AOL Puts New Accent On Subscriber Push, Targets Hispanics With Record Ad Effort

America Online today will launch the largest Spanish-language advertising effort in its history, and likely the biggest ever for an online service. The campaign, designed to sell Hispanic users on its fledgling AOL Latino service, will include some of the biggest players in Spanish-language media, including TV, radio, print and outdoor outlets. The ambitious effort is aimed at luring experienced Internet users and novices, Spanish-dominant consumers as well as bilinguals.

Among Hispanics, AOL already leads the online service field, boasting a 45% market share and a smidgen under six million users (2.3 million accounts). With the introduction of AOL Latino, the company figures to increase its dominance even further. The service is customized for Spanish speakers - rather than translated from AOL's flagship English-language version - and attempts to replicate the community feel of the original.

That said, AOL Latino isn't as much of a slam-dunk as it might sound. Though Hispanics are coming online at roughly three times the pace as the population as a whole, computer penetration in Hispanic households is lower than average. Similarly, the Hispanic community has been slow to embrace the online world.

The solution? Advertising, of course. "We want to introduce [Hispanic consumers] to the new medium," says David Wellisch, vice president and general manager of AOL Latino. "But in doing this, we have to make sure they understand the value of the online medium, that they see the reasons behind wanting to take the Internet home, as opposed to using it at libraries or friends' houses." To this end, the ads will prominently showcase AOL's family-friendly and community features.

"Helping kids to learn, that's a huge part of it," Wellisch continues. "Also, [Hispanics] use the phone more than any other community in the country, so instant messaging and email could be very powerful to them. The key is making sure they're not intimidated."

The campaign's television component includes Univision and Telemundo stations in New York, Los Angeles, Miami and other markets. Print venues include People En Español magazine and major Spanish-language newspapers, while radio ads will run on more than 60 stations in the U.S. The first of the three TV spots, dubbed "School," puts the ubiquitous AOL "running man" in a classroom, and touts the service's homework help feature.

Wellisch won't reveal AOL Latino's goals for growth, but he notes that over the next five years about five million Hispanics are expected to get online. With AOL currently controlling 45% of the Latino market (and hoping to grow that figure considerably), some quick math suggests the company would probably hope to add at least 2.25 million subscribers.

"It could take a while for our message to penetrate," Wellisch warns. "But we think the campaign makes clear our message and value proposition. If we keep communicating them in the right ways, the business will grow significantly."

The ad campaign marks the second phase in the marketing push for AOL Latino. The third, set to break in November, will revolve around distributing the AOL Latino CD-ROMs in retail stores and in magazines that appeal to a large percentage of Hispanic readers. The first, centered predominantly around PR, will run concurrently with the other phases. "You will see us much more," Wellisch promises.

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