There are many choices for marketers when it comes to radio stations targeting Hispanic audiences, in particular those who consume Spanish-language audio programming. But, investing in Hispanic-owned and targeted radio has considerable value.
That’s the message Spanish Broadcasting System (SBS) is sharing in a “premium content investment report,” another way the Miami-based company founded by Raúl Alarcón Jr. and overseen on a day-to-day basis by President/COO Albert Rodriguez seeks to distinguish itself from the likes of TelevisaUnivision, Entravision, Audacy Corp., Beasley Media Group, Cox Media Group and iHeartMedia.
The report is billed as “a marketer’s guide to investing in premium, diverse-owned and targeted audio content.”
Its release, concurrent with SBS’s third quarter 2022 earnings report, was also timely as one of the key messages shared at the recent ANA Multicultural Marketing and Diversity Conference in Hollywood, Fla., was that marketers should begin to invest in diverse-owned media. Among those leading the call: Marc Pritchard, the acclaimed head of marketing at Procter & Gamble Co.
The 18-page report produced in partnership with Nielsen, viewable here, offers various insights into why investing in media companies such as SBS brings considerable value to their brand growth.
“Brands that consistently advertised on Hispanic-owned and on Hispanic-targeted radio stations between 2017-2021 showed an average return on advertising spend (ROAS) that was 12% higher than brands that did not invest,” SBS touts.
Latino collective buying power rose by nearly 90% between 2010 and 2020, and is currently estimated at almost $2 trillion. More importantly, it is projected to rise to $2.6 trillion in just the next few years. “With this growing influence, Latinos have higher expectations of brands who want to engage with the Latino community, including intentional investment in Latino-owned media companies,” SBS says.
According to Nielsen, Hispanics are not only more likely to seek out culturally relevant content, but they are 24% more likely to seek out diverse-owned media outlets.
As stated in the report, “Despite the advantages of investing in media publishers that sit at the intersection of diverse ownership and diverse-targeted content, Nielsen’s Ad Intel data over a five-year period reveals that advertising investments are NOT keeping up with the significant growth of the Latino community. Of the billions spent on local radio on a yearly basis, less than 10% is going to Hispanic-targeted stations, even though Hispanics now make up 20% of our population, have $2 trillion in spending power, and use radio more than any other group.”
Rodriguez commented, “Investing in minority-owned companies is only part of the equation. Amplified ROI comes from authentic connections with the Latino audience—via media publishers who sit at the intersection of Hispanic ownership, culturally-relevant Hispanic content and scale. SBS sits at that very intersection.”
Nielsen veteran Stacie de Armas, who serves as SVP of Diverse Insights and Initiatives, added, “Latinos value authenticity more than ever. Brands that advertise in content that connects with Latino culture and on platforms owned by Latinos are seeing greater success.”
