Hispanic Advertising

Archive for August, 2009

Univision Advertising

by Elvis Arias on Aug.31, 2009, under News

Spanish-language broadcasting giant Univision Communications Inc. was sold for $13.7 billion three years ago, the highly leveraged deal was, in the words of one veteran banker, “priced for perfection.”, this according to TheLedger.com

Given the $10 billion in debt the buyers were assuming, the slightest hiccup in the company’s financial performance would have a cascading negative effect.

The buyers, a consortium of investors including entertainment mogul Haim Saban, were counting on several factors to justify the steep purchase price: The nation’s exploding Hispanic population and the popularity of Spanish-language programming, coupled with the promise of robust advertising growth. They expected to hold the assets for a few years then sell at a tidy profit.

But it’s not a perfect world.

In the two years since the buyout, the U.S. economy has collapsed, dragging down advertising to media companies. Adding to the economic distress, Univision has been mired in a costly legal battle with its primary programming partner. The big payday for Univision’s owners, which include well-heeled private equity companies, seems far less certain. Instead of riding a high wave to easy profits, Univision executives have been working furiously to dig out of its hole.

Univision Advertising Market

During the past year, the broadcaster has written down assets by $5.3 billion, and some industry insiders now believe the nation’s largest Spanish-language media company is worth closer to $9 billion – slightly less than what it owes. In January, it settled a nagging lawsuit brought by its longtime programming partner, Grupo Televisa of Mexico, which had threatened to strip Univision of its most popular and profitable shows. The resolution guaranteed Univision the right to broadcast Televisa’s hugely popular soap operas, including “Cuidado con el Angel” (Be Careful With the Angel), through 2017.

Two weeks ago, Univision bought breathing room by refinancing $500 million in debt, pushing back the due date by three years to 2014. The extension means Univision no longer has to worry about burning through its cash in the next two years.

And Univision achieved one of its highest priorities – getting cable and satellite TV operators to pay the company to carry its programming. The agreements with Time Warner Cable Inc., DirecTV Corp., AT&T Inc. and others should bring Univision $175 million in 2009, and as much as $350 million annually by 2014.

Hispanic Advertising consultant, Elvis Arias, offers reviewal of marketing campaigns directed via the Univision venue.

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Hispanic TV Ad

by Elvis Arias on Aug.31, 2009, under News

Hispanic Internet Marketing is not the only advertising segment on an uptrend. According to Media Daily News, Spanish-language TV advertising posted a slim 3% gain in 2008 versus 2007, per a new Nielsen study, which was about average across how other media performed a year ago.Looking at the top 10 categories, however, TV advertising among Spanish-language TV programmers performed much better: an 8% gain to $2.906.1 billion. Of the bigger categories, pharmaceuticals posted a 32% gain to $663.4 million, which took the lead as the biggest TV ad group over a fast-declining automotive segment. Direct-response advertising also turned upward, 21% to $218 million. Satellite communication services rose 124% to $135.7 million.

But Spanish-language TV programmers were not immune from overall TV marketer issues. For example, automotive spending was down 20% to $530.1 million. Automotive dealers were down as well — 25% — to $126.9 million. Nielsen says the dollar shift followed a similar rise in audience size for Univision and Telemundo. Both networks gained 11% in viewers versus 2007, and had a 6% rise among adult 18-49 prime-time viewers.

More helpful is that TV commercials are continuing to be developed specifically for Spanish-language television. The media research company says commercials targeting the Hispanic market on average outperform those that are translated from general market TV spots — with 16% higher brand recall results and 22% better message recall. Overall, Spanish-language TV ads achieved a 35% brand recall score versus 27% for English-language ads.

Have your Hispanic focused TV Ad reviewed by Hispanic Advertising consultant Elvis Arias before it airs ensuring proper language and keyword use.

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Hispanic Consumer

by Elvis Arias on Aug.28, 2009, under News

Did you know that Hispanics are less impacted by the recession, and their overall viewpoint about the state of our economy is more optimistic? They are also more avid shoppers and have a tendency to react better to TV advertising than the general population. The Hispanic consumer is able to rebound quicker to trends than their non-Hispanic counterparts. In other words, they are prime prospects in today’s troubled marketplace.

Years ago in junk mail, we discovered that many Spanish-speaking potential customers wanted to be contacted in their native language, so linguists were hired in the copy-writing field to translate junk mail offers into Spanish. It worked gangbusters, and the concept has once again been confirmed by a study done on Hispanics for Univision Communications, the premier Spanish-language media company in the U.S.

Here are some figures you probably didn’t know. Just 45% of Hispanics carry credit cards compared to 71 percent for non-Hispanics. And even a lesser amount take out loans, only 34% versus 53% for non-Hispanics. They shop more frequently than non-Hispanics, take more brand prescriptions, and pay more attention to advertising. Univision says that marketers have determined recently that Hispanic sales have outdone non-Hispanic sales.

The buying power of the Hispanic community is growing at a rate 50 percent faster than non-Hispanic, and Univision predicts it will hit $1 trillion by 2010. Some of the reasons might be that Hispanics are more optimistic about their finances by almost 10 percentage points, the same margin being optimistic about the economy. About twice as many Hispanics rent their home compared to non-Hispanic, therefore, less are affected by the wave of foreclosures.

To attract the Hispanic community into your business review the Spanish Internet marketing services offered by Elvis Arias, Hispanic Advertising Consultant.

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Hispanic News Tidbits

by Elvis Arias on Aug.12, 2009, under News

A recent news article in the New York Times highlights the new economy that is emerging which builds on the economic relationship between the countries. Exports and imports between Mexico and the United States have grown rapidly in the last decade, to close to $400 billion annually. And now trade is taking on new complexity, with operations in Southern California sometimes serving as Mexico’s link to the global economy.

Hispanic News

Meanwhile, the slow American economy and moves to control illegal immigration with increased border patrols and raids on domestic job sites have reduced migration from Mexico. So remittances to families in Mexico from people working in the United States have declined sharply in the last year. But the Latino population in the United States has grown as a result of children born to immigrants in recent decades. That Hispanic population is 45 million, according to the Pew Hispanic Center.

This is great news since more online commerce with Mexico and other shifts in the marketplace, said Hector Orci, co-founder of La Agencia de Orci, an advertising agency in Los Angeles. “For example, Liverpool department stores in Mexico sell online to people here and the goods can be delivered to their mother living in Mexico,” Mr. Orci said.

Did you find this Hispanic news tidbit? Looking to promote your business targeting the Hispanic segment? Visit Hispanic Advertising for a free consultation.

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Hispanic Market Barometer

by Elvis Arias on Aug.12, 2009, under News

The numbers don’t lie as more than 30% of the Hispanic population feels optimistic about their finances for the upcoming year. This news definetly helps build the confidence of our clients who have found value advertising to the Hispanic community. Experian/SimmonsSM partnered with Univision for the study and found that the Hispanic sector was about 11% higher consumer confidence rating than other demographics.

Other interesting findings from the report include:

  • 45% of  the Hispanic population uses credit cards
  • 44% of  the Hispanic demographic are more likely (than non-Hispanics) to pay bills with cash
  • Hispanics are nearly twice as likely to rent a home as own a home
  • Hispanics shop more frequently than the non- Hispanic demographic

“The volatility of the current recessionary economy has created a need for more current week-by-week data, which is essential to effectively capture changes in consumer behavior and purchasing patterns,” said Ceril Shagrin, executive vice president, Corporate Research, Univision Communications Inc. “By analyzing weekly data versus bi-annual or quarterly, Experian® SimmonsSM was able to provide a more precise representation of overall consumer attitudes, which reveals the resilience of the Hispanic consumer in this economy.” Cons

Overall, the US population continues to be optimistic about the economic future, however it is interesting that the Hispanic demographic is pushing forward faster than other demographic populations. in this economy.”

Click here if you want to advertise to the Hispanic population and attract internet traffic to your websites

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