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HISPANIC FACT PACK 2013 10 YEARS OF BIG CHANGE U.S. marketing, media, demographics and agencies Welcome to Ad Age’s 10th annual Hispanic mer of Beech-Nut Goya baby food, a line of Fact Pack, and all the changes a decade has Latin flavors and combinations that reflects brought in marketing to Hispanic consumers. today’s demographics: One-fourth of U.S. births In our inaugural Hispanic Fact Pack, we are to Hispanics, who typically buy more baby reported that 2003 U.S. Hispanic media spend- food than do other groups. ing totaled $2.8 billion. That nearly tripled to Only five of this year’s 10 biggest Hispanic $7.9 billion in 2012 (Page 6). And Hispanic inter- agencies (Page 38) were in the top 10 a decade net display spending, now at $431 million, ago—Bravo Group, Lopez Negrete wasn’t even measured a decade ago. Communications, Alma, Zubi and Dieste. One Many of the players are still the same— former top 10 agency, WPP’s Mendoza Dillon & Procter & Gamble Co. is the most important Asociados, has disappeared through mergers; U.S. Hispanic advertiser, spending $246.2 mil- it’s now part of WPP’s Bravo. Newcomers lion in 2012 (Page 8)—up from $169.8 million in include fast-growing LatinWorks, now the third- 2003—and Univision remains the biggest biggest Hispanic shop (from No. 16 in the 2004 Spanish-language media group. But the game is edition and No. 5 last year), and Conill, ranked very different. No. 5 from No. 13 a decade ago. In the last decade, the fastest growth in the The Coral Gables, Fla., headquarters of U.S. Hispanic market has shifted from foreign- Accentmarketing is in the process of closing. born immigrants to U.S.-born Hispanics, and that Accentmarketing, which is 49% owned by is reflected in media and marketing. New Interpublic Group of Cos., continues to operate a Hispanic media properties, for instance, increas- small office in West Hollywood, Calif., reporting ingly target bilingual and English-speaking mil- through Interpublic's Axis Agency. lennials. Univision and Walt Disney Co.’s ABC are Specialist media-buying agencies were slow partnering to launch English-language cable to move into the U.S. Hispanic sector, and unlike news channel Fusion in the second half of 2013; in the general market, some of the biggest Univision also is an investor in El Rey Network, Hispanic shops are still full-service ad agencies an English-language cable channel in the works with media departments. For the first time, the from filmmaker Robert Rodriguez. In print, five biggest Hispanic media agencies are special- Hearst Corp.’s English-language Cosmopolitan ist shops, but half of the 16 media agencies with for Latinas will publish four issues this year. more than $3 million in media-services revenue Marketers are increasingly considering are full-service Hispanic agencies (Page 42). Hispanics’ tastes and seeing them become pref- In agency honors, LatinWorks was Ad Age’s erences in the general market, too. It’s no coin- Multicultural Agency of the Year and La cidence that the 25 largest Hispanic advertisers Comunidad won a spot on Ad Age’s Agency A-List now include General Mills and Mars Inc., nei- (Page 41). Both agencies were awarded at the ther of which was in that ranking a decade ago. Cannes Lions festival in June 2013, along with Hispanic-owned Goya is partnering with Hero Alma, Grupo Gallegos and Lapiz. AG’s Beech-Nut in a national rollout this sum- —LAUREL WENTZ Correction: An earlier version of this story incorrectly stated that Concept Café had completely shuttered. It is now operating from Boston. ADVERTISING AGE JULY 22, 2013 • 3 HISPANIC FACT PACK 2013 INSIDE NMARKETINGN NDEMOGRAPHICSN P. 6 I P. 3 4 I Hispanic ad spending by medium Population Hispanic media ad spending growth rates U.S. population totals Spending by medium Hispanic discretionary spending P. 8 I P. 3 6 I Largest advertisers Average time spent by online Hispanics Largest spenders in Hispanic media, including On media-related activities magazines, newspapers, TV, radio and internet Purchase plans Via device by category NMEDIAN NAGENCIESN P. 1 8 I Language preferences P. 3 8 I For Hispanic adults Largest Hispanic agencies in 2012 Top 10 U.S. TV markets By U.S. revenue from Hispanic activities By Hispanic TV households P. 4 1 I P. 2 0 I Award-winning Hispanic agencies TV and cable programs Eight Lions won at Cannes Festival Ranked by ratings and shown by language Largest media properties P. 4 2 I TV and cable networks, magazines, newspapers, Largest Hispanic media agencies in 2012 social networks, websites, mobile phone use, By estimated U.S. revenue from Hispanic activities online ad networks, radio Updated with corrections, July 31, 2013. Corrections appear on Pages 3, 28 and 40. HOW TO REACH US Additional copies: Order print copies at [email protected] or by calling 1-877-320-1721; Advertising Age’s Hispanic Fact Pack 2013 for readers outside the U.S., 1-313-446-0450. Digital edition avail- was published July 22, 2013. able free online at AdAge.com/trend-reports through Aug. 21; Email: [email protected]. available for $29 after that. Staff: Kevin Brown, Bradley Johnson, Catherine Wolf, Send mail to: Ad Age DataCenter Shawna Lent, Laurel Wentz and Amanda Murphy. 150 N. Michigan Ave., Ste. 1737 Chicago, IL 60601 Ad sales: (212) 210-0159. This document, and information contained therein, is the copyrighted property of Crain Communications Inc. and The Ad Age Group (© Copyright 2013) and is for your personal, non-commercial use only. You may not reproduce, display on a website, distribute, sell or republish this document, or the information con- tained therein, without prior written consent of The Ad Age Group. ADVERTISING AGE JULY 22, 2013 • 5 hfp2013 v48.qxp 7/11/2013 12:51 PM Page 6 HISPANIC FACT PACK 2013 Hispanic media spending growth rates Versus all U.S. measured-media ad spending growth, 2003 to 2012 Percent change U.S. Hispanic 11.1% 20% 13.3% measured media All U.S. measured media 6.1% -8.6% 3.2% -10 -10.2% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sources: All U.S. media data from Kantar Media. Hispanic data for 2009 through 2012 are Ad Age DataCenter estimates (see chart below). Hispanic media data from 2003 through 2008 from HispanTelligence, research arm of Hispanic Business, based on input from Kantar Media, media industry experts, advertising agencies and public records. Hispanic major media ad spending in 2012 Gross U.S. ad spending. Dollars in millions U.S. ADVERTISING SPENDING IN HISPANIC MEDIA PERCENT OF TOTAL MEDIUM 2012 2011 % CHG 2012 2011 Network TV $4,206 $3,491 20.5% 52.9% 48.8% Spot TV 1,323 1,237 6.9 16.7 17.3 Cable TV networks 246 227 8.3 3.1 3.2 Subtotal TV 1 5,775 4,955 16.5 72.7 69.3 Newspapers 683 702 -2.7 8.6 9.8 Magazines 294 365 -19.5 3.7 5.1 Other print 39 47 -17.0 0.5 0.7 Subtotal print 2 1,016 1,113 -8.7 12.8 15.6 Spot radio 3 725 666 8.9 9.1 9.3 Internet 4 431 420 2.5 5.4 5.9 Total $7,946 $7,154 11.1% 100.0 100.0 Totals by media are gross ad revenue. Sources: 1. TV data are measured media from Kantar Media (kantarmediana.com). Excludes ad spending for Univision Prepaid MasterCard (Tarjeta Prepagada Univision MasterCard), a prepaid card launched by MasterCard and Univision in 2009 and issued by Bancorp Bank. 2. Print data from Latino Print Network. Newspapers include classified. Other print includes annuals, catalogs, journals, newsletters and yellow pages. Print includes Puerto Rican publications as well as Mexican border publications with U.S. circulation. Kantar Media also measures Hispanic newspapers and magazines. 3. Spot radio data from Nielsen (nielsen.com). 4. Internet data are Ad Age DataCenter estimates of internet display advertising. Kantar Media monitors Spanish-language websites. 6• JULY 22, 2013 ADVERTISING AGE hfp2013 v48.qxp 7/11/2013 12:51 PM Page 8 HISPANIC FACT PACK 2013 50 largest spenders in Hispanic media Companies ranked by U.S. measured-media spending U.S. MEASURED-MEDIA SPENDING ($ IN THOUSANDS) RANK MARKETER 2012 2011 % CHG 1 Genomma Lab International $255,635 $10,204 NA 2 Procter & Gamble Co. 246,232 220,593 11.6 3 T-Mobile US 109,785 83,862 30.9 4 McDonald’s Corp. 107,736 114,167 -5.6 5 Verizon Communications 93,715 114,616 -18.2 6 AT&T 92,500 111,067 -16.7 7 L’Oréal 88,772 77,863 14.0 8 Toyota Motor Corp. 87,554 86,178 1.6 9 Dish Network Corp. 87,463 154,753 -43.5 10 General Mills 82,407 97,251 -15.3 11 Livariz Varitek Technologies 81,672 NA NA 12 Guthy-Renker Corp. 75,301 33,420 125.3 13 State Farm Mutual Auto Insurance Co. 74,126 73,893 0.3 14 General Motors Co. 73,419 79,385 -7.5 15 Sprint Nextel Corp. 71,107 73,287 -3.0 16 Broadcasting Media Partners (Univision) 1 67,018 88,169 -24.0 17 Kraft Foods Group 64,201 51,322 25.1 18 Comcast Corp. 63,661 56,420 12.8 19 Moulding Motion 60,736 0NA 20 SABMiller (MillerCoors) 59,578 52,538 13.4 21 Fiat (Chrysler Group) 57,512 58,210 -1.2 22 Walmart Stores 57,174 60,875 -6.1 23 Sears Holdings Corp.
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  • Radio Airplay and the Record Industry: an Economic Analysis

    Radio Airplay and the Record Industry: an Economic Analysis

    Radio Airplay and the Record Industry: An Economic Analysis By James N. Dertouzos, Ph.D. For the National Association of Broadcasters Released June 2008 Table of Contents About the Author and Acknowledgements ................................................................... 3 Executive Summary....................................................................................................... 4 Introduction and Study Overview ................................................................................ 7 Overview of the Music, Radio and Related Media Industries....................................... 15 Previous Evidence on the Sales Impact of Radio Exposure .......................................... 31 An Econometric Analysis of Radio Airplay and Recording Sales ................................ 38 Summary and Policy Implications................................................................................. 71 Appendix A: Options in Dealing with Measurement Error........................................... 76 Appendix B: Supplemental Regression Results ............................................................ 84 © 2008 National Association of Broadcasters 2 About the Author and Acknowledgements About the Author Dr. James N. Dertouzos has more than 25 years of economic research and consulting experience. Over the course of his career, Dr. Dertouzos has conducted more than 100 major research projects. His Ph.D. is in economics from Stanford University. Dr. Dertouzos has served as a consultant to a wide variety of private and public