Posts Tagged ‘Advertising Age’

img_2577.jpgThe Nielsen Company – the one that brings us television ratings – has released a new report on consumers’ preparedness to switch to digital when it becomes the only television format next year.

On Feb. 18, 2009, what is being hailed as the most significant development in television history will take place when the medium will become all-digital. And according to Nielsen’s report, 13 million households are unprepared for the change. Cable and satellite owners are safe; so are people who own digital consoles; however, anyone with an analog-only set will need to purchase a converter if they wish to watch their stories.

What’s significant about these findings is that they show a higher lack of preparedness in Hispanic and Black households. The data show that 17.3 percent of the U.S. Hispanic population is completely unprepared, and 26.2 percent have at least one television set that will be affected.

What does this mean for public relations practitioners and advertisers who want to reach the Hispanic market? They may have to reinvent the wheel (again).

According to Advertising Age’s 2007 Hispanic Fact Pack, in 2006, approximately $2.42 billion (or 64.3 percent of total ad spending in Latino markets) was spent on television marketing. The next largest medium in terms of ad spending in Latino markets was radio, which accounted for $726 million (or 19.3 percent) in 2006.

If the majority of ad spending directed at the Latino community is spent on television, and Latino consumers across the country are unprepared for the change to an all-digital format, it will be difficult for marketers to reach their target audience.

Strategies and tactics will have to be rethought, and this may be the opportunity for public relations practitioners to utilize social media to make a legitimate impact on Latino consumers.

Perhaps things will change before Feb. 18, 2009, but how? It would benefit the people who want to reach the Latino community with their messages to address this situation proactively.


img_2300.jpg According to a recent article in Brandweek, Pepsi is throwing some huge private parties for young Latinos, scheduled to coincide with major media events like the Latin Grammys. The event is seen as a way to interact with young Latino consumers in a relevant way. But will this campaign be effective?

Called the “Blue Carpet Bash,” it will target 18 to 34 year olds, the most sought after market segment for many companies. In 2006, Pepsi spent $950 million on advertising to Latinos. With figures like these, it’s no wonder that Pepsi is ranked among the top ten advertisers to the Hispanic market each year by Advertising Age.

Microsoft is also rumored to be in talks regarding advertising at the event.

I think this event, if executed successfully, could be a huge opportunity for Pepsi, as well as a model for other companies who heavily market to the Latino community. By targeting young consumers, Pepsi is creating brand awareness among people who will be increasing their spending power and having kids in the coming years.

This event will really serve as the model for future efforts to market to Latino youth. The potential to create change in the industry as a result of this campaign is great, and I think it’s coming at the perfect time culturally. We in the U.S. are at a point where our national identity is shifting in noticeable ways and, by making efforts to change, corporate America is leading the way in tackling some tough issues.

It will be interesting to see where this goes, and if the Blue Carpet will replace the red carpet in the minds of young Latinos in the U.S.