Chicago is the World

Have you noticed the growing number Latino oriented  ads on television and in the newspapers and magazine? Well there’s a good reason and its great news for the Latino news media. This story from adweek explains:

The Hispanic Market Is Set to Soar

The 2010 Census will radically alter the demographic map and the rules of engagement between Hispanic and general-market shops

Nov 2, 2009

- Noreen O’Leary

As a result, agencies that market to this segment are finding themselves in a strong position, armed with the skills and techniques to take on general assignments from big-name clients. Meanwhile, in a tight business environment, general agencies are starting to compete for work previously reserved for specialist shops.

Is an already competitive agency landscape set to become even more so?

“In the 2010 Census, we’ll see confirmation of a shift from Hispanic consumers who are first generation, where Spanish is the dominant language, to second-generation, bilingual, bicultural consumers. It totally transforms how we market,” says Cynthia McFarlane, chair of Publicis Groupe’s Conill, a Latino agency. “These are consumers who are as influenced by American culture as the country of origin of their families. There is a new American culture forming, and these consumers are having a tremendous impact on mainstream America.”

McDonald’s, which sees higher brand loyalty among its Hispanic consumers, has added offerings like breakfast burritos to its national menu. In further evidence of the growing bilingual voice of Hispanic consumers, McDonald’s runs ads with Spanish taglines in general-market media, and earlier this year used “Spanglish” in general-market advertising for the Quarter Pounder.

“We know the general market has become increasingly multicultural, with Hispanic music, Hispanic tastes, the Hispanic palate influencing a lot of general-market initiatives,” says Cristina Vilella, director of marketing at McDonald’s USA. “We lead with Hispanic insights but make sure they appeal to the general market.”

That blurring of distinctions within the Hispanic marketplace hints at the changes ahead for agencies and media firms. Hispanics now have about $863 billion in discretionary annual income, more than any other minority group in the country. (As of the third quarter, Americans overall had disposable income of $10.8 trillion.) Agencies argue that spending power is still underestimated and that upcoming Census findings — expected to be released beginning in early 2011 — will deliver a wake-up call to marketers.

“It will be a huge eye-opener when we see the growing affluence of the Hispanic marketplace, not just in buying power but also in household wealth,” says Conill’s McFarlane.

“We have 15 percent of the market but only 5 percent of the marketing dollars,” says Ingrid Otero-Smart, CEO of Interpublic Group’s Casanova Pendrill. “You’re going to see more general-market agencies pursue Hispanic accounts. They didn’t care when our budgets were $10 million or less, but now that we are dealing with more robust budgets and theirs are being cut, it’s a different story.”