Spanish-Language Websites Explode!

Home , ESPN Deportes La Revista, La Voz (Phoenix), Rumbo (newspaper), Rumbo (Texas newspapers)

FOR ADVERTISING, PR AND Year 5 | Number 24 PUBLISHING PROFESSIONALS

PortadaT RACKING THE E XPANSION OF H ISPANIC P RINT AND D IGITAL M EDIA February / SPANISH-LANGUAGE March 2007 WEBSITES EXPLODE! The proliferation of Spanish-lan- Those that are already present are step- guage websites is hitting home with ping-up site features, while those that PORTADA-ONLINE everyone involved in online media and have been English-language only are in the corporate marketing world. making moves to get their websites Check out daily updates at Media properties need to get enough adapted for the Hispanic market. content online to draw readers, while Tortillas Guerrero - Mission Foods' www.portada-online.com advertisers need to reach Hispanics via Hispanic brand, its English brand online media. “The Spanish-dominant being Mission Tortillas – just launched portion of the Internet is growing the a Spanish-language website in January.

PORTADA´S SUPPLEMENT ON most and we recognize the value of the Camelot is Mission Foods’ agency. R DIRECT MARKETING TO HISPANICS online component,” says Jim Lucero, Another company looking to deve- head of multicultural marketing at San lop their Spanish-language presence > In-Store Signage: Packing Antonio -based advertising agency online is Vermont Teddy Bear Factory. the Aisles Camelot Communications. Tom Funk, E-Commerce Manager for (page 37) Every day, we see more Spanish- language websites getting into the mix. (continued on page 10) > Offer Analysis: Bilingual Baby Books (page 39)

> New Hispanic Lists (page 40) Retail Advertising Boxed Out: Retailers Under-Invest 15 Latest National Advertising Campaigns Targeting Hispanics in Hispanic Media

Retail is the bread and butter for the supermarket/drug store and retail 20 Hispanic Yellow Page Publishers the print and digital media industries store circulars, provides those Build National Franchises in a Red and Hispanic media executives are Hispanic households with a shop- Hot Market increasingly aware of the important ping mall of sales opportunity,” says role they can play in connecting retai- Rudy Zaccagno, Hispanic Publications lers with Hispanics, the fastest growing Director at Hora Hispana/Viva New 24 Southwest Market Profile: demographic in the U.S. York. Both publications are published Publishers and Advertisers Fight Both Viva New York (English, by the New York Daily News. for the Lone Star State Daily News full run, monthly) and Examples of retailers adapting their Hora Hispana (Spanish, circ. 250,000, store formats and launching Hispanic- weekly) are geared for retail adverti- specific marketing campaigns abound: 30 Men's Magazines: sing. Hora Hispana, which includes all More than Machismo (continued on page 16) 1 Rumbo mandan lunes o martes PORTADA-ONLINE (www.portada-online.com) Get the latest news on the expansion of print and digital media in the Hispanic market by checking out our website and subscribing to our targeted print and digital media e-newsletters.

News and Trends

Direct To Gives Pharmaceutical Advertisers a Venue

irect To, which publishes medical Nittoli on board as Editor in Chief of ailing loved ones seeking help,” said counseling guides, recently signed a Direct To.” Hispanic Works President William Ortiz. D deal with Elsevier Publishing Co. As part of the program, the advertiser The Pharmaceutical Manufacturers and to begin selling a polybag product to the gets a cover wrap around the Elsevier publi- Researchers Asociation (PhRMA) has also pharmaceutical industry, which is then sent cation and a couple of ads within the maga- sought to reach out to the Latino commu- to Elsevier subscribers, predominantly doc- zine. Once the campaign is complete, Direct nity by enlisting Mayte Prida, a former tors and healthcare providers. Elsevier is the To subsidizes an audit of the magazine to Univision news anchor and cancer survivor, foremost publisher of medical journals, with determine readership statistics, response to be their spokesperson. Ms. Prida is over 1,400 titles in its portfolio. rates, etc. currently doing television and radio spots Under the deal, Direct To sells 1,000- The company has signed deals with on Univision and Telemundo, as well as copy bundles to pharmaceutical companies Novo Nordisc and Unilever, and is in talks print ads promoting the PPA (Partnership wishing to advertise to healthcare professio- with Campbell Soup. for Prescription Assistance) program, which nal. The bundles are then distributed to offers reduced-price or free medication 1,000 of these healthcare professionals. The ...AND PHARMACEUTICAL to low-income families. “It's been a real advertiser pays a price of $49.00 per subs- COMPANIES BROADEN HISPANIC blessing for me. Just getting to see the criber reached, or about $49,000 per pro- OUTREACH people and how grateful they are is really gram. The copy of Direct To is bundled Seeking to strengthen ties with the inspiring,” said Ms. Prida, who has also with whichever Elsevier publication is best Hispanic community, pharmaceutical com- been traveling around the country to the suited to the healthcare professional's area panies are stepping up their Hispanic outre- major Hispanic markets to promote of expertise. ach efforts. PhRMA's outreach efforts. Direct To is expanding into the HispanicWorks, a New York-based Hispanic market with a bilingual product agency, has been managing Spanish-langua- called Dirija Al, which is a translation of ge collateral and website content for two ANTI-GRAVITY TRICK: FIGHTING the medical content offered in Direct To. drugs, Ortho Evra, the birth control patch, FALLING CIRCULATION The mix of English-only to bilingual copies and Topamax, the anti-migraine drug. “It's It's no secret that paid circulation is determined by the advertiser. great because it really is an empowering tool publications have been weathering some “It's really quite exciting, because this is to be able to access this information in tough times recently, stemming from falling a product that the Hispanic market really Spanish. Given that Latinos are more likely circulation rates and decreasing advertiser needs, and we're happy to satisfy that to self-medicate than to go to a doctor, this investment. In the general market, paid demand,” says Direct To publisher Nicholas information can be very helpful for con- circulation for dailies contracted 2.8%. in Minicucci. “We're also pleased to have John cerned family members trying to aid their 2005. Even Hispanic newspapers, which

3 News and Trends R

PUBLISHER had been the crutches of a hobbled to 83,178. Marcos Baer industry, have begun to give way under the However, a significant and positive EDITOR enormous pressure of meeting both adverti- exception of the paid circulation crowd Alex Andrews ser and consumer demands. seems to be NYC's own El Diario La In the past year, some papers have deci- Prensa (Impremedia, Daily, Spanish, CORRESPONDENTS ded to transition to free circulation, like 53,090) which, despite its paid circulation Carrie Barnes Hoy in NYC (Tribune, Daily, Spanish, model, posted significant gains in both cir- (USA - Los Angeles) Heather Norgaard 60,000) and El Nuevo Día Orlando (Grupo culation and readership. According to the (USA - St. Louis) Ferre Rangel, Daily, Spanish/Eng, 25,000). audit report, the paper's daily circulation Ana Lydia Valdes Others have maintained their paid circula- jumped 5.8% to 53,090, and its weekend (Mexico) tion model and seemingly paid the price: numbers grew 8.4% to 36,712 copies. Its Ivonne Ramírez (Argentina) According to Audit Bureau of Circulation readership surged 25% over last year's figu- Angela Sandoval (ABC), LA's La Opinión (Impremedia, res, clocking in at 266,000 daily readers, (Spain) Los Angeles) daily circulation slipped 2.5 according to Scarborough. % to 121,572 copies daily, and Miami's Publisher and CEO Rossana Rosado SALES AND MARKETING El Nuevo Herald's circulation fell 2.8% attributed the growth to a number of deve- Annette Fielman (516) 396-0179 Nicolás Miranda RESEARCH Agustin Wydler FOCUS ON: GOLDMAN SACHS' HISPANIC STRATEGY Tomas Wydler DESIGN A Q&A with Latin Force CEO David J. Pérez on his newly www.dafnedesign.com.ar forged partnership with Goldman Sachs, for whom Audit by he will help identify and assess potential acquisition opportunities in the Hispanic marketing services sector.

Copyright: Portada®2007 Q: How did this partnership come about? that will continue to develop for the No part of Portada® may be copied, reproduced A: Well there are really three things that foreseeable future, and they look for- or broadcast in any form without prior permission. attracted me to Goldman Sachs: First, ward to being a part of that growth. Comments by sources cited in Portada® have been directly obtained from them, unless its is I've known them for a number of years, explicitly noted otherwise. Portada® is not so there is a good relationship there. Q: What other criteria must properties affiliated with any other publication, media Second, they're very savvy investors of interest meet, other than the $5 group, advertising agency or any other institution. Portada® is published by Contenido LLC in New with a proven track record of success million minimum revenue requirement, York City. Portada® publishes a weekly e-newslet- and a long view of the Hispanic market. to be considered for acquisition? ter, a bimonthly print issue (except for the summer And finally, they have all of the financial A: We're looking for strong verticals of months, 5 times a year) that is direct mailed to subscribers and, daily, the website www.portada- backing one could ever want to help PR, Advertising, Creative, Research, online.com. A one year subscription of Portada® build and develop these companies to and Digital services. Another crucial in PDF format costs US $189, including access to their fullest potentials. factor is that the companies have strong the Portada® website, (www.portada-online.com) management and leadership. We view with round-the-clock-breaking news and its articles archive. A subscription to Portada® printed Q: What geographical markets is these acquisitions as building blocks in version (delivered by regular mail) costs an addi- Goldman Sachs interested in exploring a puzzle. Some will be merged, but the tional US $10 (Total US $199). Single issues of for this venture? end game is to have all of these compa- Portada® cost US $30. To subscribe please send a check payable to Portada, Park West Station, A: All of the major markets across the nies serve complimentary functions that P.O.B 20526, NY, NY 10025, USA. For payment country: Miami, L.A., Chicago, Texas, will strengthen the standing of each in by wire transfer send funds to Citibank N.A. 399 and New York, to start with. Our focus the bigger picture. Park Avenue, NY, NY 10022, USA Account is really on finding best-in-class servi- name: Portada, Account #22072064 Routing # 021000089. ces, as well as establishing a national Q: What sort of marketing services are For reprints information and prices please contact footprint. you most interested in exploring? [email protected]. A: Digital services and the capability to Please send address changes to Portada, Park West Station, P.O.Box 20526, NY, NY 10025, USA. Q: What sort of time-frame are you wor- produce websites and digitally-based king with to make these acquisitions? media properties. We're also looking at MISSION A: This is the beginning of an endeavor the possibilities that exist in the mobile Portada® seeks to increase knowledge about the U.S. Hispanic and Panregional (Spanish- that will be years in the making. arena and the ability to wage digital speaking world) print/digital media, advertising Goldman Sachs sees the Hispanic mar- campaigns on mobile platforms. and content markets Portada also aims to improve keting services arena as a growth area the performance of marketing professionals, media buyers, publishers, PR professionals and researchers.

4 News and Trends

lopments, such as the launch of the paper's Camelot's biggest Hispanic account is when it streamed the event live via its entertainment and weekend guide, La Southwest Airlines. mobile platform. Vibra, which coincided with the Latin “Thumbplay plans to expand its website Grammy's. She also credited the sweeping Thumbplay.com to have a Spanish-language editorial coverage of this year's FIFA THUMBPLAY TRIES ITS HAND AT section of the website,” Patricia Priola, World Cup with driving up sales. Beyond THE HISPANIC MARKET Marketing Project Manager of Thumbplay that, Rosado stated, it is the superior edi- Thumbplay, a New York-based online tells Portada. The company aggregates, pro- torial quality – which has garnered various retailer of mobile entertainment content is motes and delivers mobile content directly awards – that was responsible for the pap- planning to enter the Hispanic market. to members via Thumbplay.com. The site er's growth. Thumbplay filled an important role And so the trend continues that while during the November 2nd Latin Grammys, paid circulation figures continue to go down, free circulation figures climb, cau- sing one to wonder: just how much is that fifty-cent cover price worth?

CAMELOT COMMUNICATIONS EXPANDS ITS HISPANIC OPERATIONS Dallas, TX-based Camelot Communications, the largest independent media and strategy advertising agency in U.S., is expanding its Hispanic team. Rodrigo Vallejo starts as Camelot's new Hispanic Media Account Director. Vallejo will work on the company's Hispanic brands including Tortillas Guerrero (Mission Foods), Compass Bank, 7 Eleven and Blockbuster (this last account has a very limited Hispanic advertising activity). Jim Lucero, Managing Director and Head of Multicultural at Camelot Communications, tells Portada that in the spring of 2005 he merged the Lucero Agency with Camelot Communications (owned by Tom Calahar). At the time Camelot was already doing $70 million in Hispanic billings a year.

HISPANIC ACCOUNTS Camelot has three accounts with large Hispanic budgets, Lucero notes. Compass Bank, a regional bank with a strong presence in the Southeast, Texas and Phoenix, The main media bought by Compass Bank in 2006 includes billboard, newspaper and radio. Tortillas Guerrero (Mission Foods' Hispanic brand, its English brand is called “Mission Tortillas”) has a multimillion dollar annual budget for the Hispanic market. Up till now it has mostly invested in TV, although online media will be added in 2007. “We recognize the value of the online component,” Lucero notes. Tortillas Guerrero mostly targets Mexican Americans. 7 Eleven, Camelot Communications third Hispanic account does mostly radio advertising. Novamex, the Mexican soft drink manufacturer and owner of sodas Jarritos, Sidral Mundet, Sangría Señorial and Mineragua, recently chose Camelot Communications to take care of its media buying/planning and promotions activities.

5 News and Trends

offers ringtones, wallpapers, games and text- #1 Spanish-language Newspaper and Online generally very secretive about launches and based services through a membership-based, News publisher.” Many other publishers known for their ability to surprise the mar- community experience. like Al Día (Belo Corp, Dallas/Ft. Worth, ket, has not revealed any plans to do so. Thumbplay, headquartered in New circ. 50,000, daily) recognize that the A U.S. ¡HOLA! would be a welcome York, was founded by CEO Ari Traasdahl online medium will continue to grow in addition to existing Hispanic women's and Executive Vice President, Marketing, importance. magazine titles (see “The big magazine hit Evan Schwartz. Thumbplay Inc., is backed An increasing number of advertisers, for Latinas is yet to come,” page 10, by SoftBank Capital, i-Hatch Ventures, particularly large companies with branding Portada No. 3 May/June 2003). More than and Redwood Partners. (For related infor- campaigns, are buying advertising in 70% of ¡HOLA! Spanish readers are mation see article: “Latinos Love Mobiles: Spanish-language websites. However, as women. Also, ¡HOLA! already has name Content Providers Take Notice”, page 1 Captura Group's Lee Vann recently told recognition among U.S. Hispanics because Portada Nr. 23, Nov.-Dec. 2006). Portada, for the market to grow more, of its popularity in their Latin American medium-sized companies need to come into countries of origin. Prior to the launch of the market. “Middle tier companies will be ¡HOLA! Mexico, the Spanish edition of GO SOUTH, YOUNG MAN: looking at the return on investment of their ¡HOLA! had a higher circulation in Mexico ADVERTISERS GO AFTER THE online advertising campaigns,” Vann notes. than in the U.S. DOMINICAN MARKET Spanish-language newspaper and magazine ¡HOLA! revenues are mostly circulation A number of companies, including websites can play an important role in lif- sales-based (newsstand). ¡HOLA! already Delta, American Airlines, and JumpTV ting that return on investment. Until publishes a British edition under the name are interested in tapping the Dominican recently, however, they have not played of Hello (weekly, circ. 547,000), as well as market. Although the main Dominican such a role. Oh-La, a French edition (weekly, circ. newspaper, El Listin Diario, does have a 110,000). The magazine also publishes local website, it does not have the geo-targeting editions in Canada, Greece and Russia. capabilities advertisers would like to see, ¡HOLA! LAUNCHES MEXICAN which would allow them to see how many EDITION, IS A U.S. HISPANIC EDITION visitors accessed the site from a particular IN THE OFFING? LICENSE TO THRIVE: A PROFILE area, etc. The Spanish tabloid magazine ¡HOLA!, OF TIME INC.'S PANREGIONAL With a total population of close to owned by entrepreneur Eduardo Sánchez EXPANSION STRATEGY 765,000 Dominicans are now one of the Junco, launched a Mexican edition with a “It's Time Inc.'s policy to negotiate largest Hispanic groups in the United circulation of 495,000 (weekly). For more licensing agreements with foreign publishers States; less numerous than the Mexican than 60 years the Spanish edition of the rather than joint ventures and other Americans and Puerto Ricans, and about magazine had been distributed in Mexico methods,” said Jennifer Savage, head of even with Cuban Americans. Currently, the and recently the Madrid-based publication licensing for Latin America, Africa and the largest concentrations of Dominicans living decided to launch a magazine in Mexico. Middle East. “It really comes down to the in the U.S. are in New York (455,061), A full page color Ad in the publication risk involved in each option, and a decision Florida (170,968) New Jersey (102,630). costs 99,000 pesos (Open rate of $ 9,000 or has been made that the licensing model is CPM, cost per thousand readers, of $18.18). one that has worked well for us.” In an announcement, ¡HOLA! said that In the South American markets, Time ANALYSIS: AS SPANISH-DOMINANT the Mexican edition will include “informa- Inc.'s licensing activities are most active in HISPANICS MOVE ONLINE, SPANISH- tion about the Mexican society, celebrities Mexico and Brazil. The licensing agree- LANGUAGE PUBLICATIONS FOLLOW and the most exclusive events that take ments generally fit into two categories: The number of Spanish-dominant place in Mexico.” ¡HOLA! Spain is well Hispanics accessing the Internet is increa- known for the high quality of its photogra- 1) Branded Syndication: a Time Inc. sing fast. In fact, it is where most of the phic material. product appears as a branded section within growth in Hispanic Internet users is coming ¡HOLA! Mexico enters the increasingly a foreign publication magazine. Excerpts of from. However, content and online adverti- crowded but also highly profitable sector Time Inc.'s content are selected by the reci- sing inventory is still relatively scarce. In of Mexican gossip magazines. Its main pient magazine for inclusion. fact, many Hispanics still visit their home competitors are Caras, published by country newspaper websites due to the lack Editorial Televisa as well as Quien, publi- 2) Full Licensed Edition: a Time Inc. of enough online Spanish-language content shed by Time Inc-owned Grupo Editorial product is adapted as a stand-alone magazi- in the U.S. Expansion. ne for that foreign market. Content is a mix Hispanic newspapers and magazines of original material and translated material have an important task ahead to put their U.S. HISPANIC EXPANSION? from U.S. edition. off-line content online and develop strong It is most likely that, like many ´The following is an overview of Time online platforms in order to increase online Mexican magazines, ¡HOLA! Mexico will be Inc. products being published in Mexico advertising inventory. There are many distributed in the U.S. Hispanic market. and Brazil, and under what models: examples for this trend: Brent Murphy, But what about a stand-alone U.S. Hispanic publisher of Dallas/Ft. Worth-based edition? MEXICO: Spanish-language monthly Mercado As early as in 2004, according to Fortune: branded syndication in Bilingue (circ. 50,000), tells Portada that industry insiders interviewed by Portada, Expansion magazine. (Time Inc. owns he will soon launch a national web effort. ¡HOLA!, was rumored to be preparing to Impremedia recently introduced its tagline launch a U.S. Hispanic edition. ¡HOLA! , (continued on page 8)

News and Trends

(continued from page 6) FOCUS ON: HISPANIC ADVERTISING: ENGLISH, SPANISH, OR BOTH? Expansion magazine, publisher Grupo Editorial Expansion) A Q&A with Kabira Hatland, Corporate Communications Manager, and Fortune / People /Entertainment Arturo Nava, Hispanic Brand Manager for Coors Brewing Company Weekly: branded syndication in Reforma newspaper. Sports Illustrated Mexico: full licensed Q: What is the rationale behind targe- males, 21-34. edition - Grupo Expansion ting the Hispanic market Bilingually InStyle Mexico: full licensed edition - instead of going with either English or Q: What markets is the campaign run- Grupo Expansion Spanish? ning in? A: The rationale for marketing to A: Our marketing runs in local markets BRAZIL: Hispanics with a mix of English and and at a national level. InStyle: licensed edition Spanish in one advertisement is to Fortune/People/Time: branded syndi- appeal to the increasing number of Q: Who handles Coors Hispanic Creative? cation in ISTOE magazine. bilingual Latino adults in the U.S. who A: Coors utilizes three agencies for commonly use both English and Spanish Hispanic creative: Bromley Communi- languages in everyday speech. The bot- cations (San Antonio), Traver y Asocia- FORBES TO LAUNCH SPANISH- tom line, for every consumer group, is dos (Laguna Beach, CA) and Integer LANGUAGE EDITION that we must reach them with compe- (Lakewood, CO). Forbes magazine is venturing in to the lling marketing. Using both languages Hispanc market. The new publication is better reflects the reality of many of our Q: Who handles Coors Hispanic media going to be based in Madrid. Journalist Hispanic consumers and so it resonates buying/planning? Sonia Franco, until recently employed at better with them. A: Bromley Communications handles Spanish financial daily El Economista, was our Hispanic media buying and planning. recently hired by Forbes to lead the magazi- Q: How long has the campaign been in ne’s editorial team in Madrid. effect? Q: What are your thoughts about rea- The Madrid-based newsroom will produce A: We have various campaigns in the ching your target audience through content about business and finance in market at any given time. We've used Print and Online? Spain and Latin America and translate Spanish and English for years. In fact, our A: Online and print advertising resonates adapt Forbes’ U.S., European and Asian Coors Light packaging reads both “The well with bicultural Hispanic consumers. editions for Spanish-speaking audiences. Silver Bullet” and “La Bala de Plata.” The new publication will be distributed in Spain, Latin America and the U.S. Q: Is there a print or online component Forbes is one of the largest business EXTRA! to the campaign or is it just broadcast? magazines in the U.S. During the January- Coors Light has been running a bilin- A: The marketing mix varies by campaign. gual marketing program in anticipa- September 2006 period it had advertising We typically use TV, radio and OOH. tion of this year's SuperBowl. The revenues of $219.9 million, an 8% increase event's tagline, “One Game. One over the prior year according to PIB, and Q: Who is your target audience for this Dream.” appears on the packaging exceeding those of Business Week and campaign? in Spanish and English. Fortune. A: Our marketing targets adult Hispanic

8 In-Flight Distribution

Flying High with Magazines for Miles Programs

t’s 11:53 PM on the last day that your frequent flyer actual renewal rates are proprietary. I miles are valid. You have seven minutes to wisely One reason People en Español has so few of these types of invest those miles before they are gone forever. What subscribers is because for the last 18 months, they have cho- do you do? sen not to participate in this type of program. Pérez tells Well, you could book a hastily-assembled tour of the Portada that even though the average miles redeemer often North Pole, all you can eat ice-cubes included, or visit your has more desirable subscriber characteristics (Income, adverti- mother-in-law out in Nebraska and ponder the horizon. sement response) than the average subscriber, advertisers are Another option now available to many frequent flyers is to sometimes wary of these subscribers because they have not subscribe to some of your favorite magazines using those paid any money out-of-pocket for what they signed up for. miles, no ice-goggles or earplugs required. But that’s your Synapse is a company that specializes in Subscription for business... Miles programs, among others. With this program, the Currently, the majority of magazines offered through amount of miles one spends per subscription varies on the these programs are general market: “For some reason, we magazine, and how much money the subscription costs. It don’t have as many Spanish-language magazines participating works with virtually all of the major airlines in offering over in our Magazines for Miles program as some of our other 60 titles to its readers. According to Laurence Sheinman, a programs,” says Laurence Sheinman, vice-president of vice president at Synapse, they do not segment their offerings Stamford-based Synapse, a customer acquisition and manage- according to flight destinations or customer demographics. ment company. However, there are a few that participate, “We are more interested in casting a fairly broad net,” says and one may currently subscribe to Hispanic publications Laurence. “Synapse has had the program in place for over ten like People en Español or Latina, and the list of Hispanic offe- years, helping airlines to burn a total of 50 billion miles.”

“We don’t have many Spanish-language magazines participating in this program...” rings is bound to grow in the coming years. For Hispanic Ruth Gaviria, publisher and executive director of Meredith titles, this could be a great opportunity to capitalize on a Hispanic Ventures, notes the sense of such a sweeping appro- space that is thus far under-utilized by the Hispanic market. ach to title offerings: “Think of the reader. Think of the pas- The benefits for magazines choosing to take part in sion-point. In a country where the media choices are beco- these programs are obvious. For one thing, it boosts circula- ming more segmented because the consumer is the one dicta- tion rates, so they are subsequently able to charge adverti- ting what content they want, it is increasingly important to sers more. On the audit sheet, airline miles subscribers are connect with them where their passions lie, and if you are listed as sponsored/paid subscribers. Additionally, many of able to connect with that consumer with even one title, it these types of subscribers elect to continue their subscrip- doesn’t matter what other titles are on that list. The connections under regular terms once their airline miles subscription has been made.” Gaviria adds that she would be per- tion has expired. fectly willing to participate in a Subscription for Miles pro- Additionally, research conducted by McPheters & gram if it provided engaged readers: “Where you get the rea- Company Media Consulting indicates that these types of der is not important; what is important is whether the con- subscribers are higher quality readers that are more affluent, tent you are offering is in line with that reader’s interests.” with the median household income measuring at $77,676; more educated, with 41% or more having completed college or more; and more likely to be in managerial positions. Why Subscription for Miles Work for: Jose Pérez, consumer marketing director for People en PUBLISHERS ADVERTISERS Español, said this: “For our magazine, which has very few frequent flyers using miles for subscriptions, the retention rates > High renewal rate > Airplane readers a “captive” are quite high, but that could be a function of how few of > Can guarantee Advertisers audience these there are. I have no way of knowing if this is true for a subscribers > Airplane readers more affluent title where such efforts are a larger proportion of total subs- > Subscribers count toward > Higher Ad-response than criptions, but in my experience to date, the names are high paid Circ. general quality and do renew at solid levels,” said Pérez, adding that

9 Websites

(continued from page 1)

Vermont Teddy Bear, said in a Hispanic marketing efforts and Spanish million alone, there is an enormous recent conference that one of the main speaking customers. market for Spanish-language websites, pillars of the company's strategy to With over 400 million Spanish spe- and corporations know it. increase revenue is to offer a Spanish- akers worldwide, and the U.S. Hispanic language version of the site to support population measured at around 45 Consider this:

> There are almost 82,000,000 Spanish-speaking people using the Internet, accounting for 7.5 % of all the Internet users in the world.

> Out of the estimated 437.5 million Spanish-speakers worldwide, 18.7 % use the Internet.

> The number of Spanish Speaking Internet Users has grown 231.1 % in the last six years (2000-2006).

Many major companies do have websites en español, and those that don’t are quickly developing them, making the business of website adaptation quite a busy – and profitable – one. Sergio Aprestan, Sales Manager for website adaptation company Transperfect says that most large companies of 2,000 or more employees do have a Spanish-language website. Will Fleming, CEO of website adaptation company MotionPoint emphasizes how much further there is to go: “Penetration is still relatively low. I read a Forrester study that cited just 19% of Fortune 100 companies as having any Spanish-language component at all. Many still have none, and

10 Websites some have just a trivial amount.” ted by a couple of synchronized banners. needs. “These larger websites need As the chart box on page 14 indica- According to Urbina, these types of ads immediate information delivered tes, Spanish-speaking internet users fall have been an unmitigated success. directly to their channels. Most of this just behind Japanese-speaking users in content is accompanied by a photo or number. However, the number of Content Providers other rich media, such as audio or Spanish-speaking users is growing at a Increasingly, large Spanish-language video features,” says Rafael Carranza, rate almost three times that of the sites like AOL Latino, MSN Latino, sub-director of sales North America Japanese. This means that soon Spanish Yahoo! en Español, and others are rel- will follow only English and Chinese as ying on newswires to fill their content the most commonly-used language on the web. That alone should erase any reservations one might have about developing a Spanish-language site.

Broadband and its implications... According to the third annual AOL/Roper U.S. Hispanic Cyber Study (2005), U.S. Hispanics are rapidly adop- ting broadband, with approximately 50% accessing the internet over high- speed internet connections from home. This is important, as broadband access facilitates a more sophisticated browsing, and advertising, experience. Spanish-language websites and their advertisers are taking advantage of this steady shift toward broadband by streaming high quality video ads. Rafael Urbina, Batanga’s CEO, says that broadband video advertising is optimal in reaching Hispanic youth. He says that it works well with the language issue because many younger Hispanics can speak Spanish, but are- n’t fully comfortable reading Spanish copy. As a result, static Spanish-language banners can miss the mark. However, with video, advertisers are free to use the Spanish that reminds the consumer of family and friends, and add some English to the mix. An added benefit of running broadband video ads is that, in many cases, the advertisers already have the material from TV campaigns. All they need to do is re-format it for the digital market- place through a process known as “repurposing.” Typically this means paring-down a 30-second spot to just fifteen seconds, as the online audience has less patience for sitting through ads online than they do watching them on TV. The ads are placed either pre-roll or post-roll, meaning before or after the content the user has chosen to view or listen to. The video ad will be augmen-

11 Websites

Top Five Languages on the Web

TOP FIVE % of all Internet Users Internet Internet Growth World Population LANGUAGES Internet Users by Language Penetration by for Language 2006 Estimate ON THE Language (2000 - 2006) for the Language INTERNET

English 29.7% 322,600,837 28.7% 135.2% 1,125,664,397

Chinese 13.3% 144,301,513 10.8% 346.7% 1,340,767,863

Japanese 7.9% 86,300,000 67.2% 83.3% 128,389,000

Spanish 7.5% 81,729,671 18.7% 231.1% 437,502,257

German 5.4% 58,854,682 61.3% 113.2% 95,982,043

for Efe. While a paper's staff might focus Geo-Targeting... And newspaper websites aren't more on local content through the One of the advantages that online being left out if the action either. For print product, a website featuring media offers is accountability. If you many newspapers, the website is a rela- recent newswire content from a host of are a prospective advertiser considering tionship-building forum, where they Latin countries can connect with its a website to advertise in, you can get can engage their readers with interacti- readers on a different level. “Many U.S. highly specific information about how ve features and online promotions, as Hispanics want to be connected with many people visit that website, what well as with news from a user's home what is going on in Latin America, so their interests are, etc. Increasingly, country. Since many smaller publica- Internet is a very accessible option to advertisers, particularly in the Hispanic “One benefit of running broadband video ads is that advertisers often already have the material from prior TV spots”

tions' websites do not have their own know what is going on a daily basis in and Latin American market-space, are editorial teams, the newswire-provided their country,” says Carranza. asking the question: “Where are these content can help to serve this purpose. visitors located?” in an effort to more

12 Websites

WEBSITE ADAPTATION...

Although the idea of having a 3) Maintaining and updating sites: Spanish-language website is appea- Handled by localization company. ling to many companies, the prospect Sergio Aprestan, Sales Manager for of developing a whole other site and website adaptation company Trans- maintaining it is a daunting one. perfect, says that many of the compan- For some, it is the cost of building y's bigger clients develop Spanish-lan- the site that deters them. For others, it guage websites because they are inte- is the intensive IT commitment that rested in capturing Latin American can be problematic, especially as IT business. Aprestan notes that, while departments are frequently overexten- not typical, many of his online-based ded as it is. And for still others, it is a sales clients have reported 30% incre- question of what to do once the websi- ases in sales figures after implemen- te is up. ting their Spanish-language site. One frequently-asked question is “I prefer the term 'website locali- “Does this now mean that we'll need zation' to describe what we do,” says to add some bilingual new-hires to Aprestan. “Localization goes beyond maintain the thing?” The answer is no, simple translation by taking into as some companies have made the account the target audience and 'loca- process more cost-effective and low- lizing' the site to suit that audience.” maintenance. Aprestan says that one of the big- MotionPoint offers complete web- gest challenges in website localization site localization with an average turn- is getting the necessary info from around of 60 days. The model it uses clients. “One frequent stumbling block overlays the Spanish copy over the is getting technical information from English without changing any of the the web developers that built the html, one factor in keeping costs English-language site. In the past, down. CEO Will Fleming says there are those developers would charge an three key factors to manage when adaptation fee for using their material. adding a Spanish-language website: However, we offer a turnkey product that changes only the text and none of 1) Master the language quality: the html. As a result, these developers Typically guaranteed by the locali- can't charge their adaptation fee and zation company. are therefore often reluctant to assist 2) Speed of deployment: 60-90 days. us with the information we need.”

effectively target them. And as these Argentina. capabilities become more sophistica- A number of companies, including ted, websites are now able to tell Delta, American Airlines, and advertisers how many people from a JumpTV are interested in tapping the particular country are visiting their Dominican market, given the large website. number of Dominicans now residing For example, an Argentine living in the U.S. Although the main in the U.S. might go to Clarin.com to Dominican newspaper, El Listin get caught up on news from home. Diario, does have a website, it does The website can detect that the IP not yet have the geo-targeting capabili- address originates in the U.S. and ties advertisers would like to see. serve that visitor an ad for an airline There are apparently discussions company advertising discount flights underway between some of these airli- to Argentina. In fact, Clarin is an inte- nes and El Listin Diario about develo- resting case, because about 25% of its web-traffic originates from outside of

13 Websites Spanish-language Website Launches

SITE CATEGORY AUDIENCE ping these capabilities. Todofut.com, an online retailer of http://www.americredit.zcom Financial Loan Seekers http://www.astm.com Standardization Business soccer gear is experiencing success tar- http://www.combatbugs.com Manufacturing Homemakers geting online newspaper markets http://www.bradcosupply.com Manufacturing Contractors throughout Latin America with http://www.jabil.com Technology Tech Firms http://www.redcrossstore.org Retail General country-specific sports apparel. The http://www.roomstogo.com Retail General company's strategy is simple: take out ad-space in a given country's leading SOURCE: Portada/Motionpoint newspaper, and advertise that countr- y's soccer jersey at reasonable prices, e.g., advertise Argentine jerseys in Ole, Brazilian jerseys in O Globo, etc.

The Road Ahead... While it is true that English is still clearly the dominant language online, Spanish-language websites are quickly closing the gap and offering many of the same premium site features and advertising methods being employed by the top English-language sites. In addition, Spanish-dominant internet users account for the majority of growth that the U.S. Hispanic Online community is experiencing. And, as mentioned earlier, website localization is now more affordable and quickly implemented than ever before. As a result, look for Spanish-language websites to improve content quality and technical sophistication; advertisers to take advantage of cutting edge methods like geo-targeting; and more general market companies to penetrate the Hispanic online mar- ketplace with Spanish-language web destinations.

For more information, check out www.portada-online.com and search for the following articles: • “U.S. Advertisers Place in Latam Websites to Target U.S. Hispanics” • “Online Publishers Step up Site Features for 2007” • “Focus on Hispanic Online Media Buying” (A Q&A with Marla Skiko, VP & Director of Digital Innovation for Tapestry Marketing Co.)

14 Advertising

National Advertising Campaigns

COMPANY BrandAgency Period Vehicle Comment

Coors Coors Light Bromley Ongoing Print Bilingual

Scholastic Disney Bilingual Books Scholastic Ongoing Direct mail 5 separate mailings (Direct/Shared)

U.S. Army U.S. Army McCann Worldgroup November 2006 Mobile, Web, TV New Page on goarmy.com onward

Chrysler Nitro GlobalHue Q4 2006 TV, Print, Online Targets Men

Macy's Macy's West Tapestry Dec. '06 Onward Print, Radio, TV Holiday blitz

Taco Bell Taco Bell Dieste, Harmel + Partners December '06 Print, Radio TV Reaction to E. Coli Outbreak

Ikea Ikea Anita Santiago Dec-2006-2007 Direct Mail Catalogs: Chicago, Dallas, L.A.

Todofut.com Todofut.com Media Consulting Group Ongoing Online Placing in Latin American newspaper websites

Porsche Porsche Grupo Uno Ongoing Latin American Promoting its Porsche Club in LatAm Newspaper websites

Mission Foods Tortillas Guerrero Camelot Communications Jan. '07 Onward Online Developing New website

Vermont Teddy Bear Vermont Teddy Bear N/A Jan. '07 Onward Online Developing Spanish-language website

Target Target Haworth TBD Direct Mail Direct Mailing Spanish-language piece

15 Retail Advertising

(continued from page 1)

Wal-Mart publishes a custom Costena, Hershey Lorena, Nestle and Newspapers Services of America, a magazine called Viviendo, a quarterly El Azteca. Grupo Famsa, a Mexican print media planning and buying publication written in Spanish and furniture and household – products agency whose clients include Home English. Targeted to “Moms” with retailer, opened 10 U.S. stores last year Depot, Mervyn's, Sears, Michaels, young families, the editorial content and plans to open another 10 in 2007. Safeway, Linens N-Things, and Bed offers something of interest for every The chain currently has 21 U.S.-based Bath & Beyond, only bought $13 member of the family – from recipes, stores with locations in California, million worth of advertising in home and health information, the latest Nevada and Texas. It is looking at Hispanic newspapers. In 2006, that in entertainment and sports, interviews Arizona, Florida, Illinois and New York figure increased by more than 25% and with Latino leaders, children’s activities as potential new markets and its goal is the number of Hispanic newspapers and more. With a circulation of more to have 300 stores in the U.S. used increased from ninety-five to 112. than 500,000, Viviendo is available free Another large retailer, Winn-Dixie Hispanic print is still a tiny portion of only in Hispanic-frequented supercen- Stores Inc. recently announced that it NSA’s total print buy. NSA buys more ters and Division 1 Stores. has added 55 stores to its Hispanic than $1.6 billion in newspaper adverti- Some retailers only cater to Neighborhood Merchandising pro- sing, and its newspaper preprint buys Hispanics. Los Angeles-based La Curacao gram, including an additional 30 in the account for approximately 20% of the exclusively targets Hispanics in California Miami market and expansion into 25 total preprint market (Free Standing and has plans to expand into other states. Orlando-area stores. The 522-store Insert) market. The company's slogan: “Un poco de su chain now has 103 locations that are The expansion of Spanish-language pais” (“A little of your country”) reflects specifically marketed to the Hispanic websites (see article on page 1 of this their commitment to make Latino consu- consumer. issue) is also helping large online retai- mers feel at home. lers, such as Crutchfield, Puma and Convenience store operator Circle Small but growing Sears attract Hispanic shopping dollars. K Stores recently implemented what it The investments large retailers Many of these companies implement calls its “Authentic Hispanic” program. make to reach Hispanics are still very online advertising campaigns to attract The convenience store chain is working low, particularly in print and digital buyers to their websites. with Inca Products and Core-Mark media. However, large retail chains are One reason for retailers’ low expen- International to execute the program in becoming increasingly cognizant that ditures in Hispanic print and digital its Southwestern store locations. The they need to expand their advertising media properties is that many have not new program offers a number of budgets in order to drive Hispanics to yet been able to provide in-depth options, including displays of over 70 their stores. research about each publication’s use SKUs from brands such as Jumex, La In 2005, Downers Grove, IL-based by shoppers, according to Marsha

16 Retail Advertising

Lawrence, print media manager at Best perties, such as the New York Daily in NYC and Hudson County. NJ. Buy Corp. News, have been improving their Domingo, published by Impre- zoning capabilities. Examples include media, micro-targets households in Zoning, where it all starts for the New York Daily News’ Hispanic high-density Hispanic zip codes that retailers weekly Hora Hispana as well as are traditionally under-delivered to by Zoning of newspaper editions or Tribune’s Hoy Fin de Semana and general market newspapers. This offers of direct mail programs is paramount Impremedia’s weekend home delivered advertisers penetration into Hispanic to FSI (free standing insert) adverti- Domingo. The Daily News’ Rudy households with minimal duplication sers, who distribute coupons in FSIs Zaccagno notes that one of the benefits when used in combination with the in order to drive traffic to retail of Hora Hispana is its capability of mainstream dailies. For national adver- locations in a particular neighborhood. zoning inserts down to the block group tisers, Domingo provides a large print According to research by the Newspaper level. “If an advertiser is looking to vehicle in the top three Hispanic mar- Association of America, 83% of reach households in a certain Hispanic kets (New York, Chicago and Los Hispanic adults use newspaper area of NYC they can pick and choose Angeles). For local advertisers, each Inserts (Pre-prints or Free Standing what areas they want.” Hora Hispana is publication has five or more zones allo- Inserts-FSI's). delivered in a bag with all the weekly wing for low-cost advertising programs Direct mailers, (e.g. ADVO- circulars for the supermarket, door to that are affordable for even the smallest Valassis, Latin Pak, Harte Hanks) also door to block groups within a zip code businesses. offer zoning capabilities be it in shared direct mail (co-ops) programs or in solo mailings. “In the newspaper industry, there is a trend toward using pre-prints that has been going on for about five years now. I don't have the numbers to back it up, but I would guess that the same is true for Hispanic newspapers,” says Rachel Stayduhar, media buyer at Los Angeles based ACG Communications Group, whose clients include Factory T stores and Armstrong Garden Centers. Are print media properties targeting Hispanics really doing their job? General market publishers that distribute Hispanic papers in addition to their mainstream editions tend to offer fewer zones for their Hispanic publications than for their English-language dailies. This is mainly due to the higher cost of zoned distribution. El Sentinel, a weekly Spanish-language newspaper with a circulation of 95,000 published by Fort Lauderdale, FL based Sun-Sentinel (Tribune), offers advertisers two zones (Broward county, circ. 70,000 and Palm Beach county, circ. 25,000). Dividing a circulation area in two zones is pretty good for a Spanish-language newspaper. However, the Sun-Sentinel, El Sentinel's parent newspaper, divides its distribution area into 13 zones. Hispanic newspapers owned by major general market print media pro-

17 Print Ad-Tracking Retailers Retailers Dabble in Hispanic Print un-of-press national advertising in Hispanic newspa- Big-Box is Largest Sub-category in ROP... R pers by retail advertisers amounted to $30.93 million during the first ten and a half months of 2006, a very Subcategory $ Million Expenditure low figure when compared to the billions they spend in the general market. The statistic was noted before the advertising Big-Box Retailers 14.04 intensive 2006 Holiday Campaigns. The figure does not include local retail advertising - e.g. advertising campaigns by Apparel 9.4 large retail chains that are not branding related: any ad that Home Furnishings 4.1 carries a phone number of a local dealership is not considered National Advertising by Portada Ad-tracking - which repre- Pharmacy Retailer 1.5 sents the largest portion of advertising in Hispanic print. Automotive products 0.95 Big-box retailers (e.g. Sears, Kmart, Office Depot, Target) led the pack of national advertisers in Hispanic news- Electronic Retailers 0.92 papers. They were followed by Apparel retailers, including Other Retailers 0.02 Macy’s and Dillard’s). Home improvement and Furnishing TOTAL 30.93 retailers (e.g. Home Depot) occupied a distant third position. FSI (Free Standing Insert or) or pre-print advertising amounts to approximately 30% of overall national retail SOURCE: Portada Ad-tracking advertising. In the general market, that ratio is higher than NOTE: National Advertising during the Jan1-Oct.15 2006 period in $ million. 50% and it is expected that in the Hispanic market the proportion of preprint advertising will increase. As can be seen in the box above, the language used by most big box retailers ...and Sears Leads the Pack in Pre-prints in their FSI inserts is English. As these marketers adopt more Hispanic specific advertising material (e.g. Bilingual and/or Spanish), an increase of FSI activity is bound to follow. FSI Activity of Number of Language Big Box Retailers Insertions ENGLISH-LANGUAGE ADS Sears 387 English Sears was the largest pre-print advertiser during the first 10 and-a-half months of 2006 with 387 insertions. It used Kmart 129 Spanish/English English-language ads for its campaigns. Sears was followed by Office Depot 120 Spanish/English Kmart (129), which used both English and Spanish-language advertising for different campaigns, including “Dia del dolar Target 91 English (Dollar Day)” and “Your Dreams Your Way.” Walmart 89 Bilingual/English Office Depot, whose campaigns included “Ahorre 20% en todas las copiadoras (Save 20% on all copiers)” and Publix 81 Spanish/Bilingual/English “Somos su central para la preparación de sus impuestos (We Mervyns 51 English are your source for tax preparation)” was the third big box Heb 44 English retailer ranked by its number of preprint in inserts in Hispanic newspapers (122 in both Spanish/English). JC Penney 42 English Supersaver 16 English

To get detailed information about Portada Ad-tracking, Albertsons 16 English please call Annette Fielman at (516) 396-0179 or e-mail: Kohls 14 English [email protected] Sam's Club 11 English Office Max 5 Spanish/English Save Mart 5 English For more information: Check out www.portada-online.com and look for the following articles: SafeWay 2 Spanish

• What you need to know about the Spanish-language FSI market • Big Box Retailers Only Give Pocket Change to Hispanic Print SOURCE: Portada Ad-tracking • Retailers push into Hispanic print, more research needed NOTE: FSI inserts in publications targeting Hispanics during the Jan1-Oct.15, 2006 period (in $ million).

18 Hispanic Yellow Pages Big Investors Bet on a Still-fragmented Sector

ajor players have entered the Facts about an Expanding Market M Hispanic Yellow Pages market in the last few years bringing much needed capital and expertise into Hispanic General the sector. “I do believe the entry of Market Market Telmex may bring a level of funding 2006 Size of Hispanic Yellow Pages Market: $165 million $14 billion and professionalism that could trans- form the market,” says Charles 2009 Size Forecast: $250-$400 million NA Laughlin, SVP and Program Director, Number of Yellow Page books: 200 NA The Kelsey Report. Last fall, Blue Equity, LLC and Teléfonos de México, Share of Yellow Page Advertising in Total 3.6% 5.7% S.A. de C.V. announced that the Advertising (2006) Mexican telecommunications company Avg. % of National Advertising in total revenues: 10% 15% - 20% Telmex acquired an 80% stake in Enlace Yellow Pages. Enlace, a publisher % of Online Advertising Revenues in Total Below 5% 7% Revenues: of over 32 Spanish-language directories in 18 states, was re-named Sección Per capita distribution density 0.85 1.85 Amarilla USA. Books/person There are close to 200 Hispanic Yellow Page books all over the U.S., SOURCE: The Kelsey Group and Portada most run by very small companies. Private equity-backed operators play an Hispanic Yellow Pages Network circ. 200,000, weekly, Spanish), is important role in the wave of consoli- (HYPN), backed by Boston-based pri- among its main shareholders. HYPA dation currently taking place in the vate equity house ABRY Partners, is owns Spanish-language Yellow Page market. “Small family-owned publis- attempting to become an independent Books in Denver, Las Vegas, Chicago hers are threatened by consolidation. provider of Hispanic Yellow Pages Metro, Colorado Springs, Phoenix and The entry of Telmex is evidence of directories throughout the U.S. Led by Milwaukee. this,” says Kelsey’s Laughlin. However, Yellow Pages industry veterans Patrice independent publishers have a long tra- Listfield and Luis Bermudez, during National Platforms dition and strong involvement with the last three years HYPN acquired To increase national advertising by their community and this can be an independent Hispanic Yellow Pages offering a nationwide footprint is one asset for the acquiring company. One businesses including Chicago, Dallas, of the main objectives of the major pla- example is Casablanca, a company that Houston, Tampa, Atlanta, DC/ yers. Typically, 15% of the advertising published an Atlanta Hispanic Maryland/ Virginia/Baltimore, Miami/ in a yellow pages directory is national. Directory for 18 years before HYPN Ft. Lauderdale, New York, Orlando For independent publishers that pro- purchased the company. “Casablanca and Phoenix. portion is lower, approximately betwe- had a strong and loyal customer base Another private equity-backed ope- en 5% and 8%. Due to its large degree and was the premium Hispanic rator is Chicago based HYPA (Hispanic of fragmentation, the Hispanic Yellow Directory in Atlanta. HYP Directorio en Yellow Pages of America). Its expansion Pages Sector has a ratio closer to 5%. Español is building upon that historical is financed by Hispania Capital However, this range varies a lot from strength,” says Ted Jones, General Partners and Robert Armband, publis- Manager of HYPN Atlanta. her of Chicago’s La Raza (Impremedia,

19 Hispanic Yellow Pages

publisher to publisher. Mario nies advertising in a large number of Mexican-Americans living in the U.S, Echevarria, Director of Marketing and directories. particularly to first generation Mexican Sales at HYPA, tells Portada that for To Juan Reffreger, Sección immigrants. In Mexico it publishes 135 his company national advertising Amarilla's CEO in USA, insurance, directories and the company's print and hovers between 15% and 20% of total automobile parts and supplies and digital yellow pages revenues in Mexico revenues. He sees a lot of growth cellular phone equipment are the main and Latin American amount to approxi- potential in the following categories: categories for growth in national adver- mately $300 million a year. By expan- Automotive and related industries, tising. According to Reffreger, national ding north of the border, Telmex insurance, pizza chains, medical and advertising amounts to approximately Sección Amarilla also targets Mexicans dental chains, educational and instruc- 6% of Sección Amarilla USA’s total north of the border. Telmex Sección tional institutions. revenues. Last summer, Sección Amarilla will now be able to offer a According to Echevarria, the majo- Amarilla partnered with Directory large U.S. Spanish-language Yellow rity of HYPA’s advertisers are English- Marketing Inc., a firm that handles Pages footprint to Mexican advertisers speaking businesses. “About 70% of national advertising for yellow page who want to market to Mexican immi- our business comes from the bigger books, and joined with its in-house grants in the U.S. Anglo companies that want to reach national team to build its national the growing Hispanic market. The account business line. “We want to be Border town directories remainder comes from the Hispanic a national company either through fur- As to whether there will be any community,” he says. National Yellow ther acquisitions or by launching new advertising sales synergy between Page Advertising is bought by CMR’s companies. Our sales force will not Sección Amarilla Mexico and Sección Certified Marketing Representatives. change significantly, although it may Amarilla USA, Reffreger says, “We will CMR’s are members of the Yellow grow,” says Reffreger. engage in some cross-selling between Pages Association and work for compa- Sección Amarilla is wellknown among entities, particularly on the border town directories (e.g. El Paso/Ciudad Juarez). We’ll try to make it easy for customers on both sides of the border. Also, for companies that are already PORTADA CONSULTING/RESEARCH SERVICES reaching the Hispanic market, it will be Unanswered questions? Would you like to get more specific information a great service, with a lot of synergies on certain aspects of the business of Hispanic media? not only from the user side. It could be a doctor in the border town to a den- Portada can provide you with... tist, or a big-box retailer. With the • Customized studies on any aspect of the business of media for Spanish-speaking recent acquisition, we now have access audiences including: to their database, so we can reach any > Internet, Online Advertising, Newspapers, Magazines, Direct Mail (Circulation, customer we want.” Advertising, Content) > Competitive intelligence > SWOT analysis (strength, weakness, opportunities, threat analysis) of existing or Undivided attention to-be-launched Hispanic publications in a given market One factor favoring the increase > Competitive analysis/intelligence > Valuation of media properties of advertising dollars spent in > Assessment of national and local ad-market volumes and more... Hispanic Yellow page books is the • Consulting sessions (telephone based) on the topic of your choosing increasing amount of publishers which focus exclusively on serving a We can provide clear-cut, cost effective answers! Hispanic audience. “We don't have For more information call 1-800-397-5322 to worry about anything but our

20 Hispanic Yellow Pages

Hispanic Yellow Pages and we can move fairly quickly. turing advertisements in both English and Spanish, and Spanish- In addition, we are very well known by our end users - only. Dex Media, which is owned by R.H. Donnelley (Cary, the Hispanic community - as we have no other product NC), publishes 20 bilingual directories. AT&T Yellow Pages for reaching a Non-Hispanic end user. The only disad- (St. Louis) publishes 21 bilingual directories and BellSouth vantage I see is the lack of large cash resources for adver- Advertising & Publishing (Atlanta) publishes 15 bilingual direc- tising in the market place,” says Ted Jones, General tories with a circulation of seven million in four states. Manager of HYP Network Atlanta. Take Verizon en español as an example: while it has Strong Content more than respectable annual sales of between $30 Not surprisingly, publishers of Spanish-only Yellow Pages million-$40 million a year, these sales amount to less than claim that Hispanics don't like flipbooks. According to HYPA’s 1% of the close to $4 billion of advertising Verizon directories sell annually. Verizon’s current sales force is predominantly English-speaking. By having Yellow Page publishers exclusively focusing on the Hispanic market they will tend to have more Spanish-speaking sales forces. Kelsey Group’s Laughlin tells Portada, “not all of the sales per- sonnel selling general market Yellow Page books speak Spanish, which means they may not be fully optimizing the opportunity among Spanish speaking businesses.”

Flip books Telecommunication companies who want to reach Hispanics, like Verizon, often use the flipbook design for their bilingual directories. The flipbook reads in English from one direction and in Spanish if you flip it and start from the other side. These bilingual directories are distributed in neighborhoods where the Hispanic penetration is 50% or higher. For example, Idearc Media, the official publisher of Verizon Print directories, recently started to distribute 168,000 copies of bilingual flipped directories for heavily Hispanic areas in the Greater Tampa area covering 10 different zip codes, says Andrew Shane, spokesperson for Idearc Media. Flip book directory and general market directory publishers often can provide Hispanic directory advertising at a competitive rate, as in the case of United Yellow Pages Inc., a publisher of 43 English-only editions, 4 Bilingual (Spanish & English) and 6 Spanish- only directories. Advertising in the English section quali- fies advertisers for free and/or half-off ads in the Spanish-anguage section. Idearc, the directory publisher that Verizon recently spun-off, is one of the largest publishers of Hispanic directories in the United States, with 54 directories fea-

21 Hispanic Yellow Pages

Echevarria, “Flip books are simply brand awareness and drive usage. Low market is not so much a reflection of translations of some of the general mar- usage may be a reason for the fact that the market as it is a reflection on of the ket or English-language content or directory distribution per capita in the publisher and its product,” says Juan advertising. Hispanic, Spanish-language Hispanic market is less than half that of Reffreger of Sección Amarilla. He adds directories are generally community the general market. While in the gene- that, “in the past the barrier to entry directories and resource guides that ral market 1.85 directories per person into the Hispanic publishing market provide critical and helpful information get distributed a year, only 0.84 direc- was virtually non-existent, which ope- to the Hispanic communities they tories get distributed in the Hispanic ned the door to businesses that practice serve, along with support and commit- market, according to the Kelsey Group. non-conventional publisher practices. ments to those communities by the As HYPA’s Echevarria sees it, With validation of circulation and veri- publishers and their yellow pages orga- “While our directories become a more fiable audits and overall proven ethical nizations.” viable and critical resource in Hispanic business practices, renewal percentage Sección Amarilla’s Juan Reffreger households, this [usage challenge] will within the Hispanic market should see says “Spanish-language-only directories continue to evolve. We have been no difference in comparison to the have proven to be a more long term seeing this with a good percentage of general market. However, given the fact solution in the Hispanic Yellow page our advertisers who track the results that certain markets have experienced market than flip books. Users have a and/or calls from being in our books.” this type of unscrupulous business greater sense of loyalty to a directory Low usage can also be solved by increa- behavior, a certain amount of credibi- that is in the native tongue of the end sed research and surveys, as Sección lity re-establishing is required to achie- user” (For more information on the Amarilla’s Reffreger points out: “We ve industry standard results.” advantages/disadvantages of flipbooks, have partnered with the Certified see box on page 23). Audit of Circulation (CAC). CAC Online Opportunities: One strength of Hispanic directory publishes usage surveys as well as deli- Local Search publishers is that they tend to have very verification audits for every market Local search is both an opportunity strong content in the form of we service. To date, usage results typi- and a threat to Yellow Page publishers. resource guides that provide critical cally double most general market The local paid-search market is expec- and helpful information to the results; in some cases they even triple ted to reach nearly $1 billion ($987 Hispanic communities. “We are the general market directories’ results. million) this year, up from $418 monitoring usage with studies and million in 2005, and continue to grow audits to document the impact we ...and improve renewal rates rapidly to 1.7 billion in 2007. By 2010, are making for businesses and for Hispanic Yellow Page publishers also it should reach $4 billion, when it will users,” says HYPA’s Echevarria. face a sales and renewal challenge. account for 47% of local online adver- Ambassador Yellow Pages launched Kelsey’s Laughlin notes that “many tising, according to a new Borrell a Spanish-only directory with 200,000 advertisers in Spanish Yellow Page direc- Associates report, entitled “2006 Local circulation in 2005, and in 2006 intro- tories are not Spanish speaking opera- Search Advertising.” duced Spanish-only directories in tors, and they often view the Spanish- More than 25% of all web search is Queens, Brooklyn and the Bronx. language yellow page purchase as secon- seeking geographically relevant results, dary and discretionary. These products and the percentage of local queries will To increase usage... are a tougher sell than regular yellow increase with user sophistication, better Charles Laughlin from the Kelsey pages, and they are harder to renew.” search technology and deeper local con- Group notes that Hispanic Yellow Page However, not all specialists agree tent. Google and Yahoo web sites are publishers face a usage challenge, since with Laughlin: “The idea that renewal the biggest participants in the local it requires substantial investment in percentages within the Hispanic seg- search market and Yellow Page publis- promotion and distribution to generate ment are lower than in the general hers are increasingly partnering with

22 Hispanic Yellow Pages

search engines to provide local search only and Spanish-dominant Hispanics, online environments. who are the users of Hispanic directo- According to Kelsey’s Charles ries, tend not to use the English-lan- THE LAST Laughlin, “The best defense a directory guage local search vehicles,” says Mario publisher has against competition is a Echevarria of HYPA. FRONTIER OF strong sales force, which is an asset few others have. Another defense is a strong Print is still the industry’s HISPANIC PRINT brand that has been embraced by the bread and butter market. I think most publishers has the “While our online strategy is a top former. None in the Spanish language focus of our business, our core business space yet has the latter, but again, is obviously the printed directory. In a $4.25 billion Hispanic Telmex, with its Sección Amarilla Bundling and packaging with both advertising market, Hispanic brand, may change that.” products should multiply revenues at Yellow Pages only account for In the general market, Internet an exceptional rate,” says Sección Yellow Pages amounted to 6.7% of Amarilla’s Juan Reffreger. HYPA’s 3.6% in advertising volume, or total yellow page revenue. For the online directories have traditionally $165 million a year, growing to Hispanic yellow pages market, that reflected our printed books by having $200 million by 2009. However, ratio is probably lower, as the sector is the visual presence or impact. For still in an early stage and publishers example, If an advertiser buys a full- other forecasts see the market offer online advertising as a value page in our yellow pages, then they get growing to more than $500 added service. a full page online (with URL links to million in 2009. For the general “Until the Hispanic consumer their sites). We are currently enhan- becomes more acculturated and bilin- cing our online components to make market the Yellow Page Adver- gual in using the traditional search the experience more useful and impac- tising ratio is 5.7%, or more than engines and portals, this is somewhat ting for consumers and advertisers,” $14 billion, according to the premature for the market. Spanish- says Echevarria. Kelsey Group, a Princeton, NJ, What Type of Yellow Pages do Hispanics Prefer? based provider of strategic research and analysis on Ye- Advantages llow Pages, electronic directo-

Flip Books • Broadens the market and attracts English and ries and local media. National Spanish users advertising currently amounts • Some Hispanics choose to have the convenience of to approximately 10% of total the bilingual directory • Can attract first time advertisers by having an English advertising in the Hispanic ye- book and offering it in Spanish as well. llow pages market, and with the Spanish-only • Dedicated market- target one specific niche market expected growth of the His- Directories • When end user is only Spanish-speaking; more books panic yellow pages market, that for the population • Brand loyalty ratio is expected to increase. • Proven to be a more long term solution

SOURCE: Portada and publishers

23 Southwest The Arid Axis: Fertile Ground for Hispanic Advertising

ny marketer seriously attempting to MATT.org – MATT being an acronym for education: “Of these, we would say that reach Hispanic audiences nationwi- “Mexicans and Americans Thinking luxury fashion & accessories and healthcare A de knows that an important part of Together - is a website covering issues will grow the fastest,” says Cynthia Hughes, his target market resides in the Southwestern including immigration, Mexican politics, TODO Texas’ publisher. Open rate CPMs USA, particularly in the states of Texas, immigration laws and Mexico-U.S trade. (cost per thousand readers) for the publica- Arizona and New Mexico. John Paton, Lionel Sosa is MATT.org's CEO, and over- tion are relatively high, around $136. Its CEO of industry consolidator Impremedia, sees operations, including its website, con- advertisers include Saks Fifth Avenue, Louis who does not own any properties in the tent and marketing, with an eye toward Vuitton, and Cartier. Southwest, recently told Portada that he is business returns. MATT.org employs 40 to The magazine offers readers TODO interested in acquiring media properties in 60 employees in various cities. Card, an affinity card that provides mem- this area. In fact, in many parts of Texas, Another program targeting Texas as a bers with discounts and special offers from Arizona and New Mexico, Hispanics cons- whole is La Canasta de la Familia, which participating retailers. This allows adverti- titute the vast majority of the population. combines direct to door delivery with sers to extend specials through the magazi- Texas, Arizona and New Mexico make up direct mail components and an editorial ne's Web site and lure Mexican nationals to for approximately a third of the $4 billion product. La Canasta is a poly-bag that their businesses. “Our goal is to have 2500 Hispanic advertising market. Portada cal- includes inserts, product samples and a members by end of 2007,” Hughes adds. culates the size of these three states’ print publication called La Buena Vida. The pro- and digital media markets at $300 million gram for 2007 calls for distribution of with national advertising accounting for 2,000,000 total per drop, including deli- > HOUSTON, THE FIFTH HISPANIC 25% of it. very of 1,000,000 in California and MARKET Targeting the Southwest is even more 1,000,000 in Texas. “The program drops 4 With a population of about 5 million, important when marketing specifically to times per year and may have special edi- Houston’s DMA is one of the country’s top Mexican Americans, as they are more tions upon request,” notes Dub Doyal, five Hispanic markets, and is the largest numerous than any other Hispanic ethni- CEO of San Antonio-based ADS Media Hispanic market in Texas. Several publica- city, and in many cases constitute the majo- Group. The La Canasta program will tran- tions have a presence in the Houston mar- rity of the regional population. It is no sition to local and regional advertising in ket. Rumbo Houston is published Monday, coincidence that perhaps the most ambi- 2008. “The La Buena Vida publication Wednesday and Fridays and has a combi- tious Hispanic newspaper publishing ventu- will have a California edition, as well as a ned circulation of 230,000. It is published re, Meximerica Media’s Rumbo Newspapers Texas edition. It will include interesting in tabloid format and distributed for free. attempts to reach this demographic in San topics that are not dated such as cooking, Speaking on the shopping mentality of Antonio, Houston and Mc Allen. finance, sports, entertainment, health, etc. Houston’s Hispanic consumers, Mario Take Mission Foods’ Tortillas Guerrero It will be bilingual to accommodate its tar- Dueñas, publisher of Semana News says: marketing plan, for example: “What is get audience’s varying degrees of accultura- “Hispanic consumers in Houston have important for the Guerrero brand is rea- tion,” Doyal notes. Advertisers will have become more and more educated in their ching our customers, primarily the Mexican the opportunity to insert FSIs into the buying practices. Overall, they are more American customer,” says Jim Lucero, poly-bag and also to buy on-page adverti- likely to make purchases based on the qua- Managing Director and Head of sing in La Buena Vida. Doyal adds that the lity of the product and type of service they Multicultural Hispanic at Camelot product sampling and cooking section of receive. Price is a tertiary. Similarly, news- Communications, Mission Foods’ adverti- La Buena Vida has drawn the most interest print readership is firmly based on quality sing agency, which conducts a multimillion from advertisers. content and editorial that directly impacts dollar effort advertising Tortillas Guerrero. their lives.” The majority of Tortillas Guerrero’s sales Semana News is a weekly Spanish-lan- are in the West and Southwest. TARGETING AFFLUENT MEXICANS guage paper with a circulation of about Compass Bank, another Camelot Last fall, Todo Texas magazine was laun- 125,000. Over the past few years, the paper account, has a footprint that covers the ched. It is delivered to 55,000 upscale hou- has witnessed a steady increase in the num- Southeast, Texas, New Mexico and Arizona. seholds in Mexico City, Monterrey and ber of national advertisers targeting Compass Bank has had good results by inves- Merida, and inserted into La Reforma in Hispanics in the Houston market. These ting in radio, out of home and newspapers. Mexico City and in El Norte in Monterrey. have included print advertising by It has bought advertising in Hispanic newspa- The monthly magazine is targeted at Cingular, Verizon Wireless, and AT&T and pers in San Antonio and Albuquerque. affluent Mexican nationals visiting Texas. inserts by Sears, Best Buy and Target. Some Due to the strong connection between The main ad-categories represented in its advertisers, such as Verizon Wireless, the U.S. and Mexico, several print and digi- pages are Luxury fashion apparel & accesso- Target, and Amazon have opted to go after tal media properties celebrate Mexican ries; fine dining; healthcare; real estate Americans. San Antonio-based website (many buying second homes in Texas); and (continued on page 26)

Southwest

(continued from page 24)

the paper’s readership on the web. Spanish-language products, La Voz Loida Ruiz. According to Dueñas, automotive, con- (100,000, Spanish, weekly) and La Vibra National Sales Manager of Hispanic sumer packaged goods, and medical ad cate- (National 225,000, Spanish, weekly). La Publications at La Voz & La Vibra-The gories are poised to grow the most in 2007. Vibra is licensed to the Houston Chronicle Houston Chronicle, sees the financial sector Dueñas says that while national advertisers by Impremedia, and is distributed as an as playing a big role in the paper’s 2007 have shown increased interest in the insert and includes local content. Among advertising schedule. The Houston Chronicle Houston market, advertising from Mexican the national advertisers who run extended also runs a direct mail program called companies has been “negligible.” ROP schedules in La Voz are: AT&T, “Chron Direct” that can mail to targeted The Houston Chronicle publishes two Bank of America, Citibank, and Target. Hispanic households in the Houston DMA. According to Ruiz, Mexican advertisers are important to both La Voz and La Vibra: “We would love to see more business in this category. We are a great city to reach Mexicans. The majority of Houston's Hispanics are of Mexican origin (81%) and we are the largest city clo- sest to Mexico. Mexican nationals also travel to Houston for shopping and health reasons throughout the year.” Speaking to why Houston needs to be in the minds of all advertisers looking to establish a national Hispanic footprint, Ruiz notes, “We have the largest Hispanic population in Texas and the fifth largest market in the U.S. We are also fourth in buying power at $25.1 Billion.”

> EL PASO: ON THE BORDERLINE Located right on the border of West Texas and Mexico’s Ciudad Juarez lies the fabled city of El Paso, one of the most famous crossing points between Mexico and the U.S. The city is approximately 81% Hispanic, and more than 40% of the population is Spanish dominant. Given its geographical location, cross-border sales are brisk. The residents in Juarez and Chihuahua City account for 40 to 60% of the retail sales in El Paso, and tens of thousands of Mexican residents cross into El Paso every week. They spend an average of $58.5 million dollars in El Paso each and every week, or approximately $3 billion per year in El Paso, according to local estimates. There are a number of Hispanic-focu- sed publications in El Paso. El Diario (20,000, Spanish, daily, Editora El Paso del Norte) is a daily newspaper that receives steady advertising from big box electronics stores such as Best Buy and ComUSA. Much of these stores’ traffic comes from Mexican shoppers looking to get bargains on their electronics purchases. The paper also receives advertising from restaurants and depart- ment stores encouraging people to shop in Juarez. El Diario also recently launched an English-language weekly called the Border Observer, meant to be a lifestyle and entertainment newspaper distributed free every

26 Southwest

Friday in bars, restaurants and in more than benefit and endear the Hispanic community up to place ads, Cortez foresees growth in 300 single copy boxes throughout El Paso. by sponsoring news of cultural interest. this area. She points to San Antonio’s El Paso y Mas (50,000, Spanish, “The result was that our readers came to see highly acculturated Hispanic community as 2x/week, El Paso Times) is a Spanish-lan- this page as Cingular's service to our being one of the defining characteristics of guage newspaper published by El Paso Hispanic community.” their market. There are plans in the works Times (Media News Group, daily circ, Cortez sees the home improvement, to offer advertisers email and online delivery 73,204) that increased its frequency to financial, pharmaceutical, telecom and insu- options, as those capabilities evolve. twice a week this past October. It is now rance ad categories being big in 2007. published on Thursdays and Saturdays. El While Mexican advertisers are not yet lining Paso y Mas is currently trying to increase its exposure to national advertisers. Many retailers, including Home Depot and Dillard’s already advertise in its pages. The publication, now published twice a week, is free. Approximately 40,000 copies are home delivered and 10,000 are distributed in racks. El Paso Times publishes two other Hispanic weeklies TV y Más (entertainment oriented, circ. 35,000) and Autos y Más (automotive, circ. 35,000). El Paso Times has also experienced good results utilizing a Hispanic customer segmenta- tion tool owned by Claritas. Since imple- menting the tool, the publication has seen a 21 percent advertising revenue increase month-over-month, as well as an upswing in advertiser retention.

> SAN ANTONIO, MORE ACCULTURATED Lying between Houston and El Paso is San Antonio, a more acculturated town with a high proportion of English-dominant Hispanics. As is the case in many cities, broadcast networks gobble-up the majority of advertiser dollars, with print publications fighting over the rest. Conexion (50,000, weekly, bilingual), published by the San Antonio Express News, is a publication aimed at the area’s English-dominant Hispanics, while it’s recently launched counterpart, Cancha (25,000, 2xweekly, Spanish) goes after the Spanish-dominant market. Cancha is published in conjunction with Monterrey, MX-based Grupo Reforma. The two papers are meant to complement one another, according to Sales and Marketing Director of Myrna Cortez: “Cancha offers another segment, the first generation Hispanic market, to complement Conexion's 3rd generation audience, for total market penetration.” Cortez says that she’s seen some innovative approaches being employed by advertisers to reach the paper’s Hispanic readership: A successful campaign by Cingular was one in which the shell of their full page ad promoted their brand, but the content was editorial in nature. The concept was to

27 Southwest

Cancha and Conexion’s FSI growth has those who want to appeal to Mexican > MCALLEN, TEXAS: HEAVILY HISPANIC tripled year over year, attesting to that vehi- buyers who travel to San Antonio fre- McAllen, located at the very bottom of cle’s strength, according to Cortez, and has quently. Our direct mail program, executed the state, is another area with a large included national advertisers like Home by the San Antonio Express News, is a viable Hispanic population density, over 80% in Depot, Sears, Target, GM, and others. In and inexpensive way to target specific hou- most areas. The area’s main Hispanic papers addition, they offer an innovative doorhan- seholds in San Antonio or across the are El Periodico USA (60,000, weekly, ger program called “Mexico Express,” which country, for which we also provide extensi- Spanish) and La Frontera (20,000, weekly, grants U.S. advertisers the ability to deliver ve research,” says Cortez. Spanish), published by Freedom their FSIs to 60,000 affluent households in Communications’ The Monitor) and Monterrey, Mexico: “It is a solution for Rumbo’s Rumbo The Valley (60,000, weekly, Spanish). El Periodico’s advertisers include cell phone providers, big-box retailers and auto dealers. Publisher Jose Luis Garza predicts that cell phone and automotive advertisers will be big advertisers in 2007. Among the defining characteristics of the McAllen market is the overwhelmingly Hispanic population and the thousands of Mexican customers streaming in from over the border every week. Garza says that most Mexican advertising focuses on border services such as health and food services. They do not currently offer advertisers digital delivery options, but are currently working on that capability. “For our newspaper, FSI advertising is very important, because we have a largely home-delivered distribution system. Every time that a new FSI customer starts distributing with us, they stay as a customer, since we have an audited newspaper and an effective distribution system,” says Garza.

> DALLAS/FT. WORTH: WHERE THE BATTLE BEGAN In many ways the current expansion of Hispanic publications began when in 2003 both Dallas/Ft. Worth Spanish-language dailies (Al Día and Diario La Estrella) were launched. Al Día is published by The Dallas Morning News (Belo Corp) and has a net circulation of 53,336 for Saturday’s weekend edition and 32,967 average Monday- Friday, Diario La Estrella, now owned by McClatchy, is published five days a week, with an average of 27,000 to 32,000 copies which reach Hispanics in Dallas/Ft. Worth through home delivery and rack distribution. To Amy Hinojosa, Marketing and Circulation Director of Al Dia, the conditions for a successful Spanish-language daily are present in Dallas/Ft. Worth. Among the main conditions she cites a large Hispanic consumer base and its rapid growth, the – 1.3 million Hispanics living in the area (20%+ of market), who have a $21 billion buying power and a critical mass of adverti-

28 Southwest

sers – both local and national, who are tar- for Hispanic publications. Home Depot have both increased their geting the market. Hinojosa adds that Gannett owned The Arizona Republic Hispanic print investments since 2005. “since 1990, Dallas Ft. Worth has been the publishes La Voz (50,000, 2x weekly, Christofferson expects entertainment, finan- fastest growing among all the nation's mega Spanish) and TV y Mas (90,000, weekly, cial and pharmaceutical ad categories to be cities--only Los Angeles and New York have Spanish). Both publications run advertising strong in the coming year. Last year, The added more people. As for Hispanics, for national retailers like Sears, Target and Arizona Republic launched a weekend pro- Dallas and Tarrant counties alone have Best Buy, all of whom run FSIs. According duct, La Voz Fin de Semana, which goes out added more than a half-million Hispanic to Brooke Christofferson, strategic commu- to 60,000 homes in the Phoenix metro area residents. 70% of them speak Spanish, and nications manager at The Arizona Republic, with a combined 85% Hispanic household almost half speak only Spanish or prefer Home improvement stores Lowe’s and penetration. Spanish.” To William Vincent, Director of Advertising for Diario La Estrella, immigration is a key factor in the growth of Hispanic print. “In the Hispanic market is that the new and recent immigrants don't have broadband access yet and their numbers are growing. It's not going to stay that way for long, maybe 1-3 years. But during that time, this demographic represents great growth potential for Spanish-language print media. It's going to be the best ROP growth sector, maybe the only growth sector, over the next three years.” While Al Día and Diario La Estrella are distributed in racks and through home delivery, at least a dozen weekly newspapers, some of them large and well-established, are mostly distributed at supermarkets (Fiesta, Costplus), grocery stores and restaurants. The papers are placed alongside real estate guides and other free publications, in bas- kets at the store's entrance. National advertisers are present in Dallas/Ft. Worth’s Hispanic print and digital media properties. “We have developed and executed successful campaigns for Univision, H&R Block, American Airlines, Time Warner, Firestone to name a few,” says Brent Murphy, publisher of Mercado Bilingue, a Dallas/Ft. Worth based Spanish-language monthly (circ. 50,000), tells Portada. For 2007, Murphy sees particular growth potential in the financial services category. (For an in-depth profile of this market check out www.portada-online.com).

> PHOENIX, FIRST IN HISPANIC GROWTH Phoenix, Arizona, is certainly a major center of the Southwest, with a Hispanic buying power of $25 billion. Phoenix is the 8th largest Hispanic market in the country and continues to grow. Between 2000 and 2005, Phoenix ranked first among major cities in Hispanic population growth (33.5%). Phoenix Hispanics also have a very strong ties to Mexico, since 75% of Hispanics in Phoenix who were not born in this country came from Mexico. As such, there is a great demand

29 More than Machismo: Hispanic Men's Magazine Market

uch like the general market, Hispanic men’s magazi- them and appealing to their lifestyle interests. The magazine nes and digital media properties run the gamut of brands itself as being “For Men of Passion,” and accordingly M subject matter, from general interest to urban inte- tries to include elements that its readership is passionate rest, sports to automobiles. about, such as “futbol,” travel, food and, of course, beautiful One magazine that is not intended to be exclusively for women. men, but whose audience is largely male is New York’s Hombre is bilingual, with the articles written in English Urban Latino. The monthly magazine has been around for and then summarized in Spanish. When asked from where over ten years and, as its name implies, covers topics that are the need for a magazine like Hombre comes, Robert of interest to the urban Latino community. “When we first Dominguez, editor at large, says, “Today, Hombre is the only started back in 1994, we were really just trying to get exposu- magazine of its kind. There is a real need to address Latin re for artists that we liked that we felt were not getting the men and their interests. There are publications in Spanish, attention they deserved,” says publisher Jorge Cano-Moreno. but Hombre is the only bilingual publication in today's mar- “I was and still am a big fan of Vibe, and initially set out to ketplace for Latin men.” Advertisers interested in reaching bring that model to the Hispanic community.” Hombre’s readers include Absolut, Fruit of the Loom, Harley And as the magazine has grown and aged, so has its Davidson, Jose Cuervo and Calvin Klein, among others. audience, with its target audience being Hispanic males, 27- Hombre’s distribution relies on subscriptions, newsstand 35. “A lot of our readers are second and third generation sales, and distribution of promotional copies at events. Latinos,” says new editor-in-chief Zeta Rivera. “So a lot of “Sponsorship and participation in major events is an impor- our content focuses on things that are relevant to more accul- tant focus of the magazine,” adds Dominguez. turated Hispanics, while still maintaining the home-country Targeting a similar audience as Hombre, and covering sensibilities of their parents and grandparents.” That is why more or less the same editorial terrain, Bello is a quarterly they publish the magazine in English, says Rivera, although magazine with an audit-pending circulation of around she adds that there is some Spanish thrown in there too, 351,000 copies. Full page ads are available for $26,000. mirroring the way many second and third generation Latinos Another difference is that Bello is an English only magazine communicate with each other. that attempts to capture some general market readership in addition to its Hispanic readership. STREET SMARTS Its tagline is simply “Power, Culture and Success,” indi- One way in which Urban Latino sets itself apart from its cating the market segment that it is trying to appeal to. Each competitors is by publishing themed issues, such as a hip-hop issue features editorial coverage of politics, art, fashion cultu- issue. One thing they want to make clear however is that the re and international. Being a quarterly publication, the maga- magazine is not your typical “blinged-out” forum for rappers zine tries to cover as much ground as possible, so it also to show off their fancy necklaces. “We deal with topics on a reports on sports, real estate and technology. more substantive level,” says Rivera. “Our next issue profiles Last year, Bello partnered with Time Warner Cable to Fidel Castro and his life, for instance. For so many younger promote the magazine with banner advertising on Time Latinos, this is a familiar face, but so many people really Warner's website, as well as on some of TWC's radio and don’t know anything about him.” The publication’s circula- television properties. Bello currently has a distribution arran- tion is around 85,000 monthly, overwhelmingly subscrip- gement with HEB stores. The magazine's ad-sales representa- tion-based. Advertisers include Nissan, Land Rover, Pepsi, tives are PanAmerican Communications in the Southeast and and Hennessy. Urban Latino is currently in the process of HMPM on the West Coast. Its main ad-category is automo- rolling-out an online edition of its magazine. tive, with Mercury, Honda, BMW and Lexus all advertising. Catering to a more upscale audience, Hombre magazine Representing the highly popular auto category is Sobre targets successful Latin men aged 21-39. Its mission is to Ruedas, the Spanish language monthly that distributes natio- serve as a forum for successful Latin men by both profiling nally as an insert and has a circulation of over 620,000

30 Mens Magazines and Digital Media

copies. The publication is inserted in newspapers nationally, including El Nuevo Herald, El Diario La Prensa, La Raza Chicago, La Opinión in L.A. and others. Editor Jaime Florez says his pub is different from some of the other Hispanic automotive magazines in that, “We’re a bit more oriented to the consumer than some of the other magazines that cater to tech-savvy auto enthusiasts. Our magazine is accessible to anyone with an interest in cars.” Editorial Televisa has a host of men’s magazines tailored to the Hispanic market. Most of these are successful general market publications that have been adapted to serve a Latino readership. Maxim en Español, whose general market counterpart hel- ped to redefine the modern men’s magazine, is also rather popular as a Spanish-language edition. Maxim en Español characterizes itself as “Irreverent, sensual, useful and sponta- neous,” attributes which its readers would likely want to ascribe to them- selves. It deals with classic men’s interest topics like women, music, technology, sports, autos, etc. The monthly magazine is written completely in Spanish, is distributed through subscriptions and newsstands, and has a circulation of 80,000. Interestingly, when the magazine first launched in Spanish, it had a single editorial team for the U.S., Central American, and South American markets. However, they found that the magazine was not resonating the way they thought it should be with their Latino readership.

31 Mens Magazines and Digital Media

SPEAK TO ME 2005, covers mainly sports of Hispanic interest such as For one thing, the idioms used by many U.S. and Hispanic and European soccer teams, Dominican and Puerto Central American Hispanics are quite different from those Rican baseball. However, he says that it also covers general used in South America. Today, Maxim en Español has three market sports such as NASCAR and football to help those separate editorial teams: One in Miami, handling the U.S. who wish to learn more about sports popular with the gene- edition, One in Mexico handling Central America and the ral public. The magazine distributes about 50,000 copies in Northern Andes region; and one in South America providing the U.S. and 20,000 in Puerto Rico. content for the Argentina and Chilean markets. Rival magazine Fox Sports en Español (750,000, monthly, Men’s Health en Español is another highly-popular title for Spanish), published by Cuatro Media is also quite a popular both the general market and Spanish-language market. Its publication targeting the 18-34 male audience. Advertisers target readers are health-conscious males, 19-34 years of age. include VW, Johnnie Walker and Fruit of the Loom. The As its name suggests, much of the magazine’s editorial cove- magazine is content-heavy and covers sports both on the field rage is devoted to exercise, sports and healthy living, compri- and in the boardroom. It is mostly distributed as an insert in sing 40% of the magazine’s coverage. The rest is devoted to Hispanic newspapers nationwide. sexuality and relationships, nutrition and weight control, Also in the sports arena, and also mostly distributed as a work and stress issues and travel. The magazine claims to newspaper insert, we have Sensacion Marketing’s products, garner about five readers per copy. Fútbol Mundial (1 Million Circ., Monthly, Spanish) laun- ESPN Deportes la Revista is an important Editorial ched in 2002, and Beisbol Mundial (1 Million Circ., Televisa property with high brand loyalty. According to Monthly, Spanish), launched in 2005. Felix Sencion, Miguel Chala, the magazine’s brand manager, 86% of the President of Sensacion Marketing, says that there are a few magazine’s readers do not read any magazine besides it. He things about his products that stand out from others in the also points out that the magazine, first published in August market. “First, we were the first to market, launching Fútbol

COMPETITIVE INTELLIGENCE COMES WITH EVERY SUBSCRIPTION TO PORTADA GET YOURS TODAY! WITH A SUBSCRIPTION TO PORTADA YOU WILL BE ABLE TO:

• Download any and all past issues in PDF format at www.portada-online.com • Access Portada's online article archive at www.portada-online (including ad campaigns, media market profiles, content analysis, and much more) • Read the full articles from Portada's weekly e-newsletter • Qualify for discounts to Portada directories and services Subscribe online at http://www.portada-online.com/subscribe.aspx To order by phone please call 1-800-397-5322

32 Mens Magazines and Digital Media

Take your pick

MAGAZINE LanguageFrequency Circulation Distribution Advertisers

Urban Latino English Monthly 85,000 Subscription Hennessy, Land Rover Hombre Bilingual Bimonthly 150,000 Subs/Stands Absolut, Harley Davidson Bello English Quarterly 351,000 Subs/Stands Mercury, Honda, BMW Maxim en Español Spanish Monthly 80,000 Subs/Stands Fragrance, Tech, Spirits Men's Health en Español Spanish Monthly 200,000 Subs/Stands CPG, Apparel, etc. Popular Mechanics en Español Spanish Monthly 55,000 Subs/Stands Tech Products Fox Sports en Español Spanish Monthly 750,000 Insert VW, Johnnie Walker ESPN Deportes La Revista Spanish Monthly 50,000 Subs/stands Jeep, McDonald's, Armani Fútbol Mundial Spanish Monthly 1Mill. Insert AT&T, US Navy, Coke Beisbol Mundial Spanish Monthly 1Mill. Insert Nissan, Allstate, Viagra Sobre Ruedas Spanish Monthly 600,000 Insert Hyundai, Chevrolet, Allstate

SOURCE: Portada

Mundial in 2002. We also have the largest audited circula- America – penned a deal in December with MSN to create a tion, with a million-plus copies distributed of each product content-rich online sports hub at www.foxsportsla.msn.com. every month. Finally, we are thee first company in sports The website will be customized to suit the sports preferences media to cross over from Spanish to English with our FMusa of the different visitors from the U.S., Mexico, and Latin soccer magazine, distributed in USA Today.” America. The move is a departure from Fox Sports en One interesting case is that of National Geographic en Español’s previous approach of signing distribution deals with Español, which is not intended to be a men’s magazine, but various Spanish-language portals. Now that they have conso- whose readership is predominantly male. Chala asserts that lidated editorial control over all of their content, they have the magazine is the most popular general interest magazine in decided to distribute it exclusively through the new website. Latin America. National Geographic en Español shares appro- Yahoo! en Español and Telemundo have also partnered in ximately 85% of its content with the general market edition launching a Spanish-language sports site, and has the highest subscription price of any Spanish-langua- http://Español.sports.yahoo.com. ge magazine distributed in the U.S., averaging $24.00 for a In addition, some of the larger, Spanish-language websi- year’s subscription. tes have special channels that cater to men. Batanga has a Overall, Hispanic men’s magazines mirror general market channel called simply “Chicas,” featuring beautiful and scan- men’s magazines in scope and style. They cover a broad tily-clad women. It also has an auto channel. range of topics, and appeal to every sizable niche interest. AOL Latino does not have any channels aimed at the male One thing to look out for in the coming years, as the U.S. libido, but does offer an auto channel, a sports channel, a soccer- Hispanic population grows and becomes increasingly accul- specific channel, and a channel devoted to money and success. turated, is the arrival of more Hispanic magazines that cover Terra has a channel called “The Girls,” featuring photos topics of interest to Hispanics, but do so in English. of seductive women in limited clothing. Although there is no nudity, one must verify that he is an adult before entering... ONLINE... sources tell Portada. Terra also features a jokes channel, lar- In addition to the host of print properties designed for gely directed at men, and a recently launched women’s chan- Hispanic males like those cited above, there are a number of nel, directed specifically not at men. web destinations carved out just for men, too - no, not those So whether in the Hispanic print or online space, the destinations. Many of the aforementioned magazines have options for men are myriad. Virtually every interest is repre- online extensions. ESPN Deportes has quite a sophisticated sented, From Sports to street-life, to success. But the thread site, offering advertisers cutting-edge delivery methods, like that binds virtually all of these properties is their inclusion of pre-roll video, and channel sponsorships. irresistibly sultry females, rendering the classic James Brown In a deal that is sure to put pressure on other online lyric particularly apt in summing up the men’s magazine and Hispanic sports websites, Fox Pan American Sports - which online media market: “It's a man's world. But it wouldn't be operates U.S.-based Fox Sports en Español and Fox Sports Latin nothin' without a woman or a girl.”

33 Content

Role of the Media: Two Sides of the Journalistic Coin

t has been said that while objec- University of Ohio, sees this situation “Esto Que Pasa” on Radio Nacional in I tive reporting is the standard of as clear-cut, saying that the reporters Argentina was cancelled in January of modern-day journalism in the who accepted money did indeed violate 2006, allegedly because he had critici- U.S., the Latin model is often more journalistic ethics: “The biggest pro- zed President Nestor Kirchner on the opinionated, government-influenced, blem with accepting money to promote air for not giving news conferences, and in many cases amounts to straight any point of view is that the person something he found unacceptable. advocacy journalism. who pays the reporter is essentially Following a December 30th broadcast, “What is often the case with Latin buying news coverage -- which is not he was notified by Radio Nacional’s American journalists is that they cannot supposed to be for sale. Taking money director general that his show had been survive on a journalist’s salary alone, so in exchange for providing coverage also dropped from the schedule for the they might take a job in PR or in some means the journalist is using his or her coming year, with no further explana- other advocacy position. That’s where position for personal gain, which is tion other than that an order had the conflicts of interest can arise,” says pretty much the definition of corrup- “...come from above.”

Government trying to exert influence over what is reported in the media is hardly a Latin American phenomenon

La Opinión’s executive editor Pedro tion, isn't it?” The incident drew fierce criticism Rojas. “In some cases, Latin American La Opinión’s Pedro Rojas is also from the group Journalists without journalists will come here to work in firm in his conviction that the journa- Borders, who characterized the govern- U.S. Hispanic media and don’t realize lists acted inappropriately, saying that ment’s actions as censorship, plain and that it’s unacceptable to do that here.” his concern is that people will view this simple, saying in a statement, Following the much-publicized scandal type of behavior as endemic to “Politicians in power have no right to that rocked El Nuevo Herald in Hispanic Journalists. As he told New meddle with a news media’s program- September, many questions have been America Media’s Elena Shore following ming, even a public one’s.” In an act of raised about the ethical conduct of the the incident, “Quality is not relegated self-censorship, both the director gene- reporters involved. To summarize the to mainstream media. Quality and ral of Radio Nacional and the presi- events that touched-off the firestorm, it ethics are for all of us in this profes- dent’s chief of staff declined to com- was discovered and reported by the sion.” ment on the matter. Miami Herald that a number of El Another ethical tangle presents itself Of course, government trying to Nuevo Herald journalists had taken in the case of government subsidized exert influence over what is reported in money for appearances they made on media, where an obvious tension arises the media is hardly a Latin American U.S. government-backed Radio and between reporting critical news and phenomenon. In fact, some of the most TV Martí. Jesús Díaz, publisher of the jeopardizing the well-being of the news publicized instances of government Herald, promptly fired the accused outlet. One much publicized case is trying to control the press’ coverage reporters for their alleged misconduct. that of Jose Eliaschev, whose show have come from the U.S. media in the They were later re-hired on the grounds that there was no clear policy in place prior to their dismissal forbid- What makes for Balanced Reporting? ding such appearances. Although the dust has now settled, with a new policy dictating that journa- > Strong journalistic integrity lists may appear on television – uncom- pensated - to espouse political opi- > Media property has solid editorial and financial resources nions, the question remains: Did their > Diverse advertiser base behavior breach essential tenets of journalistic ethics, or is this simply a clash > Government advertising is a low % of overall advertising between Latin and Anglo journalistic ideologies? > Strong reader involvement Cheryl Gibbs, visiting assistant pro- > Comfortable income level of media property's staff fessor of journalism at Miami

34 Content last few years with the coverage of the actually pulled the plug on a news sour- Pedro Rojas: “Take a paper like the Los Iraq War. The Abu Ghraib prison ce simply because the reporter exercised Angeles Times, for instance. They have scandal where U.S. Soldiers were found his freedom of expression. In the Abu large teams of journalists and fact-chec- to have tortured and humiliated Iraqi Ghraib example, the administration was kers. A smaller paper, as many prisoners was a story over which the trying to affect how the incident was Hispanic papers are, simply does not U.S. government attempted to exercise covered, but did not resort to punishing have the same resources. As a result, considerable control. The Bush admi- those who did not comply. While still they might not verify the facts that they nistration argued that publishing pho- disagreeable, the second case does not get from their sources as aggressively as tos of prisoner abuse was aiding the cross the threshold of overt censorship they should. In any case, I think it’s enemy’s cause by fueling outrage in the that the first case clearly does. fair to say that the journalistic approach

“Ethical breaches often arise from a shortage of resources, rather than from some special-interest agenda.”

Middle East, and consequently urged In the U.S., the majority of ethical of U.S. Hispanic publications is more restraint from the press. breaches in Hispanic media arise from akin to the U.S. general market than to The difference between the two ins- a shortage of resources, rather than the Latin American model. The Miami tances is that in the case of Argentina’s from some hidden political or special Herald case was an isolated incident Radio Nacional, the government interest agenda, says La Opinión’s among an isolated group of reporters.”

Content News Newswires Cater to Content-Hungry Spanish-language Websites

ncreasingly, large Spanish-lan- content can help to serve this purpose. ces, and are interested in incorporating I guage sites like AOL Latino, While a paper's staff might focus more some of the more advanced rich media MSN Latino, Yahoo! en on local content through the print pro- services that the larger websites are using. Español, and others are relying on duct, a website featuring recent news- newswires to fill their content needs. wire content from a host of Latin “These larger websites need immediate countries can connect with its readers MOCHILA EXPANDS HISPANIC information delivered directly to their on a different level. “Many U.S. CONTENT channels. Most of this content is Hispanics want to be connected with Mochila – the online content mar- accompanied by a photo or other rich what is happening in Latin America, so ketplace - has just announced some media, such as audio or video features,” Internet is a very accessible option to new partnerships with major Hispanic says Rafael Carranza, sub-director of know what is happening on a daily content providers that will serve to sig- sales North America for Efe. basis in their country,” says Carranza. nificantly increase its Spanish-language And newspaper websites aren't Newspapers like La Opinión offerings. being left out if the action either. For (Impremedia, Los Angeles, 122,000, One of its new partners, Rumbo, many newspapers, the website is a rela- Daily, Spanish), Siete Días (TV Net owned by Meximerica Media, is well tionship-building forum, where they Productions, Tampa, Circ. 30,000, known for its publications targeting can engage their readers with interacti- weekly, Spanish), Hoy (Tribune, Texas Hispanics. The company reaches ve features and online promotions, as Chicago, Los Angeles, New York, circ. over 410,000 Hispanics a week with its well as with news from a user's home varies per city, Daily, Spanish) and Al Spanish-language products. country. Since many smaller publica- Día (Belo Corp. Dallas/Ft. Worth, Mochila also signed with Starmedia, tions' websites do not have their own 50,000, Daily, Spanish) are all taking editorial teams, the newswire-provided advantage of new swires' internet servi- 35 PORTADA-ONLINE (www.portada-online.com) Get the latest on the expansion of content for Hispanic audiences by checking out our website and subscribing to our targeted content e-newsletter.

Content News

a popular Spanish-language web portal, Communications). various large retailers across the country with various channels covering a wide including Duane Reade, Family array of interests. Starmedia recently re- Dollar Stores, and Blockbuster. launched its women's channel with MOVIDA WIRELESS ADDS new content and features. Miami-based CONTENT AND FEATURES GDA, Grupo Diarios America, is ano- Movida, the pay-as-you-go wireless GETTYIMAGES.COM LAUNCHES ther new feather in Mochila's Hispanic company that specifically targets NEW BETA SITE cap, as one of the biggest Hispanic-cen- Latinos, is adding to its library of ring- Getty Images launched a new beta tric news aggregators in the country, tones, wallpapers, and other options, as site, which includes a Spanish-language representing 11 Latin American papers it approaches the 500,000 subscriber search function. The new site includes, with a combined daily readership of mark. for the first time, the entire catalog of over 5 million. Among the services now available to Getty's images. Other features include Mochila also recently signed with Movida customers is access to informa- the ability to: filter a single database of Excelsior (Freedom Communications, tion services such as sports scores and more than nine million editorial and Orange County, circ. 55,000), the team statistics, as well as information creative images in a matter of seconds California-based weekly paper targeting about telenovelas and other popular with a “contextual refinement” feature; Hispanics in Anaheim and Santa Ana. television shows. conduct original searches with an Excelsior is published by The Orange Movida was first launched in Wal- AMP-enabled, fully localized search County Register (Freedom mart stores, but is now available at engine in German, Spanish and English (U.S. and UK), always the standard for Getty Images creative imagery searches, and now available for editorial imagery. In addition, the company is invi- ting its customers to give it feedback on the new site in order to improve the overall functionality of the site.

SPRINT OFFERS TWO NEW HISPANIC MOBILE CHAT COMMUNITIES In an effort to target Hispanic mobile customers, Sprint Nextel is offering two new mobile chat communities to its customers. The first is called Chat del Mundo and allows users to create profiles, share pictures and video, and interact with each other worldwide. The service is available in Ecuador Colombia, Spain, Chile, Panama, Venezuela, Argentina and the U.S.A. The second mobile service Sprint is offering is called “Mucha Chat,” and allows users to create profiles and search other users by location, age and description. Users may send each other messa- ges at a cost of $0.50 per message sent. These new offerings serve to complement Sprint's bilingual chat product, “Latino Lounge,” which the company launched earlier this year.

36 R

P ORTADA' S SUPPLEMENT ON DIRECT MARKETING TO H ISPANICS

Show Me a Sign! Retailers Connect with Latinos through Bilingual Signage Responding to demographic realities Target, Home Depot and Sears are as having bilingual staff who can help that have Hispanic populations swelling among the most prominent retailers to with individual issues and bilingual call- in economic centers nationwide, most implement bilingual signage. But bilin- centers to aid with customer service. major retailers are developing ethnic gual signage is not an isolated develop- According to a GfK NOP Hispanic outreach strategies that include bilin- ment in these stores, but rather one ele- OmniTel Retail Study published in gual signage in store locations with lar- ment among many designed to make gely Hispanic clientele. Wal-mart, ethnic shoppers feel more at ease, such

( 37 ) In-store Signage

2005, the top three reasons among ducts are in the different aisles, and the value of the product, and how inex- Hispanics for shopping at big-box there are signs that are meant to enga- pensive it is, incentivizing the consu- retailers are the same reasons cited by ge and resonate with the consumer on mer to make the purchase. the general market. For instance 77% an emotional level.” Oliva stresses that However, says Oliva, with of Hispanics polled cited low prices as this second type of signage is particu- Hispanics it is often more effective to the reason for shopping at these stores; larly important to Latino shoppers, stress the quality of the product along 72% cited convenient location; 71% because shopping is more of an emo- with its value: “When we shop, it is cited the wide-range of merchandise tional and pleasurable experience for very much about providing for our and once-stop shopping potential that them. “For many Latinos, shopping is families. So what we want to hear is, these retailers offer. an enjoyable experience. For the most 'Hey this is Nestle, a great brand that's The same study revealed an impor- part, we are working our tails off in been around forever, come and try it tant “second-tier of priorities” that also this wonderful country that has embra- out!' That way we feel we are providing influenced Hispanics to shop at these ced us, and when we go to shop, it is the best-in-class for our families, and stores: 54% said that the presence of when we are in power. We like to our neighbors see that as well, which is bilingual staff was a factor; and 47% shop, and we like our peers to see us important to us.” Conversely, if all that cited bilingual signage as important. shopping. For much of the general the signage emphasizes is how cheap “Of course there are two types of market, however, shopping is a chore the product is, the Latino consumer Purpose-driven Signage,” says Carlos that has to be taken care of.” may feel that he is cheating his family Oliva, a principal at Because of these distinct attitudes or will be viewed as doing so by his Miconexxion.com, a company offering toward shopping, the messaging of neighbors. turn-key marketing solutions to retai- such signage needs to be different to Oliva cites a recent campaign that lers and CPG manufacturers. “There appeal to each group. Since shopping is his company did for Nestle's Chocolate are signs that are meant to convey very often seen as a hassle for general market Milk. They wanted to convey the basic information such as what pro- consumers, much of the emphasis is on health benefits of the product to appeal to Hispanic parents while wanting to emphasize the fun to appeal to the kids. So they developed a growth chart to track the child's healthy development for the parents, and used the Nestle mascot bunny rabbit to appeal to the kids. Then they placed these promotional materials right at the point of sale to maximize response. Oliva says the program met with great success.

Top Five Reasons Hispanics shop at Big Box Retailers

1. Low Prices

2. Convenient location

3. Range of Merchandise

4. Bilingual Staff

5. Bilingual Signage

SOURCE: GfK NOP Hispanic OmniTel Retail Study

(continued on page 42)

( 38 ) PORTADA-ONLINE (www.portada-online.com) Get the latest on the expansion of direct marketing in the Hispanic market by checking out our website and subscribing to our targeted print and digital media e-newsletters.

News and Trends

Scholastic Intensifies Mailing for its Three Hispanic Continuity Clubs...

cholastic Inc increased marketing TV Novelas, Fama, TV Notas, are looking for products that are highly S efforts for its Hispanic Continuity Cosmopolitan en español and Vanidades. branded and are part of the general media. Clubs with a push in direct mail Also during the fourth quarter of 2006, Hispanic kids in the U.S. identify with what activity in late 2006. Scholastic did a smaller direct mail test for their general market peers have.” Scholastic In 2006 “Baby’s First Disney Books” Clifford en español, another Hispanic con- also plans to boost its Internet marketing to (see Direct Mail offer analysis on page 39) tinuity club. increase Hispanic book clubs memberships. started to incorporate direct mail (both sha- “Our Hispanic Continuity clubs had a (For more information search for the red and solo mail) into its marketing mix very comprehensive strategy for the year following articles on Portada-online.com: that, until then, was mostly supported by 2006, most of them had four mailings over “Bookspan develops different strategies for outbound telemarketing. a 12 month period, one round of magazine its Spanish book clubs”, “Marketing publi- In late 2006, Scholastic did a solo mail insertions and several telemarketing cam- cations to Hispanics”). drop promoting its Nick Jr. en español paigns,” says Londoño. book continuity club, which includes famous characters like Dora the Explorer. ...AND A FOURTH ONE WILL COME PUERTO RICANS' HAVE A HIGHER “It was a drop in the hundred thousands,” THIS APRIL DIRECT MAIL RESPONSE RATES, Senior Manager of Niche Marketing at In April, Scholastic is launching another ACCORDING TO STUDY Scholastic Jorge Londoño tells Portada. In Hispanic continuity club which will be hea- A full 75% of adults of Puerto Rican addition, Scholastic inserted single sheet vily marketed via direct mail. Londoño does FSIs in five Hispanic magazines including not want to disclose more but says that “we

( 39 ) News and Trends

descent read direct mail, according to a just- led the U.S. Hispanic population in-home ned Brown Printing Company to print released survey entitled Vertis Customer internet access, at 53% vs. 38.1% and high- out its U.S. Spanish-language and English- Focus 2007: Opiniones. speed internet access, at 18.4% vs. 12.4%. language catalogs. Approximately 71% of all Hispanics Ikea's largest U.S. catalogs have a circula- read direct mail, and Puerto Ricans rate tion of more than 7 million. Ikea frequently highest among all of the subgroups. Scott IKEA WAGES DIRECT MAIL employs a saturation strategy that drops thou- Marden, director of market research for CAMPAIGN IN 3 MARKETS sands of its catalogs into daily and weekend Vertis, speculated that the reason that Home furnishings retailer Ikea recently papers. No word yet on which Spanish-lan- Puerto Ricans index higher is because they launched a Spanish-language direct mail guage publications Ikea intends to engage. are more likely to speak English in the campaign in three key U.S. Hispanic mar- Ikea has 23 stores in the U.S. based in home, and be receptive to English language kets: Chicago, Dallas, and L.A. the following states: Arizona, California, direct mail than the average Hispanic Ikea handles its direct mail campaigns Connecticut, Ilinois, Georgia, family. As a result, Marden suggested that in-house, while Anita Santiago Advertising Massachusetts, Maryland, Michigan, advertisers look at bilingual messaging to helps produce its Spanish-language copy. Minnesota, New Jersey, Philadelphia, reach those Hispanic segments that do not Texas, Virginia, and Washington. possess strong Englsih speaking skills. ...AND PRODUCES A SPANISH- The home furnishings retailer will soon The survey of 500 Spanish-speaking and LANGUAGE CATALOG open stores in Florida, New York, Orlando 500 English-speaking Hispanic adults The mega home furnishings retailer and Utah. Ikea's Hispanic agency of record found that while only 58% of Hispanics has also developed a Spanish-language is Santa Monica-based Anita Santiago. who speak Spanish in the home read direct catalog for the U.S. market. Ikea has retai- mail, 70% of those who do respond to it. The following chart marks the other diffe- rences between those Hispanics that speak English at home and those who speak New Lists Spanish at home. > CASTALIAN MUSIC SPANISH > SU CASA • Description: Castalian Music Spanish • Description: Su Casa Subscriber List pro- Good response rates Speaking Product Buyers list offers this list vides a female-heavy list (70%) of people of consumers who have bought Spanish- interested in building or remodeling their Spanish speakers Spanish speakers who speak: who speak: language CD's and DVD's from Castalian's homes. English at Home Spanish at Home commercials and infomercials on stations • Of interest to: Home Furnishings Retailers, such as Univision and Telemundo. Contractors, etc. Responded 60% 70% • Of interest to: Hispanic Music Marketers, • Quantity: 80,400 Catalog Mailers, Music Publishers • Price base: N/A Went to Sender's Website • Quantity: 200,801 • Contact: Fassano & Associates 30% 32% • Price base: $80 Went to Nearest Location • Contact: Dave Boyd, (845) 230-6300 > MACROMARK LISTS 26% 29% • Description: MacroMark Lists provides Called 800 Number > CAPITAL SPANISH-SPEAKING investment, health, business opportunity, 12% 17% HOUSEHOLDS grant lists, loans, adult, catalog and Email Reply • Description: Capital Spanish-speaking fundraising lists as well as Hispanic lists. 7% 9% Households is a list of Spanish-Speaking • Of interest to: Those in the above lines of Americans who have responded to work looking to solicit new business. Spanish-language catalogs or phone solici- • Quantity: N/A SOURCE: Vertis Communications tations, or have been added as a result of • Price base: N/A an ethnic encoding system. • Contact: [email protected], In addition, a new report released by • Of interest to: Computer Retailers, book [email protected] Miami-based Media Consulting Group cites publishers and retailers, Puerto Ricans as an emerging online mar- • Quantity: 4.3 Million ket-force. The report points out that with • Price base: $90/M 3.9 million Puerto Ricans now living in the • Contact: Rubin Response Management U.S., they number more on the mainland than on their native island, where about 3.8 million currently reside. They also constitute the largest U.S. Hispanic sub-group behind Mexicans. The report also revealed that over half of all U.S. Puerto Ricans – approximately 2 PORTADA BACK ISSUES million – are online, while in Puerto Rico BUY A PDF ONLINE TODAY AT: that number is closer to one-quarter of them. http://www.portada-online.com/issues.aspx?cn=Past+Issues The report also found that Puerto Ricans Or call 1-800-397-5322 to get a hard copy.

( 40 ) Offer Analysis: Children's Books Disney Promotes Bilingual Books with Shared and Solo Mail Program

res showing the members what books they can order. The 1 THE PRODUCT Mosaico ride-along was distributed in mid-October in The “Baby's First Disney Books” collection consists Spanish. It was printed on a 5.25” by 8.25” card whose crea- of 24 bilingual books. One new book is added per year and tive read, “Sus primeras palabras, sus primeros pasitos, y one is deleted from the list. The top of each page is in ahora, sus primeros libros (Your child's first words, first steps English and the bottom of each page is in Spanish. The and now, first books)!” books display Disney characters and colorful pictures. The As a premium, the piece offers to get three books free books display Disney characters and colorful pictures, and with a one-book order of $4.99, and also offers a “Winnie the try to introduce early learning skills to babies. Pooh” bowl and spoon. An additional offer is made to receive two more books for the price of one (An additional $4.99). The offer also solicits the recipient’s email address. 2 VEHICLE A: SOLO MAIL PIECE 4 THE RESULTS The piece offered the typical “Order now get three Direct marketers typically don't want to provide free and one to preview.” response rates, and Scholastic is no exception, in part because The piece was in Spanish (See image) because, they are still calculating the response. However, sources at “Scholastic wants to provide a complete marketing experien- Scholastic did tell Portada that the response rates for their ce in Spanish,” Jorge Londono, Senior Manager Niche solo mail efforts are usually higher than for shared mail, but Marketing at Scholastic, tells Portada. The piece includes a CPM costs for the solo mail pieces are 20 times higher. Solo scratch-and-win game on the front of the envelope, adverti- campaigns bring on a more qualified customer: Someone sing in Spanish that everyone wins up to three free bilingual who understands better what the product is about and who Disney books for free. The “Winnie the Pooh” bowl and is going to collect more books. spoon are offered as gifts, as in the shared mail piece. Additional books are offered at a price of $12.00, plus an unspecified sum for shipping and handling. The offer also solicits the recipient's email address. The piece was mailed 5 EUTURE ACTIVITY: out of Jefferson City, MO, in a 6” by 9” envelope. Until 2006, Scholastic marketed the Hispanic ver- EXPANSION ON THE WEB sion of “Babies First Disney Books” with outbound telemar- Direct marketers typically don't want to provide keting. But in 2006 it launched a direct mail campaign. response rates, and Scholastic is no exception, in part because First drop was in June 2006 and over 12 months, they are still calculating the response. However, sources at Scholastic did three drops. It will also have two more mail Scholastic did tell Portada that the response rates for their campaigns by May of 2007. solo mail efforts are usually higher than for shared mail, but CPM costs for the solo mail pieces are 20 times higher. Solo campaigns bring on a more qualified customer: Someone 3 VEHICLE B: who understands better what the product is about and who SHARED MAIL is going to collect more books. Extending essentially the same offer as the solo mail piece, Scholastic used a shared mail, or co-op mailing, piece with a simplified and smaller version of the solo mail campaign. The piece was sent out in a Mosaico Book Club Ride- along Program and was also included in Mosaico, BMG and Rodale Book Buyers. Scholastic's shared mail program started last June. According to Scholastics, the total amount of shared mailings dropped was close to 1 million at the end of the campaign in December, 2006. In this program, the insert rides with monthly mailings to Mosaico club members. The mailings have brochu- ( 41 ) In-store Signage

(continued from page 38)

STORE OF THE COMMUNITY... neighborhood's composition. And will stock many items that Cuban By all accounts, the degree to which while it may seem funny - a team of Hispanics would prefer, whereas a store bilingual signage is present depends on retail executives wandering around the in Brooklyn might have products gea- the ethnic make-up of the surrounding barrio with their cultural sensors fully red toward its large Jewish community. area. An outlet with just a small deployed - it is indeed part of how This approach also dictates that, where- Hispanic consumer base will likely have these decisions are made. ver needed, Hispanic signage will be bilingual signage in the Hispanic sec- Wal-Mart, whose Spanish-language present. tion only if at all, whereas an outlet signage has been in place for just over While Wal-Mart is currently revie- that is heavily frequented by Hispanics three years now, approaches bi-lingual wing its Hispanic agency options, spo- will likely have all of its signs in both signage with its all-encompassing kesperson Shannon Frederick notes of English and Spanish. “Store of the Community” approach. its longtime agency, “Lopez-Negrete Part of Home Depot's strategy, As it pertains to product buying, this has been an important part of our besides conducting a marketing analy- approach dictates that the store will efforts to understand this segment of sis for each new store location, is to buy the products that suit the needs of our customer base. Their work allows have executives actually walk the stre- the community in which it is located. us to invite Hispanic customers to visit ets of a new site and get a feel for the For example, a Wal-Mart in Miami Wal-Mart for the products and services that they need and want and know that when they do come into our stores, they'll find a welcoming environment.” Shannon adds that Lopez-Negrete assists the retailer with everything from developing appropriate creative messa- EVENT CALENDAR ging for Wal-Mart's advertising efforts, Industry Conferences of Interest to Portada Readers to doing staff workshops on Hispanic- specific needs. • FEBRUARY 2007 > 4th Annual Multicultural Marketing Most retailers in Hispanic areas > Retail Advertising & Marketing for the Financial Services and Insurance understand that connecting with Association Industries Latino clientele requires much more (Feb 7-9, Retail Advertising and Marketing (March 29-March 30, New York, NY, Association, Hilton Chicago, Chicago IL) Center for Business Intelligence) than translating their signs into > AAAA Media Conference & Spanish. Bilingual signage is a part of a Trade Show • APRIL larger program to make Hispanics feel (Feb 28-March 2, Association of American > DMA Directo Days East not just accommodated, but welcomed Advertising Agencies, Las Vegas) (April 9-10, Direct Marketing Association, in store locations. Other outreach New York) initiatives involve hiring bilingual sales • MARCH > LatinVision Business Networking > 2nd Multicultural Media Expo Event April staff who hail from the same communi- (March 6-7, MCM , Los Angeles) (NYC, April 12, 2007, Latin Vision) ties as the clientele, and are therefore > 5th Annual Innovations in Hispanic > NAHP Convention & Expo better able to understand their needs Marketing (April 11-15, National Association of and concerns. And it is not just retai- (March 11 - 13, MFM, Miami, FL, MFM Hispanic Publications, Scottsdale, AZ) lers that are embracing bilingual messa- Trade Meetings) > ARF Annual Convention & Expo ging. Continental Airlines recently > IAP Mid-Year Conference (April 15-18, Advertising Research implemented a “Latinization” program (March 16-19, Inter American Press Foundation, New York) whereby adding bilingual signage in- Association, Cartagena, Colombia) > Multicultural Marketing Summit > Multicultural Health Improvement (April 16 - 19, 2007, Radisson Deauville flight and at the concourse was part of Outreach & Development Strategies 8th Resort Miami Beach, Miami Beach, Florida) a larger initiative to make the flying annual event > NEXPO 2007 experience easier on Spanish speakers. (March 19th - 20th, Hyatt Regency New (April 24-27, Newspaper Association of In terms of whether to use dialects Brunswick - New Brunswick, NJ, Strategic America, Orange County, CA) to pinpoint specific ethnicities, Research Institute) > AHAA - Semi Annual Conference Miconexxion's Carlos Oliva assumes > ASNE Convention (April 25-27, Association of Hispanic Wal-mart's store of the community (March 27-30, American Society of Advertising Agencies, Chicago) Newspaper Editors, Washington DC) approach. “If you are in southern L.A. . > Association of Coupon Professionals If you are in New York, where the Annual Conference Hispanic ethnicities are more mixed, I (March,TBD, Association of Coupon would say go for some more inclusive Professionals) where the Hispanic population is 98% Mexican, I say go Mexican messaging.” ( 42 )