Hispanic Advertising Allocations Equate to Corporate Revenue Growth

AHAA Total Market Benchmark

Study Advertisers Survey Preliminary Findings

November 4, 2013 - ANA Multicultural & Diversity Conference

Context Are segment strategies

still valid?

2

Goal To conduct benchmark research on the Total Market approach as a first step in identifying trends and providing benchmark for developing best practices for all marketers.

3

Methodology Online survey among 321 marketing professionals

from client-side, general and multicultural specialized ad agencies, media buying agencies, p-r and

consulting firms.

This preliminary report only reflects Advertisers (n=116) sample.

Agencies and combined insights will be reported at a

later time.

AHAA appreciates

the support of

ANA, Viacom MTV3,

Univision

and Santiago

Solutions Group

Getting Total Market Right Overall AHAA Platform Phases

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IMPROVE Marketing Outcomes

1. TM Benchmark • Premlinary

Findings @ ANA

2. RoundTable • Present detailed

study @ AHAA

3. Education • Disseminate

findings

Most Advertisers Are Familiar with Term Total Market Strategy

Yes 78%

No

Q1: Are you familiar with the term “Total Market Strategy” referring to a marketing approach? (n=116) Q2: What does a “Total Market Strategy” mean to you? (open ended)

5

Total Market Strategy is in the eyes of the beholder; no standard exists

Less targeting to particular ethnic

consumers, MORE leveraging broader

strategies that will appeal to all in new

multicultural marketplace.

Everything comes out of one pie—the

same idea is adapted to different

audiences; the same budget is used to

reach all the segments; some say

English only is enough to effectively

reach nearly all

Understanding upfront the market in

totality as well as segment specific to

ensure that nuanced needs &

opportunities are effectively addressed

across 360 strategies-tactics

Integrating Multicultural into every step

of the business process and marketing

execution to fully take advantage of

growth potential across Hispanic,

Multicultural, Millennial & Caucasian.

Integration v. Adaptation

Addressing Nuances v. Appeal to a multicultural nation

Q1: Are you familiar with the term “Total Market Strategy” referring to a marketing approach? (n=116) Q2: What does a “Total Market Strategy” mean to you? (open ended) 6

Unaided Definitions Cover a Very Wide Spectrum

7 Q3:What do you believe is the primary purpose of a Total Market Strategy? (n=80) Q4: Do you believe there is a secondary benefit to a Total Market strategy? (n=74)

9 in 10

Half emphasize

Budgets

4 in 10 emphasize Marcom

Advertisers believe the Primary Purpose of a

Total Market Strategy revolves around…

Effectiveness Efficiency

8 Q5: Does your company currently practice a Total Market strategy? (n=71) Q13: If select (a) in Q5… Select the statement that applies best: (n=37)

About Half Of Advertisers

Surveyed Say They Are

Practicing Some Level of

TM Strategy

54%

Uncertainty Pushes Non-Practioners to Remain on the Sidelines

There appears to be quite a bit of hesitation when it comes to practicing TM strategy

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54% No

46%

Exploring 45%

Planning 15%

Ignoring 36%

No Go 3%

My company is investigating TM

but is not sure whether this strategy

will be implemented in the future

My company has

not thought about a

TM strategy at all yet

My company

is planning

to

implement a TM

strategy

within the

next year

My company

has decided

not to

implement a TM

strategy now

or in the

foreseeable

future

Q5: Does your company currently practice a Total Market strategy? (n=71) Q6: If no to Q5, please select the statement that applies best to your company… (n= 33)

10 Q15: If select (a) in Q5… My company employs a Total Market strategy… (n=37)

Practioners Tend To Employ TM Strategy Selectively; Not Across All Brands

For a few select brands, 54% Across all

company brands, 35%

For one test brand, 14%

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Org Structures Vary Widely –Few Spread TM Function Throughout

COE w/ Budget Ctrl

14%

COE Consultative

23%

Individual Champion

across brands

33%

Each brand responsible

29%

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2 in 3 rely on Champion or Center Of Excellence

Q17: If select (a) in Q5… How does your company structure to address Hispanic marketing in particular? (n=36)

The Jury Is Out for Advertisers –Half Believe TM Strategy will be Positive

While more than half believe TM Strategy will ultimately benefit their company, 44% are concerned about implementation

Q32: Do you believe that Total Market strategy is… (n=53)

A positive thing that will ultimately benefit my company

Can be good or bad based on how it is each client executes it

A nice idea but not realistic in implementation

53%

36%

8% 8%

12

Q37: Have you or your company experienced any positive Total Market business results to-date (check all t hat apply: (n=32)

Total Market Is Proving Incremental Results

3% 6% 6%

9%

13%

16%

22%

25% No, no measurable results to date…

too soon to see results

Yes, increased market share

Yes, increased efficiency

Yes, revenue growth

Yes, increased ROI

Yes, increased distribution

No, no measurable results to date… TM may not be impacting business metrics

Yes, and TM is closely monitored along with other major corporate initiatives

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Most Practioners Expect to Expand Total Market Initiatives

Slightly

expanding initiatives

Still measuring &

testing

Other

Q36: One year from now do you believe: (n=41)

54% 27%

17%

2%

Scaling back and

re-strategizing

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Directors to C-Suite Share Some Common Ground of What TM Strategy Should Be

• Inclusive of Caucasian, Hispanic, African American, Asian American and LGBT

• Reflective of the impact of multiculturalism on America’s new ‘total’ culture

• Include cultural cues and elements from different ethnic groups

• Showcase diverse talent

• Draw on universal truths that can span across segments

• Lead to efficiencies and increased effectiveness

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Total Market Approach in Marketing

Hispanic African American Asian

Women LGBT

+

TOTAL MARKET

DIVERSE SEGMENTS

The New American

Market

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People with

Disabilities

Diverse Segments

Continue To Be

Relevant

Conclusions Total Market initiatives are in the early stages of trial and implementation. To date there is no consensus on any one approach.

However, most marketers feel that that TM strategies are likely to lead to more efficient and effective marketing. As they are better understood, we expect TM efforts to expand and lead to more effective growth models.

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What’s Next

AHAA will continue to bring the

best minds in the industry to

define Total Market approaches

more uniformly, develop

guidelines, processes and share

learnings for successful

implementation.

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To share case studies, ideas, questions or comments, please contact: Horacio Gavilan, President of AHAA, at 703-296-5069,

hgavilan@ahaa.org or Carlos Santiago, Chair, AHAA Research Committee, at 818-736-5661,

Carlos@SantiagoSolutionsGroup.com

Join the conversation. Visit AHAA’s Research page at

http://ahaa.org/default.asp?contentID=27 and

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