Todays is the start of the muslim celebration Eid al-adha so we here at Joinville just wanted to wish all people celebrating this holiday a Happy Eid al-adha!
Monthly Archives: November 2009
From next week (30th November) the industry will be able to track the numbers of people from ethnically diverse communities cast by agencies and advertisers as artists in TV commercials.As a result of conversations between the IPA and Clearcast, agencies will have the option of stating whether the actors within their advertisements are from Black, Asian or Minority Ethnic (BAME) groups when they put forward their submissions to Clearcast. This will be through the addition of two tick boxes on the Clearcast submission form; ‘Ethnic (BAME) featured artist?’ and ‘Ethnic (BAME) walk-on artist?’ that agencies will be able to fill in as appropriate.
This development forms part of the IPA’s wider diversity initiative and once the information has been submitted, it will be collated by the IPA to form an annual benchmark survey.
Says Hamish Pringle, IPA Director General: “We’re most grateful to Chris Mundy for his positive reaction to our proposal. Through this simple addition to the Clearcast form we will be able to track our progress on one of the three key commitments we made in 2003, namely to increase the portrayal of people from ethnic diversities in ads to be representative of their importance as consumers, and citizens.”
Says Chris Mundy, MD, Clearcast: ”Whilst Clearcast’s specific role is to advise on and clear commercials against the TV Advertising Standards Code, we see ourselves as having a wider responsibility to our industry and the viewing public, so we’re delighted to make this contribution to the cause. We see this data having an impact not only in terms of improved portrayal, but also in encouraging increased diversity of employment and more effective marketing to the BAME sector.”
Says Saad Saraf, member of the IPA’s Ethnic Diversity Forum and CEO of MediaReach: “The BAME markets are already very large and continue to increase in importance, so we welcome Clearcast’s contribution. I believe strongly that a commercial will appeal more to a BAME target audience if it reflects it, and casting the right people is an essential component in effective communication. This isn’t as easy as it might seem, given the complexity and fast-changing nature of the cultural mix in the UK – after all over 300 languages are spoken in London alone.”
This information is being collected by the IPA for research purposes only.
• In 2003 the IPA launched an online guide to ethnic diversity in the UK as part of a self-declared ethnic diversity week for the ad industry. See: http://www.ipa.co.uk/Content/Diversity
• The guide was the culmination of a two-year project by the IPA Ethnic Diversity Group, then co-chaired by Ray Barrett (Creative Director of Barrett Cernis) and Jonathan Mildenhall (Managing Director of TBWA) and looked at the portrayal and employment of ethnic minorities in advertising.
The project communicated three significant findings:
• That advertisers need to wake up to the opportunities of the ‘brown pound’ (an economic view).
• BT got it right in portraying ethnic minorities in ads (a portrayal view).
• The ad industry must sell itself harder to attract more ethnic minority employees (an employment view).
The report also highlighted:
• 7.9% of the UK population is of ethnic minority origin, in London this rises to 31%.
• The combined disposable wealth of this group is estimated at some £32billion.
• Only 4% of IPA agency employees are of ethnic origin.
• Of this 4%, 70% are in support disciplines such as IT and finance.
Figures from the 2008 census showed that of the 140 agencies submitting a full census return, 95 provided information in respect of the ethnic diversity of their employees. Figures from these agencies indicate that those from a non-white background account for 8.4% of the employed base. This is an increase on 2007 figures, where 5.9% of people employed in 67 agencies were from a non-white background. The 2009 census will be available from January 2010.
The BME agency representation figures are improving, however work still needs to be done. The IPA is working on a collaborative project to update the 2003 guide which will be re-launched on completion.
The main IPA contact, responsible for the administration of the Ethnic Diversity Forum affairs is Adah Parris, IPA Account Manager – firstname.lastname@example.org.
Sometimes multicultural marketing can be tricky for a company due to the cultural and religious aspects (but hey, has religion ever been easy, people?) Best Buy stands by its decision to wish U.S. Muslims a Happy Eid Al-Adha, a rep for the company said, and though some Best Buy customers took offense, a Muslim advocacy group praised the move.
The retailer got some flak this week for including, along with its circular advertising Thanksgiving Day sales, a note saying “Happy Eid Al-Adha,” which refers to a holiday of sacrifice for followers of Islam on Nov. 27 this year. After TechCrunch ran an item about the circular, some claimed offense and said they’d take their business elsewhere. “I spent about $3,000 with . . . your store. I will be shopping somewhere else,” one consumer wrote on Best Buy’s Web forum. “BB has the Muslims covered with the ‘Happy Eid,’ but what about the rest of us Americans?” wrote another. “Do we get a ‘Happy Thanksgiving’?”
(The American Family Association, a Christian advocacy group, has singled out Best Buy for using “Happy Holidays” instead of “Merry Christmas.” A Best Buy rep, however, didn’t agree with the claim, saying: “You will see more of Christmas in our holiday messaging. Christmas will be included in our insert and online. We have ‘Merry Christmas’ on our gift cards, too. In addition. we have developed the Christmas Morning simulator as an online interactive game.”)
Best Buy rep Lisa Svac Hawks explained the thought behind the greeting: “Best Buy’s customers and employees around the world represent a variety of faiths and denominations. We respect that diversity and choose to greet our customers and employees in ways that reflect their traditions,” she said.
Ahmed Rehab, a spokesman for the Council on American-Islamic Relations, said he could not recall when any American retailer mentioned the holiday in its ads. “It makes perfect business sense to acknowledge and celebrate a holiday that one out of four people celebrate,” Rehab said.
Best Buy’s not the only retailer to be criticized for its holiday advertising this year. The AFA is calling for a boycott of Gap because the company has downplayed the word “Christmas” with a campaign that states: “Go Christmas, Go Hanukkah, Go Kwanzaa, Go Solstice,” and beckons consumers to “86 the rules.”
If at one time the emigration of Spaniards to Latin American countries was commonplace, the reverse process during the last decade has made Spain into “one of the world’s chief recipients of foreigners,” according to sociologist Miguel Requena.
Ecuador, Colombia, Peru and Argentina are the countries that have contributed most to boosting the number of immigrants in Spain’s population, from 3 percent to 13 percent between 1998-2008, Requena, professor of sociology at Spain’s National University for Online Education, said in an interview with Efe.
These “enormous volumes,” to which must be added those coming from Romania, Morocco and Britain, were slowed by the current recession, which halted the creation of the kind of low-skilled jobs typically filled by migrants, he said.
“It’s always difficult to make predictions, but what we can surmise is that the immigrant situation in Spain during these last 10 years will be very hard to repeat,” according to the co-editor of the book “Las Multiples Caras de la Inmigración en España” (The Many Faces of Immigration in Spain) published by Alianza Editorial in 2009.
The improving economic situation in several of these countries, as well as Spain’s visa requirement for their citizens, have been contributing factors to the declining number of arrivals of these South Americans, which to a certain extent will continue through the process of family reunification, he said.
Romanians, Moroccans, Ecuadorians, Britons, Colombians, Argentines, Peruvians and Bolivians are, in that order, the most numerous communities by country in Spain, which together make up half of the immigrants and are analyzed by 11 specialists in different chapters of the book.
For Requena, Ecuador had a massive emigration to Spain after the 1999 economic crisis, which began to stabilize beginning in 2005.
“Ecuador has had a very strong process of expelling its own citizens both towards the United States and to Spain, but the economic situation there has changed substantially in the sense that there is no longer so much pressure to emigrate,” he said.
Natives of Bolivia, Colombia, Ecuador and Peru have generally shared a profile of immigrant workers who have gone to Spain seeking a better quality of life.
The Argentines, whose country has exchanged migrants with Spain for 150 years, are different from other Latin American groups in that they have a higher educational level and greater variety.
As for gender, Ecuadorian and Colombian immigrants have proportionally more women, those from Argentina, Peru and Bolivia are more evenly balanced by sex, while Moroccans, Romanians and Britons are mainly males.
In general, Requena said, “migrants generally move through networks and so they go primarily to places where there are already others of their own nationality.”
SUMMARY: The U.S. added nearly 1.2 million persons of Hispanic origin to the population between 2007 and 2008, raising the Hispanic population from 15.1% to 15.4%. And new Hispanic immigrants are expected to continue to come in large numbers for the foreseeable future. Since a large share of the Hispanic population in the U.S. will continue to be new immigrants and their second generation children, the acculturation process may not happen has quickly or as thoroughly as with past immigrant groups. Marketers need to be acutely aware of both language and acculturation matters when crafting marketing strategies.
Marketers looking to tap into high-growth population segments should turn their attention to the U.S. Hispanic segment, which grew at a rate 3.4 times higher than the total population between 2007 and 2008 and nearly ten times higher than the non-Hispanic white population. Over half of all U.S. population growth during this time came from Hispanics, raising Hispanics to 15.4% of total U.S. population—a year-over-year growth rate of more than 2.6%.
Read more at NielsenWire Blog
If one way to outfox the economy is to stimulate growth, increasing the attention paid to multicultural or ethnic consumers is a smart strategy, according to speakers at the opening general session of the 99th annual conference of the Association of National Advertisers.
Neil Golden, senior vice president and chief marketing officer at the McDonald’s U.S.A. division of McDonald’s, devoted his presentation to what he called “leading with ethnic insights” – in other words, initiatives in multicultural markets can generate significant gains in sales and market share.
“The multicultural, ethnic segments are leading lifestyle trends,” Mr. Golden said.
Mr. Golden offered examples of how McDonald’s U.S.A. sells new products like the Angus Third Pounder and coffee drinks with campaigns tailored to groups like African-Americans, Hispanics and Asian-Americans.
For instance, a TV commercial for the Angus burgers shows a Hispanic man riding a bus enjoying his meal so much that he does not notice he has reached the end of the line and is sitting in an empty bus.
If McDonald’s U.S.A. conducts nine focus groups, Mr. Golden said, two will be composed of Hispanics and be conducted in Spanish, two will be for African-Americans, two will be for Asian-Americans and three will be composed of a cross-section of consumers.
Andy England, chief marketing officer at MillerCoors, the joint venture of the brewers SAB Miller and Molson Coors, said that advertisers not reaching out to young Hispanic consumers “are not going to win in the market,” whatever the category. Among the commercials he presented was one in Spanish for Coors Light.
Yahoo has launched a Spanish language version of its mobile homepage. The company cites Census data that reflect a population of 46 million Hispanic people in the US. Yahoo also cited comScore data that show tremendous mobile internet growth among Hispanics, which is “outpacing that of all other groups, with 88% of Hispanics consuming content on their mobile phones.”
Here’s the new Spanish language mobile homepage, which mirrors the look and feel of the English-language version.
Source: Search Engine Land
Good news for advertisers – Google will be testing a new feature of AdWords called Product Listing Ads. Product Listing Ads works with an advertiser’s Google Merchant Center account to serve highly targeted ads that include richer product information directly in the ad itself – including product image, price, and merchant name. Starting today, U.S. users searching on Google.com may begin to see Product Listing Ads more frequently on their shopping related queries.
Product Listing Ads is part of an effort to simplify the advertising process for merchants with large product inventories. Some of the key features of Product Listing Ads include:
- Pay only for results: Product Listing Ads are charged on a cost-per-action (CPA) basis, which means that you only pay when a user clicks on your ad and completes a purchase on your site. Because Product Listing Ads is charged on a CPA basis, it offers a risk-free way for you to reach a larger audience on Google.com.
- List your entire inventory: Product Listing Ads requires no keywords or additional ad text. Whenever a user enters a search query relevant to an item in your Google Merchant Center account, Google will automatically show the most relevant products along with the associated image, price and product name. Product Listing Ads makes it easy for you to promote your entire product inventory on Google.com.
At this time, Product Listing Ads is still a beta feature and is only available to a limited number of retail advertisers. Over time, Google will increase the number of users who see Product Listing Ads as well as the number of advertisers able to participate.
Source: Inside AdWords
Continental Airlines plans to begin selling ad space on its website. The airline company signed a deal with Winstar Interactive Media to sell advertising on Continental.com. The two entities hope the airline’s reach – 10 million unique monthly users – will be appealing to marketers. The move is an extension of other media platforms – such as in-flight magazines and in-flight video – which Continental offers to advertisers during the trip itself, the companies say [pdf].
According to the U.S. Travel Association, at least 76 percent of all U.S. travelers are using the internet to make travel plans. Frequent travelers are even more likely to make their travel plans online. “This is an ideal opportunity for advertisers to put their marketing message directly in front of a valuable and highly targeted audience,” says Winstar Interactive CEO Adam Guild.
Airline passengers are a “captive group of upscale consumers,” according to the Airline Advertising Bureau (the advertising sales agent for United Airlines). In addition to being frequent business travelers, this audience skews toward levels of upper management that make and influence important business decisions every day.
Interesting move. If Continental can keep the ads relevant to the passenger this could be seen as added value after booking your flight. As an hispanic advertiser it’s an interesting space to try as Continental’s Spanish-speaking site is rather complete and with their hub being in Houston they should have a rather strong Hispanic customer base.
Source: Media Buyer Planner
While most people with an interest in Hispanic markets know that more than 60 percent of the United States Latino population is comprised of people of Mexican origin, few are aware of the breakdown by country of origin of the remainder. The remaining third come from Puerto Rico, Cuba, El Salvador, Dominican Republic, Guatemala, Colombia, Honduras, Ecuador, and Peru.
Gathering information on ethnicity and country of origin can be challenging and accurate results require additional time and effort for demographic researchers. For example, the concept of ethnicity and country of origin is in itself complex. Individuals self-describe their ethnicity and country of origin relationship when responding to U.S. Census surveys. However, country of origin may differ from country of birth and both may differ from ethnicity. In other words, two individuals from the same family and born in the same country may respond differently to the same question. One may indicate he or she is Latino and the other may not.
Some people born in Los Angeles identify their country of origin as Mexico; some New York natives may also self describe their country of origin as the Dominican Republic or Puerto Rico although the island is part of the United States.
At the same time, the percentage of United States citizens among Latinos varies by country of origin. For example, almost all Puerto Ricans (99.4 percent) are citizens. The groups with the next highest percent of citizens are Cuba, Mexico, Dominican Republic, and Colombia all with more than 60 percent United States citizenship rates, according to updates released by the Pew Hispanic Center on Latino population groups and their characteristics last month.
Source: Hispanic MPR
On the Twitter blog, co-founder Biz Stone announced that thanks to volunteering Spanish-speaking people helping them to translate the micro-blogging site into Spanish.
To change language, just click on the drop-down tab on your bottom left.
It’s no secret that younger consumers respond to mobile marketing much more than older consumers, but I came across an interesting case study that dove into the realm of socioeconomic and race-based demographics in regards to how they respond to mobile marketing.
Continental Airlines recently ran a marketing campaign aimed at the Hispanic-American demographic in which consumers could enter by texting a keyword to a short code or by clicking on a WAP link within an SMS alert from Univision and other various publishers. The contest let consumers enter to win a trip for two anywhere in the world — up to $2,500 worth of plane tickets — by submitting a video.
The airline ran ads on TV, on-line banners, search engine ads, out-of-home, radio and mobile — both SMS and WAP. After it was all said and done, the company found that their interactive ads (mobile and on-line) were more effective than their off-line ads by a long shot (not surprising) but, most interestingly, the mobile ads were five-to-ten times more effective than on-line advertising.
A ten-times better response for mobile over other forms of marketing isn’t that surprising, but mobile getting a ten-times better response over Online ads for the same campaign is pretty impressive- and speaks volumes as to what the best way to reach the Hispanic demographic is.
The case study taught Continental Airlines a thing or two about not only what mobile can do when used properly in a multi-media campaign, but also how to bolster response from certain demographics.
Some interesting facts on internet usage globally from Search Engine Land on the topic of which language should you use for web communication:
Digital technology has shrunk the world—time and space no longer inhibit real-time communication like they once did. A business in Uptown Chicago can communicate just as easily with the UK as they can with downtown. A simple laptop and broadband internet connection can reduce oceans to streams, making online marketing one of the most powerful sales channels available to 21st century business.
But the unity of the market in the global village breaks down when it comes to language: there is no universal language.
English may have emerged as the de facto language of international business and, subsequently, the web, but any organization that is looking to make serious inroads into foreign markets shouldn’t allow the fact that many foreigners speak English obscure the following facts:
- Asia accounts for over 40% of the world’s internet users
- China has 30% more internet users than the US
- 75% of the world’s population speaks no English at all
- Internet users are four times more likely to buy from a website in their native language
- People search the internet in their native tongue
Online marketing and SEO go hand in hand. With international markets, localization is an obligatory addition, given the cacophony of cultural and linguistic complexities that come into play.
Take French for example. In France, dîner is “evening meal,” but in French-speaking Belgium and Switzerland it means “lunch”. Similarly, déjeuner is “lunch” in France, but “breakfast” in Belgium and Switzerland.
There are clear differences between standard German and Swiss German too. For example, the Swiss don’t use the “ß” (Eszett) symbol, choosing to use “ss” instead. And Switzerland sometimes uses a different grammatical gender to that in Germany (e.g. “das E-Mail” instead of “die E-Mail”). There are many such examples from within Europe alone that help to highlight the importance of following a strict localization strategy.
When launching a foreign language website, it goes without saying that you should always use a professionally qualified translator who is a native speaker not only of the language in question, but the precise country variant too. Now we can talk search.
Research from eConsultancy has shown that more than half of European marketers planned to increase their SEO activity this year. When converting this activity onto the international arena, however, there are a few issues to be wary off.
As a general rule of thumb, translating keywords is a bad idea. Even if a search term is correctly translated, it may not be what people use to search for a product or service locally.
The term “car insurance,” for example, ranks highly on Google. A correct translation of this into French is “l’assurance automobile.” However, by checking the keyword tool on Google France, it’s clear that most consumers search with “assurance auto” or “assurance voiture” instead. You can avert a major SEO travesty by carrying out just a little research.
With some languages, English keywords can be imported directly. In German, English words are often used with regards to technical and web-based terminology. Terms such as “web design,” “web designer” and “design web,” for example, rank very highly on Google Germany’s keyword tool, meaning a business that ranks highly for those terms in the US or the UK would be fine to import them straight into their German language website. But the business would need to have this checked by a native German speaker first.
Language, SEO and the web
If any persuasion is needed as to the wisdom of adopting a proper multilingual marketing strategy, consider this: English may be the dominant language of the web in terms of content, but over fifty percent of all Google searches are in languages other than English. This figure is likely to rise as online populations grow far quicker in foreign language-speaking emerging markets such as China and Russia, than in the west.
This creates a great opportunity for international marketers. Because online competition for key search terms in foreign languages is much less fierce than in English, many businesses find that they can attain lucrative high positions on country-specific search engines, with much less effort than in English.
If this tells you anything, it tells you this: a multilingual marketing and localization strategy should underpin any international campaign, with SEO playing a pivotal role.
It pays to address the linguistic and cultural complexities that come with targeting foreign markets and you must speak to customers in their own language. By using inappropriate style, terminology and grammar, key messages are often lost and overall confidence in a brand diminishes.
Marshall McLuhan was ahead of the game in realizing the changes that mass media would bring to the world’s consciousness. But language is one of the last remaining barriers in creating the global village he envisaged.
At a marketing presentation recently, I had the pleasure of meeting Benjamin Taghavi-Awal, the founder of mobile comic strip provider Mobikk, who revealed that the Indian market is a huge potential for them as comic books are hugely popular in India (as is the case in Africa as well).
Looking at this with multicultural marketing glasses, indian groups are large and widespread across the globe (especially prominent in the US and UK with each country having aprx 2.5 million people of Indian descent) and considering that this groups is affluent and highly educated makes them an attractive target group.
InMobi just released a survey showing that 57% of Indian youth is using their cell phone for mobile internet browsing and close to one-third of respondents who surf the Internet through their mobile phones engage with brands that advertise. Another mobile operator is Rebtel which apparently have considerate Indian traffic through their net as well. In 2008 they teamed up with Monsoon Media to create an Indian comic strip as advertising material for a multicultural offline and online ad campaign targeted at Indian Americans.
With mobile browsing usage starting to pick up speed, you might need to come up with innovative advertising such as these to attract your next mobile customer.
With Procter & Gamble being one of the largest US Hispanic advertisers, they need to deepening their offering and content online for Spanish-speakers.
The first episode of Spanish-language online branded entertainment show “De Moda” focuses on celebrities who wear amazingly inexpensive clothes on the red carpet. That was the most popular topic last year on “The Thread,” which like “De Moda” is produced for Procter & Gamble Co. by Starcom MediaVest Group units and Yahoo.
Marketers and their agencies can spend months deciding whether a successful English-language property will work as well in the U.S. Hispanic market, and if so, what besides language should change to appeal to a Latino audience. That’s especially true in areas such as branded entertainment, where good Spanish-language content is still scarce.
In October Procter & Gamble debuted “De Moda,” a U.S. Hispanic version of “The Thread,” both designed to showcase about half a dozen P&G brands over 26 episodes for “De Moda” and more for “The Thread,” which started a year earlier.
For the Spanish-language version, the first step was to be sure the premise — celebrity fashion — resonated with Hispanic women, said Marcy Greenberger, media director at Tapestry, one of Starcom Mediavest Group’s multicultural units. Tapestry handles Hispanic buying and strategy, working with MediaVest and its branded-entertainment unit Connectivetissue, which handles production for both shows.
“Then we realized we didn’t want to just translate it,” Ms. Greenberger said. That’s not just for cultural relevance, but also because Hispanics consume English-language media, too, and some viewers may be watching both versions of the program.
Right now about 50% to 75% of the content is the same on both shows, Ms. Greenberger said, but the idea is to use fewer Hollywood stars and more Latin American celebrities and telenovela actresses. For instance, the latest episode, about stylish Latina women of comedy, features Sofia Vergara, who appears in ABC’s “Modern Family,” America Ferrera from “Ugly Betty,” and a novela star.
“One thing people struggle with is they feel they have to do something completely different with Hispanic,” Ms. Greenberger said.
“De Moda” hired its own Spanish-speaking host, local newscaster Carleth Keys, and a Spanish-speaking producer. But they will share with “The Thread” stars like Sofia Vergara, who can be interviewed in both Spanish and English (some Hispanic celebrities may be pictured on “De Moda” without an interview; a clue that their Spanish isn’t fluent). Piggybacking on production of “The Thread,” “De Moda” cuts costs by sharing a set overlooking Times Square in Manhattan, and some of the same footage.
P&G’s presence ranges from a simple sponsor’s credit to full product integration every four episodes or so. In one upcoming video, “De Moda’s” host and a model will go to a New York salon for a hair makeover involving Herbal Essences.
Both shows promote some of the same P&G brands, such as Herbal Essences, but “The Thread” brand portfolio has included Crest White Stripes, which aren’t promoted in the Hispanic market, and “De Moda” works with Dawn with Olay Beauty dishwashing liquid, which may be highlighted with an upcoming episode on celebrity hands.
New “De Moda” episodes will appear about every two weeks, and there are blog posts in between, drawing about 200,000 visitors in the first half of October. The top search terms in Spanish from Yahoo are also posted, giving the “De Moda” team insight into viewers’ current interests.
“De Moda” is promoted across Yahoo en Español, including streaming banners that let viewers watch the videos from different parts of the site, said Adam Chandler, Yahoo’s executive director for U.S. sales for partnerships and emerging markets.
Elsewhere on Yahoo, State Farm and OMD have added a Spanish-language version called “Mamas Famosas” to the “Goddess” blog about celebrity moms on Yahoo’s popular OMG! site. It’s a more limited program, with a Spanish-language introduction followed by Spanish subtitles over the English-language content.
“That’s how the advertiser wanted to partner with us,” Mr. Chandler said. “The next direction is the way we’re headed with “De Moda.’”
Muslims in Europe have long struggled to find halal food products, which abide by Islamic law. But now businesses are realizing there’s a lot of money to be made catering to the growing Muslim population.
Halal Market Growth
It is just after working hours, and customers are slowly rolling into the Uemit Turkish supermarket in Bonn. The shelves are packed full with Turkish delicacies, and colorful fruit stands stretch across the front entrance. A handful of shoppers have made their way to the halal meat counter at the back of the store.
Rabia Kasik, a young store clerk, says their customers like to shop there because it is one of the few places in Bonn where Muslims can buy halal food, including chicken patties, beef burgers – even gummi bears.
“People can find halal food here, and in a few other specialty markets - but not in many other places. It is difficult for Muslims in Germany, because everything is mixed with pork,” Kasik says.
Halal is an Arabic term that means “lawful”, and it refers to a way of life that adheres to Islamic law. Any food or drink can be halal if it meets Muslim standards. For example, meat products cannot contain pork, and food producers must clean their machines with alcohol-free detergents.
Halal business booming
Experts say that halal food is the fastest growing food sectors in the world. It already accounts for 17 percent of the global food market, according to the World Halal Forum.
In 2010, halal food is expected to generate sales of more than 45 billion euros in Europe alone. With the Muslim population in the EU growing due to immigration and higher birth rates, businesses are starting to realize the untapped potential of the halal food market.
In France and Britain, which have the EU’s largest Muslim populations, this trend has been gaining momentum for some time. British supermarket chains, Sainsbury’s and Tesco sell halal products, as does the French chain Casino. Even the American fast-food joint Kentucky Fried Chicken serves food that abides by Islamic standards at many of its European restaurants.
Mustafa Balikci is the head of Anatolia Foods, a company that specializes in halal products. Its headquarters is located in the small German town of Rheinbreitbach, where he grew up, but the company is now represented in nine countries.
“The idea was to establish a market for halal products in Europe, because it’s very difficult for Muslims in Europe to find halal products” Balikci says. “Even if a product’s label says it’s halal, Muslims have to be very careful because it may not be accurate. It’s sometimes hard to know if something is really halal or not.”
Germany still lagging in halal business
Mustafa Balikci says Germany has been slow to stock its store shelves with halal products compared to other European countries, due in part to the controversial process by which meat is certified “halal”. Muslims broadly agree that the animal must be alive and devoid of any drugs when it is slaughtered – something that goes against German law, which requires abattoirs to use sedatives. As a result, most halal food producers in Germany have to import their meat.
Despite the legal barriers, however, Hatice Balikci – who’s also part of the family halal food business – says she is not worried. In fact, she believes that Germany’s four million Muslims mean an expansion of the halal food market is inevitable. “I think the business will go on and it’s a big trend,” she says. “We saw how many people came to the halal stands at the Anuga Food Trade Fair to get information about it.”"They were not all Muslims - there were people from all over the world, from Pakistanis to Chinese people. So I think it’s a big market place.”
Hispanic Americans continue to grow in number at a rate four times that of the general population, with the 2010 Census expected to show their total rising to nearly 50 million, from 38 million in 2000. And second-generation Hispanics are fast becoming the driver of the group’s growth, with 88 percent of Hispanic children born in America, versus 61 percent of adults.
As a result, agencies that market to this segment are finding themselves in a strong position, armed with the skills and techniques to take on general assignments from big-name clients. Meanwhile, in a tight business environment, general agencies are starting to compete for work previously reserved for specialist shops.
Is an already competitive agency landscape set to become even more so?
“In the 2010 Census, we’ll see confirmation of a shift from Hispanic consumers who are first generation, where Spanish is the dominant language, to second-generation, bilingual, bicultural consumers. It totally transforms how we market,” says Cynthia McFarlane, chair of Publicis Groupe’s Conill, a Latino agency. “These are consumers who are as influenced by American culture as the country of origin of their families. There is a new American culture forming, and these consumers are having a tremendous impact on mainstream America.”
McDonald’s, which sees higher brand loyalty among its Hispanic consumers, has added offerings like breakfast burritos to its national menu. In further evidence of the growing bilingual voice of Hispanic consumers, McDonald’s runs ads with Spanish taglines in general-market media, and earlier this year used “Spanglish” in general-market advertising for the Quarter Pounder.
“We know the general market has become increasingly multicultural, with Hispanic music, Hispanic tastes, the Hispanic palate influencing a lot of general-market initiatives,” says Cristina Vilella, director of marketing at McDonald’s USA. “We lead with Hispanic insights but make sure they appeal to the general market.”
That blurring of distinctions within the Hispanic marketplace hints at the changes ahead for agencies and media firms. Hispanics now have about $863 billion in discretionary annual income, more than any other minority group in the country. (As of the third quarter, Americans overall had disposable income of $10.8 trillion.) Agencies argue that spending power is still underestimated and that upcoming Census findings — expected to be released beginning in early 2011 — will deliver a wake-up call to marketers.
“It will be a huge eye-opener when we see the growing affluence of the Hispanic marketplace, not just in buying power but also in household wealth,” says Conill’s McFarlane.
“We have 15 percent of the market but only 5 percent of the marketing dollars,” says Ingrid Otero-Smart, CEO of Interpublic Group’s Casanova Pendrill. “You’re going to see more general-market agencies pursue Hispanic accounts. They didn’t care when our budgets were $10 million or less, but now that we are dealing with more robust budgets and theirs are being cut, it’s a different story.”
Already, Hispanic agencies are extending their reach beyond Spanish-language media. Casanova Pendrill’s recent California Lottery TV spots were used in the general market, while San Antonio-based independent Creative Civilization is lead agency for the San Antonio Express News and the San Antonio Spurs. Last year, Omnicom Group’s Alma DDB, which also handles urban and general assignments for McDonald’s, launched Clorox’s environmentally friendly Green Works line into the general market. In 2006, Toyota liked a Conill TV concept for the Camry so well, it turned it into a Super Bowl spot.
“There are certain categories, geographies, brands where the Hispanic market is now the general market and the Hispanic marketing strategy will be the overriding strategy,” says Alex Lopez Negrete, CCO at independent Lopez Negrete Communications in Houston. “The Census will confirm the cultural pervasiveness of Hispanics. When general-market assignments start going to Hispanic agencies, it will manifest itself regionally first and then move to categories.”
And Hispanic agencies have to catch up to their ever savvier consumers: Earlier this year, Forrester Research said Hispanic Gen Y consumers 18-28 are “outpacing” their non-Hispanic peers in the amount of mobile activity and use of features in which they engage. Those young Hispanics are also more interested in technology; Forrester found 72 percent of them said it is important, compared to 44 percent of non-Hispanics.
Mark Gibson, vp of advertising at State Farm, says the insurer’s Hispanic marketing is an area of innovation.
“We’re doing things in the Hispanic market that are driving things to other targets, platforms,” he says. “Our Hispanic efforts are becoming a best-practices center at the company.”
Given those new approaches to the marketplace and the threat of competition from general-market shops, many traditional Hispanic agencies will need to reinvent themselves to survive. Last year, after spending 29 years at Hispanic agencies, Simon El Hage joined IPG’s Draftfcb in Chicago as group management director of multicultural marketing. “The old ethnic multicultural approach is passé,” he warns. “We have to look at integration not just from a channel but from a segment point of view. The reality is that Hispanic agencies got used to working with less. We fell into our own trap, and the expectations marketers have for us, we set ourselves. We’ve underestimated the sophistication of our consumers.”
And that provides opportunities for upstarts like MDC Partners’ Adrenalina. The agency says it uses digital executions as a starting point and bases its strategies on a behavioral model. “We speak in culture, not language,” says Manuel Wernicky, Adrenalina’s president. “Old-school agencies just focus on Census numbers, which are used to divide the whole into granular pieces. We try to understand the complexity of that consumer and how they are changing, regardless of language, whether they’re male or female, Mexican or Colombian.”
Language does remain an important factor. Some 44 percent of Hispanic consumers say, at home, they speak Spanish only or more often than English; 25 percent say they are equally bilingual; and 31 percent use English only or more often than Spanish, according to research from Synovate and Nielsen. (That last number offers a glimpse of the future Hispanic marketplace: Among second-generation consumers, 93 percent say they are bilingual or English dominant.)
As general-market broadcasters continue to battle audience erosion, Univision, the country’s No. 1 Spanish-language media company, posted a 5 percent gain last season. The company owns the most-watched single American TV station among adults 18-49 regardless of language — KMEX-TV in Los Angeles. Univision also said last season it was consistently within the top five broadcast networks in the U.S., and on many nights it was within the top three.
“We’re seeing a tipping point in Spanish-language media,” says David Lawenda, Univision’s president. “In our recently completed upfront, we saw shares shifting [from the general market] as we brought in new brands. The implications of the 2010 Census are huge. Marketers don’t necessarily know the spending power of the U.S. Hispanic population. Their purchasing power makes them equivalent to the 15th-largest consumer marketplace in the world.”
General broadcast networks posted a 22 percent decline in the last upfront, while Univision posted a 3 percent gain to $1.24 billion. In categories like quick-service restaurants, Univision posted a 25 percent gain, while consumer packaged goods rose 20 percent, Lawenda says.
Unlike general-market shops, many Hispanic agencies still maintain full-service media departments. That business is also under assault. Media agencies at big industry holding companies have created operations dedicated to multicultural planning and buying. The industry is also seeing more media-only agency reviews, which is not typical in the Hispanic sector.
“The competitive landscape will shift as more people compete for the money,” says Danielle Gonzalez, managing director of Starcom MediaVest Group’s Tapestry multicultural unit. “The general market has very good [media] buyers, but they might be lacking in strategic insights. You’ll see traditional Spanish agencies positioning themselves as saying, ‘You might have the [volume benefit of] dollars, but if you don’t have the insights or are smart at buying, then what are you bringing to the process?’”
The stakes in those media plans have clearly changed over the past decade. While the 2010 survey is expected to show that two-thirds of Hispanics in the U.S. continue to live in four states — California, Texas, Florida and New York — there will be surprising new expansion of the population base.
“In the 2010 Census, we’ll see dramatic growth east of the Mississippi in the Southeast corridor. This is going to be a profound game changer,” says Don Browne, president of NBC Universal’s Telemundo Spanish-language broadcast operations.
Luis Miguel Messianu, president and CCO at Alma DDB, concurs: “This Census will change the perception of what a national Hispanic marketing plan will look like. Now, it’s the 15 top markets. The reality is that it has grown beyond that in recent years.”