• by Paul Gough , September 13, 2002

Advertisers aren’t spending enough time and money to reach the 40 million Hispanic market in the United States, according to a study released today.

The study, released this morning by the Association of Hispanic Advertising Agencies, found that advertisers in 20 product categories aren’t allocating the right amount of money to the Spanish and bilingual market. They have to allocate more money and resources to reach the right spending levels. Hispanics make up 13% of the United States population but advertisers are allocating 2.4% of media resources (about $3.2 million annually) to target them.

Hispanics have a buying power of $630 billion. The population has increased by 58% in the past decade.

“The findings in this study show that corporations need to create new allocation levels in their total national business and marketing budgets that align marketing with per-household potential, revenue and consumption,” said Ingrid Otero-Smart, president of AHAA. An earlier study found that many advertisers don’t meet the 8% threshold to be effective in reaching the Hispanic market.

Carlos Santiago, president of The Santiago Solutions Group that conducted the study, said most advertising industries would have to double or triple their current allocation in the Hispanic market just to be aligned with current purchasing.

Among the study’s recommendations: Advertisers of baby products, personal electronics and personal care should spend between 10%-25% of their advertising resources to the Spanish/bilingual market. Advertisers in the categories of fast food, apparel, grocery, beer, automobile and entertainment should devote between 7%-13% to the demographic.

The study also said more money should be spent in key markets like Los Angeles, Miami, Chicago, Phoenix and Houston.