state of spanish language media

The State of Spanish Language Media

2011 Annual Report

The Center for Spanish Language Media

The University of North Texas


2011 Annual Report

A research report compiled by the staff of

The Center for Spanish Language Media The University of North Texas

1155 Union Circle #310589 Denton, TX 76203-5017 940-565-CSLM (2756) [email protected]

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February 2012 The staff of the Center for Spanish Language Media at the University of North Texas is pleased to present this research report entitled The State of Spanish Language Media for 2011. The information in this report was compiled by graduate research assistants and Center faculty, and represents, to the best of our abilities—a summary of activities taking place in the following media industries: radio, television, newspapers, Internet and advertising, and key transactions. The report concludes with a few projections for 2012. The Center for Spanish Language Media was established on September 1, 2006 at the University of North Texas as the first such entity of its kind in the United States, with a three-fold mission of education, research and professional development. The State of Spanish Language Media is part of our research mission, to gather and disseminate research on the key SL media operating in the United States. Any errors or omissions in this report are the responsibility of the Center for Spanish Language Media, and do not reflect the opinions of the University of North Texas. The Center has more research available on our web site at http://www.spanishmedia.unt.edu. As we publish this report, we regret to inform you this may be our last annual compilation. The Center will exhaust our internal funding later this year, and unless we are successful with new grants and external fundraising efforts, we may not be able to continue our activities. If that is the case, it will be a loss for everyone interested in research on Spanish media in the United States. But until that happens, we’ll keep working. We welcome your comments and feedback on this report or other activities via email at [email protected] Dr. Alan B. Albarran, Center Director Christine Paswan, Assistant Director Jessica Perrilliat, Graduate Research Assistant Gabe Otteson, Graduate Research Assistant

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Table of Contents Special Note: A Quick Summary of the 2010 Census Results Relating to Hispanics iv Spanish Language Radio Gabe Otteson 1 Spanish Language Television Jessica Perrilliat 9 Spanish Language Print Gabe Otteson 23 Spanish Language Internet G. Otteson & J. Perrilliat 32 Spanish Language Advertising Jessica Perrilliat 40 SL Mergers and Acquisitions Dr. Alan B. Albarran 48 Projections for 2012 Dr. Alan B. Albarran 50 Note: No permission is needed to cite information from this report as long as authorship credit is given to the Center for Spanish Language Media using the following suggested reference style: Center for Spanish Language Media. (2011). The State of Spanish Language Media.

Denton, TX: Author.

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Special Note:

A Quick Summary of the 2010 Census Results Relating to Hispanics

Throughout this report, we will be referring to the results of the 2010 Census as a foundation for our analysis and especially for future predictions and outlooks. Spanish language media has been growing throughout much of the last decade, so it may not come as much of a surprise that an increase in the Hispanic population coincides with this growth. Census data can be a tad dense to pour over, so here we present the relevant highlights gleaned from the Census Bureau’s 2010 Census Briefs: The Hispanic Population 2010.

- The Hispanic population grew by 43%, with Hispanics accounting for 56% of the population increase in the decade between the 2000 and 2010 Censuses. The Hispanic population is now reported at 50.5 million. This makes up roughly 16% of the US population.

- Not much of a surprise here, the Latino population remains concentrated is the Western and Southern states, with 41% living in the West, and 36% in the South. Hispanics accounted for 29% of the total population in the West, and 16% in the South.

- The Northeast and the Midwest experienced growth too; the regions accounted for 14% and 9% of the Hispanic population, respectively. Hispanics accounted for 13% of the Northeast’s population and 7% of the Midwest’s.

- Growth rates were highest in the South and the Midwest. In the South, the Hispanic population grew 57%, a staggering four times the increase of the total population growth of 14%. The Midwest’s Hispanic population increased by 49%, a mind-boggling twelve times the total population growth in the region (4%).

- Over half of the Hispanic population continues to reside in the states of California, Florida, and Texas.

We have more in-depth Census analysis available on our blog: http://centerforspanishlanguagemedia.blogspot.com/ and the complete 2010 Census Briefs: The Hispanic Population 2010 is available online at the Census Bureau’s website: http://www.census.gov/prod/cen2010/briefs/c2010br-04.pdf

Spanish Language Radio 1

The State of Spanish Language Media, 2011

The State of Spanish Language Media Industries: A Summary of Spanish Language Radio 2011

Gabe Otteson

Center for Spanish Language Media, University of North Texas

At home or away, from dusk to dawn, radio is a valued and primary media platform for Hispanic consumers’ lives (Arbitron, 2010). In spite of the wide variety of alternatives available today, radio continues to have a near universal reach to Hispanics. According to Arbitron’s Hispanic Radio Today 2010 report, radio’s overall reach among Hispanic consumers has remained constant at 94%-96% since Arbitron began studying Hispanic Radio in 2001 (Arbitron, 2010). Regardless of Spanish-dominant or English-dominant language preference, radio reaches at least 91% of Hispanic men and women in all age categories under the age of 65 (Arbitron, 2010). The Pew Research Center’s report The State of the News Media 2011 noted that Spanish language media was faring better in the tough economic environment than their English language counterparts, and radio is no exception (Guskin & Mitchell, 2011). Spanish radio wasn’t immune to revenue drops in 2010-2011, when Spanish radio’s “Big Three” (Univision, Spanish Broadcasting System, and Entravision) all posted revenue loss (Pew Research Center, 2011). Spanish radio continued to grow, but the same difficult economic environment that hurts radio as a whole has slowed Spanish radio’s growth to 0.7% from 2010 to 2011 (Pew Research Center, 2011). Data from the 2010 US Census provide Spanish radio broadcasters with a sense of optimism as articulated by B. Eric Rhodes, publisher of Radio Ink: “This census will turn the tide for Hispanic radio. Because of the growth of the Latino population, its importance as a marketing segment will impact all advertisers in America and all radio groups" (PR Newswire, 2011). PPM – A Follow-Up The PPM controversy that raged among Spanish-language (and other minority broadcasters) since 2008 lingers in 2011. Back in 2009, the House Committee for Oversight and Government Reform subpoenaed information from the Media Ratings Council (an independent industry body that accredits media ratings systems). The information gleaned from subpoena led the Committee to conclude that PPM had “persistent problems” with sampling minority audiences (Shargrin & Warfield, 2009). Lawsuits, later settled, were filed against Arbitron in early 2009 by officials in New York and New Jersey claiming the PPM data “threatened the existence of critical media serving minority communities” (New York Daily News, 2009). In 2010, Spanish Broadcasting System (Verrinder, 2010) and Univision (PR Newswire, 2010) managed to resolve their issues with Arbitron and its PPM system although issues remained with market accreditation, with only 3 markets having been accredited by the Media Ratings Council. By October 2011, the MRC had accredited just 14 out of 48 PPM markets, with the other 34 listed as “Currently under Review” (MRC, 2011). In an interview with Radio Business

Radio



Report, MRC CEO and Executive Director George Ivie said Arbitron’s PPM service is proceeding through the accreditation process slower than usual, saying “It’s a complex thing to accredit a new service and Arbitron is adjusting the service to meet the compliance needs of the MRC – and that’s taking time,” (Radio Business Report, 2011 April 1st). Ivie added that PPM is a unique service and Arbitron’s implementation has evolved over time throughout the accreditation process (Radio Business Report, 2011 April 1st). Arbitron’s Radio Today 2011 report cites the expansion of the PPM service as a key reason for the rating increases of certain Spanish-language formats, seemingly contradicting earlier fears of minority under-representation. Arbitron continues to confidently push its PPM system as the future of radio ratings measurement for all languages. The long road to full accreditation of the PPM system will continue to be an issue to observe for years to come as the process moves on. Radio Listening Habits Among Hispanics, men overall spent more time listening to radio than women, with the exception of teenagers. Time spent listening peaked for both genders in the age group of 45-54. Hispanic men 45-54 spent on average the most time listening to radio at 18 hours 34 minutes per week. Among men the next-highest age groups were 55-64 (18 hours, 26 minutes) and 35-44 (17 hours 18 minutes). These age groups also represented the highest listening for women too, with ages 45-54 at 15 hours, 49 minutes, 55-64 at 14 hours, 50 minutes, and 35-44 at 14 hours, 37 minutes.

Graph 1: Radio Listening Habits among Hispanics

Source: Advertising Age Hispanic Fact Pack 2011



Curiously, girls and young women (12-17 and 18-24) spent more time listening to radio than their male counterparts. Girls 12-17 spent 10 hours 27 minutes (compared to boys’ 8 hours 36 minutes) and young women ages 18-24 spent 13 hours 12 minutes (compared to men 12 hours 50 minutes).

Ratings data for Fall 2011 is not available at press time. Table 1 lists the top five Hispanic radio markets for Fall 2011(Arbitron, 2011-b).

Table 1 ‐ Top Spanish Radio Markets

Market Hispanic Market Rank

Overall Market Rank

Hispanic Population

Los Angeles 1 2 4,438,200

New York 2 1 3,566,600

Miami‐Ft. Lauderdale‐Hollywood

3 12 1,830,400

Houston‐Galveston 4 6 1,674,900

Chicago 5 3 1,528,100

Source: Arbitron Fall 2011 Market Ratings

The top Spanish language radio stations, according to Fall 2010 data, were (in order): WSKQ-FM, a Spanish Tropical format in New York averaging nearly 56,000 listeners per quarter hour; KLVE-FM, a Spanish Contemporary format in Los Angeles averaging over 43,000 listeners per quarter hour; WPAT-FM and WXNY-FM, both Spanish Contemporary formats in New York, averaging 40,000 and 38,000 listeners per quarter hour respectively; and KSCA-FM, a Mexican Regional format in Los Angeles averaging 36,000 listeners per quarter hour. Table 2 ‐ Top Spanish Radio Stations

Station Market Format Owner Average Listeners*

WSKQ‐FM New York Spanish Tropical Spanish Broadcasting System

55,900

KLVE‐FM Los Angeles Spanish Contemporary Univision Communications 43,500

WPAT‐FM New York Spanish Contemporary Spanish Broadcasting System

40,200

WXNY‐FM New York Spanish Contemporary Univision Communications 38,200

KSCA‐FM Los Angeles Mexican Regional Univision Communications 36,200

* per average quarter hour




Spanish radio formats continued to gain ground in 2010-2011. The Mexican Regional format continued to be the top choice among Spanish language listeners, and among the top four formats overall in reaching adults 25-34; 32% of its audience composition falls under this age category. Arbitron’s Radio Today 2011 report shows that Mexican Regional was the only major format to post an increase in time-spent listening (TSL) from year to year. Mexican Regional was number 1 in TSL for adults 18-34 and 25-54; number 2 for persons 12-24 and tied for second for adults 35-64 (Arbitron, 2011-a). Arbitron credits their PPM measurement system in part for the increase, noting that “The format’s data also reflect a number of Univision stations in PPM markets that were previously unencoded” (Arbitron, 2011-a p.8). In PPM markets, Mexican Regional outperformed its overall share and posted its highest one-year gain in five years. The Spanish Contemporary format added to its market share for the first time since Spring 2005 with nearly all of its ratings data coming from PPM markets. Nearly half of the format’s audience (48%) was between 25 and 44 years old; with 25% falling between 25 and 34, and 23% between 35 and 44. Compared to recent years, Spanish Contemporary’s listener profile has been gradually shifting towards an older, more mature demographic. One other interesting note: the audience for Spanish Contemporary had an unusual audience breakdown by daypart. Spanish Contemporary stations scored highest on weekends and lowest in mornings; the opposite of radio’s traditional listening structure (Arbitron, 2011-a). The Spanish Adult Hits format posted its highest ratings to date, increasing its audience share from 0.8% to 1.1%. SAH performed 45% better in PPM markets than its national average, and only registered slightly lower ratings than its national average in Diary-measured markets. The important 25-54 age group represented 64% of the format’s audience composition. The demographic breakdown was uniformly balanced as 44% were between 25 and 44 years old, while 43% were aged 35-54. More than 97% of the Spanish Adult Hits audience is Hispanic, the highest percentage out of the formats surveyed by Arbitron in their Radio Today 2011 report. The format also skewed heavily male and had 89% of its audience under the age of 65. Interestingly, the format’s proportion of listening in the home was higher than any other Spanish format, and 6th highest overall (Arbitron, 2011-a). Spanish Non-Terrestrial Radio Internet radio and satellite radio continued to broaden their appeal to Hispanic audiences in 2011. Broadcast giant Clear Channel’s web and smartphone streaming app, iHeartRadio, made strides in popularity on the whole since its inception. Just 20 months after its initial launch, iHeartRadio had been downloaded over 1 million times via iTunes; before Blackberry and Android versions had been released (iHeartradio App Sees One Million iPhone Downloads; Blackberry is Next, 2009). An October 2011 report by Triton Digital shows that while Pandora continues to draw in more total online listeners, iHeartRadio is growing at about the same 10% rate (Triton Digital, 2011). iHeartRadio differs from similar services like Pandora because it offers audio streams from Clear Channel radio stations nationwide (No AM/FM receiver required, 2008). iHeartRadio is free to download, and in September 2011 Clear Channel expanded the service by offering the option of customized radio stations a la Pandora and last.fm. The service is not without its catches; the radio channels have ads and listeners cannot choose songs on demand (Best Music Apps: iHeartRadio, 2011).



Clear Channel expanded iHeartRadio’s already long reach in 2010-2011 by entering into a multi-year strategic partnership with Microsoft. The deal further integrates iHeartRadio into Microsoft’s XboxLive online service by making iHeartRadio the only digital radio service available on XboxLive (Clear Channel, Microsoft extend iHeartRadio/XboxLive integration, 2011). This move could have significant impact on the Hispanic market for two reasons. First, the Xbox360 ranks first among video game consoles usage, according to a recent Nielsen report (Nielsen Top Tens – Video Games, 2011). Secondly, a 2010 survey by Univision revealed that Hispanics were twice as likely as non-Hispanics to purchase video games within the next thirty days, and were 15% less likely to cite cost as a determining factor (Mcclellan, 2010). Satellite radio also made strides toward reaching more Hispanic listeners. SiriusXM announced plans to roll out an expanded channel lineup, which they call SiriusXM 2.0 (SiriusXM introduces SiriusXM 2.0, 2011). An integral part to this expansion is the new SiriusXM Latino lineup, which features an additional 10 Spanish language music channels, as well as adding RadioFormula Mexico (24/7 news and talk from Mexico’s leading broadcaster) and Playboy en Espanol. Upcoming additions are expected to include expanded college sports coverage on multiple Deportes en Vivo channels (as well as expanded MLB coverage), and the satellite debut of iconic talk show host Cristina Saralegui’s Cristina Radio, a show featuring “lifestyle, health and family programming for Latinas, produced by National Latino Broadcasting” (SiriusXM introduces SiriusXM 2.0, 2011). Advertising on Spanish-Language Radio Gross ad spending for Hispanic spot radio went up in 2010, with spending increasing 6% representing the fourth-highest increase after spot TV’s 17.4%, magazines’ 13.3, and the Internet’s 10.9% (Advertising Age Hispanic Fact Pack, 2011). The five biggest advertisers on Hispanic spot radio in 2010 (the most recent year that data is available) are, in order, Broadcasting Media Partners (Univision), AT&T, the United States Government, McDonald’s Corporation, and Verizon Communications. Broadcasting Media Partners (Univision) spent approximately $21.2 million on Spanish spot radio, an increase of 4.1% from 2009. Telecom giant AT&T’s spending on Spanish radio ads increased by 26.2% from 2009, to approximately $15.6 million. The United States Government’s spending drastically increased 88.8% up to just over $13 billion. McDonald’s Corp was the only member of the top five to experience a drop in Spanish radio advertising, falling 1.7% to $11.3 million. Rounding out the top five is telecom giant Verizon Communications, where spending increased 7.9% up to $9.8 million.

Table 3 ‐ Largest Advertisers In Hispanic Spot Radio

dollars in thousands

Company Spending 2010 Spending 2009 % Change

Broadcasting Media Partners (Univision) $21,213 20,369 4.1

AT&T 15,617 12,371 26.2

US Government 13,011 6,892 88.8

McDonald's Corp 11,310 11,505 ‐1.7

Verizon Communications 9,843 9,119 7.9

Source: Advertising Age Hispanic Fact Pack, 2011



The dramatic increase in US Government spending can be attributed in large part to the

2010 Census process. In early 2010, the Census Bureau announced a $133 million advertising campaign informing citizens about the Census and urging them to return their forms; $23 million of which were to be devoted to Hispanic media (Radio to Take a Cut of Census Spending, 2010). The 2010 Census marked an increase in targeting advertising aimed at hard-to-count areas, as well as the first time that the Census Bureau used bilingual (English/Spanish) forms (Yen, 2010). Conclusion The relative boom the Hispanic population in the United States has experienced in the decade between the 2000 and 2010 Census, would seemingly suggest that Spanish mass media in all forms, including radio, should continue to grow in the coming years. Although the sluggish economic environment has made it tough on all forms of mass media in nearly all languages, Spanish radio has been faring better than its English-language counterpart (Guskin & Mitchell, 2011). Spanish radio formats continue to grow in popularity, and the most popular (Mexican Regional, Spanish Contemporary, and Spanish Adult hits) continue to grow their appeal among perhaps the most widely coveted audience demographic, persons 18-44. Non-terrestrial radio options (streaming audio, satellite radio) represent a challenge to traditional broadcast radio on the whole, and Spanish radio is no exception. Spanish radio needs to continue to embrace these new options in order to continue to remain, as Arbitron characterizes, “a vibrant and important part of Hispanic Americans’ lives (Arbitron, 2010, p2).



References Advertising Age Hispanic Fact Pack. (2011). Ad Age Data Center. Arbitron (2010). Hispanic Radio Today 2010: How America Listens to Radio. Retrieved

October 11, 2011 from http://www.arbitron.com/downloads/hisp_radio_today_10.pdf Arbitron (2011-a). Radio Today 2011: How America Listens to Radio. Retrieved October 11,

2011 from http://arbitron.com/downloads/Radio_Today_2011.pdf Arbitron. (2011-b). Arbitron Radio Market Rankings: Fall 2011. Retrieved October 12, 2011,

from http://www.arbitron.com/home/mm001050.asp Best music apps: iHeartRadio (2011). Retrieved October 30, 2011 from

http://www.fiercemobilecontent.com/special-reports/what-are-best-music-apps-2011/best-music-apps-iheartradio

Guskin, E & Mitchell, A; Pew Research Center (2011). The State of the News Media 2011: Hispanic Media: Faring Better Than Mainstream Media. Retrieved October 26, 2011 from http://stateofthemedia.org/2011/hispanic-media-fairing-better-than-the-mainstream-media/

iHeartRadio app sees one million iPhone downloads; Blackberry is next. (2009, March 16). Retrieved November 5, 2011 from http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=2378

Mcclellan, S. (2010). Univision teams up with CBS’ Gamespot. Retrieved October 31, 2011 from http://www.adweek.com/news/television/univision-teams-cbs-gamespot-101975

Media Rating Council. (2011). Accredited services and services under review. Retrieved October 19, 2011 from http://mediaratingcouncil.org/Accredited%20Services.htm

New York Daily News. (2009). Hispanic leader hails PPM vigilance. Retrieved October 25, 2011 fromhttp://www.nydailynews.com/entertainment/tv/2009/01/12/2009-01-12_hispanic_leader_hails_ppm_vigilance.html

Nielsen Top Tens – Video Games (2011). Retrieved October 30,2011 from http://www.nielsen.com/us/en/insights/top10s/video_games.html

No AM/FM receiver required: Clear Channel brings top radio stations to Apple iphone, ipod touch, 2008). Retrieved October 19, 2011 from http://macdailynews.com/2008/10/13/clear_channel_brings_top_radio_stations_to_apple_iphone_ipod_touch/

Pew Research Center. (2011). Hispanic radio update. Retrieved October 25, 2011 from http://stateofthemedia.org/2011/african-american/glossary/#hispanic-radio-update

PR Newswire. (2010). Univision Radio signs agreement for Arbitron Portable People Meter radio rating services. Retrieved October 18, 2011, from http://www.prnewswire.com/news-releases/univision-radio-signs-agreement-for-arbitron-portable-people-meter-radio-rating-services-109866704.html

PR Newswire. (2011). San Diego to host third Radio Ink Hispanic Radio Conference. Retrieved October 27, 2011 from http://www.prnewswire.com/news-releases/san-diego-to-host-third-radio-ink-hispanic-radio-conference-132629008.html



Radio Business Report. (2011, April 1st). The MRC view on accrediting Arbitron’s PPM. Retrieved October 25, 2011 from http://www.rbr.com/radio/the-mrc-view-on-accrediting-arbitron-s-ppm.html

Radio to Take a Cut of Census Spending (2010). Retrieved October 30, 2011 from http://www.radioink.com/Article.asp?id=1661857&spid=30800

Shargrin, C., & Warfield, C. J. (2009). Arbitron’s flawed ratings hurt minority radio. Retrieved October 25, 2011, from http://thehill.com/opinion/op-ed/61241-arbitrons-flawed-ratings-hurt-minority-radio

SiriusXM Introduces SiriusXM 2.0 with new music, sports, and entertainment channels, including SiriusXM Latino (2011). Retrieved October 30, 2011 from http://investor.sirius.com/releasedetail.cfm?ReleaseID=615472

Triton Digital (2011). Triton Digital releases September internet audio top 20 rankers. Retrieved November 6, 2011 from http://www.tritondigital.com/Media/Default/Rankers/september-ranker-2011.pdf

Verrinder, J. (2010). SBS and Arbitron reach agreement to dismiss PPM legal dispute. Retrieved January 10, 2011, from http://www.research-live.com/news/legal/sbs-and-arbitron-reach-agreement-to-dismiss-ppm-legal-dispute/4002842.article

Yen, H. (2010). Census response rate 2010: high response saves $1.6 billion. Retrieved October 31, 2011 from http://www.huffingtonpost.com/2010/08/10/census-response-rate-2010_n_676622.html

Spanish Language Television 9

TheStateofSpanishLanguageMedia,2011

The State of Spanish Language Media Industries: A Summary of Spanish Language Television 2011

Jessica A. Perrilliat


The growth of Hispanics in the United States has continued to increase rapidly. According to the 2010 Census, over 50 million Hispanics now live in the United States (Census, 2010). In addition to the Hispanic population’s increase, Hispanic television households are also on the rise. There are currently 13,348,190 Hispanic television households, and Nielsen has predicted the number will increase by 4.6% to 13,957,750 in 2012 (Nielsen, 2011a).

With all of the Hispanic television households in the U.S., there are differences according to language when it comes to television consumption. As seen in Figure 1 below, Hispanic adults 18+ prefer to watch television in three different ways. 16% of the survey participants watch television in Spanish only, 18% in English only, and 66% choose to watch television in both English and Spanish. Although 40% of Hispanics speak in Spanish and 50% of the Hispanic population born in the United States can speak English, some choose to use Spanish as an alternative (Kahn, 2011).

16%

18%

66%

Figure 1: Television Consumption Among Hispanic Adults (18+) By

Language

Spanish Only

English Only

Both Spanish andEnglish

(Adapted from: Advertising Age Hispanic Fact Pack, 2011)

Television



According to Advertising Age Hispanic Fact Pack, the top five Hispanic local television

markets include: Los Angeles (#1), New York (#2), Miami-Fort Lauderdale (#3), Houston (#4), and Dallas-Fort Worth (#5). Hispanic viewers in television markets are continuing to grow. Last year, the top five local television markets were ranked in the exact same order, but there has been tremendous growth this year. In comparing last year’s numbers, there were 1,868,200 Hispanic television households and 5,659,170 total television households in Los Angeles, but this year, there was a 25, 610 increase for Hispanic television households and a 7,730 increase for total television households (See Table 1). In New York last year, there were 1,251,460 Hispanic television households and 7,493,530 total television households. According to the numbers in Table 1, this year there was an increase by 24,670 in Hispanic television households and 21,800 in total television households. Miami-Ft. Lauderdale had 666,230 Hispanic television households and 1,538,090 total television households last year, but this year it grew by 24,410 in Hispanic television households and 42,490 in total television households. For Houston, there were 561,390 Hispanic television households and 2,123,460 total television households, but this year there was a 24,730 increase in Hispanic television households and a 53,760 increase in total television households. In Dallas-Fort Worth last year, there were 506,020 Hispanic television households and 2,544,410 total television households. This year there was an increase by 20,740 in Hispanic television households and 2,573,890 in total television households. Table 1: Top Five Hispanic Local TV Markets Rank Market Hispanic TV

HH Total TV HH Hispanic % of all

#1 Los Angeles 1,893,810 5,666,900 33.4

#2 New York 1,276,130 7,515,330 17.0

#3 Miami-Ft. Lauderdale 690,640 1,580,580 43.7

#4 Houston 586,120 2,177,220 26.9

#5 Dallas-Fort Worth 526,760 2,594,630 20.3

(Adapted from: Advertising Age Hispanic Fact Pack, 2011) Advertising Spending Spanish language television advertising spending has become an important support base of television programming for Hispanic viewers. Because of the increase in Hispanic population, marketers recognize the large impact that Hispanics can have on the growth of advertising spending. As noted in Table 2, the five largest advertisers in 2010 were Procter & Gamble (#1), DirecTV (#2), Lexicon Marketing Corporation (#3), McDonald’s Corporation (#4), and General Mills (#5).



Table 2: Five Largest Advertisers in Hispanic Network TV

Rank Marketer 2010 2009 % CHG

#1 Procter & Gamble Co. $165,763 $137,095 20.9

#2 DirecTV $104,575 $60,132 73.9

#3 Lexicon Marketing Corp. $98,254 $102,813 -4.4

#4 McDonald’s Corp. $96,803 $84,495 14.6

#5 General Mills $88,825 $70,607 25.8


The five largest advertisers in Hispanic spot television, noted in Table 3 include: AT&T (#1), Verizon Communications (#2), Time Warner Cable (#3), Broadcasting Media Partners (#4), and Comcast Corporation (#5). All of them increased advertising spending. From 2009 to 2010, AT&T increased by $16,963,000, Verizon Communications by $9,297,000, Time Warner Cable by $9,161,000, Broadcasting Media Partners (Univision) by $11,192,000, and Comcast Corporation by $10,586,000. Overall, by the end of 2010, Spanish language television ad spending rose by 10.7% (Gorman, 2011a). Currently during the first half of 2011, Spanish language television ad spending has risen by 1.7% (Micro Advert, 2011). Table 3: Five Largest Advertisers in Hispanic Spot TV

Rank Marketer 2010 2009 % CHG

#1 AT&T $61,943 $44,980 37.7

#2 Verizon Communications $45,557 $36,260 25.6

#3 Time Warner Cable $33,980 $24,819 36.9

#4 Broadcasting Media Partners (Univision)

$29,545 $18,353 61.0

#5 Comcast Corp. (includes NBC Universal)

$28,384 $17,798 59.5

(Adapted from: Advertising Age Hispanic Fact Pack, 2011) Spanish language Television Networks In addition to the expansion of Hispanic television households and Hispanic advertising, Spanish language television networks are also expanding. Throughout this year, the Spanish language television networks have added new programming, surpassed English language television networks, and launched programming in new markets. Univision, TeleFutura,



Galavisión, Telemundo, Mun2, Azteca América, Estrella TV, LATV, and V-me all had a year of growth. Univision Serving as one of the top five networks in the United States, regardless of language, Univision continues to be strong competition for other television networks. Among all of the Spanish language broadcast television networks, Univision is ranked #1 in the country, reaching 97% of all Hispanic households in the United States (Univision, 2011a). The Univision Television Group currently owns and operates 19 full-power stations and 7 low-power stations distributed in 20 markets: Los Angeles, New York, Miami, Houston, Dallas, Chicago, San Antonio, Phoenix, San Francisco, Sacramento, Fresno, Philadelphia, Washington DC, Atlanta, Austin, Tucson, Bakersfield, Salt Lake City, Raleigh, and Cleveland (Univision, 2011b). In addition, The Univision Television Group owns and operates one non-Univision full-power station, two non-Univision low-power stations, and three full-power stations in Puerto Rico (Univision, 2011b). From the beginning of 2011, Univision was already defeating some of the other top ranked English language television networks. During the first week of January, Univision beat ABC, CBS, and CW as the #3 broadcast network in overall prime among adults 18-34 (RBR, 2011a). Univision was also ranked as the #2 broadcast network in primetime among kids 2-11 and #5 among total viewers 2+, adults 18-49, and teens 12-17 (RBR, 2011a). For the entire first week in January, Univision had 7 of the top 30 programs among adults 18-34 (RBR, 2011a). In February, Univision was also ranked #34 in Fast Company’s 50 Most Innovative Companies for gratifying its Latino foundation and rising as a competitor with the Big Four: CBS, NBC, ABC, and FOX (Univision, 2011c). Univision Programming In May 2011, Univision announced its plans to expand the morning programming block for “Hoy” from three to five hours, launch four new telenovelas, and a few reality shows geared toward finding new novela stars and child entertainers (Szalai, 2011). Univision’s president, Cesar Conde, said the network is focusing on “building its ratings momentum next season and steadily “chip away” at the lead of English language broadcast networks with new original content that it produces itself” (Szalai, 2011). Univision has already risen above one of the English language broadcast networks. During the first quarter of 2011, Univision beat NBC in the 18-49 demographics (Szalai, 2011). And it does not stop there. Univision provided historic ratings for the CONCACAF Gold Cup SemiFinal in June. While 10.9 million viewers watched all or part of the game, Univision reigned supreme over English language competitors as the most watched primetime network among men 18-34, regardless of language; Univision had more viewers than ABC, CBS, and FOX combined (Seidman, 2011a). With exclusive coverage of the Mexico vs. Honduras match, it was the #1 broadcast program of the day on Univision’s local stations (Seidman, 2011a). Earlier that night, 3.2 million viewers tuned in to Univision’s broadcast of the USA vs. Panama match, which also broke records as the most watched non-Mexico Copa Ora match ever on any network (Seidman, 2011a).



Univision’s digital division, Univision Interactive Media, Inc. successfully broadcast its eighth annual “Premios Juventud” youth awards show in July 2011. With a reach of 10 million viewers, Univision became the #1 network across the nation, regardless of language, among adults 18-49, adults 18-34, men 18-49, men 18-34, women 18-49, women 18-34, kids 2-11, teens 12-17, and persons 18-34 (Univision, 2011d). “As the only show of its kind on Spanish language television, “Premios Juventud” included 24 unique categories celebrating the preferences of today’s Hispanic youth in everything from music, film and sports, to fashion, novelas and pop culture” (Seidman, 2011b). TeleFutura The TeleFutura Television Group, Univision’s sister network, currently owns and operates 18 full-power stations and 14 low-power stations distributed in 21 markets: Los Angeles, New York, Miami, Houston, Dallas, Chicago, San Antonio, Phoenix, San Francisco, Sacramento, Albuquerque, Fresno, Denver, Orlando, Tampa, Philadelphia, Austin, Boston, Tucson, Bakersfield, and Raleigh (Univision, 2011b). In addition, The TeleFutura Television Group is distributed among 23 broadcast television affiliates and 509 cable and DBS affiliates nationwide (Univision, 2011b). In the first week of the 2011-2012 season, TeleFutura had double-digit increases in audience among 403,000 total viewers 2+, 237,000 adults 18-49, and 99,000 adults 18-34 during broadcast prime, which is Monday through Saturday 8pm to 11pm and Sundays 7pm to 11pm (RBR, 2011b). During the second week of the 2011-2012 season, TeleFutura attracted 451,000 total viewers 2+ (a 12% increase from the first week), 260,000 adults 18-49 (a 10% increase from the first week), and 120,000 adults 18-34 (a 21% increase from the first week) during broadcast prime (RBR, 2011b). In addition to the soaring numbers at the start of the season, Telefutura also announced its new afternoon programming schedule. Filled with more entertainment and new projects, TeleFutura’s new programming includes “Las Nuevas Tardes de TeleFutura” which translates into “TeleFutura’s New Afternoon Line-up,” court room cases in “Verdicto Fina,” the hit novella “Mañana es Para Siempre,” and entertainment news program “La Tijera” (Gorman, 2011b). Additional program plans for 2011-2012 included the two Spanish dramas “MIA” and “La Mariposa” (Szalai, 2011). Throughout the year, TeleFutura has continued to attract more viewers with its popular programming. Some of the higher rated programs included all of the primetime novella/series: “Reto de Mujer,” “El Ultimo Matrimonio Feliz,” and “Correo de Inocentes” (RBR, 2011c). TeleFutura’s October airing of the “Liga Mexicana de Fútbol: San Luis vs. Cruz Azul” soccer match also produced big numbers. Within the first hour of the match, TeleFutura attracted more total viewers 2+, adults 18-49, and adults 18-34 than Telemundo’s “Decisiones Extremas” (RBR, 2011c). One of TeleFutura’s biggest accomplishments for the season is its new late night show entitled “Noche De Perros” which translates “Guys Night Out.” The late night show is the very first and currently the only Spanish language television show created for men (Hispanic Tips, 2011). “Noche De Perros” which premiered on October 31, began airing Monday through Friday at 11 o’clock. With three male hosts and three male perspectives, the show thrives on celebrity guest appearances, news, sports, and entertainment specifically for men (Hispanic Tips, 2011).



Galavisión Galavisión, also owned by Univision, is the #1 Spanish language cable network. For the end of the 2010-2011 season, Galavisión had record breaking numbers, with double digit growth among viewers, and remained one of the top cable networks, regardless of language (Gorman, 2011c). Currently, “on several nights of the week, Galavisión attracts two to three times more viewers than the next most successful Hispanic cable network does on a good night” (Galavisión, 2011). Its unique programming has documentary, lifestyle, comedy, and “supernatural” themes (Galavisión, 2011). Regular programming for Galavisión includes: the CONCACAF Copa Oro (Gold Cup), CONCACAF Liga Campeones (Champions League), MLS (Major League Soccer), Camino A La Copa (FIFA World Cup Qualifiers), and Primera División Mexicana de Fútbol (18 teams compete) (Galavisión, 2011). New programming for the season includes: “Un Mundo Aparte” a two year road trip documentary series across 50 countries, “KDABRA” the mystery series that Univision considers a “Twilight meets novellas” series, “Matutino Express” the new morning news show, “Los Heroes Del Norte” a story of five characters who form a band, and the cooking competition “Prime Gourmet,” a culinary battle between two chefs (Galavisión, 2011). During the Mexico vs. Colombia FIFA U-20 quarterfinal match on August 13, Galavisión made history. The network attracted over 1.3 million total viewers and became the fourth most-watched Spanish cable telecast ever (Seidman, 2011c). In addition, Saturday’s match attracted 2.3 million viewers who watched all or part of the game and became the #1 program among all cable networks for that day. The ratings for the first 12 games of the tournament also surpassed the 2009 tournament’s ratings with a 272% increase of total viewers 2+, 259% increase of adults 18-49, 262% increase of adults 18-34, 254% increase of men 18-49, and a 255% increase of men 18-34 (Seidman, 2011c). The senior vice president and operating manager of Galavisión believes “Galavisión has solidified its strength in offering Hispanic viewers the entertainment and informational content they seek” (Gorman, 2011c). Telemundo Telemundo, owned by Comcast/NBC Universal, is the second largest Spanish language television network, behind Univision. Available in 210 markets, with a reach of 94% of all U.S. Hispanic households Telemundo owns 14 stations (located in Los Angeles, San Francisco/San Jose, New York, Miami, Phoenix, Houston, Dallas Fort-Worth, San Antonio, Fresno, Denver, Chicago, Las Vegas, Boston/Merrimack, and Tucson), 46 broadcast affiliates, and more than 1,000 Cable/DBS affiliates (Telemundo, 2011). In addition, Telemundo owns and operates one independent station in Puerto Rico, and exports its programming to over 100 countries internationally in more than 35 languages (Telemundo, 2011). In April, Telemundo had its best ratings ever, reaching almost 6.6 million total viewers during its broadcast of the 2011 Billboard Latin Music Awards (Business Wire, 2011a). The red carpet pre-show and awards show, which aired on April 28th, together attracted almost 7 million total viewers (Business Wire, 2011a). The Billboard Latin Music Awards was #1, regardless of language, in New York and Miami among adults 18-49, adults 18-34, and total viewers in Miami (Business Wire, 2011a). The show was also a success on the web. It was the #1 trending topic worldwide on Twitter at 9:30pm, it gained more Twitter followers by +89% (in comparison to the day before), gained more Facebook fans by +54% (in comparison to the day before), and the



live streaming of the awards show generated more than 500,000 page views (Business Wire, 2011a). “La Reina del Sur,” one of Telemundo’s most watched programs, was the highest-rated program in the network’s entire history, attracting almost 4.2 million total viewers and over 2.8 million adults 18-49 during its May 30 finale (Villarreal, 2011). Due to its success as one of the most watched television shows, Telemundo launched its very first Emmy campaign for “La Reina del Sur” and its female lead, Kate del Castillo (Villarreal, 2011). A Spanish-language television show has never won a primetime Emmy in any major category (Villarreal, 2011). In October, Telemundo announced that it would broadcast its very first primary Republican Presidential debate in December (EON, 2011). Held in Las Vegas, Nevada, the debate will be broadcast in Spanish and is part of its news initiative, “Decision 2012,” which houses all political coverage related to the upcoming elections in 2012 (EON, 2011). The purpose of the debate is for the “Republican Presidential candidates to establish a direct dialogue with the Hispanic community and address the issues that matter to them at a critical time in our country” (EON, 2011). Also in October, Telemundo, along with FOX, won the rights to broadcast the 2018 and 2022 United States World Cups (Longman, 2011). Telemundo will pay approximately $600 million to broadcast the two World Cups (in addition to FOX’s $400 million), and the agreements made also gives Telemundo and FOX the rights to the 2015 and 2019 Women’s World Cups and international tournaments (Longman, 2011). Another major announcement in October for Telemundo is its new plan to make its programs available with English language and “Spanglish” subtitles (Chozick, 2011). Telemundo’s president, Emilio Romano, stated that he wants “to focus on a more acculturated, more bilingual audience, without alienating the core Spanish-dominant viewers” (Chozick, 2011). Telemundo was the fasting growing Spanish language television network among total viewers 2+ and adults 18-49 during prime time in October (RBR, 2011d). In comparison to Univision who had an 8% decline and Telefutura with a 37% decline among total viewers in prime time, Telemundo grew by 38% among total viewers 2+ and 30% among adults 18-49 (RBR, 2011d). In addition, Telemundo aired four out of the top five prime time movies on Spanish language television among adults 18-49 and in November was in the process of premiering two more top rated movies (RBR, 2011d). Mun2 Mun2, owned by Telemundo, is a cable network geared toward bicultural Latinos 18-34 (Telemundo Media Kit, 2011). “From reality to music, on-air to digital, mun2 creates original content across a multi-screen platform” (PR Newswire, 2011). The bilingual network reaches more than 36 million television households nationwide in the United States through digital and analog cable and satellite (Telemundo Media Kit, 2011). “After recently announcing its best year, best month and best fourth quarter in network history,” Mun2 began its 2011 season with some “revamped” music content and programming (PR Newswire, 2011). In January, Mun2 relaunched a weekly bilingual variety show entitled “18 and Over” and made it a live music countdown television show (PR Newswire, 2011). Within its first month on air, “18 and Over” attracted more than 1 million persons 2+ (PR Newswire, 2011). Also, Mun2’s regional Mexican music show, “Reventon with Yarel” attracted 52,000 Persons 2+ and 26,000 Persons 18-34 (PR Newswire, 2011). Another one of the cable network’s music blocks, “SMB:



Salsa Merengue Bachata,” has increased its fan base by +41% since December 2010, with 50,000 persons 2+ and 24,000 persons 18-34 (PR Newswire, 2011). Azteca América Launched in 2001 by TV Azteca (the second largest television broadcast network in Mexico), Azteca América, is a broadcast television network that prides itself as being “the authentically Mexican television network for US Spanish-language viewers” (RBR, 2011e). In September, Azteca América increased its coverage of US Hispanic households to 68% (RBR, 2011e). From June 2010 until September 2011, the coverage went up over 8 percentage points (RBR, 2011e). This coverage includes full-power stations in Houston and Dallas and Comcast coverage in Philadelphia and New York (RBR, 2011e). Estrella TV Owned by Liberman Broadcasting, Estrella TV is a Spanish language television network. In 2010, the network was found in 28 markets. As of August 2011, the network reaches 37 markets, including Portland (Seattle Times, 2011). For the 2011-2012 Fall primetime line-up, Estrella TV announced its new dance competition show, “Mi Sueño es Bailar,” which translates into “My Dream is to Dance” (Hispanic Ad, 2011). The show features celebrities being partnered with professional dancers and weekly competitions (Hispanic Ad, 2011). In October, Mexican regional music female artist, Jenni Rivera, also announced her new television show on Estrella TV that deals with social issues and includes live interviews with various entertainment personalities (Latin American Herald Tribune, 2011). In May, the network had its first TV upfront in New York City (Media Moves, 2011). The new television programs revealed at the upfront included: a reality show “Quiero Triunfar,” an investigative reporting show “El Momento con Enrique Gratas,” and a late night show “Esta noche con Héctor Suárez” (Media Moves, 2011). According to Media Moves, “Estrella TV is most proud to bill itself as the Spanish-language network that doesn’t have a single telenovela in its programming lineup” (Media Moves, 2011). LATV & V-me LATV is the first bilingual music and entertainment network in the nation (LATV, 2011a). Although LATV has been on air since 2001 in Los Angeles, it was not aired nationally until 2007 (LATV, 2011a). Geared toward Latinos between the ages of 18-34, the network offers programs with content that includes: multi-genre music, lifestyle, entertainment, and original programming (LATV, 2011a). Currently, LA-TV has 41 affiliates (LATV, 2011b). V-me is a 24-hour digital broadcast service that considers itself to be a “high quality, uncluttered, multi-platform environment for corporations and foundations looking to connect with U.S. Hispanics” (V-me, 2011). The network offers a range of content that includes: news and current events, entertainment, series, cooking, nature, lifestyle/factual, and V-me Niños, which translates into V-me Kids (V-me, 2011). Its programming is filled with original productions, exclusive acquisitions, and personalized public television “hits” (V-me, 2011).



Conclusion In addition to all of the other forms of media that are quickly becoming a part of the Hispanic market, Hispanic media alone has shown how beneficial it can be to target Hispanics. Hispanic advertising spending, Hispanic local television markets, and Spanish language television networks, are constantly expanding and in no way slowing down. “Spanish-language media remain important to a changing, more acculturated, and more U.S.-born Hispanic population in the United States. And in the last year, Spanish-language media tended to fare better overall than their mainstream English-language counterparts” (Guskin & Mitchell. 2011). Hispanic advertising spending grew by 10.7% at the end of 2010 and has already seen a 1.7% growth in the first half of 2011. All the top advertisers for Hispanic television remained at the top, and each one expanded its advertising spending (with the exclusion of Lexicon Marketing Corporation). Hispanic advertising will continue to grow over the years in the same way the Hispanic population continues to grow because “by 2050, Hispanics are projected to account for more than 30 percent of the U.S. population – a significant growth driver that marketers can no longer overlook” (Nielsen, 2011b). Hispanic local television markets are also continuing to grow. In reference to the top five local television markets, each had a growing percentage of Hispanic television households this year. Of all television households in Los Angeles 33.4% are Hispanic, 17% of all television households in New York are Hispanic, 43.7% of all television households in Miami-Fort Lauderdale are Hispanic, 26.9% of all television households in Houston are Hispanic, and 20.3% of all television households in Dallas-Fort Worth are Hispanic (See Table 1). These numbers show just how large the number of Hispanic consumers is throughout different markets. For television, not only are the Spanish language television networks establishing themselves as top competitors among English language television networks, but individually the networks are competing to surpass one another. While producing original content and giving Hispanics news and entertainment that deal with things they care about and can relate to, each Spanish language network is unique in its way of broadcasting information. In 2011, Spanish language television networks have continued to increase viewers, increase ratings, and increase programming. “Focusing attention on Spanish language television is additionally valuable because Latinos typically report among the highest levels of television consumption in the United States” (Mastro & Ortiz, 2008). With a network like Univision who has continued to be a top television network, regardless of language, Telemundo who produced and broadcast its very first primary Republican Presidential debate and won the rights to broadcast the 2018 and 2022 United States World Cups, or Telefutura who in the first week of 2011 had double-digit increases in audience and created the first and only Spanish language television show made for men, Spanish language television networks, in addition to Hispanic advertising spending and Hispanic local television markets, are showing that they are going to continue to impact and grow in the media. English language media is also beginning to see how beneficial it would be to target Hispanics. For example, Time Warner Cable recently implemented 37 new national and international Spanish language channels to its iPad app programming (Business Wire, 2011b). Executive Vice President and Chief Marketing Officer of Residential Services for Time Warner stated, “This is a big step forward in our commitment to offering the best possible entertainment experience to our customers” (Business Wire, 2011b). This could be considered a big challenge



for Spanish language television because now English language networks are offering Spanish language programming. Although Time Warner Cable’s Spanish language channels are currently for iPads, it’s only a matter of time before other English language networks recognize the positive impact Spanish language programming has on the media. Sooner than later, other forms of English language media will begin offering programming catered to the Hispanic population and Spanish language media may have competition.



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Spanish Language Print 23


The State of Spanish Language Media Industries: A Summary of Spanish Language Print 2011

Gabe Otteson Center for Spanish Language Media, University of North Texas

Print media across all languages faces an uncertain future in the age of the Internet. Recent economic problems in the United States certainly haven’t helped. The years 2010-2011 represented a period of rebound for the print industry, and Spanish print is no exception. US Hispanic media as a whole grew its ad spending by over 8% in 2010, a significant improvement from the 8.6% drop in 2009. Spanish print saw a big turnaround as well; the industry as a whole saw a net loss of just 0.4% in ad spending for 2010, a vast improvement over the 16% loss it posted back in 2009 (Advertising Age Hispanic Fact Pack, 2011; 2010). Spanish magazines are accounting for a significant portion of this difference in 2011; ad revenue for magazines alone has risen nearly 24% over 2010 (Pelay, 2011). While it’s true that many publications (both in English and in Spanish) are launching and maintaining web presences, the rumors of Spanish print’s demise have been exaggerated.

Newspapers Newspaper and print media of all languages have faced a difficult road during the recent economic trouble in the United States. For the industry as a whole, 2010 represented an improvement over the previous two years; ad revenue fell roughly 6% which still represented an improvement over the 26% fall that the industry saw in 2009 (Edmonds et al, 2011). Much like their English-language counterparts, Spanish-language newspapers also saw revenue and slight circulation drops. Mirroring the English newspapers, Spanish papers have been able to grow into other media forms and partnerships with companies in other media sectors (Edmonds et al, 2011). For example, ImpreMedia (a titan in Spanish print) has recently become more focused on being web-centric, through producing more digital content (such as videos) as well as mobile applications. In March 2010, ImpreMedia entered into a partnership with giant Univision to share content across the various platforms employed by both companies (Talan, 2010).

Revenue The revenue picture for Spanish newspapers is looking better, although as Guskin and Mitchell point out, the picture of how much better isn’t exactly clear (Guskin and Mitchell, 2011). Kantar Media reported an increase in measured ad spending for Spanish language newspapers of 2%, compared to a 4.6% loss for English local newspapers (Kantar Media reports US advertising expenditures increased 6.5 percent in 2010, 2011). Another report by the Latino Print Network, who measures newspapers aimed at Hispanics in both English and Spanish, estimated a 5.6% drop in ad spending which still represented an improvement over the prior year

Print



(Guskin and Mitchell, 2011). Local ad revenue makes up a substantially larger portion of ad revenue for Spanish newspapers than national revenue does. According to the Latino Print Network, the breakdown of advertising revenue for Hispanic newspapers in 2010 was estimated as: local – 78% ($554 million); national – 21% ($151 million) and Internet/Web – 1% (7.2 million) (Whisler, 2010). The top-performing Spanish newspapers as measured by ad revenues are shown in Table 1. Miami’s El Nuevo Herald earned double the ad revenue of the number two paper, New York’s El Diario la Prensa (~$53 million and ~$25 million, respectively) but both saw losses over the previous year. The only other paper in the top five that saw a net decrease in ad revenue from the previous year was Los Angeles’ La Opinion, which posted a 4.9% decrease.

Table 1 - Top Spanish Newspapers by Ad Revenue

Dollars in thousands

Newspaper Market Gross Ad Revenue 2010

% Change

El Nuevo Herald Miami 53,528 -2.3

El Diario la Prensa New York 25,174 -6.9

Hoy Chicago 25,118 27.4

La Opinion Los Angeles 24,943 -4.9

El Diario Juarez, Mexico/El Paso 23,048 7.7


Rounding out the top five, Chicago’s Hoy saw a whopping 27.4% increase in ad revenue and the dual-markets of El Paso Texas and Ciudad Juarez, Mexico saw their El Diario’s ad revenue increase by 7.7% over the previous year.

Circulation Circulation has been declining for years across nearly all languages, and the numbers didn’t look much better in 2010-2011. Print circulation on the whole dropped 5% daily and 4.5% on Sunday (Edmonds et al, 2011). Circulation of Spanish daily newspapers suffered as well, as some of the larger newspapers posted significant circulation losses, continuing the trend from the year before:

- ImpreMedia’s La Opinion in Los Angeles saw a 14.4% circulation drop from the previous year (Guskin and Mitchell, 2011).

- El Diario/La Prensa of New York, incidentally the oldest Spanish daily, lost 9.5% circulation (Guskin and Mitchell, 2011).

- El Nuevo Herald in Miami, lost 4.5% circulation; a bad number to be sure, but an improvement over the 22% drop the paper experienced the year prior (Guskin and Mitchell, 2011).

Some newspapers were able to post circulation gains. The free Hoy Chicago, owned by The Chicago Tribune, posted a 40 % circulation gain; the expansion was attributed to the growth of



Chicago’s Hispanic population, particularly in the suburbs (Hoy Chicago to increase circulation by 40%, 2010). Spanish weekly newspapers were a slightly different story. Two Tribune papers in South Florida, Ft. Lauderdale’s El Sentinel and Orlando’s El Sentinel, saw gains in circulation. For the period ending March 2011, the Ft. Lauderdale El Sentinel saw its circulation increase 23% from the year before, while the Orlando El Sentinel posted a much more modest circulation gain at 3% (Guskin and Mitchell, 2011). Table 2 outlines the top five weekly Spanish newspapers by circulation.

Table 2 - Top Spanish Weekly Newspapers by Circulation

Newspaper Market Circulation

La Raza Chicago 152,300

Vida en Valle Sacramento 151,933

Hoy Los Angeles 142,470

El Sentinel Ft Lauderdale 126,150

La Prensa Riverside Riverside, CA 107,500

Source: Guskin & Mitchell, 2011 Chicago’s La Raza had the largest circulation among the Spanish weeklies, with 152,300 and is the only paper in the top five that isn’t located in the high-Hispanic populated states of California and Florida. The next highest-circulating weeklies are from California, Sacramento’s Vida en Valle and Los Angeles’ Hoy, who posted circulation totals of 151,933 and 142,470 respectively. Ft. Lauderdale’s El Sentinel saw its circulation increase by 26% to 126,150 and Riverside, California’s La Prensa Riverside circulated 107,500 copies (Guskin and Mitchell, 2011). Additions, Closings, and New Directions The total number of Spanish language newspapers remained relatively flat in 2010-2011. Table 3 details the numbers of daily, weekly, and less-than-weekly newspapers over the last three years.

Table 3 - Number of Hispanic Newspapers

2010 2009 2008

Daily 26 25 29

Weekly 428 428 424

Less-Than Weekly 378 382 381

Total 832 835 834

Source: Guskin & Mitchell, 2011



Compared to 2009, 2010 experienced a net loss of 3 newspapers; with one more daily and 4 fewer less-than-weekly newspapers. The San Diego newspaper Diario San Diego closed down in June 2011. Diario San Diego began publication in 2003 as a daily paper, but shifted among differing models in subsequent years. In 2006 the paper went to a twice-a-week schedule, then in 2008 it was downsized to a weekly paper. José Santiago Healy, the paper’s president and publisher, cited difficult economic conditions brought about by the recession, as well as being the youngest newspaper in the San Diego market as factors contributing to the paper’s closure (Diario San Diego Shuts Down, 2011). La Prensa Riverside, a Spanish newspaper in Riverside California, in addition to increasing its circulation to over 107,000 has added a bilingual insert to its paper. The paper announced that the English USA Weekend magazine would be added in July 2011. Curiously however, La Prensa Riverside’s sister English publication (The Press Enterprise) does not have the USA Weekend insert (La Prensa Riverside Expands Circ., 2010). Publisher Frank Escobedo said in a statement that “The Hispanic audience is highly bilingual. More and more this is a story of both languages” (La Prensa Riverside Expands Circ., 2010). Cross-cultural publication became a phenomenon in 2010, on the heels of heated debates over immigration policy in the United States following controversial measures passing in Arizona. In April of that year, ethnic media in New York published a joint editorial on reforming immigration policies. The article was published by the El Diario/La Prensa staff and also ran in other ethnic newspapers Haitian Times, Nowy Dziennik (a Polish daily) and Caribbean Life (El Diario/La Prensa Staff, 2010). Also in June, another group of multiethnic news media, in association with New America Media, produced and published a joint editorial again calling for real immigration reform, translated and published in 11 languages. The consortium represented Native American, Asian, Muslim, Hispanic, Russian, and Caribbean populations among others (New American Media staff, 2010). Advertising in Spanish Newspapers

The top advertisers in Spanish newspapers are listed in Table 4. Among the top five, only Interbond Corp of America (ranked second) saw a negative percent change (-4.8%) from 2009 to 2010. NewsCorp (22.7% change), Valassis Communications (29.3% change), and Sears Holding Corp (53.4% change) spent more advertising dollars in Spanish newspapers in 2010 than in 2011, but their moderate increases pale in comparison to the spending by the US Government.



Table 4 - Largest Advertisers in Hispanic Newspapers


Advertiser 2010 2009 % Change

News Corp. $9,481 $7,726 22.7

Interbond Corp. of America 6,304 6,623 -4.8

Valassis Communications 5,797 4,484 29.3

Sears Holding Corp. 5,086 3,317 53.4

US Government 3,647 499 630.5


The dramatic rise in US Government ad spending on Spanish newspapers can be tied to the promotion and awareness of the 2010 Census. The US Government increased media ad spending across the board compared to the previous Census in 2000 (Project for Excellence in Journalism, 2010) and Spanish language print was no exception. The 2010 Census marked unprecedented outreach toward the growing Hispanic community (Morello, 2009), which further helps to explain this rapid ad spending increase. Magazines Spanish magazines experienced somewhat of a rebound in 2010 after taking a dive in 2009. Although a few notable Spanish magazines closed down publication in 2010, the economic impact was less significant than that of the 2009 closures LATINO and Reader’s Digest Selecciones (Guskin and Mitchell, 2011). Harper’s Bazaar en Espanol ceased regular publication in February 2010, after being published since October 2005 (Guskin and Mitchell, 2011). Subsequent issues have been published sporadically since then. National Geographic en Espanol closed in June 2010 when publisher Televisa Publishing discontinued its US Hispanic version, but elected to continue publishing its Mexican edition (Guskin and Mitchell, 2011). Televisa also ceased publication of Maxim en Espanol in the United States, but continues to distribute the publication throughout Latin America (Hispanic magazines post uneven results for 2010 but improve over 2009, 2011). Other prominent closures in 2010 included Cafe Magazine, Disney en Familia, Latino Future, and Mira! (Hispanic Magazines Post Uneven Results for 2010 but Improve Over 2009, 2011). Magazine Revenue

The revenue picture for Spanish magazines has improved. Total ad revenue increased a modest 3.9% in 2010, to an estimated $178.8 million (Hispanic Magazines Post Uneven Results for 2010 but Improve Over 2009, 2011). The top Spanish magazines in ad revenue for 2010 are listed in Table 5. People en Espanol and Latina are the clear leaders in ad revenue and each posted an increase in ad spending, at 4.5% and 9%, respectively. Ser Padres (the Spanish version of Parents) saw an increase in ad revenue of 15% to approximately $15 million.



Table 5 - Top Spanish Magazines by Ad Revenue


Magazines Owner Gross Ad Revenue 2010

% Change

People En Espanol Time Warner $47,444 4.5

Latina Latina Media Ventures

27,888 9.1

Ser Padres Meredith Corp 15,061 14.9

TV y Novelas Televisa Publishing

14,190 -13.6

Vanidades Televisa Publishing

12,807 44.4

Source: Advertising Age Hispanic Fact Pack 2011 Two Televisa publications round out the top five: Vanidades saw a rapid increase in ad revenue of 44%; TV y Novelas saw a 14% drop in ad revenue, due in part to Televisa reducing the frequency of its publication in 2010, and would continue to do so in 2011 ((Hispanic Magazines Post Uneven Results for 2010 but Improve Over 2009, 2011). The ad revenue picture through September 2011 (the most recent period of available data) has been even better. Spanish magazines saw total ad revenue increase by 23.8%, despite total ad pages remaining flat (Pelay, 2011). Several of the largest Spanish magazines saw large increases in ad spending. For example, ad revenue is up by 39.9% at People en Español, Latina saw a 12.6% increase, revenue at Vanidades went up 26%, and TV y Novelas saw its revenue increase by over 26% despite cutting back publication frequency yet again. Siempre Mujer had perhaps the most dramatic revenue gain, posting a 50% improvement in advertising revenue (Pelay, 2011). Advertising in Spanish Magazines

The top advertisers in Spanish magazines (see Table 6) further illustrate the gains in advertising revenue. Four of the top five largest advertisers (Procter & Gamble, L’Oreal, GM, and Kimberly-Clark) markedly increased their ad spending in 2010 over 2009 (by 30%, 61%, and 35% respectively). General Motors is the sole member of the top five that is not in the personal and health care or health and beauty business, which on the whole advertises heavily in magazines. General Motors’ dramatic 215% increase can be tied to the company’s efforts to rebuild its image after years of poor perceptions of quality and following its bankruptcy filing (Krolicki, 2009). Unilever was the only company among this group to cut its ad spending, a 37% decrease.



Table 6 - Largest Advertisers in Hispanic Magazines


2010 2009 % Change

Procter & Gamble $25,221 $19,459 29.6

L'Oreal 16,324 10,116 61.4

General Motors 8,529 2,705 215.4

Unilever 4,476 7,103 -37

Kimberly-Clark Corp. 3,392 2,518 34.7


Surprisingly, the US Government’s ad spending in 2010 only increased by about 5 percent (Advertising Age Hispanic Fact Pack, 2011), despite the launching of Census ad campaigns targeting Hispanics (Census 2010, P&G, L’Oreal: New Campaigns for Hispanic Magazines, 2010) and uptick in ad spending overall prompted by the Census. Conclusions Spanish print media continues to face challenges as we continue into the second decade of the 21 century; both economic challenges posed the still-uncertain economic landscape in the US, and technological challenges posed by print’s prophesied killer, the Internet. The outlook for Spanish print is certainly more optimistic than it was just one year ago. Revenue is up in some sectors and where it’s still down, the decrease is less severe. As we continue to move into the future, Spanish print needs to continue to integrate itself into the digital realm, in order to remain relevant for the next and upcoming generations. Spanish print has fared better than English print, and in this era of gloom and doom for print, that’s definitely a good thing.



References

Advertising Age Hispanic Fact Pack. (2010). Ad Age Data Center. Advertising Age Hispanic Fact Pack. (2011). Ad Age Data Center. Census 2010, P&G, L’Oreal: New campaigns for Hispanic magazines. (2010). Retrieved

November 19, 2011 from http://blog.media-economics.com/2010/03/08/census-2010-pg-loreal-new-campaigns-for-hispanic-magazines/#more-198

Diario San Diego Shuts Down (2011). Retrieved November 14, 2011 from http://www.mediamoves.com/2011/06/diario-san-diego-shuts-down.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FJAoNx+%28Media+Moves%29

Edmonds, R.; Guskin, E.; & Rosenstiel, T; Pew Research Center. (2011). The state of the news media 2011: Newspapers: Missed the 2010 media rally. Retrieved November 1, 2011 from http://stateofthemedia.org/2011/newspapers-essay/

El Diario/La Prensa Staff (2010, April 22). N.Y. Ethnic Media Published Joint Editorial on Immigration Reform. Retrieved November 15, 2011 from http://newamericamedia.org/2010/04/ny-ethnic-media-publish-joint-editorial-on-immigration-reform.php

Guskin, E & Mitchell, A; Pew Research Center (2011). The state of the news media 2011: Hispanic media: Faring better than mainstream media. Retrieved October 26, 2011 from http://stateofthemedia.org/2011/hispanic-media-fairing-better-than-the-mainstream-media/

Krolicki, K (2009, August 11). GM plans significant increase in ad spending. Retrieved November 20, 2011 from http://www.reuters.com/article/2009/08/12/retire-us-gm-advertising-idUSTRE57B07K20090812

Hoy Chicago to increase circulation by 40% (2010, September 17). Retrieved November 8, 2011 from http://www.portada-online.com/article.aspx?aid=3764

Hispanic magazines post uneven results for 2010 but improve over 2009 (2011, January 11). Retrieved November 16, 2011 from http://blog.media-economics.com/2011/01/19/hispanic-magazines-post-uneven-results-for-2010-but-improve-over-2009/

Kantar Media reports US advertising expenditures increased 6.5 percent in 2010 (2011). Retrieved November 5, 2011 from http://kantarmediana.com/intelligence/press/us-advertising-expenditures-increased-65-percent-2010

La Prensa Riverside expands Circ, adds USA Weekend as insert (2010). Retrieved November 14, 2011 from http://www.portada-online.com/article.aspx?aid=6429

Morello, C (2009, October 2). Census gets some Latino help and needs it. Retrieved November 15, 2011 from http://www.washingtonpost.com/wp-dyn/content/article/2009/10/01/AR2009100103206.html?hpid=moreheadlines

New America Media staff (2010, June 25). Time for immigration reform is now: Ethnic media call for immigration reform. Retrieved November 15, 2011 from http://news.newamericamedia.org/news/view_article.html?article_id=cdd5e4e8a83a609d5eb78097203a93cb



Pelay, C. (2011, October 24). Hispanic magazine top 10 tables for January-September 2011: Ad spending up by 23.8% this year. Retrieved November 15, 2011 from http://blog.media-economics.com/category/hispanic/hispanic-magazines/

Project for Excellence in Journalism (2010). The state of the news media 2010: Sidebars and backgrounders. Retrieved November 15, 2011 from http://stateofthemedia.org/2010/ethnic-summary-essay/siderbars-backgrounders/

Talan, M (2010, March 3). Univision Interactive Media and ImpreMedia announce content exchange partnership. Retrieved November 21, 2011 from http://corporate.univision.com/2010/press/univision-interactive-media-and-impremedia-announce-content-exchange-partnership/

Whisler, K (2010). The state of Hispanic print 2010. Latino Print Network

Spanish Language Internet 32


The State of Spanish Language Media Industries:

A Summary of Spanish Language Internet 2011

Gabe Otteson & Jessica Perrilliat Center for Spanish Language Media, University of North Texas

The Internet continues to alter the landscapes of the media industries. The Web’s rapid expansion and vast reach have elicited many existential crises from traditional media outlets as they struggle to adapt. A recent Arbitron survey found that 45% of Americans over the age of 12 (across all ethnicities) consider the Internet to be the medium which is most essential to their lives, compared to 20% in 2002. Among ages 18-34, 60% of respondents claimed the Internet as their most essential medium (Arbitron, 2011). It comes as no surprise, then, that the median age of heavy internet users also skews younger than that of “traditional” radio and TV (Arbitron, 2011). The booming (and also younger-skewing) Hispanic population in the United States represents a tremendous growth opportunity for Internet media companies. Data on Internet Adoption and Use A 2010 Nielsen survey revealed that 72% of US Hispanics have a computer in their home. Of those, 89% have Internet access and of those, 54% have high-speed or broadband access. In addition, nearly half (49%) of Spanish-dominant people are on the Internet, and 40% of mostly English-dominant report using some form of Spanish Internet daily (The Nielsen Company, 2010). Despite this, the Hispanic population (18+) consumes less Web content in Spanish only compared to other forms of media, and more likely to consume Web content in English, as illustrated in Figure 1.

Internet




While Internet use among Hispanics has been growing faster than the overall population, Hispanics and other ethnic groups still lag behind Anglos in terms of overall Internet adoption. Approximately 65% of Latinos and 66% of African-Americans went online in 2010, compared to 77% of Whites. There is a sizeable gap in broadband use as well, with 45% of Latinos (and 52% of African Americans) using broadband to access the Internet, compared to 65% of Whites. Cell phone adoption is slightly more even, with 76% of Latinos, 79% of African American, and 85% of Whites owning a cell phone (Livingston, 2011). According to Livingston, these differing usage rates are tied to income disparity. When income is controlled for, the differences in Internet use, home broadband access and cell phone use between Hispanics and Whites disappear; Hispanics and Anglos have similar usage patterns when their socioeconomic situations are similar (Livingston, 2011). Hispanics and Whites are equally likely to access the Internet and send/receive email from a cell phone, but rates of text and instant messaging are close. Interestingly, despite that Hispanics are no more likely to use the Internet from a cell phone thanWhites, they are more likely to do so instead of having an Internet connection at home. Only 6% of Hispanics report accessing the Web in this way, compared to only 1% to whites (Livingston, 2011). A Scarborough report on smartphone adoption reveals that the growth in adoption rate for Hispanics is outpacing the general population (see Table 1).

Table 1 - Smartphone Penetration 2005 2010 % Change

Hispanics 5% 19% 380%

General Population 9% 23% 256%

Source: Scarborough, 2010

1626 27 25

10

66 4529

2233

1829

4452 57

TV Radio Magazines Newspapers Internet

Figure 1: Percent consuming media type by language among Hispanics 18+

Spanish Only Both English & Spanish English Only



The apparent discrepancy between Hispanics’ smartphone use and home internet use raises some interesting questions from both the content producing and advertising/marketing sides of Internet media- Will a “one-size-fits-all” marketing approach be as likely to attract Hispanics and non-Hispanics or will a very targeted, medium- (or device-) specific approach be necessary? To what extent do content producers need to cater to a specific Hispanic mobile niche? Will location-based content be geared more towards Hispanics? Will there continue to be a difference in Hispanics’ adoption of home internet versus adoption of mobile internet?

Largest Web Properties among Hispanics

As shown in Figure 1, the Internet represents the highest percentage of Hispanics over 18 using that medium in English only, and the lowest percentage that use the Internet in Spanish only. It should come as little surprise, then, that there is a substantial discrepancy in the largest web properties among Hispanic users between Spanish primary/Bilingual users and Hispanic users as a whole. Table 2 lists the five largest web properties by unique visitors and reach for both Spanish primary/bilingual users and all Hispanics on all sites.

Table 2 - Largest Web Properties Among Hispanic Users Spanish Primary/Bilinugal Users Unique Visitors (in thousands) Percent

Reach Univision Communications 3,340 22.2

Yahoo en Espanol 1,916 12.8 Terra – Telefonica 1,906 12.7

MSN Latino (including Telemundo) 1,704 11.3 Televisa Interactive Media 963 6.4

Among All Hispanics on All Sites Unique Visitors (in thousands) Percent

Reach Microsoft sites 28,486 89.8

Google sites 26,595 83.6 Yahoo sites 26,463 83.4

Facebook.com 22,722 71.8 AOL 13,755 43.4


Yahoo and Microsoft are the only properties to appear on both lists, with Yahoo ranking second for Spanish primary/bilingual users and third for total users, and Microsoft ranking fourth for Spanish primary/bilingual users and first among total users. Univision properties are clearly number one with Spanish primary/bilingual users, whereas the leader among all Hispanic sites is more closely contested. Facebook ranks fourth on the total Hispanics category, but is nowhere to be found on the list for Spanish primary/bilingual users, surprising given Facebook’s almost ubiquitous reach in the United States.



Facebook’s growth to near-ubiquity is evident when looking at the largest social network sites among Hispanic users (see Table 3). Facebook possesses a monstrous lead over MySpace in terms of number of unique visitors (a difference of over 17 million), and the site reaches over 70 % of Hispanic Internet users, a figure that has far and away the highest Hispanic reach (the second ranked site, Myspace reaches under 18%).

Table 3 - Largest Social Network Sites

Unique visitors (in thousands)

Percent Reach

Percent Reach

Prev. Yr.

Hispanic Percent

Facebook 22,722 71.8 59.4 14.5

Myspace 5,582 17.6 43.3 16

Windows Live Profile 3,540 11.2 14.2 31.2

Twitter 3,387 10.7 11.3 12.5

LinkedIn 2,964 9.3 6.9 8.9

Source: Compiled from Advertising Age Hispanic Fact Pack 2011, 2010

For Facebook and MySpace, Hispanics make up 14.5% and 16%, respectively, of their user base; figures relatively representative of the US population as a whole. Curiously, Windows Live Profile has an audience profile that substantially over-represents Hispanics in comparison to the general population, nearly one-third of their user base is Hispanic (Advertising Age Hispanic Fact Pack, 2011). Twitter’s audience is comprised of nearly 13% Hispanics, despite reaching just over 10% of the overall Hispanic population. LinkedIn is growing in popularity with Hispanic audiences (LinkedIn’s reach has increased by nearly 2.5% over 2010) but its user base is currently under-representative of Hispanics, with only 9% of its audience as Hispanic. LinkedIn’s career-based focus and the traditional income (and career ladder) gap between Hispanics and Whites could be a factor in this, but to date a causal link has not been demonstrated.

Advertising on the Web Ad spending on Spanish Internet saw the largest increase from 2009 to 2010. Although

going by the raw data, Internet spending still lags behind other forms of media (representing approximately 5% of total Spanish media ad spending); ad spending on Spanish Internet grew nearly 11% from 2009 to 2010, outpacing print (with the sole exception of Spanish magazines), radio, and television (Advertising Age Hispanic Fact Pack 2011). The largest advertisers on Spanish-centered websites are listed in Table 4. These five companies represent the telecommunication (Verizon Communications & Sprint Nextel), personal products (Procter & Gamble & Unilever), and automotive industries, industries that traditionally advertise heavily in the first place.



Table 4 - Largest Advertisers on Hispanic Websites

Company Impressions on Hispanic sites

Share of Hispanic Share of Total

Verizon Communications

575,962 6.60% 1.40%

Procter & Gamble 538,447 6.2 0.5

Ford Motor Co. 365,485 4.2 0.3

Sprint Nextel Corp. 360,090 4.2 0.6

Unilever 286,958 3.3 0.2


Verizon and P&G both represent over 6% of advertising on Hispanic-centered sites, yet such advertising accounts for 1.4% and 0.5% of each company’s total online advertising. Advertising on Hispanic-centered sites represent less than one percent of total online advertising for Ford, Sprint, and Unilever as well (Advertising Age Hispanic Fact Pack, 2011).

Industry Highlights After the Interactive Advertising Bureau (IAB) made the announcement to form the Multicultural Council in 2010, the IAB Multicultural Council has since delved deeper into Hispanic marketing research. The council put on its very first U.S. Hispanic Marketing Agency Day in New York and included more than 174 marketers and media outlets (IAB, 2011a). The event entitled “Clicko-De-Mayo,” was geared toward discussions on the growth of the online Hispanic market, and representatives from companies that sponsored the event (Telemundo, Terra, impreMedia, and Univision) individually provided “insights and findings” (IAB, 2011a). The theme for the event centered on “how one just can’t afford to ignore the Hispanic market” (IAB, 2011a). Panelists discovered that only about $300 million was spent on Hispanic marketing initiatives out of a total projected $25 billion spent on online advertising last year, and it was recommended that a change be made in the future (IAB, 2011a). Hispanics represent every one in six residents and continue to be “aggressive early adopters” (IAB, 2011a). In May 2011, The Hispanic division of the IAB Multicultural Council, the Hispanic Research Working Group, updated its “U.S. Latinos Online: A Driving Force” report. The group gathered information from different sources to “convey a clear message about the size, growth and dynamics of Hispanics online as well as how to most effectively talk to them in-language and in-culture” (IAB, 2011b). Divided into three sections (U.S. Latinos, Latinos Online, and Spanish Preferred and Bilinguals Online), the report covers Census data, current and future statistics of Hispanics online, the average Hispanic adult Internet user, comparisons to non-Hispanic Internet users, and Bicultural/Spanish dominant Internet users (IAB, 2011b).

Amazon.com launched its Spanish language Kindle Store in December 2011. Launching with more than 22,000 titles (fiction and non-fiction), the store houses various best seller books from Spain (Wolford, 2011). As a result of being “part of the public domain,” more than 1,000 of the books are available for free (Wolford, 2011). The Spanish language Kindle Store's content include many categories and title selections, some of which include: Catalan, Galician, and Basque (Wolford, 2011). Short form content from El País and La Vanguardia and three titles from an award-winning author are also exclusively available (Wolford, 2011). The director of



the EU Kindle, Gordon Willoughby, said the ““Kindle is already the best-selling e-reader in the world” (Wolford, 2011). In addition to the launch of the Spanish language Kindle Store, Amazon also revealed its first Spanish language Kindle. (Wolford, 2011).

Due to the rapid growth of U.S. Hispanics online, many U.S. companies are attempting to reach Hispanics through implementation of Spanish language websites and online content. One of the top home improvement chains, Lowe’s, launched a Spanish language version of its store website (Wentz, 2011). The top advertiser for Hispanics, Procter & Gamble, launched a bilingual website targeting Hispanic women for “beauty and household tips and information about its brands” (Wentz, 2011). Kmart has not launched a Spanish language website but has become the first to partner with Google to create a Spanish language video channel on YouTube and broadcast an eight-part web series with characters wearing Kmart fall fashions (Wentz, 2011). Similar to Kmart, Old Navy partnered with Telemundo to launch a six-part “telenovela style” web series on Old Navy’s Facebook page tab “Estilos Robados,” Old Navy’s Spanish YouTube channel, and Telemundo Movil (Retailing Today, 2011). Univision Online

Univision’s website remains the most visited Spanish language website for Hispanics in America (Univision, 2011b). Its digital division, Interactive Media, Incorporated, continues to be recognized for its online traffic, impact on Smartphone users and continued connection to the Hispanic community. Interactive Media not only provides “truly integrated marketing solutions that connect brands with the most coveted consumer in America,” but it also offers specialized, original content for Hispanics through local and national websites (Univision, 2011a). This digital division includes 71 local online and mobile sites that are capable of attracting more than 27 million page views a month (Univision, 2011c). Extending beyond Univision’s television programming, the interactive properties give users audio streaming for 45 radio stations, pertinent local information (news, weather, traffic, and lottery results) , video content from Univision’s local television properties, interaction with local personalities/talent, engaging social networking and forum toolbars, and exclusive information on Univision’s community events and concerts (Univision, 2011c). In addition, Interactive Media has “one-of-a-kind” apps (the Univision Cocina App for Latin cooking, the official Univision App, the Univision Marcador App for real-time scoreboards of sports games/matches, the Univision Deportes App for sports teams’ updates, and the Univision Video App) that largely impact U.S. Hispanic Smartphone users (Univision, 2011d).

After researching and conducting a study on proprietary gaming that confirmed “growth potential of the U.S. Hispanic gaming market,” Univision Interactive Media chose to tap into this gaming market by partnering with the top online gaming information resource, GameSpot in 2010 (Talan, 2010). GameSpot will offer content for an original Spanish language video gaming (online and mobile) site for Univision.com (Talan, 2010). The video gaming site includes full access to a wide range of video game information and Spanish-language content from the GameSpot website (Talan, 2010). In November 2011, Univision was honored with a Media Vanguard Award for its mobile radio app. In the “Broadcast-To-Digital” category from Advertising Age, the app was considered the “Best Socially-Savvy Radio App” (Univision, 2011d). The Univision Radio App has over 305, 000 users among the iPhone, iPod Touch, and Android mobile platforms (Univision, 2011d). It increases Univision’s radio programming and mobile online streaming, and grants



access to Univision’s principal stations and top DJ radio shows within the United States and Puerto Rico (Univision, 2011d). In an effort to further expand Univision’s video content, Interactive Media announced a partnership with MobiTV to reach a larger audience base on mobile platforms (Business Wire, 2011). As of April 2011, Univision video content (ranging from telenovela episodes to sports and entertainment) is available to MobiTV subscribers via Smartphones and tablets through AT&T, T-Mobile, Sprint, and Verizon Wireless (Business Wire, 2011). Interactive Media’s president, Kevin Conroy, stated that providing Univision’s content using MobiTV’s established technological platform supports Univision’s “ongoing goal to provide users with great viewing experiences no matter what device they connect from” (Business Wire, 2011). This partnership with MobiTV gives Univision continued access to over 15 million subscribers (Business Wire, 2011).

Conclusions The Internet continues to grow in popularity and ubiquity among the Hispanic population as well as the US population as a whole. The online Hispanic population continues to grow nearly exponentially, but the overall audience still lags behind that of Whites and some other ethnic groups. Hispanics have embraced mobile Internet access via smartphones at a greater rate than other groups; and it’s not uncommon for Hispanics to use mobile Internet instead of a home internet connection. Facebook and LinkedIn are continuing to expand their reach among the Hispanic population and show no signs of slowing down. Ad spending on Hispanic-focused Internet sites also continues to rise, likely mirroring the Hispanic population’s increase. Companies throughout various industries continue to embrace the potential buying power of the increasing Hispanic population, leading them to expand their online marketing efforts. Univision is leading the way for Spanish language traditional media to establish themselves within the new multimedia Internet world. The future looks bright for the Internet as a whole, and Spanish media figures to be at or near the forefront.



References Advertising Age Hispanic Fact Pack. (2010). Ad Age Data Center. Advertising Age Hispanic Fact Pack. (2011). Ad Age Data Center. Arbitron (2011). The Infinite Dial: Navigating Digital Platforms Presentation Companion.

Retrieved October 16, 2011 from http://www.arbitron.com/downloads/infinite_dial_2011_execsummary.pdf

Business Wire (2011). Univision interactive media and mobiTV partner to expand Univision video content on leading mobile platforms. Retrieved December 1, 2011 from http://www.businesswire.com/news/home/20110427006266/en/Univision-Interactive-Media-MobiTV-Partner-Expand-Univision

IAB (2011a). IAB multicultural council concludes first-ever Hispanic marketing agency day. Retrieved December 6, 2011 from http://www.iab.net/clickodemayo

IAB (2011b). U.S. Latinos online: A driving force. Retrieved December 6, 2011 from http://www.iab.net/media/file/USLatinosOnline_RevisedMay2011FINAL.pdf

Livingston, G (2011). Latinos and digital technology, 2010. Retrieved November 20, 2011 from http://pewhispanic.org/reports/report.php?ReportID=134

Retailing Today (2011). Old navy launches Spanish language web series. Retrieved December 8, 2011 from http://www.retailingtoday.com/article/old-navy-launches-spanish-language-web-series

Scarborough Research (2010). Hispanics are important mobile marketing targets. Retrieved November 21, 2011 http://scarborough.com/press_releases/Scarborough-Hispanics-Mobile-Marketing-Targets.pdf

Talan, M. (2010). Univision interactive media & Gamespot announce partnership to deliver gaming news, content & information to U.S. Hispanic audience on univision.com. Retrieved December 1, 2011 from http://corporate.univision.com/2010/press/univision-interactive-media-gamespot-announce-partnership-to-deliver-gaming-news-content-information-to-u-s-hispanic-audience-on-univision-com/

The Nielsen Company (2010). A Snapshot of Hispanic Media Usage in the U.S. Retrieved October 17, 2011 from http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/Nielsen-Snapshot-of-Hispanic-Media-Usage-US.pdf

Univision (2011a). Interactive media. Retrieved December 1, 2011 from http://corporate.univision.com/portfolio/interactive-media/

Univision (2011b). Univision interactive media national. Retrieved December 1, 2011 from http://corporate.univision.com/media-brands/univision-interactive-media/

Univision (2011c). Univision interactive media local. Retrieved December 1, 2011 from http://corporate.univision.com/media-brands/univision-interactive-media-local/ Univision (2011d). Univision honored with media vanguard award for univision radio app.

Retrieved December 1, 2011 from http://corporate.univision.com/2011/press/univision-honored-with-media-vanguard-award-for-univision-radio-app/

Wentz, L. (2011). Few marketers target U.S. Hispanics with Spanish language facebook fan pages. Retrieved December 8, 2011 from http://adage.com/article/hispanic- marketing/marketers-target-facebook-fan-pages-u-s-hispanics/230066/

Wolford, J. (2011). Spanish Kindle store launches with 22,000+ titles. Retrieved December 8, 2011 from http://www.webpronews.com/spanish-kindle-store-launches-with-22000- titles-2011-12

Spanish Language Advertising 40


The State of Spanish Language Media Industries: A Summary of Spanish Language Advertising 2011

Jessica A. Perrilliat


Over the past several years advertising for Hispanic media has continued to increase. While in 2008 the general advertising market saw a large budget decrease from the recession, from 2006-2010, Hispanic advertising stayed consistent around 5-6% for total budget advertising (Association of Hispanic Advertising Agencies, 2011). Hispanic media advertising spending has topped all U.S. media advertising spending for the past seven years (See Figure 1). Although Hispanic media and U.S. media advertising spending both declined in 2009, in 2010 Hispanic media advertising spending recovered by 8.4%, a 1.9% difference from all U.S. media advertising spending (See Figure 1). Hispanic media advertising spending for 2010 was $4.3 billion from the top 500 advertisers (Association of Hispanic Advertising Agencies, 2011). Hispanic media advertising also recovered over $500 million and increased advertising spending by 14% (Association of Hispanic Advertising Agencies, 2011).


13.30%10.80%

6.80%

10.80%

4.20%1.90%

‐8.60%

8.40%

6.10% 9.80% 3.00% 3.80% 0.20%

‐4.10%

‐10.20%

6.50%

Figure 1: Hispanic Media Advertising Spending Growth From 2003 to 2010

U.S. Hispanic Media All U.S. mediaYear

Percen

t Chan

ge

Advertising



Individually, advertising spending for different forms of Hispanic media also improved. Kantar Media reported that Spanish language newspapers increased advertising spending by 2%, Spanish language television by 10.7% and Spanish language magazines by 5.5% (Kantar Media, 2011). Nielsen reported that overall, U.S. television (including Spanish language programming) dominated other media forms with $33.8 billion in advertising during the first half of 2010, but Spanish language television, specifically network and cable television, saw the most growth with 24% and 13% in the first half of 2009 (Nielsen, 2011b). During 2009-2010, Spanish language cable television decreased by -1.28%, but Spanish language network television increased by 24.16%. From 2010 until March 2011, Hispanic media advertising spending has seen a 0.8% increase in Spanish language television, a 22.3% increase for Spanish language magazines, and a decrease in Spanish language newspapers by -7.4% (Otlacan, 2011). Top Advertisers

The U.S. Hispanic population accounted for 56 % of net population growth from 2000-2010, and is expected to represent for 100% of the population growth for persons between the ages of 18-49 (Nielsen, 2011c). Although the Hispanic population continues to expand in the United States, some advertisers still have not chosen to target Hispanic media. Nielsen reported in 2010, that only 75% of the top 200 advertisers spent money on Spanish language television, “and those that did only spent about eight percent of the total advertising budget on Spanish-language TV” (Nielsen, 2011c). In 2009, the top five advertisers for Hispanic media were Procter & Gamble, DirecTV, Verizon Communications, Lexicon Marketing Corporation, and McDonalds Corporation, but for 2010, Lexicon Marketing Corporation was replaced by AT&T (See Table 1). Among the top advertisers for Hispanic media reported by Advertising Age, 38 of the 50 increased advertising spending (Advertising Age Hispanic Fact Pack, 2011). During the first quarter of 2011, the top five advertisers for Hispanic media were Procter & Gamble (#1), AT&T (#2), DirecTV (#3), McDonald’s Corporation (#4), and DeutscheTelekom (#5) (Nielsen, 2011a).

Table 1: Five Largest Advertisers in Hispanic Media Rank Marketer 2010 2009 % CHG

#1 Procter & Gamble Co. $197,717 $159,646 23.8

#2 Verizon Communications $137,966 $116,201 18.7

#3 AT&T $132,089 $101909 29.6

#4 DirecTV $128,911 $133,407 -3.4

#5 McDonald’s Corporation $117,269 $102,235 14.7




Hispanics Media Usage A recent Nielsen report broke down three myths about Hispanic interaction in the media: bilingual Hispanics don’t watch television (myth #1), I can reach Hispanics through general market campaigns (myth #2), and Hispanics are late adopters of technology, so using online and mobile campaigns are unnecessary (myth #3) (Nielsen, 2011c). Data shows that Hispanics use both languages when utilizing media. This means it is imperative for advertisers to cater to Hispanics who not only speak English but speak Spanish as well. As noted in Figure 2, Hispanic households viewed television in English, Spanish, or both. For the Hispanic households where English was the dominant language, Spanish language television only accounted for 3% of total time spent watching television, which means 97% of their time is geared toward English language programming. General market advertisers seem to overlook how many Hispanics watch television in the English language. By acknowledging Hispanics in advertisements, the advertising market could gain an advantage. In the Hispanic households where Spanish and English were both used, time spent watching television was divided equally between English language and Spanish language television. The Spanish dominant Hispanic households only spent 22% of their time watching English language television. Time spent watching television in the English language has the potential to grow if general market advertisers decide to incorporate Spanish language advertising into its programming. For example, Advertising Age reported that 57% of Spanish dominant Hispanics, 29% of English dominant Hispanics, and 42% of all Hispanic adults agreed to the statement “when I hear a company advertise in Spanish, it makes me feel like they respect my heritage and want my business” (Advertising Age Fact Pack, 2011). This study shows that the media advertising industry would benefit tremendously from targeting the Latino community.

Although 77% of U.S. Hispanics speak English, 61% of Hispanics that are aged 18+ prefer speaking Spanish in the household as opposed to the 17% who only speak English (Nielsen, 2011c). Since the majority of Hispanics aged 18+ would rather speak Spanish in their households, there is a “growing need for advertisers to better connect with Hispanics in the native language” (Nielsen, 2011c). For example, when a brand is advertised during prime-time on all English language broadcast networks, approximately 40% of Hispanics ages 18-49 would be reached, but Spanish language broadcasts would reach approximately 53% (Nielsen, 2011c). While a prime-time campaign for English language reaches only 19% of Hispanics who are Spanish dominant, a Spanish language broadcast campaign reaches 85% (Nielsen, 2011c). Nielsen reported that “new studies are finding that Hispanics are equally, if not more involved in emerging technologies than the general market” (Nielsen, 2011c). An estimated 62% of all Hispanics can access the Internet from home, and Hispanics are 44% more likely to have video and Internet enabled cell phones than the general market (Nielsen, 2011c). It is estimated that more than half of Hispanics who are mobile phone owners will use the mobile phones for the Internet this year, and by 2015, this number will rise to over 71% (eMarketer, 2011). According to a study done by comScore, 35% of U.S. Hispanic online consumers remember advertised products when shopping compared to the 22% of Non-Hispanic online consumers (comScore, 2010). The study also found that 31% of U.S. Hispanic online consumers enjoy watching advertisements compared to the 19% of Non-Hispanic online consumers (comScore, 2010).



7% 10%3%

44%

68%78%

44%

19%19%7% 3%

English Dominant English/Spanish Spanish Dominant

Figure 2: Time Spent Watching TV in the English and Spanish Language By Hispanics 18‐49 From 2009‐2010

Spanish language Cable Spanish language Broadcasts

English language Cable English language Broadcasts

(Adapted from: Nielsen, 2011c) Media and Culture When trying to attract Hispanics to the media, targeting “bicultural” Latinos is a strategy that the Hispanic advertising industry has implemented and found useful. One of many to begin this switch to bicultural programming was the English language cable channel targeted toward Latinos, SiTV, who announced in March that it would be changing its name to NuvoTV to better serve the bicultural Latino community (Steinberg, 2011). According to NuvoTV, 76% of U.S. Hispanics in large cities are considered bicultural (Multi Channel News, 2011). “Defined as those Latinos who speak English “exclusively,” “very well,” or “well” at home,” bicultural Latinos were projected to account for about 38 of the total 50.5 million Hispanics in the United States (Multi Channel News, 2011). MTV’s bicultural network, Music y Mas, conducted a study on young bicultural Latinos between the ages of 14 and 34. This study found that almost 50% of “new generation Latinos” wanted more bicultural programming (PR Newswire, 2011). New generation Latinos “are blending the Latino and “mainstream” American aspects of their identity routinely and frequently. Not only are they doing this themselves, but they expect their media and marketing to reflect this as well” (PR Newswire, 2011). Bicultural advertising is essential to



the new generation Latinos because they want marketing that regardless of language, illustrates who they are (PR Newswire, 2011). Today’s new generation Latinos are combining different features from other cultures and birthing the growth of the “Urban Latino” (PR Newswire, 2011). Bicultural Latinos as a whole are redefining what it means to be a Hispanic living in the United States, where it is not necessary to choose one culture over the other because they can involve themselves in both, concurrently (Huffington Post, 2011). Language is no longer a barrier for attracting Hispanics who speak English or Spanish. Advertising Agencies Hispanic advertising agencies are “more alive than ever” according to the co-founder of the original Interactive Advertising Bureau (IAB) Hispanic Committee, Liz Blacker (Blacker, 2011). Agencies with a committed multicultural strategy and employees, who are bilingual and know how to connect with consumers, have a large advantage over agencies (Blacker, 2011). In 2010, 39 out of the top 50 U.S. Hispanic agencies increased revenues (Advertising Age Hispanic Fact Pack, 2011). One of the top Hispanic digital advertising agencies in the United States, LatinMedios.com, was recognized by Inc. Magazine as number 709 on its “exclusive ranking of the nation’s fastest-growing private companies” (PR Newswire, 2010). In October 2011, Media Life Magazine reported that while English language magazines have seen the advertising page gains begin to slow down, Hispanic magazines are doing just fine (Vasquez, 2011). Ad pages for all consumer magazines have declined by 1.3%, but Hispanic magazines have increased by 0.6% in advertising pages and 23.8% in total advertising dollars (Vasquez, 2011). The Association for Hispanic Advertising Agencies held a conference with the theme “Is Hispanic Advertising Dead?” in order to challenge Hispanic advertising agencies to go beyond their Hispanic marketing focus (Adweek, 2011). It was suggested that Hispanic agencies branch out and truly be innovative in attracting consumers because no entity understands the consumers better than the Hispanic agencies (Adweek, 2011). The Association for Hispanic Advertising Agencies’ chairwoman, Jackie Bird, said Hispanic advertising agencies are “cultural experts with perspective and insight about Latino consumers” (Adweek, 2011). In addition to the Hispanic agencies, general market agencies are also beginning to develop multicultural strategies in order to stay relevant in the Hispanic market. PepsiCo was once one of the top 10 Hispanic advertisers in the United States but has over the years declined in ranking (Wentz, 2011). In 2004, PepsiCo was the sixth largest Hispanic advertiser (Wentz, 2011). In 2006, the company dropped to #17 (Wentz, 2011). During 2007, PepsiCo was #27, and in 2010, it didn’t make Advertising Age’s Top 50 Hispanic Advertisers list at all. PepsiCo decided to make some changes in the multicultural department and move “most of its U.S. Hispanic beverage business to the holding company's other two Latino shops, Miami-based Alma DDB and LatinWorks in Austin, Texas” (Wentz, 2011). Conclusion Advertising in Spanish language media as a whole has continued to recover from previous years. Independently, Hispanic media advertising has managed to stay consistent even when the general advertising market was on a decline. Hispanic media advertising continues to evolve because it sees the importance of targeting Hispanic consumers. Spanish language advertising has proven to positively impact the Latino market. Among Hispanic adults by



language preference, Spanish language marketing and advertising can help shape the decisions Hispanics make when choosing products. Hispanics in the United States are more interested in and responsive to advertising than other races (Hispanic Ad, 2011). Hispanic advertising agencies recognize this fact and understand that Hispanic consumers want to be included. General market advertisers are recognizing this as well. Through bicultural programming and by hiring more bilingual employees, general market advertisers are improving multicultural strategies in order to surpass Hispanic advertisers. The Hispanic advertising market is providing many opportunities for companies to create growth in revenue. The Association of Hispanic Advertising Agencies found that if over a five year span a company allocates one quarter of its overall ad spending to Hispanic media it would see an annual revenue growth of 6.7% (Association of Hispanic Advertising Agencies, 2011). According to Technomic, “chains that research Spanish-speaking consumers and hire marketing staff with a deep understanding of the market will have a leg up on their competitors” (Tristano, 2011). The future of Hispanic advertising will be one of major growth and opportunity in the Latino market. Not only will Spanish language media continue to target Hispanics through advertising but English language media will begin to better target Hispanics through advertising.



References Advertising Age Hispanic Fact Pack. (2011). Ad Age Data Center. Adweek (2011). Hispanic agencies eye future. Retrieved November 22, 2011 from http://www.adweek.com/news/advertising-branding/hispanic-agencies-eye-future-90926 Association of Hispanic Advertising Agencies (2011). Advertising 2011 budget alignment.

Retrieved November 10, 2011 from http://ahaa.org/downloads/pdf/AHAA_Advertising_Study_2011.pdf

Blacker, L. (2011). AHAA insight: Hispanic agencies more alive than ever. Retrieved November 18, 2011 from http://www.iab.net/iablog/2011/11/ahaa-insight-hispanic-agencies.html

comScore (2010). U.S. online-Hispanic consumers more likely to have positive association with advertising than non-Hispanics online. Retrieved November 17, 2011 from http://www.comscore.com/Press_Events/Press_Releases/2010/11/Hispanic_Consumers_More_Likely_to_Have_Positive_Association_with_Advertising_than_Non-Hispanics

eMarketer (2011). Minorities more active on mobile web. Retrieved November 17, 2011 from http://www.emarketer.com/Article.aspx?R=1008694 Hispanic Ad (2011). US Hispanics more receptive to ads. Retrieved November 10, 2011 from https://www.hispanicad.com/cgi-bin/news/newsarticle.cgi?article_id=33207 Huffington Post (2011). TV advertising evolving, to reflect influence of bicultural Latinos

(VIDEO). Retrieved November 22, 2011 from http://www.huffingtonpost.com/2011/10/02/tv-advertising-latinos-bicultural_n_991119.html

Kantar Media (2011). Kantar media reports U.S. advertising expenditures increased 6.5 percent in 2010. Retrieved November 1, 2011 from http://kantarmediana.com/insight-center/news/us-advertising-expenditures-increased-65-percent-2010

Multi Channel News (2011). Most urban Latinos are bicultural: Nuvo TV survey. Retrieved November 17, 2011 from http://www.multichannel.com/article/469765-Most_Urban_Latinos_Are_Bicultural_Nuvo_TV_Survey.php?rssid=20059

Nielsen (2011a). State of the media: Trends in advertising spend and effectiveness. Retrieved November 14, 2011 from http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2011-Reports/TrendsAdSpendanEffectiveness_Spreads.pdf

Nielsen (2011b). Global ad spending shows signs of growth. Retrieved November 14, 2011 from http://blog.nielsen.com/nielsenwire/global/global-ad-spending-shows-signs-of-growth/ Nielsen (2011c). What you think you know vs. what you need to know about U.S. Hispanics and media. Retrieved November 14, 2011 from

http://blog.nielsen.com/nielsenwire/media_entertainment/what-you-think-you-know-vs-what-you-need-to-know-about-u-s-hispanics-and-media/

Otlacan, O. (2011). Kantar media reports US advertising expenditures increased 4.4% in the first quarter of 2011. Retrieved November 10, 2011 from

http://www.adoperationsonline.com/2011/07/05/kantar-media-reports-us-advertising-expenditures-increased-4-4-in-the-first-quarter-of-2011/

PR Newswire (2010). LatinoMedios.com, a leading Hispanic digital advertising agency, made



this year’s inc. 500|5000 list. Retrieved November 22, 2011 from http://www.prnewswire.com/news-releases/latinmedioscom-a-leading-hispanic-digital-advertising-agency-made-this-years-inc-5005000-list-101846103.html

PR Newswire (2011). First-ever research targeting new generation Latinos ages 14-34 reveals nearly 50% seek more bilingual/bicultural content. Retrieved November 17, 2011 from http://www.prnewswire.com/news-releases/first-ever-research-targeting-new-generation-latinos-ages-14-34-reveals-nearly-50-seek-more-bilingualbicultural-content-124354893.html

Steinberg (2011). SiTV to change name as it aims for bicultural Latinos—cable outlet to be known as nuvo TVstarting july 4. Retrieved November 22, 2011 from http://www.tvweek.com/news/2011/03/si_tv_to_change_name_as_it_aim.php

Tristano, D. (2011). QSR Hispanic advertising up in 2010. Retrieved November 8, 2011 from http://www.technomic.com/_files/blog/darren/qsrhispanic.pdf Vasquez, D. (2011). Who’s not hurting: Hispanic magazines. Retrieved November 22, 2011

from http://www.medialifemagazine.com/artman2/publish/Magazines_22/Who-s-not-hurting-Hispanic-magazines.asp

Wentz, L. (2011). PepsiCo makes Hispanic move to alma DDB, LatinWorks from dieste. Retrieved November 22, 2011 from http://adage.com/article/hispanic-marketing/pepsico-makes-hispanic-move-alma-ddb-latinworks/229723/

Spanish Language Mergers & Acquisitions 48


The State of Spanish Language Media Industries: Mergers & Acquisitions in Spanish Language Media

Dr. Alan B. Albarran


Merger and acquisition activity was practically nil in 2011 among the Spanish language media properties. Only a handful of acquisitions took place, none of them of any major significance.

The reasons for the weak M&A market are many, and are also reflective of other industries. First, the credit markets remain tight and complicated. Lenders are still hesitant to lend money, and only those with stellar credit and strong equity need apply. Second, the global banking problems were often in the news—especially from the European banking industry, with Greece, Italy, Portugal and Spain all being mentioned as possible default candidates. Third, 2011 was a year with no political advertising and no Olympics—significant events that will occur in 2012 that could spawn some activity.

As in 2010, media stocks continued to rebound in 2011, rebuilding their cash positions. But like last year none of this cash has led to new acquisitions, especially for companies engaged in Spanish language media.

Bankruptcies made a lot of news in 2010, but thank goodness that was not the case in 2011. The economy is slowly growing and by the end of the year unemployment was starting to move in a positive direction, but still well below what is needed to put many Americans back to work.

The transactions that did occur in 2011 were few in number. Here are a few deals that were completed or announced during the year, so we have something to talk about in this section of the report.

Clearly the biggest “deal” involving Spanish language media was the consummation of Comcast’s acquisition of 51% of NBC Universal. As this merger was announced in previous reports, it was not a new deal but just the final “chapter” after receiving regulatory approval from the FCC and the Department of Justice’ Antitrust Division.

Una Vez Mas, the American division of Azteca America, acquired San Francisco Station KEMO-TV 50.

On the newspaper side, two newspapers in Charlotte, North Carolina merged together--Que Pasa and Mi Gente—under the ownership of Latino Communications LLC of Winston-Salem.

Mergers & Acquisitions

Spanish Language Mergers & Acquisitions 49


Will Spanish Language media transactions increase in 2012? At the beginning of 2012 the acquisition market for media was pretty quiet. This year will be a big year for political advertising, and the Olympics take place in London. But any deal announced now won’t be able to be completed in time to likely take advantage of any surge in M&A activity. Look for 2012 to again remain sluggish for M&A activity in the Spanish language space.

Projections 50


Projections for 2012

Dr. Alan B. Albarran Center for Spanish Language Media, University of North Texas

What does 2012 hold for Spanish Language Media in the United States? Following the usual caveat stated in previous editions of this annual report, no one at our Center claims to have a crystal ball, but we did promise to continue to be fair and point out our misses—as well as any hits—in this section of the report.

We offered 7 projections last year, and were correct for the most part on all of them for the first time ever. Most were what can fairly be called “safe” predictions. Here is a brief recap:

We projected the following items that came true (for the most part) in 2011:

We predicted that the 2010 Census would show that the Latino population would be the main driver of all population growth in the US, and this was found to be true, as the Hispanic population surged past 50 million people.

We expected Spanish language advertising to show positive gains in all major categories except for print in 2011. We predicted 5% for TV only to see actual growth top 10%; we predicted 8% for radio which fell short of this goal, and 15% for online media which was in line depending on which source is consulted.

Another safe prediction was that newspaper circulation and print advertising would continue to falter. We anticipated a reduction in overall circulation and advertising spending in the nature of 3-5% in most markets around the U. S., and regretfully this also held true.

We thought more Spanish-speaking audiences would be adopting social media, with Facebook continuing as the leader in the U. S. Studies by Pew and other entities confirmed this trend as well.

Acquisitions were expected to remain sluggish in 2011, and this proved true with nothing major happening in the way of M&A activity.

We argued that bilingual and bicultural marketing would remain big goals for many companies seeking to capture some of the growing Latino market. Advertisers continue to recognize the power of the Latino consumer and are making inroads in these efforts.

We safely suggested that Spanish language novellas would continue to dominate prime-time ratings. That happened, with Univision continuing its dominance in prime-time.

So, given this successful record at some softball predictions, here are a few that we can offer for our readers for 2012:

Projections

Projections 51


Advertising spending on Spanish language media will get a huge boost from what is expected to be a banner year for political advertising, highlighted by the November Presidential elections. The Olympics will also be a banner year for those networks connected with NBC and Telemundo. We expect network television advertising to show double-digit growth in 2012, perhaps by as much as 12-15%, mostly driven by political advertising.

Speaking of political advertising, we look for 2012 to set a new record for this category, driven by the anticipated key swing states like Florida, Colorado, Nevada and Ohio. We won’t offer a specific dollar amount; just that it will be the year that the most money in history is spent on political advertising targeting Latinos.

We expect radio growth in the Spanish space to be positive thanks also to political advertising, but at a slower pace—probably around 3% for 2012.

Digital media and its various platforms will show the largest percentage growth in SL advertising in 2012, once again reaching double-digit territory.

With the anticipated debut of Mundo Fox, the joint venture between RCN (Colombia) and News Corp., look for Fox to convert some of their broadcast signals in weak duopoly markets with growing Latino populations to Mundo Fox to help launch the new network by the fall of 2012.

While the economy is showing signs of a sluggish revival, we are not sure that all the companies involved in Spanish language media will survive to 2013. This could be a challenging year for Una Vez Mas and LATV, who have struggled to gain audiences and advertisers.

One established company that could end up in some type of bankruptcy proceeding by year’s end is Spanish Broadcasting System. It is possible the company could be put up for sale with some assets going to different buyers.

With that, we will bring our forecasting to a close. From our entire staff, thank you for reading the annual “State of Spanish Language Media” Report. We welcome your comments and feedback at [email protected]

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