November 17, 2015.- Luxury Daily by Forrest Cardamenis
Spanish-language advertisements contribute more to the growth of the automotive sector than English-language ads, according to a new report by the Association of Hispanic Advertising Agencies.
To achieve a nine-percentage-point growth in total market annual revenue, only five points of ad spend need to be reallocated from English to Hispanic media. The results suggest that the Hispanic market may be underserved and is a good target for automakers looking to grow.
“This year, we have found in our study series that consumer packaged goods, retail, financial services and insurance companies shifting ad spend allocation from English to Hispanic-dedicated media experience a significant boost in corporate revenue growth while companies decreasing Hispanic allocation tend to see a slow down,” said AHAA research chair Carlos Santiago in a statement. “The numbers we are seeing in the auto sector is far greater.
“This is one of the highest allocation growth impacts found in any category studied thus far, pointing to the vast untapped opportunity available across all categories.”
“AHAA Insight Series: Hispanic Media Allocation Trends 2010-14 & Impact on Total Market Revenue Growth” looks at the changes in ad spend and the total growth of over 25 automakers.
A change is gonna come
The findings are not exclusive to the automotive sector and suggest a deprived Hispanic market eager to experience new brands. Automakers seem privy to the trend, increasing ad spend in Hispanic media by 163 percent from 2010 to 2014 compared to a 30 percent increase in English media.
The shift in allocation of funds in automotive outpaces other sectors. According to the report, the sector doubled the average Hispanic media allocation from 4.2 percent to 8.4 percent in four.