Oct 2008 Marketing Research Association Hispanic/Latino Event

1. Hispanic Marketing
Past, Present, Future

6. 66.1%
70.0%
60.0%
50.0%
40.0%
30.0%
14.5%
9.0%
20.0% 6.4%
4.0%
10.0%
0.0%
Mexico Central Puerto Cuba Other
America Rico

7. 16%
14%
14% 12%
11%
12% 11%
10%
10% 8% 9%
7%
8% 6%
6%
6%
4%
3%
4%
2%
0%
P12- 18- 21- 25- 30- 35- 40- 45- 50- 55- 60- 65+
17 20 24 29 34 39 44 49 54 59 64

8. Spanish Usage Remains Strong
% Among 2nd Generation Groups Who Speak Spanish
98% 99% 99%
96%
87%
86%
81%
79%
70%
64% 68%
57%
Speaks Spanish With Parents With Friends
Mexican Cuban Columbian Nicaraguan
Source: “Legacies” by A. Portes & R. Rumbaut, Children of Immigrants Longitudinal Study, 1996, as cited by New American Dimensions, 2003

9. Spanish
Spanish
All Eng 2%
Language English
Equally
1st learned 89%
Preference
Usage Span/Eng
Preferred 58%
14%
25%
At home 73%
Mostly
At work 64%
Bilingual
Spanish
28%
24%
All
Spanish
Spanish
39% Preference
58%
All Span Most Equally M All
21% Span Spanish/English Eng. Eng.
15% 42% 8%
10%
Hispanic Media
Usage
Source: Meneses “Ask San Diego” 2006, Scarborough 2006

10. Effectiveness of Spanish Ads
1994 2000
All Hispanics
Increasing Awareness +40% +61%
Message Comprehension +56% +57%
Persuasion Score Index + 522 +450
Bilinguals
Increasing Awareness +46% +61%
Message Comprehension +31% +36%
Persuasion Score Index +400 +336
Teens
Increasing Awareness - +40%
Message Comprehension - +16%
Persuasion Score Index -+220
Source: “Spanish vs. English Advertising Effectiveness Among Hispanics,” The Roslow Group 1994, 2000

11. General Market Hispanic Market
Individual - “me” Collective - “group”
 
Look for quality of life Sacrifice for kids
 
Equality Hierarchy
 
Control of destiny Fatalism
 
Innovation Tradition
 
Efficient Personal
 
Accomplishment Enlightenment
 
Assertive Accommodating
 

12. 70
70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
2003 2007 2003 2007
Food & Beverage Music & Songs

13. Hispanics Watch Ads More
Enjoy Looking at or Listening
to Advertising
60
50
40
30
20
10
0
Source: Yankelovich 2007/2008 MONITOR Multicultural Marketing Study , as quoted in HMW 9/24/07
(national study)

16. Wall Street Journal, Oct 3, 2008

12 million immigrants are in the U.S. illegally.

But a new study by the Pew Hispanic Center,
an independent think tank in Washington,
D.C., estimates that annual undocumented
arrivals from Mexico are down about 25% this
year from 2005, to about 350,000.

17. Bush administration crackdown on illegal

immigration, with factory raids that led to
deportations and even criminal charges for
thousands of undocumented workers.
Weakened economy has dealt a blow to these

workers, many of them employed in the
slumping construction sector.

18. Flows of money to Latin America from U.S.-

based workers have slowed for the first time
since the Inter-American Development Bank
began tracking remittances in 2000.
The rate of growth in remittances to

Guatemala has slowed in each of the past
four quarters. The bank estimates that in the
last quarter of this year, remittances will fall
for the first time.

20. How many people in Latin America currently

subscribe to mobile services and what is the
size of the market?
There are approximately 286 million mobile

subscribers in over a dozen Latin American
countries doing about a billion dollars of
business.

21. There are approximately 30 million Hispanic

mobile subscribers in the US.
Mobile content market for US Hispanics over

$100 million in ‘07
Mobile divisions distribute content in the US

via premium SMS advertised in TV, web,
magazines and radio.
Source: VeriSign, 2007


22. Wallpapers

Ringtones

Games

Information services

Ads/advertorials ex. Diet info, contests

Interactive polling

Customer service


23. Worldwide: There are currently over 3.3 billion

active cell phones worldwide, while just over 1
billion people are connected to the Internet.
That’s about three to one in favor of cell phones.
Who is the demo for mobile? They don’t have any

good research, but the demo is: Urban, male and
young teens, ages 16-24 years.
Many of the two thirds that have a cell phone but

not PC Internet access are Hispanics and Latin
Americans. This fact has fueled to reach out to
the Spanish-speaking world through mobile
handsets.

24. How big is the mobile advertising market in

general?
Estimate 1: The global market could reach $9.6

billion by 2010, as current growth rates are close
to 50% annually.
Estimate 2: By 2012 the share for mobile media

is expected to have reached 7.5%, while at the
same time the digital advertising market will
more than double in size. In monetary terms, the
value of all mobile channels combined is
forecasted to grow with a compound annual
growth rate of 79.8 percent from $288 million in
2007 to $5.4 billion by 2012.
Sources: Shosteck Group, Berg Insights


25. What about the Hispanic mobile advertising

market?
Hispanics significantly over-index on mobile

content consumption (71%) compared with
the market average (48%)
Hispanic data users as more likely (41%

compared with 30%) to recall seeing ads on
mobile phones and more likely (22% vs. 13%)
to have responded. (This would be a good
graph to show)
Source: ComScore m:metrics, NSI Q2 Mobile Ad Report


26. What other companies are in this market ?

Ansible Mobile (London-based)

Vibes Media (Chicago-based)

Mobile units of media companies like

Televisa, Univision Movil or Impremedia.

27. What mobile applications are particularly

good for the Hispanic market?
Music downloads and anything fútbol-

oriented content are of course wildly popular
among Latin mobile users. Language services
constitute the most popular mobile content
among Latinos.

28. More…technology, choices, accountability

Audience research changes, i.e., Arbitron

Radio PPM launching in major markets
nearby, Riverside-San Bernardino, LA…
Fewer…resources in economic turmoil, long

term planning efforts, testing

29. ◦ Professional diligence and monitoring by marketers
◦ Reliable and valid sources of information on both
sides of the border
◦ Working together to build our voices for Hispanic
Marketing Research
◦ Improved ROI measurement metrics(same as
English media)

30. Attention
Awareness
Activate