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ahha cover 10friday at.qxp 2/15/2007 4:36 PM Page 1 SPECIAL ADVERTISING SECTION OF THE EVOLUTION OF HISPANIC MARKETING at Celebrating Our Past, Present & Future: Taking Our Industry to New Heights Project3 1/26/07 2:51 PM Page 1 on ten years of growing, strengthening, and protecting the Hispanic Marketing and Advertising industry. CONGRATULATIONS TOC.qxp 2/15/2007 3:37 PM Page 1 Una Decada ime—measured in seconds, minutes, hours, days, months, years. Regardless of how we quantify a sequence of events and the intervals in between them, most would agree that time seems to pass all too quickly. And the visionaries in U.S. Hispanic marketing who 10 years ago gathered to discuss how collectively agencies could enumerate the Hispanic market A10 A18 potential to corporate marketers, feed the professional needs of emerging Ttalent and create a community of sharing to enable the industry to flourish, would agree. It seems like just yesterday that the Association of Hispanic Advertising Agencies was born out of that passion that took root 10 years ago and today has grown to 100 agencies strong representing 98% of the Hispanic marketing firms in the U.S. and more than $5 bil- lion in Hispanic advertising spending. The narratives that follow capture the dedication and zeal of industry pioneers, as well as the commitment of current and future leaders to the expansion and evolution of a respected trade. In this special section, AHAA celebrates significant industry milestones through the contributions of many and salutes the alle- A26 A32 giance of those to come who pledge continued excellence. INSIDE These pages chronicle highlights of the last decade, as well as showcase AHAA members and leaders who were influential in shaping Hispanic marketing during that era. It’s a A4 Going Strong at 10 reflection of the past that will help guide the future. But Hispanic marketing is steeped in As AHAA marks its 10th anniversary, it’s also celebrating a decade of spectacular growth and achievement. Its goal, howev- a rich history spanning more than 80 years and, to ensure that industry history lives on in er, remains unchanged: To further the growth and standing of the hearts and minds of each generation, a repository of donated memorabilia, ads, doc- Hispanic agencies and the community they serve. uments and interviews is being established in the AHAA Archives of Hispanic Marketing housed at the Library of American Broadcasting, University of Maryland. A5 Latino Identity Project With marketers struggling to understand the Hispanic commu- What will the next 10 years bring about in U.S. Hispanic marketing and AHAA? Time will nity, AHAA has launched the Latino Identity Project to help tell. But the power of the U.S. Hispanic consumer is undeniable, and the nearly $1 trillion explain an increasingly complex area. in U.S. Hispanic spending will lure corporate marketers to explore opportunities to con- nect with this complex and sophisticated market segment. U.S. Hispanic marketing is A10 Q&A: Carl Kravetz thriving and delivering unprecedented shareholder value. For marketers waiting to invest AHAA Chairman Carl Kravetz discusses the opportunities and in Hispanic consumers, time is ticking. For AHAA and its community of members, there is challenges his industry faces today as the organization celebrates no time like the present. its 10th anniversary. AHAA extends its gratitude to everyone who made this special section possible, includ- A18 The Leaders Speak Out ing the many advertisers and supporters of AHAA. Thanks to everyone for a prosperous AHAA’s chairmen and chairwomen, past and future, offer their first 10 years, and cheers to decades of success on the horizon. assessments of the state of the Hispanic advertising industry, ! how it’s grown and where it’s headed. Enhorabuena! Association of Hispanic Advertising Agencies A26 Giving Back Pro bono work plays a significant role for Hispanic ad agen- cies—and their dedication shows up clearly in the strong cam- paigns they produce. Suzanne Hermalyn Richard K. Skews Gregory Cohane Director, Custom Programs Associate Editor Section Designer 508-497-8688 [email protected] Julie Liesse Jeanine Dunn A28 Pioneers Sandra Guy Art Director The Hispanic marketing and media industries owe their exis- Karen Egolf Nancy Giges tence to the hard work and determination of a handful of dedi- Vickie Daniel Editorial Director, Custom Programs Section Writers cated pioneers. Here are some of their stories. 312-649-5239 Production Manager [email protected] Barbara Knoll 212-210-0205 Proofreader [email protected] A32 Showcase A look at some of the best in creative from the Advertising Age Hispanic Creative Advertising Awards over the years. FEBRUARY19,2007❑ ❑ A3 Overview friday.qxp 2/15/2007 3:17 PM Page 4 Left: Jessica Pantanini; middle: (front, left to right) Jackie Bird, Rochelle Newman-Carrasco, Daisy Expósito-Ulla, Laura Marella, Patricia Gaitán; (back, left to right) Alex López Negrete, Carl Kravetz, AHAA AT 10: BUILDING FOR THE FUTURE When the Association of Hispanic Advertising Agencies was born, Hispanic marketing was fragmented, with companies unsure how to reach this key audience. Today,through the efforts of AHAA and its members, the industry is thriving—and growing stronger all the time. A4❑ ❑ FEBRUARY19,2007 Overview friday.qxp 2/15/2007 3:22 PM Page 5 SPECIAL ADVERTISING SECTION OF ADVERTISING AGE Ingrid Otero-Smart, José López Varela, Manuel Machado, Horacio Gomes; and right: Luis Miguel Messianu. EDUARDO CABALLERO HAD BEEN RECRUITED to encourage his population and the population growth. Within client companies, the discus- Hispanic agency colleagues to find a better way to work together on behalf sion of this market had not gotten as high as the chief marketing officer, let THE LATINO of the Hispanic market. alone the CEO,” says Alex López Negrete, president-CEO of López Negrete IDENTITY PROJECT: Time after time, he found the same problem: Hispanic agency chiefs were Communications, Houston, and a former chairman of AHAA. “We had to UNDERSTANDING so competitive and protective of their accounts that they were reluctant to sit put ourselves on the map, not just as an association but as a segment—to A MARKET together in the same room. Mr. Caballero, then CEO of the country’s largest prove that Hispanic marketing was for real. Our job was broad; we had to By Julie Liesse Spanish-language radio rep firm, realized the bigger dilemma: “We needed unify the industry.” an organization to work for the betterment of the industry, to do something Over the past 10 years, AHAA has used a variety of initiatives to do all When explaining the nuances of Hispanic mar- that would promote the value of the Hispanic market.” three things: establish its association, promote the Hispanic market and keting to his clients, Gustavo De Mello of Chicago-based Lápiz USA sometimes gets per- In 1996, Mr. Caballero organized a meeting in Dallas. “I sent all the unify its agency membership. sonal. He profiles one of his friends. Hispanic agency presidents a letter and told them they needed to come to For example, AHAA has tried to be a clearinghouse and an advocate for She speaks Spanish at home, goes to Mexico this meeting,” he says. When the agency heads didn’t respond, he began much-needed research on the U.S. Hispanic market. When AHAA board three times a year, wants to marry a Latino, goes phoning them. member Rochelle Newman-Carrasco started in Hispanic marketing in the to church every Sunday and watches novelas, or Faced with Mr. Caballero’s persistence, the executives capitulated, and 40 early 1980s alongside industry pioneer Pedro Font, she recalls physically tak- Spanish-language soap operas. Clearly,she fits of them showed up in Dallas in May 1996. By the end of the day, the ing clients into Hispanic neighborhoods to show them the potential market. the description of what Mr. De Mello, VP-director Association of Hispanic Advertising Agencies was born. Its first chairman “There was no research, there were no numbers,” she says. “We had to show of strategic planning at Lápiz, calls “an unaccul- was Héctor Orcí, chairman of La Agencia de Orcí & Asociados, Los Angeles. them what we were talking about.” turated Hispanic” individual. Today, as it wraps up its first decade, AHAA has undergone tremendous AHAA routinely surveys its own membership on Hispanic marketing Mr. De Mello continues by describing a growth, from the dozen or so agencies represented at that organizational numbers and trends. It also works with leading research companies to pro- Hispanic who fits the definition of “acculturated,” meeting in Dallas to 100 agency members, increasingly diversified by own- cure better numbers on the Latino population. As part of its current Latino someone who is fully “American”: She is fluent in English, makes more than $100,000 a year, has a ership and specialization. Identity Project, for instance, AHAA is working with leading consumer graduate degree and is a woman living alone. At the same time, AHAA has seen an amazing change in its market: research firms, including Simmons Market Research, to make sure Latino The punch line? Both examples are the same I Hispanics, foreign- and native-born, made up 14.5% of the U.S. population identifiers are included in its surveys. woman. in 2005, according to the Pew Hispanic Center and the U.S. Census. In just five Mr. De Mello’s example illuminates the years, from 2000 to 2005, the Hispanic population grew an amazing 21.5%. Uniting the industry changing nature of the Hispanic population in the I Of the 42 million Hispanics in the U.S. today, 60%, or 25 million, are U.S.- Calling Hispanic agencies to work together on public service initiatives such U.S.