While many major brands in the USA are missing a large multicultural opportunity, many other brands aren't, as Hispanic television and print advertising spending grew by 4.7% in 2004 compared to 2003, according to the Association of Hispanic Advertising Agencies (AHAA).
The Hispanic Media Spend study, commissioned by the Hispanic Advertising Agencies Foundation (HAAF), using data from TNS Media Intelligence and Market Development, found that the 4.7% increase in Hispanic spending contrasts to the overall growth in total television and print media spending which increased by 10.5% from 2003.
Opportunity for loyalty
But despite this growth in Hispanic media spend, one-third of the top 250 national advertisers still do not appear among the top 250 Hispanic advertisers. While some marketers, such as Sears, McDonalds, Procter & Gamble, and Johnson & Johnson, recognise the brand loyalty associated with reaching out to Hispanic consumers, while others still appear to be less active in this area.
HAAF chairman, Carl Kravetz, said: "Hispanic marketing is flourishing. Yet still more than 100 of the top 250 television and print advertisers are allocating less than 1% of their total budget in these media to reaching the US Hispanic consumer."
Expansive growth
According to the AHAA, US Hispanic population growth is outpacing overall growth in every age demographic. In 2004, Hispanic buying power reached US$686 billion and is forecast to rise to US$992 billion by 2009 (representing 9% of the total US consumer buying power). The demographic's buying power is expected to increase at a compound annual growth rate (CAGR) of 8.7% until 2007, compared to the forecast non-Hispanic CAGR of 4.8%.
According to Loretta H. Adams, founder and president of TNS Market Development (the multicultural arm of TNS), "The continued growth in Hispanic media spend is encouraging. However, the stronger growth in general market media spend suggests that US marketers have not yet aligned their Hispanic Media Share with the fact that over 10% of American adults speak Spanish at home. This provides marketers with a significant opportunity to further support their brands."
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