MERCADEO Versión en español
Report from Santiago Solutions Group: Cutting media allocation aimed at Hispanics reduces sales growth
2 de febrero de 2016
Companies that cut down their allocation of advertising buys in media dedicated to Hispanics regardless of language whether Spanish, Bilingual or English, and who also increased their investment in media allocation in English tend to suffer a decrease in their sales growth, according to a report released by the consulting firm Santiago Solutions Group. Conversely, the change of investing in media in English to include Hispanic media leads directly to the growth of Total Market revenue.The cost of making these cutbacks in Hispanic media, according to a study conducted by the AHAA (released in 2015), can mean a Total Market revenue growth rate of -1.8%, if the allocation to Hispanic media is cut back 5 points, especially in the case of consumer packaged goods & retail category; financial and insurance service companies “Companies that allow their brands to slash meager budgets and continuously under-invest in the Hispanic segment are minimizing their growth potential at their own peril” stressed Santiago Solutions Group.There are many causes that can affect revenue growth, such as: product innovation, price, experience, distribution, reputation, among others. But, in spite of this, direct segmentation through allocation in Hispanic media accounted for 18% of the variation in company’s revenue growth. This figure reaches 28% among Consumer Packaged Goods.
