AHAA Conference Overview …. Census, Media and Growth.

The Association of Hispanic Advertising Agencies conference began with a detailed exploration of the impact the 2000 US Census population estimates have in many key demographic arena.

The Santiago & Valdes Consulting team where able to explain the growth and highlighted the short fall in convergence of the estimates and the true value of the Hispanic Consumers to advertisers. Demonstrating the upside potential the Hispanic Market has in the next decade for Hispanic agencies and the media.

For two days, the top leaders in television, radio, print and internet explained their current position, their needs and their views for the future for the Hispanic Media Industry. There were no surprises, but a common understanding that the growth of the Hispanic Market has not reached a plateau in it’s growth. All panelist believe that there are many advertisers that yet have had the opportunity to acquire a relationship with the US Hispanic Consumer.

TELEVISION:

Television executives postured their accomplishments, their networks and their view of a competitive Hispanic television landscape. Tom McGarrity – Co-President Univision Network and Jim McNamara – Chairman & CEO of Telemundo, agreed that their network have grown by creating appropriate programming that continues to maintain current viewership, fights attrition and attract traditionally English media oriented viewers to their networks. Along with their views on programming, they view the advertiser list on both networks as only a short list of the main advertisers advertising in mainstream television. Walter Ulloa – Chairman & CEO of Entravision Communications detailed the impact that current revenues and viewership rating disparities on media companies. A revenue gap that needs to be addressed by the media and the agencies, which offers the upside for the Industry.

The Azteca America Chairman & CEO Harry Pappas presented a jovial look at his persona and seemed to be enjoying his inaugural presentation to the Hispanic advertising community. But in essence, did not explain the blue print for his company’s entry and ability to compete in the highly competitive Hispanic television environment. He stressed the opportunities that have allowed other media to have multiple players in their Industry and tried to correlate this to the Hispanic television environment.

Several points that seemed to have slipped through the cracks in the session, were the new Univision venture using the USA Networks. The current high profile negotiation occurring between Televisa with Univision. The Televisa talks with mainstream networks. The impact of this network on the competitive environment. An issue that could have the single handedly the most impactful force on the entire competitive landscape in Hispanic Television.

In the panel representing the mainstream networks, one point was clear. Hispanics are under represented and a change is needed. With the exception of Nickelodeon who airs Hispanic theme shows such as “Taina” and “The Garcia Brother’, the current roster of shows and the inclusion of Hispanic talent in the mainstream networks is dismal. On the other hand, Jay Ireland – President of Television Stations for NBC Network admitted that there is a need to address the Hispanic Consumer / viewer in relation to the effect and the composition of key markets. Offering a opening for AHAA to help advise and begin the remedy process of inclusion in the airwaves vs. exclusion.

RADIO:

The Radio session seem to have been a show of individual character vs. ability to deliver the Hispanic Consumer. The presence of Mac Tichenor – CEO of Hispanic Broadcasting System, representing the largest Hispanic radio group on the panel demonstrated the importance of the attendees to his company. Mr. Tichenor is season radio veteran that positioned his company, strategies and efforts in a poised manner. Thus, demonstrating the knowledge learned and acquired on how to position Hispanic Radio to the advertisers, agencies and Wall Street. Jose Cancela – President of Radio Unica related in a unique high-energy form his change in perspective on how radio plays an important part in the media mix and consumers lives vs. his previous knowledge of how television delivered this for advertisers and consumers.

Other radio session panelists and both Mr. Tichenor and Mr. Cancela agreed on the importance of having better and more accurate ratings and research information to help agencies make a better qualified planning and buying decision. A call for the creation of an AHAA committee to oversee possible methodological reviews of both Arbitron and Nielsen was made.

PRINT:

The print companies represented on the panel unanimously voiced their concern for the lack of understanding and inclusion of print as a viable alternative in the media mix options for Hispanic focused advertisers.

The views of the various print vehicles are as diverse and the specific audiences they target. Ranging from Spanish language newspapers in many key Hispanic market to specialized magazines in both English and Spanish covering fashion, business and other niche content opportunities.

One thing was clear, the Print Industry needs to have a unified message of opportunity and deliverables to help the agencies better understand the deliverables.

Some of the companies on the panel are leaders in their specific market and / or content niches. Other players not present at the conference are not just striving to survive or reach a par level with mainstream players, they are just not making it. An issue the Hispanic Industry needs to address, because it would be a real shame to see some of our magazines and newspapers in our Industry close down. This is not a message of growth or opportunity.

INTERNET:

Manuel Bellod – CEO of Terra.com, Omar Wasow – President of BlackPlanet.com & MiGente.com, Roberto Alonso – VP & Managing Director of Yahoo en Español! and Adriana Kampfner – SR. VP of StarMedia.com. All on one panel for the first time in the Hispanic Industry.

Outside of being a first for our Industry, collectively the companies represented on this panel are the largest and most successful companies that have outlasted the attrition in the Internet space. We would also need to include Univision.com in this short list, that was not able to attend for strategic reasons.

The Hispanic Internet space is one that must be deciphered … are you US Hispanic focused or Latin America focused? La pregunta de los 64 millones de chavitos.

All three companies with the exception of MiGenete.com have a larger presence in Latin America. MiGenete.com positions itself as a portal for people to connect and create a community and they are 100% US focused in English. Terra.com is a large internet conglomerate owned and operated by Tefonica de España, who uses it’s global strength to create programs and technology that is then laced with local and regional content on a country by country basis. StarMedia follows the same strategy in the countries in which they operate. Yahoo en Español! relies on the global efforts of it’s parent Yahoo! and local content as well to cater to Hispanics markets on a pan-regional basis.

The session highlighted the ability of all companies present in creating programs that take advantage of their unique position in the Hispanic Internet space. The one point that was clear, they are all willing to compete for the dollars on the table. When those dollars reach the table.

Many agencies yet have taken the opportunity to better understand the Hispanic Internet space, thus requiring many of these companies to go directly to advertisers to position the opportunities that exist.

URBAN CONSUMERS:

Are Hispanics a homogeneous and isolated group of consumers? According to Guy Primus – Executive Director of URBAN IQ, the Hispanic Consumer group as a whole has subgroups that also are part of another group called the Urban Consumer.

With the growth of the 18-34 age groups in Urban metropolitan areas, the interest in new music genres such as Hip Hop, the retro-acculturation of young white Urban consumers, it O.K. to be part of a multi language and non-racial subgroup.

UrbanIQ has created research that details the growth of the Urban Market and is able to dissect the important subgroups that are part of this new marketing opportunity.

The young and bi-lingual Hispanic Consumer plays an important part of this segment, representing 17% of the total consumers in the subgroup or over 7.8 million Hispanic consumers. This Hispanic sub-group represents 22% of the total Hispanic population.

Agencies need to start looking to understanding and diversifying their strategies to include Urban oriented messages and efforts. Currently, mainstream agencies and African-American agencies are positioning themselves as leaders in this arena. Why not Hispanic agencies?

Over all, the conference was very well attended. The theme was not the crowd pleasing creative awards that most agencies believe their prowess should be measured on. The theme was the business process of analyzing and negotiating media solutions to deliver marketing and media goals.

Isn’t this why we are in business for anyway .. delivering results for advertisers?

CLICK on ‘More Images’ above for more pictures of sessions.

Saludos,

Th**************@Hi********.com