Multicultural Ad Spending Declines in 2009, but Less than General Market

Spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009, according to figures released today by The Nielsen Company. The declines are consistent with the trend in overall advertising, although the drops aren’t as deep. Last month, Nielsen reported that ad spending fell nine percent in 2009, despite significant increases in Cable TV.

Spanish Language Ad Spending
Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type	2008-$ (000)	2009-$ (000)	% Change
Local Magazine	988.2	0.0	-100.0%
Local Newspaper	103,144.6	77,059.5	-25.3%
National Magazine	182,096.7	112,558.7	-38.2%
Spanish Language Cable TV	323,065.0	426,959.4	32.2%
Spanish Language Network TV	2,982,158.3	2,866,092.5	-3.9%
Spot Radio	567,233.9	562,481.3	-0.8%
Spot TV	1,559,307.8	1,402,754.4	-10.0%
Total	5,717,994.5	5,447,905.7	-4.7%
Source: The Nielsen Company

U.S population shifts to marketing opportunities

According to a new Hispanic marketing trends survey, commissioned by the Hispanic advertising agency Orcí, the 2010 U.S. Census is expected to find that Hispanics number more than 50 million in the United States, and command $1 trillion in buying power. Yet half of U.S. advertisers, says the report, who acknowledge the cultural impact of Latinos, do not include Hispanics in their marketing efforts.


Latinos comprise more than 15% of the U.S. population, and are predicted to rise to 50 million in the 2010 Census, an increase of 42% since the last Census in 2000. In the 2000 report, the Hispanic growth rate of 24.3% was more than three times the growth rate of the total U.S. population, which was 6.1%.
Yet the research showed that 82% of respondents have no plans to begin or increase existing efforts aimed at American Hispanics in the next 12 months. This despite the fact that the great majority of respondents agreed that Latinos will impact U.S. companies' product and service offerings in the next five years, particularly in food tastes, fashion and technology.

Hector Orcí, co-founder and chairman of the agency, says "... for the last 30 years, a minority of companies that have been smart enough to take advantage of engaging Hispanic consumers, have seen their efforts make a difference to their bottomline... "
The survey also found that 78% of respondents do not use social media to engage Latinos despite the fact that Hispanics are the heaviest users of wireless access through mobile phones and laptops than any other ethnic group. In addition, close to 80% of Latinos engage in some kind of online socializing. Among those companies who do use social media to market to Hispanics, Facebook was the site of choice with Twitter a close second.
"Hispanics are tech savvy, young trend setters with incredible spending power..." Orcí said.
Other key results of the survey include:

• 89% believe Latinos will somewhat or significantly impact American taste in foods in the next five years
• 87% believe Latinos will impact fashion and beauty
• 82% expect Hispanics to impact entertainment
• 78% believe Hispanics will impact technology/communications

U.S. Demographics are Changing… Are Your Marketing Plans Ready?

If you live in the U.S., you’re starting to hear more and more about the upcoming census. Even before we get data back from the country-wide headcount, we know that America’s demographic profile is undergoing major changes. By 2050, more than half of the U.S. population will be non-white (African-American, Asian, Hispanic). This dynamic growth represents not only significant cultural shifts, but also one of the more remarkable marketing opportunities in history. By that same 2050 milestone, the economic opportunity for brands in the multicultural CPG space is projected to exceed $500B.

Being able to keep pace with these increasingly diverse and demanding segments will require marketers to have a detailed view of what ethnic households buy as well as how they consumer media across TV, Internet and Mobile. When compared against the general population, minority households tend to over-index on some key shopping and media metrics.

Topline Multicultural Buying Insights

When compared to the general population, on average…

Hispanic Shoppers

• Tend to spend more on categories for babies and children — (Hispanic households represent 11.8% of CPG total spending, but 16.6% of disposable diaper sales.)
• Tend to spend more in traditional mass merchandise and warehouse clubs
• Tend to spend more on food consumed at home

African American Shoppers

• Tend to spend more on health and beauty products, like fragrance (African Americans represent 11.0% of CPG total spending, but 20.3% of dollars spent in beauty supply stores.)
• Tend to spend more in drug and dollar stores
• Tend to spend more on ingredients used to cook from scratch
• Tend to buy fewer items on deals or with coupons
• Tend to spend more on food consumed at home

Asian American Shoppers

• Tend to spend more in club stores (Asian Americans represent 3.0% of CPG total spending, but 5.5% of dollars spent in warehouse clubs.)
• Tend to spend more on categories for babies and children
• Are more likely to eat outside of the home

Topline Multicultural Media Insights

Hispanic Media Consumers

• Strong following of Telenovelas
• On average, watch more broadcast and satellite TV
• Display higher usage of mobile internet

African American Media Consumers

• Have the highest TV usage of any demographic at nearly 80 hours a week per household
• Have a higher percentage of multi-set households
• Display higher usage of mobile internet

Asian American Media Consumers

• More likely to have newer technology (DVD, HD, Digital Cable)
• Tend to watch less TV

While each group has many layers of cultural, economic and social diversity within, these broader trends are worth noting, and planning for, if marketers are to meet the needs of their fastest growing consumer base.

U.S. Demographics are Changing… Are Your Marketing Plans Ready? | Nielsen Wire

Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market

Spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009, according to figures released today by The Nielsen Company. The declines are consistent with the trend in overall advertising, although the drops aren’t as deep. Last month, Nielsen reported that ad spending fell nine percent in 2009, despite significant increases in Cable TV.

Spanish Language Ad Spending
Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type	2008-$ (000)	2009-$ (000)	% Change
Local Magazine	988.2	0.0	-100.0%
Local Newspaper	103,144.6	77,059.5	-25.3%
National Magazine	182,096.7	112,558.7	-38.2%
Spanish Language Cable TV	323,065.0	426,959.4	32.2%
Spanish Language Network TV	2,982,158.3	2,866,092.5	-3.9%
Spot Radio	567,233.9	562,481.3	-0.8%
Spot TV	1,559,307.8	1,402,754.4	-10.0%
Total	5,717,994.5	5,447,905.7	-4.7%
Source: The Nielsen Company

African-American Ad Spending
Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.

African American Media
Media Type	2008 $ (000)	2009 $ (000)	% Change
Cable TV	539,193.6	728,440.8	35.1%
National Magazine	530,766.1	353,806.7	-33.3%
Spot Radio	826,824.5	747,794.7	-9.6%
Network TV	95,524.8	26,626.8	-72.1%
Syndicated TV	110,638.4	92,935.8	-16.0%
Total	2,102,947.5	1,949,604.8	-7.3%
Source: The Nielsen Company

Product Categories
The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald’s was the top fast food advertiser in both media segments.

The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009. According to Nielsen data, a larger percentage of Hispanic households were not ready for the transition than non-Hispanic households at the end of 2008.

Spanish Language Categories
Product Category	2008-$ (000)	2009-$ (000)	% Change
RESTAURANT-QUICK SVC	293,652.9	334,593.0	13.9%
AUTOMOTIVE	528,577.9	323,230.0	-38.8%
TELEPH SVCS-WIRELESS	316,808.3	305,463.7	-3.6%
STORE-DEPT	307,345.4	294,420.8	-4.2%
SATELLITE COMM SVCS	134,658.1	238,744.6	77.3%
DIR RESP PROD	220,632.3	237,227.6	7.5%
BEER	165,045.9	171,677.7	4.0%
LEGAL SVCS	89,684.3	123,847.0	38.1%
MOTION PICTURE	112,015.0	99,846.5	-10.9%
INSURANCE-AUTO	144,305.0	98,084.0	-32.0%
Source: The Nielsen Company

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8^th and 9^th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category	2008-$ (000)	2009-$ (000)	% Change
RESTAURANT-QUICK SVC	72,909.6	86,906.8	19.2%
AUTOMOTIVE	105,005.7	85,851.1	-18.2%
STORE-DEPT	76,117.9	72,234.3	-5.1%
MOTION PICTURE	58,094.9	71,937.5	23.8%
TELEPH SVCS-WIRELESS	52,610.6	50,602.5	-3.8%
PHARMACEUTICAL	50,542.5	47,556.1	-5.9%
DIR RESP PROD	41,810.4	43,544.9	4.1%
INSURANCE	26,739.2	34,378.2	28.6%
INSURANCE-AUTO	26,285.0	32,521.9	23.7%
CREDIT SVCS	23,052.1	28,204.4	22.4%
Source: The Nielsen Company

Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market | Nielsen Wire