US-Hispanic market is one of the fastest growing segments and whose purchase power today represents 8.5% of US total, and will reach 11% by 2010.
Taking into account that the Latin population represents 14% of the adult population of US and that more than half (56%) of this growing segment is online, Internet comes as a natural media where marketing people can find this audience, and there is a higher penetration of the Internet when the social economic status is higher as well as the education level.
Those users, principally the ones that are the second and third generation are bilingual, and surf firstly contents in English (because of works or the news) and secondly in Spanish mainly for entertainment.
Usually the first way that an advertiser has to reach this segment through a network, is by using GEO Target (IP USA) that allows to show a creative only to the users that are in USA combining the origin (IP-USA) with sites with content in Spanish (no matter where the publisher is located), which are commonly Latin America portals because they are the ones who concentrate the highest percentage of content in Spanish.
A second method that adnetworks have to find this segment is through the browser language they use. When the language is Spanish and it is in USA (user IP is from USA) it is assumed that the surfer is US-Hispanic.
The problem with this method is that most of US-Hispanic buy their PC with pre installed software and most of the time is in English. For those that are bilingual this point is not very relevant. Only the ones from the first generation, who prefer the software in Spanish and don’t want to add a language barrier to the complex technology, are going to be the ones contacted through this segmentation.
Unfortunately this market niche (1st generation) within the US-Hispanic is the least attractive one in terms of purchase power.
A more sophisticated segmentation comes from the use of Behavioral Targeting where at the beginning the recurring surfing behavior is detected in sites with Spanish content within the network. Each user interaction is anonymously labelled with a pixel that leaves a cookie with this behavior.
Then from this behavioral base you can show advertising in Spanish on sites with English content only to the target audience.
The effect of Spanish language personalization in an english content context, adds advertising and cultural relevance, giving the campaign an additional ingredient of emotional “engage” through the media that is shown.
For example, a person that usually reads soccer news following the “America Cup” in Spanish sites like the sport newspaper Ole or the Mexican newspaper La jornada.com.mx , advertiser of telephone communications would be able to contact the user in Spanish when he is surfing sites such us MySpace.com or Hi5.com within the spaces assigned to DirectaNetworks.
To sum up the use of Behavioral Targeting to reach US-Hispanic adds value to all players.
- The advertiser obtains new ad space where he is able to reach with a more relevant cultural message and with a higher knowledge of the target and therefore better results.
- The Publisher achieves, through a better knowledge of the audience more conversions with fewer inventories, which implies a real appreciation by the advertiser in terms of conversion and in the case of inventory at dynamic prices such as DCPM, an instant higher income.
- The user reduces irrelevant advertising and gets only cultural relevant advertising that generates and “engage” with his traditions and respect the values of his culture.
- And lastly the network contributes with an additional value to the commercialization.