A CYNOPSIS MESSAGE FROM UNIVISION

CHECK YOUR PLAN.
[    ]  Bigger
[    ]  Younger
[    ]  DVR Proof
[ X ]  All of the above.

UNIVISION. The New American Reality.

visit  www.univision.net/balanceyourplan
Source:  The Nielsen Company, NPM, 12/27/10-12/25/11, Mon-Sat 8-11pm/Sun 7-11pm, Live+SD, A18-49(000).
Live viewing data based on Live, Live+7 (UNI, ABC, CBS, NBC, FOX).  Qualifications available upon request.

Cynopsis Media presents: 
Upfront 2012 – The Spanish Language Market
05/09/12

Good morning. It’s Wednesday, May 9, 2012, and this is your fourth installment of this special series on this year’s Upfront season. 

SPANISH LANGUAGE UPFRONT:

By Daisy Whitney

If last year’s upfront theme for the Spanish-language networks was the epic growth in the Hispanic population that the Census had demonstrated, then this year’s focus is going to be on the refinement, nuance and fine-tuning in reaching this consumer segment.
        
It’s a given that the Hispanic consumer is powerful one – they have strong buying power, attend movies on opening weekends, and adopt technology early. They are also young – Nielsen said more than 60% of the U.S. Hispanic populations is under 35. “The Census put a spotlight on the importance of this consumer and now [marketers] are looking a little deeper and are seeing Latinos over-consume in many key categories and represent an untapped growth opportunity,” said David Lawenda, President of Ad Sales & Marketing at Univision, which competes not only for Spanish-language money but also broadcast money since it’s one of the highest-rated of all broadcast networks.

Indeed, marketers too are looking more closely at their plans to ensure they are reaching Hispanics. “Now, the question is how are you delivering and making the Hispanic demo a part of your business.” said Steven Wolfe Pereira, Executive VP and Managing Director of MV42/MediaVest Multicultural. He’s expecting a strong showing from Spanish-language networks this upfront, and an added boost will be driven by upcoming presidential election spending. The Hispanic vote will likely be critical in determining the next president, so look for candidates to gobble up ad time on networks tailored for those constituents, he said.
        

A CYNOPSIS MESSAGE FROM UNIVISION

GALAVISIÓN is Spanish-language cable’s #1 network, delivering
an average of 2-3 times the audience of its nearest competitor.

GALAVISIÓN connects U.S. Hispanics to the very best of modern Mexico, with edge.

Source:The Nielsen Company,NPM-Hispanic 9/26/11-4/29/12.
Most current data Total Day: Mon-Sun 7A-2A (time period data)
Ranking based on Hispanic Total Viewers 2+,Hispanic Adults 18-49,Hispanic Adults 18-34

Upfront Up

Networks too say the market looks healthy. “We expect market volume to be up double digits from a combination of advertisers increasing their spend from last year and the addition of many new advertisers and brands into this upfront,” said Jacqueline Hernandez, Chief Operating Officer at Telemundo. “We see very little evidence of advertisers deciding not to return to the upfront this year.”

The increase won’t likely be as much as last year’s, which was buoyed by the release of Census figures, but it will be up, said Tom Maney, Senior VP of Ad Sales at Fox Hispanic Media. “This year we don’t see the same level of growth, but we do see a significant increase over last year in the 8-10% range. This is due to the growth of the three cable networks as well as MundoFox, the new broadcast network which will be launching this fall.” MundoFox will reveal details of its programming at its upfront May 16.

The scatter market so far this year has been robust, and that should usher in a healthy upfront in dollar volume, said Mike Reid, Executive VP for Estrella TV. 

A CYNOPSIS MESSAGE FROM UNIVISION

Univision’s new UVideos digital video network brings
the very best videos for U.S. Hispanics to virtually every platform – PCs, tablets, mobile phones and more.

Thousands of hours of exclusive novelas, sports, news and specials, plus powerful new sharing tools that generate non-stop engagement.

Discover, Discuss, and Share at UVideos.com .

Natural Growth

The Hispanic market is one of the few natural growth areas in the TV business. “Hispanics are the fastest growing ethnic segment expected to grow 167 percent from 2010 to 2050, compared to 42 percent for the total population,” Nielsen said in its State of the Hispanic Consumer report for the second quarter. Their buying power should grow from $1 trillion in 2010 to $1.5 trillion in 2015, Nielsen said.

News Corp. is tapping into the Hispanic market with the fall launch of broadcast network MundoFox. In addition, many of the existing Spanish language cable networks are gaining more traction with marketers and cablers, from Fox Hispanic Media, to Discovery en Espanol, to Nuvo TV, Pereira said. He added that marketers are eager for both Spanish-language content and English-language content targeted to Spanish speakers and bilingual Latinos. His clients, such as Walmart, Coke, Kraft and P&G, have all looked more deeply at the Hispanic market, and how to better engage this consumer. If a marketer is trying to reach moms, for instance, they’re often also looking at how to reach Hispanic moms, he said. “That’s where they are finding the growth.”

“Total market” was a term used a lot last year, but now more marketers are aiming to remove the barriers between their English-language plans and their Spanish-language plans to engage Hispanics and non-Hispanics across the board, said Victor Parada, VP of Advertising Sales for Discovery U.S. Hispanic.

In fact, Univision’s pitch to buyers will be that its network, with a median age of 36, can help them balance a plan. “We are so much younger [than other broadcasters] by a whole generation. The other thing we deliver is strong live viewing,” Lawenda said, adding that Univision’s prime-time programming is watched live 94% of the time. “That’s the power of novelas and sports.”

The live audience is a boon for movie studios and quick-serve restaurants trying to drive business over the weekend with promotions and film openings. In the last 18 months Univision has activated 200 new brands in all categories and its dollars have grown by double digits.

The rebounding economy is fueling an already strong advertising market, added Craig Geller, Senior VP of Ad Sales for nuvoTV, which boasts an affluent bi-cultural Latino audience. “At nuvoTV, we have seen a very strong scatter market that we expect will lead into huge growth in the upfront. We saw very strong growth across all major advertising categories in 2011 and expect this to accelerate further this year, particularly among luxury brands with new Nielsen research showing that we deliver one of the highest household median incomes in all of television.”

A CYNOPSIS MESSAGE FROM UNIVISION

We’ve got 48 of the top 50 shows with bilingual A18-49.

Growing Categories

The Hispanic market has been strong in wireless, quick-serve restaurants, movies and other categories. FHM’s Maney expects continued growth in auto too. He’s seen more advertising from the likes of Chevy, Ford, Chrysler and Honda joining some of the more upscale brands such as Infiniti, BMW and Lexus, he said.

Discovery’s Parada said more marketers are deepening their buys by adding Spanish-language cable now, with increases in the retail and beer categories.

Other categories are robust too. “The entertainment category – particularly movies and DVDs – has skyrocketed lately,” said Court Stroud, Director of National Corporate Sponsorship & Sales for Vme. “Automotive also appears very robust on Vme and, I believe for the first time, we’re experiencing a lot of interest from pharmaceuticals.”

Telemundo’s Hernandez agreed. “We see growth in almost all categories, with auto, retail, QSR and movie studios leading the way. We are hoping to also see a significant amount of pharmaceutical business coming into this upfront that we have not seen in years past.”

Telecom will have a bigger presence and has performed well in scatter, thanks to new product launches and the absence of any mega-mergers that would hold back budgets, said Estrella’s Reid.

Challenges

Despite the growth though, challenges remain for the Hispanic-centric networks. Some of the smaller networks still face big hurdles in building awareness and gaining attention, while some of the bigger networks still have to prove they have earned a seat at the big kids table.

“Advertisers are more engaged in the bilingual/bicultural space than ever before,” said Luisa Fairborne, VP of Ad Sales for Tr3s. “One of the challenges is that the budget spend is still going to the Spanish dominant audience. However we’re slowly helping marketers understand the need to develop strategies that consider this specific demo, to better serve the Hispanic market and experience results for their brand.”

Later —
Daisy Whitney for Cynopsis
05.09.12

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Mike Farina – VP/Sales and Marketing – 203-218-6480 / [email protected]
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