Last week, I highlighted a report indicating that fewer than half of all marketers specifically target Hispanic consumers. Another report, this one by Nielsen, notes that marketers in general dropped their spending on Hispanic and African-American advertising last year. But the declines, 4.7% for Spanish language and 7.3% for African-American media, were not as steep as the overall ad market drop of 9% for the year.
Nielsen figures show that cable TV was the one industry segment to benefit from increased multicultural advertising. Spanish language cable TV reported total ad revenue of $426 million while advertisers increased their spending on the African-American audience on cable TV to $728 million in 2009. Currently, the Spanish language network TV segment is the largest medium target that demographic with total spending of $2.866 billion. For the African-American audience, spot radio captured the most money, coming in at the end of 2009 with $747.8 million in revenue.
Categories that showed growth for the Spanish language audience in 2009 and which may see continued growth in 2010 were:
- Restaurants – quick service $334.6 million
- Satellite/Communications services $238 million
- Legal services $124 million
Categories with the highest growth rates for the African-American audience in 2009 were:
- Restaurants – quick service $86.9 million
- Motion picture — $71.9 million
- Insurance $28.6 million
Despite the general pullback in the ad market last year, companies continue to fund campaigns targeting the multicultural marketplace. As the demographics of the U.S. change, marketers will increase the amount of money they spend on emerging demographics.
[Source: Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market. Nielsenwire. Nielsen.com. 12 Mar. 2010. Web. 7 Apr. 2010]