Think again. Colorado ranks as the eighth largest Hispanic-populated state in the country. The Denver market’s Hispanic buying power is the 12th largest in the nation, with nearly $16 billion per year, overpowering Albuquerque, Fresno/Visalia and even El Paso, Texas, according to Synovate.com.
It’s no wonder the biggest Hispanic media brands look at the Mile High City and recognize a huge opportunity. ESPN Deportes Radio and Lieberman Broadcasting’s Estrella TV are the latest to take action in one of the United States’ most established Hispanic mercados. Both have installed Denver affiliates within the past year.
However, population and buying power can be deceiving, and it’s no secret among Denver’s experienced Hispanic media outlets, that “You can’t judge a Hispanic market by its cover.”
The reality is that although media has opened its doors with the promise of a beckoning top U.S. Hispanic market, regional advertisers simply haven’t walked through them yet. Television spending is an eye-opening barometer. According to industry executives, approximately $14 million is spent annually on Spanish-language TV, a tiny 4% sliver of the $320 million spent on English TV. Per the AHAA 2010 marketing trends report, even the national average of advertiser allocation to Hispanic media is 25% higher than in Denver.
Markets that are comparable in size and buying power simply enjoy much more activity. According to HispanicAd.com’s 2010 Hispanic Market Overview, San Diego, a Hispanic market almost identical in size to Denver, has a lower annual Hispanic household expenditure than Denver. Yet media vendors report nearly 80% more spending in San Diego than in Denver.
Yes, the population and buying power in Denver warrant attention. Yes, the opportunity is ripe, but most Denver advertisers simply haven’t jumped aboard the Hispanic marketing train.
So what’s keeping Denver advertisers from “sipping the horchata?”
Hispanidad has been engaged in this very conversation over the past ten 10 years. With an opportunity so obvious being missed, there is no single answer. There is however, two notable factors that contribute to a below-par Hispanic marketing environment in Denver. It stems from a lack of corporate commitment and leadership buy-in to the Hispanic market potential. Without Hispanic marketing champions on the senior executive teams, businesses will continue to “miss the barco.”
Denver has a healthy Hispanic chamber of commerce. But the Hispanic business leaders in Denver are rarely recognized outside of the Hispanic business community and haven’t ventured far beyond their comfort zone. These executives should be spreading their leadership beyond Hispanic business circles and start growing Denver as a whole.
Hispanidad is among the only qualified Hispanic dedicated agencies in the region. There simply aren't enough of us to change the market's perception. The many professionals currently involved in Hispanic advertising, be it TV, Radio, Print, ad agencies, or students need to educate themselves more, stay up to date on the latest ad trends, learn better marketing techniques, the Hispanic cultures, language, and buying patterns. They need to work harder, innovate, and present better compelling business logic that demonstrates the potential of the market. They also need to graduate to the senior levels of larger area advertisers, work in the general market media or ad agencies, and spread their influence among management levels.
The initiative to advertise in the Hispanic market starts at the top. Until executive levels start to recognize its potential, the Colorado Hispanic market will never reach its potential, top 10 or not.
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