Archive for October, 2008

Apparently, there’s no better time to market to Hispanic consumers in the United States than right now. That’s according to a recent article in Adweek’s “Marketing y Medios,” entitled, “The General Market is Tanking? No problema.”

The primary arguments in support of this assertion: The Hispanic population is still growing – projected to reach 43.4 million next year – and the media targeting Hispanics are cheaper than “traditional” outlets.

While many mainstream media outlets – and the economy in general – are conducting massive layoffs due to budget cuts and decreased consumption, Hispanic marketing executives are staying calm because their market is located somewhere outside of the chaos.

According to the article, the categories that are still going strong are primarily nondiscretionary: wireless, food and cars; three things that are of essential value. In fact, the Hispanic car-buying market has grown by 59%, while the non-Hispanic market has decreased by 32%. Those are some pretty telling numbers.

A statistic cited in the article, provided by Nielsen Monitor-Plus, showed that as of June of this year, spending across all Spanish-language media had increased by 1.5% over the same period last year. Now compare that number to a 1.4% decrease for the same period in the general market.

Where many clients – especially domestic automakers and financial institutions – are slashing advertising budgets, others are choosing to invest more in their marketing efforts, essentially balancing the books. However, this doesn’t mean that agencies are immune to the effects of the economy.

But, as with most other markets, it is difficult to project beyond the fourth quarter of this year. Among possible factors contributing to a decline similar to that of the general economy: the results of the election.

According to the article, because budgets at Hispanic marketing agencies are much smaller, the impact of a significant change in the current market will be felt much sooner. However, Hector Orci, CEO of La Agencia de Orci in Los Angeles, said, “ Being Hispanic means you’re optimistic.”

Perhaps the mainstream media can learn a thing or two from this example.