More Hispanic ad
$s than we thought

Would you believe $310 million spent in August?

By Kevin Downey

    The amount of money advertisers spend on Spanish-language media has been something of a mystery for the past few years, but thatís starting to change.
   It turns out advertising expenditures are far more than previously reported, with spending in August totaling $310 million, according to TNS Media Intelligence/CMR. That compares to an average $185 million per month in the first half of 2003.
   The jump is due to ad spending increases but also to expanded tracking of advertising activity in Spanish-language media.
   With the release this week of August data TNS/CMR has increased the number of Spanish-language media outlets it tracks, including the addition of Univisionís cable network Galavision to TV networks Univision, TeleFutura and Telemundo.
   The number of local TV stations has gone from eight to 37, while the number of magazines went from four to 31 and the number of newspapers went from two to 30. The number of web sites went up to 14 with the addition of AOL Espanol.
   The increased number of advertising vehicles will help close the gap between the size of the Hispanic population and the amount of money advertisers spend on Spanish-language media.
   In the first half of the year, for example, advertisers put 1.8 percent of ad dollars into Spanish-language TV, while Hispanics accounted for more than 13 percent of the population.
   That gap will start to shrink with TNS/CMRís additional tracking and as more advertisers start putting money into Spanish-language media.
   That is something thatís been happening for the past several years.
   The reasons for that center on the growth of the Hispanic population and its buying power, which TNS/CMR notes is expected to hit $1 trillion by 2008, based on estimates from the Selig Center for Economic Growth.
   Advertisers have taken notice.
   In 2002 ad expenditures on Spanish-language TV grew 20.4 percent over 2001, compared to an overall increase of 4.2 percent for all media types. In the first half of this year ad spending on Spanish-language TV was up 15.4 percent, to $1.1 billion, compared to 6.8 percent for all media types, to $61.7 billion.
   TNS/CMR expects to have year-to-year comparisons for all measured Spanish-language media in December.
   TNS/CMR also has forecast that Spanish-language TV will post the largest percentage increase in 2003 at 16.9 percent, compared to 4.3 percent for all media types.
   As TNS/CMRís forecast suggests, there is still room for growth in Spanish-language advertising. It has been estimated that fewer than half of all brands have advertised in Spanish-language media.
   But a number of advertisers have jumped in, with Procter & Gamble, Sears and Pepsico each spending more than $10 million on Spanish-language media in August. General Motors spent in excess of $9.6 million and McDonald's spent about $4.3 million.
   Top advertising categories are similar to those in English-language media, including automotive, telecommunications, soft drinks and restaurants.
    Yet while advertising in Spanish-language media is growing, there has been a recent softening in the network TV scatter market.
   Merrill Lynch analyst Jessica Reif Cohen, for example, estimates that fourth quarter scatter prices having been running flat to the upfront on the English-language networks. In strong scatter markets advertisers often pay premiums of 15 percent or more.
   While the English-language networks are flat, top Spanish-language network Univision is doing slightly better, with scatter prices running about 4 percent to 7 percent above upfront prices.


November 19, 2003 © 2003 Media Life


- Kevin Downey is a staff writer for Media Life.


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