Hispanic Market Advertising Grows 4.7 Percent in 2004

Hispanic Market Advertising Grows 4.7 Percent in 2004

New Study Reveals Steady Growth for Four Years but Many Sectors Lag Behind

MCLEAN, Va., Nov. 29 /PRNewswire/ -- The Association of Hispanic Advertising Agencies (AHAA) today announced that Hispanic television and print advertising spending in 2004 grew 4.7 percent from 2003. The findings were the result of the 2004 Hispanic Media Spend study commissioned by AHAA's Hispanic Advertising Agencies Foundation, Inc. (HAAF) with data from TNS Media Intelligence and Market Development.

The 4.7 percent increase in Hispanic spending contrasts to the overall growth in total television and print media spending which increased 10.5 percent from 2003. Despite this growth in Hispanic media spend, one-third of the top 250 national advertisers still do not appear among the top 250 Hispanic advertisers. While some marketers, such as Sears, McDonalds, Procter & Gamble, and Johnson & Johnson recognize the brand loyalty associated with reaching out to U.S. Hispanic consumers; others may be ignoring the trends.

"Our new study confirms what AHAA agencies have known for years," says HAAF Chair Carl Kravetz. "Hispanic marketing is flourishing. Yet still more than 100 of the top 250 television and print advertisers are allocating less than one percent of their total budgets in these media to reaching the influential U.S. Hispanic consumer. Some of America's most iconic brands -- like Apple, Maytag and Nike -- are missing in action. Others are doing the barest minimum: Mattel, for example, showed 0.1% spending in the Hispanic market in 2004 according to study findings. Considering that nearly a quarter of all children in America are Latino,(1) it just doesn't make good business sense."

The 2004 Hispanic Media Spend study reviewed total measured television and print ad spending among the top 500 national advertisers ranked by spending in those categories. A key metric for the analysis, Hispanic Media Share, divides the dollars spent with Hispanic media by the total television and print spend (Hispanic and general market).

Results are designed to guide marketers in aligning media spending, in particular their Hispanic Media Share, within the context of a dynamic and growing environment. U.S. Hispanic population growth is outpacing overall growth in every age demographic,(2) and yet many industry sectors, including technology, pharmaceuticals and travel and entertainment according to study results, aren't keeping pace. Rather than increasing Hispanic market spending accordingly, whole categories as well as recognized brands such as Hallmark, Bose, Philips, among others lag far behind.

In 2004, Hispanic buying power reached $686 billion and is estimated to rise to $992 billion by 2009 representing 9% of the total U.S. buying power.(3) Over the 17-year period (1990-2007) U.S. Hispanic buying power will escalate at a compound annual rate of 8.7 percent compared to non-Hispanic growth rate of 4.8 percent.

"The continued growth in Hispanic media spend is encouraging," says Loretta H. Adams, founder and president of TNS Market Development, the multicultural arm of TNS. "However, the stronger growth in general market media spend suggests that U.S. marketers have not yet aligned their Hispanic Media Share with the fact that over one American adult in ten speaks Spanish at home.(4) This provides marketers with a significant opportunity to further support their brands," Adams concluded.

AHAA first commissioned analyses of targeted advertising spending levels in 2002, and since its foundation in 1996 the association has developed strategies to foster the relationship between U.S. Hispanic consumers and corporate America. "We want corporate marketers to trust the data, invest in the whole Hispanic consumer -- regardless of language spoken -- and consult AHAA agency advertising experts to deliver profitable returns on their investments," Kravetz says.

Copies of this research can be obtained from the AHAA website, http://www.ahaa.org/.

About AHAA:

The Association of Hispanic Advertising Agencies (AHAA) is the national organization of firms that specialize in marketing to the nation's 41 million Hispanic consumers, the most rapidly growing segment of the American population. AHAA promotes the strength of the Hispanic marketing and advertising industry to the private and public sectors.

AHAA agencies offer a unique blend of cultural understanding, market intelligence, proven experience and professionalism that deliver Hispanic market success for clients. AHAA agencies help organizations gain market share, increase revenue and grow profits by building the bridges and delivering the messages to reach America's Hispanic consumers, who together have an estimated buying power of $630 billion.

About TNS:

TNS is a market information group; the world's largest custom research company, a leading provider of social and political polling, and a major supplier of consumer panel, TV audience measurement and media intelligence services. TNS operates a global network spanning 70 countries and employs over 13,000 people, providing market information and measurement, together with insights and analysis, to local and multinational organizations.

Combining specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management, TNS brings clients up-to-the-minute, internationally consistent information. TNS thinks differently to help clients build a competitive advantage, making TNS the sixth sense of business. http://www.tns-global.com/

(1) 22 percent of all children in America are Hispanic and Hispanics are
leading the way in the number of births in the U.S. -- one in five
babies born. (Source: Hispanic Market Weekly)
(2) U.S. Census Bureau
(3) Selig Center for Economic Growth, 2004
(4) U.S. Census 2003 American Community Survey. Base is 5 years and
older.

CONTACT: Elinor Kinnier, +1-703-610-0204, ekinnier@cmgresults.com, for Association of Hispanic Advertising Agencies

Source: Association of Hispanic Advertising Agencies

CONTACT: Elinor Kinnier, +1-703-610-0204, ekinnier@cmgresults.com, for
Association of Hispanic Advertising Agencies

Web site: http://www.ahaa.org/
http://www.tns-global.com/

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