Digital Hispanics In A Physical World - Presentation Transcript
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
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 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
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:
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
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.
15% of the US population and growth projections are more
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 discipline 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. less
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