More Hispanic ad
$s than we thought
Would you believe $310 million spent in August?
By Kevin Downey
of money advertisers spend on Spanish-language media has been
something of a mystery for the past few years, but thatís starting
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
That is something thatís been happening for the past
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
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
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
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
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
November 19, 2003 ©
2003 Media Life
Kevin Downey is a staff writer for