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Press Release
Tuesday, February 6, 2007
 
Top 100 advertisers in multicultural magazines spent $413.7 million in 2006 to reach African
American and Hispanic consumers.
 
Overview:

The top 100 advertisers in multicultural magazines spent a total of $413.7 million in 2006 to reach African American and Hispanic readers, according to Media Economics Group. 

Overall - among all 2,494 advertisers tracked - marketers spent $693.0 million in 2006 to reach multicultural consumers via African American and Hispanic magazines.  On average, these advertisers spent nearly two-thirds (64.8% or $449.2 million) of their budgets in African American magazines with the balance (35.2% or $243.8 million) spent in Hispanic magazines. 

These estimates are based on an analysis of the nearly 100 multicultural magazines tracked by Media Economics Group's BlackMagazineMonitor and HispanicMagazineMonitor competitive intelligence services.
 

 

Who were the top multicultural advertisers in 2006?:

The top five advertisers in African American and Hispanic magazines in 2006 were: Procter & Gamble ($46.5 million), L'Oreal USA ($24.7 million), General Motors ($24.1 million), Clorox Company ($13.6 million), and Ford Motor Company ($13.6 million).

The bottom five advertisers (among the top 100) in terms of total multicultural magazine spending in 2006 were: Burger King ($1,321,287), Walt Disney ($1,339,986), JC Penney ($1,341,350), BellSouth Corporation ($1,343,881), and Heineken USA, Inc. ($1,362,415).

On average, the advertisers in the top 100 spent 64.7% ($267.6 million) of their budgets in African American magazines with the balance (35.3% or $146.1 million) spent in Hispanic magazines.   However, there was a wide variation in how the largest advertisers allocated spending between African American and Hispanic magazines.

For example, selected advertisers with a greater than average share of spending in African American magazines in 2006 include: Rocawear (98.8% of spending in AA magazines), Pfizer (93.4%), PepsiCo (91.6%), Nike (89.6%), K-Swiss (85.5%), American Express (79.1%), and Kraft Foods (78.3%), for example.

On the other hand, selected advertisers who spent a higher share in Hispanic magazines than in African American magazines in 2006 include: JC Penney (98.9% of spending in Hispanic magazines), Fruit of the Loom (92.0%), Hyundai North America (89.8%), Cingular Wireless (80.0%), Sears, Roebuck & Co. (76.6%), Sara Lee Corp. (72.5%), McDonald's (62.6%), Unilever (57.8%).
 

 

Exclusive Advertisers/Dollars - are some marketers missing opportunities to reach their audience?:

Underscoring perhaps the importance that the largest advertisers place on marketing to all segments of the multicultural market, only a handful (8) of the top 100 advertisers were exclusive to either African American or Hispanic magazines.

Only six of the top 100 advertisers were active only in African American titles:  310 Motoring, Bronner Bros. (also publishers of Upscale magazine), Enyce Clothing Company, Fashion Fair Cosmetics (owned by Johnson Publishing Co.), Namaste Laboratories, and Pro-Line International.  And only two of the top 100 advertisers were active only in Hispanic magazines:  American Sunshine and Visa International.   

Even so, among the nearly 2,500 advertisers that were active in 2006 in both magazine segments, there was a significant share of dollars targeted exclusively to either African American or Hispanic magazines only.  For example, there were 260 advertisers with $100,000 or more in spending in 2006 who only advertised in African American titles - for a total of $77.2 million in exclusive spending in 2006.  On the Hispanic side, there were 134 advertisers in 2006 spending $100,000 or more only in Hispanic magazines for a total of $38.5 million in exclusive spending.

While the largest (top 100) advertisers are talking to both Hispanics and Blacks via magazines, the majority of mid-sized advertisers are focused exclusively on one segment only.  Of the 604 advertisers who spent between $100,000 and $1 million in 2006, two-thirds (394 or 65%) advertised exclusively in either African American or Hispanic magazines - but not both.

According to Carlos Pelay, President of Media Economics Group, "While this strategy may make sense for some advertisers to efficiently reach their targets, it may suggest that many exclusive advertisers (e.g. adidas, Citizen Watch Company, DirecTV, Playtex Products, Reebok, S.C. Johnson, Splenda, Wendy's, etc.) are missing opportunities to reach part of their markets.  Savvy publishers should target those exclusive advertisers to increase market share and generate new spending in their segments."

 

To download a full list of the top 100 advertisers in multicultural magazines in 2006, please visit:
    http://www.media-economics.com/news/Top100list.html

 

 

About Media Economics Group:

Media Economics Group provides multicultural advertising competitive intelligence for advertising agencies, their clients, and publishers.    Clients include leading advertising agencies and media companies active in the multicultural market: Accentmarketing, American Media, Batanga.com, Conill Advertising, Dieste Harmel & Partners, Editorial Televisa, Meredith Corporation, MPG Diversity, OMD Latino, People en Espanol, Reader's Digest (Selecciones), Starmedia, Tapestry Partners, and Vidal Partnership, for example.


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Contact: Carlos Pelay/954-762-6517
carlos@media-economics.com
Media Economics Group