WASHINGTON, April 19 /PRNewswire/ -- At a time when corporations
are looking for new marketing opportunities and only hoping to grow
sales in mature industries, many companies are missing a major
opportunity when it comes to reaching Hispanic consumers, reports a
new study released today by the Association of Hispanic Advertising
Agencies (AHAA). The study reveals that the majority of America's top
advertisers are significantly underinvesting in their efforts to reach
Hispanic consumers.
The study, Missed Opportunities: Vast Corporate Underinvesting in
the US Hispanic Market, indicates that in the past three years nearly
two-thirds (64%) of top companies targeting Hispanic consumers have
invested less than 3.2 percent of their overall advertising budgets.
Corporations in the study that received the top scores are approaching
or exceeding the recommended target of eight percent of overall
advertising budget. Some of the reports findings include:
* While Hispanics represent about 13.6 percent of the U.S.
population, in
aggregate America's leading advertisers are allocating
an average of
2.4 percent of their measured media advertising
resources targeting
Hispanics in the past three years.
* Relative to their overall advertising resources, on average, food
and
beverage products, food services, personal care,
general merchandise,
insurance and telecommunications companies have
invested the most in
marketing to Hispanics while computers makers,
software,
travel/entertainment, pharmaceuticals, the U.S.
government, auto
makers, securities and specialty retailers have
invested the least.
* With heightened awareness on the value of the U.S. Hispanic
market,
since 1999 leading advertisers have almost doubled
their allocation of
advertising resources to Hispanics from 1.8 percent of
total
advertising dollars in 1999 to 3.2 percent in 2001.
* By 2001, the number of leading advertisers still grossly
underinvesting
relative to the threshold needed to be effective in
reaching the
Hispanic market had dropped to 42 percent.
"This study reveals that corporations who are serious about
reaching Hispanic consumers must do more," said Horacio Gomes,
president Association of Hispanic Advertising Agencies. "As the true
experts in Hispanic marketing, AHAA agencies are committed to helping
corporations reap vast rewards by reaching the Hispanic market. We
have learned through countless examples that both spending and the
right communications strategy have to be in place in order to have a
successful Hispanic campaign."
Two-thirds of Major Advertisers Missing Opportunities
The study was revealed during AHAA's 12th semi-annual conference.
AHAA unveiled a provocative advertising campaign targeting senior
corporate executives that will soon be running in major business
publications. The creative is designed to underscore the main theme
that if corporations don't have a strategy for reaching Hispanic
consumers, they don't have a future.
"The low scores in this study demonstrate that companies are not
placing proper value on the opportunities the Hispanic market offers,"
said Carlos Santiago, co-chair, Santiago & Valdes Solutions, strategic
market consultants who conducted the research. "Shareholders should be
concerned with corporate America's inertia in seeking out Hispanic
consumers. The companies with the best understanding of the Hispanic
market's contribution to profitable revenue growth will be in the best
position to thrive over the long-term."
Using SRC 2002 data tracking Hispanic adults' language-preference,
and media consumption, Santiago & Valdes Solutions determined that for
optimum effectiveness in reaching the Hispanic market, advertisers
should devote at least eight percent of their advertising dollars to
Hispanic advertising and marketing. Results in this report were
obtained by comparing the percentage of measured media spending on
Hispanic Spanish and bi-lingual advertising and comparing this to the
eight percent optimum spending ratio.
About AHAA --
http://www.ahaa.org/
The Association of Hispanic Advertising Agencies is the national
organization of firms that specialize in marketing to the nation's 40
million Hispanic consumers, the most rapidly growing segment of the
American population. AHAA promotes the strength of the Hispanic
marketing and advertising industry to the private and public sectors.
AHAA agencies offer a unique blend of cultural understanding,
market intelligence, proven experience and professionalism that
deliver Hispanic market success for clients. AHAA helps organizations
gain market share, increase revenue and grow profits by building the
bridges and delivering the messages to reach America's Hispanic
consumers, who together have an estimated buying power of $630
billion.
About Santiago & Valdes Solutions --
http://www.santiagovaldessolutions.com/
Santiago & Valdes Solutions offers leading consumer-focused
companies experienced corporate-wide strategic advice and project
management for mining opportunities in the U.S. multi-cultural
markets. To attain optimal bottom-line results for clients, Santiago &
Valdes Solutions combines vision, integrated strategy, deep cultural
insights, market planning and product innovation with operational
readiness evaluations followed by hands-on help to close internal gaps
across functional areas which tend to impede in-culture marketing
efforts from fully succeeding. Santiago & Valdes Solutions is
headquartered in San Francisco.
For more information, contact: Natalie Judd, (703) 245-8046,
njudd@amg-inc.com
Jessica Joisten, (703) 610-0203,
jjoisten@amg-inc.com
Source: Association of Hispanic
Advertising Agencies
Contact: Natalie Judd, +1-703-245-8046,
njudd@amg-inc.com, or Jessica
Joisten, +1-703-610-0203,
jjoisten@amg-inc.com, both for the Association of
Hispanic Advertising Agencies
Website:
http://www.ahaa.org/
http://www.santiagovaldessolutions.com/
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