AHAA released its 2010 Report on Hispanic Advertising Spending, which revealed that there is a connection between consistent and significant investment allocations of more than 14.2% in Hispanic marketing and high levels of overall topline revenue growth.
The AHAA analysis found that there is indeed a strong, positive relationship between the percentages of overall ad spends allocation to Hispanic media and a company’s revenue growth. The AHAA study found with a confidence level of 99 percent that a Best-In-Class company allocating one quarter of its ad spend to Hispanic media over five years, would generate annual revenue growth of 6.7 percent.
Best-in-class and leaders:
Three out of five Hispanic Best-In-Class categories: Subscription TV, Auto Insurance & Financial Services catapulted a total spend of $400 million.
The Beer category maintained its Best-In-Class standing and edged 1.2 share points in allocation to 15%.
Direct Consumer Marketing was the only Best-In-Class category that decreased its spending, reducing spend by 33% over its pre-recession level of $118 million in 2006.
Four categories among Followers increased their dollar spend since 2006, led by Packaged Goods especially Food manufacturers within it, which boosted their investments in Hispanic consumers by 44 percent compared to only 16 percent up among Non-Hispanic traditional media.
Among the Laggards, the Pharmaceutical and Automotive Dealers categories experienced decreases in excess of $50 million each. The Financial services category has increased its focus on the Hispanic segment with both the subcategories of Investment Firms and Bank Mortgages showing healthy recovery.
Among the 13 in denial categories, all buy three categories, Diet-Supplement-Vitamins, Insurance-Life, and Luxury Brand, experienced decreases in Hispanic allocation. The Private Investment category took the biggest loss among In Denial with an approximate decline of $86 million.