Digital Hispanics in a physical world - August 2009

DIGITAL HISPANICS IN A PHYSICAL WORLD EXECUTIVE SUMMARY Hispanic Americans now make up approximately 15% of the US population and growth projections are unprecedented. It is generally recognized that the Hispanic population has high adoption rates for new technology, digital media consumption and mobile activity. In addition, this population segment has unique media consumption behaviors in a rapidly changing advertising landscape. Brands are looking for powerful new ways to capture the attention of this powerful market segment. Hispanic marketing has been a growing, specialized dis- cipline for marketers and brands due to the demographic make-up of Hispanic communities and the growth of their consumer spending power over the past several years. Marketers are searching for effective and meaningful ways to generate brand connections, resulting in product sales and market share with the American Hispanic population of today and tomorrow. Digital media brings the promise of better connections and deeper relationships. August 2009 Digital OOH Media Strategists White Paper

Digital Hispanics in a Physical World Today’s consumers are increasingly “on the go” and Why is digital media an important American Hispanics are no exception. The frantic tool for targeting Hispanics today? pace of consumer schedules and an increasingly fragmented media landscape are making it more There are more than 46 million Hispanics in the difficult to find and communicate with valued United States wielding a buying power that totaled Hispanic customers. more than $980 billion in 2008 and is projected to reach $1.3 trillion by 2013.(3) The sheer size The average North American, Hispanics included, of this ethnic buying power, coupled with shifting spends 52%(1) of their active time outside the consumer media consumption patterns, makes home, and more than 30%(2) of their weekly media targeted digital media essential to achieving goals consumption comes from out-of-home media. and results. Furthermore as Hispanics shift to digital and increase the time spent out-of-home, how can digital out- Tatjana Meerman, publisher of New York-based of-home media be used, successfully, to optimize research firm Packaged Facts, stated that, targeting and messaging when practicing Hispanic “Latinos will change the profile of American marketing? society over the next four decades. The Hispanic population will grow much quicker than other population segments, and Hispanic consumers will represent an increasing percentage of the American consumer base.” This makes it even more critical for all marketers to have a plan in place for reaching and engaging Hispanics. “ Latinos will change Many marketers rely on traditional Hispanic media such as television networks, radio stations, and magazines and newspapers to reach and engage the profile of American the Hispanic community. However, digital media society... ” is a largely untapped resource that drives a more personalized and customized relationship, generating better response rates and more long- term loyalty. Some advancements have been made and online media are well on their way to becoming a cornerstone in targeting Hispanic consumers, with the likes of sites such as YahooTelemundo.com and MSNLatino.com. However, most marketers stop there, and opportunities are being lost. Overall, digital media still represents a small percentage — less than 5%(4) — of measured Hispanic media expenditures. It is, however, growing at a rapid pace, showing year-over-year

increases of 36%.(5) In comparison, out-of-home outdoor media present different challenges when opportunity, digital out-of-home is a highly effective, media makes up a scant 2%(6) of the national planning targeted media campaigns, achieving a direct communication channel, which speaks with Hispanic targeted ad spend, during a time when deeper level of granularity and, more importantly, consumers in a contextual manner. For instance, place-based media, which includes both digital a contextual advertising opportunity in highly reaching beyond convenience stores and grocery video and digital signage in a variety of out-of- indexed ethnic target areas. stores, an ad for portion-controlled chocolate bars, home venues, grew 12.3% in 2008, according to targeted to Hispanic females, would be contextually PQ Media, and is projecting double digit growth So why is Outdoor so “outside” the norm in Hispanic relevant in fitness centers (where over 56% of the in 2009 before returning to double digit growth in communication initiatives? The unique behavioral audience is female, they’ve just worked out and 2010.(7) modeling of Hispanic consumers may provide could use a small reward). With digital out-of- some rationale behind the tiny 2% allocated to out- home, marketers can select contextually relevant of-home advertising spend vs. the national annual environments to begin their conversations not spend. The cost of static out-of-home production only at the point-of-purchase but also on the path- and distribution and the difficulties for marketers in to-purchase. Marketers can then select media identifying advanced targeting tools and mediums only in zip codes that have a higher than national may also be contributing factors. average Hispanic population. This approach heavily over-indexes the audience and eliminates media waste. Reaching Hispanics where they are and when it matters. Digital out-of-home (DOOH) provides a medium that captures the attention of busy Hispanics whom are consuming media in new and dynamic ways throughout their day, including where they eat, commute, shop and spend their leisure time. Digital out-of-home screens can be found in Digital out-of-home hospitality venue. E-Cast. everything from airports, convenience stores, pharmacies, colleges, restaurants, bars, nightclubs, gas stations and sports arenas to bathrooms, office buildings, health care facilities, shopping centers, transit stations and more. (8) The media networks are made up of internet The fact remains that Hispanic consumers are connected LCD screens that have been placed in increasingly “on-the-go” and consuming media premium consumer viewing positions in hundreds in new and often more dynamic ways throughout of thousands of venues. ADCENTRICITY, an their day, beyond interactive on-line properties. aggregator of digital out-of-home media and Digital advertising provides the opportunity to expert media strategists in the field, classifies the The screens are controlled by a networked software target more effectively also taking into account landscape of digital out-of-home environments system that allows for instantaneous distribution Targeting is a key strength for digital culture, language, lifestyle, geography and other and screens into 16 main categories and 70 sub- of content and plays a closed loop of customized out-of-home media. considerations that are required for those practicing categories: content. The content provides information and/or Hispanic marketing. entertainment that is relevant to the viewers inside For brands and agencies targeting Hispanic that particular environment, such as health and consumers, digital out-of-home media is PriceWaterhouseCoopers expects total out- lifestyle information narrowcast in doctors’ offices impressively precise. Campaigns can literally be of-home ad spending, boosted by interactive or business news and headlines in the elevators of planned down to a specific screen with specific technologies and improved audience a corporate office building. content in a specific zip code — even at a specific measurement, to sustain an annual growth rate day part and time. The planning data and supporting of 2.5 percent to $8.2 billion in 2013 even after a Interspersed between content segments are research can define who is watching the screens, 4.9 percent decline this year. (9) Out-of-home and targeted advertising spots. As an advertising what they are doing inside that environment (e.g.,

watching a sporting event or having a drink), and Through intricate targeting methods, a digital out- what frame of mind they are in at that moment. of-home network generates more accurate results The ability to hyper-target is amplified even in reaching Hispanics than simply targeting at the further when overlaid with intelligent planning DMA level using national and local media spend data supporting campaign objectives and target by channel. audience profiles. Layering third-party data from organizations such as the U.S. Census Bureau, Scarborough Research, relevant associations, venue audience profiles and research studies from research firms such as Nielsen’s, Forrester and Arbitron provides a high level of profiling information. This creates opportunities for hyper- targeting specific ethnic audiences with unique products while they are in places in which they over-index general target demographics and profiles by two or three times. Engaging a highly receptive consumer. Marketers targeting Hispanics, frequently ask, “Are Hispanic consumers receptive to digital out- of-home media?” Simply put, yes. In fact, Hispanic consumers are among the highest indexing profile of those who notice digital out-of-home media. Hispanic consumers are among the highest indexing profile of those who notice digital out-of-home media. (10) (11)

If the medium effective? vs. the national average. Mobile devices allow advertisers to activate campaigns and motivate their A recent campaign ADCENTRICITY ran for audience, increasing interaction with audiences Samsung with a new mobile handset realized a on the go and extending campaigns across even 49% (12) increase in unaided brand awareness. more channels. A fully connected digital media plan increases your opportunity to reach, engage A study by an ADCENTRICITY partner network and activate the Hispanic consumer. showed an increase of 70%(13) in same store lift for potato chips when DOOH advertising was added to the marketing mix. (14) A recent study for a targeted Verizon program There are multiple ways to activate a mobile showed 79% (14) of respondents noticed the digital program across all media to fit digital out-of-home out-of-home medium above all other forms of campaign objectives: media. • SMS Call-to-Action: votes, alerts, polls, Utilizing both brand and lift (ROI) measures, sweepstakes, contests, promotions, coupons, digital out-of-home media easily connects and call-back request, text4info, surveys translates campaign efforts from brand marketing • Retail & Redemption: Mobile coupons (bar initiatives and consistently passes them on to retail codes), unique PIN numbers (drive2web), merchandising or point-of-purchase initiatives. ticketing ADCENTRICITY describes this media model as • Content Delivery: Rich content, ringtones, wall the “digital path-to-purchase”. papers, games, videos • Mobile Applications: Mobile Internet sites (WAP) & smart phone applications So I’ve found the audience I’d like to Starcom, in conjunction with comScore, reported speak with. How do I start a dialog? that 63% of mobile data subscribers are using mobile phones as a way to access ads or offers Digital out-of-home works especially well in the in other media. Adding a mobile component to a Hispanic market when combined with mobile digital out-of-home campaign helps to drive a call marketing. Hispanics over-index in nine of 10 to action, increase brand awareness and drive categories of engagement with wireless devices point-of-purchase sales. With mobile added to a

digital out-of-home campaign, pre-programmed, out-of-home vehicles, Coke placed traditional About ADCENTRICITY: Testimonials: customized messages to can be sent to specific broadcast TV ads concurrently with their targets who have opted in to receive your digital, mobile and point-of-sale promotions. ADCENTRICITY eases the pain and complexity of “Utilizing ADCENTRICITY, we found digital messages. Mobile provides an additional response The campaigns incorporated key components the buying and planning process of digital out-of- out-of-home to be a very effective vehicle device that fits consumers’ lifestyle and helps build of the Hispanic culture, such as promoting the home media by providing a strategic and holistic in planning and understanding the entire an opt-in database for future campaigns. ‘family meal time’, a big-time event for most solution to media agencies and brands. As digital landscape (of the medium). We found digital Hispanics, as it offers them a chance to be out-of-home to be the most efficient media.” out-of-home media strategists, ADCENTRICITY Taking advantage of digital content together to hear what is happening in each - Dan Jester, GMMB for the Barak Obama provides a high-touch service supported by an Presidential Campaign capabilities. member’s lives. In addition, other popular advanced media platform and in-depth supporting culture concepts included a contest to ‘meet research. Our capabilities enable complex hyper- “We enjoyed working with ADCENTRICITY. The Consider a Hispanic targeted campaign in Texas your favorite Telenovela star’ or famous targeting to deliver advertiser messages only to the client was impressed with our collective ability promoting the jackpot for the Texas state lottery soccer players, as this sport is as important venues and screens that meet the target audience to strategically use digital OOH to target their in grocery stores, gas stations and convenience [to Hispanics] as football is to the American profile and campaign objectives, effectively and consumers and saw the ads in several unique stores. The campaign has been optimized to popular culture.” – Manolo Almogro at Show & efficiently. locations. They have decided, from this point reach the top 10% of zip codes for the Hispanic Tell, New York. forward, to continue to utilize digital OOH for market. The program features a 0:15 second ADCENTRICITY delivers effective advertising most of their key products” advertisement promoting jackpot size, ticket sales Hispanic consumers’ behavior patterns, along campaigns over 80 network partners, 150,000 - Chi lp, Account Supervisor, PHD and draw dates (Wednesday and Saturday). Once with their adoption of technology and media screens and provides 275 million monthly the jackpot reaches an estimated $10 million or consumption trends, makes it clear that there is impressions in locations such as, universities, more, a second content spot is activated, promoting a goldmine of opportunity in creating new touch transit, sports arenas, convenience stores, the new jackpot number until the draw date. points and engagement strategies through digital restaurants / bars, gas stations, office buildings, advertising — especially within DOOH — to the ATMs, grocery stores and more, ADCENTRICITY References: This could be customized even further by venue Hispanic market. drives efficiencies with its “One plan. One buy. 1. OMAC “Day in a Life” Study 2. OMAC “Day in a Life” Study category. For instance, in a grocery environment, One bill.” approach. 3. In reference to The Hispanic (Latino) Market in the U.S.: A Generational the ad message could say: “Imagine your grocery 5 Steps to take when planning a 4. View, 7th Ed., Packaged Facts Data from HispanTelligence, the research arm of Hispanic Business. list after winning $13,000,000. Pick-up your Texas digital out-of-home program. 5. National totals based on input from TNS Media Intelligence, media industry experts, advertising agencies and public Lotto ticket at the check-out”. records ADVenue Media Platform 6. Data from HispanTelligence, the research arm of Hispanic Business. In the development of a digital out-of-home media 7. National totals based on input from TNS Media PQ Media Gas station creative could be contextualized plan, the following should be considered: 8. Data from HispanTelligence, the research arm of Hispanic Business. ADCENTRICITY’s platform is built to complement National totals based on input from TNS Media the same way: “Nice car…what would you be 9. PricewaterhouseCoopers Media Outlook a hallmark of the company’s offering - its high- 10. Arbitron Out-of-Home Digital Video Display Study 2009 driving if you won this Saturday’s Texas Lotto for 1. How digital out-of-home can impact the overall touch service and expertise in planning and buying 11. Dollar estimates in millions for designated market areas based on $13,000,000? Pick-up your ticket at the counter marketing mix as an integrated dynamic information supplied by Spanish-language TV, radio and print outlets. of digital out-of-home - translating into more Numbers are rounded. Data from HispanTelligence, the research arm inside”. channel. of Hispanic Business. Percent change computed from 2006 data. Data efficient, accurate and targeted media buys. from Nielsen Hispanic Station Index. *Estimates as of Jan. 1, 2008. 2. Design contextual and relevant advertising **% of Hispanic households where only or mostly Spanish is spoken by all persons 2 yrs. old+ in the home. 1) Harlingen, Weslaco, Brownsville Since digital out-of-home is Internet driven, messaging, taking into consideration the and McAllen, Texas. Digital OOH DMA Audience Opportunity compiled ADCENTRICITY’s ADVenue represents a through ADVenue. creative can be changed quickly and as often environment where the ad will play. completely new way of approaching advertising in 12. Independent study conducted by Samsung and Chiel Media as needed. New York-based digital creative 3. Look to other media, such as mobile, that 13. Mac’s Milk Convenience Stores, MXN Media digital out-of-home. For the first time, marketers 14. Source: Forrester Research Hispanic Techngraphics ® Consumer agency, Show & Tell, responsible for many of Time works well in conjunction with the strategy. Technology Phone Survey, Q4 2007. *Source: North American. can transparently assess network partners and, Technographics Benchmark Survey, 2007. “Listen to music” and “play Square’s large format digital advertising spots and 4. Set out strategic objectives and accountable games” were not asked comparatively to non-Hispanic consumers. leverage capabilities only available through More info: http://www.forrester.com extended creative solutions, weighs in on creative measurement tactics to gain the proper insight ADCENTRICITY backed by an incredible amount considerations for Hispanic consumers: and impact of each campaign. of applied data, including integrated census 5. Hispanics are a loyal group who are willing to information. “Typical practices of content for out-of-home be engaged by the right brand with the right with [the] Hispanic market focus on key areas; message. But their loyalty is only available promoting a positive lifestyle, strong family to a few companies. Start your digital out-of- values, enjoying life’s simple pleasures and home media campaign today and gain new following your dreams, as evidenced by customers for life, before the competition. Coke’s latest integrated global marketing campaign, ‘Destapa Tus Sueños’ - or ‘unleash your dreams’. Using a combination of various

Jeff J. Atley Recent Clients: VP Marketing & Business Development | Founder - ADCENTRICITY Inc. One of the co-Founders of ADCENTRICITY, Atley is an entrepreneurial business development and marketing specialist with a comprehensive background and experience in marketing, media, entertainment, advertising and mobile marketing. Atley also owned and operated Vibe Marketing Group, a private sales & marketing firm in Toronto, Canada developing brands, international business development agreements, integrated marketing programs and co-operative strategies with several Fortune 500 companies. Residing in Toronto, Canada Atley operates from ADCENTRICITY’s Canadian office and growing business development and marketing strategies across North America.

Digital Hispanics in a physical world - August 2009

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Digital Hispanics in a physical world - August 2009 — Document Transcript

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