Phoenix: Healthy,
with Hispanics key
TV and radio spending and pricing are flat to a year ago
By Diego Vasquez
Dec 12, 2011
Phoenix is one of those markets that took a severe hit in the real estate market, but the impact of the downturn on its media economy was short-lived, and while its housing market is still hurting, the media economy is quite healthy.
That’s due in part to the market's sizeable Hispanic population and advertisers' growing desire to target that audience.
Phoenix ranks as Nielsen's No. 13 DMA overall, but it's No. 9 among Hispanics, just behind San Francisco-Oakland-San Jose. The city is the No. 15 overall radio market, but No. 10 with Hispanics, according to Arbitron.
Some 41 percent of the city itself is Hispanic, according to the 2010 census; Hispanics make up about 30 percent of Arizona's population.
That large Hispanic population drives big ratings for Spanish-language TV and radio in the market.
For example, an episode of Univision's telenovela "La Fuerza del Destino" was the No. 4 program in the entire market during the week ended Dec. 4, according to Nielsen, outdrawing most of the English-language competition with 165,000 viewers.
Also, two regional Mexican radio stations ranked among the top 10 in total listeners during November, according to Arbitron.
"Hispanic stations are very competitive," says Joyclyn Faust, media director at Harmelin Media.
Advertisers in all major categories utilize Spanish-language media in Phoenix, and some use Hispanic exclusively, including small businesses located in Hispanic neighborhoods, such as walk-in medical clinics.
Faust notes that some advertisers have yet to target the Hispanic market due to a lack of Spanish-language creative, but that doesn't have to be a roadblock.
"Both TV and radio stations can work with the client to produce Spanish-language spots," she says. "In most cases, stations will not charge for basic production."
Demand and unit pricing on both TV and radio are generally flat to slightly up versus last year, and spending has risen smartly.
During the second quarter of the year, the most recent period available, spot TV spending in Phoenix was up 14.6 percent versus last year, according to Kantar Media, from $68.6 million to $78.5 million.
Local radio spending was up 2 percent from second quarter 2010, from $35.5 million to $36.2 million.
Local cable TV is a popular option for advertisers who have been priced out of high-demand broadcast, though it can still be expensive to book spots on top channels such as ESPN or USA.
"There are so many [cable] networks to choose from," Faust says. "Getting on the air is not an issue, but finding the networks with ratings can be hard. As you can imagine, those top-tier networks will sell out first and cost more."
As with most markets, auto and retail are two of the most active categories in Phoenix, and furniture stores are spending as well. And like most other markets, political advertising will be a big part of what's expected to be a robust year in 2012.
This article is reprinted from the Media Economy Newsletter. You can subscribe by following this
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