The Hispanic Market is Set to Soar

Today in Ad Week is one of the best and most complete analyses of the situation of the Hispanic market in the US I have ever read, and it is really a wonderful picture of the situation of US companies targeting US Hispanics and how Ad Agencies are taking advantage of a unique opportunities to target this incredible market.

Ad Week states, “Hispanics now have about $863 billion in discretionary annual income, more than any other minority group in the country.” And they have the word of market key players like Ingrid Otero-Smart, CEO of Interpublic Group’s Casanova Pendrill who says that “we have 15 percent of the market but only 5 percent of the marketing dollars.” Hispanic Americans continue to grow in number at a rate four times that of the general population, with the 2010 Census expected to show their total rising to nearly 50 million, from 38 million in 2000. As a result, agencies that market to this segment are finding themselves in a strong position, armed with the skills and techniques to take on general assignments from big-name clients. Meanwhile, in a tight business environment, general agencies are starting to compete for work previously reserved for specialist shops. Language – which is an issue I have always read and research about – does remain an important factor, says Ad Week’s article. “Some 44 percent of Hispanic consumers say, at home, they speak Spanish only or more often than English; 25 percent say they are equally bilingual; and 31 percent use English only or more often than Spanish, according to research from Synovate and Nielsen.” Ad Week’s article also cites David Lawenda, Univision’s president, who thinks that “we’re seeing a tipping point in Spanish-language media. In our recently completed upfront, we saw shares shifting [from the general market] as we brought in new brands. The implications of the 2010 Census are huge. Marketers don’t necessarily know the spending power of the U.S. Hispanic population. Their purchasing power makes them equivalent to the 15th-largest consumer marketplace in the world.”

Another phrase that caught my attention is this: “In the 2010 Census, we’ll see dramatic growth east of the Mississippi in the Southeast corridor. This is going to be a profound game changer,” says Don Browne, president of NBC Universal’s Telemundo Spanish-language broadcast operations.

You can read the complete article here.

By Lara Bersano