Consumer packaged goods and retail marketers are seeing a direct correlation between revenue growth and Hispanic media investment, according to a new report from AHAA: The Voice of Hispanic Marketing.
CPG and retail companies among the top 500 U.S. advertisers increased their Hispanic media spend by 67% percent during 2010 to 2014 versus the prior four-year period. Hispanic spending overall was up 20% during the same period.
Carlos Santiago, chair of the AHAA Research Committee, said: “For every five-point shift from English to Hispanic media, we found, on average, a 1.75 percent boost in revenue growth rates – tangible evidence that shifts to Hispanic media directly impact total market revenue growth.”
The study found that since 2006, the aggregate Hispanic ad spend by CPG/Retailers increased 100%, while English-language budgets for the category dropped 7%.
According to the report, P&G spends the most against Hispanic advertising with $439 million followed by L'Oréal, MARS, Walmart, Anheuser-Busch and SABMiller.
Goya leads in highest percentage toward Hispanic with 59% of its advertising going to Hispanic with Constellation Brands(wine, beer and spirit marketer whose portfolio includes brands like Clos du Bois, Robert Mondavi, Corona, Modelo) and L’Arche Green (Heineken) close behind with 46% and 35%, respectively.
Over the past five years, the top 500 advertisers boosted their spending in Hispanic targeted media by 63% or $2.7 billion from $4.3 billion in 2010 to $7.1 billion. The top 500 advertisers boosted their average spending from $9 million in Hispanic targeted media in 2010 to $14 million now.
The study is based on data from Nielsen Monitor Plus which tracked over 340,000 companies’ advertising expenditures in English and Spanish. This data was analyzed by Santiago Solutions Group for AHAA.