Commentary

Spanish-Language TV Advertising ROI Outperforms English

Nielsen reports that brand owners are no stranger to the rapidly growing U.S. Hispanic market. With a population of 57 million people and over $1.3 trillion in spending power, it’s hard to ignore the opportunity. Nielsen estimates that about 83% of U.S. adults in Hispanic TV households (persons 18+) speak some level of Spanish in the home, with 27% speaking only Spanish and 57% speaking both languages in the home.

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US Hispanic Purchasing Power

  • 1990… $213 illion
  • 2000… 495 B
  • 2010… $1Trillion
  • 2013… 1.2 T
  • 2018… 1.6T

Source: Selig Center Of Economic Growth/US Census/NielsonTV Universe, March, 2017

Language Spoken in Home (Hispanic persons 18+

  • Only Spanish… 27%
  • Mostly Spanish… 26
  • Spanish/English equally… 5
  • Mostly English… 26
  • Only English…17

Nielsen, March 2017

Many brand owners remain cautious in their spending to engage this group because of the challenges associated with realizing returns and the cultural intelligence required to succeed, says the report. Nielsen research points to some key tips that can help advertisers achieve strong outcomes more consistently. Their marketing-mix studies show that 54% of Spanish-language TV campaigns perform in line with or ahead of English-language campaigns.

Spanish Language ROI VS.General market TV ROI Benchmark

  • Exceed general market… 28%
  • Equal to general market… 26%
  • Below general market… 46%

Source Nielsen Benchmarks 2013-2016

To understand what differentiates the Spanish-language TV campaigns that deliver higher ROI from the ones that deliver lower ROI, Nielsen conducted an analysis across marketing-mix studies where Spanish-language TV marketing efforts were used. The study categorized the results into "high ROI" (greater than $1 per $1 spent) and "low ROI" (less than $0.50 per $1 spent,) groups and evaluated the differences between them to identify the drivers of higher ROI. This analysis identified five key levers to driving higher ROI on Spanish-language TV.

Brands that Hispanics purchase more frequently were able to generate a higher ROI across Spanish-language TV. The average brand consumption index (rate of purchase compared with the overall average) among Hispanic consumers was 20% higher for the high-performing brands, relative to the low-performing brands. Most of the higher ROI efforts were for brands that generate $60 million or more in annual revenue among Hispanic consumers were able to generate higher ROI than the general market benchmarks. But, says the report, brands and categories that aren’t well known should set up the foundation for long-term potential.

The study tracked the general relationship between creative and ROI for years and the correlation has been unwavering: campaigns need strong creative to deliver strong ROI. But it’s more than a correlation. The report shows TV Brand Effect, which account a campaign’s memorability and likeability. The marketing mix modeling ROI results, confirms that stronger creative leads to higher ROI. Spanish-language campaigns that delivered higher ROIs had much higher Brand Effect scores versus campaigns that delivered low ROI across every metric tracked: ad memorability, brand memorability, message memorability and likeability. The report shows the same results when Spanish language and Brand Effect score and their English language counterparts were evaluated. The brands that delivered ROI of more than $1 had a higher index than their English language ads across every metric.

To achieve higher memorability and likeability, the recent study identified five key factors that drive high creative resonance scores (measured by Nielsen Brand Effect) among Spanish-language campaigns:

  • Use Original Spanish Content: Ads developed in Spanish that are culturally tailored to the U.S. Hispanic market outperform ads that are simply translated into Spanish.
  • Spanish Dialogue Matters: Ads with on-screen dialogue in Spanish help enhance cultural relevance.
  • Incorporate a narrative storyline: Engage with a story, particularly one that highlights family bonds.
  • Use humor: Leverage the universal human desire for a good laugh, but make sure the humor is culturally relevant.
  • Make it relatable: Feature relatable characters in familiar, real-world settings.

The research shows that the synergistic impact of advertising across channels can drive a stronger result than each type independently. Spanish-language TV advertising that drove a higher ROI also had higher spend on their digital activities targeted at Spanish-speaking consumers, says the report. Brands that targeted more than $1.5 million in annual digital advertising at Spanish-speaking consumer delivered 80% more TV ROI than brands that spent less than $1.5 million on Spanish-language digital advertising. Similarly, brands that dedicated spending of at least 25% of their TV spend on digital ads achieved a 20% higher ROI than those that spent less than 25% of their TV spend on digital ads, concludes the report.

For additional information from Nielsen, please visit here.

 

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