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PortadaT RACKING THE E XPANSION OF H ISPANIC M EDIA February / Sandbox Wars: Parenting March 2008 Market Heats Up

Word is out on the playground: publisher Enedina Vega-Amaez. Hispanic parenting media is big business Todobebé, a 24-page magazine—16 and is growing bigger by the day. New editorial and 8 advertising—is going to York-based Palladium Equity Partners be distributed as an insert in PORTADA-ONLINE just wagered $15 million dollars on it Impremedia newspapers together with Check out daily updates at when it approved financing for La Vibra, Impremedia’s Friday enter- Todobebé’s expansion, which includes the tainment supplement. Impremedia www.portada-online.com launch of its print publication in April. publishes Spanish-language newspapers Meanwhile, publishing giant in New York, , Los Angeles, Meredith shuttered its general market San Francisco, Orlando and Tampa. parenting title, Child, to focus its Nelson pointed out that in those mar- resources on its Spanish-language title kets where Impremedia does not Ser Padres, now the largest consumer magazine in the country, according to (continued on page 13)

7 NEWS AND TRENDS 2008 Election: A Fruitless Tree So Far... From Traffic to Leads

8 FOCUS ON You Make Me Click: Driving • Hispanic Media Market Opportunities with Venture Capitalist Greg Sands Traffic to Hispanic Websites

• Buying Hispanic Digital Media As the old saying goes, “You can Behavioral Targeting and with Bravo's Luis Cabrera lead a horse to water, but you can’t Geotargeting—and assess the strengths make him drink.” But that’s OK for and weaknesses of each, while shining a • Growth of the Hispanic FSI ad-networks driving website traffic. light on some other non-traditional Market with NSA's Craig Desens After all, it’s all about direct response options. and generating leads. Once the consu- mer is at the advertiser’s page, it’s up Behavioral Targeting 9 RECENT NATIONAL to the advertiser to close the deal with “Behavioral targeting is a very big ADVERTISING CAMPAIGNS a good product and a good offer—at field,” says Danny Allen, founder and least under a cost-per-click model. But partner of online ad network Admixture. there’s the rub: How do you drive traf- “People hear about behavioral targeting 18 REACHING THE MASSES fic in the first place? Well, there are a (BT) and think of it as a magic bullet ONLINE number of ways, and this article will for online advertising, with the empha- • Media Behemoths Battle Online focus primarily on two of them that Pure-plays for Hispanic Eyeballs have been all a-buzz recently— (continued on page 17) 3 Try Portada FREE and Become a Hispanic Market Insider!

1 ] What is your line of work? (Please check the following boxes > Yes, I want to get the print issue of Portada 5 if appropriate) times a year Publisher (Newspaper, Magazine, Website) Advertising Agency > I would like to subscribe to the following Corporation Direct Marketer targeted Portada E-letters Editor Researcher Content Provider HTML Text Public Relations Professional Service Provider Content for Spanish-speaking Audiences Other (monthly) 2 ] What are the annual sales of your company?

$0-0.5 million Digital Media (weekly) 0.5-1 million 1-5 million 5-10 million Market Intelligence (Bi-weekly) 10+ million

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4 ] Which of the following Products/Services do you take part in making Public Relations targeting Hispanics (monthly) the decision to buy?

Advertising/Media buying/planning (U.S. Hispanic) > I want to get a 30-day online trial subscription Advertising/Media buying/planning (Latin America) to www.portada-online.com (Portada will Content/Newswire Other Editorial Content PR Services notify per e-mail when your subscription Research starts. Please allow two weeks after we receive Trade show attendance No, I dont take part in decision making to buy products/services this order form to get your password) Please send me information about advertising opportunities in Portada

Please fill out the following information and answer the questions on 5 ] Advertising in Portada the right to qualify for the Portada subscription(s) you requested above. Please send me information about advertising opportunities I am not interested in advertising in Portada

First Name 4 EASY WAYS TO BECOME Last Name A PORTADA SUBSCRIBER TODAY!

Company / Organization 1. Make a copy of this filled out page and fax it to: 212 685 44 50

Address 2. Fill out his form and mail it to: Portada City Zip code Park West Station POB 20526 NY, NY 10025 State Country 3. Call us at 1-800-397-5322 and a sales representative will Phone number register your selections for you. 4. Online at http://www.portada-online.com/newslettermng.aspx e-mail CONTENTS February/March 2008 issue, Year 6, Number 29

Features

Sandbox Wars 6 Our View 3 Hispanic parenting media market heats up The Case for Hispanic Ad Investment

You Make Me Click 7 News and Trends: General 3 Driving traffic to Hispanic websites • 2008 Election: A Fruitless Tree So Far...

Hispanic Health Advertising • Hispanic Digital Media Debate 16 Lots of promises but will they be realized? • Un Buen Doctor Launches Website Reaching the Masses Online 20 Media behemoths battle online pure-plays for • Outdoor Advertising Hispanic eyeballs • Taking Radio and TV Advertising Online Big-Bucks Retail 27 Retailers reach hispanics through complementary • Maya Magazines Delays Nueva Launch media vehicles 8 Conference Calendar 30 Market Intelligence: Retail Advertising More than half of all FSIs placed in Hispanic 9 Recent National Advertising Campaigns: newspapers are in English • Jose Cuervo Platino Reserva de La Familia, Amtrak, Wal-Mart, Wrigley’s, McDonald’s, Merck, Blurred Borders Tylenol, Tecate, Möen, U.S. Foster Care System 31 : The Lone Star State's media market Focus On 10 • Hispanic Media Market Opportunities with Venture Capitalist Greg Sands

• Buying Hispanic Digital Media with Bravo's R 21 Luis Cabrera www.portada-online.com 25 • Growth of the Hispanic FSI Market

Your Home Page for Hispanic Media News and Trends: Panregional and Advertising 12 • LatinAm/U.S. Combined Media Buys Esquire Spain Launch Current Top Stories from www.portada-online.com News and Trends: Content > Hearst's Hispanic Media Foray • Where Do Hispanic Portals Source Their Content? > U.S. Census Regional Campaigns 35 Advertiser Index > Impremedia's Next Steps...

5 R OUR VIEW

PUBLISHER Marcos Baer An End to Quota Advertising, Hispanic Media EDITOR Deserves More Alex Andrews CORRESPONDENTS There is no doubt that Hispanic consumers and media deserve a higher Carrie Barnes share of the $200+ billion U.S. advertising pie. The demand equation is (USA - Los Angeles) clear, considering factors such as population, purchasing power, average Heather Norgaard (USA - St. Louis) age etc. Hispanic advertising expenditures of most Fortune 500 corpora- Ana Lydia Valdes tions are ridiculously low. () Ivonne Ramírez (Argentina) Hispanic Media Executives must resist pushing back-of-the-envelope cal- Angela Sandoval (Spain) culations of what advertisers' “adequate” Hispanic media expenditure should be. Assuming a position of entitlement is not the way to go. A much SALES AND MARKETING stronger case for increased investment can be made by presenting ROI Annette Fielman (516) 396-0179 enhancing business propositions. The strength of the Hispanic market warrants more than merely “quota” or “minority” advertising. Nicolás Miranda RESEARCH Agustin Wydler Assuming a position of entitlement is DESIGN www.dafnedesign.com.ar not the way to go. Audit by Even though demographic factors are extremely compelling, what marke- ters need to be convinced about is of the viability of Hispanic media to reach Hispanic consumers and to drive sales. To present this case requi- res more work than back of the envelope media spend calculations. For Copyright: Portada®2008 the print and digital media world, the relevant metrics include: product No part of Portada® may be copied, reproduced quality, reach, quality of distribution, readership figures, as well as more or broadcast in any form without prior permission. Comments by sources cited in Portada® have qualitative research. been directly obtained from them, unless its is explicitly noted otherwise. Portada® is not affiliated with any other publication, media A new, perhaps more sophisticated and studied, generation is taking over group, advertising agency or any other institution. the helms of Hispanic media companies and has an extraordinary oppor- Portada® is published by Contenido LLC in . Portada® publishes a weekly e-newslet- tunity to show advertising agencies and corporations why it makes so ter, a bimonthly print issue (except for the summer months, 5 times a year) that is direct mailed to much sense to reach the heterogeneous Hispanic media market. subscribers and, daily, the website www.portada- online.com. A one year subscription of Portada® in PDF format costs US $189, including access to It is our aim here at Portada, as we enter our fifth year and prepare for our the Portada® website, (www.portada-online.com) second annual conference, to contribute to the growth of Hispanic media with round-the-clock-breaking news and its arti- cles archive. A subscription to Portada® printed and advertising by providing a nuanced and in-depth look at each and version (delivered by regular mail) costs an addi- every aspect of our dynamic industry. tional US $10 (Total US $199). Single issues of Portada® cost US $30. To subscribe please send a check payable to Portada, Park West Station, P.O.B 20526, NY, NY 10025, USA. For payment by wire transfer send funds to Citibank N.A. 399 Park Avenue, NY, NY 10022, USA Account name: Portada, Account #22072064 Routing # 021000089. For reprints information and prices please contact [email protected]. Break out the Champagne! Please send address changes to Portada, Park West Station, P.O.Box 20526, NY, NY 10025, USA. In celebration of Portada's 5th Anniversary, we MISSION are rolling out new content and advertising Portada® seeks to increase knowledge about programs. To be a part of the celebration and the U.S. Hispanic and Panregional (Spanish- speaking world) media, advertising and content find out how to GET A FREE AD, contact markets Portada also aims to improve the Marcos Baer ([email protected], or performance of marketing professionals, media buyers, publishers, PR professionals and at (212) 685-4441). researchers.

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

News and Trends 2008 Election: A Fruitless Tree So Far... he upcoming 2008 presidential election represents a potential boon T for Hispanic media properties, par- ticularly as Hispanics are currently enjo- ying a higher profile in the electoral pro- cess than ever before. According to a recent report by Stamford, CT-based PQ Media, political campaigns are set to spend $4.5 Billion on advertising in 2008. Make it your But how much of this will be allocated to resolution Hispanic media? None of the publishers or agencies Portada spoke to would even ven- to contact ture a guess. So far, actual Hispanic advertising on the the leading part of the campaigns has been extremely limited, particularly in print. While many U.S.Hispanic candidates have taken time to speak with Spanish language media, none have been website* particularly forthcoming with ad dollars. Carlos Reina, account Manager for Texas’ chain of newspapers, puts it this way: “We’re hoping we see some effect from the election. The challenge is that lots of political advertisers think they can reach everybody through general market properties,” says Reina. “We did mail out several press kits directly to campaigns and also to their agencies, back in May, letting them know we’re in three markets, and that we could help them reach who they’re loo- king to reach.” While we can’t help what’s on your TV or in your fridge, at Batanga we can Rumbo’s editorial director Rodrigo Paris says that the paper’s primary focus provide you with a new media opportunity that will help drive your brand’s vis-à-vis the 2008 presidential election will success in 2008. Over the last 12 months our flagship Batanga.com website be the immigration debate and which posi- has seen its audience quadruple, and is among all exclusively tions the various candidates take on the Latin targeted websites.* With a mix of youth driven content featuring 26 issue, as it is a pivotal one for many of the online radio stations, a social networking community and tons of streaming paper’s readers. As part of the “Ya es Hora ¡Regístrate!” content, Batanga.com has what Latinos are most passionate about. Make it campaign, .com has created a your resolution to contact Batanga today. special election center with vital informa- tion, interactive tools, and registration ins- tructions. Local mini-sites are also posting registration dates and featuring articles that urge Hispanics to voice their opinions by voting. In late 2007, Univision hosted the media kit site: www.batanga.com/mediakit first-ever Spanish-language presidential or contact Margie Bonomo at [email protected] debate with the Democratic candidates, and later held a Republican debate, as well. * comScore December 2007, US Unique Visitors © 2008 Batanga Inc.

7 News and Trends

HISPANIC DIGITAL MEDIA DEBATE: among very low income Hispanics, Internet DOES IT MAKE SENSE TO TARGET penetration is relatively high, says Villa. SPANISH-DOMINANT HISPANICS VIA According to recent research done by his EVENT DIGITAL MEDIA? agency for a Los Angeles-based public insti- Spanish-dominant Hispanics are onli- tution, 30% of Spanish-dominant ne, it’s just a matter of having enough rele- Hispanics earning an average of $12,000 CALENDAR vant content, says Jose Villa, president and have Internet access. Villa adds that the founder of L.A.-based Sensis, a multicultu- need for more relevant content targeting Industry Conferences of ral interactive advertising agency, whose Interest to Portada Readers accounts include the U.S. Army. Even (continued on page 11) • FEBRUARY 2008 > Retail Advertising Conference (Feb 6-8, Retail Advertising & Marketing Association, The Hilton, Chicago, IL)

> 2008 Marketing Conference (February 24-27, Newspaper Association of America, Orlando World Center Marriott Resort & Convention Center. Orlando, FL)

> 22nd Annual Circulation Day Conference (February 12, 2008 in New York City., Marriot Marquis)

• MARCH 2008 > Multicultural Media for Multicultural America (March 4, 2008, Horowitz Associates, Hilton, New York)

> AAAA Media Conference & Trade Show (March 5-7, Association of American Advertising Agencies Rosen Shingle Creek, Orlando, FL) , , Las Vegas)

> Multicultural Media Expo 2008 (March 11-12, MCM, Los Angeles)

> IAP Mid-Year Conference (March 28-30, Inter American Press Association, Caracas- Caracas Plaza Hotel, Venezuela)

• APRIL 2008 > 5th Annual Insert Media Day (April 1, The Direct Marketing Association, McGraw Hill Conference Center, NYC)

> International Home Furnishings Market (Mar 31- Apr 6, 2008, International Home Furnishing Center, High Point, NC)

> 5th Annual Latino DVD Conference (April 8, Questex Media, Intercontinental Hotel, Los Angeles)

> Capital Conference 08, NEXPO, NAA Annual Convention and ASNE Convention (April 12-16, Washington Convention Center, Washington,DC)

> Ad:Tech: San Francisco (April 15-17, Ad:Tech, San Francisco, Moscone Center)

> AHAA 2008 Media Conference (April 16-18, Association of Hispanic Advertising Agencies, Grand Hyatt, San Antonio, TX)

8 News and Trends

National Advertising Campaigns

BRAND Company Agency Period Vehicle Comment

José Cuervo Platino José Cuervo Arnel (Creative) September Print ads in GQ and Men's English-language print ads. Reserva de La Familia MediaCom 07 - Spring Vogue, and local luxury Considering Spanish-language (buying). 08 magazines Gotham, and ads for second half of cam- Ocean Drive. paign.

Amtrak U.S. Government Images USA March, Expected stand-alone Promote spring and summer April, May direct mail, magazines travel. 2008 and online.

Wal-Mart Wal-Mart Starcom Media 2008 Going more into local NA Vest buys (radio, print, online NSA (newspapers) geotargeted).

Wrigley's Wrigley's Bravo (creative 2008 Increasing interactive NA and planning) portion. Buying (Mindshare and in-house)

McDonald's McDonald's OMD Latino 2008 Increase of digital portion NA

Merck Merck Prime Access 2008 More focus on target In 2007 advertised in (different brands) selection. Selecciones, Readers Digest More online advertising. and Men's Health en español.

Tylenol McNeil Consumer Azafran/LIH 2008 Broadcast NA

Tecate Heineken (U.S. importer) Adrenalina (AOR) 2008 Primarily on broadcast, Targeting 2nd generation Mediavest (buying) Some online advertising Mexican American online. for Tecate Light.

Möen Möen Marca Hispanic Q4 2007 Print and online in Alto Nivel and Soy U.S. Media Mexico, Central America Entrepreneur magazines and Consulting and the Caribbean. their websites.

U.S. Foster Care The Advertising Council, U.S. NA 2008 Spanish television, radio, Campaign designed to encour- System Department of Health and and print PSAs. age Spanish-speaking families Human Services, and individuals to consider Administration for Children adoption from the U.S. foster and Families (ACF) , care system. Collaboration to AdoptUsKids

SOURCE: Portada Directory of Corporate Marketers and Media Buyers targeting Hispanics NOTE: To get detailed contact information for more than 2,000 Corporate marketers and Media Buyers/Planners targeting Hispanics. Call or e-mail Annette Fielman at (516) 396-0179 or [email protected].

9 News and Trends

FOCUS ON: A VENTURE CAPITALIST'S VIEW OF HISPANIC MEDIA

Greg Sands, Managing Director of Sutter Hill Ventures is a specialist in software, Portada: What was behind your deci- internet services, and advertising, marketing and media technologies. One of his fir- sion to invest in the Hispanic digital media marketplace? m's recent investments is the Hispanic online ad network Consorte Media. Sands talked to Portada about Consorte and other opportunities in the Hispanic market. Greg Sands: The Hispanic audience online has gotten to critical mass and continues to grow rapidly. It has sub- stantial buying power but is under- served. Consorte can help grow the market by providing better monetiza- tion to publishers. It will encourage money to flow into the Hispanic media segment by aggregating enough audi- ence so that advertisers who want to reach the Hispanic audience will have trusted ways to do so.

Portada: Are you looking to invest in Hispanic media properties other than Consorte?

Greg Sands: I am already an investor in Nexxo Financial which provides easy, convenient, and low cost remit- tance services between the US and Latin America. I am looking for great businesses and great business lead- ers across segments and the Hispanic market has many interesting opportunities.

Portada: Do you think that a company active in the Hispanic media market has different valuation multiples than one present in the general market?

Greg Sands: No, not different multi- ples of revenue or profit. But I do think that publishers in the Hispanic market have lower monetization (CPMs or advertising rates) than publishers in the general market. That shouldn't be true. Hispanic customers have ample (and growing) buying power, but advertisers haven't had good ways of reaching that audience outside of the couple large portals. Consorte will help solve that problem by aggregat- ing a high quality audience that advertisers can reach and thereby helping publishers make more money.

Portada: What are the main chal- lenges when investing in Hispanic media properties?

Greg Sands: Other than monetization, I don't think there are unique chal- lenges in this segment. People are people and business is business.

10 News and Trends

(continued from page 8) loring it to their needs: Hispanics, which makes campaigns targe- “It’s very important for health informa- ting them very effective. Spanish-dominant Hispanics is reflected in tion to be readily available to our commu- the fact that websites such as nity, and the launch of UnBuenDoctor.com INTERESTING AUDIT METHOD ElSalvador.com receive 40% of their visitors is an important step in facilitating that,” Auditing of outdoor advertising is done from the U.S. Hispanic market. says company president Carlos Olea. with data from the Department of Public Basic information on the healthcare Transportation, which measures how ON THE RISE... providers takes out some of the guesswork many impressions a particular ad gets, the Aurora Losada, editor of Spanish-lan- of choosing a physician. will also provide figure is calculated based on a formula that guage publications of The online users with “Seguros de Salud.” This also takes into account the distance betwe- Chronicle, agrees with Villa: “We believe site area which is sponsored by Aetna provi- en the ad and the targeted audience (e.g. Spanish-dominant Hispanics’ demand for des users with an easy to read guide which whether a billboard is right next to a high- good websites in the US is in the rise. Three allows them to better understand the diffe- way or half a mile away but still visible to elements lead us to that consideration: First, rent types of health insurances available, fre- the car passengers). US Spanish-dominant online viewers are quently asked questions, questions they Typically, an outdoor ad located on Los generally used to good, well-established should ask their agent and useful informa- Angeles’ Hollywood Boulevard will get websites by respectable newspapers in their tion about coverage for health and life insu- 60,000 to 120,000 impressions a day. countries of origin. Second, many of the rance issues. This feature is of great value latest research studies confirm that the because, according to the Census Bureau, Spanish-dominant segment is growing fast over 30% of US Hispanics remain without TAKING RADIO AND TV online.” Losada adds that “a good example health coverage. ADVERTISING ONLINE of this is the fact that more and more The site’s content will come from a Online TV and radio broadcasting is businesses are launching their own Spanish variety of sources, including, logically, the growing. The advantages? Viewers and liste- websites to reach this online community.” team of doctors that write for Un Buen ners can watch/listen to a channel anywhere Losada concludes that “the unstoppable Doctor magazine. Other content will be pro- on earth. This provides increased targeting online dominance in the newspaper vided by industry organizations like the capabilities to advertisers (particularly industry will naturally become the trend for American Lung Association and the through geotargeting). This way, radio and Spanish-language publications as well. American Cancer Society. TV stations can capture a supplemental Compared to English-language media we Advertisers will include health and beauty slice of the Hispanic advertising pie. are still behind, but in the race.” product manufacturers, Pharmaceutical Often, these websites are sold through Asked whether he agrees with many companies, and the healthcare industry. online advertising networks. One of these is observers who claim that it is difficult to New York-based Internap, a company that reach Spanish-dominant Hispanics via the specializes in selling online radio advertising Internet, Admixture’s Danny Allen says, “yes OUTDOOR ADVERTISING: inventory. Approximately 175,000 unique and no. According to the “Latinos Online” LOW CPMS AND TENS OF listeners stream 1.7 million radio broadcasts report from the Pew Hispanic Center, only THOUSANDS OF IMPRESSIONS a month on the websites of radio stations in 32% of Spanish-dominant US Hispanic Typically, out-of-home advertising Internap’s networks. adults are online. However, the growth in (Billboards, Public Transportation, Cinema Internap sells banners on the radio web- Internet usage by US Hispanics is about advertising) accounts for 3%-6% of adverti- sites and, more importantly, audio inser- twice that of other groups, so the number of sing budgets. In the Hispanic market, out- tions. These are ads specifically created for US Hispanics online is growing quickly.” door advertising lies at around $100 to the programming the listener is streaming $110 million and growing at a 10%-12% down. Another form of online advertising ...AND ADVERTISING FRIENDLY rate, according to Greg Taylor, Director of in online video is audio/video gateway ad- Allen also notes that “the number of web Hispanic out-of-home advertising at placement—the pre-roll ad format consis- surfers that say they find Internet advertising -based Alcance. ting of audio and/or video content that is useful is about 60% higher for Hispanics Main Hispanic markets for outdoor inserted before the selected media content than non-Hispanics. I can tell you from advertising are, in this order, Los Angeles, plays. Both types of advertising charge con- Admixture’s experience that click-thru rates Dallas Ft. Worth, New York, Chicago and siderably higher CPMs than regular banner are generally (but not always) higher for Miami. Outdoor advertising is priced on a advertising (see box below). Spanish-language websites than for English- CPM basis, with CPMs typically lying bet- Similarly, online TV broadcaster language Hispanic-focused websites.” ween $3-$5. These CPMs are lower than JumpTV sells banner and pre-roll advertising most other media categories (e.g. TV, to advertisers wanting to reach Hispanic vie- Newspapers and magazines). In the wers (mainly through its sports broadcasting UN BUEN DOCTOR LAUNCHES Hispanic market, companies typically char- like Soccer World Cup Qualifying Games). WEBSITE ge a lower CPM, as outdoor advertising Online sales of Hispanic radio and TV sta- Hispanic health magazine Un Buen inventory in Hispanic neighborhoods tends tions amount to a small part of the total Doctor has just launched a website to make to be outside premium areas for outdoor Hispanic online advertising market. its resources accessible digitally. advertising placement. This is changing, Approximately 5%-10% of the overall UnBuenDoctor.com offers users the however, as more and more marketers want Hispanic online advertising market— $7.5 ability to be able to search for doctors, den- to specifically reach Hispanics. As Alcance’s to $15 million—is currently spent in online tists, hospitals and organizations within Taylor points out, Hispanics tend to live in their own community while specifically tai- neighborhoods with a high concentration of

11 News and Trends

sales on Hispanic radio and TV stations. Where do Hispanic Portals Source their Content? However, online video advertising sales of major portals (e.g. Terra, StarMedia, Univision Online, Batanga etc...) are not Advertising Format Content Provider included in this figure. MSN Latino AP, Efe and Reuters. Channels fed by: Fox Sports en Pricing Tiers in Online Español, Billboard Latin Music, Astrocentro, Latina Advertising Magazine and Match.com

Advertising Format Average CPM StarMedia Agencia Efe, Associated Press, Notimex Banner $5-$10

Pre-roll Advertising $18-$20 Cyloop Artist generated, Billboard Latin Music, Notimex, Reuters, Audio Insertions Up to $40 AP, EFE

MAYA MAGAZINES, DELAYING Batanga All in-house NUEVA LAUNCH, EXPANDING OTHER PUBLICATIONS Nueva Magazine, a magazine targeting Terra Networks Reuters, AP, EFE, BBC. Others include Azteca America, Hispanic women in English, is delaying its Cosmopolitan en Español, GolTV, Fodors, etc. launch. “We don’t have a launch date yet. The reason for pushing back the launch is due to the fact that we are not 100% happy with the final editorial content, which is not SOURCE: Above Portals achieving the company’s quality standards,” says Maya Zanic, Marketing Manager of Maya Magazines. Maya Magazines, owned by Mexico’s and available in Spain, Mexico, Argentina one compared to the one that buys for U.S. Notmusa, is expanding other Hispanic and Chile. More Latin American countries Hispanic. However, San Antonio based print media properties. The Miami-based may eventually be included. The initial Bromley recently planned both a panregio- publishing house publishes H para print run is 100,000 copies. Open rate for a nal and U.S. Hispanic campaign for one of Hombres, which is distributed in the U.S. full page color is 100,000 euros (CPM 100 its brands, Reynolds Wrap. Hispanic market, with editorial content euros). The dollar/euro exchange rate Bromley Communications created an from Mexico. “In 2008 we will expand H’s currently is $1.45/1 Euro. ad campaign for Reynolds Wrap equity by launching H Extremo, a Esquire in Spanish will focus on interes- Aluminum Foil to reach out to U.S. bimonthly magazine that will take readers ting people with something to say, and Hispanics, as well as cooks in , beyond of what they see in H.” Woody Allen, who graces the magazine first Mexico and Panama. Television and radio Maya Magazine’s most successful pro- cover issue, “is the prototype of what men spots were launched in October and will perty is TVNotasUSA, a weekly Spanish- and women see as an intelligent man, one continue through December. The commer- language entertainment magazine with a whom they would like to meet for dinner cials are airing in Houston, Miami and Los circulation of 150,000 and a pass along and have a conversation with” Rodriguez Angeles. Print was not part of the initial rate of 6.4. The publication gained the told The Associated Press. launch but could be considered in the futu- following new advertisers in 2007: re, representatives of Bromley told Wrigley’s, Concord, Teddy Grahams, Brandweek.Miami-based Zubi Advertising Caress, Dish Network, Sangria Colonial, BUYING LATIN AMERICAN AND U.S. also manages some accounts that have both Fruit of the Loom, Grupo Cavallino and HISPANIC ADVERTISING TOGETHER a panregional and U.S. Hispanic compo- Live Nation). Media properties like Televisa nent. Could this be the beginning of a new Publishing, Terra, StarMedia, Selecciones trend? With more and more Latin and others that sell to both U.S. Hispanic American media properties setting up shop ESQUIRE SPAIN LAUNCHES AND and Latin American advertising buyers in the U.S. (e.g.), it certainly would be WILL ALSO BE DISTRIBUTED IN often wish they could talk to the same agen- practical. In addition, while there are subs- MEXICO, ARGENTINA AND CHILE cies. However, this has often not been the tantial differences in targeting a product Madrid based publishing house Spain- case as decision-makers are frequently based towards the U.S. Hispanic market, compa- Media, launched the Spanish edition of in each local market. Furthermore, even the red to the Latin American market, there are Esquire last fall. agency that buys panregional (for all Latin also many similarities. The magazine is published in Madrid American countries) tends to be a different

12 Parenting Media

(continued from page 3) offices. Like Espera, 12 Meses is published magazine New Parent. Steve Kantor, twice a year. Its circulation is 300,000 president and co-owner of Impact publish newspapers Todobebé is going to and it is distributed in maternity wards. Media says their new Hispanic paren- be inserted in other Hispanic newspa- The publication serves as a month by ting title is different from existing pers. The magazine is going to be publis- month guide to the baby’s first year. magazines because it is designed to help hed two times a year (mid-April and mid Impact Communications is another pregnant women make the transition to September) and will have a circulation of player in the field with New Parent en motherhood. While other titles focus 900,000. Each of the issues is going to español (825,000, 2x year/ Spanish), be released before major events organized sister publication to the general market by Todobebé take place. Meredith Corporation is quite acti- ve in the marketplace, publishing three separate titles targeting Hispanic parents: Ser Padres (700,000, 8x/year, Spanish) Espera, circ: 375,000, and 12 Meses, circ: 300,000. According to publisher Enedina Vega-Amaez, Ser Padres’ circulation qualifies it as the lar- gest Spanish-language consumer maga- zine in the country. Meredith’s Hispanic market paren- THE LEADING PUBLISHER ting media trajectory has been quite an of Spanish-language women’s magazines, interesting one, very much intertwined reaching 3.7 million Hispanic women. with its general market initiatives. In 2005, Meredith acquired Ser Padres as part of a $350 million dollar deal that included general market titles Parents, Child, Fitness and Family Circle. The magazine is meant to provide all the tools Hispanic parents need to raise healthy and happy children. The acquisition of Ser Padres was huge for Meredith, as it had a bimonthly circulation of 500,000 copies, virtually doubling its Hispanic parenting market penetration. Fast for- ward to April of this year when Meredith announced that it was dis- OCTUBRE/NOVIEMBRE ‘07 SER FEBRERO/MARZO 2008 continuing Child, which had been part

EJEMPLAR ® ® Especial of the 2005 deal with Gruner and Jahr. POR EL BIENESTAR DE TODA LA FAMILIA GRATIS de Padr esPARA TI aniversario Del desafío Citing satisfactory returns from Ser al orgullo SIMPLE Y cría hijos seguros DELICIO S O MUJERES de sí mismos en un C ocinando 10 QUE INSPIRAN Padres, the company announced that it mundo bicultural con la chef •Adamari López Ingrid Hoffmann •Candela Ferro SALUD •Angélica Vale ¡y otras! would continue as a print publication. FEMENINA L a verdad LOS ÚLTIMOS sobre AVANCES MÉDICOS los bancos The magazine’s current incarnation was evita penalidades y cargos por Introducción especial Niños sanos incumplimiento por Hillary Clinton guía para que / completed when, in October of this aprendan a AL OTOÑO CON ESTILO comer frutas CABELLO Moda de lujo [y vegetales ESPECTACULAR/ a tu alcance ¡como las accesorios year, Meredith merged Healthy Kids en estrellas! 25 sensacionales Maquillaje SER LATINA… para seduci r español into Ser Padres, bringing its cir- ¿te ayuda en el trabajo? ALTO A LA ¡Levántate VIOLENCIA culation to its current level. DELICIOSOS DOMÉSTICA renovada! PLÁTANOS Banca en S OLUCIONES NOCTURNAS DE BELLEZA Protagonistas Internet Meredith’s other two parenting en la cocina ¡práctica y fácil! publications are aimed at reaching parents at all stages of parenthood. Espera is published twice a year— once in the Contact Enedina Vega at 212.499.2106 Spring/Summer, and once in the or Jon Andrade at 212.499.1821. Fall/Winter— and targets expectant Hispanic parents. Its circulation stands at Source: Simmons Fall 2006 NHCS Adult Full Year Unifi ed Study, Siempre Mujer based on Simmons-created 375,000 and it is distributed in OBGYN prototype, Publisher’s adjusted audience for Ser Padres; 2004 Simmons Reader Studies for Espera and 12 Meses

13 Parenting Media

on the daily challenges of specific stages Todobebé’s view is that integrated Hispanic Ventures but also other parts of pregnancy or parenthood, New media content platforms are crucial to of the enterprise as seen recently with Parent en español takes a more long-term reaching this market and ensuring that Kellogg’s. Thanks to the work Meredith view, says Kantor. Advertisers include: the advertiser’s brand is in the hearts did for Kellogg’s in the Hispanic mar- J&J, Kimberly-Clark, Clorox, Balmex, and minds of Hispanic parents. ket last year, Meredith Integrated Avent, P&G, Target, Babies ‘R’ Us, Enedina Vega-Amaez, publisher of Marketing was able to pitch – and land Burlington Coat and Desitin, among Meredith’s Hispanic titles, cites develo- – a general market program.” others. The magazine is distributed by ping markets as a new factor in the Todobebé’s business model centers childbirth educators, OBGYN offices space: “We’ve seen a growing demand on expanding its brand in the and Babies ‘R’ Us stores who distribute for our magazines in areas across the Spanish-speaking world, through on a gifted/complimentary basis. country where the Hispanic population syndication agreements similar to The picture hasn’t all been rosy, is expanding and a growing demand those of Martha Stewart’s however. Two Hispanic parenting from advertisers desiring to reach moms. Omnimedia. This past August, the media properties have closed in the last In addition to our internal growth, a few company announced its expansion year. Lamaze para Padres (circ. Spanish-language websites have entered into Spain, Colombia, Mexico and 750,000, 2 printings annually), which the competitive marketplace.” Guatemala. In Spain, Todobebé sig- Ivillage Parenting Network published, New Parent en español Founder and ned a format license deal with the TV was discontinued in 2006 due to strate- President Steve Kantor echoes Vega- production and distribution company gic considerations upon being bought Amaez’s comments about the increased DRIVE Television, S.L. which has out by NBC Universal. It was nothing advertiser interest: “We are beginning adapted the Todobebé TV show for personal, though; the new company to see more advertisers who recognize broadcast. Last summer, Todobebé shut down all of its print initiatives. the need to communicate with this joined forces with Caracol, the largest Similarly, Northwest Parent Media, a market on its own terms. They recogni- media company in Colombia, to company that published regional ze it for the growth market that it is.” launch a summer run of Todobebé parenting magazine Padres de Hoy TV on Caracol Television nationwide. (monthly, Spanish, circ. 30,000) in Platform Integration Strategy The deal expanded the agreement first cooperation with Seattle weekly Some of the technological and launched between Caracol and Hispanic newspaper Sea Latino, folded demographic developments that have Todobebé in the summer of 2006, the magazine earlier this year when Sea taken place in recent years have necessi- and brought Johnson & Johnson into Latino (circ. 20,000, Spanish) was tated certain shifts in strategy by the mix as an advertising partner. acquired by The Washington Post Co. publishers. Much of this strategy shift In Mexico, Televisa Networks has to do with platform integration. extended its licensing agreement with An Evolving Landscape Commenting on how her company has Todobebé to include more episodes While Hispanic parenting media integrated its platforms, Vega-Amaez and more frequent airings. Todobebé has clearly grown over the last few says, “Seamlessly. As part of Meredith also closed a video licensing agreement years, it has also changed in some fun- Corp., publisher of Parents, American with the Mexican video publishing and damental ways. Todobebé’s Cynthia Baby and Family Circle magazines, we distribution company Tycoon Nelson says the biggest change has have a strong 360-degree integrated Entertainment Group S.A. de C.V., to come about in content delivery: “For marketing strategy. We hold the lead release Todobebé videos in Mexico. the past 50+ years, the parenting infor- position in the parenthood category Finally, in Guatemala, Guatevisión sig- mation came from magazines. What and marketing to moms. Our unique ned a renewal agreement with has changed in the past five years is the distribution method gives us direct Todobebé, to continue to air the TV need and requirement to provide access to women – moms — in docto- shows nationwide on a weekly basis. parents with information not only in- r’s offices. We also integrate with Todobebé media platforms include language (Spanish), but also in their Meredith online properties, events, television, website, events, print, rese- mediums of choice, which now include retail events and custom publishing.” arch, book and radio. With the 2008 TV, radio, digital, grass roots, products, Indeed, this past June, Meredith launch of the magazine it establishes a mobile, WAP, etc.,” says Nelson. consolidated all of the Hispanic Custom national print media vehicle. “Moms are moms and it does not mat- Publishing programs at Meredith Meanwhile, Steven Kantor of New ter if they are CEOs or taxi drivers— Integrated Marketing and American Parent en español says they are still when their babies are crying they want Baby to Hispanic Ventures under committed mainly to print: “We are to find the answer, now. They can’t industry veteran Chiqui Cartagena. Says focused on the print channel to the always wait to find the article in the Vega-Amaez, “Advertising expenditures Hispanic market at this time with magazine from two months ago – they in the direct marketing space continue plans to offer a Spanish language need to access it when and where it to grow every year and we hope to cap- option at Newparent.com in the futu- makes the most sense, so they use diffe- ture more of those dollars,” says Vega- re,” says Kantor. rent mediums at different times.” Amaez. “The results not only benefit 14

Health Media

Hispanic Health Advertising: Lots of promises but will they be realized?

he rationale for an increase in Hispanic health adverti- been stepping-up their web presences,” says Jose Villa CEO T sing is very strong. However, advertiser demand is not of California interactive agency firm Sensis. “They seem to quite there yet. One area of the Hispanic media be moving toward complete site translation, whereas before, industry where this is particularly clear is print advertising. many just had micro-sites in Spanish.” GlaxoSmithKline was the largest advertiser during the first Villa's firm was commissioned to conduct the study by nine months of 2007, according to Portada Ad-Tracking (see United Health Care, which launched UHC Latino late last table below). PhRMA advertisers invested more than $2 year. The company tracks online advertising activity with million in Hispanic newspapers. The figure is still very low Nielsen. “What we've found is that each company is very dif- compared to the billions invested in the general market. ferent in their approaches. There hasn't been a consistent PhRMA is one of the most underrepresented categories strategy from most of these companies. They'll make a big within Hispanic print media—though one with the highest change and then the site will stagnate, sit there, and all of a growth potential. Among pharmacy advertisers, the leaders are sudden start up again,” says Villa. Navarro, CVS pharmacy and Walgreen's. Villa says that in California, which is an enormous mar- Among the main obstacles to growth is that many ket for Hispanic healthcare initiatives, Kaiser Permanente PhRMA companies do not have a Spanish-language sales topped the list in terms of advertising investment. Most of force, and that advertising directors do not see newspapers as this spend went to TV and Radio, although it also ran some mass media. Furthermore, FDA regulations are stringent banner ads on local Univision websites, like Channel 34 in with regard to the industry's advertising. L.A. In California, Kaiser Permanente is the de facto choice for Hispanics seeking healthcare. This is due largely to the Drugs and Remedies Advertising company's model, which involves an integrated healthcare facility where all stripes of medical specialists are found in one enormous complex. This is a model that is familiar to 1.GlaxoSmithKline 5.Wyeth 10.Baxter many Latin Americans, as opposed to the common U.S. 2.Astrazeneca 6.Schering-Plough 11.Bayer model where different types of providers are located in 3.Merck 7.Mcneil 12.Vicks various locations in a given city. 4.Pfizer 8.Elly Lilly 13.Procter & Gamble Blue Shield/ Blue Cross Anthem has been working with 9.Abbott Impremedia, running print and online ads with La Opinión. Most HMO advertising takes place during open enrollment in No- NOTE: AJan 1-Oct. 15, 2007, National ROP Advertising vember, when employees typically sign up for medical coverage. SOURCE: Portada Ad-Tracking Of all the major HMO's, only UHC Latino and Blue Shield/ Blue Cross Anthem offer online provider search in Spanish. This HMOS INCREASINGLY TARGET HISPANIC MARKET function is cited by members as extremely important to deter- In the last year or so, many of the major HMOs have mine which doctors are in-plan and which ones speak Spanish.

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16 From Traffic to Leads

(continued from page 3) Behavioral Targeting & Geotargeting sis on ‘magic,’” says Allen, commen- Strengths Weaknesses ting on how many tend to exaggerate the capabilities of this technology. Behavioral Targeting Targets users based on past demon- Requires large volume of “BT means a broad range of things,” strated behavior. data to be effective. says Allen. Some BT models are ad-serving Behavioral-targeted ads may seem User behavior is not uniform. technologies that use multiple regres- more relevant to user. sion analysis of a large number of web- sites and web users to try to predict Geotargeting Delivers ads depending on the users IP, Targets only readers who what web users will do, based on their allowing for highly targeted delivery. read home-country papers. previous and current actions. Good at capturing recent Immigrants. Can be limited in scope. Other BT models use retargeting, Leverages user's affinity for the vehicle where, for example, users who have in which it appears. been on car company website in the last week are served ads by that com- pany to try to drive them back to the rein lies the opportunity. We have Services categories. Chances are that site. Admixture does not currently do technology that uses real time data (not these impressions are part of a ‘beha- the multiple-regression BT, but does just historical data as most BT compa- vioral network’ buy, and the buyers do retargeting. nies) to determine/predict the best ad and clients are not even aware that The reason his company does not to show. Over time, our real-time capa- their ad is being displayed in a Spanish- do multiple regression BT, says Allen, is bility gets smarter and more accurate.” language site. Some may argue that because most sites do not have the right some of these are explicit buys to reach technology to render it effective. Good Doubts... Latinos and that leaving all communi- multiple-regression BT requires a very Luis Cabrera, managing director of cations ‘as is’ has proven to be effective. large amount of data in order for the Bravo Uno-a-Uno, has a different take: All I have to say then is that they could predictions of the model to be accurate “Behavioral online advertising net- increase those efficacies dramatically by and useful. “The Hispanic web proper- works that include Spanish language developing targeted communications at “I would be skeptical of anybody else who says they have enough data to use behavioral targeting accurately...” ties that have both the technology and sites as part of the offering bring a very a fraction of the cost of their buy.” the reach for that kind of BT would be interesting perspective to our market. MeMedia’s Eric Frias says he a very short list, including probably A lot of homework should be done. If understands the ambiguity that only Yahoo! Telemundo and MSN you take a look at some sources, like surrounds behavioral targeting and says Latino. I would be skeptical of anybody Media Economics Group, that track the biggest challenge facing companies else who says they have enough data to online campaigns in the US Hispanic who specialize in BT is convincing do it accurately,” says Allen. market, you will see dramatic growth advertisers that it works and to remove Eric Frias, President of Multi- in different categories, but we need to the confusion the industry has created modal online advertising company be careful and determine what we will around what BT is and how it should MeMedia, which recently launched consider a US Hispanic online marke- or should not work. MeMedia Latino and specializes in BT, ting effort.” “Once they understand the funda- agrees that significant information is Cabrera asks himself: “Would an mentals of BT and run campaigns with necessary to successfully implement the English banner ad in a Spanish us they usually keep coming back technology. Language site be considered a Hispanic because we ultimately deliver the best “To effectively deliver behavioral effort? Don’t get me wrong, there are performance. In the Hispanic market, targeting, an extensive network must be some good and explicit efforts to reach the user’s generation and dominant in place. The challenge is to reach users Hispanics online in English, and I am language has been a challenge but with surfing the web that have not visited in favor of this approach, but I’m tal- BT it can solve many concerns an your property. To truly deliver beha- king about all these other banners out advertiser may have to reaching the vioral targeting you would need to be there that are not even trying to be right consumer.” located on the desktop (MeMedia’s appealing to the Hispanic Market, desktop platform). For MeMedia, the- especially in the Apparel and Financial

17 From Traffic to Leads

Geotargeting... The demographic information is culled very similar to the stock market appro- Another technology that has beco- from the sites themselves as well as ach. You have to diversify your portfo- me widely used in targeting U.S. registration-based websites that offer lio to reap wider benefit,” says Almeida. Hispanics is geotargeting—or serving a data on user age and income. user a given ad based on that user’s Keyword-based, Intuitive leads... location. This approach can be highly Geotargeting by Ethnicity One unorthodox example of lead valuable when trying to target users in Miami-based U.S. Media generation is put forth by the a specific geographic location. Consulting group uses geotargeting to Latinos.us group of websites. The stra- As Alicia Morga, CEO of online ad target particular Latin American ethnic tegy here is near complete ownership of Consorte Media notes, “Once we’ve groups. As ad sales director Bruno Spanish-language category domain identified the areas that make more Almeida told Portada: “One of our names. “I’d say that right now, we own “Our trafficking team is able to place ads so only visitors from the specific geography see the ad and have the ability to respond to it.”

sense for the specific advertising cam- most important products is the ability 90%-95% of all the Spanish category paign, our trafficking team is able to to offer segmentation of ethnic group. keywords in the .us domain and corres- place ads so only visitors from the speci- Currently we can reach over 4 million ponding toll-free vanity numbers, says fic geography see the ad and have the unique users from 20 different ethnici- Latinos.us’ Geoffrey Gonzales. “For ability to respond to the ad. This level ties, including US Spanish, US example, we own Hoteles.us and 1- of targeting helps us deliver exactly who , US Puerto Ricans and many 888-hoteles.” The key, Gonzales the advertiser is seeking. A great exam- others. Advertisers such as Toyota, explains is to integrate the online and ple of this targeting is the recruitment Infinity, American Airlines, offline worlds for Hispanics consumers. campaign we did for Best Buy. The Continental, Delta, Wal-Mart, Sprint, “In terms of lead generation, our client was looking to recruit a diverse Nextel, AT&T, Western Union, model is self perpetuating. If you are workforce with specific technical skills Disney and many others have invested looking for insurance and go to segu- in narrow geographic regions. We used with us in this product. ros.com, you’ll see links, or leads, to our geotargeting to deliver ads in areas “At least 90 percent of agencies that other websites, such as Hipotecas.us— where new stores were opening, in buy U.S. Hispanic online media incor- for mortgages—or Prestamos.us—for order to provide qualified applicants. porate geotargeting in their buy,” says loans. Again, these websites have corres- The campaign has been a great success.” Almeida. “And it’s not necessarily ponding toll free numbers, so it’s very The strategy here is near complete ownership of Spanish-language category domain names.

Another version of geotargeting is because it is pre-established in their much a process of conditioning whe- Geo-demographical targeting. Margot media-buying process. It’s really because reby the Hispanic consumer realizes Bradley, COO of the recently- we are promoting it, telling them it is that they don’t even need to look up launched Hola Networks explains, important to reach recent immigrants, the number or website they are looking “Geo-Dem targeting is simply an over- and most buy. Some have gotten great for. They simply type or dial in what it lay of geographic targeting and demo- results and keep buying it, some don’t is they are looking for—and that brings graphic targeting. For example, a cer- get great results and so they stop.” them to us,” says Gonzales. tain client wants to reach a demo of Almeida says that it’s impossible to There are many ways to generate Men 18-39 with HHI of $50K+. But say what percentage of their clients’ ad- leads. Whether it is by trying to get they only want to reach them in Los budgets go specifically to geotargeting, inside the consumer’s head and deliver Angeles, Denver and Houston. With because the agencies would never dis- the appropriate ad at the appropriate Geo-Dem targeting, we can provide the close that information. “I can tell you time, meeting the consumer where you client with that precise target. Hola’s that Toyota, Sprint Nextel and AT&T know he’s going to be, offering him geotargeting is done with Quova, all invested six-digit numbers in our some incentive, or trying to circumvent which provides geographical informa- company this year, and that each of the whole process by becoming a one- tion on the internet. them has tripled their investment with stop shop for all he is looking for, the Quova geo-targets messaging by zip us year over year.” Almeida says it’s a end-game is the same: Click... code, area code, DMA, state, city, etc. way to diversify their investment. “It is 18

Reaching the Masses Online

Media Behemoths Battle Online Pure-plays for Hispanic Eyeballs

ispanic portals reach consu- Gold Cup 2007, our travel channel library of Latin Music content. The mers in an interactive web bilingual re-launch this summer and selection ranges from old Cuban bala- “H environment and are able to some music specials as well. We expect das to the latest in Latin Alternative target consumers much more directly that there will be even more English con- Rock and .” Marroquin based on behavior and demographic tent added to our site in 2008,” she adds. notes that Batanga has millions of peo- information,” says Batanga’s chief mar- With over 5 million registered ple that have registered with one of keting officer, Rick Marroquin. While users, Univision.com is a huge player in their many forums or to vote on music it is true that many portals have over- the Hispanic portal space. It has 24 on their site. “In addition, Batanga has lapping content, they also have niche sales people devoted exclusively to onli- nearly 200,000 active users registered specialties that advertisers can pinpoint ne sales. Ninety percent of advertising on our ‘My Batanga’ social to reach their targets. Some focus solely is national, with just 10% local. network. We are registering new users on the U.S. Hispanic market, whereas Portada estimates that, with approxi- at a rate of over 1,000 per day,” says others strive for a global presence. Most mately $60 million per year in reve- Marroquin. “We have approximately portals target the younger crowd, while nues, it is the largest player in the 3.4 million monthly users.” some seek to be all things to all people. Hispanic online media market. It Also going after the U.S. Hispanic mostly targets Spanish-dominant music enthusiast is upstart Cyloop, > Who do you love? Target Audiences Hispanics, aged 18-34. While which targets US Hispanics aged 18- Terra Networks is one of the big- Univision Online’s original content is 34. Until its recent re-launch, Cyloop gest Hispanic portals around and serves in Spanish, a number of its most popu- went by the name ElHood.com. both the U.S. and Latin American mar- lar functions such as chat, email and President Demian Bellumio explains, kets. Terra has several editions of its social networking are available in “The name change was done to provide “What we are doing is creating content for each region that we attack.”

websites, one for each country in which Spanish and English. Users also use us with the ability to have a unified it is present. Michelle Azan, Terra’s VP both languages on the message boards global platform. We believe that what of sales, says that the portal’s target and social networking pages. “We rea- speaks to the audience is really the con- demographic in the U.S., is the 18-49 ched new highs this year with over 15 tent, and what we are doing is creating year-old bilingual, Spanish-preferred million average monthly unique brow- content for each region that we are Latino, with a higher HHI and educa- sers,” says Univision Online president attacking. For example, in Spain, the tion level than the overall Hispanic and COO Javier Saralegui. “We also site is being managed by our Madrid population. Regarding its language solidified our position once again as the team, and highlights content that is mix, Azan notes, “At our launch in late largest Spanish-language website in the more attractive for Spanish users.” 1999, through late 2001, Terra was a U.S. Our achievements are due in part Bellumio says that the name Cyloop fully bilingual site, with distinct to the launch of our groundbreaking allows them to establish a global foot- Spanish and English content on what video portal and social networking ser- print without having to create different was, essentially, two sites. Due to diffi- vice, “Mi Página.” brands for each market. Even still, culty in monetizing the English site, we “Batanga’s target demographic is Bellumio maintains, the company’s had to shut it down,” says Azan. “Since Hispanic young adult music fans,” says principal market in the States is U.S. late 2005, Terra has again tested its chief marketing officer Rick Hispanic. “Who knows if in the future English content with specials such as Marroquin. “We focus on providing we also extend to the general market World Cup 2006, Copa America 2007, Hispanics the most comprehensive here. If we do, we will probably do it

20 with a strong distribution partner.” PORTAL Monthly Unique Content Advertisers StarMedia’s audience—which is Visitors male and female, mainly 16-34 years old—lies largely outside of the U.S. Of Yahoo! Telemundo 13.1 Million News/Entertainment Home Depot, Pepsi, Verizon its 25.5 million total unique users that Terra U.S. News/Entertainment visit its network of sites on a monthly 45 Million Global Wal-Mart, Ford, Nikon, Army basis, just 15% visit its U.S. site. The Univision Online 15 Million News/Entertainment Sears, Verizon, Target, State bulk of its visitors—22%—hail from Farm Mexico. Fifteen percent come from Peru, 10% from Argentina, 10% from MSN Latino 7 Million News/Entertainment Netflix, Ford, Chevy Malibu Colombia, 8% from Venezuela, and Batanga 3.4 Million Music/Entertainment Ford, Royal Caribbean, Ciroc the remainder from various Central and Vodka South American countries. MSN Latino casts a wide net when Cyloop N/A Music/Artist-generated Ford Sync, Focus, AT&T appealing to users to use its site and AOL Latino News/Entertainment tries to accommodate all tastes and 8 Million Chevy Malibu, Sony, Ford Sync ages, regardless of gender. “The site tar- gets U.S. Hispanics who choose to StarMedia 3.8 Million News/Entertainment Sony Ericsson, Navy, Lexus, communicate and consume media onli- Sprint ne in Spanish,” says central region account executive Chris Emme. The site receives about 7 million unique marketplace. Even so, there is certainly AOL Latino offers a wide variety of monthly visitors. some overlap with regard to content content including news, sports, cele- As an offshoot of the ubiquitous offerings and features. brity features, entertainment, beauty general market internet portal America Batanga is highly-focused on its and fashion, blogs, games, music inclu- Online, AOL Latino follows a similar music content, and claims to have the ding over 200 radio stations, as well as model of catering to the broadest possi- largest catalog of Latin music of any free email and instant messaging, traf- ble audience. As such, it does not target other portal. “The backbone of Batanga fic, lottery and weather updates. certain age groups or demographics. is the most comprehensive library of Univision offers original and exclu- Yahoo! Telemundo is a giant Latin Music content. Batanga streams sive entertainment, news, sports, servi- Hispanic portal, with approximately over 200 MM songs and videos per ces and shopping channels geared 13.1 million unique visitors per month. month,” says Marroquin. toward the interests of U.S. Hispanics. The company targets U.S. Hispanics Competitors like the newborn It features classifieds, weather reports, with both Spanish-language and Cyloop seek to establish a technologi- online radio and a host of other servi- English-language content. cal edge on some of the more establis- ces. It also features international news hed properties. “We really focus on content. > Content, Content, Content... being a top-notch music content site StarMedia and Terra rely on a wide What content do Hispanic portal not just in the Hispanic market, but in range of content to draw traffic to their surfers like to consume? The range of the entire online space,” says Bellumio. sites. StarMedia’s VP of operations content is as varied as that consumed He points out that all music on Juan José Núñez notes this when he by the general market. It is this range Cyloop is on-demand: “You can make describes his site’s content as “Generic that facilitates the existence of multiple a playlist with your favorite artist’s lifestyle day-to-day content for men Latino portals, each one seeking to entire music catalog for free and play it and women of all ages.” carve out its very own niche in the whenever you choose.”

21 Reaching the Masses Online

Terra’s Michelle Azan says, “Music, genre, particular show or popularity. Sports, News are key for our audience. Batanga’s Rick Marroquin says, However, other very popular content “The social network offers a full suite verticals include Entertainment, Autos, of interactive tools, allowing consumers Health, and Women content. How to upload user-generated our users consume that content has content. There is a significant number changed to be very centered on video of products around music that we offer content on Terra TV. consumers to enjoy their favorite types Chris Emme, central region of Latin music, like online radio and account executive of MSN Latino, streaming video.” says, “Our network is comprised of our StarMedia is also offering strea- communication services which is our ming video and online radio. “We in-language Hotmail and Instant have a range of other free services Messenger service and our information including: chat rooms, E-mail, forums, services which carry news, auto con- personal page hosting and our soon to tent, finance, sports, astrology, wea- be launched user content generation ther, games and much more provided and social networking tools,” says Juan by some of the industry’s best branded Jose Núñez, StarMedia’s vice president names such as Reuters, Fox Sports en of operations. Español, Billboard Latin Music, For MSN Latino, online games and Astrocentro, Latina Magazine, video are its biggest interactive outlets. AutoMundo and many, many more “However,” notes Emme, “our com- high quality content providers.” munication services like Messenger,

Those sites that don't already have social networking components are developing them. Music content and streaming video are becoming crucial to this development.

> Interactivity... webcam, and Windows Live Hotmail One thing that all of these sites are some of the best in-language servi- have in common is that they’re pus- ces in the market.” hing toward greater interactivity, to Games and video also figure hea- make their sites “stickier,” and keep vily into Yahoo Telemundo’s site. As users engaging with content and adver- Adam Chandler, U.S. director of sales tising for longer periods of time. A for Yahoo! Telemundo puts it, “The common thread is that those sites that site features video content where users don’t already have social networking can upload and vote on their favorites; components are developing them. Music voting in several areas such as music, content and streaming video are beco- where you can vote on your favorite ming imperative in this development. music video; polls where you can share Univision Online made two major opinions in several areas, fantasy strides in the interactivity department games where you can interact/compete this year with its launch of “Mi with people from all over the world Pagina,” a social networking forum, who share your same passion; Flickr, and its launch of a video portal. Mi which allows users to share their pho- Pagina features all of the standard tos with a worldwide community and social networking tools, like also join special groups by interest, video/photo sharing, blog-hosting, etc. themes, etc. We also have a section Its video portal is more impressive, called “Answers (Respuestas),” which with Univision’s entire catalog of allows users to ask and answer ques- shows available, and searchable by (continued on page 24)

22

Reaching the Masses Online

FOCUS ON: BUYING HISPANIC ONLINE MEDIA

A Q&A with Luis Cabrera, managing director of Bravo Uno-a-Uno. Cabrera manages all Interactive Components of Bravo's brands.

Portada: How much growth year on year do you see in the And finally, a more optimistic, and still conservative, way to Hispanic digital media market per category? look at this is by determining that investment will keep a steady growth pace of 30 something percent. This throws near $175 Luis Cabrera: There are several ways to look at this, one millions in 2007 and near $230 million in 2008. good way to forecast these numbers is first to foretell the total US Hispanic online advertising spending. Portada: What do you think is the best approach to target One way to figure out this magic number is by using the pro- Hispanics online? portion between US Hispanic online advertising to overall US online advertising, which is usually less than 1%. If we follow Luis Cabrera: In order to understand and predict what's that trajectory, we can expect that US online advertising closed next in terms of US Hispanic online advertising, we need to first 2007 at $165 million and 2008 will hit the $200 million mark. These understand and analyze what the clients are doing to have an numbers are based on eMarketer, March 2006, TNS, Hispan online dialogue with this consumer. The norm is that before a Telligence and Ad Age's Hispanic Fact Pack. company starts advertising online to US Hispanics, they make Another way to look at this is by finding out the percentage sure they have a relevant offering by either: that the US Hispanic online advertising has represented from the total US Hispanic advertising throughout the previous years a. Fully or partially translating their websites and forecasting the growth trends for the upcoming years. By b. Creating a mini-site to promote a specific product of their extrapolating past growth rates conservatively, we can expect portfolio in a relevant way. that 2007 will close at $150 million and in 2008 we will see some- c. Partnering with a publisher and creating sweepstakes, thing like $180 million in investing. homepage takeovers and/or splash pages in their portals.

(continued from page 22) opposed to user generated content. Univision Online’s President Javier “We provide artists with a global plat- Saralegui says that what distinguishes tions (in many languages), tapping into form to market themselves. We are his site from others is the strength of global knowledge base.” currently in the U.S. and Spain and are the brand: “Univision Online is an Cyloop offers online photo albums, quickly expanding in Latin America extension of Univision, the leading and blogging, and the dynamic music play- and beyond,” says Bellumio. “Another most powerful brand in Spanish-lan- list creation outlined earlier, whereby thing that differentiates us is that we guage media. We provide advertisers one can create music playlists on the fly. are purely music focused. We don’t do with exclusive content via a three-scre- “Some of our interactive features sports or have sexy Latinas on top of en solution across our industry leading include user generated sections like cars or anything like that. Cyloop also TV, PC and Wireless businesses. Cross blogs, photo blogs, photo sharing, share powers partner sites, like platform tie-ins include our most with a friend features in music and Warnermusiclatina.com, providing users popular awards shows such as “Premio Terra TV, RSS, and Yo Reporto citizen with a unique login to the best music Lo Nuestro,” “” and journalism. Coming very soon, we have sites,” says Bellumio. Indeed, a big part “Latin GRAMMY,” as well as custom social networking and personal pages,” of Cyloop’s business model involves initiatives specific to a particular client.” says Terra’s Michelle Azan. partnering with other companies and Adam Chandler says, “Through our web properties. In November the com- partnership with Telemundo, we are > Difference is in the Details... pany partnered with Terra in Spain to able to offer original video program- While many of the portals offer power Terra’s music channel there. ming. The site also features Yahoo! similar content and interactive features, Terra’s Michelle Azan says that Telemundo Video which not only fea- they also seek to differentiate themsel- what differentiates Terra from other tures extensive video content (with ves from the competition to appeal to sites is that, “Terra offers high quality, millions of streams per month) but also visitors in unique ways that will have in-depth content. Our focus is on enga- allows users to upload their own con- them coming back frequently, and sta- ging users with valuable content, rather tent. We also feature many ying for longer periods. than being a service platform offering Community elements which are mas- Cyloop’s President Demian instant messaging, email, etc. We pro- hed into various areas throughout our Bellumio says that the biggest differen- vide a relevant, go-to source for a wide properties – e.g. Yahoo! Telemundo ce between his site and others is that it range of topics of interest to the US features artist-generated content as Hispanic consumer.” (continued on page 26) 24

Reaching the Masses Online

LOCAL ADVERTISING: A LEARNING CURVE FOR SMALL BUSINESS

Online media, with its lead generation However, we have not seen retailers tes and that many local business owners and interactive characteristics, should be using geo-/local targeting as much as are not familiar with the online vehicle. In a particularly good vehicle for local they could. However, local and regional addition, often Univision radio and TV advertisers. In the general market local auto dealerships are using this local sales representative don't know or don't online advertising accounts for an $8.5 approach more.” have the right incentives to sell online billion slice of annual business, dwarfing Univision, the publisher of Univision. advertising. Impremedia's launch of its the overall Hispanic online advertising com, owns hundreds of local radio and new unit Impremedia Digital later this spent and, even more so, the local TV stations. However, only 10% of winter, should give a substantial push to Hispanic online ad-spend. As Terra's Univision.com's advertising is local, says the Hispanic local online advertising Michelle Azan notes “there are many Univision.com CEO Javier Saralegui, market. On average, up to 70% of a news- opportunities for local retail stores to Among the main challenges to sell local paper's business originates in local take advantage of the excellent targeting online advertising he cites that few store advertising. tools that interactive media affords. owners targeting Hispanics have websi-

(continued from page 24) product integration in original video content from our partners that can be series, cross-platform initiatives and sponsored during certain events such as Noticias features Flickr where users can other creative programs such as custom the Billboard Latin Music Awards, the upload and share their own images rela- mini-sites. Copa Libertadores tournament and ted to the news topic. “In addition to already standard Hispanic History Month to name a Unlike Terra, StarMedia emphasi- display banners, StarMedia offers a few,” says Chris Emme. “We also have zes the range of services it offers its variety of rich media creatives, videos dynamic options available on our users. It offers email and chat with pre-rolls, custom sponsorships, special Messenger and Windows Live Hotmail Latinmail and Latinchat, respectively, packaging of content, advertorials, services which can allow an advertiser and also a venue where users can buy turn-key promotion programs like swe- email marketing options and Tab and sell used cars. epstakes with videos and photos,” says Sponsorships. As well we are growing Rick Marroquin says that what sets Núñez. The company also offers adver- out our video options with better and Batanga apart is that it is the only inde- tisers what it calls “Roadblocks” and better content options for Men, pendent site of any of the major sites “Takeovers,” whereby StarMedia inte- Women, Children, and Teens). targeting Latinos. grates the images, colors and brand of Yahoo! Telemundo launched an the advertisers into the design of the interesting campaign last summer for > Advertising: The Lifeline portal. Núñez notes that these options GMC, which consisted of a six week, While the content and features of a go beyond what is usually offered in made-for-broadband home improve- site are clearly paramount in importan- the market, and are great for branding. ment series where families had their ce to users, it is how those elements can “Our marketing solutions team has houses made-over. There was a lot of be leveraged to deliver ads that pique extensive production capabilities that interactive content created by the cam- advertiser interest. As a result, Hispanic deliver effective marketing strategies paign, including behind the scenes out- portals are continuously searching for and creative solutions to advertisers,” takes, before/after photo galleries, polls new ways to offer creative ad-delivery says Javier Saralegui. A recent example related to the series, etc. options that will not infringe on the is a campaign that Home Depot ran on user experience. the site. When the user arrives on the > En Fin... For Terra, the use of technology is landing page, he sees a wrench walking With all of these players in the central to their advertising options: across the homepage and jumping into same space, perhaps the biggest challen- “We use behavioral targeting, DART a Home Depot banner ad. Moments ge is in distinguishing one’s site from Adapt for best optimization, DART ad later, a bolt follows suit and does the the competition. This is why sites like serving filters for domain targeting, like same thing. Cyloop and Batanga try to establish .edu targeting as well as very specific Cyloop allows advertisers to create advanced music programming. On a geotargeting. We also offer reverse tar- custom communities around their pro- broad scale, they simply do not have geting for a client who wants to reach. ducts that incorporate widgets and the numbers to compete with a Colombian-Americans, as they surf recording artists into their campaigns. Univision or Yahoo! Telemundo. But home country content in Terra One of MSN Latino’s fortes is in con- by focusing on one aspect—music— Colombia,” says Azan. Terra also offers tent sponsorship: “We have exclusive they are able to establish themselves.

26 Retail Advertising

Big Bucks Retail: Retailers Reach Hispanics through Complementary Media Vehicles

he Hispanic customer base is Conference, Best Buy—one of the lea- of online retail advertising are, accor- T extremely important for large ding Hispanic FSI advertisers—is acti- ding to Azan, photo processing and retail companies. “Reaching the vely pursuing Hispanic patronage, and general big-box retailers. Hispanic market will continue to be a has taken a number of steps to engage According to Vince Andaloro, CEO high priority for most retailers in 2008. Hispanic consumers. These steps inclu- of Latin Pak, “now, there are clearly With the decline of newspaper circula- de: hiring Spanish-speaking staff, more budgets as well as additional tion, the fragmentation of the TV vie- implementing in-store Spanish-langua- advertisers; however there is still a lack wing audience and the growth of the ge signage, launching Bestbuy.com/ of consistency, especially when the eco- internet and social networks, figuring Español in late September, 2007 and nomy goes down and Hispanics adver- out how to reach the right consumer is working with Avenue A/Razorfish to tising budgets get pulled.” going to be the most difficult thing to create custom messaging for their While broadcast media gets the do as we move into the new media Hispanic campaigns: “We’re interested majority of ad dollars, it may be preci- age,” says Rachel Stayduhar, media in taking it to a deeper level than just sely in the Hispanic newspaper and analysis supervisor of Los Angeles-based banner advertising. We are more inte- magazine spaces where more media American Media Communications rested in developing media partnerships buys should be happening. At least this Group. Stayduhar buys pre-prints for and exploring content creation,” said is what John Trainor, CEO of Papel major accounts including PETCO, Lawrence. Media, thinks: “When you look at Longs Drug Stores, Michaels, JC some of the largest advertisers in the Penney and Aaron Bros. Challenges: Diverse Audience... overall newspaper market and you National broadcast media is a very One of the challenges and opportu- compute their participation in important vehicle for big-box retailers. nities for Hispanic retail advertising lies Hispanic versus the so-called general However, with the advent of the local precisely in the diversity of the Hispanic market, you will see that the vast majo- Internet and other local media, the audience. According to Consorte rity of the large newspaper players allo- buying spectrum is expanding. As Media’s Alicia Morga, “simply put, cate about 1% or less of their total Tyrone Ried, senior director multicul- Hispanic retail online advertising needs budgets to Hispanic. I strongly believe tural marketing at Wal-Mart, recently to be more targeted, because the that the number should be closer to told Portada, “Wal-Mart is going more audience is so diverse. We’ve found that 8% on average, particularly when into local buys, particularly radio, print advertisers who try a one-size-fits-all Hispanics “over-index” in a number of and geo-targeted online advertising.” approach with the Hispanic market are categories such as telecommunications Last holiday season, Wal-Mart ran a disappointed with the results. U.S. and beauty items, to name a few.” campaign on Terra Networks to pro- Hispanics want to see personalized, tar- mote in-store sales. According to geted marketing messages tailored to More zoning, please... Michele Azan, vice president of sales of their unique needs, language and cultu- According to Trainor, part of the Terra, the focal point of the campaigns re; from a 20-something Mexican- reason for the allocated number being was the sponsorship of a holiday gift American interested in cars to a so low has to do with the fact that, guide with featured products. Kena California homebuyer who prefers to until recently, Hispanic newspapers magazine (600,000, bimonthly, shop for financial services in Spanish.” have not taken circulation audits Spanish) is also a vehicle for retailers seriously, nor have they had sufficient like Wal-Mart and Sears. Enough Cash to Go Around? zoning capabilities.” Alicia Morga, CEO of online ad Terra’s Michele Azan notes that the Asked whether Hispanic newspapers network Consorte Media, notes that retailers’ online Hispanic budget alloca- have been making progress in impro- Best Buy’s recent move to translate its tion pales in comparison to their gene- ving their zoning, Rachel Stayduhar, e-commerce site to Spanish tells us that ral market online expenditures: “The media analysis supervisor of Los retailers in general are starting to see ‘testing’ that has been done in the Angeles-based American Media the value of reaching Hispanics online. Hispanic online ad space does not Communications Group, answers: “No, As Best Buy’s senior manager of allow for sophisticated tracking, seg- retailers are demanding better targeting strategy and Analytics Marsha mentation and e-commerce opportuni- all the time, especially the mid-sized Lawrence pointed out in her keynote ties. To date, they still have very basic clients who don’t have the budget for address at Portada’s First Annual programs - display ads and sponsors- full-run buys, but the Hispanic newspa- Hispanic Digital and Print Media hips.” The most promising categories

27 Retail Advertising

FOCUS ON: NEWSPAPER BUYING BY LARGE RETAILERS

A Q&A with Craig Desens, chief development officer of Newspaper Services of America, whose Hispanic Newspaper buying is growing 40% annually.

Portada: Can you please describe the specifics of the NSA - Portada: How much of your Hispanic print advertising goes Papel Media alliance? into direct mail (% wise)? Craig Desens: It's an opportunity to bring value to our clients Craig Desens: We don't know that number. However, we do and help our clients to understand the Hispanic market better. direct mail. The great majority of our business is in FSIs. At the same time, Papel deals with many agencies and is some- times asked to deliver recommendations in the general market Portada: I understand that more than half of the general market and NSA Media can help with that. print advertising volume goes into FSIs, in Hispanic that pro- portion is lower. What are the main challenges and opportuni- Portada: Is this an exclusive alliance? Is Papel Media the only ties for Hispanic FSI placement? Hispanic print media firm you will be working when placing Craig Desens: The two main challenges we face are that most into Hispanic newspapers? of our advertisers want to be in Sunday newspaper through Craig Desens: No. The alliance is non-exclusive. News- paper pre-print and the ability to target, not necessarily through full Services of America will still will be dealing with Hispanic run. newspapers directly. Portada: Does Newspaper Services of America plan to expand into Internet advertising? Portada: What has been the volume of your Hispanic print Craig Desens: We have a relationship with Centro, a company media buys in 2007 and 2006? that places ads on media websites, primarily newspaper web- Craig Desens: About 1% of NSA's total annual buy, which is 1.6$ sites, our clients that might be interested in placing ads on billion. The Hispanic business has been growing at a 40% annu- newspaper websites. We work with them. If there are Hispanic al rate over the last two years. So it is growing as a percentage newspapers that have websites, Centro will have those in their of overall business. database.

Portada: As a result of the Papel Media alliance, how much do Portada: What accounts does NSA Media buy Hispanic print you see that investment growing? for? Craig Desens: We think that there is an opportunity for clients Craig Desens: Sears, Wal-Mart, Kmart, Home Depot. Those are to look more in-depth into the Hispanic print market. the companies that spend the highest dollar amount. We also recently got the Wal-Mart newspaper business.

pers—with a few exceptions—are still Evaluation Process: Anna Hoy, ad-sales director of requesting full-run distribution; that’s Impacto USA (250,000, weekly, why in markets like LA some advertisers > Proximity (and size) of Hispanic Spanish), notes that, “FSI advertising use ADVO or the Pennysaver to reach readership to Best Buy location in Impacto is very targeted, and there is the Hispanic consumer: they can target > Household Penetration a tremendous opportunity to reach to the sub-zip level.” > Language spoken at home Hispanics in a cost-effective manor. Papel Media’s Trainor believes that > Paid Circulation (although this is Impacto reaches more than 45% of the cultural gap between “Corporate not mandatory for consideration) Hispanic homes in the top 49 zip codes America” and Hispanic publishers has > Home Delivery (although this, in Los Angeles County through preci- shrunk significantly. Technology has too, is not mandatory for consideration) sion distribution, targeted block groups also played a key role in the transfor- > Presence of other prominent with 80% or greater Hispanic house- mation of Hispanic newspapers. advertisers to “be in the right adverti- holds, and $45,000 or greater average Content has been commoditized; com- sing company” household income.” puter software has transformed the way > Clearly demonstrated ROI publishers paginate, write, edit and go Direct Mail: Tried and True to press, making some small players as Home-delivered newspapers (e.g. Good old-fashioned direct mail is efficient as large ones.” New York Daily News’ Hora Hispana, still one of the main businesses in the Many retailers have strict guidelines Impremedia’s Contigo Network and U.S. advertising market. One of the that help them determine where to Los Angeles’ Impacto USA) tend to be main providers of solo mail in the place their ads: The following are com- good vehicles for retailers, who often Hispanic market is LatinPak. Vince ponents of Best Buy’s Hispanic Print place FSIs in them. Andaloro, LatinPak’s CEO, notes that

28 Retail Advertising clearly solo mail is more targeted more Lots of vehicles to use visible and more flexible. Solo direct mail has grown more versus coop mail MEDIA TYPE Average Gross Profit Advantage Disadvantage which clearly does not penetrate or CPM Margin make the consumer react as well.” Although the response rates tend to Solo Mail $200-$300 60% Very targeted; High response Expensive; Few lists be high, solo mail can be expensive. Co-Op Mail $40-$50 38%-40% Affordable Lower response than solo mail Dub Doyal, CEO of San Antonio- FSI $39 20% Favorable price-points Waste of newspaper; based ADS Media notes that, “Solo Not zoning-capable mail is an expensive proposition and ROP (National $43 20% Embedded in Editorial more and more marketers are using NP & Magazines) Environment door-hangers to replace this media. Online Banner $8-$30 30% Easy to track advertising, Spanish-dominant Solo mail or solo door-hangers have the Interactive, Branding and Hispanics may not be direct response component, online advantage of not competing with other Geotargeting, Behavioral offers. Co-op is less expensive, but still Online Pre-Roll $18-$25 30% Very targeted Audience Ads sometimes per- effective if the right target is achieved. ceived as invasive Solo mail is still prevalent but we are Online Audio Up to $40 30% Very targeted Audience Ads sometimes per- Insertions starting to see a move up in co-op ceived as invasive usage. The advantage of the co-op bag Door-hanger $200 60% Targets only block groups Relatively expensive program is the flexibility on size and TV National $40-$50 25%-35% Mass vehicle cheap price weight, which is not penalized like pos- Radio National $40-$50 25%35% Mass vehicle cheap price Sometimes not segmented enough tal, and also from a product-sampling Outdoor standpoint, which can not be done cost $5 25% Inexpensive, Strong branding Responsive effectively through direct mail.” SOURCE: Portada Door-hangers, a Relative Newcomer As many Hispanics tend to live in high-rises (particularly in large cities) delivery of mail and/or newspapers to the mailbox is not always efficient in reaching them. That is where door- GoingtomoreDallas/FortWorthhomes, hangers come in. Doyal says that by far, than any other publication! “HEB Supermarkets implemented a door hanger campaign in their print Nearly80%ofreadersuseLaEstrellaEnCasa media mix for an 8 month period. as a source for purchasing decisions. These included newspaper ROP, news- paper TMC, direct mail co-op and solo La Estrella En Casa, the Dallas/Fort Worth/Arlington product that brings your message directly to the home of Hispanic families each week, has been verified as direct mail. The advantage of the door an overwhelming choice by readers in this market, according to the Certified hanger campaign over the other media Audit of Circulations, Inc. (CAC). can be attributed to targeting to only block groups that have high density Of La Estrella En Casa readers, 77.4% Hispanic households cutting out the frequently purchase products waste of mass saturation of entire zips or services from advertising in this or carrier routes. As opposed to other publication. media it is less pervasive and more visi- ble. In HEB Marketing campaigns the La Estrella En Casa, launched in May of 2007, reaches the 7th largest Hispanic door-hangers have become a consistent market with a million adults of Hispanic or Latino origin. Each weekend, a fully staple and replaced some of their tradi- verified distribution of approximately 100,000 copies are delivered by carrier, tional media.” directly to households within zip code and postal routes that have been defined by the US Census to have a high-density of Hispanic households. Latinpak also offers a door-hanger product. Vince Andaloro, president and CEO of Latinpak, notes that a To advertise, please call 817-390-7368 Banco Popular door-hanger using a scratch-off offer to pull in consumers

Source: Certified Audit of Circulations, Inc., July 25, 2007.

29 Retail Advertising

to its branch offices, was very successful. an increase of over 500% when we added campaign for Wal-Mart It executed a In addition, he stated that a McDonald’s ROP and Events to their FSI strategy. nationwide sampling/demo program in door-hanger offering weekly discounts LatinPak's Vince Candoloro notes 250 Wal-Mart stores with a high inci- on food products, with a unique coupon that, “Rates for DM campaigns average dence of Hispanics. Celebrando! for each week lasting several weeks, pro- 1% to 2 % often. Latin-Pak campaigns “Celebrating” featured a custom-desig- duced great results. for Hispanic Households tend to trend ned booth with a bilingual signage, higher. When the clients use direct sponsor product displays and was hos- Looking for an Adequate Mix mail and follow up with an email ted by a bilingual ambassador who In what way do different media types account, the response seems to be engaged shoppers and enticed them to enhance a retailers advertising message? about 0.5% to 1% stronger. Basically, purchase sponsors products. The According to Papel Media’s John campaigns can increase their results ¡Celebrando! in-book promotional spre- Trainor a combination we have seen 25% to 50% by utilizing dual compo- ad ran in the July 2007 issue (on-sale generating successful results is the strate- nents for a DM campaign.” June 2 – July 1, 2007) and the online gic mix of Free Standing Inserts with People en español (500,000, promotion featured on PeopleEnEspañol Event Marketing, ROP and Online. For monthly, Spanish) last year integrated .com’s Concursos y Eventos promotional example, one of our clients recently saw different media types to implement a page from June 1st to June 16th.

MARKET INTELLIGENCE: MORE THAN HALF OF FSI'S ARE IN ENGLISH

Of the 1,983 National Preprints (FSIs) inserted in English prevails... Hispanic newspapers between January 1 and October 15, 2007, 1001 (50.48%) were in English, according to LANGUAGE English Spanish Bilingual Total Portada Ad-Tracking. Approximately 770 (38.68%) were in Spanish, while 215 (10.14%) were bilingual. Number of 1001 767 215 1983 Insertions The high proportion of English-language FSIs is partly a Percentage 50.48% 38.68% 10.84% reflection of the fact that many advertisers place their general market English-language preprints into Hispanic SOURCE: Portada Ad-Tracking newspapers. While general market insertion campaigns can be in the tens of millions, Hispanic campaigns tend ...and Sears is the most frequent Advertiser to be lower. Because of the lower run, advertisers are hesitant to cover the printing costs associated with prin- COMPANY English Spanish Bilingual Total ting a FSI that exclusively targets Hispanics. Sears 221 0 0 221 Response to Spanish and bilingual FSIs can be higher. News America 156 28 11 195 However, FSIs generally communicate price points Home Depot 41 147 0 188 Publix 1 124 26 151 which are clearly understandable, regardless of the fact Best Buy 62 81 0 143 that the ad may use English or Spanish words. Valassis 16 77 24 117 Target 113 0 0 113 Even so, many advertisers that have a broader approach Pepboys Auto 9 66 0 75 towards the Hispanic market produce Spanish and Wal-Mart 3 6 62 71 Ashley Furniture 68 0 0 68 Bilingual FSIs. For example, Home Depot has 10 different Optimum 0 24 23 47 Spanish-language FSIs targeting Hispanics. Kmart 20 25 0 45 Rooms To Go 17 24 0 41 Lowe´S 1 33 0 34 Compusa 30 0 0 30 Mervyn´s 28 1 0 29 For absolute dollar levels as well as 2007 FSI CVS/Phrma Cy 8 0 20 28 activity and year-over-year growth comparisons, Comcast 0 27 0 27 call Annette Fielman at (516) 396-0179 or e-mail O´Reilly 23 0 3 26 [email protected]. SOURCE: Portada Ad-Tracking, January 1 - October 15, 2007

30 Texas Blurred Borders: The Lone Star State’s Media Market

hhh, Texas. While for many the A Lone Star State conjures images of surly cowboys and sawdust floors, the present day reality is far- removed from the mythology of the sprawling state. With a population that is over 35% Hispanic—more than double the national average—Texas is a place where the Hispanic media mar- ket and the general market overlap. In some cities, the Hispanic market is the general market: El Paso, for instance is 81% Latino, as is McAllen. The Hispanic population is also becoming increasingly diverse. For generations, it has served as one of the primary entry points for Mexicans coming into the U.S. The result is a robust mix of unacculturated 1st generation Latinos and highly acculturated 2nd, 3rd and 4th generation Latinos, each with their own media consumption habits and preferences. The diversity of Texas’ Spanish-speaking masses is becoming ever more evident as immigrants from all over Latin America arrive. And there is no shortage of media options to choose from.

Houston: A major market Rene Cantu, director of communi- cations for the Houston Chamber of Commerce says: “Houston’s Hispanic population is growing quickly. There are a lot of first generation residents as a result of recent migration. Obviously the largest Hispanic population is Mexican, but there is also a growing population of Colombians, Venezuelans and Ecuadorians. Many come with a mind toward starting their own business or expanding their

31 Texas

Latin American business into the U.S.” Impremedia have a licensing agreement El Paso: Crossing the border Cantu adds that there is a strong mar- to publish Impremedia’s La Vibra “The border market is really quite ket for Spanish-language classifieds, entertainment magazine, which is tar- interesting,” says Rodrigo Vallejo of evidenced by the fact that there are two geted at younger, urban Hispanics in Dallas based independent advertising such publications in circulation, Buena the Houston area. agency Camelot Communications. Suerte and La Subasta. La Semana News (125,000, “The line between Mexican and U.S. (100,000, Spanish, weekly) is another popular media is blurred, particularly with weekly, Spanish) is a weekly newspaper weekly among Houston Hispanics. The radio, as many stations cover areas on that was established in 1979. La Voz is paper draws a host of national adverti- both sides of the border.” Vallejo says written in mainstream Spanish. sers including big-box retailers Target, that outdoor advertising is another Covering news of Houston, Texas, Best Buy and Sears, as well as telecom good option for advertisers as rates are Mexico, Latin America and the rest of companies Cingular, Verizon Wireless, comparatively low. Companies like JC the world, La Voz concentrates on and Amazon. Penney, Mervyn’s, Chevrolet and issues and news that affect Hispanics. It Rumbo Houston, published by Lowe’s, are typical print media adverti- also carries health, business, an amuse- Meximerica Media which recently was sers and have also taken advantage of ment page and coverage of such sub- taken over by Impremedia, enjoys the outdoor advertising programs, accor- jects as food, sports and entertainment. largest circulation of any of the com- ding to Vallejo. La Voz de Houston is delivered directly pany’s three Texas weeklies, with Located right on the border, El to Hispanics’ homes through The 50,000 copies distributed on Fridays. It Paso is a huge market for recent immi- and via freestanding is written completely in Spanish and grants. Much of the advertiser dollars racks in approximately 600 locations. targets first and second generation come from big-box retailers who seek The paper is distributed via home deli- Mexicans between the ages of 21 and to market not only to El Paso resi- very, rack distribution and in Houston 54, and other Latinos looking for a dents, but also to the steady stream of Chronicle single-copy sales on daily newspaper in Spanish. The paper Mexican shoppers that spend nearly Wednesdays. The paper is in tabloid touts that its features have been cited $3 billion a year on various goods. It format, and runs both ROP and FSIs. by The New York Times, The Wall Street is estimated customers from the The Houston Chronicle and Journal, and Univision. Mexican cities Juarez and Chihuahua

32 Texas

account for over 50% of the cities annual retail sales. One look at El Paso y Mas (50,000, 2x/weekly, Spanish) shows just how big that retail business is. The paper, which is published by the El Paso Times, is loaded with inserts from every imaginable big-box retail outlet, including Wal-Mart, Toys R Us, Kohl’s, Best Buy and more. Speaking about what makes El Paso such a unique market, El Paso Times Group Market Development Director Robin Montoya commented, “Most border communities have mul- tiple print products that can be Spanish language based, or Spanish “design focused” but still in English. Our market is unique because there is a significant portion of the market (our last Market Study indicates as much as 60%) who speaks and work in both languages. Only 13% speak exclusive Spanish. That allows a great deal of flexibility in methods to reach Hispanic consumers.” Also reaping the benefits of big- box retail’s big-box ad budgets is the area’s only daily, El Diario (20,000, Spanish, daily), published by Mexico’s Editora El Paso del Norte. El Diario counts Best Buy, Wal-Mart and among its top advertisers, says general manager Ivonne Rodriguez “We are the only Spanish-language daily in El Paso, so we capture a lot of readers who are first generation” Rodriguez notes. “The border market is very interes- ting, particularly in terms of radio pro- gramming,” says Victor Apodaca, Sales Director at Universal Radio Network. “Lots of our stations cover both sides

33 Texas

of the border, so there is a real mix of Carnival, Bank of America, Chesapeake Southwest Airlines and Novamex Mexican and U.S. advertising.” Energy, Wal-Mart, Target, several fur- among its clients. Both companies niture stores, Verizon Wireless, Metro have tended to favor television and PCS, among others. La Estrella’s websi- radio advertising. Austin: Declining Competition? te garners a mix of local and national The fourth largest Texan city (pop. advertising, including local auto dea- 650,000, 32% Hispanic) got its first lership ads and U.S. Army banners. Job San Antonio: English-dominant Spanish-language daily in November website Carrerbuilder.com also adverti- San Antonio is an interesting 2004, when Rumbo Austin rolled into ses regularly. market within Texas’ Hispanic media town. The newspaper's launch was sup- Al Día (35,000, Daily, Spanish) is space due to the fact that its Latino ported by a $3.8 million five-month- Dallas’ only Spanish-language daily population is the most acculturated. marketing campaign to attract readers. newspaper, and one of only a couple This reality allows for both bilingual Rumbo Austin converted into a weekly Texas Newspapers that follow the and Spanish-language publications to in 2006 and folded last year, leaving daily publication paradigm. The paper co-exist, as they cater to different Spanish-language weekly Ahora Sí! publishes six times a week, with an audiences. (circ. 30,000) as the only important additional 5,000 copies printed for its San Antonio-based ADS Media Hispanic print media player in Austin. Saturday edition. Marketing Director Group has a door-hanger/direct Ahora Sí! ' is published in association Isaac Lasky comments, “Our daily for- mail/editorial hybrid product called with the Austin American Statesman mat is doing very well; we are expan- Canasta de la Familia that targets (Cox Newspapers). Its editorial content ding our distribution in single copy Latino homes in Texas and emphasizes family, health, education via racks and have shown important California, according to CEO Dub and sports. growth in our home delivery service. Doyal. In 2007, the company com- Readers and advertisers value the uni- pleted 4 drops of 2 million pieces, queness of a daily that offers impor- each drop dedicating 1 million to Dallas/Ft. Worth: Major Properties tant relevant news, readers value the Texas and California each. Compete fact that they are not looking at stale The San Antonio Express News “Dallas/Fort Worth is unique in its results from sports, entertainment, publishes two products: Conexión combination of two things: The sheer local or national news.” Lasky notes (50,000, bilingual, weekly), which tar- power of the numbers of Hispanics— that advertisers like the flexibility of gets the English-dominant Hispanics, 1.6 million—and the many first- placing ads on important dates—like and Cancha (25,000, 2x/weekly, generation Hispanics,” says Bill one-day sales events— for their busi- Spanish), which was launched just last Vincent, business manager of the ness objectives. Readers like the daily- year, and caters to Hispanics who pre- weekly La Estrella (28,000, Spanish, updated classifieds, he adds. Local and fer to receive their news in Spanish. weekly). “Many first-generation national retailers favor our weekend The two products are meant to be Hispanics carry their most immediate edition to place ROP ads as well as complimentary, and to offer advertisers reading and buying patterns here from inserts. Grocery stores and automotive total market coverage. Mexico.” La Estrella used to be a daily advertisers also prefer the weekend product, under the moniker Diario la edition of Al Día. Estrella. Vincent says they decided to Lasky is quick to point out some McAllen: Hispanic Nation adopt a weekly format because of mar- features that set Al Día apart from In stark contrast to the highly ket demand. “Our focus is weekly, and other local and statewide publications. acculturated city of San Antonio, is the home delivery. Rather than being avai- Al Día uses mass media advertising southern Texas city of McAllen, whose lable any day of the week, we strive to utilizing TV, Radio and out of home population is 80% Hispanic. McAllen be available on the days most of our communications offering free home- is located at the southernmost part of market wants to read a newspaper,” delivery subscriptions to boost its rea- the state and his home to three mid- says Vincent, differentiating his paper dership and rate base. He also points sized Spanish-language papers: Rumbo with Al Día, the area’s big daily news- to Al Día’s continuously-updated del Valle (25,000, Spanish, weekly), El paper and a competitor. Preprints are website as a valuable reader resource. Periódico USA (60,000, weekly, an area that La Estrella foresees being Rodrigo Vallejo, Media Planner Spanish), and La Frontera (20,000, big for their company in 2008. Vincent for Dallas-based Camelot weekly, Spanish). Given McAllen’s pro- says that advertisers are attracted to Communications, says that his ximity to the border and its burgeoning their home-delivered weekend product agency uses a lot of TV and Radio in immigrant population, immigration La Estrella en Casa, which has over a non-traditional way. “We like to issues are a staple feature in each of the three times the distribution of its news- do DJ endorsements, live events, publications. Rumbo also features con- stand product, with approximately things that really connect the brand tent that is shared with its two other 97,000 copies delivered each Saturday. with the community at a local level,” Texas editions. Among the paper’s advertisers are: says Vallejo. Camelot counts 34 Advertiser Information Center

Company Page Website Contact Phone Number e-mail Address

Ahora Sí! 33 www.ahorasi.com Nancy (512) 313-9669 [email protected] Rodríguez

Batanga 7 www.batanga.com/mediakit Margie Bonomo (772) 225-5168 [email protected]

Bodas USA 16 www.bodasusa.com Patty Horno (949) 636-7800 [email protected] La Revista

Houston Chronicle 31 www.chron.com/hispanic Loida Ruiz (713) 362-8620 [email protected] La Voz

Impremedia Digital 1 www.impremedia.com/digital/ Erich Linker (212) 807-4781 [email protected]

JumpTV 8 www.jumptv.com Said Schwarz (305) 767-4676 [email protected]

La Estrella en Casa 29 http://dfw.star-telegram.com/ Bill Vincent (817) 390-7368 [email protected] mld/dle/index.html

Meredith Hispanic 13 www.meredith.com/mediakit/ Enedina Vega (212) 499-2106 [email protected] Ventures hispanicventures/index.html

Papel Media 9 www.papelmedia.net John Trainor (312) 936-0867 [email protected]

Starmedia 22 www.starmedia.com Alejandro (786) 497 6614 [email protected] Rodríguez

Todobebé 15 http://client.todobebe.com Michael Sigel (612) 964-6988 [email protected]

Universal Radio 32 www.radiontheborder.com Victor Apodaca (915) 313-9669 [email protected]

Univisión Online 23 http://advertise.univision.com Byron Elton (646) 487-5918 [email protected]

Yahoo! Telemundo 25 www.yahootelemundo.com Adam Chandler (212) 381-6856 [email protected]

.Fox 19 www.puntofox.com Rafael (305) 774-4184 [email protected] Hernández

Many of our print advertisers also advertise on Portada’s website. Links to their properties can be found at http://www.portada-online.com

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