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Hispanic Advertising Allocations Equate to Corporate Revenue Growth
Context

Marketing strategies are under
great scrutiny in response to the
explosive growth of Multicultural
populations.
A...
Objective

Online survey among 321
marketing professionals from
client-side, general and
multicultural specialized ad
agen...
Getting Total Market Right
Overall AHAA Platform Phases

IMPROVE
Marketing
Outcomes
1. TM Benchmark
• Learn broad
trends
•...
Most Advertisers Are Familiar with
Term Total Market Strategy
No

Yes
78%

Q1: Are you familiar with the term “Total Marke...
Unaided Definitions Cover a Very
Wide Spectrum

6
Total Market Strategy is in the eyes
of the beholder; no standard exists
Integration v. Adaptation
Integrating Multicultur...
Directors to C-Suite Execs Share
Common Ground of What TM Strategy
Should Be
• Inclusive of Caucasian, Hispanic, African A...
9 in 10

believe the Primary Purpose of a
Total Market Strategy revolves around…

Effectiveness

Budget effectiveness
Mark...
The Jury Is Out for Advertisers

–Half Believe TM Strategy will be Positive
While more than half believe TM Strategy will ...
About Half Of
Advertisers
Say They Are
Practicing
Some Level of
TM Strategy
Q5: Does your company currently practice a Tot...
About Half Are Applying TM
Strategy Across Whole Company
Another half employ TM at a department level
My company employs T...
No
46%

54%

Almost Half Don’t Practice
Total Market Strategy

There appears to be quite a bit of uncertainty when it
come...
Total Market Strategy Tends to be
Implemented in Tiers
3 Tiers of Implementation
Other 14%
Promotion: Trade 43%
Digital 46...
TM Strategy Tends to be Employed
for Select Brands; Not Across All
For one test
brand, 14%

Across all
company brands,
35%...
Org Structures Vary Widely
–Few Spread TM Function Throughout
2 in 3 rely on Champion or
Center Of Excellence

Each brand
...
Total Market Is Proving
Incremental Results
25% No, no measurable results to date…
too soon to see results

22% Yes, incre...
Most Expect to Expand
Total Market Initiatives

Slightly

expanding
initiatives

Still
measuring &

testing

Other
17%

2%...
Findings Conclusions
• Multicultural Marketing has evolved
• Total Market Approaches have emerged and are expanding
among ...
Implications
•

TM can lead to superior corporate

performance
•

Currently, TM is largely
misunderstood and confusing

•
...
We invite you to join the conversation and visit AHAA’s
website Research page at
http://ahaa.org/default.asp?contentID=27
...
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AHAA Total Market Benchmark Study Advertisers Preliminary Findings - November 4, 2013

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TOTAL MARKET BENCHMARK RESEARCH
Recently, marketers have been experimenting with how best to approach the “total market” to realize synergy and efficiency in programs aimed at the general market and diverse segments. AHAA: The Voice of Hispanic Marketing is conducting benchmark research on the total market approach and how companies are executing it, asking questions such as: are you currently executing a total market strategy in your marketing efforts? Why or why not? What does -total market- mean to you? Have your efforts been successful? Importantly, this is not solely a Hispanic survey: it also includes African-American and Asian respondents. The results will be broad and inclusive and help shape the total market industry standard.

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AHAA Total Market Benchmark Study Advertisers Preliminary Findings - November 4, 2013

  1. 1. Hispanic Advertising Allocations Equate to Corporate Revenue Growth
  2. 2. Context Marketing strategies are under great scrutiny in response to the explosive growth of Multicultural populations. As many companies seek to reconcile and recalibrate efforts toward multiple market segments, questions arise with regards to the potential of defining and addressing a “Total Market.” 2
  3. 3. Objective Online survey among 321 marketing professionals from client-side, general and multicultural specialized ad agencies, media buying agencies, p-r and consulting firms. This preliminary report only reflects Advertisers (n=116) sample. AHAA: The Voice of Hispanic Marketing will conduct benchmark research on the Total Market approach and how companies are executing it. AHAA’s goal is to collaboratively determine learnings and best practices for advertisers and marketing services firms. Agencies and combined insights will be reported at a later time 3
  4. 4. Getting Total Market Right Overall AHAA Platform Phases IMPROVE Marketing Outcomes 1. TM Benchmark • Learn broad trends • Share Prelimi Advertiser Findings • Launch @ ANA M/C Nov ‘13 2. Best Practices Roundtable • Coalesce/explore deeper learnings to Identify Best Practices • Share Best Practices @ AHAA April ‘14 3. Education • Disseminate & develop education platforms • Webinars, Videos • Summer–Fall ‘14 4
  5. 5. Most Advertisers Are Familiar with Term Total Market Strategy No Yes 78% Q1: Are you familiar with the term “Total Market Strategy” referring to a marketing approach? (n=116) Q2: What does a “Total Market Strategy” mean to you? (open ended) 5
  6. 6. Unaided Definitions Cover a Very Wide Spectrum 6
  7. 7. Total Market Strategy is in the eyes of the beholder; no standard exists Integration v. Adaptation Integrating Multicultural into every step of the business process and marketing execution to fully take advantage of growth potential across Hispanic, Multicultural, Millennial & Caucasian. Everything comes out of one pie—the same idea is adapted to different audiences; the same budget is used to reach all the segments; some say English only is enough to effectively reach nearly all Addressing Nuances v. Appeal to a multicultural nation Understanding upfront the market in totality as well as segment specific to ensure that nuanced needs & opportunities are effectively addressed across 360 strategies-tactics Less targeting to particular ethnic consumers, MORE leveraging broader strategies that will appeal to all in new multicultural marketplace. Q1: Are you familiar with the term “Total Market Strategy” referring to a marketing approach? (n=116) Q2: What does a “Total Market Strategy” mean to you? (open ended) 7
  8. 8. Directors to C-Suite Execs Share Common Ground of What TM Strategy Should Be • Inclusive of Caucasian, Hispanic, African American , Asian American and LGBT • Reflective of the diversity of US and impact of multiculturalism on America’s new ‘total’ culture • Use cultural cues and elements that come from the experiences of different ethnic groups • Use diverse talent • Draw on universal truths that can span across segments • Lead to efficiencies and increased effectiveness 8
  9. 9. 9 in 10 believe the Primary Purpose of a Total Market Strategy revolves around… Effectiveness Budget effectiveness Marketing effectiveness 19% 36% Half emphasize Budgets Efficiency Communication efficiencies 19% Budget efficiencies 13% Half emphasize Marcom Q3:What do you believe is the primary purpose of a Total Market Strategy? (n=80) Q4: Do you believe there is a secondary benefit to a Total Market strategy? (n=74) 9
  10. 10. The Jury Is Out for Advertisers –Half Believe TM Strategy will be Positive While more than half believe TM Strategy will ultimately benefit their company, 44% are concerned about implementation A positive thing that will ultimately benefit my company Can be good or bad based on how it is each client executes it 53% 36% A nice idea but not realistic in 8% implementation Q32: Do you believe that Total Market strategy is… (n=53) 10 10
  11. 11. About Half Of Advertisers Say They Are Practicing Some Level of TM Strategy Q5: Does your company currently practice a Total Market strategy? (n=71) Q13: If select (a) in Q5… Select the statement that applies best: (n=37) 54% 11
  12. 12. About Half Are Applying TM Strategy Across Whole Company Another half employ TM at a department level My company employs Total Market… 49% 3% 3% 22% 27% Adv only > Mktg Dept Across the whole company Mktg Dept only 51% Q5: Does your company currently practice a Total Market strategy? (n=71) Q13: If select (a) in Q5… Select the statement that applies best: (n=37) 12
  13. 13. No 46% 54% Almost Half Don’t Practice Total Market Strategy There appears to be quite a bit of uncertainty when it comes to practicing TM strategy Exploring Ignoring My company is investigating TM but is not sure whether this strategy will be implemented in the future My company has not thought about a TM strategy at all yet 45% 36% Planning 15% My company My company is planning has decided not to to implement implement a TM strategy within the next year Q5: Does your company currently practice a Total Market strategy? (n=71) Q6: If no to Q5, please select the statement that applies best to your company… (n= 33) No Go 3% a TM strategy now or in the foreseeable future 13
  14. 14. Total Market Strategy Tends to be Implemented in Tiers 3 Tiers of Implementation Other 14% Promotion: Trade 43% Digital 46% Marketing Disciplines PR/Communications 46% Promotion: Consumer 65% Ad spending: Media Planning 65% Where What Ad spending: Media Buying 78% Ad messaging 84% Q14: If select (a) in Q5… Within marketing and/or advertising, select all areas where Total Market has been implemented (n=37) 14
  15. 15. TM Strategy Tends to be Employed for Select Brands; Not Across All For one test brand, 14% Across all company brands, 35% Q15: If select (a) in Q5… My company employs a Total Market strategy… (n=37) 15 For a few select brands, 54% 15
  16. 16. Org Structures Vary Widely –Few Spread TM Function Throughout 2 in 3 rely on Champion or Center Of Excellence Each brand responsible 29% COE w/ Budget Ctrl 14% COE Consultative 23% Individual Champion across brands 33% Q17: If select (a) in Q5… How does your company structure to address Hispanic marketing in particular? (n=36) 16
  17. 17. Total Market Is Proving Incremental Results 25% No, no measurable results to date… too soon to see results 22% Yes, increased market share 66% 16% Yes, increased efficiency 13% Yes, revenue growth 9% Yes, increased ROI 6% Yes, increased distribution 6% No, no measurable results to date… TM may not be impacting business metrics 3% Yes, and TM is closely monitored along with other major corporate initiatives Q37: Have you or your company experienced any positive Total Market business results to-date (check all t hat apply: (n=32) 17
  18. 18. Most Expect to Expand Total Market Initiatives Slightly expanding initiatives Still measuring & testing Other 17% 2% Scaling back and re-strategizing 27% 54% Q36: One year from now do you believe: (n=41) 18 18
  19. 19. Findings Conclusions • Multicultural Marketing has evolved • Total Market Approaches have emerged and are expanding among half of advertisers – mostly driven by messaging, media and bottom line efficiencies • In proper environments, TM often leads advertisers to – incremental topline growth and marketing impact • Org structures abound but most maintain COE/Champion • Distinct nearly opposite perspectives are evident – from leveraging growth optimizing nuances to single common denominators 19
  20. 20. Implications • TM can lead to superior corporate performance • Currently, TM is largely misunderstood and confusing • TM ought to be defined more uniformly • There is tremendous need for learning and sharing guidelines and criteria for proper implementation 20
  21. 21. We invite you to join the conversation and visit AHAA’s website Research page at http://ahaa.org/default.asp?contentID=27 where you may: DOWNLOAD SUMMARY PDF WATCH FINDINGS PRESENTATION READ PRESS RELEASE For questions and comments, please contact: Horacio Gavilan, President of AHAA, at 703-296-5069, hgavilan@ahha.org or Carlos Santiago, Chair, AHAA Research Committee, at 818-736-5661, carlos@santiagosolutionsgroup.com 21

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