Hispanic Advertising Trend in America
Spanish Language Ad Spending Led by BMP, P&G and Lexicon
Apr 13, 2009
The Association of Hispanic Advertising Agencies (AHAA), a group of more than 70 firms located in 10 states, contends that about eight percent of American advertising should be spent in Spanish language media. It says that figure is based on the Hispanic percentage of the total American population and buying power
"The Hispanic advertising industry is growing four times faster than all other sectors of advertising," AHAA said on its website in 2009.
According to a July 16,, 2007 United States Census Bureau news release, there were 35.3 million Hispanics in the nation in 2000. The bureau estimated the number at 44.3 million by the middle of 2006. AHAA said it had climbed to 45.5 million by July 2007, which was 15.1 percent of the USA population of 301.6 million.
The association analyzes the Hispanic proportions of advertising spending by 500 major American firms. According to its 2008 report, the 500 companies spent $4.5 billion on advertising in Spanish language media in 2007. That was 5.6% of the $79.7 billion they spent in all media.
Broadcasting Media Partners Inc.
Broadcasting Media Partners Inc. (BMP) spent $206.9 million, more than any other company, in Spanish media. That was 99.5 percent of its total advertising. As owner of the nation’s largest group of Hispanic media, it may have also been the largest recipient of Hispanic ad spending.
Proctor and Gamble spent $168.7 million, more than any other consumer products company did in Spanish media. That was 5.1 percent of its total American advertising. AT&T (7.5% of its total spending), General Motors (6.1%) and McDonald’s (13.5%) were the only other consumer companies to spend over $100 million in the Hispanic media.
Lexicon Communications Group, which calls itself the oldest crisis management company in the nation, was third in Spanish language ad spending with $159 million, which was nearly 100% of its total advertising.
Other major companies spending relatively high percentages of their adventising in Hispanic media included All State Insurance 17%, Walmart 14.9%, State Farm Auto Insurance 14.3% and J.C. Penney, 14.3%.
Federal Government Hispanic Advertising
The United States federal government spent $102.8 million, which was 15.4% of its total.
SAB Miller led the three major brewing companies in Hispanic advertising with $45.4 million, which was 21.4% of its total. Anheuser-Busch spent $38.5 million (8.7%) and Molson Coors spent $25.8 million (15.1%). Heinken spent nearly $18 million, which was 17.9% of its total. Miller and Coors have since merged.
The majority of AHAA agencies are located in California (21), Florida (19) and Texas (15). New York has eight AAHA agencies serving the Hispanic community; Virginia, Georgia, Illinois and North Carolina have two each; and New Jersey and Puerto Rico have one each, according to AHAA’s latest listing.
AHAA says its member agencies blend "cultural understanding, market knowledge, proven experience and professional resources to make them uniquely qualified to communicate with Hispanic consumers."
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