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With more than 75 Spanish-language cable networks available to multichannel subs, Kagan Research, LLC expects those outlets to be the leaders in television ad revenue growth rates over the next decade.
Kagan's ECONOMICS OF HISPANIC TELEVISION IN THE U.S. reports that, compared with total U.S. media spending, Hispanic ad dollars are up significantly -- about 12.1% in 2005 compared with a 6.6% boost for all U.S. advertising markets. 2004 kept a similar pace, with Hispanic media up 12.1% vs. a 5.7% rise for all U.S. media markets.
Kagan forecasts total Hispanic ad spend will achieve a hefty 10.3% compound annual growth rate (CAGR) from 2004-'09, bettering 6.2% growth for all U.S. media. The beneficiaries of the boom include four over-the-air Spanish-language TV broadcasters -- Univision, Telemundo, Telefutura and Azteca.
There still exists a significant gap between Hispanic ad spending and Hispanic population share. "Despite accounting for approximately 14% of the U.S. population, the Hispanic audience has been the 'forgotten demo'," says Deana Myers, senior analyst at Kagan Research. "That has changed as advertisers look to target this group's rapidly growing buying power."
Filling the ad spend gap of this increasingly valuable demographic will be a major focus of Hispanic media over the next ten years. Kagan estimates 3.4% of TV ad dollars in 2005 went to Hispanics, who accounted for 10.2% of TV households; those shares should rise to 4.2% of TV ad spend and 11.1% of TV households by 2009.
ECONOMICS OF HISPANIC TELEVISION IN THE U.S. provides the most comprehensive analysis of population trends, buying power and the Hispanic media market in the U.S., with market projections for broadcast networks and cable networks through 2009.
Detailed profiles of 14 broadcast and cable networks include ownership information, subscriber data, and projections of gross and net ad revenues, programming expenses and cash flow, as well as programming descriptions and contact information for 32 other Hispanic-targeted networks. The report also compares affordability of Hispanic packages from multichannel distributors and dissects advertising revenues in the top ten Hispanic markets.
For table of contents and more information on ECONOMICS OF HISPANIC TELEVISION IN THE U.S. go to www.kagan.com/HITV
About Kagan Research, LLC.
Kagan Research consulting and publishing services offer exclusive financial data and analysis, relevant market advisories and expert 5- to 10-year projections on cable and DBS, broadcast television and radio, movies, entertainment and sports, digital, wireless and Internet technologies and media finance and law.
