AHAA: Advertisers Missing Opportunities.

At a time when corporations are looking for new marketing opportunities and only hoping to grow sales in mature industries, many companies are missing a major opportunity when it comes to reaching Hispanic consumers, reports a new study released by the Association of Hispanic Advertising Agencies (AHAA). The study reveals that the majority of America’s top advertisers are significantly underinvesting in their efforts to reach Hispanic consumers.

The study, Missed Opportunities: Vast Corporate Underinvesting in the US Hispanic Market, indicates that in the past three years nearly two-thirds (64%) of top companies targeting Hispanic consumers have invested less than 3.2 percent of their overall advertising budgets. Corporations in the study that received the top scores are approaching or exceeding the recommended target of eight percent of overall advertising budget. Some of the reports findings include:

* While Hispanics represent about 13.6 percent of the U.S. population, in aggregate America’s leading advertisers are allocating an average of 2.4 percent of their measured media advertising resources targeting Hispanics in the past three years.

* Relative to their overall advertising resources, on average, food and beverage products, food services, personal care, general merchandise, insurance and telecommunications companies have invested the most in marketing to Hispanics while computers makers, software, travel/entertainment, pharmaceuticals, the U.S. government, auto makers, securities and specialty retailers have invested the least.

* With heightened awareness on the value of the U.S. Hispanic market, since 1999 leading advertisers have almost doubled their allocation of advertising resources to Hispanics from 1.8 percent of total advertising dollars in 1999 to 3.2 percent in 2001.

* By 2001, the number of leading advertisers still grossly underinvesting relative to the threshold needed to be effective in reaching the Hispanic market had dropped to 42 percent.

“This study reveals that corporations who are serious about reaching Hispanic consumers must do more,” said Horacio Gomes, president Association of Hispanic Advertising Agencies. “As the true experts in Hispanic marketing, AHAA agencies are committed to helping corporations reap vast rewards by reaching the Hispanic market. We have learned through countless examples that both spending and the right communications strategy have to be in place in order to have a successful Hispanic campaign.”

Nearly Half of Major Advertisers Missing Opportunities

The study was revealed during AHAA’s 12th semi-annual conference. AHAA unveiled a provocative advertising campaign targeting senior corporate executives that will soon be running in major business publications. The creative is designed to underscore the main theme that if corporations don’t have a strategy for reaching Hispanic consumers, they don’t have a future.

“The low scores in this study demonstrate that companies are not placing proper value on the opportunities the Hispanic market offers,” said Carlos Santiago, co-chair, Santiago & Valdés Solutions, strategic market consultants who conducted the research. “Shareholders should be concerned with corporate America’s inertia in seeking out Hispanic consumers. The companies with the best understanding of the Hispanic market’s contribution to profitable revenue growth will be in the best position to thrive over the long-term.”

Using SRC 2002 data tracking Hispanic adults’ language-preference, and media consumption, Santiago & Valdés Solutions determined that for optimum effectiveness in reaching the Hispanic market, advertisers should devote at least eight percent of their advertising dollars to Hispanic advertising and marketing. Results in this report were obtained by comparing the percentage of measured media spending on Hispanic Spanish and bi-lingual advertising and comparing this to the eight percent optimum spending ratio.

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About AHAA – http://www.ahaa.org:
The Association of Hispanic Advertising Agencies is the national organization of firms that specialize in marketing to the nation’s 40 million Hispanic consumers, the most rapidly growing segment of the American population. AHAA promotes the strength of the Hispanic marketing and advertising industry to the private and public sectors.

AHAA agencies offer a unique blend of cultural understanding, market intelligence, proven experience and professionalism that deliver Hispanic market success for clients. AHAA helps organizations gain market share, increase revenue and grow profits by building the bridges and delivering the messages to reach America’s Hispanic consumers, who together have an estimated buying power of $630 billion.