AHAA: The Voice of Hispanic Marketing released a new comprehensive study at the ANA Multicultural Marketing & Diversity Conference which reveals a positive connection between corporate ad allocation targeting the Hispanic market and overall revenue growth for the Financial Services and Insurance sectors. According to the new study, a 5 point shift in advertising allocation from English to Hispanic media results in a Total Market revenue boost of 6.4 points in Revenue CAGR for the Financial and Insurance sectors.
“This new information is compelling because the data indicates that the Hispanic market can be a big determinant in corporate success,” said Carlos Santiago, chair of AHAA Research Committee and CEO of Santiago Solutions Group. “Financial Services and Insurance companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors – investing in Hispanic marketing is a clear strategy in achieving both these objectives.”
Financial/Insurance companies shifted almost $100 million in four years to Hispanic Media, at twice the rate of English media increases. Shifts in Hispanic Dedicated Allocation alone explain about 22 percent of the category’s change in top line revenue growth. The Financial/Insurance category spends a total of $352 million against Hispanic media. On average, it allocates 5.5 percent, or $10.1 million, of its advertising budget to Hispanic – this is a 35 percent increase since 2010. State Farm leads the charge in both investment percentage against Hispanic dedicated efforts at 22 percent and total Hispanic ad spending at $109 million. Wells Fargo, Nationwide, Allstate, JPMorgan Chase, American Family, AFLAC and MasterCard are close behind, setting the pace of the sector.
“AHAA’s research proves that companies applying a Total Market approach with well-funded in-culture Hispanic efforts are more likely to achieve greater overall growth than those marketers integrating Hispanics into their current English efforts,” said AHAA Chair Linda Lane Gonzalez, president of viva partnership. “The most successful campaigns lead with consumer insights that are then integrated, segmented and aligned – that is the winning combination driving superior growth performance.”