Increased Hispanic Advertising to Yield High Returns

Hispanics now comprise 16% of the U.S. population. According to Census Bureau data, Hispanics are also the fastest-​growing minority group. Some marketers have historically allocated a higher percentage of their ad budget for Hispanic advertising than others. The latest research from the Association of Hispanic Advertising Agencies (AHAA) shows these marketers are on the right track and their example may influence more businesses to increase ad spending that targets this demographic group.

The AHAA study was based on  Santiago Solutions Group analysis of Nielsen Company data and finds that after the recession, the top 500 marketers boosted spending on Hispanic media to $4.3 billion in 2010. Historically, companies have allocated about 5% of their total  traditional media (print, TV, radio) buys to the Hispanic market. In looking at these numbers, researchers labeled best-​in-​class industries as those that allocated 14.2% of their ad budgets to Hispanic media. Key industries that spend heavily to reach Hispanics through their favorite media channels include:

  • Consumer package goods
  • Telecommunications and pay TV
  • Auto insurance
  • Financial services
  • Beer

This study also found that some industries have been under spending with respect to the Hispanic market. These industries, labeled laggards, spent less than 1% of advertising on Hispanic media. The casual restaurant sector, private investment firms and travel providers are among these industries.

The researchers also determined that companies which allocated 25% of total ad spend to Hispanic media over a 5‑year period can generate sales increases of up to 6.7%. Most important, they say, is the need for advertisers to commit to this market and consistently advertise to build their visibility and reputation.

[Research: Advertising 2011 Budget Alignment. Ahaa​.org. 13 Oct. 2011. Web. 24 Oct. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.