Archive for May 3, 2010

General market Agencies increased share of Hispanic business

Written by Christopher Stanley on . Posted in Hispanic

Targetting Hispanics

Targetting Hispanics

The results of the 2000 Census have given some strength to the argument of those working with the Hispanic market that the Latino community is a significant part of the U.S. market and that marketers need to actively engage.   With varying success, Hispanic and multicultural-focused advertising shops have continued their work to increase the investment of companies towards the market.

In a recent article in Advertising Age, apparently one of the groups listening to this message is the general market agencies.  One of the cited examples is Home Depot’s change of their $37 million account from the incumbent Hispanic shop The Vidal Partnership to the lesser known Hispanic arm of the Richards Group, Richards/Lema.  This is just the tip of the iceberg, as there are numerous general market agencies putting together multicultural teams to gain a bigger share of the fast growing Hispanic market.

Some other examples include Havas Worldwide hiring a top Hispanic creative director to buid a Hispanic agency to serve Euro RSCG Worldwide and Anold clients, as well as to replace Euro RSCG Latino, which had only limited success.  According to the article, DraftFCB has assembled over 50 multicultural specialists at their Chicago office to work on multicultural business.  Regardless of their abilities, most agencies are interested in pitching the multicultural business rather than just passing on to a focused Hispanic shop.

Obviously with almost any decision one of the key factors is money.  While Hispanic shops in many cases may have the multicultural experience, the larger advertising agency groups combine the economies of scale and infrastructure with the ability to create a team of top talent quickly by havinh the financial resources at their disposal.  It will be up to the clients and their individual case to determine what will work best for them, consolidating their multicultural efforts with the larger shops or if they work with the specialized shops which in many cases can offer a very personalized service and have years of experience working with the market that many are just now becoming interested in.