Focus on Hispanic market may pay offBy Mathieu Carbasse | November 18 2015 09:27AM
According to a study conducted by the Association of Hispanic Advertising Agencies (AHAA), financial services companies and insurers that target the Hispanic market with their publicity campaigns see a higher rate of growth in their sales revenues.
The Voice of Hispanic Marketing study examined the American financial services and insurance industry and found that a company that aims 5% of its marketing budget at Spanish-speaking people will benefit from a 6.4% increase in its revenues.
"This information is convincing, the data reveals that the Hispanic market can be a decisive factor in business success" said Carlos Santiago, president of the AHHA research committee and CEO of Santiago Solutions Group. "Insurance companies and financial services want to win not only some market share among their competitors, they also want to provide growth and stability for their investors, which is why investing in Hispanic marketing is a clear strategy to reach both objectives".
Over the last four years, American financial services firms and insurers have increased the portion of their marketing budgets devoted to Hispanic media by nearly $100 million, which is two times more than that recorded for anglophone markets. In total, the sector spends $352 million in Hispanic media. On average, it allocates 5.5%, or $10.1 million of its advertising budget, on Spanish media. This represents a 35% increase over 2010.
State Farm takes the lead among the businesses in this sector as it devotes 22% of its advertising budget to Spanish media, with total expenses of $109 million. After State Farm, the other companies that invest in advertising to the Hispanic market are Wells Fargo, National, Allstate, JPMorgan Chase, American Family, AFLAC and MasterCard.