The success of Groupon and other local online advertising companies will surely inspire entrepreneurs looking grab a piece of the $1.5 billion that Ad Age reports was invested in local Hispanic media in 2008.
A local online advertising business like Groupon requires two key ingredients: a critical mass of local consumers and the ability to sell to local advertisers. Those looking to tackle the local Hispanic online market should combine these ingredients with a deep understanding of the nuances of Hispanic purchasing habits and online behavior. The following is an overview of some companies that are positioned to make a run at the local Hispanic online market.
The big online players
Although the Hispanic market is not a priority, these companies are perhaps best positioned to own the local Hispanic online market. Groupon, Google, Facebook, Yahoo, Microsoft and Living Social have aggregated massive lists of targetable consumers, many of whom are Hispanic. They also have the ability and resources to effectively reach and sell to local advertisers.
Companies directly focused on the Hispanic market benefit from an understanding of the consumer, but don't necessarily have the scale and technological prowess of the big online players.
Unlike the general market where local online advertising sites seem to launch every day, the Hispanic market is relatively quiet in terms of startups. Descuento Libre made some noise back in November when it announced a partnership with Hoy. In San Diego, Gran Cupón seems to have limped out of the gate, while Mexican startup Buzz Urbano looks to be off to a promising start.
The 2010 U.S. Census will indicate that Hispanics make up 16% of the U.S. Population -- perhaps Google will offer to buy the Groupón of the Hispanic market for 16% of $6 billion -- it comes out to a cool $1 billion.