Digital Hispanics In A Physical World

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    Digital Hispanics In A Physical World - Presentation Transcript

    1. 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 popu- lation of today and tomorrow. Digital media brings the promise of better connections and deeper relationships. August 2009 Digital OOH Media Strategists White Paper
    2. 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
    3. increases of 36%.(5) In comparison, out-of-home transition to a hefty portion of the annual spend Interspersed between content segments are media makes up a scant 2%(6) of the national by 2012, when it will total nearly $6 billion, and targeted advertising spots. As an advertising Hispanic targeted ad spend, during a time when account for nearly half (46.4%) of the entire out-of- opportunity, digital out-of-home is a highly effective, place-based media, which includes both digital home advertising marketplace. That compares with direct communication channel, which speaks with video and digital signage in a variety of out-of- a tepid 3.8% rate of annual growth for traditional consumers in a contextual manner. For instance, home venues is projected to grow 13.2% CAGR outdoor ad spending through 2012. (9) reaching beyond convenience stores and grocery through to 2013 according to Veronis Suhler stores, an ad for portion-controlled chocolate bars, Stevenson (VSS).(7) Out-of-home and outdoor media present different targeted to Hispanic females, would be contextually challenges when planning targeted media relevant in fitness centers (where over 56% of the campaigns, achieving a deeper level of granularity audience is female, they’ve just worked out and and, more importantly, a contextual advertising could use a small reward). With digital out-of- opportunity in highly indexed ethnic target areas. home, marketers can select contextually relevant environments to begin their conversations not So why is Outdoor so “outside” the norm in Hispanic only at the point-of-purchase but also on the path- communication initiatives? The unique behavioral to-purchase. Marketers can then select media modeling of Hispanic consumers may provide only in zip codes that have a higher than national some rationale behind the tiny 2% allocated to out- average Hispanic population. This approach of-home advertising spend vs. the national annual heavily over-indexes the audience and eliminates spend. The cost of static out-of-home production media waste. and distribution and the difficulties for marketers in identifying advanced targeting tools and mediums may also be contributing factors. Reaching Hispanics where they are and when it matters. Digital out-of-home hospitality venue. E-Cast. 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. (8) The fact remains that Hispanic consumers are Digital out-of-home screens can be found in increasingly “on-the-go” and consuming media everything from airports, convenience stores, in new and often more dynamic ways throughout pharmacies, colleges, restaurants, bars, nightclubs, their day, beyond interactive on-line properties. gas stations and sports arenas to bathrooms, office Digital advertising provides the opportunity to buildings, health care facilities, shopping centers, target more effectively also taking into account transit stations and more. Targeting is a key strength for digital culture, language, lifestyle, geography and other The screens are controlled by a networked software out-of-home media. considerations that are required for those practicing The media networks are made up of internet system that allows for instantaneous distribution Hispanic marketing. connected LCD screens that have been placed in of content and plays a closed loop of customized For brands and agencies targeting Hispanic premium consumer viewing positions in hundreds content. The content provides information and/or consumers, digital out-of-home media is Veronis Suhler Stevenson, and consultant PQ of thousands of venues. ADCENTRICITY, an entertainment that is relevant to the viewers inside impressively precise. Campaigns can literally be Media projects the “alternative” out-of-home media aggregator of digital out-of-home media and that particular environment, such as health and planned down to a specific screen with specific sector will grow at a compound annual rate of expert media strategists in the field, classifies the lifestyle information narrowcast in doctors’ offices content in a specific zip code — even at a specific 22.5% through 2012, which is considerably faster landscape of digital out-of-home environments or business news and headlines in the elevators of day part and time. The planning data and supporting than the overall growth of the U.S. advertising and screens into 16 main categories and 70 sub- a corporate office building. research can define who is watching the screens, marketplace. Based on those projections, VSS categories: what they are doing inside that environment (e.g., estimates alternative out-of-home ad spending will
    4. 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)
    5. 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
    6. 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: 1. OMAC “Day in a Life” Study This could be customized even further by venue Hispanic market. drives efficiencies with its “One plan. One buy. 2. OMAC “Day in a Life” Study 3. In reference to The Hispanic (Latino) Market in the U.S.: A Generational category. For instance, in a grocery environment, One bill.” approach. View, 7th Ed., Packaged Facts the ad message could say: “Imagine your grocery 5 Steps to take when planning a 4. Data from HispanTelligence, the research arm of Hispanic Business. National totals based on input from TNS Media list after winning $13,000,000. Pick-up your Texas digital out-of-home program. 5. Intelligence, media industry experts, advertising agencies and public records Lotto ticket at the check-out”. 6. Data from HispanTelligence, the research arm of Hispanic Business. ADVenue Media Platform National totals based on input from TNS Media In the development of a digital out-of-home media 7. Veronis Suhler Stevenson, and consultant PQ Media, 22nd edition of VSS’ annual Communications Industry Forecast, Media Post 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 a hallmark of the company’s offering - its high- 9. Veronis Suhler Stevenson, and consultant PQ Media, 22nd edition of driving if you won this Saturday’s Texas Lotto for 1. How digital out-of-home can impact the overall VSS’ annual Communications Industry Forecast, Media Post touch service and expertise in planning and buying 10. 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 ADCENTRICITY’s ADVenue represents a and McAllen, Texas. Digital OOH DMA Audience Opportunity compiled creative can be changed quickly and as often environment where the ad will play. through ADVenue. completely new way of approaching advertising in 11. Independent study conducted by Samsung and Chiel Media as needed. New York-based digital creative 3. Look to other media, such as mobile, that 12. Mac’s Milk Convenience Stores, MXN Media digital out-of-home. For the first time, marketers 13. 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
    7. 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.
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