The Hispanic Online Market is Exploding

Totaling more than 45 million individuals, Hispanics are the largest minority in the United States and have reached a critical mass online. As the fastest growing segment of the online population, the Hispanic online market has emerged as one of the most attractive and lucrative customer segments on the Internet. Online Hispanics are young, affluent, and responsive to targeted online experiences that appeal to their language needs and cultural predispositions. The US Hispanic market online represents an attractive opportunity for companies looking to grow market share and increase revenue.

At nearly 20 million individuals in 2008, the US Hispanic online market continues to grow at explosive levels and remains a relatively untapped segment of both the online population as well as the aggregate Hispanic market. The Internet has become central in the lives of millions of Hispanics and has emerged as a viable medium for companies to connect with this lucrative segment of the US population in a cost-effective, quantifiable, and interactive manner.

The Hispanic online market has:

• Achieved critical mass: 20 million in June, 2008¹
• Sustained strong growth: More than 3.5 million new Hispanic users came online between June 2007 and June 2008, representing 21% growth vs. 6% general market growth during the same period
• Been classified as an “upscale, mass market”: Online Hispanics are more affluent, more educated, and more acculturated than the aggregate Hispanic population²

Online Hispanics are:

• In their main household formation years: 56% are between 18 – 34 years old²
• Affluent and have buying potential: 60% earn more than $40,000 and 68% have credit cards²
• Leading the digital revolution: More likely to have websites, blogs and be active on social networks³
• Accessing the Internet for education, empowerment, communication and entertainment: A valuable Hispanic online user experience must deliver on these primary user needs
• Bilingual: Online Hispanics are using the Internet in both English and Spanish, a bilingual, culturally relevant approach is critical in reaching them⁴

¹ ComScore Media Metrix
² 2005 AOL/Roper Hispanic Cyberstudy
³ Florida State University Center for Hispanic Marketing Communication, Dr. Felipe Korzenny
⁴ Forrester Research

Univision/Televisa Deal Raises Online Stakes

 

Univision and Televisa have finally kissed and made up. After years of bickering, last week's reconciliation seems to be a win-win for both parties.

From a financial perspective, Televisa will invest $1.2 billion in Univision for a 5% equity stake and assume a huge chunk of Univision's debt in exchange for an additional 25% equity stake. Perhaps more importantly, however, the deal grants Univision exclusive U.S. rights to Televisa's broadcast and digital assets through 2020.

There is no disputing that Univision dominates the U.S. Spanish-language media industry especially when it comes to television and radio. Univision's television network reaches nearly twice as many household as the No. 2 player, Telemundo. In radio, Univision reaches 73% of the Hispanic market through 73 stations -- compare this to its nearest competitor, Spanish Broadcasting System, which has only 15 radio stations.

Univision is also the No. 1 player in the Spanish-language online market, but competition is much tighter when compared to Spanish-language television and radio. The following data from Quantcast.com show a more competitive Spanish-language online industry:

1. Univision.com 1,500,000*
2. Terra.com 1,100,000
3. Telemundo.com 581,000
4. Amigos.com 533,000
5. EsMas.com 430,000
6. QuePasa.com 350,000
7. MedioTiempo.com 323,000
8. Starmedia.com 263,000
*Monthly U.S. users

Barriers to entry in the online world are significantly lower than those in the television and radio markets, making compelling content that much more important online. And compelling content is exactly what Univision gets through its renewed partnership with Televisa.

Televisa has a wealth of highly attractive digital content

Televisa is the largest multimedia conglomerate in the Spanish-speaking world, and Univision is now Televisa's distribution platform in the U.S. In addition to its hugely popular telenovelas, Televisa also owns three Mexican soccer teams, including the popular Club America; Editorial Televisa, which produces and distributes 178 magazine titles, and Televisa Cine, which produces original feature films, just to name a few.

With access to Televisa's digital content, Univision is well positioned to continue to succeed in the U.S. Hispanic online market. It just has to figure out how to leverage it to attract and engage more users by 2020.

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Lee Vann is founder and CEO of Captura Group Captura Group. For nine years he has led Hispanic interactive initiatives for clients including the U.S. government, Allstate Insurance Co., Century 21, PayPal and Ford Motor Co. Reach him here.