Hispanic Ad Spend Trends Technology-Telecom-Entertainment

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Constance O’Brien’
5 years ago
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1 Hispanic Ad Spend Trends Technology-Telecom-Entertainment

Methodology Advertising spend data including over 340K parent companies was collected by Nielsen Monitor Plus in English and Hispanic (Spanish/Bilingual) media.

Second, SSG classified the overall 500 ad spenders into 5 Tiers according to the percent allocation to Hispanic Media corresponding to previous AHAA Ad Spend Allocation reports.

5%) On-The-Sidelines (Less than 1%) The process was repeated for years 2010 and 2014, thus permitting the analysis of broad trends in the marketplace.

TV Syndicated TV Excluded English Media B2B Display Outdoor National Cinema Regional Cinema Hispanic Media Cable TV FSI Coupon Local Magazine Local Newspaper Local Sunday

2 Methodology Advertising spend data including over 340K parent companies was collected by Nielsen Monitor Plus in English and Hispanic (Spanish/Bilingual) media. This data was analyzed by Santiago Solutions Group for AHAA. First, SSG identified the Top 500 Overall Spending (English + Spanish) parent companies. Second, SSG classified the overall 500 ad spenders into 5 Tiers according to the percent allocation to Hispanic Media corresponding to previous AHAA Ad Spend Allocation reports. Best-in-Class (more than 14.2%) Leaders (6.4%-14.2%) Followers (3.6%-6.3%) Laggards (1.-3.5%) On-The-Sidelines (Less than 1%) The process was repeated for years 2010 and 2014, thus permitting the analysis of broad trends in the marketplace. English Media Cable TV FSI Coupon Local Mag Local Newspaper Local Sunday Supplement National Magazine National Newspaper National Sunday Network Radio Network TV Spot Radio Spot TV Syndicated TV Excluded English Media B2B Display Outdoor National Cinema Regional Cinema Hispanic Media Cable TV FSI Coupon Local Magazine Local Newspaper Local Sunday Supplement National Magazine National Newspaper National Sunday Supplement Network Radio Network TV Span Language Cable TV Span Language Network TV Spot Radio Spot TV Syndicated TV Excluded Hispanic Media B2B Display Outdoor Nielsen Monitor Plus data; Santiago Solutions Group analysis & interpretation for AHAA: The Voice of Hispanic Marketing 2

3 Overall AdSpend Context Hispanic Share of AdSpend Soared to 8.5% in Top 500 Advertisers Increased Hispanic Media Spend by $3Bn or 61% vs. only $1.5Bn or 2% in English AdSpend Eng NH AdSpend Hisp Media AdSpend 5.5% 8.5% $7.1 $ % $ % $76.0 While overall ad spend among the top 500 advertisers increased by 5% from $79.0Bn to $83.1Bn from 2010 to 2014, marketers made a steep increase in Hispanic Ad Spend, jumping 61% from $4.4Bn to $7.1Bn. Hispanic allocation jumped to 8.5% of all US top 500 marketers ad spend from 5.5% in 2010 moving from Follower to Leader tier. English Media Ad Spend increased by 2% from $74.6Bn in 2010 to $76.0Bn in 2014 The English share of ad spend among the top 500 US marketers is down to 91.5% in 2014 from 94.5% in $79.0 Bn +5% $83.1 Bn Nielsen Monitor Plus data; Santiago Solutions Group analysis & interpretation for AHAA: The Voice of Hispanic Marketing 3

4 Home Repair-Furnishing, Tech-Telecom-Entertainment & Restaurant above Avg. Hispanic allocation while Apparel, Appliance-Electronics & Pharma fall below Appliance- Electronics Home Repair-Furnishing 3.5% Apparel 7.1% 6 Categories by Hispanic Allocation Tiers 8.8% Tech-Telecom-Entertainment 10.9% 11.4% Restaurant Index: ( ) Companies in Category Average Top 500 Index Pharma 29 Appliance-Electronics 41 Apparel 84 Home Repair-Furnishing 104 Tech-Telecom-Entern 128 Restaurant 134 Pharma 2.5% Top 500 Other Categories Avgs. CPG Retailers 9.3% CPG Manufacturers 10.9% 1. Allocation Tiers Nielsen Monitor Plus data; Santiago Solutions Group analysis & interpretation for AHAA: The Voice of Hispanic Marketing 4

5 BIC & Leader companies grew in number while On-The-Sidelines had sharpest decline. Appliance- Electronics Apparel Home Repair- Furnishing Pharma Restaurant Tech-Telecom Enternt. 6 Cats Total Tiers Change Nº Co s B-I-C Leader Follower Laggard On-The-Sidelines Total Change Among Top 500 In Category

6 Right Spend = Allocation foundation + Competitive AdSpend Re-calibration Advertisers should consider both Hispanic ad spend and allocation when budgeting. Proper allocation provides an internal base point for successful Hispanic marketing. Ad spend provides a category wide competitive perspective. In a high ad spend competitive category marketers may have to heighten ad spends & allocations to attain goals. 6

Technology-Telecom-Entertainment Among Top 500 US Advertisers Aggregate Hispanic AdSpend By Technology-Telecom-Entertainment Increased by 16%, Allocation jumped 1.

3M Total Technology- Telecom- Entertainment Hispanic AdSpend* $$ Millions $1049M +16% $1221M Average Technology- Telecom- Entertainment Hispanic AdSpend* $$ Millions $31.3M $21.

7 Technology-Telecom-Entertainment Among Top 500 US Advertisers Aggregate Hispanic AdSpend By Technology-Telecom-Entertainment Increased by 16%, Allocation jumped 1.1 percentage points, rising within Leader tier. The Average Company Hispanic AdSpend increased to $31.3M Total Technology- Telecom- Entertainment Hispanic AdSpend* $$ Millions $1049M +16% $1221M Average Technology- Telecom- Entertainment Hispanic AdSpend* $$ Millions $31.3M $21.8M +43% Hispanic % of Overall Technology-Telecom- Entertainment AdSpend* 10.9% 9.8% +1.1% points *Among Top 500 in Nielsen Monitor Plus data; Santiago Solutions Group analysis & interpretation for AHAA: The Voice of Hispanic Marketing 7

DEUTSCHE TELEKOM & AT&T = 29% of Ad spend. VERIZON, COMCAST, SPRINT & TIME WARNER = 38% Ad spend. DIRECTV, #2 spender in 2010, #14 in 2014.

8 DEUTSCHE TELEKOM & AT&T = 29% of Ad spend. VERIZON, COMCAST, SPRINT & TIME WARNER = 38% Ad spend. DIRECTV, #2 spender in 2010, #14 in DEUTSCHE TELEKOM AG AT&T VERIZON COMCAST SOFTBANK (Sprint) TIME WARNER CABLE DISH NETWORK BROADCASTING MEDIA MICROSOFT SAMSUNG GRUPO TELEVISAB CABLEVISION SYSTEMS COX ENTERPRISES DIRECTV HOLDINGS SONY APPLE HULU CENTURYLINK CHARTER COMMUNICATIONS LENOVO GROUP VIVENDI AMERICA MOVIL DE HEWLETT-PACKARD RELIANCE BIG ENTERTAINMENT IAC/INTERACTIVE GOOGLE GANNETT AMAZON.COM VONAGE HOLDINGS ROYAL PHILIPS ELECTRONICS TECHTRONIC INDUSTRIES TELEPHONE & DATA SYSTEMS NINTENDO INTEL HTC EBAY CONSUMER CELLULAR CANON BOSE Hispanic Ad Spend $ (000 s) $9 $3 $17 $12 $7 $3 $7 $1 $6 $6 $4 $1 $4 $1 $3 $2 $1 $1 $21 $3 $2 $31 $38 $31 $37 $32 $30 $28 $26 $20 $51 $52 $67 $66 $84 $86 $130 $117 $136 $115 $106 $137 Top 4 = 49% of Total Ad Spend $179 $173 $163 ACTIVE SPENDERS GRUPO TELEVISAB, BROADCASTING MEDIA, DISH, CABLEVISION, TIME WARNER & DEUTSCHE TELEKOM lead in Hispanic Allocation Hispanic % of Overall Allocation (10.9% CAT. AVG. LEADER) GRUPO TELEVISAB BROADCASTING MEDIA DISH NETWORK CABLEVISION SYSTEMS TIME WARNER CABLE DEUTSCHE TELEKOM AG COX ENTERPRISES HULU BIC SOFTBANK (Sprint) VERIZON VIVENDI AT&T CHARTER COMMUNICATIONS COMCAST DIRECTV HOLDINGS MICROSOFT RELIANCE BIG ENTERTAINMENT LENOVO SAMSUNG CENTURYLINK SONY HEWLETT-PACKARD AMERICA MOVIL DE APPLE IAC/INTERACTIVE GOOGLE GANNETT VONAGE HOLDINGS ROYAL PHILIPS ELECTRONICS TECHTRONIC INDUSTRIES AMAZON.COM TELEPHONE & DATA SYSTEMS NINTENDO INTEL HTC EBAY CONSUMER CELLULAR CANON BOSE 11% 17% 2% 16% 16% 14% 1 12% 12% 9% 12% 2% 1 5% 9% 7% 7% 7% 6% 6% 4% 3% 4% 5% 1% 3% 4% 3% 2% 1% 17% 5% 3% 28% 27% 19% 27% 32% 32% 44% 44% % AVG Nielsen Monitor Plus data; Santiago Solutions Group 8 analysis & interpretation for AHAA: The Voice of Hispanic Marketing

9 Change in Hisp Ad Spend Most Companies Growing In Ad Spend & Hispanic Allocation Since Notable Exceptions: Previously sizable spenders, DIRECTV, VIVENDI & VONAGE (now lower left quadrant) Technology-Telecom-Entertainment: Hispanic AdSpend & Hispanic Allocation Change Increase in Hispanic AdSpend & Decrease in % Hispanic Allocation $20,000 CABLEVISION SYSTEMS APPLE AT&T RELIANCE BIG ENTERTAINMENT CENTURYLINK LENOVO GROUP HULU AMERICA MOVIL DE SONY CHARTER COMMUNICATIONS Change in % Hisp Allocation TELEPHONE & DATA SYSTEMS HEWLETT-PACKARD IAC/INTERACTIVE CONSUMER CELLULAR Vivendi (-31.6%, -$62,135) Direct TV (-24.5%, -$110,763) GRUPO TELEVISAB VERIZON GOOGLE Broadcasting Media (97.6%, -$15,551) $(20,000) GANNETT Decrease in Hispanic AdSpend & decrease in % Hispanic Allocation VONAGE HOLDINGS $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 COMCAST SAMSUNG MICROSOFT DEUTSCHE TELEKOM AG TIME WARNER CABLE SOFTBANK (Sprint) COX ENTERPRISES Decrease in Hispanic AdSpend & Increase in % Hispanic Allocation Increase in Hispanic AdSpend & Increase in % Hispanic Allocation $(40,000) Nielsen Monitor Plus data; Santiago Solutions Group analysis & interpretation for AHAA: The Voice of Hispanic Marketing DISH NETWORK SPRINT, DEUTSCHE TELEKOM, DISH NETWORK, TIME WARNER & COMCAST Increased Hispanic Allocation By >4 points and Hispanic AdSpend by >$6M each since

Hispanic Ad Spend Trends Restaurants Category

Hispanic Ad Spend Trends Restaurants Category Hispanic Ad Spend Trends 2010-14 Restaurants Category Methodology Advertising spend data including over 340K parent companies was collected by Nielsen Monitor Plus in English and Hispanic (Spanish/Bilingual)