or an extension of a brand or business unit-specific strategies. Worse still, is that investments targeting the Hispanic market are unusually limited, a paradox given the sophisticated market sizing and financial analysis performed by major U.S. firms to grow major brands or win across a portfolio.

What prevents firms from allocating sufficient capital to such an attractive opportunity? We have repeatedly seen many firms become reluctant to invest accordingly because the management talent is lacking and the approach required to win is unclear or muddled, lacking well-defined goals and objectives. Most are challenged to state a simple growth statement objective backed by share, financial or category goals. While these numerical challenges do exist, the bigger, often unspoken truth is that management teams do not trust that a solid strategy exists.

A well-crafted, data-driven strategy is the first step in reaching the Hispanic marketplace. The process must incorporate marketing, strategy, and financial assessments to comprehensively assess the Hispanic opportunity, which results in outputs that frame the size, scope, and process required to win with Hispanics, as well as clear financial contributions and investments.

“The number one issue,” according to Cesar Melgoza – Founder & CEO, Geoscape, “is that companies fail to recognize the critical importance of the Hispanic market to their overall top and bottom lines. They believe they can experiment and only incrementally invest in this segment, but they’re mistaken because, for most companies out there, it is the bulk of their growth into the foreseeable future.”

Anheuser Busch struggled for several years to effectively win with Hispanics. The turning point came with its acquisition by InBev, whose Brazilian management team had deep expertise in driving strategy from commercial initiatives, and understood many of the lifestyle and behaviors of Hispanics. ABI made Hispanics a key growth priority and delivered comprehensive data-driven strategy heavily oriented by their competitive advantage in go-to-market activities.

2. Hyper Local is Critical

A second reality of Hispanic strategy formulation is that hyper local strategies will be required. This is because Hispanic interactions with brands and channels are vastly different by age, market and level of acculturation. Understanding these differences results in vastly different market sizing, strategic approaches, and for consumer goods, radically different routes to market and channel strategies.

“I would consider hyper local marketing to be a key element in any strategy targeting the Hispanic demographic,” says Gabriel Torres, Vice President and General Manager for the Southeast Region – T-Mobile. “Hyper local means engaging individuals or groups where they live or shop, and connecting customers with an experience. T-Mobile utilizes hyper local strategies when we launch new products and open new stores. In our recent launch of our innovative upgrade program, JUMP!, we employed hyper local campaigns to engage with customers through social media and on the street and then guide them to our web store or one of our retail store locations.”

A simple example can show the powerful impact of a well-designed Hispanic strategy:

A large global food company had struggled to establish a growth platform with Hispanics, a market controlled by its primary competitor. For several years they invested heavily in Hispanic targeted advertising, sponsoring shows on Spanish-language television. Products were positioned and distributed across general market channels, with only Spanish-language packaging to support this effort.

Our team helped this client to rethink this approach. While most Hispanic population centers align on the states of Texas, California, and Florida, our approach identified growth dynamics targeting a 16-24 year-old consumer with average to high levels of acculturation, rather than the previous targeting of the mass Hispanic market. This target has high levels of internet and social media access and usage, allowing for the establishment of a reconsideration of our clients’ brands, supported by a new positioning of their brands. This facilitated identification of a new prioritization of cities / towns across these states.

Our work also noted the importance of “on the go” consumption by this target, requiring distribution of single serve packaging to up-and-down the street channels in their neighborhoods. In market work and insights work identified independent grocery stores and convenience stores as critical channels, which required new routes to market and relations with distribution partners our client had never approached. Naturally, attractive point of sale and ‘retail theater’ displays tied to group activities and a year-round calendar of events across major holidays helped to create in-store excitement.

What emerged was a hyper-local strategy, with a 360-degree approach incorporating a prioritization of consumers, brands, geographies, market approaches (specifically social media), and distribution channels. It was further reinforced by aligning and sponsoring activities and community events important to our target audience’s lifestyles.

3. Deploy Your Best People

The prior example demonstrates that a comprehensive Hispanic strategy has a myriad of layers that must be solved and are distinctly different from general market approaches. Therefore, the talent and leadership required for your Hispanic strategy is a critical success factor.

“Perhaps the most obvious area where companies fail to invest enough is in talent,” says Chiqui Cartagena, Vice President, Corporate Marketing – Univision (and author of the book, Latino Boom II). “Everyone on the marketing staff needs to understand the importance of the Hispanic consumer and understand how to capture that opportunity. The person/marketer with responsibility for the Hispanic effort doesn’t need to be Hispanic – but they do need to have the skills necessary to do the job and the ability/interest to learn about the Hispanic consumer.”

In the near term, your best talent – not your best Hispanic talent – is required to lead a successful Hispanic strategy. While you certainly need top Hispanic leaders to play critical roles, they may not be the ultimate leaders of your Hispanic strategy in the short term. This is often a controversial decision in many companies. But think about it: If you entered a new market or established a new brand or service, wouldn’t you bring the “A team” of top, proven leaders to drive the opportunity? Of course you would. Despite the language and cultural issues required for Hispanic strategy (which require your best Hispanic talent, particularly in marketing, insights and sales), this is ultimately a business, which requires the best leaders and strong decision making. It may take three-five years to gain traction with a Hispanic strategy, which is why bringing the best current talent is critical, and building a senior cadre of future Hispanic talent, who will ultimately lead the business.

4. World Class Analytics – and Partners – are Required

Poor Hispanic strategy often suffers from less than compelling analytics and market sizing. These limitations come from data-supplier limitations, although they have improved significantly in recent years. As would be required with any big strategic opportunity, you must have the knowledge and data to assure a continual loop of “Test, Refine, Prove, and Repeat,” which can only occur if strong data and analytics exist.

According to David Burgos, Vice President of Millward Brown and head of its Multicultural Practice, “Strategic research is one of the areas companies in general fail to invest enough in when it comes to Hispanics. Feeling the market pressure, many jump onto the Hispanic bandwagon by adapting their mainstream ads to Latinos, without looking at how they use their products or what they think/feel about their brands. Many blame this on limited budgets, but I’d argue that the cost of making a major marketing / commercial mistake is much higher than the investment needed to obtain sound knowledge early on in the marketing cycle.”

Indeed, many firms have taken less rigorous paths with their Hispanic strategy formulation because of data or knowledge limitations. Fortunately, strong analytical solutions are now available from major syndicated data providers and a variety of specialist market research firms. It’s critically important to dive deep into Hispanic behavior habits to understand how and why they shop:

Their unique trip mission patterns support higher per-trip spending (higher basket rings) by Hispanic shoppers versus their non-Hispanic counterparts,

Hispanic families tend to be brand loyal once brand relationships are established (national, regional and/or store brand alike),

Hispanics look to particular channels for specific needs, especially club and mass merchandise and independent grocery, where Hispanics spend +20%, +36 percent and +15% more than non-Hispanics respectively

Immediately you see that unique shopper strategies must be crafted around specific channels of opportunity, and for consumer goods categories, strong route-to-market and distribution partners will be required.

5. Hispanic Strategy is a Change Management Imperative

As you may have discovered, in many respects a successful Hispanic strategy is a change management exercise. It requires pushing the boundaries of the business model and human talent capabilities in ways to which one is not accustomed. It also requires the same levels of rigor one would require of any large, exciting growth opportunity, but is very different due to language and cultural cues, and perhaps distribution channel and route to market considerations. Lastly, it requires building a leadership team and bench that has different incentives and needs; one understands the importance of being culturally intelligent about the audience it is serving.

“The Hispanic strategy is certainly a good case study in change management,” says Cesar Melgoza of Geoscape. “The reason why more companies haven’t embraced this and done the right thing for their investors is because the organization resists change and wants to maintain legacy at the peril of their own valuation. The tools, technologies, analytics and data are available to help companies execute on this imperative. With this availability, there’s no excuse not to execute.”

With the Hispanic opportunity positioned as the last significant growth market in the U.S., corporations can no longer settle for compromises across any of these five areas above. Expect the Hispanic opportunity to merit the same standards as the general market, if not more, and embrace an Hispanic strategy as the vehicle to achieving a true profitable Hispanic business model. The opportunity is here. Culture is the new currency for growth. Now, capitalize on it – before your competition does – and the barriers to entry become more complex and costly.

To learn more about how your business can unlock new opportunities in the Hispanic market visit The Lab. Follow me on Twitter @GlennLlopis and check out my new eBook that will launch September 16th, titled, Awakening the Latino Factor.

Learn more about CHL’s Executive Summit hosted by the Johnson MBA Program at Cornell University on March 29-30, 2014.

Source: http://www.forbes.com

Study: U.S. Hispanics increase restaurant use

Per capita quick-service visits rose 4 percent in 2014, NPD find.

U.S. Hispanic customer visits to restaurants are outpacing the demographic group’s population growth, according to a new report by The NPD Group.

In 2014, Hispanics’ per capita visits to quick-service restaurants and other foodservice outlets increased by 4 percent, compared with a 1-percent decline in visits by non-Hispanics, according to the Port Washington, N.Y.-based research firm’s “CREST Hispanic” report.

NPD said that while the average U.S. Hispanic consumer visits quick-service restaurants more than the average non-Hispanic consumer, the demographic group’s use of full-service restaurants was less than non-Hispanics. Their per capita visits to full-service restaurants decreased by 7 percent compared with non-Hispanics, who reduced visits by 1 percent last year, the Crest report said.

Restaurant brands such as Popeyes Louisiana Kitchen, KFC and Papa John’s Pizza are targeting marketing at the growing demographic. Popeyes Louisiana Kitchen said earlier this year that it planned to target the growing Hispanic population across the U.S.

“We believe we have an opportunity to become even more relevant with this very fast-growing segment in the U.S.,” said Hector Munoz, Popeyes vice president and chief marketing officer-U.S. “We’re looking for creative, innovative ways to message to the Hispanic consumer. And that will consist of multiple mediums.”

In October, KFC launched a new campaign to appeal to the Hispanic market with an ad spot that represents how families, and the Hispanic community as a whole, can be united at the dinner table.

“Gathering together with family is at the heart of the Hispanic culture,” Rodrigo Coronel, spokesman for the Louisville, Ky.-based chain said. “KFC wanted to show how the different choices of a Favorites Bucket brings together a diverse Hispanic community, and everyone can meet at the table and enjoy the meal.”

The Hispanic community’s buying power is expected to reach $1.5 trillion this year, and the Hispanic population is expected to represent 19 percent of the total U.S. population by 2020, according to New York City-based statistics firm Statista.

NPD’s study found that in addition to increasing overall visits, U.S. Hispanics’ per capita spending at restaurants increased by 4 percent last year, compared with a 3-percent increase in per capita spending for non-Hispanics. Spanish-oriented Hispanics increased their per capita spending by 8 percent.

“Hispanics typically have larger party sizes, more visits with children, which contributes to higher spending,” NPD said in a statement. NPD noted that U.S. Hispanics exhibit what it called “brand-friendly behaviors,” including choosing chains (75 percent Hispanics versus 62 percent non-Hispanic) and dining out with children more often (40 percent of the time versus 29 percent for non-Hispanics).

NPD noted that Papa John’s, the quick-service pizza chain, began its Hispanic marketing efforts in 2006 by expanding its 24/7 online ordering capabilities to include a Spanish-language website. In 2014, the chain shifted more of the marketing focus to Hispanic consumers by growing its Spanish-language TV spending to 13 percent of its total marketing spending.

The CREST Hispanic study found that sales from Hispanic customers at Papa John’s grew 43 percent, traffic rose 18 percent, average eater checks went up $1.50, and items per eater moved from 2.07 to 2.25. “We put a Spanish-language strategy in place, but the message hasn’t had to change,” John Schnatter, Papa John’s CEO, said in a statement. “Papa John’s goal of bringing family and friends together resonates with Hispanics who are very focused on getting together with family.”

Schnatter said Papa John’s didn’t change any of its menu items.

“We just needed to communicate to Hispanics in a way they understood in order to build their confidence in the Papa John’s brand,” he said.

Source: nrn.com

4 ways to market to U.S. Hispanic tourists

and their $56B impact Feb 17, 2015

Hernan Tagliani

Orlando Business Journal

If your firm isn't marketing to Hispanic travelers, you may be missing out on a lot of revenue.

In the U.S., Hispanic travel is growing at a faster rate than the general market, with an economic impact estimated at more than $56 billion annually in leisure travel, according to the National Tour Association.

Hispanics, who see taking vacations as a sign of success, represent a growth in cruise vacations of 34 percent vs. 21 percent on non-Hispanics, 11 percent vs. 0.2 percent on foreign travel, and 13 percent vs. -0.4 on domestic travel, according to Experian's Simmons National Consumer Study. Hispanics also represent 11 percent of hotel guests within the last 12 months, or $17.1 billion, according to the American Hotel & Lodging Association.

In addition, about 31 percent of Hispanics travel in a group of four or more, compared with 25 percent of the general market. The reason: Traveling is a good family bonding activity and they do almost everything together as a group. So, when Hispanics are ready to take a vacation, they travel to and with their families. Even on business trips, Hispanics tend to bring their family.

Thus, there's a big opportunity from all different sectors within the tourism industry to build brand loyalty among Hispanics.

So, how can you engage with this consumer? Here are four key tips:

• Speak their language and understand their culture. Whether you reach out to them in English or Spanish, you need culturally relevant campaigns that speak to their needs. Even for bilingual Hispanics, do not assume that your Anglo campaigns will resonate with them just because they were born in the U.S. Hispanics are assimilating to U.S. culture, but they are not, and probably never will be, fully assimilated. They are living the path of acculturation. That's why you need carefully crafted messages to engage your brand with this growing, powerful market.

• Make sure your website is mobile-friendly and available in Spanish. After all, among U.S. Hispanics, the Internet is the main resource they use to book their travel, and they are three times more likely to have Internet access via a mobile device.

• Train your bilingual staff well and give them the right tools and resources to build relationships with your Hispanic customers. They also can help you train their counterparts in South America.

• Do not rely on agencies outside the U.S. to translate your English campaigns into Spanish. Your brand positioning will be at risk and mistakes will happen. The Hispanic initiative should be executed and managed by your corporate office so you can assure brand unification and eliminate misinterpretations, which are costly to any brand.

Understanding the different Hispanic cultures and their travel behavior is crucial to capture this booming market. A great vacation is an experience that will last forever and your brand should be at the heart of it.

Source: bizjournals.com

Hispanic Millennials And Financial Services by Jose Villa, February 5, 2015, 9:26 AM financial service companies have been slow to focus on the burgeoning U.S. Hispanic market. While certain sub-categories, namely money transfer services, check cashing and mortgage providers have aggressively pursued Hispanics, most efforts have been focused on the “unbanked” — an unsophisticated and relatively small segment of unacculturated Hispanic consumers that were generally outside the mainstream financial world.

However, with continued growth of the Hispanic population and the well-documented increases in socio-economic status of Hispanics — e.g., college enrollment by Hispanics has surpassed Whites and Hispanics were the only major ethnic group to see a decline in its poverty rate in 2014 – the financial services industry is paying a lot more attention. As Univision reports, from 2005 to 2010 there was a 210% increase in investment in Spanish-language media by insurance advertisers. More and more financial services firms are publishing research on Hispanics and financial matters, as a 2014 Wells Fargo survey indicated that Hispanic investors have a strong appetite for financial education and more sophisticated investment knowledge.

Unfortunately, there is still a long way to go for financial services in the Hispanic market. The majority of Hispanics — 77% — agree with the statement that, “I wish more financial institutions would offer products and services with Hispanics in mind” (Yankelovich MONITOR Multicultural Study 2010). Moreover, a 2011 AHAA study indicates that while the Financial Services category has increased its Hispanic ad spend by 3% from 2006 to 2010, its allocation of Hispanic marketing spend (as a percentage of its overall revenue) was under 3.65%, putting it into the “laggard” category.

Millennials present an equally complex and fundamental challenge to financial service companies. They have lower incomes, high debt levels (mostly driven by high levels of student loans), and a desire to interact in new ways with companies. However, their well-documented pragmatism makes them an attractive target for financial services such as insurance, banking and investment services. Banks and other financial services firms are understandably paying a lot of attention to Millennials, as they look to evolve their product offerings, marketing and approach to better serve their unique attitudes and beliefs.

It is at the intersection of these two huge trends that we and our partners have published a third wave of the Hispanic Millennial Project research study entitled “Hispanic Millennials & Financials Services.” It provides one of the first glimpses into the attitudes and opinions of Hispanic Millennials concerning money, banking, savings, financial wellbeing and emerging technology for financial services. The Hispanic Millennial segment continues to be one of the most important and misunderstood consumer demographics in the U.S. – and even more so when it comes to financial matters.

Some of the key findings of the research show that finances, money and financial relationships are important topics for Hispanic Millennials:

Finances are an important means to an end for the Hispanic Millennial and not the end in itself.

Younger Hispanics have a pragmatic approach to money and are more responsible when it comes to spending, particularly compared with older Hispanics.

Hispanic Millennials take a conscientious approach to finances in line with post-recessionary consumer trends as well as rooted in Hispanic cultural norms.

The American Dream, particularly in the form of home ownership, is alive among Hispanic Millennials, but the method for realizing that dream is less clear.

The Hispanic Millennial Project Wave 3 research also reveals some very important points of tension characterizing the financial attitudes of Hispanic Millennials. These points of tension include:

Having higher debt levels but yearning to be debt-free

A desire for more education on financial topics while indicating they are proudly self-taught and self-sufficient in terms of finances

A desire for traditional relationship-based banking while embracing alternative digitally-based financial options

The big takeaways for financial service marketers are that Hispanic Millennials have nuanced and sophisticated attitudes about wealth. They are early adopters of financial services technology. And while they continue to live in two worlds when it comes to attitudes towards saving, banking relationships and their role in providing for their families financially, they are eager for more education, support and empathy from financial services companies.

Source; http://www.mediapost.com

#Source:#http://www.mediapost.com

Silvia Tergas was recruited out of college to work for Macy’s, moving from up from sales to the financial division. Though she really enjoyed helping colleagues answer questions about their 401Ks and other financial matters, she never pictured herself working in the world of investments.

“I didn’t see myself reflected in the profession. I saw it as very male-dominated…wearing pinstripes and living in New York,” she said. She didn’t see many Hispanics in the field, either.

It wasn’t until Tergas, who’s of Honduran and Cuban descent, helped her own family manage their retirement that she decided to make a career switch.

Today, the Maryland-based Tergas is a financial planner for Prudential Financial. Investment services companies are identifying a need to have more like her.

With some 53 million Hispanics in the country, the financial sector sees Latinos as a key growth area and is seeking to boost the number of Hispanics working in the financial industry to help draw more Latino families into the savings and investments world.

In 2012, only 5.9 percent of people employed in securities, commodities, funds, trusts and other financial investment sectors were Latino, according to a Bureau of Labor Statistics report from that year.

With some 53 million Hispanics in the country, the financial sector sees Latinos as a key growth area and is seeking to boost the number of Hispanics working in the financial industry.

Additionally, in a recent Prudential Research survey of 1,023 Americans who self-identified as Latinos and who earned over $25,000, just 15 percent said they used a financial adviser. That compares to 30 percent for the population generally.

Increasing the number of Hispanic financial advisers and expanding financial services to more Latino families is not just good business for companies, it is crucial to growing the economy, said Isaac Cohen, president of DC Inverway LLC and an economic consultant who works primarily with Hispanic businesses.

“My experience working with small Latino entrepreneurs is that most created their companies using personal savings, mortgages of family homes, loans from relatives and credit cards,” said Cohen.

Working with Latinos new to the world of 401Ks, IRAs, mutual funds and even simple savings accounts requires some insight into the role family and culture play in their financial decisions, according to Tergas.

"They may be the first or second generation to be at the level that they can talk about more advanced (financial) strategies than just survival and putting kids through school like their parents. There is a lot of ‘new’ here. I put myself in that category,” she explained.

The Prudential survey found 20 percent of Hispanics did not own any financial or insurance products - double that of the general population and African American community. Only 62 percent of Hispanics had savings accounts and 19 percent had IRAs, compared to 81 percent and 39 percent of the general population.

Working with Latinos new to the world of 401Ks, IRAs, mutual funds and even simple savings accounts requires some insight the role family and culture play into their financial decisions.

Even among those earning more than $75,000, the survey found significant disparities between Latinos and the general population. Sixty-six percent of Latinos had savings accounts; 87 percent of the general population did. Thirty four percent of Latinos had IRAs, compared to 52 percent.

Jesse Abercrombie, an Edward Jones financial adviser in Dallas-Fort Worth, said his company is trying to increase the number of Latino and minority financial professionals through their Building Results through Inclusion Driven and Guided Efforts (BRIDGE) program.

“Most corporations understand there is a need for diversity. We realized we needed to have some programs to have the numbers where they should be,” Abercrombie said. “Our goals are to attract quality candidates, support them with our BRIDGE ambassadors, and develop our minority financial advisers in leadership positions. Historically, there wasn’t enough of that going on.”

Jody Agius Vallejo, a sociology professor at the University of Southern California and author of Barrios to Burbs: The Making of the Mexican-American Middle Class, said it’s important to recognize there are class variations within the Latino population. But for many Latinos who did not come from wealth, “there weren’t role models that could mentor and usher upwardly mobile Latinos into these careers.”

Hispanic financial advisers like Tergas stress that understanding the context of family and culture is key to helping a client make important decisions about spending and investments. The Prudential survey found 15 percent said supporting elderly family members is a priority, compared to 6 percent of the general population. Moreover, 42 percent of non-U.S. born Latinos regularly send money to relatives in their home countries. Almost one-third of Hispanics placed importance on funding their own children’s or grandchildren’s education, compared to 18 percent of the general population.

"We have to be able to make that a conversation, understand that a client really struggles with this," Tergas said. "If we don’t respect and break through that and put it out there and really talk about it, we are not going to get too far or too deep with our clients."

Source: http://www.nbcnews.com

Three powerful consumer groups emerging this decade New focal points for food marketers include IndieWomen, Latino Millennials and seniors.

February 10, 2014 1

Originally published on Facts, Figures & the Future (F3).

Women, Latinos and seniors will top the list of the nation’s most influential consumers by the end of this decade, concludes a new Packaged Facts report, Americans in 2020, that examines primary data from Simmons, Experian and the U.S. Census Bureau.

Their socio-economic rise will affect the retail and CPG food worlds. The 2014 food trend predictions issued by SupermarketGuru Phil Lempert already paint a picture of how some of this is taking shape this year.

Let’s start with the influence of women. Packaged Facts predicts they’ll usher in “an era of income equality” with men, because delayed marriages and “a greater propensity to pursue ‘three-letter’ degrees will allow women in the workplace to secure more positions of authority and affluence.”

Already, says Lempert, the “IndieWoman” is emerging in 2014 as a major food influencer. He references almost 31 million females fitting this description – age 27 and older, living alone with no children. When they aren’t busy being social or growing their careers, they also enjoy shopping. According to a Milo.com survey, these women have strong affiliations to brands and love to hunt for bargains. When it comes to their supermarket habits, “IndieWomen” spend $50 billion on food and beverages each year.

Time is of the essence for the “IndieWoman,” he adds. So expect more brands to cater to this powerful consumer who wants to cook, but might not have the time for a homemade meal every night. A ConAgra Foods survey conducted by SupermarketGuru.com, found that 59% of respondents purchased multi-serve frozen meals because of their busy schedules. Because this group is increasingly busy, brands will cater to this demographic through more semi-homemade meals that use fresh-tasting, high-quality ingredients.

Meanwhile, the Latino population is growing in sheer numbers and in education levels. Packaged Facts notes this will add to their spending clout and other influences on retail. The Hispanic population in the U.S. will reach 64 million in 2020 – exceeding African-Americans (42 million), and reaching one-third the size of non-Hispanic whites (199 million). Latino Millennials are attaining higher education, as they diversify vocational sectors and residential communities across the U.S., and set the stage for greater influence in the future.

F3 has written recently about retail opportunities to serve Hispanics. The F3 reports dovetail with another Lempert trend for 2014 – greater popularity of international restaurant flavors at home.

The surge of Latino and Asian populations - along with growing consumer interest in adding more flavor and variety to mealtime - leads to more growth opportunities for South American, Indian and Middle Eastern cuisines, he states. From school cafeterias, to the dining room table, global flavors are sprouting up in places other than restaurants.

Since children today are exposed to global cuisine flavors at earlier ages, they’ll accept international flavors more easily as they grow up with sophisticated palates. Children influence nearly 80% of purchase decisions by families, so expect adults to seek these new flavors for their dinner tables at the supermarket.

At the opposite end of the age spectrum, Boomers and seniors head a “greater abundance of affluent households” and are often loyal consumers that retailers should court, suggests Packaged Facts. By 2020, people older than 65 will account for 17% of the U.S. population (up from 13% in 2010) and account for 42% of total population growth in the decade, the firm says, citing Census data

Source; http://www.supermarketguru.com

College Enrollment Falls for First

Time Since '06

Number of Hispanic Students Hits All-Time High

The number of students pursuing college degrees of all sorts fell last year for the first time since 2006, reversing a multiyear pattern of growth.

Overall undergraduate- and graduate-school enrollment fell by about a half million to 19.9 million in 2012, according to the Census Bureau's annual school-enrollment report released Tuesday.

The report looks at the characteristics of students at all levels of education from nursery to graduate school and tallies the population by age, sex, race, Hispanic origin, and whether the students were born in another country or whose parents were foreign-born.

The overall decline in college enrollment was driven by students age 25 and older. That group fell by 419,000 students from 2011, while enrollment of younger students dropped by 48,000.

However, the number of Hispanic college students hit an all-time high, a milestone that corresponds with an increase in the Hispanic share of the nation's population.

The number of Hispanic students enrolled in college last year rose to 3.4 million, up 447,000 from 2011 to 2012. Hispanics accounted for nearly 22% of students from preschool to adult education in 2012, up from 15.6% a decade earlier.

"This increase in the number of Hispanics enrolled in college can be attributed to the combination of an increase in the adult Hispanic population and their climbing likelihood of being enrolled," Census Bureau statistician Julie Siebens said.

The collegiate student body overall has been getting more diverse: The percentage of all college students who were Hispanic rose to 17% from 11% between 2006 to 2012. The number of black students rose one percentage point to 15%, while non-Hispanic white students declined to 58% from 67%.

The Census Bureau also said foreign-born students or students whose parents were born outside the U.S. made up about a third of all students from preschool through college last year. That was up from 28.4% in 2002.

Fewer parents are sending their children to private schools, the Census Bureau found. In 2012, there were 4.2 million students enrolled in private elementary, middle and high schools, down from 4.8 million in 2005.

Write to Sarah Portlock at [email protected]

A version of this article appeared September 4, 2013, on page A4 in the U.S. edition of The Wall Street Journal, with the headline: College Enrollment Falls For First Time Since '06.

Source: wsj.com

Summer Hit Movie Surprises

Everyone Except Mexicans

September 3, 2013

By JORGE RIVAS

Eugenio Derbez stars in "Instructions Not Included."

Pantelion Films

Industry insiders are calling the Spanish-language film “Instructions Not Included” this season’s big surprise hit, the movie that snuck up on everyone. It’s not such a big surprise to some parts of the American population, though.

The comedy-drama directed by Eugenio Derbez that opened last Friday marks the biggest opening ever for a Spanish-language film in North America. The film took in $10 million and ranked fifth at the box office, even though it only screened in a fraction of the number of screens that played big-studio movies like “The Butler” and “One Direction: This Is Us.”

“Instructions” did make the number one spot on another list: It was highest grossing film per theater over the holiday weekend. “Instructions” averaged a whopping $22,594 per screen, compared to “One Direction,” which only averaged $5,777 per screen.

“Instructions” is also the highest-grossing film in the history of Pantelion Films, a joint venture of Lionsgate and Televisa.

Many moviegoers who wanted to see the film in one of 347 theaters nationwide had to wait in long lines. In South Gate, a predominantly Mexican-American neighborhood outside of Los Angeles, people waited an hour in line to secure tickets to the sold-out shows. The film is playing in about 60 screens in Los Angeles, home to the largest share of the United States’ Mexican population.

The film, which includes some English-language lines and subtitles, seems to be resonating with other groups too. The film did “phenomenally well” in places like New York City, Miami and Minnesota, according to the film’s distributor.

Derbez, a legendary Mexican actor with a career that spans more than three decades, wrote, directed and produced "Instructions."

“People have grown one with Eugenio Derbez and he knows his audience,” Edward Allen, Pantelion’s chief operating officer, told Fusion. “He was able to tailor this film to his audience -- which I’m going to say includes most people who have watched Univision in the last 10 years."

“People have taken their abuelitas [or] their moms, or moms are taking teenage sons to see the film,” Allen added. “Everyone is participating and it really goes across the entire spectrum of the family.”

“Instructions Not Included” follows a bachelor (played by Derbez) in Acapulco, who has to get his life together after an ex-girlfriend drops by and leaves a baby girl with him. Years later, the mother reappears to take the girl back.

The two-hour film has one foot planted in Mexico and the other in the U.S., an experience many Latinos have experienced. The movie also deals with family separation, another issue many Latinos are intimately familiar with.

One study estimates there are at least 5,100 children in foster care around the U.S. because their parents have been detained or deported by immigration officials, according to the Applied Research Center.

“Immigration is certainly a big topic, but people want to aspire, they don’t often want to be reminded of their status,” Allen said. Immigration is "one aspect of the movie, when the protagonist comes to the U.S. looking for the girl’s mom -- but he ends up doing well here, economically speaking, and you’re never reminded of his status as an immigrant. That’s secondary."

“The theme that is front and center in the film is about a father’s love for his child,” Allen added.

Latinos in the U.S. are loyal moviegoers, even though they still don’t see themselves in leading roles on screen, recent Nielsen study found.

That same study found going to the movie theater seems to carry a particularly positive cultural significance for Latinos. Members of that group were considerably more likely than non-Latinos to view movie-watching as a way to spend time with their family and friends.

The last time a Latino actor won a best actor Academy Award was in 1950, when Jose Ferrer took the prize for his role in “Cyrano de Bergerac.” No Latina actress has ever won an Oscar for best actress.

Given the size of the Latino movie audience and the popularity of films like “Instructions Not Included,” that’s statistically likely to change soon.

Source: abcnews.com

Research: Mexico: Televisa Audience share reachs 43.4%, Pay TV 27.4%

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By Editorial Staff @portada_online Published: 08/23/2013

In terms of Mexico´s audience share, Televisa ranked first having a share of 43.4%, Pay TV placed second with a share of audience of 27.4% and TV Azteca, came in third with 19.5% of the share, according to Nielsen-IBOPE.

This data derive from the annual Establishment Survey study (E.S.) the company conducts. In Mexico this study is based on 23,040 household surveys conducted in 28 cities, to evaluate key market trends.

The study also finds that during the past three years Pay TV’s audience share grew 53%. Pay TV Audience Share Reachs 27.4% in 2013.

Viewed from another perspective, in Mexico for every 100 people with a TV on en the 28 cities measured by Nielsen-IBOPE, 43 people are watching a free TV Televisa channel (2, 5, 9), 27 are watching a Pay TV channel, 19 are watching a TV Azteca channel (7 y 13) and 9 are tuned-in to a local channel.

The new data also revealed that Pay TV leads among a few targets:

People 18-49 ABC+C with 43.7% audience share.

Children 4-12 ABC+C with 49.9% audience share.

Teens 13-18 ABC+C with 40.2% audience share.

Men 19-44 ABC+C with 49.2% audience share.

And among others it places second, for instance: People 19+ without DE with 32.2% audience share, Homemakers 25-55 without DE 31.6% audience share, Women 18-45 without DE 30.9% audience share, Homemakers 19-45 CD+ 25.9% audience share.

Federico Baumgartner, Country Manager, LAMAC México says: “we’re very pleased wth the release of the 2013 Nielsen- IBOPE universes, as the TV advertising industry in Mexico (approximately valued at US$3,000 million) had been working for the past 6 months with data that was totally outdated, however as of June 20th the audience data is current. This will make a difference when planning media in our country”.

Source: LAMAC - IBOPE Media, data Mexico. Average share by target jan-may 2013. Total day, Monday-sunday. Share calculated manually based on rating, excluding Videogames, VHS y others. Targets include Guest Viewers except the Homemakers.

Source: portada-online.com

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Hollywood Takes Spanish Lessons as Latinos Stream to the Movies -

LOS ANGELES—In a small room on the Paramount Pictures lot here, postproduction work is under way on a movie that sounds as derivative as they come: the fourth sequel to "Paranormal Activity."

But flickering on an editor's monitor are the types of scenes rarely seen in Hollywood: Characters are shown visiting botanicas—storefronts where witchcraft is practiced. One woman tries to cure her possessed grandson by ritualistically rubbing a raw egg on him. Much of the dialogue is in Spanish, with no subtitles.

Watch clips from some of the 2013 movies most popular with Hispanic audiences.

The four previous "Paranormal Activity" films grossed a total of more than $350 million, thanks in large part to packed theaters in Hispanic neighborhoods. Now, with the next installment, "Paranormal Activity: The Marked Ones," some of the series' most fervent fans will see people who look and speak like them on screen.

The bilingual film, from Viacom Inc.'s VIAB -0.23% Paramount division, marks the first time a big studio has taken a mainstream franchise and spun it into one about Latino characters and culture.

Getty Images

Movies by director Robert Rodriguez, shown here, have been buoyed by Latinos.

"Reflecting a regular Latino family, where some people speak only Spanish and some don't know any and some are in between is so real," says the movie's director, Christopher Landon, a self-described "gringo." But it was "something I felt I hadn't really seen in a movie."

In the past few years, Hispanics have become some of Hollywood's best customers. Though 15% of Americans over the age of 12 are Latino, they accounted for 25% of all movie tickets sold in the U.S. in 2012, according to a Nielsen Co. study. The average Hispanic moviegoer went to nearly 10 films in the year, compared with just over six for whites, African-Americans, and Asian-Americans.

Now, the Latino fan base is beginning to change the way Hollywood spends its money, from production to marketing and even theater renovations.

WireImage

Génesis Rodríguez had a role written into 'Identity Thief' to appeal to Hispanics.

The new industry focus comes at a critical time for the movie business, which is desperate for good news in the domestic market. Attendance at theaters has declined 10% in the past decade, according to industry data, while home entertainment spending is off more than 17% from its 2004 peak.

"The U.S. is a mature theatrical market," says John Fithian, chief executive of the National Association of Theatre Owners trade group. "But unlike any other, we have a growing population and the fastest-growing part of that population, Hispanics, also happen to be the most enthusiastic moviegoers. That's good news for the future of our business."

While reasons for the disparity in viewership aren't clear, Nielsen's study offers a few clues. Hispanics are significantly more likely than members of other ethnic groups to go to the movies in groups of four or more, Nielsen found. They are also nearly twice as likely as other ethnic groups to watch a movie with extended-family members.

"It's like family time—we're together, but we can escape," said 43-year-old Adrian Carazco after watching "Iron Man 3" on its opening weekend in South Gate, Calif. He attended with his brother Julio and their children.

Robert Rodriguez, the director of "Spy Kids" and "Sin City" who was one of the first Hispanic filmmakers to gain Hollywood's attention thanks to his 1992 independent hit "El Mariachi," says movies were an integral part of his childhood in San Antonio. "We had a family of 10 kids, and we would all march into the theater together and enjoy the communal experience of it," he recalls.

Latino viewers are largely credited with the success of the "Fast & Furious" franchise, which features an unusually diverse cast and was originally set in predominantly Hispanic East Los Angeles. Over Memorial Day weekend, "Fast & Furious 6" opened at No. 1 at the box office, taking in $117 million—more than the holiday's two other new films combined. Thirty-three percent of ticket buyers were Hispanic, according to exit-poll data from distributor Universal Pictures—higher than any other group of attendees.

With "Paranormal Activity: The Marked Ones," which is expected to have its release in January, Paramount is betting it can retain the appeal of its most profitable series while energizing a passionate fan base.

Adam Goodman, president of Paramount's film group, said the studio's decision to make the fifth "Paranormal" was inspired by interviews with Hispanic fans in focus groups.

Mr. Goodman said in an email that the movie "is set in a multicultural and bilingual world that we believe will resonate in an authentic way for Hispanic and non-Hispanic audiences alike." (The Spanish dialogue won't be translated when it is distributed globally.)

While the number of Latino-themed projects is growing, it remains small, as does the number of Hispanic actors in leading roles. "Fast & Furious 6," which featured Michelle Rodriguez and Gina Carano, and July's animated "Turbo," whose voice-over cast included Michael Peña and Luis Guzmán, are exceptions.

Several movies with a heavy Latino slant are currently in the works at studios. Will and Jada Pinkett Smith's production company, Overbrook Entertainment, is developing two such projects in which Ms. Pinkett Smith would star. One is "Scribe," a bilingual remake of a Colombian film about a reporter; another is "Salsa," which would also feature actor William Levy, from the Mexican telenovela "Triunfo del Amor."

Independent studio Relativity Media LLC is negotiating to acquire rights to a biopic of Colombian drug kingpin Pablo Escobar, starring Guatemalan-born actor and singer Oscar Isaac.

According to the Nielsen study, action-adventure movies are the most popular with Hispanics, while horror and family-friendly animation also rate highly.

Other types of films don't necessarily cut it.

"Movies based on books or old characters like 'Harry Potter,' 'Twilight' and James Bond don't do well here," says Mohamed Shakhshir, general manager of Regal Entertainment Group's Edwards Theaters South Gate Stadium 20 multiplex, which draws primarily Hispanic crowds.

Theater owners—whose screening choices significantly impact a movie's success—are paying close attention to the growing audience. AMC Entertainment Holdings Inc., the second-largest cinema chain in the U.S. by locations, uses local Hispanic-population statistics as one of its criteria when selecting theaters for multimillion-dollar renovations. One such venue, with new seats, screens and a bar, is currently under way in San Antonio.

"Your certainty of return on your investment is greater in a Hispanic-populated area than anywhere else," says AMC Chief Executive Gerry Lopez, whose company is owned by China's Dalian Wanda Group Corp.

The industry is tinkering with different ways to attract Latino filmgoers. Some are betting that Hispanic actors will draw loyal crowds; some are relying on bankable Anglo stars for Spanish-language movies. Then there's Paramount's "Paranormal" strategy—taking a known franchise and giving it an entirely new cultural spin.

Making movies specifically tailored to Latinos is tricky, and some believe the strategy can backfire. "Yes, Latinos are avid moviegoers, but we are savvy and hate being pandered to," says Umberto González, a writer for the film news and reviews website latino-review.com. Rather than movies about Latino culture, Mr. González says, his readers prefer action movies in which Hispanics are integral to the story line—and are also prominently featured in advertisements.

As of yet, no formula is a shoo-in. And to be sure, studio executives who have hoped that Hispanic-centric films can cross over to a broader market have seen a few disappointments.

Mr. Rodriguez's 2010 movie "Machete," about a former Mexican federale seeking revenge on an anti-immigrant Texas politician, drew a disproportionately Hispanic audience, according to exit polls. Still, the film grossed a modest $26.6 million in 2010. The director says DVD sales were strong, and the sequel to be released in October will be "bigger and more mainstream." New cast members not in the original include Charlie Sheen, Mel Gibson, Antonio Banderas and Lady Gaga.

Pantelion Films is a joint venture founded in 2010 by Lions Gate Entertainment Corp. and Mexico's Grupo Televisa that makes movies for the Hispanic audience, some of which are in Spanish. Its most successful release since launching two years ago, "Case de mi Padre" starring Will Ferrell, grossed only $5.9 million.

The company's releases have all been inexpensive, however, and Pantelion is now focusing on "films that incorporate Latino talent and Latino themes but have universal appeal and can resonate with a broad commercial audience," says Chief Executive Paul Presburger.

The ranks of Hollywood's overwhelmingly white executive suites are beginning to recognize the publicity value of actors popular in the Hispanic community. For its February comedy "Identity Thief," Universal's casting department worked with multicultural marketing executives to select Génesis Rodríguez, a telenovela actress and the daughter of a popular Venezuelan singer, for a role not originally written for a Latina. The studio organized a press day for Spanish-language media around her.

Studios typically spend about 5% of marketing budgets on Spanish-language media, up from about 1% a decade ago. For lower-budget movies aimed primarily at Latino audiences, such as the horror hit "Mama," produced by Guillermo Del Toro and released in January, that amount can double.

To promote the recent science fiction movie "After Earth," Mr. Smith and his son and co-star Jaden appeared on two Univision programs, where the older actor conducted an interview in his passable Spanish. Vin Diesel and Michelle Rodriguez, promoting "Fast & Furious 6," presented an award at the Billboard Latin Music Awards, which aired on Telemundo in April. They were the first movie stars to hand out an award on the show, according to a spokeswoman for the Comcast CMCSA -2.21% Corp.-owned Spanish language network.

Hispanics are more likely than other groups to use smartphones to look up movie information, according to the Nielsen study. Homing in on that habit, marketing firm ThinkLatino worked with Paramount to create an app for the horror film "The Devil Inside." The app rated users to see if they are "possessed."

Some studios have invested heavily in building out Latino marketing capabilities in-house. "We support 75% to 80% of our movies with Hispanic outreach," says Fabian Castro, vice president of multicultural marketing for Comcast's Universal. Certain films, such as the comedy "Ted" featured no Hispanic actors or obvious hooks. But Mr. Castro's group created material focusing on physical comedy scenes to air on Spanish language TV networks, where slapstick comedy is a staple. For younger Latinos, Universal produced online videos in which an actor wished his teddy bear "Carlito" would come to life like the movie's title character.

All the attention on the Latino audience is a far cry from when Santiago Pozo first noticed Hispanics' taste for moviegoing in 1987 while an intern at Universal. As part of a fifth-anniversary rerelease of "E.T.," he persuaded his bosses to play a Spanish-language print from Mexico in downtown Los Angeles, which is heavily Hispanic. It turned out to be a gigantic hit.

The next year, in 1988, he started a consulting firm, Arenas Group, that markets entertainment to Hispanics. At first, the studios' interest was minimal. "Spanish language campaigns used to consist of translating the press kit, bringing two Latino [reporters] to the junket, and then you could check the box," recalls Mr. Pozo. "For many years, that's how I made a living."

Today, insiders estimate more than 20 consulting firms work with studios on Hispanic advertising and publicity campaigns.

In some cases they help design specific material, as Arenas did for Walt Disney Co.'s "Toy Story 3" with a commercial highlighting a scene in which the Buzz Lightyear character speaks Spanish. In the movie, the toy, voiced by Tim Allen, is malfunctioning. But the voice-over had a newly tuned message: "This summer Buzz is back with an upgrade in Spanish."

Corrections & Amplifications Justin Lin directed "Fast & Furious 6." A caption in an earlier version of this article incorrectly identified Robert Rodriguez as the director of the film.

Source: wsj.com

Why Aren't Brands Making More Apps

for the Hispanic Market?

A Survey Finds Few Spanish-Language Apps for a

Highly Engaged Group

Hispanics are the demographic most engaged with mobile devices, yet far too many feel that brands aren't doing enough to make their apps accessible to Spanish speakers.

In a recent survey that our agency commissioned by the research agency YouGov, 45% of fluent Spanish speakers aged 18-34 said they felt this way. Among all the 500 Hispanics polled, nearly one out of four (22%) said that they would be much more interested in learning about a brand and its offerings if that brand offered an app in Spanish.

It's actually a large base of Hispanics that speak Spanish fluently . YouGov estimates that 45 of the 52 million Hispanics in the United States (86.5%) speak Spanish as a first or second language. And, according to the Nielsen Mobile Hispanic Insights, Hispanics are 28 percent more likely to own a smartphone than non-Hispanics. Hispanics over-index on mobile activity, especially when it comes to time spent on mobile apps.

To quantify the gap between Hispanic engagement and brand support for Spanish-language apps, we researched over 1,300 iOS apps from the top 50 of ClickZ's top 100 most valuable brands report. We analyzed several variables, including the platform (iPhone, iPad or Universal) and listed languages. We manually downloaded every mobile app offered by ClickZ's top 50 brands, to verify which offered a Spanish translation.

Although we suspected that U.S. Spanish speakers are underserved, we were still surprised by our findings. Of the 1,311 of ClickZ's top 50 brands' mobile apps surveyed, only 369 (28 percent) were translated into Spanish.

We found a clustering effect around industries. For example, automotive skewed far below average, with BMW, Toyota and Honda offering less than 10 percent of their mobile apps in Spanish. Even more unexpected, some of the most well known and common household names such as McDonald's, Pepsi, Budweiser, Kraft, Gillette and Visa offer no Spanish translations for any of their apps. McDonald's did translate its app into French right before adding Canadian support (Canadian federal laws require food labels to be bilingual).

A few top-50 brands are excelling. Canon is translating every app not only into Spanish, but at least five other languages as well. SAP and Samsung translated 71 percent (67 of 95) and 64 percent (14 of 22) of their apps, respectively. Google offers at least 20 different language translations, including Spanish, for 68 percent (19 of 28) of its iOS apps. Some Google apps not yet translated include: Schemer, Google Catalogs, Google Fiber and Google Offers for Business and (most curiously) Google Voice.

These brands set the bar for trying to excel in the mobile space by engaging users in their native language. By translating their apps, they create a more profound and engaging experience that builds brand loyalty.

source: http://adage.com

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