Targeting Hispanics in a Down Economy Makes Financial Sense

Hispanic Media Offers More Bang for Buck

By Published on .

Tommy Thompson Tommy Thompson
As the year begins, it's hard not to have a conversation regarding the country's economic situation. We see firsthand the slashing of budgets and brands by marketers looking for ways to weather the storm. As many in the industry know, when brands tighten their belts, Hispanic budgets are usually the first to go. I would argue that marketing to Hispanics gives a brand the most bang for its buck -- which should sound pretty attractive in tough economic times.

It seems that the ultimate goal for all brand advertising is to reach the maximum number of eyeballs. If we assume a dollar is a dollar, regardless of who gives it to you, and that a brand is out to get the most bang for its buck, then a great place to start is with Hispanic media.

Simply put, the Hispanic networks offer lower costs per point than general-market networks. This same model is consistent in all forms of media -- radio, online/digital, outdoor and the list goes on. Moreover, if you factor in that within most major markets the Hispanic radio stations are among the highest ranked, the financial math is pretty easy to follow.

While it may be true that Hispanic media outlets have been fighting for years to increase cost per point in an effort to bring their rates to par with those in English-language media, a Hispanic eyeball today costs less than getting a general-market eyeball.

Another benefit of targeting various Hispanic segments is word of mouth. This often costs the brands little or nothing at all and has tremendous staying power within the Hispanic segment.

Many in the general market are pouring millions of dollars into social media and trying to create positive WOM. For Hispanics, WOM is as common as having experienced an astronomical phone bill as you try to stay in touch with your loved ones. Best of all, WOM is not limited to bad experiences. Within the Hispanic segment, especially for those that have not fully acculturated, there exists a community that is not afraid to pass on best practices or admit to making a mistake in order to help their neighbor better adjust to life in the U.S.

The power of Hispanic WOM becomes even more staggering when one considers that, according to a Pew Internet survey, 48% of Hispanics who are online are tied to social networks -- more than any other ethnicity. As brands reallocate traditional media dollars to digital in an effort to gain cost efficiency, keep in mind that about almost 19 million Hispanics are regular users of the internet.

Last, but certainly not least, brands looking to reach mass audiences in person need to look no further than local events like Cinco de Mayo, Fiestas Patrias and the list goes on. This provides brands an opportunity to establish a personal connection with the target with a relatively low cost of entry. Case in point: Cinco de Mayo here in Dallas pulls nearly 120,000 people -- and that's just in one day.

The options for brands on a tight budget looking to make an impact on their bottom line are myriad. Let's not forget, if you talk to Hispanics the right way, they will come.

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