Border Crossings: Long-Time Champion “Compadre” El Paso-Timesfaces New Rivals

FOR PUBLISHING AND Year 1 | Number 4 ADVERTISING PROFESSIONALS

PT RACKING THEoEXPANSIONrOF PRINTtadaMEDIA FOR SPANISH- SPEAKING AUDIENCES

PRINT MEDIA BUYERS WANT RESEARCH, MORE REACH AND UNIQUE CONTENT Print media, including newspapers, magazines and yellow pages, accounts for 35% of overall advertising expenditures in the US, excluding direct mail. That percentage is much lower for Hispanic print media, where print advertising accounts for between 15 and 20%, depending on the study. According to Lisa Contreras, VP director of multicultural advertising at Carat USA in New York, print takes third place with US Hispanics. “They don’t spend a lot of time with print,” she notes. Contreras spends approximately 2% of her clients Hispanic advertising budgets on print media ads. Her Pfizer account buys advertising in “health- type” publications such as Seleccionesand Prevention en español, and in the main Hispanic metropolitan dailies in New York, Los Angeles, Miami and, sometimes, in Chicago. The Los Angeles-based agency, La Agencia d’Orci spends 8-9% of its advertising budget on ad space in newspapers and national magazines. Ideas-Cruz Kravetz, also in Los Angeles, has not bought magazine advertising during the last few months because their accounts don’t seem to require it. Despite this low overall allocation to newspapers and magazines, some observers are convinced that print media advertising targeting Hispanics will play a more important role in the near future. “I don’t buy the argument that Hispanics are TV oriented just

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3 NEWS AND TRENDS • FCC deregulation: What does it mean for Hispanic newspapers? • American Media launches The competition for Spanish-speaking readers new magazines in Spanish • Mexico: Spain's Recoletos is looking for a local Border crossings: Long-time champion “compadre” El Paso-Timesfaces new rivals

12 Many large US newspaper publishers, page 1, Portadatm No.2 May/June 2003), MARKET PROFILE: such as Gannett and Media News Group, who are offering print media to adverti- MIAMI are struggling to adapt their content to sers specifically interested in Hispanics. • How to buy print media in the demands of an increasing Hispanic the Floridian salad bowl population, without alienating their tradi- (continued on page 10) tional “white” readers. These problems are 14 exacerbated in the border states of Texas, California, New Mexico and Arizona by ADVERTISING new, up-and-coming publishers, mostly NEW INITIATIVES • English? Spanish? Or Mexican (see “Mexican publishers expand Page 11 Gannett's Hispanic ventures Spanglish? into the Southwestern United States,”

1 Media buyers TM

www.iportada.com (continued from page 1) PUBLISHER Carlos Belda because they didn’t buy magazines in their countries of origin,” saysAndrew Buchholtz, managing director of merchant bank Veronis, Suhler & Stevenson in CORRESPONDENTS New York. Some signs clearly point toward growth. Traditional advertisers such Josef Kotzrincker as Procter & Gamble, Pepsi and the automobile makers are increasing their (USA - New York) Hispanic print media budgets, and new advertisers like Pfizer, Radio Shack and Tomás Bustigorri some financial service companies are beginning to buy more space in magazines and (USA - Lós Ángeles) Ana Lydia Valdés newspapers. (México) Other analysts point out that it will take a lot of work before print media beco- Susana Reinoso mes an attractive advertising platform for companies targeting Hispanics. At a recent (Southern Cone) Newspaper Association of America-GOLD Conference (Growth Opportunities by Mari Pascual Leveraging Diversity), Christine Wood, GOLD project director, said that despite (Spain) the fact that general interest newspapers do reach Hispanics, and that advertising drives readership and gets valuable attention in these markets, the perception among COPY-EDITOR media buyers is that newspapers are not appropriate vehicles for reaching Hispanic Carrie Barnes audiences. According to Wood, newspapers need to work on changing the perception of media buyers. ADVERTISING Lindsay Wilson Low reach... DESIGN The low reach of most Hispanic newspapers and magazines is a major disincenti- dafnediseño | [email protected] ve for advertisers. “The reach levels of TV and radio are significant. This can’t be said about even the biggest magazines targeting the Hispanic market,” said PRINTER Contreras, who manages the Carat USA accounts for the Hispanic market of Radio Aktion Shack, Honda Kia, Alberto Culver and Chivas Regal, among others. According to Contreras, “Hispanic magazines are not as sophisticated yet as general market maga- Copyright: Portadatm 2003 No part of Portadatm may be copied, repro- zines. Few of the magazines and newspapers have a circulation higher than 100,000. duced or broadcast in any form without prior The rest of the outlets have circulations divided into bits and pieces – 20,000 here, permission. Comments by sources cited in 10,000 there.” Portadatm have been directly obtained from them, unless its is explicitly noted otherwise. Portadatm is not affiliated with any other publication, media group, advertising agency or any other institution. “The tools used to judge a media plan are just Portadatm is published 6 times a year by not available for Hispanic print.” Contenido LLC. A one year subscription in print format costs US $99. A one year subscription sent by e-mail in PDF format costs US$29. Subscriptions for academic Contreras also points out that more ad money is being spent on African- institutions and collective company American print media, even though Hispanics recently passed African-Americans as subscriptions cost US $199. Single issues cost US $20. To subscribe, please send a the largest minority. “There are many high circulation African-American magazines check payable to Portada to Portadatm, Park and there is more research about them,” Contreras explains. Magazines targeted to West Station, P.O: Box 20526, NY, NY African-Americans such as Ebony(circulation 1.9 million)or Essence(circ. 1 million) 10025, USA. For payment by wire transfer send funds to Citibank N.A. 399 Park have at least double the circulation of the largest Hispanic magazines. African- Avenue, NY, NY 10022, USA American media consumption is easier to analyze. “They watch, hear and read what Account name: the general market is watching,” Contreras notes. Portada, Account # 22072064 Routing # 021 000089. ...expensive... For reprintsinformation and prices please The low reach of Hispanic newspapers makes advertising more expensive. To contact [email protected]. Please send address changes to Portada, Park reach an audience of a thousand readers (CPMs)an advertiser has to spend compa- West Station, P.O: Box 20526, NY, NY ratively more for ads in magazines and newspapers, than on network TV, and 10025, USA. much more than on radio. Publishers face a particularly big obstacle when trying to MISSION sell ad space to big brand, national advertisers who want a wide reach (distribution) Portadatm provides news, analysis and insights for their advertising message. However, local advertisers are keen on reaching to foster the development of the printmedia Hispanics in specific areas and might be very interested in advertising in local news- sector (newspapers and magazines) for Spanish speaking audiences (US, Latin papers, even though local radio stations, generally, offer cheaper CPMs. (see chart) America and Spain). Portadatm seeks to increase knowledge about Hispanic print ...and fragmented. media and improve the performance of publishing and marketing professionals, According to Sofia Escamilla, media director at La Agencia de Orci & Asociados media buyers, journalists, financial analysts, academics and market researchers. (continued on page 15)

2 News and Trends

USA/ Newspapers, soon “on the air”

ow has the loosening of newspaper- TV broadcast ownership rules Already quite consolidated Haffected Hispanic print media? Will relaxed FCC rules lead TV executives and Market Company Newspaper TV / Outdoor newspaper publishers to merge more assets in order to cross-promote them to Hispanics? As it turns out, large media NEW YORK Entravision El Diario/La Prensa 4,926 billboards groups like Tribuneand Beloalready own Tribune Hoy WPIX (11) WB affiliate both newspapers and broadcast stations in the same market (see chart). The recently LOS ANGELES Tribune La Opinion (50%) KTLA (5) WB affiliate overwritten FCC rule was instituted in 1970 DALLAS-FT. WORTH Belo Al Dia (to be launched) WFAA (8) ABC affiliate and granted waivers to companies like Tribune and Belo that had already establis- hed cross-ownership in a specific market. Other companies such as Knight Is Univision considering an expansion into Spanish-speaking audiences have had mixed Ridder,who owns Miami’s El Nuevo Hispanic newspaper publishing as well? success so far (See “The big magazine hit for Herald, and the twice weekly paper La One potential drawback is that Univision’s Latinas is yet to come,” page 10, Portadatm Estrellain Dallas-Fort Worth, as well as the broadcast TV and, now, radio business has a No. 3 May/June 2003). American Media’s larger English sister papers The Miami high growth rate, while newspaper publis- distribution method fits well with Hispanic Heraldand The Dallas-Forth Worth Star hing is traditionally a more stable but low- women’s purchasing habits. The magazine Telegram, might try to increase their clout growth business. Additionally, cross-media will use the retail network of supermarkets, by buying up TV stations in the Miami partnerships are not limited to properties mass merchandisers and bodegas that AMI or Dallas-Forth Worth markets. However, belonging to the same company. For exam- built for its Latino celebrity magazine, Mira Anthony Ridder, CEO of Knight Ridder, ple, Univision partners with The San (circ. 100,000). Dalia Sanchez, vice presi- which does not currently own TV stations, Francisco Chronicle(Hearst) for news pro- dent/group publisher for the AMI Latino says that he sees no benefits in combining jects, polls, events and cross-promotion. Magazine Group, will also be publisher of newspaper and TV operations. Other large According to an announcement published in Shape en Español.Fordand Royal US newspaper chains, like Gannettand late May, the Univision owned and operated Caribbeanhave made advertising commit- Tribune, do see economic advantages in station, KDTV-TV, will partner with The ments for the first issue. merging media platforms.. San Francisco Chronicle. Another cross-media partnership was ...AND MEN’S FITNESS EN ESPAÑOL. recently signed between Meredith Corp.'s American Media also announced that it TRIBUNE, A POTENTIAL BUYER... Las Vegas TV station, KVVU, and Una re-acquired the license toMen’s Fitness en Besides Hispanic dailies in Los Angeles Vez Más. Una Vez Másowns KHDF- españolfrom Ideas Publishing Group(IPG and New York, Tribune also publishes TV/Channel 19 in Las Vegas, an Azteca is owned by Conde Nast). The magazine popular weeklies such as El Sentinelin América Spanish-language affiliate. KVVU's will launch in the first quarter of 2004. IPG Orlando and !Éxito!in Chicago (see page sales staff will now market and manage the bought the license in 2000 from Weider 5). Asked by Portadatm about how Tribune commercial inventory for Una Vez Más. Publications. Under IPG, Men’s Fitness en will change after the FCC deregulation, Luis Azteca America is owned by by the Españolhad a total circulation of 207,000, Sito, Tribune’s vice president for Hispanic Mexican TV company Television Azteca, only 10% of which was distributed in the media, said “we are in the process of evalua- Mexico´s second largest media group after US. The rest was sold in Latin America ting what the opportunities are in each of Grupo Televisa. (35% in Mexico). the markets in which we have Spanish-lan- “Men´s Fitness en Españolwill follow the guage properties. Once we finish the evalua- same brand extension philosophy as Shape en tion process, we will be better positioned to AMERICAN MEDIA TO LAUNCH Español”, David Pecker, president and CEO ascertain how to best serve the individual SHAPE EN ESPAÑOL… of AMI noted. Dalia Sanchez will also be the Hispanic communities represented.” American Media did not wait long to publisher of Men's Fitness en Español. Gannett, who does not currently own launch Spanish versions of the Weidertitles any newspapers specifically targeted to it acquired last February. David J. Pecker, Hispanics, is increasing its efforts to reach president and CEO of American Media Inc. out to Latinos (see page 11). The largest US (AMI), recently announced the launch of a newspaper publisher could acquire TV sta- Spanish version of its women’s magazine, tions as a way to improve the cross-promo- Shape (monthly circ. 1.7 million, 76% subs- tion of its content to Hispanics. criptions). Shape en españolwill be launched Correction in October with a circulation of 300,000 ...IS THE SPANISH TV LEADER and a cover price of US $2.95. Editorial In the article “The big magazine hit for Latinas is yet INTERESTED? content will be taken from the English to come” (page 10, Portadatm No. 3 May/June 2003) Univision, leader in US Hispanic broad- version. The magazine will feature original Latina'scirculation was incorrectly listed as 100,000. cast TV, is currently working on acquiring content targeting young Latina women. Latinacurrently has a circulation of 300,000. Hispanic Broadcasting Corporation (radio). Women’s magazines specifically targeting

3 News and Trends

WHAT'S HOT IN HISPANIC MAGAZINE ADVERTISING? ADVERTISING CATEGORY NEW ADVERTISERS GAINED BY AT Automotive and packaged goods, both (ranked by growth in sales) LEAST ONE OF THE “BIG THREE” with growth rates higher than 100%, were 1. Automotive Volkswagen, Land Rover the two strongest advertising categories during the first three quarters of 2003, 2. Packaged goods according to a survey of the “Big Three” US 3. Cosmetics/Toiletry Revlon, Gillette, Clairol Hispanic magazines –People en español, Latina and Selecciones Reader’s Digest– 4. Pharmaceuticals New Pfizer brands tm done by Portada. Pharmaceuticals and 5. Ready-to-wear apparel Payless cosmetics/toiletries took third and fourth 6. Fashion Carolina Herrera place, respectively. Most of the new SOURCE advertising in Hispanic magazines belongs 7. Other American Express, Citizen Watches Portadatm survey to these categories.

LATINA TARGETS THE TEEN MARKET... and planners who have bypassed Reader’s trative, sales and distribution personnel with “According to the latest Census, one in Digest– which once had a circulation of 18 the Dallas Morning News. five teens is Hispanic, so we expect that million and is still the highest circulating this will be a very good place for Latinato magazine worldwide at 11.9 million – in be,” David Kahn, publisher of Latina, told favor of trendier magazines with younger YUPIMSN EMPLEOS TO SERVE Portadatm. audiences such as Maxim and HISPANIC INTERNET USERS Cosmopolitan. Selecciones Readers Digest, CareerBuilder.comannounced that it is ...PARTNERS WITH AVON... Reader’s Digest’sSpanish edition, which is operating the recently unveiledYupiMSN Latinaand Avon are currently evaluating published in 10 different countries, decided Empleos, a bilingual career center at their marketing partnership and looking not to pursue this strategy. “Although we YupiMSN. YupiMSN, a part of the MSN for new opportunities. “This year we hope to share the same parent company and the same global network, delivers Spanish-language team up with Avon Mark, a new brochure editorial mission – to empower our readers content and services to the United States and that Avon will debut, specifically targeting through a general interest format – we often Latin America through communities such as the youth market - women ages 16-24. act independently,” Elizabeth Bradley, CiudadFutura.com and MujerFutura.com. This will represent Avon’s major strategic publisher of Selecciones, told Portadatm, According to a March 2003 comScore initiative for the fall of 2003. We’re very adding that “Seleccioneshas pursued its own Networks report, more than 12 million excited about the possibility of this partners- trade messaging in order to highlight the Hispanics use the Internet in the U.S., repre- hip,” said Kahn. power of the Hispanic market and our uni- senting about one-third of the US Hispanic que connection to our readers. The cam- population. Amado Izaguirre, vice president ...AND HOPES TO INCREASE RATE paign focused on our strength of tradition in of business development for BASE IN FEBRUARY 2004. the market, as well as our dynamic story of CareerBuilder.com, explained that “Hispa- Latinarecently increased its rate base growth, both ad and consumer driven.” nics are relying more and more on the from 250,000 to 300,000. According to Internet for the latest news and employment Kahn, “it is set to be raised again next information.” The strength of many online February to 350,000.” Kahn said that in the AND THE NAME IS... AL DÍA competitors has led publishers to move more first half of 2003, advertising revenues were Belo Corporationannounced the aggressively onto the web. up 52% according to data submitted to the name and date of one of the most awaited CareerBuilder.com (see page 3, Portadatm Publisher’s Information Bureau. In June, Hispanic newspaper launches of the year (see No. 1, January/February 2003) reflects this Latinanamed Raul Martinez as its new page 3, Portadatm No. 2, March/April 2003). trend. It combines the distribution power creative director. Martinez will oversee all Belo’snew Hispanic newspaper, Al Día, of online and print with the 130 newspapers aspects of art, design and photography at will be launched Monday, September 29. published by partners GannettCo., Tribune the monthly magazine. Martinez has worked Gilbert Bailon, who has led the project for Companyand Knight Ridder, to help in different capacities for magazines such as the last few months, told Portadatm that the connect job seekers with potential emplo- Italian Vogue,Inside View Magazine, paper will be run off the presses of the yers. (For more information see Research/ American Vogue,Harper’s Bazaar,House Dallas Morning Newsin broadsheet format. Recruitment advertising on page 9.) & Garden andRolling Stone. The 6 day-a-week (Monday-Saturday) paper will be launched with a circulation of 40,000, and will have a retail price of US NOT PRINT FOCUSED SAME COMPANY, DIFFERENT $0.25 per issue. The paper’s content will be Medialinknamed Gloria Baca account STRATEGY heavily weighted towards local and interna- manager for the newly created Hispanic ser- In mid-May Reader’s Digest tional news. “Coverage of Latin America vices division. Baca will be based in New Associationannounced an ad campaign will be very important to us,” said Bailon. York. Medialink specializes in profiling com- for Reader’s Digest, the company’s flagship Al Díawill also focus on sports and panies and high executives of companies in magazine.The campaign hopes to draw entertainment figures popular among US the news. It distributes this content mainly media buyers’ attention to the publication’s Hispanics. He added that a large part of Al through broadcast TV. Print media vehicles audience loyalty. Needleman, Drossman & Día’scontent will be available on the are targeted through press releases by news- Partners created the ad campaign (budget: Internet. The newspaper will have its own wire services. US $500,000), which targets media buyers editorial team, but will share some adminis-

4 News and Trends

¡ÉXITO!, NOW ON A DAILY BASIS?... president for Hispanic Media, and we’ve motions. AOL is reaching out to a national Tribune Co.’s free Spanish-language charged him with developing targeted pro- audience with emphasis on families and weekly, ¡Éxito!, is bracing itself for a possible ducts in other markets with large Hispanic entertainment, Mary Ann Donaghy, executi- expansion. Several news sources have repor- populations”, Weitman adds. ve director of marketing strategy and new ted that Tribune is considering turning product development at AOL tells Portadatm. ¡Éxito!into a Monday through Friday news- ...IN THE FIFTH LARGEST HISPANIC The campaign was developed by Irvine paper. Other sources suggest that the name MARKET. (CA)-based advertising agency Casanova might be changed to Hoy, the name of Chicago has approximately 400,000 Pendrill, which is also in charge of the print Tribune’s New York Spanish daily. Hispanic households, making up 11.5% of media buying. The campaign underlines the Luis Sito, the man responsible for laun- the total number of households. Seventy-five interest national advertisers have in reaching ching the New York daily Hoy– a spin-off of percent of Hispanic households are Mexican Spanish-speaking audiences through magazi- Newsday– in 1998, was named vice-presi- and 10% are Puerto Rican. La Raza, a nes and newspapers. dent for Hispanic media at the Chicago Spanish/English weekly which covers based Tribune Co. last February. His main the Chicago metropolitan area and reports responsibility will be to study and develop a circulation of 150,000, is ¡Éxito!’s main A NEW PUBLICATION TARGETING new products. ¡Éxito!is published every competitor. LATINO CAR-BUYERS Thursday and has a circulation of Publishers are increasingly aware of the 87,551.“We are exploring a number of growing number of automobile companies options regarding the expansion of ¡Éxito!. AOL TARGETS HISPANIC CONSUMERS interested in advertising in Hispanic print We have achieved great success with Hoy IN PRINT media. In September, the first issue of Sobre and hope to replicate that kind of success in As part of a strategy to increase its Ruedas, a national Spanish-language magazi- Chicago and in our other markets,” Gary Hispanic subscriber base, AOL started a ne focusing on the automotive industry, will Weitman, media relations manager at print media campaign in May. AOL will be launched. Sobre Ruedasis one of a gro- Tribune Co, tells Portadatm. “As Dennis place a monthly page in People en español, wing number of publications targeting FitzSimons said at Tribune’s annual meeting some inserts in Nuestra Gente(Sears Latino car buyers. The quarterly, Latinos on of shareholders earlier this year, Louie took Magazine) and make selected buys in major Wheels, was launched in October 2001. on additional responsibility as Tribune vice- newspapers in connection with specific pro-

5 News and Trends

Mexico/Recoletos looks for local partners...

panish media group Recoletos Grupo the US economy makes it attractive to appealing to the general Mexican market. de Comunicación, 80% owned foreign media groups. The recent liberaliza- Sby British media conglomerate and tion of Mexican financial markets, together Financial Timespublisher, Pearson, has its with a growing middle class, has increased MAGAZINES CONTENT ON sights set on the Mexican market. Recoletos the demand for financial news. From an ESMÁS.COM is looking for local partners, ideally Mexican advertising sales perspective, Recoletos will Editorial Televisarecently decided to partners, who specialize in print media try to cross-sell its new Mexican and publish content from many of its magazines sectors similar to those covered by Recoletos, Brazilian print media vehicles to Spanish on Televisa’s website Esmás.com. This way, namely financial and sports newspapers. In advertisers (see “The challenge of selling Editorial Televisa promotes its magazines on Spain, Recoletos publishes the daily sports Latin American ad-space in Spain,” page 11, a popular Mexican Internet site and, at the newspaper Marca(circulation 450,000) and Portadatm No. 2 March/April 2003). same time, reduces the substantial costs Expansión, a daily financial newspaper with Televisa incurred when Esmás.com had its an approximate circulation of 40,000. own journalists producing content for the “The experience and know-how we have NEW DAILY... website. obtained through our activities in Chile and Does Mexico City’s convoluted newspaper Argentina, and the mandate of our majority landscape need a new daily? (See “State turns shareholder, Pearson, to grow in Spanish off the tap,” page 5, Portadatm No. 2 MAXIM EN ESPAÑOL, A TALE OF and Portuguese speaking markets, leads our March/April 2003). The publishers of El TWO CITIES interest in exporting our publishing model Independientecertainly think so. El Editorial Televisa’sMaxim en Españolis to Brazil and Mexico,” said Tom Burns Independiente, launched at the beginning of now being published out of two cities. Until Marañon, media relations director at June, has a circulation of 40,000 and is dis- recently, the magazine had been based in Recoletos. Burns is a former Madrid corres- tributed nationally. Entrepreneur Carlos Miami. Now the vice director of the magazi- pondent for the Financial Times. Ahumada Kurtz is the main backer of the ne, and half of the newsroom, will be based new venture. Veteran journalist Raimundo in Televisa’s headquarters in Mexico City. ...TO COMPLEMENT ITS PRESENCE IN Riva Palacio is the chief editor and Javier The magazine’s director will remain in LATIN AMERICA... Solorzano acts as the paper’s business direc- Miami, along with one reporter, and make Recoletos has a strong presence in Latin tor. The new daily is supported by approxi- trips to Mexico every two weeks for the dea- America’s Southern Cone countries. In Chile mately 150 journalists. dline of the new issue. It is the first time it owns 37.4% of Ediciones Financieras, Editorial Televisa has published a magazine publisher of DiarioFinanciero, Chile’s top ...TARGETING DECISION MAKERS out of two cities. The director of Maxim en selling business newspaper, with an average WITH QUALITY CONTENT. Español, a Colombian national, has a close daily circulation of 34,547. Ediciones El Independienteaims to be a quality paper relationship with Eduardo Michelsen, Financierasleads the financial newspaper read by decision makers in business, politics Editorial Televisa’s CEO, who is also advertising market with a 56% market share, and culture. It considers itself the product of Colombian. compared to the 44% share commanded by a “heterogeneous society which is constantly rival Estrategia. Recoletos’s local partner in in change.” According to Editor Raimundo Ediciones Financieras is GrupoClaro. The Riva Palacio, investigative journalism will be NEW TITLE IN THE LUXURY MAGAZINE Spanish media group also has interests in its main focus. The newspaper seeks to offer CATEGORY Argentina. In 2000, Recoletos purchased the more than just raw news by contextualizing Editorial Televisalaunched Ocean Argentinian financial daily El Cronista information and putting it into perspective. Drive Mexicoin April. Miami based Ocean Comercial, along with specialized marketing El Independientehas an auditing board Drive Inc, publisher of Ocean Driveand and technology magazines. which oversees the quality of the newspaper, Ocean Drive en español(see “Wealthy and enforces the newspaper’s Code of Ethics. Floridians, a tantalizingaudience for Latin- ...WITH MORE FINANCIAL American and US publishers,” page 13, NEWSPAPERS IN PINK. Portadatm No. 3 May/June 2003), gets a 7- Burns notes that both Diario Financieroand MORE TRAVEL MAGAZINES? 10% revenue share in exchange for the El Cronista Comercial have been redesigned The Madrid based subsidiary of Gruner Mexican rights to the brand and some of its to closely resemble Recoletos’s Expansion, + Jahr, owned by German media group content. Luxury goods advertisers now have the most widely read financial daily in Spain. Bertelsmann, is debating about whether or a wide selection of print media platforms “To create a similar image, we had to change not to launch a Mexican edition of Geo. A that they can use to reach high purchasing some of the sections and introduce the pink Spanish version of the German magazine power individuals in Mexico. In addition to paper color,” said Burns. “We would like to Geois already published in Spain (circula- Ocean Drive Mexico, EditorialTelevisa also continue doing this by starting projects with tion 52,000), and distributed in some Latin publishes the high-society gossip magazine new partners in Mexico and Brazil.” American countries. Geo-Spaincovers Caras, launched in December 2002, which Mexico already has large circulation financial mostly travel and science through feature targets the same demographic. Editorial newspapers such as El Financieroand El articles and ample photographic material. A Expansionpublishes Quién, a magazine fea- Economista. Despite its relatively low news- major focus of the magazine is on travel turing actors and other celebrities from the paper readership, Mexico’s convergence with within Spain, which would obviously be less Mexican entertainment and cultural world.

6 News and Trends

Panregional/ Dominican government seizes control of newspapers...

n May 15th, Dominican government banks, saying that its collapse would not and has investments in Latin American officials, with the help of police have been possible if the government’s newspaper publishing (Bolivia) and book Oforces, took over the country’s main Banking Supervision Agency had done its publishing (Editorial Santillana, most of the media outlets, including four TV channels, job. In two of the articles, Zapete claimed region). several radio stations and four newspapers – that President Mejía was building two Listín Diario,Última Hora, El Expreso mansions in the country using public funds. and El Financiero. All of the media outlets President Mejía has said that he will file a NEW NAME FOR GRUPO CORREO- were owned by entrepreneur Ramón Báez lawsuit against Zapete. PRENSA ESPAÑOLA Figueroa whose bank, Banco Spanish media group Grupo Correo- Intercontinental, is under investigation for Prensa Españolahas changed its name financial fraud. The District Attorney METRO OBTAINS NEEDED CASH to Vocento, as a result of a merger which (Fiscalía del Distrito Nacional) selected new INJECTION started in 2001 with the acquisition of administrators for each of the media compa- Metro International, the Swedish Prensa Española(publisher of the daily nies in order to clear relationships with other publisher of 25 free dailies in 16 different ABC) by Grupo Correo(owner of a regio- companies also owned by entrepreneur countries (Chile, U.S. and Spain among nal newspaper chain and other holdings in Ramón Báez Figueroa. The journalists and them), raised US $32 million in a share sale TV, radio and print media distribution). publishers of Listín Diario(Miguel Franjul), on June 10th. In order to avoid running The company claims that the new brand El Expreso(Osvaldo Santana), Última Hora out of cash, the company converted another and the new corporate image emphasize the (Virgilio Alcántara) and El Financiero(Frank US $146 million of debt into equity. Metro group’s international orientation and its Marino Hernández) have spoken out against publishes free dailies in Boston, leadership position in the Spanish media the occupation, considering it a violation of Philadelphia, Santiago de Chile, Madrid and market. Vocento owns more than 100 com- free speech. Analysts objected to the take Barcelona. Metro International, after expan- panies and 80 brands, and employs more over because the action took place before the ding throughout Europe and into markets than 3,000 professionals. In Argentina, judge had issued an order to seize Báez as distant as the U.S., Canada and Chile has Vocento has a stake in regional newspapers Figueroa’s companies. slowed new launches in order to focus on La Voz del Interior(Córdoba) and Los Listin Diario, the Dominican becoming profitable and solving its financial Andes(Mendoza). In 2002, Vocento had Republic’s largest newspaper, with a circula- woes. earnings of 64.8 million euros (US $76.5 tion of 96,000, publishes The Wall Street million), an increase of 93.7% compared to Journal Special Editionand a New York the prior year. Its revenues were 625 million Times Weekly Supplement in Spanish (see PAN-AMERICAN RADIO PROGRAM euros (US $738 million), 48% were adverti- “The Gray Lady expands into Latin MAKES HISTORY sing revenues, an increase of 50.6% from America,” page 10, Portadatm No. 2 On May 11th the new radio program 2001. Despite weak national advertising in March/April 2003). “Latitud 40” aired simultaneously in newspapers, the company was able to Colombia, Costa Rica, Chile, Panama, substantially increase its revenues through ...AND INTERROGATES CRITICAL Mexico and Miami (USA), offering two and acquisitions and higher revenues from regio- JOURNALIST. a half hours of the top music from each of nal newspaper, TV and radio advertising. On June 11, state security officials in the the six countries. Additional programming Dominican Republic interrogated journalist included music and entertainment news and Marino Zapete Corniel and accused him of exclusives, and interviews with music stars. ROLLING IN SPAIN insulting President Hipólito Mejía in a series It was the first time in the history of Latin Grupo Prisa, the Spanish franchisee of of recent articles. This event added further American radio that a program was offered Rolling Stonemagazine, owned by US friction to an already tense relationship simultaneously in these countries. publisher Wenner, has made some changes between the Government and the media. “Latitud 40” is broadcast weekly on the in the leadership of Rolling Stone’s Spanish According to Zapete, four officials from the radio stations and programs of “Los 40 edition. National Department of Investigations Principales,” a Latin American youth radio Juan Antonio Carbajo, who was director (DNI) and an assistant prosecutor arrived at station thatGrupo Latino de Radio(GLR) of Dominical, will now be director of Rolling his home in the capital, Santo Domingo, is developing. The program is modeled after Stone. Andrés Rodriguez will be in charge and asked him to come with them to DNI “Los 40 Principales,” a popular music of Dominical, a weekend supplement in 27 headquarters. Zapete was released after program for youth broadcast by Grupo Spanish dailies, started by Grupo Prisa and more than five hours of questioning. Zapete Prisa’s Cadena SER. GLR has 400 member Grupo Zetain September 2002. works for the Miami-based online newspaper stations in the U.S. and Latin America and Los Nuevos Tiempos Digitaland the local an audience of 15 million. Caracol Radio weekly Primicias. During the last two (Colombia), ConsorcioRadial Chileno EXPANSIÓNNURTURES AULA months, he wrote a series of articles that (Chile), W Radio(México), GLR Costa ABIERTA PROJECT appeared in both publications criticizing Rica, Caracol-Miamiand Caracol-Panamá Business daily Expansion, owned by President Mejía for his handling of the are all part of this network. GLR owner Grupo Recoletos, recently published the 21st financial collapse of Banco Intercontinental Grupo Prisa publishes newspapers in Spain (Baninter), one of the country’s largest (El Pais, Cinco Dias, As, Rolling Stones)

7 TM

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News and Trends

issue of Aula Abierta(“open classroom” in The monthly Fortuna Sports & Lifetargets general interest magazines such as Tiempo Spanish).The 8-page weekly paper is distri- men and women between the ages of 18 and (circ. 69,000)andInterviu (140,000),is not buted to business, economics, law and 30. The 130-page magazine was launched very active in the US-Hispanic or Latin communication students in Madrid. Pilar in May with an initial circulation of 200,000 American markets. Gema Arcas, director of Cambra, project coordinator, explains that copies. The single copy price will be 2 euros International Advertising at Grupo Zeta, their goal is to attract new, younger readers (approx. US $2.40). Decoración Woman told Portadatm that Grupo Zeta has been dis- who wouldn’t normally read a financial (circ. 120,000)will be published on a quar- tributing some magazines through local newspaper. “We try to open the door to terly basis together with the women’s maga- publishing houses in Argentina and Mexico, the use of the newspaper as a work tool,” zine Woman(circ. 126,000). The 100-page but not in the US. However, Ediciones B, says Cambra. Recoletos followed a similar magazine will feature different styles of Grupo Zeta’s book publishing unit, has a strategy with Diario Médico, a trade publi- home decor, photos of homes, and practical strong presence in the Latin American and cation for General Practitioners. Diario decorating ideas. US-Hispanic markets. Médico’sfirst issues were distributed free to Additionally, the men’s monthly magazi- medical students. ne, Man, (press run 95,000, circ. 57,000) will increase its page count with coverage of STRONG NEWSPAPER READERSHIP... science and technology, as well as business, Consumption of Spanish newspapers HEINRICH BAUER SELLS SPANISH health/fitness and travel. Ediciones increased by 1.7 percentage points to 38.8% MAGAZINES Reunidas, the Grupo Zeta subsidiary res- during the first quarter of 2003, while maga- Spanish magazine publisher America ponsible for publishing the new magazines, zine and weekend supplement consumption Iberica bought two books from German plans to spend 4.2 million euros (approx. US remained stable at 50.7% and 29.4%, res- publisher Heinrich Bauer Ediciones – the $5 million) in an advertising campaign to pectively. The increase in newspaper reader- quarterlies El Mundo de los Astros promote the magazines. ship, probably connected to the strong (circulation 22,407) andDietas(circulation demand for both print and radio news 29,304). America Iberica currently ...AND DIGITAL VIDEO MAGAZINE... during the conflict in Iraq, is also reflected publishes similar magazines, like Tu Suerte, To take advantage of the digital video in rising moving average trends. and pseudoscientific pubsAño Ceroand boom in Spain, Grupo Zeta launched Enigmas. The transaction also includes Digital Video Magazine, a new publication ...BUT LOW EXPECTATIONS FOR Portuguese editions of El Mundo de los Astros for amateurs and professionals in the digital PRINT MEDIA ADVERTISING. andDietas. After the sale, Bravo por Ti video field.The100-page book evaluates According to the Zoom Vigía panel of will be the only magazine Heinrich Bauer new equipment and provides lots of infor- advertising executives, 2003 will not be a publishes in the Spanish market. mation about how to take maximum great year for print media advertising in advantage of digital video equipment. The Spain. The survey, conducted by Zenith magazine is led by Luis Jorge Garcia. Media, shows a negative growth in newspa- NEW MAGS FOR TWENTY AND per advertising of -0.4% in 2003, -1% for THIRTY-SOMETHINGS ...BUT ISN’T READY TO HIT THE magazines, and -2.5% for weekend supple- Madrid based Grupo Zetalaunched two US MARKET. ments. Free newspapers are the big winners, new publications aimed at young Spaniards. Grupo Zeta, publisher of widely-read with an expected increase of 19.9%.

8 Research

Newspaper classifieds / Recruitment advertising in print and ...online

he recruitment advertising market is a very interesting ...AND THE WAY HISPANIC PAPERS FACE IT. Tmarket for Hispanic newspaper publishers for a com- How do Hispanic newspapers fare on this side? Do they pelling reason: they target a growing demographic offer the capability to place ads both on the Internet and on group whose average age is much younger than the general print? A survey by Portadatm of the largest Hispanic newspa- population and, therefore, is more active in the labour market. pers shows that Hispanic papers tend to trail the national ave- One of the reasons for Belo Corporation to launch Al Día, rage on the web. a new Hispanic daily in Dallas/Fort Worth this autumn (see El Diario/La Prensain New York does not offer online page 4) is that there is no newspaper in this city offering recruitment ads. This is also the case of El Sentinel, the Spanish employment recruitment ads targeted to Hispanics on a daily language weekly published by The Orlando Sentinel. Neither basis. Gilbert Bailon, president of Al Día, notes that classifieds does New York’s Hoyhave the capability to place recruitment will be posted both in print and on the Internet. Bruce ads on the Internet. However, Los Angeles’ La Opinionand Murray founder and CEO of Corzen Inc. tells Portadatm that El Nuevo Heraldin Miami do offer online recruitment ads. the main task for Hispanic publishers should be to “build an There is quite a diffence between the rates asked for by these audience for the newspaper and offer advertising to employers newspapers. These differences in re-cruitment ad prices are who are seeking to reach those readers”. due to the different market structures this newspapers operate in (size of the market, competition etc...) THE THREAT OF THE INTERNET ... Newspaper publishers face huge competition from pure Internet companies such as Monster.com or HotJobs (Yahoo!) Print vs. online... the in the US $6 billion recruitment ad category (approximately 15% of overall newspaper advertising revenues). The strength recruitment ad war... of these online competitors has led many publishers to move more aggressively onto the web. According to research by Newspaper/website Price Corzen nearly half of the largest 250 newspapers in the US now offer a web-only, help-wanted advertising option for employers placing recruitment ads. In May 2003, 49% of the Career Builder.com(30 days) US $200 nation’s largest 245 newspapers offered a rate card for Hotjobs.com(30 days) US $275 Internet-only recruitment advertising, up from 32% in the Monster.com(60 days) US $305 fourth quarter of 2002. By going online, newspapers try to avoid loosing market Average newspaper US $196 Internet only (30 days) share versus their online competitors. However, as Murray Average newspaper print ad ' points out, for many newspapers the Internet recruitment ad US $138 price is lower than the price of the same ad in print. (four consecutive Sundays) “Newspaper publishers might see the same volume of ads, but it is not clear that they will generate the same total revenue,” Murray notes. SOURCE Corzen Inc.

...and where Hispanic dailies stand.

Newspaper Price Internet

La Opinión (Los Angeles) US $244 (4 consecutive Sundays) Yes Hoy (New York) US $140 (4 consecutive Sundays) No el diario/La Prensa(New York) US $331.2 (4 consecutive Sundays and Mondays) No

El Nuevo Herald (Miami) US $131.92 Yes (Careerbuilder.com 30 days for US $399) El Sentinel(Orlando) US $140 (4 consecutive Sundays) No

SOURCE Portadatm

9 Competition

(continued from page 1)

Mexican publisher Osvaldo Rodriguez Borunda publishes tion agreement with El Nortein Ciudad Juarez, a competitor El Diarioin Ciudad Juarez (Mexico). El Diario(circulation of El Diario. 87,000) was launched in 1976. It is Chihuahua’s largest newspaper and Mexico’s fourth largest daily. Sixty thousand copies Redesign are distributed daily in Ciudad Juarez, 20,000 additional Recent changes in readership have led to a redesigned El copies in Chihuahua City and 7,000 across the border in El Paso-Times, which premiered January 27, 2003. Timesexecuti- Paso. Now, Rodriguez Borunda intends to publish a newspa- ves wanted to appeal to younger El Pasoans, mostly Hispanics, per similar to El Diario, in El Paso (Texas), to compete with between 18 and 34 years old. “About four of every five people Gannett owned El Paso-Times. in our market are Hispanic predominately first, second and Of its 100 daily publications, Gannet only faces competi- third generation Mexican-Americans. Our market tends to be tion in two other cities – Greenbay, Wisconsin and Honolulu, several years younger than most and educational attainment Hawaii. With the publication of El Diarioin El Paso, and income levels are lower,” wrote Carlita Montoya Costello, Borunda hopes to make it three. assistant managing editor of design at El Paso-Times, in a Rodriguez Borunda recently told the New York Timesthat, paper published by Gannett in April. Median family house- in his view, El Paso-Timesonly caters to El Paso’s white elite, hold income in El Paso is $31,051, and the median age of the and neglects El Paso’s large majority of Hispanics. Seventy- population is 30. While trying to attend to the needs of a eight percent of El Paso’s 670,000 inhabitants are Hispanic younger population, the newspaper had the “challenge of nur- (mostly Mexican). turing its core readership, who was looking to get fundamental Rodriguez Borunda is also considering a newspaper ventu- health, business and lifestyle information from our pages,” re in Tijuana, Mexico, near San Diego, Calif., hoping to sell Montoya Costello added. to an underserved Spanish-speaking audience similar to that of Juarez/El Paso. He is expected to make a decision as early as Focus groups comparing newspapers August. The redesign recommendations were based on focus groups led by executive editor Bob Moore, with help from El Paso-Times, run by and for English-speaking marketing experts at the Arizona Republic. “Focus group Hispanics participants were asked to compare the El Paso-Timesto two Mack Quintana, publisher ofEl Paso-Timesexplained newspapers from neighboring Juarez, Mexico,” wrote to the New York Timesthat El Paso-Timesdoes not want to Montoya Costello. “They asked for more news columns, publish in Spanish, aside from a weekly supplement called more color on covers and inside pages, larger headlines, larger Vecinosstarted in 1991, because, in his view, the education color photographs and more entry points. We were also asked level of recent arrivals is “much lower” than the level of exis- for more business/international news and more local sports ting residents. The newspaper has websites in both English coverage. Finally, we were asked to remember the time cons- and Spanish, but the English site offers more in-depth con- traints and educational levels of our readers.” El Paso-Times tent. According to Bruno Larosa, Marketing Director at adapted its content and design (see chart) to most of these El-Paso Times, there are already two newspapers in Spanish demands. Montoya Costello claims that both copy and home in Ciudad Juarez (El Diarioand another one called El Norte) delivery sales have increased since the new and improved with relatively low circulations. “The market does not seem newspaper was launched. ripe for a third one.” El Paso-Timeswas founded in 1881 and joined Gannett in 1972. It has a daily circulation of 75,127, and a circulation of How to attract Hispanics to newspapers 93,425 on Sundays. Itserves residents of far West Texas and southern New Mexico. In 2003, Hispanics made up 61.4% of •Rank stories clearly by importance (headline size) the El Paso-Timesnewsroom, the largest minority share in any •Use a functional design, use color and white space to Gannett newspaper and among the top ten US newsrooms facilitate navigation through the paper ranked by percentage of minorities on their staffs. •Simpler newspaper design – More color, large headlines, large color photographs Are national advertisers interested? •Provide many entry points According to Bruno Larosa, marketing director at El Paso- •Lively graphs Times,national advertisers are very interested in reaching •More coverage of international news – politics and sports Hispanics, but mostly in the five biggest markets (Los Angeles, (Latin America) New York, Puerto Rico, Miami and Chicago). “Even though •Increase local coverage 80% of El Paso’s 700,000 inhabitants are Hispanics, the abso- •Write immigrant how-to and survival stories lute number of Hispanics is not high enough to attract many •Entice impulse buyers through daily rack sales national advertisers,” Larosa told Portadatm. However, El Paso-Timeshas several initiatives to increase its popularity among Hispanics. It distributes some of its con- SOURCES tent and advertising daily across the border through a distribu- El Paso-Times, Gannett and Portadatm

10 New Initiatives Gannett steps up efforts to reach Latino readers

annett, the company that inven- sumers. “At US $10 a piece, we sold is the most northwesterly county in the Gted the “MacPaper” (USA- nearly 1,000 copies,” writes Mike continental U.S. Today), is reaching out to Chihak, publisher and editor of the Spanish-speaking audiences. Whether Tucson Citizen. “Conexióngave busines- it’s through supplements to educate ses the information they needed to The Times potential advertisers about the Hispanic build strategies for capturing more of (Gainesville, Hall County, Georgia) consumer, booklets for readers, or spe- the Hispanic consumer market,” con- In April 2002, The Times(circ. cial sections, many of Gannett’s papers cluded Chihak. 20,343 daily; 24,429 Sundays) launched are focusing on building relationships Bienvenidos Amigos, a resource for Hall with Hispanic readers, and the busines- County’s Latino families, which features ses and advertisers who serve them. Asbury Park Press newcomers’ essentials, back-to-school- Gannett recently published documents (Asbury, New Jersey) information, holiday traditions, etc. on some of the outreach projects “The Nuevos Americanswas a 96- Mickey Johnson, executive editor of The currently underway. page special section that delved into the Times, said that in 2002 “Bienvenidos life and culture of Latino communities Amigoswas a quarter fold booklet publi- on the Jersey Shore,” explained Paul shed in Spanish for our Latino neigh- Tucson Citizen D’Ambrosio, investigations editor at bors”. In 2003, the publication became (Tucson, Arizona) Asbury Park Press(circ. 167,149 daily; a bi-monthly. “Bienvenidos Amigoswas In Tucson, located just 60 miles 227,984 Sundays). Nuevos Americans created because reading The Timeswas north of the Mexican border, Hispanics was published on June 30th 2002. not an option for many of our Latino make up 40% of the population. Last newcomers – fewer than 20% read and year, Hispanics spent more than US $2 speak English. To reach them, we reali- billion locally. In order to connect The Bellingham Herald zed that a Spanish-language publication Tucson’s businesses with the demands (Whatcom County, Washington) would be necessary,” Johnson explained. of the Hispanic population, the Tucson In March 2002,The Bellingham Citizen,published six-afternoons a week Herald(circ. 24,754 daily; 31,348 with a circulation of 38,123, developed Sundays) published Whatcom County’s Home News Tribune Conexión Tucson: Connecting Businesses Latino Connection, a 12-page special (East Brunswick, New Jersey) with Hispanic Consumers, a 28-page full section featuring profiles of people Last month, Home News Tribune color publication. The publication used representing a wide spectrum of (circ. 70,162 daily, 77,545 Sundays) newspaper marketing information and Whatcom County’s Latino community, launched Nuestra Comunidad, a Spanish 2000 Census Bureau Information to its fastest growing ethnic group. language newspaper targeting Hispanics educate businesses about Hispanic con- Whatcom County borders Canada and in central New Jersey.

Meximerica Media will launch dailies in Texas

exas is proving to be a tantalizing Journal Americas, an international busi- top 10 Hispanic markets ranked by Tmarket for newspaper companies ness-news section published by Dow the number of Hispanics. The first is and entrepreneurs interested Jones & Company for partner newspa- the Houston-Galveston-Brazoria market in publishing for Spanish-speaking pers throughout Latin America. He with 1,349,000 Latino residents or audiences. will be succeeded by Brazilian journalist, 28.9% of the total population. By 2020, Meximerica Media is a newly formed Cristina Aby-Azar. Hispanics will dominate the population company with plans to publish Spanish- Meximerica Media is launching of Houston. The other very large language daily newspapers in Texas Spanish-language dailies in Texas pri- Hispanic-Texan market is Dallas-Forth and elsewhere. Edward Schumacher will marily to meet the demands of adverti- Worth (1,120,350 Latino residents or become chief executive and editorial sers who want a print media platform 21,5% of total population). Retailers director of Meximerica Media. that targets Texas' burgeoning Hispanic Kohl's and J.C. Penney, who consider Schumacher is leaving Dow Jones, population. the Texan markets to be multiethnic, where for the last nine years he has been According to research by MRI and the have been very active in advertising in the managing editor of The Wall Street US Census Bureau, Texas has 2 of the Spanish-speaking media.

11 Market profile

iami, more than any other US Hispanic media market, Miami’s print media advertising market is growing. represents a cross-section of Latin America. South Knight Ridder, the publisher of The Miami Heraldand El M Florida is home to Hispanics of all income levels, and Nuevo Herald, recently noted that, in May, advertising reve- from every country in Latin America, from Cuba to nue for its Miami papers increased by 4.3% year on year, Argentina, Colombia, Venezuela, Puerto Rico, Dominican while overall advertising revenues of Knight Ridder’s newspa- Republic, Mexico, Nicaragua. “El Nuevo Herald must meet pers fell by 0.4%. Strong national advertising categories in the the needs of the most diverse Hispanic population in the Miami Hispanic market were telecom (AT&T Wireless and U.S.,” says Kristina Corrales, business development manager, Verizon) and automotive (Lexus, BMW, Toyota). Airlines and at El Nuevo Herald. cruise lines also advertised in Diario de las Americas (published by The Americas Publishing Company) and El Nuevo Herald, The majority of Miami’s Hispanics are Cuban. However, Miami’s two Hispanic dailies. Other companies with sizable according to Strategy Research Corp., in 1998 Cubans only print media budgets that are targeting Spanish-speaking made up 59% of the Hispanic population. In 2000, that per- audiences in Miami are Brandsmart, Macy’s, Bloomingdale’s, centage had fallen to 51%. Advertisers are also keeping track JC Penney and K-Mart. South Florida’s tradition as a vacation of the growth dynamic of the Hispanic population – the total spot for wealthy Latin American and US citizens makes real Hispanic population of the market grows about 50 percent estate development ads and condo sales (classified ads) parti- faster than the general population. cularly lucrative.

The market volume of print media advertising in publica- Publishers sometimes compete with company circulars tions exclusivelytargeted to Hispanics was approximately US targeting Latinos such as K-mart’s publication La Vida, which $42 million in 2002, according to an estimate byEl Nuevo was launched last September and is heavily distributed in Herald. However, the dollar amount of allprint media adver- South Florida. tising targeting Hispanic consumers is much higher. Most of Miami’s citizens are Hispanic – Miami-Dade’s Hispanics THE POWER OF SUPPLEMENTS make up 57% percent of the county’s 2.1 million residents. The heterogeneous Latino population is targeted by a Accordingly, a large part of South Florida newspaper adverti- myriad of publications, mostly weeklies and monthlies, which sing buys (local sales for 2000 were US $504 million accor- try to appeal to the diverse national and ethnic characteristics ding to Strategy Research Corp.) are spent on ads targeting of each group. Special supplements published by Diario de las Hispanic consumers. Americasand ElNuevo Heraldcompete for a substantial share

Ways to reach Miami's Spanish Speakers

Newspaper Year Publisher Circulation CPM'S(Weekday, Full-page founded B&W non contract advertiser)

El Nuevo Herald 1987 Knight Ridder 90,264 (daily) Local US $76.16 99,335 (Sunday) National US $111.7

Diario Las Americas 1953 The Americas 70,000 (daily) Local US $37.8 Publishing Company 73,000 (Sunday) National US $55.7

12 Miami:Publishing for the Latin Tower of Babel

of the money advertisers spend to target specific nationalities. called The Miami Herald en Españolthat appeared in The “We publish country or topic specific Special Sections such as Miami Herald three times a week. On March 30, 1976, The Cuba Independence, Colombia, Carnaval Miami (Calle 8), Miami Heraldlaunched a Spanish-language supplement called Dominican Republic, Back to School, Hispanic Heritage, bridal El Miami Herald. It was mostly a translation of the English issues, El Immigrante en español(The Immigrant in Spanish),” paper. Finally, on Nov. 21, 1987 the Herald succeeded in explains El Nuevo Herald’sCorrales. Every Friday, Diario Las launching a full-fledged independent Hispanic newspaper, El AmericaspublishesLa Revista del Diario(circ. 109,000). Nuevo Herald.

Interestingly, Diario Las Americashas more women readers MIAMI ADVERTISING MARKET FACTS -56% of its readers are women- than El Nuevo Herald(51%). Luxury advertisers, targeting the Latin American and US LOCAL NEWSPAPER ADVERTISING SALES US $504 million Hispanic elite, also have quite a few print media platforms SPOT TV US $690 million to choose from (see “Wealthy Floridians, a tantalizing audience for Latin American and US Publishers,” page 12, Portadatm HISPANIC PRINT MEDIA US $42 million (2002) No. 3 May/June 2003). HISPANIC HOUSEHOLDS 438,000 (56% of total) HISPANIC HH OF CUBAN ORIGIN 51% A CHALLENGING TASK Publishing a newspaper specifically targeting Miami’s HISPANIC'S MEDIAN INCOME US $34,333 Hispanics can be a financial challenge. The Miami Herald Publishing Company, owned by Knight Ridder, has made no less than three forays into Spanish-language journalism. The SOURCE Nielsen-Monitor Plus 2001, 2000 U.S. Census; El Nuevo Herald first, in 1963, only lasted 6 months. It was a one-page insert NOTE 2000 figures unless otherwise noted

13 Advertising: Language choice What's the right language for print ads?

t’s not just about buying ad space. The language an don’t always adapt their mainstream market ads for the Iad is written in makes a big difference in how readers Hispanic market. There are many ads published in English receive product information, or whether the informa- which, if given a second thought, might have been published tion is received at all. How do advertisers choose the most in Spanish or Spanglish. effective language for print media ads targeting the diverse US The choice of language has a lot do with the creative. Hispanic market? Image-driven ads make language choice much less relevant. Asked by Portadatm about the factors an advertiser Latinapublisher David Kahn explains that “fashion and considers when deciding whether to advertise in Spanish or beauty advertising tends to be image-driven and therefore a English, Lauren Kuschner of People en españolsaid, “That translation isn’t necessary. Beauty ads by companies such as depends on their marketing strategy and whether they are L’Oreal and Estée Lauder are composed of sumptuous images marketing their product to an acculturated consumer, or to of models or products. Nike is another good example of this. the bulk of the Hispanic market, which prefers Spanish lan- Their ads are almost entirely visual.” guage communication.” Generally, products that are more culturally specific to Inglés o español? the Latin American or Hispanic population will be advertised in Spanish or Spanglish. David Kahn, publisher of Latina, Advertiser Sector Language explains that “advertisers use Spanish as a way to touch a chord with the readers...Or Spanglish – the language of choice HBO-LATINO Entertainment Spanish for young Latinos – to connect culturally with US Hispanic AFLAC Financial services Spanish youth. An advertiser such as Twix, for example, uses very TOYOTA Automobile Spanish youthful Spanish and Spanglish in its ads, and is therefore HONDA Automobile Spanglish relevant to our reader.” Also, ads for music and movies that MICROSOFT Technology Spanglish are from Latin America or have a specifically Latin American TWIX Food Spanglish cultural perspective (e.g. HBO Latino) will most likely be written in Spanish. On the other hand, products with a NEW YORK LIFE Financial Services English broader target audience and a more general appeal (banking, VERIZON WIRELESS Technology English insurance or technology) will tend to be advertised in English PITNEY BOWES Technology Engliish (e.g. New York Life, Verizon Wireless, Microsoft). Some of CAPITAL ONE Financial Services English these companies, like Microsoft, advertise in both Spanish and ESTEE LAUDER Cosmetics Image-driven English, or in Spanish only (AFLAC). NIKE Sports Image-driven It has to be noted that because Hispanic print media advertising is still in an early stage of development, advertisers L´OREAL Cosmetics Image-driven

14 Media buyers

(continued from page 2)

in Los Angeles, “the print media market is becoming more agrees on the need for good research on Hispanic print media. fragmented, we are dealing with more publications.” La “Often it is old,” she complains. “There is nothing showing if Agencia manages accounts for Honda, Verizon and Allstate. readership has increased or decreased. Research about Escamilla notes that print media budgets have not kept pace Hispanic print media should answer questions about who the with the large increase in the number of publications targeting readers are and what sections in each publication they read.” Hispanics. However, even with so many publications, it is still She adds that because of the lack of research, “we might be difficult to reach Hispanics on a daily basis in the urban-US. missing out on higher income and higher education “Only Los Angeles, New York and Miami” have large daily Hispanics.” newspapers targeting Spanish-speaking audiences. Other cities Lack of circulation auditing is a big issue for other media just have weeklies and monthlies,” Escamilla asserts. buyers too. A source at Ideas/Cruz Kravetz in Los Angeles says that whether a newspaper is audited or not can determine whether ad space is purchased in that newspaper. “Sometimes CPMs en español if the newspaper is well known but not audited we still might buy,” the source adds. Network TV US $18-20 However, several advertising expenditures reporting and circulation auditing firms are entering the market for Hispanic Radio US $5-10 print media. TNS Media Intelligence/CMR recently announ- National magazine US $20 ced that it will launch a new service to monitor Hispanic print SOURCE Large city dailies US $20-30 media advertising expenditures. By November, TNSMI/CMR Industry insiders interviewed will have added 40 new print media properties (magazines and by Portadatm Local newspapers US $10 newspapers) to the list that it currently tracks (Latina, Nexos, People en español, RD Selecciones, La Opinión, Diario Las Note:Figures are approximates Americas, El Nuevo Herald).

Operating on assumptions Lack of unique content According to Carat USA’s Contreras, “the tools used to According to Escamilla, the lack of “unique and specific judge a media plan in the general US market are just not content written for Hispanics” makes print media less attrac- available for Hispanic print.” Very few magazines are audited tive to media buyers. She acknowledges that large circulation and, more importantly, there is almost no third party syndica- magazines like People en españolor Selecciones Readers Digest ted research. “In TV there is Nielsen and in radio there is do have content specifically targeted to Hispanics, but some- Arbitron, but there is no third party research for Hispanic times these magazines use adaptations and just repurpose print,” says Contreras. MRI has not entered the Hispanic content from their English counterparts. As examples of maga- market. zines with unique content that hasn’t been “translated” from “In Hispanic print media, we media buyers operate on English, she cites Latinaand Urban Latino. assumptions not on facts,” Contreras explains. For the general US print market, you can look at research which tells you ...and unified format specs. which magazines are read by 18-49 year olds with asthma or Additionally, to design Hispanic print media ads can cost 18-49 year olds who are planning to buy a car. None of that a lot. “The sizes of the different publications require different exists for the Hispanic market.” La Agencia’s Sofia Escamilla creative work,” Sofia Escamilla explains. The additional design

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Portada´s high quality coverage and in-depth articles are perfect for the job. To discuss rates for reprints, please email us at [email protected]. Media buyers work means more costs to the advertising agency which, in white, English-speaking media buyers, publishers have to learn turn, are passed on to the advertiser and raise the overall cost to speak their launguage. A good example of the adaptation of Hispanic print media advertising. required can be seen in the recent hiring of Carol Mintz as vice president of advertising at the Los Angeles-based newspaper, La Opinion. Mintzacknowledges that she does not speak Improve your selling skills... Spanish well, but says that she was hired because she “speaks “Publishers have to do a better job of selling advertising,” advertising.” notes Sam Verdeja, publisher of Hispanic Magazine. Print media consumption by Hispanics has many positive characteristics which have to be highlighted to media buyers. The Homework for publishers Readerhip Institute at the Media Management Center at Northwestern University in Chicago found out in its 2000 •Produce better research (accurate and up-to-date) Impact Study that while whites remain the heaviest readers, time spent reading did not differ significantly between ethnic •Buy more and better third party research groups. More importantly, the study concluded that ethnic •Audit more publications readers spend significantly more time reading advertisements, •Standardize newspaper sizes (same format) and many of those who do read newspapers tend to travel, •Expand reach (footprint, circulation) own personal computers and other electronics, carry credit •Less fragmentation (Consolidate media outlets) cards and buy expensive jewelry. •Produce specific and unique content (no translations) ...and “speak advertising.” •More ad-sales efforts by publishers In order to sell Hispanic print media advertising to mostly •Improve communication with media buyers

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