Televisa intelligently has created a Joint Venture (JV) with Genomma Labs, Mexican producer of pharmaceutical and beauty aids in Mexico, to bring their products to the US Hispanic Market and Puerto Rico. Through the JV, Televisa will reap the rewards of increased sales of the products the JV offers or just get paid for available media tonnage. Taking advantage of a pre-negotiated deal with Univision where Televisa owns thousands of hours of commercial inventory across Univision Communications’ platforms for programming deals, along with its own media platforms through Televisa Publishing.
The Mexican Media giant will commence one of the largest US Hispanic and Puerto Rico marketing campaigns even seen.
You have got to give them credit on this one. ¡CoÃ±o!
Now with that said. Could this be a problem?
Problem 1 – Any advertisers trying to compete on an equal footing of negotiating fair rates and position might have to reconsider their investment in any of the media entities involved.
Problem 2 – Hispanic or mainstream ad agencies in the specific product categories that the JV has, will have to first demonstrate how this type of a deal will not affect their client’s ability to compete. At least have the perception of an equal and level playing field in the US Hispanic Market and Puerto Rico for all in the category.
Problem 3 – In the Magazine business in the US Hispanic Market. Televisa Publishing earns much of the advertising revenue from pharmaceutical and health & beauty aid accounts. Will their interest in the new JV be a conflict of interest for advertisers? How will Televisa Publishing position this INTEREST in ensuring that their JV deliver results to reap the intended rewards at the expense of other companies?
Problem 4 – The agency who handles Genomma Labs in the US and Puerto Rico just lost a lot of commissions. Don’t think they will be placing any of the media.
What do you think?