cial radio stations in the U.S., which grewby only 10 percent during that time,according to M Street Corp., a Littleton,N.H.-based publisher and data supplierfor the broadcast industry. Spanish-lan-guage stations also capture a small butincreasing portion of all U.S. radio lis-teners—7.6 percent, up from 6.5 percentin 1999, reports Arbitron.

However, despite the rapid growthof the Hispanic population and thepopularity of Hispanic radio, ad spend-ing is not keeping pace. The share ofHispanics in the U.S. has almost dou-bled between 1980 and 2000, accordingto the U.S. Census Bureau, and Hispan-ic consumers represent 13 percent ofthe U.S. population today. Yet Hispanicradio received only 3.3 percent ($607million) of the $18.4 billion ad dollarsspent in 2001, according to HispanicBusiness magazine and the RadioAdvertising Bureau.

Why aren’t big firms advertising onHispanic radio? Patricia Suarez, presi-dent of Suarez/Frommer & Associates,Inc., a Pasadena, Calif.-based advertis-ing and communications firm, sayslarge companies don’t advertise on His-panic radio because they believe His-panic consumers can’t afford to buytheir products.

What’s more, a report by the CivilRights Forum on CommunicationsPolicy, a Washington, D.C.-based non-profit, found that some advertisersavoid ad buys on radio stations thathave a Spanish format, believing thattargeting Hispanics could erode theirelite brand status. Some firms want to“disassociate their company’s imagefrom minority consumers,” accordingto the report. In addition, companieshave incorrectly stereotyped minorityconsumers as inappropriate targets forcertain luxury products or services. Asa result, some stations that program tominority listeners “are excluded [fromad buys] based on average listenerincome, regardless of data about con-sumption patterns,” states the report.

In other cases, Hispanic radio sta-tions lose out because some advertisersdon’t target by ethnic background. Andthe national advertisers who do targetHispanics often prefer television spotsbecause of TV’s greater reach, says Jes-

sica Pantanini, managing director ofTapestry, the media arm of San Anto-nio-based Bromley Communications.

There is some basis to marketers’belief that Hispanic radio audiencestend to be less upscale than the overallradio audience. The average householdincome for Spanish-format-radio lis-teners is $45,532, compared with anaverage of $64,568 for all radio listenersin the U.S., according to MediamarkResearch, Inc. The average for Spanishradio is likely to be even lower giventhat the survey was conducted in Eng-lish only, eliminating less affluent andless assimilated Hispanic consumers.

“[Hispanic radio listeners] are goodfor almost everyone, but not high-endvehicles, financial planners or beer,”says Ingrid Otero-Smart, president ofthe McLean, Va.-based Association ofHispanic Advertising Agencies. Phar-maceutical and financial services com-panies in particular have been slow torecognize the appeal of bilingual, accul-turated consumers, says Levitan.

What don’t these companies knowabout this market? For one thing, His-panic buying power is on the rise. The

Selig Center for Economic Growth, aresearch group at the University ofGeorgia in Athens, estimates the buyingpower of Hispanics at $581 billion in2002. That’s up 161 percent from 1990,compared with total U.S. buying power,which rose only 74 percent over thesame period. In addition, Hispanicradio listeners are particularly receptiveto packaged goods, automotive prod-ucts, health-care services and insuranceand real estate promotions, accordingto Levitan. During the next 12 months,the mostly Hispanic households thattune in to Spanish radio stations are 64percent more likely than the average lis-

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B lanca Franco, a 19-year-oldMexican living in Los Angeles,listens to the radio at least 10hours a day. Whether she’s just

waking up, cleaning house or workingat the local Los Tacos restaurant, she’stuned in—but almost always to broad-casts in Spanish. “It reminds me of myhome country,” she explains.

Franco is one of 12 million peoplewho avidly listen to Spanish-languageradio. These stations cater to Hispanics

by playing regional music and by offer-ing in-language programming thatincludes news from their home coun-tries. Spanish-language radio, alsoreferred to as Hispanic radio, is so pop-ular, in fact, that the format shows upamong the Top 5 ranked stations in allleading Hispanic metro markets,according to Arbitron. “If you want toconnect with Hispanic consumers, youdo it in the language and the mediathey prefer,” says Aida Levitan, CEO of

Publicis Sanchez & Levitan, a Miami-based marketing agency that targets theHispanic community.

Indeed, Hispanic radio is growingin popularity. Although Spanish-lan-guage-format radio stations account foronly 5.6 percent of all commercial sta-tions in the U.S., their ranks areincreasing at a far faster clip than thegeneral market. In 2001, there were 603such stations in the U.S., up 82 percentfrom 1992, compared with all commer-

26 AMERICAN DEMOGRAPHICS / OCTOBER 2002 WWW.DEMOGRAPHICS.COM

LOOK WHO’S TUNED INLong overlooked, Hispanic radio enables marketers to connect with the fastest-growing ethnic group in America. BY SANDRA YIN

THE DEMOGRAPHICS OF MEDIA CONSUMPTIONmediachannels

Some companies don’tadvertise on Hispanicradio, believing these

consumers can’t affordtheir luxury products.

A BOOMING MARKETSpanish-language-formatradio stations are growingat a far faster clip than thegeneral market.

WE HEAR YOU About 3 in 4 people (76 percent) who listento Hispanic radio are 44 or younger, while40 percent have two or more kids at home.

PROFILE OF THOSE WHO LISTEN TO HISPANIC RADIO:

PERCENTAGE INDEX*18-24 18% 15125-34 32% 16735-44 26% 12045-54 13% 6955-64 6% 4965+ 5% 32

Men 49% 102Women 51% 99

Married 54% 97Never married 32% 132Widowed/sep/div 14% 70

Less than HS grad 26% 254HS grad 32% 102Some college 29% 80College grad or more 13% 59

Employed FT 61% 112White-collar 40% 85Blue-collar 37% 170Professional/mgrl 16% 72

Spanish/Hispanic 86% 708

HOUSEHOLD INCOME<$25k 23% 150$25,000-$49,999 47% 124$50,000-$74,999 14% 69$75k+ 17% 62

KIDS IN HOUSEHOLD0 36% 621 23% 1352 or more 40% 166

*An index of 100 is the national average. For example, Spanish-speaking or Hispanic people are 608 percent more likely than the average American to listen to Hispanic radio.

Source: Scarborough Research

FUTURE ACQUISITIONSHispanic buying power is estimated at $581billion today, up 161 percent from 1990.

WITHIN A YEAR, THE HOUSEHOLD PLANS TO BUY: INDEX*Video camera 184Primary house or condo, new construction 164Satellite dish 147Computer 138Wireless/cell phone for self 132Home security system 130Primary house or condo, existing construction 128

*An index of 100 is the national average. For example, inthe next 12 months, households that listen to Hispanicradio are 64 percent more likely than average to buy anewly constructed primary house or condo.

Source: Scarborough Research

sion, a Spanish-language media compa-ny based in Santa Monica, Calif., radiopersonality Gabino Ayala, for example,takes listeners to his Radio Tricolor pro-gram back home to Mexico as he remi-nisces about life there, interspersingstories with regional music. Mexico’spresident, Vicente Fox, delivers a weeklymessage on Radio Unica, a 24-hournational news/talk network based inMiami. Many radio stations offer helpwith immigration issues, and no prob-lem is off limits. When a man thoughthis wife was possessed by the devil, hecalled Renan Almendarez Coello, “ElCucuy de la Mañana” (the bogeyman ofthe morning), whose show draws closeto one million listeners a day, for help. Apriest later performed an on-air exor-cism from KSCA-FM in Los Angeles.

Hispanic radio is especially suitedto promote local events. When theBritish drug manufacturer Glaxo-SmithKline (GSK) wanted to raise dia-betes awareness, it turned to Hispanicradio to reach a population that’s aboutthree times more likely than average tobe diabetic, says Bernadette King,GSK’s product communications direc-tor. The company aired radio spotspromoting ethnic festivals where ithosted health screenings, targetingMexicans in Chicago and Houston, andPuerto Ricans in New York City. “It wasa good way to reach Hispanics in a localmarket,” says King.

Hispanic radio is also a strongmedium for product introductions inlocal markets. That’s why Zespri Gold,a cooperative of kiwi growers in NewZealand, chose Spanish-language radioas a way to introduce Hispanics andretailers to the product, says KarenBrux, Zespri’s business developmentmanager.

This past summer, the exporterplaced four radio ads on two majorSpanish-format stations in Chicago aspart of a multimedia test-market cam-paign. Although the results of the pro-motion were not available at press time,Brux says that the initial response was“overwhelmingly positive.” In late July,at a Hispanic festival in Chicago, radiopersonalities from one of that city’slargest Spanish stations stopped by thekiwi booth and liked the fruit so much,

they started an impromptu eating con-test, which the station covered on air.Zespri handed out 20,000 kiwi samplesthat day. And by the end of the firstmonth of the marketing drive, morethan 40 independent Hispanic retailershad signed up to sell the fruit.

Häagen-Dazs proved the potentialof test-marketing five years ago when itlaunched the caramel-flavored Dulcede Leche ice cream in markets withlarge Hispanic populations. As part of the campaign, the company sentsamples around to on-air personalities,who talked up the new flavor. Theeffort was a success, according to MollyDell’Omo, spokeswoman for Nestlé IceCream Company, which manufacturesand markets Häagen-Dazs for the retailmarket. “In terms of sales volume, in 20percent of the U.S. market, the Dulce deLeche performed as well as some fla-vors with nationwide distribution,” shesays. “That was an indication that wehad a great flavor on our hands, withpotential for crossover success in themainstream market.”

When Century 21 Real Estate

Corp., based in Parsippany, N.J., want-ed to reach more Latinos, it sponsoreda program and ran ads on the RadioUnica network for 13 Sundays this year.As of press time, the programs averagedmore than 1,000 consumer calls pershow, says John Greenleaf, Century 21’ssenior vice president of marketing.

Companies that want to expandbeyond their current markets couldconsider Hispanic radio a way in. Forexample, firms with successful prod-ucts in Latin America could expandtheir markets by identifying similarconsumers in the U.S. and capitalizingon consumers’ experiences in theirhome countries.

Mexico, for instance, is one of theFanta brand’s largest markets, so itmakes sense to target Mexicans in theU.S. After pulling Fanta fruit-flavoredsoft drinks from the U.S. market in thelate 1980s, Coca-Cola reintroduced thebeverages in March 2001. The companyis now using Hispanic radio in the U.S.in regions that are home to large His-panic populations as part of a cam-paign to reach an audience that isalready familiar with the brand and itsfruit flavors, says Holly Chambers,Coca-Cola’s manager of public rela-tions. If a sub-ethnic group has a histo-ry with the product, the company oper-ates at an advantage.

“If companies would listen to theirmarkets, they could make greater in-roads much quicker,” says Pantanini. �

WWW.DEMOGRAPHICS.COM OCTOBER 2002 / AMERICAN DEMOGRAPHICS 29

tener to plan on buying a primary resi-dence or new condo, reports Scarbor-ough Research, a New York City-basedconsumer market research firm. His-panics also tend to buy more in cate-gories such as entertainment and com-munications purchases. Hispanic radiolisteners have a propensity for buyinghigh-end electronics, including TVsand sound systems and componentsthat cost $500 or more. They are alsomore likely than average to spend

between $250 and $499 a year on CDs,cassette tapes and other music.

“You’re missing the boat if youdon’t target the Hispanic market,” saysAnna Figueroa, national sales managerfor WCMQ-FM in Miami.

The appeal of this market is not loston everyone, however. Such nationalbrands as Kohl’s, a chain of discountdepartment stores, and realtor Century21 have recently begun to tap Hispaniclisteners’ ears and wallets. Meanwhile,Procter & Gamble, Gerber, Sears andWestern Union have been doing so forat least a decade.

These companies have identified theHispanic market as fast growing basedon demographic trends. Not surprising-ly, 9 in 10 Spanish-language radio lis-teners (86 percent) are of Hispanic ori-gin, according to Scarborough Research.Yet immigrants aren’t the only ones whotune in. Even partially acculturated His-panic adults are more likely to listen toradio in Spanish than in English,according to Strategy Research Corpo-ration, a market research companybased in Miami.

Only 12 percent of Hispanics listenexclusively to English broadcasts versus32 percent who listen only to Spanishbroadcasts. A 2002 survey commis-sioned by New California Media, anassociation of ethnic media organiza-tions based in San Francisco, revealsthat Hispanics in California prefer eth-nic media to their English-language orgeneral market counterparts. Of the500 Hispanic Americans surveyed, 63percent said they were more likely to

buy a product or service advertised in aLatino-oriented publication or on sucha program.

Because they’re in acquisitionmode, starting families and establishinghouseholds, Hispanics who listen toSpanish-language radio may be apotential market for categories not typ-ically associated with young adults,such as baby and children’s clothingand food categories such as fruit juice.The Hispanic radio audience tends tobe younger than average, and to live inhouseholds with children. About 50percent are between the ages of 18 and34, while 76 percent are between 18 and44, according to Scarborough Research.Slightly more than half (54 percent) are married, and 61 percent work full-time. About 76 percent live in house-holds of three or more people; 40 per-cent live in households with two ormore kids. “Advertisers don’t under-stand the power of Hispanic radio withthis population,” says Felipe Korzenny,principal of Cheskin, a RedwoodShores, Calif.-based market researchand consulting firm.

In Latin America, there are some4,000 radio stations, making radio oneof the most community-oriented medi-ums on the continent. People turn toradio not just to be entertained, butalso to get advice, to find jobs and toplace missing person notices. Here inthe U.S., Hispanic radio personalitiesare revered, because they offer listenersa way to connect to their homeland oradapt to their new one.

On stations operated by Entravi-

28 AMERICAN DEMOGRAPHICS / OCTOBER 2002 WWW.DEMOGRAPHICS.COM

mediachannels

WHO’S LISTENING? Hispanic adults in most of the Top 10 Hispanic radio markets listen to radio in Spanish at leasthalf of the time.

AVERAGE NUMBER OF HOURS OF DAILY RADIO LISTENING BY HISPANICS:

LANGUAGE PERCENT OF HOURS TOP 10 HISPANIC MARKETS ENGLISH SPANISH TOTAL ENGLISH SPANISHLos Angeles, CA 1.46 2.17 3.63 40% 60%New York, NY 1.94 2.20 4.13 47% 53%Miami, FL 1.25 1.85 3.11 40% 60%Chicago, IL 1.38 1.77 3.15 44% 56%Houston, TX 1.71 1.73 3.44 50% 50%San Fran/San Jose, CA 1.56 1.42 2.98 52% 48%Dallas/Ft. Worth, TX 1.23 2.39 3.62 34% 66%San Antonio, TX 1.78 2.20 3.98 45% 55%Phoenix, AZ 1.73 2.06 3.79 46% 54%McAllen/Brownsville, TX 1.13 1.83 2.96 38% 62%

Source: Strategy Research Corporation, 2002

BIG SPENDERSHispanics radio listeners are 30 percentmore likely than average to spend $500to $999 on a TV in one year.

PRODUCT INDEX*

Wireless/cell phone, $250-$499 209

Stereo equipment, $500-$999 147Cosmetics, perfumesor skin care items, $500-$999 143

VCR, $100-$249 133

Children’s clothing under $100 132

Stereo equipment, $250-$499 131

Television, $500-$999 130

Television, $100-$249 129

CDs/cassette tapes/other music, $250-$499 129

Infants’clothing, $100-$499 128

Wireless/cell phone, $100-$249 128

Plan to buy used car in 12 months 128

Television, $1,000 or more 127

Infants’ clothing under $100 123

*An index of 100 is the national average. For example,Hispanic radio listeners are 109 percent more likely thanthe average American to spend between $250 and $499 ona cell phone.

Source: Scarborough Research

Hispanics who listento Spanish radio arein acquisition mode,starting families and

establishing households.