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BizReport : Advertising archives : February 28, 2007

Hispanic advertising to outpace general advertising

The Hispanic population has quickly grown to be the largest minority population in the United States, and as such the advertising market for the group is wide open. According to a recent study, advertising growth within the Hispanic population will outpace the general market by 2010.

by Kristina Knight

"Advertising growth targeting Latinos is expected to outpace the general market over the next several years. Both the television and radio sectors should benefit from increased interest in targeting the demo," said Deana Myers, Kagan media analyst.

According to Kagan Research, Hispanic advertising will reach $5.5 billion by 2010, with a growth curve of 32% for Hispanic cable networks. General broadcast networks will show 12% growth during the same period.

Another interesting finding from the study is that Hispanic multichannel penetration is expected to grow more than 70% through 2010. Television stations will see slightly less growth than Hispanic radio stations, which are expected to grow past their English language counterparts between 2006 and 2010. Programming will be the key to growth. Cable and broadcast television as well as radio station programmers will have to be on the cutting edge to engage this growing audience. Cable networks, especially, will likely be on the front edge of this programming phenomenon.

With the incredible growth of the Hispanic market and its buying power there is also a great opportunity for growth among advertisers. Hispanic buying power is expected to exceed $900 billion by 2010. Properly targeting the demographic, however, will determine how well advertisers do, and so far very few advertisers are seeing the difference between the Hispanic market and the general public.

Hispanic Advertising Agencies Fund Chair Carl Kravetz said, “Hispanic marketing is flourishing. Yet still more than 100 of the top 250 television and print advertisers are allocating less than one percent of their total budgets. . .to reaching the influential U.S. Hispanic consumer.”

Tags: hispanic advertising, Hispanic target group

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