With No World Cup, Hispanic Media See 2007 Ad Dollars Drop

Spanish-Language TV and Newspapers Take Hits as Eight of Top 10 Latino Marketers Slash Their Spend

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Spending on Spanish-language media didn't fall as much as ad revenue for English-language media in the first half of the year, but most Hispanic marketers cut their ad budgets, often by double digits.
Tom Maney, senior VP advertising sales at Fox Sports en Español, says that, unlike many other Spanish-language networks this year, his managed to sign up new advertisers in non-traditional categories.

Total ad spending dropped 0.3% in the first half of 2007, according to TNS Media Intelligence, and Nielsen reported a 0.5% decline for the same period. Among Spanish-language media, TNS reported a 1.2% slip for TV, a 4.4% drop for newspapers and a 13.1% spike for magazines. Among all media, network-TV spending fell 3.5% and newspapers 5.8%. Magazines were up 4.6%, TNS reported.

Eight of the top 10 Hispanic marketers spent less in the first half of 2007 than a year ago, compared to half of the top 10 advertisers in the general market, according to TNS figures. Among the top 25 Hispanic marketers, 18 cut their ad budgets in the first half of this year. Half of those cuts were by double digits. AT&T, Verizon Communications, Hyundai, Home Depot and SABMiller all cut their Hispanic spending more than 20%.

No Cup this year
For Spanish-language TV, most of the 1.2% drop to $2.12 billion in first-half ad revenue was attributed to comparison with a year-earlier period that was packed with frenzied spending around the 2006 World Cup.

"If you look at 2006, the figures [for Spanish-language TV] looked exceptionally good," said Jon Swallen, senior VP and director of research for TNS Media Intelligence. "I would expect third-quarter numbers for Spanish-language TV will continue to look soft until the fourth quarter, once the World Cup factor is over."

TNS estimates the soccer tournament added more than $100 million to the Spanish-language networks' revenue last year.

Spanish-language cable, still small and largely unmeasured, is also experiencing some growth (TNS tracks only the largest cable network, Univision-owned Galavision). News Corp's Fox Sports en Español claims ad-revenue growth of 15% for the first half of 2007, and forecasts 17% growth for the full year.

"Besides the good money [we have] from automotive, we signed up new advertisers in categories that traditionally didn't advertise with us, including wireless, fast food and tourism services," said Tom Maney, senior VP advertising sales, at Fox Sports en Español.

In Spanish-language magazines, TNS reported a 13.1% rise to $102.4 million for the 50 titles tracked by the company.

For next year, political ads should help Hispanic media, although TNS's Mr. Swallen cautions that candidates will concentrate their Hispanic ad dollars in the markets with the greatest number of Latinos.
Spanish-Language Advertising sales
Source: TNS Media Intelligence
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