The NTI effect on the Hispanic TV Nets vs. the Hispanic Agency.

At last week’s Association of Hispanic Advertising Agencies conference in Los Angeles, besides the changes at the helm, the awards, the vendors and the panels. One panel titled ‘NTI AND THE UPCOMING UPFRONTS’ was the key element that will dictate the future of the US Hispanic Market.

On the panel Paul Donato, Senior Vice President, Chief Research Officer, Nielsen; Steve Mandala, Executive Vice President Sales, Telemundo; Tom McGarrity, Co-President Network Sales, Univision; Court Stroud – Senior Vice President of Sales Azteca America and Jessica Pantanini, COO, Bromley Communications.

As panels go with vendors, they exposed the opportunities to that exist with the use of the new NTI TV measurement service vs. the NHTI Hispanic TV measurement service by Nielsen media Research.

They eloquently detail how the NTI would be beneficial to the entire Industry, since it would allow the Hispanic TV networks the ability to compete equally with ABC, CBS, NBC and others.

Steve Mandala of Telemundo stated the NBC/Telemundo has calculated that the NTI measurement data system would entitled the Hispanic TV networks with about another $800 million in ad revenue.

The TV executives, the research expert and the agency head all agreed that the NTI would help the TV networks compete against mainstream TV companies on an equal footing basis, once more data granularities and daypart & demos information was available.

Nielsen has decided to offer the data for free to current subscriber in the interim. The NTI system will replace the NHTI and will be the only TV measurement data available after September of 2007.

OK ……….. so it is a good thing for the Hispanic TV Nets. We get that they want to make more money in a different selling environment that has been restrictive in the past!

NOW …… how does this translate into a better thing for the Hispanic advertising agencies?

First, over 65% of all Hispanic TV network spending is done by mainstream buying service and/or Hispanic focused agencies owned by multinational ad agencies networks.

Yes, over 65% …………..

So again … how will the use of the NTI better serve the independent Hispanic agencies?

Even if $300 million (37.5%) of the $800 million entitlement were to be awarded to minority owned Hispanic ad agencies. How much of the remaining buying responsibility that they currently have would be lost to mainstream buying units?

Would it be a wash?

Would they lose more than they gain?

Or would they gain?

What is the effect on our Hispanic focused cable TV channels?

Our question is what is the net net effect of such a move on the core independent Hispanic agency that is the backbone of our Industry?

We have yet to discuss the effect of strategies being brought forth that would make buying Spot TV easier by mainstream buying service. We will leave this one for another day.

What has differentiate our Hispanic agencies has been their unique ability to bring forth unique local, regional and national programs for advertisers that take into account the nuances of language, culture, market by market issues, promotions and much more.

The more we try to emulate, we lose our unique differentiating factor.

Our question AGAIN is what is the net net effect of such a move on the core independent Hispanic agency that is the backbone of our Industry?

Will our Industry become a collection of creative boutiques that serve multinational account, media planing and buying agencies?

Is this the beginning of the end?

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