HISPANIC CONTENT, DATA & SOCIAL MEDIA REPORT: BALANCING THE BUDGET

"Everything we do is based on data," says U.S. Hispanic market advertising industry veteran Liz Castells-Heard, CEO and Chief Strategy Officer of INFUSION.

For Castells, data can generate higher sales and ROI for her clients, thanks to more precise audience targeting based on demographics, language and behavioral preferences. This, she notes, can be used to develop customized campaigns leveraging multiple platforms in both Spanish and English.

"Refining our targeting by using better data through the customer journey is key to personalizing the experience and growing brand affinity," she says. "Beyond media, it is really about how improved data allows us to leverage segmentation to find the right marketing strategy and opportunity gaps, and fine-tune messaging to the diverse targets in the complex and circuitous customer journey."

Consumer response to specific media matters and improved data allows Castells and her team at INFUSION to track changes, adjust tactics, and optimize communications. That said, Castells believes the only factor that truly matters to grow marketing and media budgets are business results. And, she's convinced the only way to achieve that is through consistent, persistent and relevant 360-degree campaigns that include everything throughout the full purchase journey — from digital and mass media to direct, retail and social channels.

"For us, digital-first 360-degree integrated campaigns with strong social and mobile targeting components are the highest performers," Castells says. "Our clients live by metrics and when you can show results, budgets grow." Also critical is the bilingual customer experience.

"We had such an increase in requests to help adapt everything from customer service scripts, legal letters and e-mails to the website, customer .NET and buyflows that we recently created a Multicultural Transcreation and Consumer Experience Department explicitly to handle this," Castells says. "We recently helped [client]

Charter Communications launch their Spanish-language website to enhance Spanish-preferred subscriber access and their consumer experience and put them in control of their account. This empowered the consumer segment, for the first time, to pay bills, learn about products with video tutorials, add and manage services, and watch TV from anywhere, among other positives.

While that's a plus, Castells laments that "adequate" industry Hispanic budget allocation remains a challenge. As such, she seeks an end to "Fortune 500 Corporate lip service of their commitment to diversity."

THE 'INVALUABLE' DOLLAR DRIVER

Castells also believes that Programmatic has proven to be "an invaluable tool" for the U.S. Hispanic market. She also sees it as "a vital part of a holistic plan that also includes working directly with platforms and using third-party data analysis to have more control of our placements."

She comments, "In today's digital landscape, whether for display, audio, video, native or out-of-home/display, Programmatic has improved the way brands connect with Hispanic audiences. Obviously, consumers respond at higher rates the more personalized and relevant ads are — i.e., the right platform, time and message. The key is understanding Hispanic digital preferences as well as the Hispanic programmatic ecosystem. Header bidding in particular offers publishers increased control, transparency and revenue opportunities. In turn, that yields better targeting for us."

Programmatic has also helped broaden the Spanish-language and cultural English content options. "Programmatic may only represent roughly 10% of the mix for established networks, but propelled smaller digital content providers to be in the game — and getting on the radar of agency media buying teams," Castells says. :This has allowed new content to flourish, which is good for both the industry and consumers."

Like everything, however, Programmatic has its pitfalls."Narrow targeting can lead to smaller, potentially inaccurate audience segments and identification —so one person may see an ad 10 times in the same show while the other ad will not at all appear," Castells says. "Some platforms lack mechanisms to prevent repetitive placements and other issues, which diminishes campaign effectiveness and squanders budgets. Thus, the human touch? experienced media professionals — to oversee buys remains critical."

BUDGET TALK GOES BEYOND DIGITAL

As we have been discussing, across the Hispanic Content, Data and Social Media Report, digital delivery of audio and video content is bigger than ever. But, how has this translated to a bigger total ad dollar allotment for the U.S. Hispanic market?

For Castells, any conversation about budgets shouldn't be limited to the division between Digital/Connected TV and Traditional Media. "To us, that's just effective allocation, optimization and MMM (Marketing/Media Mix modeling), which varies depending on the age, customer lifecycle, and many other factors," she says. "What we've seen is that there is some trade-off, but mostly it has resulted in net incremental money for us. All major Hispanic media companies and networks offer digital and social solutions, and digital-focused entities grow, too."

Castells turns to the Digo Network as an example of new digital growth in the U.S. Hispanic market.

HISPANIC CONTENT, DATA & SOCIAL MEDIA REPORT

"Some platforms lack mechanisms to prevent repetitive placements and other issues, which diminishes campaign effectiveness and squanders budgets. Thus, the human touch — experienced media professionals — to oversee buys remains critical." For Castells and her colleagues, INFUSION is in "constant test and learn mode." QA-code led ads are now in vogue. Getting into the metaverse is not an oddity. Considering social commerce, PadSquad's voice-activated units, cross-device in-home targeting or Al-based workflows is also a part of the discussions with clients.

Yet, when it comes to growing the total Hispanic ad dollar allotment, Castells says the conversation is more about recognizing, calculating and monetizing the true scale and potential of the Hispanic market with the right data, metrics, analysis, knowledge and expertise. "We believe the endemic problem lies in a lack of long-range planning and diversity within, and a range of misassumptions, bias and factors promulgated by old school thinking at the VP, CMO and CEO level who stay in their comfort zone with a narrow operational and marketing mindset," Castells laments. "They evaluate everything from their own lens, don't believe the numbers and don't get personalization."

That is why Castells is insistent that, for Hispanic marketing/media (traditional + digital) to get its fair share of the dollars, "the key is for the total budget to be commensurate with the sales that target brings and the potential upside if done correctly."

MEETING THE DEMAND

Looking at the digital media landscape for U.S. Hispanics seeking unique content for them, Castells recognizes that demand persists for relevant content they can identify with. "Everyone says it — content is the differentiator," she notes. "Thus, there is definitely more room for growth whether from Hispanic-owned, mainstream or start-up entities." From Sling Latino, Fubo Latino, CANELA, Pluto TV Latino, and add-ons like Pantaya or VIX, plus Dish Latino TV Everywhere, DirecTV Stream, and of course, Spectrum Mi Plan Latino and Latino View, choices abound. J Netflix has the "Con todo" platform, and Amazon Prime, YouTube+ and Disney produce Spanish-language content specific to the U.S., Mexico or Latin America. Netflix has been active in Mexico for at least five years, with programs such as "Control Z" now in its fourth season.

"Like everything, it is all about understanding consumer preferences, and the top genres where there's room for growth or unfulfilled opportunity gaps," Castells says. "This aligns with the genres that Hispanics feel most represented but differs somewhat from Linear TV." It also varies from Mobile streaming, where top apps include Canela, Univision, Telemundo, YouTube kids and the top categories Books/Reference, Action/Adventure, Family/Kids Games, Beauty, Education & Music. Then, there are leading music apps such as LaMüsica, Shazam, Soundcloud, YouTube Music, Tuneln and Spotify.

Castells concludes, "From our perspective, there is room for growth in more Englishlanguage cultural content, modern Spanishlanguage series, reality shows with interactive engagement, unscripted programming, Hispanic adaptations of top Hispanic English genres, documentaries, and so much more."

"It takes work, and truly caring, to understand how the population has grown and shifted and how they are effecting a brand or good in a particular zone. It takes a lot of work."

While Castells says digital is a "no-brainer" for on-the-go Hispanics, some of whom represent the highest streamers and social media users, an omnichannel approach that includes radio and television remains essential. Case in point: the Los Angeles Latino, where very strong broadcast TV, radio and out-of-home metrics stand out. Then, there is the language factor. According to Castells, 63% of all Hispanic viewing goes to English-language television, despite the fact that the top-ranked networks are in Spanish.

As such, dollar delineation requires a care-driven understanding of where each Hispanic consumer is. "Funds for a digital campaign targeting bicultural Latinos on social media platforms such Instagram, Facebook, Snapchat, TikTok and Twitch is not mutually exclusive to prime-time linear TV or Connected TV premium video, nor does it equate to simultaneously buying traditional radio, securing DJ endorsements, committing to digital audio and podcasts, optimizing virtual and physical store visitation, or ensuring inclusion of higher and lower funnel tactics," Castells says.

That's why her team at INFUSION prioritizes channel and daypart mix to minimize duplication, and layer with sponsorships, integrations and experiences tied to social media around specific passion points.