Is Spanish Language Media Sustainable?

The U.S. Hispanic market is the fastest growing segment of the US population and has currently surpassed 15% of the entire population, about 49 MM. The Hispanic population is projected to reach 29% by 2050, or 127MM. If we set aside the advent of new media, is Spanish language media a sustainable media for our market?

For decades, the growth of the Hispanic market was heavily driven by immigration. Almost one-third of the Hispanic population growth was propelled by immigration. This immigration pattern perpetuated the popularity of Spanish-language media. But after 2001, Hispanic immigration took a dive and dropped 24%. This trend will continue with the new political hype on immigration, which will make it even more difficult for Hispanic immigrants to enter the US.

Though Hispanic immigration declined, Hispanic population keeps growing–mainly because of Hispanic birth rates. The average US woman has 1.9 children, but broken down by ethnicity, the numbers are 1.7 for Asian Americans, 1.8 for non-Hispanic whites, 2.0 for blacks and 2.3 for Hispanics–the highest.

In fact, Hispanic teens represent 20% of the total US teen population. Hispanic kids are growing up in the US–defining the emerging Hispanic market in the US as bilingual and bicultural. But what media are they consuming? Does a 10-year old Hispanic in the US watch Univisión or Telemundo? Or do they watch Cartoon Network? Will they continue to watch Spanish channels as they grow up? Or will they just reminisce about these stations every now and then?

I checked the Saturday morning program lineup for Univisión, Telefutura and Galavisión to see how they are addressing our kids. I was surprised to see that Galavisión had no kids programming at all, just infomercials; Univisión broadcasted Planeta U and Inspector Gadget; and Telefutura broadcasted Plaza Sesamo. Between the three channels, there was a total of three shows broadcasted for kids on Saturday morning; half as many shows broadcasted by NBC’s Saturday morning lineup, which consisted of six shows. It's a start, but more shows in Spanish need to be made for kids.

As a Hispanic marketer, I often wonder about the sustainability of Spanish language media, especially if the growth of Hispanics in the US is no longer immigration, but actual birth rates. What is going to happen to Spanish Language media when our kids grow up–in English? Will our kids watch Univision or Telemundo when they are teens? Do these stations address the changing needs of the Hispanic market?

What do you think? How should we, as Hispanic marketers, address this issue? Join the discussion. Thanks!

Fausto Gortaire
Account Director
HeadQuareters Advertising Inc.

Arizona Immigration Law

I’ve been reading some interesting articles and comments about the controversial legislation enacted last month in Arizona. Especially the ones about illegal immigrants creating a financial burden. The truth is that most illegal immigrants do pay taxes, but don't actually receive any benefits from those taxes. With the economic downturn, Mexican immigration has actually declined.

Go figure, less work means a lower rate of illegal immigration, which results in fewer taxes being collected from those immigrants. See a pattern? Life is really stranger than fiction isn’t it?

The other argument, which states illegal immigrants have brought a stream of crime, is just not true. In the past ten years, as the number of illegal immigrants in Arizona grew, the rate of crime across the board declined; the rate of violent crimes dropped by 23%, and the rate of property crime dropped by 28%.

Arizona law enforcement has mixed feelings about this bill as well. But why? Many Arizona cops feel that the law amounts to an unfunded mandate that could damage community relations and distract their attention and resources from serious crimes.

America was build on the backs of immigrants from all over the world. It is our social responsibility to advise Arizona that their new legislation is shortsighted and economically unsustainable. Immigration isn’t the problem–a lack of creativity is at the heart of it. Though I am not a believer of conspiracy theories, the Arizona Immigration Law SB1070 2010 has all the markings of a good political plot.

Fausto Gortaire
Account Director
HeadQuareters Advertising Inc.

Hispanic Cultural Leadership

Food. Flavors. Art. Movies. Premieres. Stars. Music. Rhythms. The works. Hispanics influence much of the fabric of American society, culture and state of mind. The face, taste, colors and even language evolving from the Hispanic influence in America culture helps create Hispanic Cultural Leadership.

Hispanic actors blend the lines between American and Latin culture in many movies. Movies like “Vicky, Chrisitina y Barcelona” and “Spanglish” appealed to Hispanics and the general market in very different ways.

American television has its first Hispanic TV host. The latest success of the George Lopez Show is a clear indicator o how the American audience accepts Hispanics and how Hispanic-American culture broke through American programming.

Some of the fastest growing TV programs are actually bilingual shows MTV Tres, which features both Hip Hop and Latin American artists with Video Jockies that speak both Spanish and English interchangeably.

More and more Hispanics are becoming leaders and are having greater influence on the trends and dialogue of the country. In May 2009, President Barack Obama nominated Sonia Maria Sotomayor for appointment to the U.S. Supreme Court. She became the first Hispanic to become and Associate Justice of the United States Supreme Court.

According to a study conducted by Telemundo, Hispanics out spend non-Hispanics Whites on electronics, movies, clothing, beauty products, video games, CD’s, and groceries.

In the political arena, Hispanics have become more active with their voting power inflating from 5 million to approximately 9.2 million in the past 10 years. Many actually feel that the Hispanic vote helped Obama become president in the recent presidential elections.

When one out of five teens in the US is Hispanic, Hispanics must be leading a cultural revolution in this country. Their influence on the rest of the American population is growing because they themselves are becoming an undeniably larger part of American life.

Fausto Gortaire
Account Director
HeadQuareters Advertising Inc.

Hispanic Market Relevance

The recession forces many businesses to cut programs and department budgets in order to stay afloat. Cuts in advertising to the Hispanic market are among the most common because it poses an easy solution for lowering costs, but may also present unforeseen consequences—especially from competitors that continue to advertising to Hispanics.

When a brand abandons their commitment to the Hispanic market, they are ignoring the power of emerging markets. Hispanics have a strong purchasing power that is forecasted to increase to $1.1 trillion by 2012. Though this recession affects everyone, the Hispanic market happens to be a more stable market than others because their type of work—manual and blue-collar labor—continues to be plentiful.

Also, the cost to effectively reach Hispanics is extremely competitive, not totally because of cost, but consumption. It is a know fact that Hispanics consume more media the average American. Hispanics watch an average of 17.3 hours per week of Spanish language TV and brands can reach 91% of the market with TV alone. Couple this with the fact that Hispanics use TV as a valid source of information; a smaller budget can really make an impact to any brand.

The Hispanic market is more relevant now than ever before. Investment in the Hispanic market makes sense and has the potential for exponential growth. The economic state of America affects everyone, yet Hispanics keep spending. Companies that invest now, during this recession, will ultimately capture the loyalty of the market and grow their brands.

Fausto Gortaire
Account Director
HeadQuareters Advertising Inc.

Off Language—In Culture

Twenty or so years ago, it was common to translate English ads into Spanish—this was considered Hispanic advertising. Then, as marketing to Hispanics matured, Hispanics created campaigns in Spanish, which lead to better messaging. The strategy, though, was to reach the lowest common denominator—grouping all Hispanics into one demographic target; even as a whole new generation was forming: bilingual/bicultural Hispanic kids.

Marketers considering this group figured that they would be reached through general market efforts. The assumption was that English ads would reach Hispanics that consumed English media. Clean cut marketing that makes sense. Except, the Hispanic market is not just defined by language, it is defined by its culture.

Hispanics often live in a multi-generation home. This means that elderly family members live with their children and often their grandchildren. This family structure helps older Hispanics integrate with US culture, and also helps teens remain involved with their Hispanic culture.

In order to evolve with the changing Hispanic hemisphere, marketers should incorporate a creative mix of Spanish and English properties that break the boundary of language and connect with Hispanics on a emotional and cultural level. Advertise off language but in culture.

HeadQuarters recently developed a campaign for Comcast to reach the entire Hispanic market in Northern California. The campaign was developed to connect with Hispanics on a deeper cultural level regardless of their language preference. The spots showcased a typical drama of a multi-generational Hispanic home with a banter between a grandson and grandmother.



Fausto Gortaire
Account Director
HeadQuareters Advertising Inc.