The 2010 Census

As the 2010 Census nears, I think back to the last time new census numbers were released. About 10 years ago, it was the top story of the day; people were shocked that Latinos comprised 10 percent of the population and 1/3 of California's population. This year, the U.S. Census Bureau wants to ensure that the entire population is included. In the past, many undocumented immigrants have been fearful of being included in the Census. In 2010, the Census Bureau will receive help from Univision and Telemundo; the networks will inform Latinos about the Census and encourage them to participate.

Currently, Latinos make up 15 percent of the U.S. population and account for nine percent of the total national buying power, the equivalent to one trillion dollars. However, marketing/PR budgets allocated to this market only represent about four percent of the nationwide overall marketing budgets.

The 2010 World Cup

Many believe that the 2010 World Cup will be the top marketing opportunity of the year for effectively reaching Latinos, especially males 18-44. The World Cup's impact on the Latino market is comparable to the Super Bowl in the general market. Some of the companies that will be developing campaigns with a World Cup theme include Walmart, Coca-Cola, McDonalds, Verizon Wireless and Budweiser. In addition to developing commercial spots that will air during the broadcast of the games on Univision, companies will be developing community outreach and online campaigns. For example, Verizon's V-Cast mobile entertainment platform - will enable its customers to have access to Univision's coverage on their mobile phones, and Walmart is planning on holding official World Cup events at their stores.

More content produced in the USA for U.S. Latinos

In the past, the majority of primetime programming to U.S. Latinos was produced in Mexico. Univision has built a reputable news department and has produced popular entertainment shows, but up until recently, the network has relied on Mexico's Televisa for its primetime programming. In 2010, Univision is preparing to ramp up its own programming produced in the U.S. The company has launched its own production studios in Miami and is set to produce its own reality shows, entertainment specials and telenovelas (of course!).

This means that marketers will have more opportunities for branding, because Univision will have full control over production. Univision plans to acquire additional revenue opportunities, as content will be distributed via multiple platforms including online and mobile.

Online marketing to gain relevance

The New Year is here and I would like to share with you my thoughts of the likely changes that I see taking place in the Latino marketing arena in 2010. I will be posting twice a week. Stay tuned as I will be posting more next week.

Recent studies show a ten percent increase in internet usage among Latinos from 2006 to 2008. Although the Latino population’s use of the internet lags behind other groups, Latinos are catching up fast. U.S.-born Latinos have higher internet access rates, but foreign-born Latinos’ internet access provides the biggest opportunity for growth. This year will mark an increase in the expansion of these opportunities. Univision.com, the largest Spanish-language portal in the U.S., has seen increased partnerships with sponsors. General Mills is the exclusive sponsor of the portal’s “Cocina” widget allowing Web site visitors to browse by meal, country or ingredient. Also in the "Cocina" lineup are video and cooking tips from celebrity chefs' appearances on the Univision network shows. Other companies such as Flock, State Farm, Toyota and Ford have teamed up with Univision.com to launch online marketing campaigns. The Univision portal also launched its first virtual online novela last year, which could only be viewed online. And since You Tube signed a deal with Univision last year, You Tube’s Hispanic audience has grown by 80 percent. With the increasing number of Latinos online, those of us who work in marketing and PR will have to incorporate more online components into our campaigns.

Cinco de Mayo Festivals: A tremendous opportunity for branding, if done right.

Last weekend, many U.S. cities with large Mexican populations -- Los Angeles, Houston, San Antonio and San Jose -- held large public celebrations to commemorate Mexico’s defeat of the French forces in the Battle of Puebla on May 5, 1862. Most of us know this celebration as Cinco de Mayo.

If you attended one of these festivals, you probably saw thousands of families (in some of the larger cities like Los Angeles, attendance at Cinco de Mayo festivals was estimated to be at over 150,000). And also if you attended, you probably saw the booths of hundreds of companies in a variety of categories, from food and beverage, to home improvement, to financial and even government agencies. These companies are represented by brand ambassadors who will often do whatever it takes to attract the attention of attendees to their booth -- tactics include giving away simple promotional materials like T-shirts and hats, to raffling off brand new automobiles or large sums of cash.

Does the time, effort, staff and budget really translate to value for companies? The answer is a BIG YES, but with one caveat: ONLY IF IT IS DONE RIGHT.

Research shows again and again that Latino consumers appreciate the interaction that brands and companies offer on a personal level. After all, trust is a very important value in Latino culture, and for a brand to establish trust with Latino consumers, the consumers have to able to see and directly interact with the brand. This is especially important to build relationships with recently arrived immigrants who may not yet have a preference for a brand or what marketers call as not yet “branded.”

With their wallets, Latino consumers will support the brands they recognize and trust, though at these events it helps to give away prizes to initially entice consumers. Once the consumer is at the booth the real value rests in the quality of interaction between the consumer and the brand ambassador.

Having said that, it is important that these ambassadors are bilingual and bicultural so that they are aware of the cultural sensitivities and specific consumer needs of this community, which may be different from those of general market consumers. Consumers can play a game to help initiate interaction, however the communication has to go beyond reading from cue cards, and ambassadors should be familiar with the brand and the culture so that they can engage consumers and explain how their product can provide solutions for them. Some of this may sound like common sense, but you’d be shocked at how many companies staff these events with non-Spanish speaking brand ambassadors, or pass out all-English language brochures.

These events present a great opportunity for marketers to learn from their target consumer and to provide consumers with the opportunity to become acquainted with their brand; however marketers should follow these recommendations in order to maximize this interaction. This is where the real value is. Anything short of that is a missed opportunity.

[The photos in this post were taken at the 2009 Whittier Narrows (top) and Santa Ana (bottom) Cinco de Mayo celebrations in Southern California.]

Looking for value in your marketing dollars? Why Latino PR outreach is increasing in importance

A car dealer once told me that he estimates a Latino customer refers four people for every person a non-Latino customer refers. There’s a lot of beauty in the notion of la familia for marketers because, as that car dealer understood, you’re not just reaching out to one lone consumer who reads about a product or service in the newspaper, or watches a commercial or listens to an ad on the radio. You’re also reaching many of that consumer’s family members and friends.

Many industries depend heavily on the Hispanic market for the livelihood of their business, including long distance carriers such as Americatel, large money transfer services such as Money Gram, and smaller start-ups such as Xoom. These companies and many others overwhelmingly target immigrant-born Latinos who must be reached on an ongoing basis.

Because times are tough, businesses are trying to find the best value for their marketing dollars, and the Latino market cannot be discounted. Advertising in Latino media costs a fraction of advertising in general market media, so buying a slot on Univision’s Mañana es para Siempre is more economical than advertising during American Idol or Lost if your market is primarily Latinos.

In many markets, Spanish-language TV and radio stations compete head to head with general market stations for audiences. In cities like Los Angeles and Miami it is not unusual for Spanish-language broadcasters such as Univision or Telemundo to post higher audience numbers than their general market competitors such as CBS, ABC, NBC and Fox. Latino consumers depend heavily on word-of-mouth referrals from family and friends, which costs a marketer nothing. And, marketing professionals should remember that Latino consumers are extremely loyal, and once they’re convinced of a product’s value, they’ll become lifetime buyers. Genuine public relations outreach to Latino communities makes total sense.

When it comes to Latino consumers, marketers nearly always get the eyes and ears of many for the price of one. That sounds like value to me.