Hispanic Media Allocation Leads to Greater ROI

The allocation of funds on the Hispanic media side can be a challenge for many marketers, but according to the 2015 Hispanic Ad Allocation Report, this type of allocation leads to a greater return on investment.

As companies begin to notice the value in allocating these funds, this will lead to increasing ad dollar spending within Hispanic media and create a win-win for both brands and consumers.

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The national trade organization, Association of Hispanic Advertising Agencies (AHAA) has been a champion in the Hispanic Market for almost 20 years.

The association released the most recent edition of its insight series, which spanned through industries including but not limited to consumer packaged goods & retail, restaurants, apparel, pharmaceutical, financial and automotive industry.

The Results: When companies allocate a percentage of their overall ad spending within Hispanic dedicated efforts there is a significant correlation between revenue growth and ad spending. That is, regardless of the industry, investing in Hispanic Media leads to better results.

“For every five-point shifts from English to Hispanic Media, we found, on average, a 1.75 boost in revenue growth rates- tangible evidence that shifts to Hispanic media directly impact total market revenue growth.” – Carlos Santiago, chair of the AHAA Research Committee.

UntitledThe top 500 U.S. marketers have increased their ad spending to Hispanic dedicated efforts from 5.5 percent in 2010 to 8.4 percent in 2014. From 2010 to 2014, the top 500 advertisers boosted their ad spending in Hispanic targeted media by 63 percent from $4.3 billion in 2010 to $7.1 billion in 2014.

During that same time frame, average Hispanic media spending grew from $9 million to $14 million now.

Consumer Packages Goods and Retail: The Consumer Packaged Goods & Retail category have one of the biggest areas of growth- over the past five years, the top 500 U.S. advertisers increased their Hispanic media spend by a staggering 67 percent during 2010 to 2014.

P&G spends the most against Hispanic advertising with $439 million followed by L’Oreal, Mars, Walmart and Anheuser-Busch and SABMiller. And of course, Goya leads in highest percentage toward Hispanic with 59 percent of its advertising going to Hispanic with Constellation Brands.

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Technology, Telecommunications and Entertainment: Technology, Telecom and entertainment category, aggregate Hispanic AdSpend by technology-telecom-entertainment increased by 16%, allocation jumped 1.1 percentage points, rising within Leader tier. The average company Hispanic AdSpend increased to $31.3M

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Allocation Breakdown: Hispanic Media Allocation alone explains about 10-30% of the change in topline revenue growth with 22% Hispanic Marketing accounted for in Financial-Insurance Services, CPGs & Retailers at 28%, Automotive at 10% and 30% within the Tech, Telecom and Entertainment industry.

Hispanic Media

 

Throughout the study companies such as Walmart, Lowes, Verizon, AT&T, Ruby Tuesday and P&G have all made efforts to strengthen their investment and share of overall ad spend to Hispanic dedicated media.

The impact of these efforts is clearly seen across multiple categories with clear correlations between increasing Hispanic ad allocation and greater return on investment. Santiago points to one key takeaway, “The lesson from top U.S. marketers is clear—follow the leader.”

Did this article get you thinking about increasing your own Hispanic media allocations? Get in touch with us and find out how AC&M can connect Hispanic consumers to your brand through innovative campaigns tailored to your brand.

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