Latin_KNOW: The Latino Marketing Report

Article: Search Engine Marketing for Latinos

WebProNews reports that: "...Google and Univision are talking about a partnership that would improve the prospect of search engine marketing using Spanish language."

It's a good thing that someone has finally noticed that Google, whether it be the Mexican version, or another version in Spanish, is used by millions of Spanish speakers worldwide, including US Latinos (some who search in both English and Spanish) -- the group marketers are really after. Google, of course, knew this, and localized its sites long ago. But up until now the Latino market seems to have been an afterthought with regards to search engine marketing. For those of you who don't know what I'm talking about, if you speak Spanish, try searching Google for something you really want to purchase in that language. Say, a baby stroller. Type in carrito bebe and you'll come up with something, but the results will be far less appealing than those you'll find in English. And, if you are a Latino in the US, you are out of luck, because most of the results you'll find are for products located in Spain, Peru, etc. Now try googling baby stroller. You'll get Wal-Mart, BizRate and thousands more options.

This two-part article by WebProNews' Chris Richardson talks about the present and the future of search engine marketing geared toward Latino consumers. For more background, check out Nacho Hernandez's post on the topic on Search Engine Roundtable, referenced in this article.

Google And Univision Focusing On Spanish Search Marketing
Chris Richardson | Staff Writer | 2005-06-27

As more and more Hispanic users gravitate to the Internet and all that it offers, their exposure to search engines and the marketing associated with them increases as well. However, is there sufficient Spanish language support to provide these users with a seamless Internet shopping experience? Probably not...

So to remedy this, Google and Univision are talking about a partnership that would improve the prospect of search engine marketing using Spanish language. According to Nacho Hernandez, who posted this story at Search Engine Roundtable, Univision has one of the largest portals catering to the Spanish-speaking population in the United States.

A partnership like this will only improve the current state of Spanish-speaking supported search advertising, which currently hovers around non-existent. Nacho provides sound reasoning why an agreement like this would be successful:

"I believe the objective of encouraging advertisers to translate their websites into Spanish mainly relies on the fact that U.S. Hispanics sometimes think in Spanish, therefore they will search in Spanish. Other times they think in English so they will search in English. They are not a "one size fits all" user, nor the statistics of how many are Spanish preferred versus English preferred reveal how dynamic the user is when searching. In my opinion, they are bi-lingual and bi-cultural. It's important to target U.S. Hispanics in both languages..."

WebProNews    READ MORE OF PART ONE   READ PART TWO

Hold the Phones! More News About Phones

From the UK's cellular-news.com, this article is a continuation of some previous posts about cell phone Latino marketing wars:

Telecom marketing to Hispanics part of new ethnic focus

Telecom providers are marketing more aggressively to ethnic groups, reports In-Stat. Examples of this include Qwest's low-cost long distance calling plans for Mexico, and Sprint's launch of Movida Communications, both of which target the more than 42 million Hispanics in the United States. Many of the current ethnic marketing initiatives tend to focus on the Hispanic market, as this is the largest ethnic population, with more than 43 million individuals in 2005.

"In-Stat has also found that some ethnic groups react better to specific types of advertising and marketing, and are influenced by different sources," said Amy Cravens, In-Stat analyst. "In better understanding these differences, providers may be able to more fully realize the potential subscribership of what may be undersubscribing ethnic groups."

A recent report by In-Stat found the following:

-- Although decreases in revenues from wireline services are expected from subscribers of all ethnicities, the lowest declines are expected from Hispanic and Asian/Pacific Islander subscribers due to their population growth.

-- By 2009, more than 40.4 million whites are expected to subscribe to broadband. The number of Hispanic and Asian/Pacific Islander subscribers is expected to grow at faster rates, however.

-- African-Americans are expected this year to account for the second-greatest percentage of dial-up subscribers, nearly 6.0 million. This number is expected to fall to 4.3 million by 2009.

 

Article: Hispanic Ad Spending Increasing Sharply

This just in from AdAge.com:

HISPANIC AD SPENDING INCREASING SHARPLY
TNS Forecasts 2005 Total at 10.5% Over 2004
June 29, 2005

NEW YORK (AdAge.com) -- U.S. Hispanic ad spending will grow by 10.5% in 2005, sharply outpacing the overall U.S. ad market spending at just 3.4%, according to a new forecast this week by TNS Media Intelligence.

The only segment of the U.S. media market that TNS expects to grow slightly faster than Hispanic media is cable network TV, predicted to rise by 11.6%.

"We are seeing strong growth in cable TV, Hispanic media, the Internet and consumer/Sunday magazines," said Steven Fredericks, president-CEO of TNS MEdia Intelligence.

The fast growth in Hispanic media is keeping pace with the increase in the Hispanic population. The U.S. Census Bureau reported earlier this month that Hispanics accounted for half of all growth in the U.S. population between July 1, 2003 and July 1, 2004. The Census Bureau's official estimate puts the U.S. Hispanic population at 41.3 million, although many believe the real figure is higher.

AdAge.com

Counter-attack: Latin American Companies Cash-in on US Latino Market

I found this piece of news, from HispanicBusiness.com, very interesting. Thanks to Juan Tornoe from Hispanic Trending for the lead:

Latin American Companies Seeking US Takeovers

June 27, 2005 | Gordon Platt

Companies based in Latin America are seeking to acquire US companies in order to buy into the fast-growing Hispanic market in the US, where 40.4 million Spanish-speaking people control $700 billion in purchasing power.

"The US is the largest Hispanic market outside of Spain," says Jay Garcia, managing director of New York-based investment bank Samuel A. Ramirez.

With revenues of US-based Hispanic companies growing at an average rate of 20% a year, Latin American companies have come to realize that the best way to participate in this market is through corporate acquisitions, instead of just exporting their products, Garcia says.

Samuel A. Ramirez, which specializes in middle-market M&A transactions, has been approached by a half-dozen Latin American companies recently that are actively seeking takeover targets in the US, Garcia says.

A rash of takeovers in the $300 million to $400 million range is likely in the months ahead, according to Garcia, who expects a flurry of cross-border activity in the banking, media and food sectors.

In November 2004 Mexico-based Editorial Televisa purchased a 51% stake in Hispanic Publishing, a Miami-based publisher of Hispanic and Hispanic Trends magazines.

HispanicBusiness.com       READ MORE

Battle of the Cell Phone Companies

In a previous post, I mentioned Virgin Mobile's try for the US Latino market with a funny web site campaign called "Don't Be Normal", referring to "normal" people as those who are locked into cell phone contracts instead of having the freedom of a pay-as-you go plan. Well, it seems that Virgin's competitors in wooing the Latino market, those cell phone giants Motorola and Nextel, aren't just traditional in their calling plans, but also in their marketing tactics. They are banding together to create the "Conexión" tour, showcasing hot Latino pop acts in "intimate performances" in Latin hotbeds Miami, New York and Los Angeles. And as is the genius of integrated marketing programs, they tie it all back to the cell phones and their accessories, offering "Conexión Musical" wallpaper and ringtones of their favorite artists. And, to sweeten the deal, Nextel customers can attend the concerts for free (on a first come, first serve basis) by visiting the Nextel web site and registering.

Which cell phone provider's message will ring true with Latinos? I can't help but think that the Nextel/Motorola campaign will get more attention, given the glam factor and the fact that they are tapping into something of real interest to Latino youth, pop music. Plus all the nifty multimedia offerings like ringtones and such.

You see, cell phone companies aren't just after Latinos because of the boom in the market size, but because according to research, Latinos spend more money monthly for cell phones than their non-Latino counterparts, downloading things like ringtones or communicating via SMS (for background, have a look at this not-so-recent, but still relevant article). According to Arbitron:

"Cell phones and long-distance spending are also excellent categories for Hispanics. Thirty-one percent of Hispanics who own a cell phone use it as their primary phone service. (Source: Internet and Multimedia 11) Eleven percent of Hispanics spend over $100 on cell phones per month, compared to 7.5 percent of the non-Hispanic population."

Following is the Nextel/Motorola press release:

Nextel and Motorola Launch Conexion Musical Concerts With Award-Winning Artists Showcasing the Rhythms of Salsa and Latin Pop
PR Newswire

PRESTON, Va. and PLANTATION, Fla., June 28 /PRNewswire-FirstCall/ -- Nextel Communications Inc. and Motorola today announced the launch of the first-ever Conexion Musical concert tour featuring Victor Manuelle, Reyli and Kalimba. Created as a program to showcase the effusive beats of Latin music, Conexion Musical will unite artists with fans during intimate performances at some of the hottest venues in New York, Miami and Los Angeles in July.

Conexion Musical was designed to bring together Nextel's growing Hispanic customer base and music, including additional elements, such as custom Conexion Musical wallpaper and ring tones all focused on delivering the sights and sounds of their favorite artists.

"Conexion Musical is a great platform for Nextel to honor the fact that music surrounds Latinos in a special and profound way and continues to influence our own American musical landscape," said Miguel Avila, senior director of Nextel's Hispanic marketing. "Like the artists, Nextel is a young and vibrant company, and we believe this tour -- along with the custom ring tones and the custom compilation CD of the artists' music we are offering -- will serve as a way to reinforce our relationship with our growing Hispanic customer base."

"Music has consistently been one of the strongest pillars of our comprehensive US Hispanic marketing strategy," said Tamara Franklin, Director of Strategic Marketing and New Business Development of the Motorola iDEN Mobile Devices group. "Conexion Musical is the perfect vehicle to showcase our feature-rich products and deepen our commitment to the diverse US Hispanic community."

PR Newswire/Hispanic Business.com            READ MORE

 

News: Three US Hispanic Agencies Win at Cannes

From today's AdAge.com:
THREE U.S. HISPANIC AGENCIES WIN AT CANNES
La Comunidad, Grupo Gallegos and Lapiz Score Silver Lions

June 27, 2005
By Laurel Wentz

CANNES, France (AdAge.com) -- Three U.S. Hispanic ad agencies were awarded Silver TV Lions Saturday night in the best-ever performance by the U.S. Hispanic market at the Cannes Lions International Advertising Festival.

The Lions went to independent shops La Comunidad, Miami, and Grupo Gallegos, Long Beach, Calif., and Publicis Groupe's Lapiz, Chicago, part of Leo Burnett.

La Comunidad
La Comunidad, a hybrid agency started by Argentinean creatives Jose and Joaquin Molla and based in Miami and Buenos Aires, won a silver for the spot "Parents' Day" for Viacom's VH1. To illustrate that VH1's offering goes way beyond just music videos, the agency put a rock star in the mundane setting of a parents' meeting at a school to show that musicians have a life beyond music, too ("Beyond Music" is the network's tagline). Every time the rock star asks a simple question about his daughter Jenny studying a foreign language at school, a blaze of fireworks goes off around him, which no one pays any attention to.

Grupo Gallegos
Grupo Gallegos' winning spot, "Mano Japonesa" ("Japanese Hand"), was for Energizer batteries. In the spot, a man who lost his hand gets a transplanted limb from a Japanese man. The new hand makes him compulsively take photographs everywhere, even in bed with his very annoyed wife. In one vignette, he is snapping away with a bright flash during a movie and an angry man seated in front of him at the cinema turns around and tackles him.

"Most battery spots show an exaggerated passage of time or battery failure, but the client liked that we were able to uncover another twist," said Grupo Gallegos CEO John Gallegos, chatting about the spot over Perriers on the Carlton Terrace. Mr. Gallegos, attending the Cannes festival for the first time, flew in the day before the awards show. Favio Ucedo, the agency's executive creative director, who was at the festival for the second time, said he has rarely attended a client presentation where everyone laughed so much.

AdAge.com            READ MORE

Candidates (Still) Falling Over Each Other to Appeal to Latinos

According to NY1, both NYC mayoral candidates, Fernando Ferrer and Mayor Michael Bloomberg, are off to LA to personally congratulate newly elected mayor Villaraigosa. Read: show support for Latino victor and by association, play themselves up as the most Latino-friendly candidate.

As I mentioned in a previous post, the Spanish-language marketing war has begun between the two candidates, with Bloomberg biting the bullet and spending some advertising dollars on Spanish-language ads in an attempt the usurp the innate advantages of his opponent: 1) democrat 2) Puerto Rican American. Each candidate will benefit from making themselves visible in this highly publicized inauguration/Latino celebration.

Ferrer is going even farther out. He's visiting Puerto Rico this weekend to address the National Puerto Rican Coalition, a visit which will mobilize sentiments on the island and no doubt reverberate back to Manhattan Island.

Bloomberg, Ferrer To Both Attend Inauguration Of Los Angeles Mayor
June 24, 2005

On tonight’s “Road To City Hall” on NY1, Sandra Endo is exclusively reporting that both Mayor Michael Bloomberg and his top Democratic challenger, Fernando Ferrer, are planning on attending next week’s inauguration of Los Angeles Mayor Antonio Villaraigosa.

Villaraigosa’s victory last month captured national attention, as he became L.A.'s first Latino mayor to be elected in more than 130 years.

Despite being in different political parties, Bloomberg called Villaraigosa to congratulate him on his big win, and last week the L.A. Democrat praised the Republican Bloomberg for taking control of the school system.

NY1                READ MORE

Georgia Latinos get their GeorgiaTeVe

I never thought I'd see the day, but that day has come. The deep South, that bastion of all-American tradition, has become an all-American melting pot. Being from the South myself, I remember a time when there were no Latinos in the city where I was born -- a Southern capital city. Now, cities like Atlanta are not only filling up with vibrant Latino communities, but local media and marketers are responding to this new(ish) immigrant group.

According to the Census Bureau, the Latino population in Atlanta more than doubled from 1990 to 2000, with the population number jumping from a modest 7,640 in 1990 to a considerable 18,720 in 2000. In two Georgia cities, Gainesville and Dalton, Latinos make up over 20% of the total population (22.6% of the total population in Gainesville and 20% percent in Dalton). Dawson County's Latino population jumped an amazing 59% between 2000 and 2002. Perhaps the most compelling number floating around: a 348% increase in the Latino population in Northeast Georgia (sources).

With local Latino-targeted magazines, newspapers and web sites, it was only a matter of time until someone would see dollar signs and Georgia would get its very own local Spanish language channel. Enter Georgia TeVe. According to an Atlanta Journal Constitution article, which provides a lot of background on this venture:

This is the latest effort by entrepreneurs to appeal to Atlanta's growing and potentially lucrative Hispanic population, and the station hopes to differentiate itself from competitors in the market "because we're going to bring the local flavor," Georgia TeVe CEO Rafael Ortiz-Guzman said.

Perhaps that "local flavor" will what will convince Latino viewers to lay down that extra $50 per month to have access to the channel (available only via the local Comcast cable provider) instead of just watching their local Univision affiliate.

The following article from today's MediaWeek focuses on the July 1 launch of Georgia TeVe. For more information on this topic, see this post on Juan Tornoe's excellent blog Hispanic Trending.

Georgia TeVe launches July 1.
June 24, 2005

Rafael Ortiz-Guzman, who created ROG Productions six years ago, will launch Georgia’s first local Hispanic TV station on Comcast cable beginning July 1. The station, Georgia TeVe will broadcast 24 hours a day and air about 50 hours of local programming each week, including 12 original productions.

Atlanta is one of the fastest-growing Hispanic markets in the U.S., but is served by only one Hispanic station, Univision’s WUVG-TV. Hispanics make up 7.5 percent of the Atlanta market and number about half a million in the state, according to the U.S. Census.

MediaWeek.com     READ MORE

Spanish Media Invasion

These days, it looks like everyone under the sun wants a piece of the US Latino market pie -- even the Spaniards. Madrid-based Grupo Prisa, publisher of the acclaimed newspaper El Pais and popular radio network Cadena Ser says they are ready to make the jump across the pond and claim their piece of a media market that is ripe for the picking. Some say the quality of what Prisa has to offer is exactly what is lacking in US Latino media.

But, not so fast. Prisa first wants to continue its "invasion" of Latin media by extending their already established influence in Latin America. Prisa just opened new studios for its Caracol radio network in Bogota. And in April, the group jump-started its growth in the US as well, by signing a 28 million dollar deal with Clear Channel, granting Prisa the rights to operate the San Diego Spanish-language radio station XTRA AM 690.

What's clear is that if any European media group is poised to make a mark on the US Latino media market, Prisa is it. They are a powerful media entity with millions of Euros to spend. In addition, Prisa, the Socialist government's media group of choice, is gaining power on its home turf as well. Today, the group is celebrating a huge victory: the Spanish government (much to the dismay of Prisa's competitors) declared that they will be allowed to broadcast their Canal Plus station from a brand new channel on national open (not cable) TV. Prisa calls it better choices for viewers while competitors shriek "monopoly!" (Note: for excellent coverage of this saga and the Spanish media landscape in general, have a look at a blog called Periodistas 21)

Adding to all this power, for reasons of history (good or bad), a shared language and now new Latino immigration to Spain, they innately know the market better than any of their European counterparts.

The following article quotes Juan Luis Cebrián, Prisa's president, as saying the "cracking the U.S. Hispanic market would be the crowning achievement of his long career at Prisa." No doubt.

Prisa Wants To Play Conquistador
The Madrid media group is making a risky move across the Atlantic

By Carlta Vitzthum

Spain's Grupo Prisa has gotten too big for its britches. Its newspaper El País is the country's most widely read daily, while Cadena SER, its chain of 400 radio stations, commands an audience share of nearly 50%. The Madrid media company owns specialty magazines, several television stations, and a leading publishing house. It's also in the movie biz. One of the many hits it has bankrolled was The Sea Inside, winner of the 2005 Oscar for best foreign-language film. Prisa's grip on Spanish media is so tight that competitors have tried to clip its wings by challenging in court its dominant position in radio and pay TV, though without success.

So what's an ambitious media magnate like Juan Luís Cebrián to do? Since 2000, Prisa's chief executive has been patiently stitching together the world's first pan-American radio network, consisting of 450 stations stretching from Miami to Buenos Aires. With sales of just under $66 million last year, Prisa's international radio business is still in its infancy. But Cebrián, 59, is already mulling over a plan to take all of Prisa's 1,000 Spanish-language stations public, before seeking an alliance -- or even a merger -- with a U.S. media group. "We hope to repeat the success of SER in the Americas," he says.

Business Week Online            READ MORE

Article: Virgin Mobile Spurs Hispanics to Leave 'Normal' Behind

The Virgin companies, with their smart and upbeat marketing, have long inspired admiration in me. It's interesting now to see how they are approaching the arena of Latino marketing. In this article, ClickZ's Pamela Parker takes a look at how Virgin Mobile is jumping on the bandwagon of providers who are looking to market their "pay as you go" cell phone plans to Latinos. Their tactic is to position those who use pre-paid plans as more interesting, innovative and "not normal", while communicating that those who have "traditional" contract cell phone plans are boring, mainstream and "normal". The campaign slogan: "no seas normal" ("don't be normal").

Normal, here, is bad. Not normal is good.

While this campaign is in line with the "defy the norm" spirit of the Virgin brands, I'm not sure how it will work with the Latino market. Virgin Mobile has set up a web site in support of the "don't be normal campaign" at www.noseasnormal.com. I'd be interested to hear your comments about the campaign, and predictions on its effectiveness, if you are so inclined to leave them.

My personal opinion: I like the comical skits they use to show normal as uncool and not normal as defiant and fresh. But I was put off by the lengthy and redundant text intro you get when you access the site. Interesting campaign indeed, and the humor is very Virgin (perhaps a bit too British?), and not at all like what we've seen in other Latino campaigns. That though, could be a good thing. We'll have to wait and see.

Virgin Mobile Spurs Hispanics to Leave 'Normal' Behind
Pamela Parker | ClickZ News | June 22, 2005

If being normal means signing a conventional wireless contract, Virgin Mobile USA is urging U.S. Hispanics to steer clear. This is the pay-as-you-go carrier's first integrated campaign aimed at the fast-growing minority group.

Virgin's Hispanic marketing agency, Miami-based La Comunidad, developed both online and offline creative for the Spanish-language effort.

The just-launched interactive aspect of the "No Soy Normal," or "I'm Not Normal," campaign consists of a video-driven Web site, at noseasnormal.com, which the company hopes will go viral. The site takes users through a series of scenarios in which they can choose the fate of the characters, by selecting whether to be normal or not be normal. If they choose to be out of the ordinary, they're rewarded with some surreal, but humorous, outcomes.

"The overall campaign attempts to show people that it's OK to be unconventional and it's OK to be, in effect, not normal," Bob Stohrer, VP of brand and communications at Virgin Mobile USA, told ClickZ News. "Normal, for us, at least the way we look at normal, is that normal equals contract plans. We're asking people to rethink that a bit."

In one "not normal" scenario on the site, a male character points at a small, yapping dog, and causes it to fly away and disappear, as if by magic. When the dog's owner, an attractive woman, comes looking for the canine, he offers to help her look for it and they end up going for a drink. Choosing to be normal ends the storyline's progression and sends the main character back to his desk in a windowless office.

ClickZ News            READ MORE