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Hispanic Advertising Rises 11 Percent,
to $3.09 Billion in 2004

Advertisers spent an estimated $3.09 billion in 2004 to market their products and services to U.S. Hispanics, an 11 percent increase from last year. Robust increases in Hispanic advertising are predicted to continue into the near future, according to U.S. Hispanic Media Markets Report, 2000-2007, a HispanTelligence(R) research report.

Hispanic market advertising expenditures will increase to more than $3.6 billion by 2007, according to estimates by HispanTelligence(R), based on its exclusive analysis of industry data.

"Overall ad spending increased by more than 45 percent since 2000 while spending in the top 10 DMAs increased by only 26 percent, suggesting that advertisers are targeting smaller markets such as Atlanta and Denver in an attempt to increase their advertising reach," explained Dr. Juan Solana, HispanTelligence(R) Chief Economist and a co-author of the report.

Double-digit increases in advertising expenditures were made in all media, but television continued to garner the majority of ad dollars. Television ad spending accounted for more than 64 percent of all expenditures in 2004. In addition, nearly all media examined are predicted to continue double-digit growth through at least 2007. Spanish-language radio is expected to lead the way, with ad expenditure growth of more than 21 percent.

HispanTelligence(R) estimates U.S. Hispanic advertising expenditures over the past five years have remained level at about 2.3 percent of total U.S. advertising expenditures, while steady gains have been made both in Hispanic purchasing power, from 7.3 percent to 8.5 percent, and Hispanic population, from 12.6 percent to 13.5 percent.

The media markets report also analyzes Hispanic disposable income by language preference. While the split between English-dominant and Spanish-dominant Hispanic households is almost even at 48.5 and 51.1 percent, respectively, the distribution of disposable income is not. English-dominant Hispanic households control nearly 60 percent of all Hispanic disposable income. Despite this, HispanTelligence(R) found that Hispanic advertising agencies spend more than 88 percent of total billings on Spanish-language advertisements.

"To maximize return on investment, advertisers must understand which segment of the U.S. Hispanic market they need to target and adjust advertising campaigns accordingly," advised Dr. Solana and report co-author Tabin Cosio.

The HispanTelligence's U.S. Hispanic Media Markets Report, 2000-2007 also provides:

-- The Hispanic Media Market
-- Advertising Expenditures by Medium
-- The Top Hispanic DMAs
-- The Top Advertisers in the Hispanic Market
-- U.S. Hispanic Purchasing Power by Language Preference
-- The English-language Hispanic Market
-- Data Tables

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