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Univision Media and Consumer Insights Update – May 15th, 2020

By Steve Mandala, President of Advertising Sales & Marketing

As I write this, there is a growing sense that our country is (thankfully) past the pandemic peak, and more of the conversation is turning toward the economy’s reopening. As we shared two weeks ago, U.S. Hispanics are as eager as the general market to resume most activities and are most optimistic for the future.

While businesses examine their reopening actions, trying to ramp-up quickly without sacrificing safety, they face many questions. Today, I’d like to focus on two of them:

  • How to determine budget allocations amidst an environment of cuts?
  • How to manage the regional differences, as parts of the country reopen at various times?

Let’s first discuss the budget allocation challenge. Marketers are asking themselves: Where will my limited resources have the highest impact? We know a key to growth is reactivating demand, and advertising is a proven way to do so. To get some guidance, we turn to a short presentation by Jason Tate from Nielsen Analytics. Using data from Nielsen’s marketing ROI practice, Jason argues that marketers should:

  • Be deliberate. With limited budgets, rationalization of media tactics is a necessity – and he suggests marketers prioritize high reach/high ROI tactics. Using CPG data, he shows TV and digital lead in both reach and return on ad spend (ROAS).

(Editor’s note: Hispanic consumers have been driving purchasing power growth in the U.S. for more than a decade, and they will be a key segment to reactivate demand. You want to reach Hispanics on TV and digital? I know a media company that can help you with that…)

  • Be steady. Continuous marketing (even at low levels) leads to accruing effectiveness and higher ROI. It takes a mere two weeks without activity for media effectiveness to drop. Marketing well, even while on a budget, can help protect annual brand sales.

The second question deals with regional differences. The reopening will be asynchronous, with some states, less affected by the pandemic, opening earlier. And different categories (such as restaurants and retail) will have different rules.

Due to the highly localized nature of the reopening, brands will be looking for partners who will help localize their go-to-market strategies. We want to highlight why Univision is the best possible choice — irrespective of language — for marketers who want to reignite growth in local markets. Click here to access the supporting data.

  • In the top 6 Hispanic markets, Univision’s TV stations are #1 or #2 regardless of language. (For example, our KMEX is #1 in Los Angeles in prime and total day.)
  • We can combine the power of TV with local radio, covering multiple genres. On average, adding radio to a local TV buy generates a 50%+ increase in reach.
  • In digital, we have the capability to geo-target your digital video to precisely reach those areas that are open for business. And our local digital news sites are seeing triple-digit growth numbers since the crisis began.

As you develop your reactivation plans, please remember that we at Univision stand ready to partner with you to help you recover any lost ground and set your brand back on a growth trajectory.

Stay well,

Steve Mandala
President of Advertising Sales and Marketing, Univision

P.S.: On May 12, we unveiled results of a new Nielsen study on the ROAS of Spanish-language TV. (Spoiler: The data show that the ROAS of SLTV is sharply on the rise.) If you missed our live stream (which included an overall Univision business update), you can watch on demand via this link.

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