• by June 14, 2004

Hispanics are ultra-loyal to their family, their heritage, their religion, and the brands they buy. Seven out of 10 Hispanics say they are likely to purchase products from companies that have some sort of visual presence at Hispanic festivals and events. Just recently, Unilever responded by announcing plans for their Bestfoods subsidiary (Skippy peanut butter, Lipton tea, Ragu pasta sauce) to set up voter registration booths at a number of Hispanic festivals across the country this summer.

Statistics show that the buying power of Hispanics has increased 56 percent in the past 10 years, and predictions are that this buying power will exceed $900 billion by 2010. "Companies such as Coca-Cola, McDonald's, and General Motors were the smart marketers. They recognized the importance of the Hispanic population from the very beginning," says Ronald H. Furman, executive vice president/sales and marketing at Univision, whose television network recently signed up business with BMW for the very first time. "To this day, they continue to refine their messages."

Pharmaceuticals, financial services, and telecommunications represent a sampling of advertising categories that look to fuel the growth in Hispanic-targeted media. While a number of powerhouse advertisers have been immersed in the Hispanic community for a while, many have yet to get their toes wet in the Hispanic media marketplace. "There is not a product category out there that doesn't have at least some companies advertising directly to Hispanics," say Furman. "Yet there are still so many companies out there that we need to reach."

This past February, Publicis Sanchez & Levitan merged with Texas's Bromley Communications to become the nation's top Hispanic advertising agency, with a reported $276 million in billings. Just recently, TBWA Chiat Day also announced plans for its new transcultural division. "We didn't want to simply do what everyone else is doing," explains the chairman of the new division, Robert Rosenthal. "It's not about targeting a certain color of skin or ethnicity. We are looking to go beyond multicultural to the transcultural."

There is no question that marketing to this culturally diverse target takes time and research. A personal insight into this culture is vital to the success of any advertising message targeting the Hispanic community. "Many American agencies have begun to hire their creative talent out of Latin America," says Lopez, whose company provides research for companies such as Anheuser-Busch and Verizon Wireless.

Also, at the relatively young age of just two years old, Tapestry has become one of the leading multi-cultural agencies in the United States. Clients such as Miller Beer, Kellogg's, and Walt Disney Company are just some of the clients who have benefited from the Chicago-based agency's unique approach to reaching Hispanic, African American, and Asian consumers through media buying, promotions, and direct marketing.