Issue: Hispanic Marketing

Hispanic Marketing

By: Christina Hoag

Pub. Date: May 11, 2015Access Date: April 7, 2022

DOI: 10.1177/2374556815588527Source URL: http://businessresearcher.sagepub.com/sbr-1645-95695-2671600/20150511/hispanic-marketing

©2022 SAGE Publishing, Inc. All Rights Reserved.

Actresses Reese Witherspoon, left, and Sofía Vergara promotetheir May 2015 movie “Hot Pursuit” with a visit to the set of thelong-running Univision morning talk show “DespiertaAmerica”—that is, “Wake Up, America.” They snacked onColombian-inspired sweets served by the staff of Hollywood,Fla., bakery Urban Desserts. (Vergara was born in Colombia.)Marketers increasingly are focusing on the fast-growing U.S.Hispanic market. (Gustavo Caballero/Getty Images)

Is targeting this growing group smart business?

Executive SummaryBy 2060, Hispanics are expected to represent approximately 28 percent of the U.S. population, up from 17 percent in 2014. They are thecountry's fastest-growing demographic group and an increasingly important market for companies seeking to expand: In 2003, companiesspent $3.4 billion on Hispanic advertising campaigns. By 2013, that figure had almost tripled to $8.3 billion But for marketers, craftingeffective messages is challenging. Although English is increasingly becoming Hispanics' first language, they maintain ties to, and pride in,Latino cultural roots, creating a growing segment of bicultural, bilingual consumers with characteristics that companies must key on if theywant to reach that market. “How marketers go about it continues to be a discussion,” says Carlos Santiago, president of a Hispanicmarket research group in Burbank, Calif.

OverviewRum is popular in Latin America and the Caribbean, so a beverage companyfigured Hispanic consumers would be a natural market for Captain Morganspiced rums, symbolized by a swashbuckling, 17th-century English pirate. Butwhen Latinos were presented with the brand during a market study, they wereturned off by the sword-bearing pirate, his foot atop a wooden barrel. “Theysaid that looks like the oppressor,” says Felipe Korzenny, founder anddirector of the Center for Hispanic Marketing Communication at Florida StateUniversity (FSU) in Tallahassee, who conducted the study. “It shows that animage might be considered cool for Anglos, but can be interpreted totallydifferently by others that have a different historical experience.”

With Hispanics projected to make up approximately 28 percent of the U.S.population by 2060 (up from 17 percent in 2013), companies cannot afford toalienate, or simply ignore, this growing group of consumers. But for manybrands, language and cultural differences have proven hard to overcomewhen trying to craft market messages that resonate successfully withHispanics—those from, or descended from, a Spanish-speaking land orculture. The task is getting trickier. English is increasingly becomingHispanics' first language, yet they maintain ties to and pride in Latino culturalroots, creating a growing segment of bicultural, bilingual consumers withcharacteristics that companies must key in on to capture.

The stakes are high. The Hispanic population has become the largest minorityin the United States with some 54 million people; African-Americans are thesecond-largest group with 45 million. It's one of the nation's fastest-growing

ethnic groups, fueling 56 percent of the U.S. population increase between 2000 and 2010, far outpacing growth of non-Hispanic whites.Hispanic disposable income has sextupled since 1990, reaching an estimated $1.25 trillion in 2014, approximately 10 percent of totalU.S. buying power, says Jeffrey Humphreys, director of the Simon S. Selig Jr. Center for Economic Growth at the University of Georgia,who estimates it will rise to $1.65 trillion in 2019 and eventually align with the percentage of the population. “This is an upwardly mobilegroup, both due to entrepreneurship and rising educational attainment that's opening doors to jobs with higher incomes,” he says.

Companies are taking notice. In 2003, the first year that advertising industry journal Advertising Age started tracking the Hispanic market,companies spent $3.4 billion on Hispanic campaigns, with packaged goods and automotive the two biggest categories. By 2013, thatfigure had almost tripled to $8.3 billion—an increase of 8.1 percent over 2012, far outpacing the general market's paltry 0.9 percentincrease. Top advertiser Procter & Gamble spent nearly $335 million on Hispanic marketing campaigns in 2013, a jump of 36 percent inone year.

Hispanic Ad Spending Grows

Gross Hispanic major-media ad spending by medium, in $U.S. billions, 2012–13

1

23

4

5

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 2 of 20Hispanic MarketingSAGE Business Researcher

Source: “11th Annual Hispanic Fact Pack,” Advertising Age, July 28, 2014, p. 6, http://tinyurl.com/mfm5743

Companies spent $6.1 billion on Hispanic television advertising and nearly $1.2 billion on print ads in 2013. Adspending on Internet media rose by nearly 32 percent from 2012 to $580 million, the largest increase for anycategory. Altogether, ad spending in Hispanic media totaled $8.3 billion in 2013, an 8 percent increase from2012.

Some large advertisers, such as Ford and Procter & Gamble, have been building brand loyalty with Spanish-speaking immigrantconsumers for decades. Other, just seeing the opportunity, eye the burgeoning, young English-speaking Hispanic sector as a lucrativeopportunity for products such as Jamba Juice and Starburst candy. Still others believe that as Hispanics increasingly become integratedinto mainstream U.S. culture, they'll naturally net this growth so Hispanic-specific outreach isn't necessary. Investment services and thetravel industry are among this group. “The realization that the Hispanic [population] is enormous and that demand [exists] behind thesegment for growth in most categories is there,” says Carlos Santiago, president of Santiago Solutions Group, a Hispanic marketresearch group in Burbank, Calif. “How marketers go about it continues to be a discussion.”

As the experience with Captain Morgan rum shows, reaching these consumers can prove challenging, in large part because LatinAmerican immigrants tend to retain their language and culture more than past immigrant groups.

From 1980 to 2010, the percentage of Hispanic households that spoke Spanish remained consistently at about 75 percent, while thenumber of Italian, German and Polish speakers dropped by 55 percent, 33 percent and 26 percent, respectively, over the same periodalthough the number of people claiming that ancestry rose.

Hispanics may eventually follow the pattern of other foreign-born groups. As immigration slows and immigrants move into second and thirdgenerations, the percentage of Spanish-speaking households is projected to drop to 66 percent by 2020. Still, Spanish could be aroundfar longer than other foreign languages—95 percent of Hispanic adults say it is important for future generations to speak Spanish.

“We're still at the beginning of this Hispanic immigration wave, which really started in the '70s and '80s, so we don't know how it's going tobe 100 years out, as with the Italians and Germans, but there's a real emphasis on maintaining Spanish and connecting to their homecountry,” says Mark Hugo López, director of Hispanic research at the Pew Research Center in Washington, D.C.

Largest Hispanic Media Spenders

Top 10 spenders in Hispanic media, 2013, in $U.S. millions

6

78

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 3 of 20Hispanic MarketingSAGE Business Researcher

Source: “11th Annual Hispanic Fact Pack,” Advertising Age, July 28, 2014, p. 8, http://tinyurl.com/mfm5743

The 10 highest-spending advertisers—led by consumer goods manufacturer Procter & Gamble,telecommunications giant AT&T and direct marketing firm Guthy-Renker—devoted more than $1.3 billion toHispanic media in 2013.

The diversity of the Hispanic market presents another challenge. While 65 percent of Latinos in the United States are of Mexican heritage,the other third hail from the Caribbean, Central America and South America. Although they share commonalities, such as traditions oftight family ties and socially conservative values, regional differences are many, Korzenny says. Words can change meanings andcustoms can vary. Cubans, Dominicans and Venezuelans are huge baseball fans, for instance, whereas soccer reigns in Mexico and mostof South America. “The question is always how you can reach them with something that connects to one group specifically as well asothers,” says Joe Zubizarreta, chief operating officer of Zubi Advertising Services, a Hispanic advertising agency in Coral Gables, Fla. “It'sthe proper use of cultural insights.”

Perhaps an even greater challenge for companies is that while U.S. Hispanics may be Latin American in origin or heritage, theirexperience in the United States has contributed to a unique hybrid culture. Marketing messages must address the concept that Hispanicsstraddle two cultures. “Duality is my reality,” says Linda González, chair of the Association of Hispanic Advertising Agencies (AHAA) andpresident of Viva Partnership, a Miami-based advertising agency.

This is particularly true of the fastest-growing Hispanic segment—the millennials, those born or raised from an early age in the UnitedStates who have come of age in the 2000s. Among Hispanics 18 or younger, 93 percent were U.S. born. They made up nearly aquarter of U.S. public school students in 2012. English is their dominant language and they hold American ideals and values, but theystill speak Spanish and maintain pride and connection to their heritage. These consumers can be reached in English through what'sbecome known as the “total market approach,” which aims to hit all consumer groups via one marketing strategy, but debate continuesover whether that is more effective than straight Spanish-language advertising. “Cultural nuance can be much more effective thanlanguage,” says Alex Pérez, president of Phelps Total Market, a marketing communications firm in Santa Monica, Calif. (See Pro/Con:Pérez on Total Market Strategy.)

A boom in Hispanic media since 2000 has expanded the avenues that brands can use to connect with Latinos. The two major broadcastTV networks, Univision and NBCUniversal's Telemundo, have added an array of offerings aimed at different segments of the Hispanicaudience, including NBCUniversal's youth channel mun2. Univision has UniMás for men 18 to 35 and, most recently, it started a jointventure with ABC, Fusion, an English-language channel offering Hispanic-themed content. Other media companies have also jumped in—Liberman Broadcasting began Estrella TV in 2009 and Fox started Spanish-language sports and news TV channels and websites.

Many companies market directly to different Hispanic consumer segments via the Internet and social media. For instance, Kraft and

9

1011

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 4 of 20Hispanic MarketingSAGE Business Researcher

On the website ComidaKraft.com, food giant Kraft presentsrecipes (“recetas”) and products tailored to appeal to Hispanicconsumers.

Kimberly-Clark offer lifestyle, news-you-can-use websites to reach Hispanicmothers, says Joe Kutchera, senior managing partner of Latino Link Advisors,a Hispanic and Latin America digital marketing strategy firm in New York.ComidaKraft.com offers recipes such as Cool Whip chocolate cake forspecial occasions and low-budget, low-calorie vegetable enchiladas madewith Kraft's Italian salad dressing and mozzarella cheese. Huggies.com/es-US provides pregnancy and baby-rearing tips, as well as coupons and prizes.Other companies use websites to explain products that Hispanics may nothave used in their home countries, such as insurance and financial services.

The smartphone has accelerated Internet marketing—a greater proportion ofHispanic adults (92 percent) own smartphones than either their white or blackpeers. Social media is a key part of the trend. Latinos use social media asa way to connect to friends and relatives in home countries, as well as simplyto each other, Kutchera says. Unilever, for instance, offers lifestyle content,such as beauty and cooking tips, to promote its brands on Facebook, Twitterand YouTube under its “ViveMejor” (Live Better) slogan.

Given the size of the Hispanic market and its growth prospects, brands seeconnecting with these consumers as increasingly important, but navigating theintricacies of this segment requires its own strategy. “Most companies realizethey have to win Hispanics if they want to remain relevant in this country,” saysDavid Burgos, senior vice president of cultural strategy for TNS, a marketresearch consultancy in Chicago. “Not everyone is sure how to do it.”

As companies explore the most effective ways to reach this market, here aresome of the questions under consideration:

Weighing the IssuesShould companies market differently to Hispanics?

When the California Milk Processors Board wanted to promote milk to Hispanic consumers, it looked to its hugely successful “got milk?”advertising campaign, but several problems arose. One was that a direct translation of the slogan could be taken to mean “are youlactating?” in Spanish. Additionally, Hispanics found the commercial's premise of running out of milk not humorous as intended, butserious. Also, the peanut butter and brownies pictured in the commercial weren't widely used by Hispanics. Armed with research showingHispanics used a lot of milk in traditional cooking and cooked at home more than the general population, Anita Santiago Advertising, ofSanta Monica, Calif., designed a campaign featuring grandmothers and the passing down of favorite milk-based recipes from generationto generation with the tagline “Have you given them enough milk today?” to resonate more naturally with Latinos. A milk usage study afterthe campaign showed that Hispanics' awareness of the campaign was high and their consumption was significantly higher than that of thegeneral population.

The milk campaign is a classic example of how a strategy developed for the general market can fall flat for Hispanics. Differences incultural sensibilities range from the obvious, such as language, use of a product and palate variations, to the more subtle, such as valuesand sense of humor.

Because Hispanics tend to maintain their culture in the United States, brands must position themselves within that culture to be seen asrelevant, according to specialists. “Other minorities tend to assimilate because they don't have the kind of volume Hispanics have,” saysGonzález, whose advertising agency has handled Hispanic marketing for Hallmark and Disney, among many others. “Eighty percent ofHispanics live in 10 states, so it's very easy to live in your Hispanic roots. You have to understand who that consumer is.”

Cultural insights go beyond language to address values, priorities and core beliefs that lead to differences in consumer behavior, which inturn can drive market growth opportunities. Personal appearance, for example, tends to be important for Hispanics, Korzenny of FSUsays. That translates into more spending on personal-care products than the general population. Cosmetic sales, for instance, declined1.2 percent from October 2013 to October 2014 among the general population but increased 7.4 percent among Hispanics. The samepattern held true for other personal-care categories, including shaving products, lotions, soaps, hair products and appliances.

Hispanics tend to have close-knit families and like to celebrate occasions and holidays with family gatherings. This leads to a custom ofdining out in large family groups. As such, Hispanics have become a key growth category for single-location full-service restaurants. Theyaccounted for an 11.4 percent share of that market niche in 2011, or about $10.4 billion in spending, and the figure is projected to reach$13.8 billion by 2016.

On the other hand, Hispanics may be unfamiliar with certain products, thus requiring marketers to include an educational component in

12

13

1415

16

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 5 of 20Hispanic MarketingSAGE Business Researcher

their campaigns or even omit Hispanic-specific marketing. Market research into refrigerated cookie dough revealed Hispanic womendidn't buy it because they didn't know what it was, so part of the marketing message was showing them how to use it, says Korzenny, co-author of “Hispanic Marketing: Connecting with the New Latino Consumer,” who conducted the research.

Some brands or products may not be worth attempting to market to Hispanics. Although beer is popular with Latinos, Korzenny says hismarket research showed that the brand Red Dog was not appreciated by Hispanics because animals tend to have a lower status in LatinAmerican culture. Former Nestlé executive Michelle Greenwald, now a marketing professor at New York University, says Nestlé conductedextensive “brand development” research to determine which products to push to Hispanic consumers. When strawberry-flavored Quik wasfound to be especially popular with Latinos, the company sponsored a TV promotion to push sales even higher, she says. “Marketers firstneed to understand which categories and which products have a good chance with Hispanics,” Korzenny says. Cultural insights can alsodirect the methods marketers should employ to deliver their messages. Hispanic culture places a high priority on personal relations andsocial gatherings, for example. “Hispanics do business with people they know, people they already have relationships with. It's not alwaysrational. Power of word-of-mouth is huge,” González says. Social media is a more contemporary evolution of that, especially for youngerHispanics. Hispanics are 25 percent more likely to follow a brand and 21 percent more likely to post articles, photos and links on socialmedia.

Joe Uva, chairman, Hispanic enterprises and content at NBCUniversal, touts sports coverage on the company's Spanish-language Telemundo TV network during a presentation to advertisers in May 2014. (Brad Barket/Telemundo NBCU/GettyImages)

Seizing on that insight, “grassroots” or event marketing enables consumers to interact personally with brands. Booths at festivals, contestsand giveaways of branded trinkets, product sampling and event sponsorship with branded banners are all part of the mix that not onlyincreases brand awareness but also establishes a personal connection with the consumer. “Events, small and large, are an essentialelement—health fairs, bridal shows. It doesn't have to be a Hispanic event,” González says.

As more Hispanic immigrants move into second and third generations and become more acculturated, debate has risen over usingHispanic-specific advertising campaigns. Some advertising experts say one creative message can reach various groups, includingHispanics, through Latino actors or using just a few words in Spanish. “Latinos are more than just Spanish-speakers,” says SergioAlcocer, chief creative officer of LatinWorks, an advertising agency in Austin, Texas. He points to a 2007 Super Bowl commercial thatfeatured comedian Carlos Mencía teaching a class of immigrants how Bud Light is ordered around the United States. “The theme of theunderdog plays well with Hispanics and other minorities,” Alcocer says.

Some policymakers and academics have taken issue with the content of Hispanic advertising, most notably food-related marketing, giventhat Latinos have a 48 percent higher obesity rate than whites. Advertising for food, beverages and dining out is less in Spanish-languagemedia than in general market media, but more of it is for unhealthy options such as fast food, candy and low-nutrition cereals. Somecompanies such as Kraft have focused on healthy foods in their Hispanic websites.

17

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 6 of 20Hispanic MarketingSAGE Business Researcher

Should companies tailor their message to different groups within the Hispanic population?

One of the biggest mistakes companies make when approaching the Hispanic market is to treat all Latinos as the same, experiencedmarketers say. “I never ate a taco before I came to the U.S.,” says Burgos of TNS, a native Peruvian. “To understand Hispanic, you have tounderstand that even within the Hispanic segment, there are differences.”

Latin Americans have many pan-regional language and cultural similarities derived from their shared history of Spanish colonization, buteach country and region also developed individually, translating into cultural dissimilarities—and a dilemma for companies marketing toHispanics.

Differences run the gamut, from language to music to food. A T-shirt can be a “playera” or “camiseta” in Mexico, a “franela” in Venezuela, a“polera” in Chile or a “remera” in Argentina. In Cuba, Puerto Rico and the Dominican Republic, salsa and merengue are the popularmusic, whereas mariachi, banda and norteño are preferred in Mexico and much of Central America. Tortillas are eaten in Mexico andGuatemala, pupusas in El Salvador and arepas in Venezuela and Colombia.

For marketers, the conundrum is how to speak to all Hispanics without alienating one group or another. If marketing to narrow audiences,companies can regionalize U.S. advertising efforts to some extent because immigration has fallen largely along geographic lines.Mexican-Americans and Central Americans reside largely in the Southwest and West, while those of Caribbean and South Americandescent settled overwhelmingly on the East Coast, although there are pockets of Hispanics of all origins across the country.

But national advertising can't rely on those patterns. Instead, avoiding country-specific images that have come to stereotype Hispanics,such as Mexican burritos and mariachi players, is key to reaching Latinos of all backgrounds, as is sticking to a neutral Spanish withoutslang or local jargon. The word for “bus,” for instance, varies among Latin American countries, but the generic term “autobús” would be thebest word to use to reach the widest number of Hispanics.

“I tell clients that they should do Los Angeles and Miami as a minimum research, because those cities cover the whole Hispanic market. Ifyou find the same results, you're on track. If not, you need to do different messages,” says Korzenny of FSU.

Embarrassing mistakes can happen. In 2005, Hershey's introduced a version of a traditional Mexican candy, a caramel made with goat'smilk, called “cajeta,” naming it “Cajeta Elegancita.” The name raised some eyebrows—“cajeta” is also an Argentine slang term for femalegenitalia.

Companies can cover all Hispanic backgrounds by using local radio and newspapers to speak directly to regional audiences, while alsoairing more-generic advertising on TV for a national audience, says González of AHAA. Radio ads, for example, can use a voiceover in anaccent of local Hispanic residents or use local jargon to increase brand appeal.

In the New York City region, auto dealership Paragon Honda of Woodside, N.Y., has found success with generic messages underscoringHispanic family and community values in its advertising aimed at an increasingly wide array of national Hispanic origins, says BrianBenstock, vice president and general manager.

Spanish-language TV spots show a family in a Honda en route to a sports event, while the dealership's general sales manager, JasonGraciano, doubles as its spokesman on radio and TV, to emphasize the company's role as a neighbor in the community. Graciano, thesuccessful son of Dominican immigrants, resonates with the aspirations of immigrants of all origins. “He's become a local celebrity,”Benstock says.

Cost-efficiency and reach are also key. Paragon's ads on news shows on Univision and Telemundo, the two biggest Hispanic networks,hit about 90 percent of the dealership's customer target of Hispanic men, whereas it would take buying commercial time on sevenmainstream stations to reach about 70 percent of general-market males, Benstock says.

“Fully a third of our marketing budget goes on Hispanic. You get a good return on investment,” Benstock says.

As the Hispanic population matures, market segmentation is expected to fall more along social class lines than national origin. In 2012,Latinos earning $50,000 to $100,000 annually accounted for 29 percent of the U.S. Hispanic population, or 15 million people. By 2050, 35million Hispanics are expected to fall into this group. Luxury automakers, alcoholic beverage producers and the travel industry arestarting to pay attention to this market, which will form a new consumer segment requiring its own specific outreach.

Despite differences within the Hispanic market, a general rule applies: “You have to market to commonalities,” says Santiago of SantiagoSolutions Group.

Does Hispanic advertising and marketing have to be in Spanish?

Taco Bell used to tell consumers to “Think Outside the Bun.” Now it wants them to “Live Más.” The Mexican-style fast-food chainswitched slogans in 2012 from a very Anglo-centric play on a common saying denoting originality—“think outside the box”—to a simple

18

19

20

21

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 7 of 20Hispanic MarketingSAGE Business Researcher

Fast-food chain Taco Bell has switched its slogan from “ThinkOutside the Bun” to the mixed-language “Live Más.”

In a bilingual 2013 ad that aired on both Spanish-language andEnglish-language television, men play soccer by the light of aMcDonald's restaurant sign.

bilingual phrase—“más” means “more” in Spanish—underscoring richness of experience. The slogan's conceit is that although it'sunderstood by all, the use of a Spanish word jumps out at Hispanics.

The concept, dubbed “winking,” is increasingly employed because it enablesbrands to use a message for a mainstream audience while at the same timefiguratively “winking” at Hispanics with a word, expression or image thatspeaks directly to them, subtly suggesting that the brand “gets it” about Latinoculture, Korzenny and other Hispanic marketing experts say.

Until recently, “Hispanic marketing” has meant advertising in Spanish, but thatis starting to change. Winking is part of the larger question of whetheradvertisers should use English, Spanish or both in Hispanic-orientedmarketing, an issue that is gaining new urgency because of the fast-growingpopulation of English-dominant Hispanics. They tend to skew younger,making them a coveted market for companies seeking to build brandloyalty. The answer depends on the target audience and on how themessage is crafted.

To reach English-dominant Hispanics, marketers are trying a variety of dual-market strategies, such as winking slogans, subtitles and Spanglish, mixing Spanish and English dialogue. “Ideally, it's a mix of castingHispanic actors and speaking in the normal way Hispanics speak—jumping back-and-forth between Spanish and English,” saysZubizarreta of Zubi Advertising Services.

The risk to this approach lies in alienating the mainstream culture. When Coca-Cola aired its “America the Beautiful” commercial sung inseven languages, including Spanish, during the 2014 Super Bowl, it ignited a firestorm of criticism, mainly on the Internet. However,marketing experts say that given the growth of the Hispanic population, the upside to bilingual ads is greater than the risk, and they expectthe trend to continue. “It's a powerful approach,” Korzenny says.

Bilingual combinations are most effective when the underlying theme of the ad is so universal that the language of the dialogue becomessecondary to the overall message.

In another Coca-Cola commercial aired during the 2012 Super Bowl, a multicultural group of children sing the Oasis song “Whatever” inEnglish as images superimposed with Spanish subtitles flash on the screen to underscore the commercial's title, “Reasons to Believe” inthe world. (That commercial did not spark the backlash that resulted from the “America the Beautiful” ad.)

McDonald's 2013 “Match” commercial features a group of Latino men playingsoccer, yelling in a buzz of Spanish, but when the lights go out, a player usessimple Spanish and English words to plead that the lights be turned on (thelights are the McDonald's sign), and then a slogan appears in English. Thead was aired on both Spanish-language and English-language TV.

Another McDonald's commercial, “First Customer,” aired during the 2014Oscars, has a Hispanic teenager starting his first job at the restaurant andbeing embarrassed when his doting parents roll up to the drive-by window,speaking both Spanish and English.

Such transcultural campaigns can be especially effective. “Cross-culturalcampaigns based on a Hispanic insight can be relevant to everybody, butbecause of the insight, they are especially relevant to Hispanics,” says Burgosof TNS.

Despite the growth in English use, Spanish-language marketing will remain animportant avenue to reach Hispanics, given language retention and ongoing immigration from Latin America, according to marketers.Brands also like to build loyalty among first-generation immigrants that can carry into other generations. The Internet takes that a stepfurther—Spanish-language websites create brand loyalty and familiarity in Latin American countries before people emigrate, saysKutchera of Latino Link Advisors. “If you're not buying Spanish-language media, you're missing a good portion of the population,”Zubizarreta says.

Younger Hispanics More Likely to Speak English

Percentages of Hispanic adults who mainly use English, Spanish or both, 2013

22

23

24

25

26

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 8 of 20Hispanic MarketingSAGE Business Researcher

Note: Totals may not add to 100 percent due to rounding.

Source: Jens Manuel Krogstad and Ana Gonzalez-Barrera, “A majority of English-speaking Hispanics in the U.S. are bilingual,” Pew Research Center,March 24, 2015, http://tinyurl.com/m66w8dn

About 40 percent of Hispanic adults younger than 30 or older than 64 are bilingual, compared with about one-third of those between 30 and 64 years old. Hispanics under 30 are also more likely to speak mainly Englishthan their older peers.

While Spanish-preferring consumers may be able to understand overall marketing messages and simple dialogue in English, as in theMcDonald's commercials, advertisers must speak to them in their own language if they want to make a more complete connection to abrand, he says.

Financial service firms, for example, see the Hispanic community as an opportunity because most Latin American immigrants had littleexposure to banking and insurance in their home countries. Spanish is the preferred language to reach them because these products andservices require explanation to familiarize consumers with what they are and how they work.

“We've focused on the Spanish-preferring and Spanish-dominant tax filers and non-filers as they represented the largest opportunity forgrowth,” said Angela Malloy, multicultural marketing manager for H&R Block, the tax preparation service company. “Immigrants to theUnited States who are new to the concept of taxes are more comfortable going through these processes in their native language.”

Because many of these consumers don't have bank accounts, the company has taken “a more public educational approach with much ofour online content as we adapt it for users who know less about the banking system,” Malloy said.

As the Hispanic market becomes increasingly fragmented, companies need to decide exactly who their primary target audience is beforedeciding whether to use Spanish, English, or both, in advertising materials, marketers say. “We used to treat Hispanics as a silosegment,” Burgos says. “But the market is becoming more integrated, and marketing has to be more sophisticated.”

BackgroundUnderstanding Origins

Swedish vodka maker Absolut's print ad campaign in Mexico was simple: It showed a pre-1848 map of North America, when Mexicoencompassed California, Nevada, Arizona, Utah, Colorado, New Mexico and Texas. The slogan reads, in English, “In an Absolut world,”implying that an “absolute” or perfect world is one where almost half of the United States belongs to Mexico. The 2008 ad was a hit—ittapped a vein of patriotism and simmering resentment many Mexicans hold toward their large northern neighbor, although it sparked callsfor a boycott by some people in the United States.

27

28

29

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 9 of 20Hispanic MarketingSAGE Business Researcher

The United States is perhaps coming full circle as the country becomes increasingly Latino. A complex set of factors shapes today'sHispanic demographic: Spanish colonial antecedents that gave rise to still prevailing social mores, customs and attitudes; economic andpolitical forces in Latin America and United States; and the immigration-driven experience of absorbing white, Anglo-Saxon Protestantideals. To develop marketing messages that resonate fully with Latinos, advertisers need to understand where Hispanics come from,marketing experts say. Among the largest groups of Hispanics in the United States:

“The border crossed us”: The Hispanic roots of the United States predate its Anglo antecedents. “Historically speaking, the firstgroup of people who became ‘Americans’ were of Mexican or Spanish descent,” said Chiqui Cartagena in her book “Latino Boom II:Catch the Biggest Demographic Wave Since the Baby Boom.” St. Augustine, Fla., was founded in 1565 by Spain, long beforeEnglish colonists founded Jamestown in 1607. As the Absolut ad succinctly pointed out, Mexicans occupied much of the U.S.Southwest until the Mexican-American War of 1846–48, which ended with Mexico ceding its northernmost territory to the UnitedStates, and the U.S. granting citizenship to 75,000 to 100,000 Mexicans who remained north of the new border. Today, it is notuncommon to find Southwestern Hispanic families who can trace their roots back five or six generations.

Mexico: An influx of Mexican immigrants accompanied the Gold Rush of the mid-19th century, when about 10,000 Mexicans headedto California. Later in the century, the railroad opened up the Western states to industrialization and demand for labor intensified. By1900, 100,000 Mexicans had emigrated. The 1910 Mexican revolution and ongoing industrial development brought thousands more.By 1930, an estimated 1.5 million Mexicans were living in the United States, but the Depression led to the forced repatriation of350,000 to 500,000 of them. World War II reversed this trend. In 1942, the U.S. government instituted the “bracero” guest-workerprogram to bring Mexican laborers to fill jobs vacated by servicemen. The program is seen as the start of modern Mexicanimmigration, both legal and illegal, as jobs spurred thousands to migrate. By 1960, 4 million Mexicans were living in the UnitedStates. In 2012, that number was 34 million.

Puerto Rico: The second-largest Latino group hails from Puerto Rico, which became a U.S. territory in 1898 after the Spanish-American War. In 1917, Puerto Ricans were granted U.S. citizenship and started migrating to the mainland, mainly New York.Immigration continued moderately until after World War II, when it mushroomed, due to the island's worsening economy. By 1960, thePuerto Rican population in the 50 states had grown to 887,000 from fewer than 70,000 in 1940. In 2012, it numbered 5 million.(Dominicans are another big Latino population in New York City. They are the nation's fifth-largest Hispanic group with 1.6million.)

Cuba: Political upheaval propelled the emigration of Cubans, the third-largest Latino group. In 1950, fewer than 71,000 Cubanswere living in the United States. By 1960, 163,000 were, spurred by the Communist revolution. Another huge influx of Cubanspushed the population to 638,000 by 1970. In 1980, another 125,000 arrived in the Mariel boatlift. The 2012 Cuban immigrantpopulation totaled nearly 2 million. The bulk settled in Florida.

Central America: In 1970s and '80s, a fourth group arrived en masse from Central America. Civil wars drove hundreds ofthousands of Salvadorans, Guatemalans, Nicaraguans and Hondurans north, many undocumented. By 1990, the U.S. CentralAmerican population totaled 1.3 million. Salvadorans were the fourth-largest Latino group with 2 million, Guatemalans, the sixth-largest with 1.2 million, in 2012.

South America: In the 1980s and '90s, South Americans started emigrating due to political and economic factors. TheseColombians, Venezuelans, Argentines and others have tended to be more educated and affluent than other Latino immigrants. Manyhave settled in South Florida and New York. Colombians are the most numerous, at 1 million.

The Melting Pot

Most brands paid scant attention to Hispanic immigrants in the 1960s and '70s even though the population was mushrooming. Accordingto the prevailing “melting pot” theory of assimilation, Hispanics would soon lose their ethnicity and blend indistinguishably into Americanmass culture, as European immigrant groups had supposedly done.

The early '60s saw two important developments in the Hispanic market: the launch of the first Spanish-language television network,Spanish International Network (SIN), which later morphed into Univision Communications, and the first Hispanic advertising agency, NewYork's Spanish Advertising & Marketing Services. Clients reaching out to Hispanics were primarily local businesses: La Flor de MayoExpress, a New York-based moving company, and Banco de Ponce, a Puerto Rican bank, for instance. Except for a handful of nationaladvertisers, including the Rice Growers Association of California and Eastern Brewing Co., brands did not view U.S. Latinos as a viablemarket. One early Hispanic marketing entrepreneur, Alicia Conill, recalled to author Arlene Dávila how she conducted door-to-doorinterviews in New York City to persuade Campbell's Soup that Hispanics used its products, although differently than intended—undiluted,as a seasoned base for stews. Campbell's later hired an agency to market to Hispanics.

After television emerged as an advertising force in the mid-'60s, a few larger companies gradually targeted Hispanic consumers—Colgate-Palmolive, Lorillard (cigarettes), and Libby, McNeill & Libby (canned fruit and vegetables).

Advertising in this era started tropes still used in today's Hispanic advertising—images of grandmothers, mustached men, and women

30

31

32

33 34

35 36

37

3839

4041

42 43

4445

46

47

48

49

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 10 of 20Hispanic MarketingSAGE Business Researcher

cooking or caring for children were common. A 1970s Fab detergent commercial, for instance, showed a grandmother demonstratingto a grandchild that she relies on Fab because she used it back in her home country.

The Salad Bowl

The 1980 census was a watershed in Hispanic marketing. For the first time, the Latino population was counted in aggregate, and thenumber was considered astonishing—10 million. A “salad bowl” metaphor replaced the melting pot, Burgos says: Each ethnic culturecontributes its own flavor to the bowl to make a zesty combination.

TV network SIN in 1981 commissioned the first market research study of Hispanic consumers. Armed with facts and figures, Hispanicmarketing agencies presented their case to companies that it was a market worth spending advertising dollars on. Procter & Gamble,Coca-Cola, Del Monte, Buick, Disneyland California and the California Milk Advisory Board were among the market's entrants in the early'80s.

“We had to go out and educate clients and beg for Hispanic dollars,” recalls González of AHAA. “Then they'd say, ‘Why can't we justtranslate it?’ Big brands got smart faster.”

Various perceptions of Hispanics colored advertisers' campaigns. The automotive industry, for example, concentrated Hispanic outreachon used cars, believing Latinos couldn't afford new ones.

Media to reach Hispanics were also limited. Nestlé sponsored a promotion on “Sábado Gigante,” a Saturday night family variety show, tomarket its strawberry-flavored Quik to Latino children because there was no programming for Hispanic kids, says Greenwald of NYU. Thepromotion consisted of having kids voting on adult contestants in a talent contest by shaking cans of Quik in the air and singing a jingle inSpanish, “Mom says yes if it's Nestlé Quik.” The campaign also appealed to mothers trying to get children to drink milk. Hispanic salessoared. “I've never seen such a response,” Greenwald says.

In the 1990s, more big corporate players entered the Hispanic market, including Allstate, Bank of America and AT&T, but many othersstayed on the sidelines or ran hot and cold depending on the marketing manager of the moment.

Chicken Soup

The 2000 census changed that with the finding that Hispanics numbered 40 million, and at 14 percent of the nation's population formed thenation's biggest minority. Hispanic buying power and household wealth were also climbing. In 2003, Advertising Age started trackingHispanic advertising spending, estimating it at $3.7 billion. That figure rose to $4 billion in 2004 with a host of new advertisers. Financialservices alone upped its Hispanic spending by 74 percent from 2003 to 2004.

As advertising rose, so did the visibility of Latino culture for mainstream audiences. From celebrities such as Jennifer Lopez and RickyMartin to salsa (both the dance and the condiment), Hispanic became cool. Hispanic media boomed with new broadcast and cable TVnetworks such as Estrella TV (Liberman Broadcasting), Galavisión (Univision) and Azteca América (Mexico's TV Azteca).

The Latino assimilation model has now come to resemble “chicken soup,” Burgos says. Meat and vegetables are the ethnicities retainingtheir own flavor, yet enriching the broth that is the shared American culture. “Hispanics have come out of the closet, and become proud oftheir heritage,” he says.

Current SituationMedia Evolution

With 107 radio and television stations, Entravisión Communications is one of the nation's heavyweight Spanish-language mediacompanies, but now English is going to be part of the mix. The company plans to start an English-language website in late 2015 tocover the 2016 presidential race with content aimed at Hispanic voters.

“We have to speak to different audiences,” says Hilda García, vice president of multimedia content and community engagement for theSanta Monica, Calif.-based company. “People who vote aren't going to be voting on immigration issues. They're going to be voting onhealth care, education, jobs.”

4950

51

52

53

54

55

56

57

5859

60

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 11 of 20Hispanic MarketingSAGE Business Researcher

Guest and staff of Entravisión, a Spanish-language media company that plans to expand into English-language content aimedat the Hispanic market, gather in 2014 to watch a Spanish debate between candidates for a Colorado congressional seat.(Brent Lewis/The Denver Post/Getty Images)

English-dominant millennial Hispanics represent the fastest-growing portion of the Latino demographic. Sixty percent of Latino growthcame from U.S. births between 2000 and 2010, and 800,000 Hispanics entered adulthood in 2014, a number predicted to rise to 1 millionannually in coming years. Those numbers are forcing Hispanic-market companies to broaden their scope or face losing market share,as well as luring a host of new competitors eager to tap this emerging market. It's also started a debate within the Hispanic media andmarketing industry on how best to reach these consumers.

“This started putting in question the cornerstone of the industry, which is Spanish-language,” says Alcocer of LatinWorks. “Now thatHispanics speak English, what do we do?”

This evolution is heavily affecting the media industry. A host of websites and TV channels have cropped up since the 2010 census, aimingat English-preferring Hispanics. In 2010, Fox launched Fox News Latino, an English Hispanic website, followed by The Huffington Post'ssimilar news and opinion site, Latino Voices, in 2011. The trend has since intensified. In 2014, the top selling Spanish-languagepublication, People en español, included an English-language insert in a test bid to lure Hispanic millennials.

In television, Univision and ABC joined forces in 2013 to create Fusion, a channel in English with Hispanic-interest content. Univisionalso has a stake in El Rey Network, launched in 2013 with scripted and unscripted programming designed to appeal to Hispanics inEnglish. Not all such bicultural outlets have been successful, however. Website NBC Latino and CNN Latino TV, syndicated programmingblock, both closed in 2014 after a year of operations. And Spanish-language media are far from disappearing. Fox began Spanish-language broadcast network MundoFox in 2012 in partnership with Colombia's RCN Televisión.

Some brands are testing a new direction for marketing to bilinguals with a concept known as the “total market” approach. This strategypivots around commonalities between consumer groups, not differences, and treats multicultural ethnicities as the new Americanmainstream. Companies, therefore, can use the same marketing concept to reach Hispanic and mainstream consumers via a multiculturalcast, bilingual dialogue or even direct translation. In a LatinWorks “total market”-style commercial for Starburst candy, a Hispanic teenstands silently face to face with a llama, both chewing; then the boy feeds the llama a Starburst. The ad reaches both mainstream andHispanic audiences with a special nod to the latter due to the llama, a South American animal, and a Hispanic-looking teenager.

Embraced by growing number of brands, including Southern California Gas, Corona beer, the Texas Lottery and Target, this strategy hasbeen viewed with skepticism by some in the Hispanic advertising industry, who see it as a one-size-fits-all approach that may seem cost-efficient to budget-minded advertisers but misses the point of developing culturally relevant marketing messages. “There are already a lotof misconceptions about Hispanic. This blanket approach confuses marketers even more,” says Hernán Tagliani, president and CEO of

61

62

6364

65

6667

68

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 12 of 20Hispanic MarketingSAGE Business Researcher

In a TV ad designed to appeal to both the Hispanic andmainstream U.S. markets, a teenager and a llama share apackage of Starburst candy.

The Group Advertising, a Hispanic agency in Orlando, Fla.

Total market proponents respond that critics may be more worried aboutSpanish-language advertising budgets—the bread and butter of Hispanicagency revenue—being reduced. “People are nervous,” says Alcocer ofLatinWorks.

But Tagliani says cultural nuance is important. He points to the Toyota tagline“Moving Forward,” which was tweaked in the Hispanic campaign to “VayamosJuntos” (let's go together), to appeal to Hispanics' more social and familialculture. “You have to transcreate, not translate,” Tagliani says.

The key is knowing who the brand's target consumer is, and using languageas a tactic, not a strategy, Alcocer says. “Hispanic teenagers are going tospeak English because of school. A Hispanic teenager is a teenager first, aLatino second. You have to appeal to the teen mindset,” he says.

Technology has also opened up new paths to reach Hispanic consumers.Hispanics rank higher than the general market in smartphone ownership andthey are more likely to download apps, stream video, listen to music, playgames and chat on smartphones than the general market. That doesn't

apply only to millennials—text messaging and Internet phone services such as Skype are popular with older Hispanics keeping up withrelatives in their countries of origin, says Kutchera, author of “Latino Link: Building Brands Online with Hispanic Communities andContent.”

“Smart phones have become cheaper and larger, so that's the first device they go to for access to the Internet,” he says.

Companies are catching on not only with traditional Spanish-language websites for shopping like www.espanol.BestBuy.com and brand-related information such as recipe-laden ComidaKraft.com, but also with streaming television programming, such as DirecTV's payservice YaVeo, English-subtitled telenovela site dramafever.com/latino and hulu.com/latino. Entravisión is testing the waters with Internetradio. “We're doing a lot of content for smartphones—streaming radio apps and radio talent,” García says.

Looking AheadRising Influence

As the U.S. Hispanic population grows in size, marketing experts say Latinos will become more entrenched in mainstream American lifeas a critical mass of immigrants moves into upwardly mobile, English-speaking second and third generations, and beyond.

For companies, reaching Hispanics will mean more targeted marketing strategies as these changing demographics turn niches intosizable markets in and of themselves—English-dominant speakers vs. Spanish-dominant; luxury-seeking consumers vs. value-oriented;youth vs. mature.

Specialists in Latino marketing say this evolution will make Hispanics more enticing to a wider array of advertisers in coming years, suchas upscale consumer brands and financial services like investment, college savings and retirement planning, which have traditionally notviewed Latinos as a potential market. Some other sectors seen as naturals for Hispanic market growth: pharmaceuticals, casual diningand real estate. “Marketers will be focused on Hispanic because of the sheer numbers in all categories,” says Santiago of SantiagoSolutions Group.

As Hispanics grow increasingly mainstream, a major challenge for Hispanic marketing agencies will be to convince brands that they needto target Latinos—they may think they'll net some of that growth naturally, when cultural nuance contained in Hispanic-specific marketingwill still be needed to capture Hispanic consumers, Santiago says.

More companies, however, are considering Hispanic consumers from the start of their marketing campaigns, not as an afterthought. Thiseven extends to product development, including a mango flavor in a line of smoothies to appeal to the Hispanic palate, as well as that of alarger consumer base, says Burgos of TNS. “Companies are discussing Hispanic earlier in the process, in the foundational research,” hesays.

The growth of the bilingual population means cross-cultural advertising will become more commonplace, some predict. With Latinosincreasingly influencing popular culture, Hispanics will be accepted more as part of the mainstream. That will lead companies to use moreHispanic celebrities as “crossover” spokespeople for products aimed at general consumers. “There's more acceptance and interest inbeing respectful of the culture,” says González of AHAA.

Marketers will also have a broad menu of vehicles to reach Hispanics, from Spanish-language radio and TV to hybrid, Hispanic-flavored

69

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 13 of 20Hispanic MarketingSAGE Business Researcher

English media, such as the Fusion news channel, to traditional mainstream media that Hispanics also consume. “Before there was justSpanish or English, but now there are so many bilingual channels and more opportunities to target Latinos,” says Perez of Total MarketSolutions.

There's no question that the view of the Hispanic consumers as a niche market is being turned on its head as companies see it as the keyto growth in future decades. Says Zubizarreta of Zubi Advertising Services, “Things are revolutionizing.”

About the AuthorChristina Hoag, a former foreign correspondent who is fluent in Spanish and lives in Los Angeles, has written about Hispanics for theMiami Herald and the Associated Press. She also has freelanced for The New York Times, Business Week and Financial Times,covering a variety of topics on Latin America.

Chronology 1940s–1950s Modern mass Mexican immigration, legal and illegal, starts.

1942 The “bracero” program allows Mexican farmworkers to work in the United States; it continues until 1964.

1951 Desi Arnaz stars in “I Love Lucy,” the first Hispanic character on English-language TV.

1955 The first full-time Spanish-language TV station launches in San Antonio: KCOR-TV 41.

1960s–1970s Cuban revolution sparks emigration; Hispanic marketing starts in earnest.

1962 Spanish International Network (SIN), the first Spanish-language broadcast TV network, is founded. … The first Hispanicadvertising agency, Spanish Advertising and Marketing Services, forms in New York City.

1968 Hispanic Heritage Week is first observed; it is now National Hispanic Heritage Month, from Sept. 15 to Oct. 15.

1970 The U.S. census includes question on Hispanic origin for first time.

1972 The U.S. government publishes its first Survey of Minority-Owned Business Enterprises, revealing approximately71,000 Mexican-owned businesses.

1979 The U.S. Hispanic Chamber of Commerce is established to represent the fast-growing Latino business community.

1980s–1990s Hispanic population soars to 10 million as Central American wars send hundreds of thousands north; bigcorporate advertisers start investing in Hispanic market.

1980 The Mariel boatlift lands 125,000 Cubans on U.S. shores when Cuba allows Americans to sail to pick up relatives, aswell as inmates of prisons and psychiatric institutions.

1981 Market research firm Yankelovich conducts the first national study of the Latino market, fueling Hispanic advertisingindustry.

1984 NetSpan, the second Spanish-language network, forms; it becomes Telemundo three years later.

1986 Immigration Reform and Control Act grants amnesty to nearly 3 million illegal immigrants in the United States, mostfrom Latin America.

1991 Diet Coke airs one of first commercials using both Spanish and English on English-language TV.

1993 General Motors' Spanish-language commercial for Saturn airs on English-language TV with subtitles.

1998 Association of Hispanic Advertising Agencies forms.

1999 Puerto Rico's Ricky Martin sings in Spanish at the 41st Grammy Awards, signaling Latin music explosion.

2000s Hispanic market booms.

2000 The U.S. census reveals Hispanic population has become the nation's biggest minority group, growing more than 50percent in the previous decade.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 14 of 20Hispanic MarketingSAGE Business Researcher

2001 NBCUniversal acquires Telemundo in a $2.7 billion cash-debt deal.

2003 Advertising Age says companies spend $3.4 billion on Hispanic marketing.

2006 Private investment group acquires Univision, nation's largest Spanish-language media company, for $12.3 billion cash,plus $1.4 billion in debt.

2010s Marketing efforts focus on millennials, English-dominant Hispanics.

2010 Half of nation's population growth is coming from Hispanics, mostly native-born, according to the U.S. census.

2012 Univision variety show “Sábado Gigante,” a staple in U.S. Hispanic popular culture, celebrates its 50th anniversary.

2013 Companies spend $8.3 billion on Hispanic marketing, according to Advertising Age.

2014 The “total market approach” targeting English-speaking Hispanics gains traction. … The Obama administrationannounces a re-establishment of ties with Cuba.

ResourcesBibliography

Books

Burgos, David, and Ola Mobolade, “Marketing to a New Majority: Strategies for a Diverse World,” Palgrave Macmillan, 2011. Multiculturalresearchers detail strategies on reaching minority markets.

Cartagena, Chiqui, “Latino Boom II: Catch the Biggest Demographic Wave Since the Baby Boom,” Worthy Shorts, 2013. The chiefmarketing officer of Univision looks at the Latino explosion in marketing.

Dávila, Arlene, “Latinos, Inc.: The Making and Marketing of a People,” University of California Press, 2012. A New York Universityprofessor examines how the Hispanic market developed.

Korzenny, Felipe, and Betty Ann Korzenny, “Hispanic Marketing: Connecting with the New Latino Consumer,” 2nd ed., Routledge, 2011.The director of the Center for Hispanic Marketing Communication at Florida State University and a researcher expound on howcompanies can break into the Hispanic market.

Kutchera, Joe, “Latino Link: Building Brands Online with Hispanic Communities and Content,” Paramount Market Publishing, 2011. AHispanic market consultant details strategy to reach Hispanics online.

Articles

Gutiérrez, David G., “An Historic Overview of Latino Immigration and the Demographic Transformation of the United States,” in “AmericanLatinos and the Making of the United States: A Theme Study,” National Park Service, Washington, D.C., 2013, pp. 57–75,http://tinyurl.com/pkgfrkj. An essay by the chair of the history department at the University of California, San Diego, traces Hispanicimmigration patterns.

Kelly, Nataly, “Univision's Ratings Win Underlines the Power of Hispanic Marketing,” Harvard Business Review, Aug. 5, 2013,http://tinyurl.com/ocy6k96. An article by the vice president of market development at Smartling, a translation management company, looksat the role of Hispanic media in marketing.

Sebastian, Michael, “People en espanol to Break Its Long Spanish-Only Streak,” Advertising Age, April 22, 2014,http://tinyurl.com/kougodf. A reporter at the advertising industry trade journal details the effort by the Spanish-language magazine to reachEnglish-speaking Hispanics.

Vega, Tanzina, and Bill Carter, “Networks struggle to appeal to Hispanics,” The New York Times, Aug. 5, 2012, http://tinyurl.com/c5p8q5o.An article by Times staff writers looks at mainstream TV networks' efforts to win Hispanic audiences.

Wentz, Laurel, “Captivating McDonald's Spot Highlights Bond With Soccer,” Advertising Age, March 4, 2013, http://tinyurl.com/levtvvh. Themulticultural editor of the advertising agency journal examines a bilingual TV commercial.

Reports and Studies

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 15 of 20Hispanic MarketingSAGE Business Researcher

“America's New Upscale Segment: Latinos!” Association of Hispanic Advertising Agencies, May 2013, http://tinyurl.com/mokhkep. Astudy by the Hispanic advertising industry trade group looks at the rising segment of affluent Hispanics.

“11th Annual Hispanic Fact Pack,” Advertising Age and Crain Communications, July 28, 2014, http://tinyurl.com/lhosgem. An industry tradejournal analyzes Hispanic demographic, media and advertising trends in a report issued annually since 2003.

Brown, Anna, and Eileen Patten, “Statistical Portrait of Hispanics in the United States, 2012,” Pew Research Center, April 29, 2014,http://tinyurl.com/kf6wlgw. Researchers with Pew's Hispanic Trends Project analyze the 2012 American Community Survey from the U.S.Census Bureau.

López, Mark Hugo, and Ana González-Barrera, “What is the future of Spanish in the United States?” Pew Research Center, Sept. 5, 2013,http://tinyurl.com/n3tyku4. The Hispanic Trends Project explores Hispanics' use of language.

Passel, Jeffrey S., D'Vera Cohn and Mark Hugo López, “Hispanics Account for More Than Half of Nation's Growth in Past Decade,” PewResearch Center, March 24, 2011, http://tinyurl.com/kqfbfwn. Researchers with Pew's Hispanic Trends Project analyze results of the 2010U.S. census.

Traina, Chris, and Verena Sisa, “The Hispanic Influence on American Culture,” Conill, 2012, http://tinyurl.com/lkpyxte. A studycommissioned by a California advertising agency looks at Hispanics' influence on mainstream U.S. society.

The Next Step

Advertising

Bond, Shannon, “Hispanics shine bright amid US television's advertising gloom,” Financial Times, March 24, 2015,http://tinyurl.com/n7q7537. Spanish-language television networks have been unaffected by industry-wide declines in ad revenues and liveviewers, thanks to the continued popularity of real-time shows and sports broadcasts.

Max, Sarah, “Tono Studios Helps Marketers Reach Hispanics With Culturally Authentic Ads,” The New York Times, March 25, 2015,http://tinyurl.com/pf2pk4r. More large companies and organizations are using Spanish-language audio studios, such as Santa Monica,Calif.-based Tono Studios, to cater their advertisements to Hispanic viewers.

Shields, Mike, “YouTube Rolls Out Ad Targeting Tool Geared For Hispanic Audiences,” CMO Today, The Wall Street Journal, March 11,2014, http://tinyurl.com/jwx384k. YouTube's recently released Hispanic advertising tool allows brands to purchase online ad space forvideos that will likely appeal to Hispanic viewers.

Culture

Masunaga, Samantha, “Target takes aim at Latinos with new marketing campaign,” Los Angeles Times, April 18, 2015,http://tinyurl.com/n344sa6. To reach Latino consumers, Target Corp. is one of several retailers that have started Spanish-languageadvertising campaigns depicting Hispanic cultural scenes and values.

Tagliani, Hernan, “How to translate the Hispanic culture into big business,” Orlando Business Journal, Feb. 19, 2014,http://tinyurl.com/lbv9lxh. A communications expert says advertisers seeking to reach Hispanic audiences must account for cultural valuesand nuances related to family, spirituality and language in their messaging.

Yoon, Eddie, “The Mistake Companies Make When Marketing to Different Cultures,” Harvard Business Review, Feb. 17, 2015,http://tinyurl.com/n6a8bza. Companies often fail to reach Asian and Hispanic audiences because their messaging excludes members ofother ethnic groups, according to a principal consultant with The Cambridge Group.

Millennials

Elejalde-Ruiz, Alexia, “Hispanics play large part in beauty spending, Nielsen says,” Chicago Tribune, Feb. 20, 2015,http://tinyurl.com/nhakmfb. Millennials were largely responsible for the 7 percent increase in cosmetics purchases among Hispanicconsumers in 2014, according to the senior vice president of global consumer insight at market ratings company Nielsen.

Salzman, Marian, “The new power of millennial Hispanics,” CNBC, Aug. 13, 2014, http://tinyurl.com/mcrqxrs. A majority of Hispanic adultsunder age 24 in the southwestern United States indicated they were optimistic about their futures and were committed to living in theirhome states, a survey by a global public relations firm found.

Thompson, Nicole Akoukou, “Hispanic Millennials are Not Acculturating, ‘They're Shaping the Broader Culture, They're at the Center ofYour Brand,’” Latin Post, Oct. 1, 2014, http://tinyurl.com/jwqgcd4. The president of a marketing firm says brand loyalty and social mediainfluence are among the most important components of marketing to Hispanic millennials.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 16 of 20Hispanic MarketingSAGE Business Researcher

Spanish Speakers

Chappell, Lindsay, “Nissan Times Spanish-Language Effort to World Cup Kickoff,” Advertising Age, June 12, 2014,http://tinyurl.com/lx8bcxq. Japanese car manufacturer Nissan capitalized on the popularity of soccer among Hispanic consumers byrunning a Spanish-language advertisement during the 2014 World Cup.

Dahlberg, Nancy, “Open English sets out to conquer U.S. Hispanic market,” Miami Herald, April 17, 2015, http://tinyurl.com/kwgjccv. OpenEnglish, an online English-language school offered in 20 countries, will expand to U.S. cities with growing Spanish-speaking populationsthis spring.

Organizations

American Association of Advertising Agencies 1065 Avenue of the Americas, New York, NY 10018 212-682-2500 www.aaaa.org Trade association for the advertising industry that researches Hispanic marketing, including media, investment and trends.

Association of Hispanic Advertising Agencies 8280 Willow Oaks Corporate Drive, Suite 600, Fairfax, VA 22031 703-745-5531 www.ahaa.org Trade association for companies involved in Hispanic marketing.

Association of National Advertisers 708 3rd Ave., 33rd Floor, New York, NY 10017 212-697-5950 www.ana.net Trade association for companies engaged in consumer marketing; holds annual Multicultural Marketing & Diversity Conference andMulticultural Thought Leadership Forum.

Cable Television Advertising Bureau 830 3rd Ave., 2nd Floor, New York, NY 10022 212-508-1200 www.thecab.tv Trade association for advertising-supported cable television industry; tracks Hispanic media consumption and advertising spending.

Hispanic Association on Corporate Responsibility 1444 1st St., N.W., Suite 850, Washington, DC 20005 202-682-4012 www.hacr.org Organization advocating corporate social responsibility in the Hispanic community, chiefly in employment, procurement, philanthropy andgovernance.

Interactive Advertising Bureau 116 E. 27th St., 7th Floor, New York, NY 10016 212-380-4700 www.iab.net Trade association of technology and media companies involved in digital marketing; its Multicultural Council researches and advocatesHispanic market best practices.

National Hispanic Corporate Council 1050 Connecticut Ave., N.W., 10th Floor, Washington, DC 20036 202-772-1100 www.nhcchq.org Informational clearinghouse for Hispanic issues, including diversity, human resources, suppliers, marketing and community relations, forFortune 1000 and S&P 500 companies.

National Hispana Leadership Institute P.O. Box 70061, Washington, DC 20024 703-527-6007 www.nhli.org Organization developing Hispanic women as leaders in corporate and other arenas.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 17 of 20Hispanic MarketingSAGE Business Researcher

National Society of Hispanic MBAs 450 E. John Carpenter Freeway, Suite 200, Irving, TX 75052 214-596-9338 www.nshmba.org Organization that builds and advocates Hispanic corporate leadership.

Pew Research Center Hispanic Trends Project 1615 L St., N.W., Suite 700, Washington, DC 20036 202-419-4300 www.pewhispanic.org Research institute studying Hispanic trends and issues, and conducting public opinion surveys.

Notes[1] Jens Manuel Krogstad, “With fewer new arrivals, Census lowers Hispanic population projections,” Pew Research Center, Dec. 12,2014, http://tinyurl.com/kyo8yxo.

[2] Anna Brown, “U.S. Hispanic and Asian populations growing, but for different reasons,” Pew Research Center, June 26, 2014,http://tinyurl.com/lde27c9.

[3] Jeffrey S. Passel, D'Vera Cohn and Mark Hugo Lopez, “Hispanics Account for More Than Half of Nation's Growth in Past Decade,”Pew Research Center, March 24, 2011, http://tinyurl.com/kqfbfwn.

[4] “Hispanic Fact Pack: Annual Guide to Hispanic Advertising & Marketing 2004 Edition,” Advertising Age, 2004,http://tinyurl.com/k7u8tgw.

[5] “Hispanic Fact Pack: Annual Guide to Hispanic Advertising & Marketing 2014 Edition,” Advertising Age, July 28, 2014, p. 8,http://tinyurl.com/mfm5743.

[6] Mark Hugo López and Ana González-Barrera, “What is the future of Spanish in the United States?” Pew Research Center, Sept. 5,2013, http://tinyurl.com/n3tyku4.

[7] Ibid.

[8] Ibid.

[9] Mark Hugo López, Ana González-Barrera and Danielle Cuddington, “Diverse Origins: The Nation's 14 Largest Hispanic-OriginGroups,” Pew Research Center, June 19, 2013, http://tinyurl.com/m77y3br.

[10] Mark Hugo López, “5 demographic realities behind the creation of Univision/ABC News' ‘Fusion’ channel,” Pew Research Center,Oct. 28, 2013, http://tinyurl.com/l8n7zr6.

[11] Mark Hugo López and Richard Fry, “Among recent high school grads, Hispanic college enrollment rate surpasses that of whites,” PewResearch Center, Sept. 4, 2013, http://tinyurl.com/oc3jz2x.

[12] “Cell Phone and Smartphone Ownership Demographics,” Pew Research Center, January 2014, http://tinyurl.com/n7vmxbg.

[13] M. Isabel Valdés, “Marketing to American Latinos: A Guide to the In-Culture Approach Part II,” 2002, http://tinyurl.com/l4nuk66.

[14] “Hispanic Consumers are the ‘Foundation’ for Beauty Sales,” The Nielsen Co., Feb 23, 2015, http://tinyurl.com/kp647gx.

[15] Ibid.

[16] Brian Bueno, “The Growing Hispanic Population Means Big Business for These 7 Sectors,” IbisWorld, August 2011,http://tinyurl.com/md9pqpm.

[17] Rebecca T. Adeigbe et al., “Food & Beverage Marketing to Latinos: A Systematic Literature Review,” Journal of Health Education &Behavior, Dec. 10, 2014, http://tinyurl.com/njqfp5t.

[18] Anna Brown and Eileen Patten, “Statistical Portrait of the Foreign-Born Population in the United States,” Pew Research Center, April29, 2014, Table 13a, http://tinyurl.com/ntlsauy.

[19] Jeninne Lee-St. John, “Selling in Spanglish,” Time, March 28, 2005, http://tinyurl.com/lzrr458.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 18 of 20Hispanic MarketingSAGE Business Researcher

[20] “America's New Upscale Segment: Latinos!” Association of Hispanic Advertising Agencies, Nielsen Research, May 30, 2013,http://tinyurl.com/mx5urec.

[21] Maureen Morrison, “Taco Bell to Exchange ‘Think Outside the Bun’ for ‘Live Más,’” Advertising Age, Feb. 21, 2012,http://tinyurl.com/opbr52g.

[22] Richard Fry and Jeffrey S. Passel, “Latino Children: A Majority Are U.S. Born Offspring of Immigrants,” Pew Research Center, May28, 2009, http://tinyurl.com/kml49u4.

[23] OasisOfficialMusic, “Comercial Coca-Cola: ‘Razones Para Creer,’” YouTube, Jan. 11, 2011, http://tinyurl.com/pnzxzyp.

[24] Laurel Wentz, “Captivating McDonald's Spot Highlights Bond With Soccer,” Advertising Age, March 4, 2013, http://tinyurl.com/levtvvh.

[25] Alma Agency, “McDonald's First Customer TV,” YouTube, Feb. 14, 2014, http://tinyurl.com/ko9vbfx.

[26] Mark Hugo López and Anna Barrera, “What is the future of Spanish in the United States?” Pew Research Center, Sept. 5, 2013,http://tinyurl.com/n3tyku4.

[27] Joe Kutchera, “Latino Link: Building Brands Online with Hispanic Communities and Content,” 2011, pp. 22–23.

[28] Ibid.

[29] Ibid., pp. 3–4.

[30] Chiqui Cartagena, “Latino Boom II: Catch the Biggest Demographic Wave Since the Baby Boom,” 2013, p. 20.

[31] David G. Gutiérrez, “An Historic Overview of Latino Immigration and the Demographic Transformation of the United States,” NationalPark Service, Latino Theme Study, undated, accessed April 10, 2015, http://tinyurl.com/n6fvnjy.

[32] Ibid.

[33] Ibid.

[34] Anna Brown and Eileen Patten, “Statistical Portrait of Hispanics in the United States, 2012,” Pew Research Center, April 29, 2014,http://tinyurl.com/kcbyla3.

[35] Gutiérrez, op. cit.

[36] “Statistical Portrait of Hispanics in the United States, 2012,” Table 6, op. cit.

[37] Ibid.

[38] Gutiérrez, op. cit.

[39] “Statistical Portrait of Hispanics in the United States, 2012,” op. cit.

[40] Gutiérrez, op. cit.

[41] “Statistical Portrait of Hispanics in the United States, 2012,” op. cit.

[42] Gutiérrez, op. cit.

[43] “Statistical Portrait of Hispanics in the United States, 2012,” op. cit.

[44] David Burgos and Ola Mobolade, “Marketing to the New Majority: Strategies for a Diverse World,” 2011, pp. 95–96.

[45] Arlene Dávila, “Latinos, Inc.: The Making and Marketing of a People,” 2012, p. 92.

[46] Ibid.

[47] Ibid, p. 63.

[48] Ibid.

[49] Ibid.

[50] Ibid, p. 94.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 19 of 20Hispanic MarketingSAGE Business Researcher

[51] Felipe Korzenny and Betty Ann Korzenny, “Hispanic Marketing: Connecting with the New Latino Consumer,” 2011.

[52] Ibid.

[53] Felipe Korzenny and Betty Ann Korzenny, “Hispanic Marketing: A Cultural Perspective,” 2005, p. 291.

[54] Ibid, p. 293.

[55] Ibid, p. 294.

[56] Ibid, p. 297.

[57] “Hispanic Fact Pack: Annual Guide to Hispanic Advertising & Marketing 2005 Edition,” Advertising Age, July 28, 2005,http://tinyurl.com/qdngnub.

[58] Ibid.

[59] Ibid.; Emily Guskin and Monica Anderson, “Developments in the Hispanic Media Market,” Pew Research Center, March 26, 2014,http://tinyurl.com/nfk7xsh.

[60] “About Us,” Entravisión, undated, accessed April 10, 2015, http://tinyurl.com/mkd5dhk.

[61] Jens Manuel Krogstad and Mark Hugo López, “Hispanic Nativity Shift,” Pew Research Center, April 29, 2014,http://tinyurl.com/nzfr2wp.

[62] Ibid.

[63] Emily Guskin and Monica Anderson, “Developments in the Hispanic Media Market,” Pew Research Center, March 26, 2014,http://tinyurl.com/nfk7xsh.

[64] Michael Sebastian, “People en espanol to Break Its Long Spanish-Only Streak,” Advertising Age, April 22, 2014,http://tinyurl.com/kougodf.

[65] López, “5 demographic realities behind the creation of Univision/ABC News' ‘Fusion’ channel,” op. cit.

[66] Guskin and Anderson, op. cit.

[67] Joe Flint, “Mundo Fox,” Los Angeles Times, Jan, 23, 2012, http://tinyurl.com/pupdnga.

[68] “Chewing,” LatinWorks, http://tinyurl.com/nuvs3ut.

[69] “Hispanic Fact Pack: Annual Guide to Hispanic Advertising & Marketing 2014 Edition,” op. cit., p. 34.

©2022 SAGE Publishing, Inc. All Rights Reserved.

Page 20 of 20Hispanic MarketingSAGE Business Researcher