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Diego Osuna, Sr Manager, Integrated Marketing Strategy at T-Mobile, will be one of the key speakers at our upcoming Portada Live – in New York City and virtual – on Thursday, September 29 next week. Check out the six steps you need to take into account for successful segment marketing, according to Osuna.

In 2021, T-Mobile spent approximately 2.2 billion U.S. dollars in advertising in the U.S, according to Statista -this figure likely includes non-advertising related marketing expenses-, making the telecommunications giant one of the top advertisers in the U.S. With Hispanics over-indexing in telecommunications services, T-Mobile directs a substantial part of the overall marketing budget to engage the Hispanic consumer.
As a leader in T-Mobile’s postpaid Integrated Marketing Strategy team, Osuna works with channel partners across marketing and beyond, to build a common vision and develop an actionable marketing strategy. His responsibilities include Hispanic, Military, 55+, and emerging segments. Segment Marketing is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. To Osuna Segment Marketing,  “is fundamentally a process of discovery and distillation of deep consumer needs, which the marketer bridges with product or service messages and channel strategy selection. In that sense, it isn’t a dissimilar process to a general marketer.”

Segment Marketing Steps:  1. Develop Specific Marketing Muscles

According to Osuna, to do this process right as a segment marketer  “you need to overdevelop a few specific marketing muscles. First, you become a student of the segment, the company, and the brand. The second muscle is persistence and cross-functional capabilities. Segment markets are ongoing efforts, they aren’t solved by a one-and-done effort, and as such, they require extreme cross-functional alignment in focus and intent, so the effort becomes muscle memory for the organization.”

As a segment marketer, you need to overdevelop a few specific marketing muscles, like studying/researching and persistence.

2. Build Fundamental Insights about the Segment and the Context of the Brand

Diego Osuna, Sr Manager, Integrated Marketing Strategy, T-Mobile
Diego Osuna, Sr Manager, Integrated Marketing Strategy at T-Mobile,

Osuna starts with the premise that he needs to build a foundation of fundamental insights that impact this segment. “Alongside developing a full-view picture of the segment, you want to understand the context of the brand and where it stands in relation to the segment. Finally, I also want to assess the organization’s readiness to market to the segment effectively, considering that marketing is just one lever in go-to-market success,” Osuna notes.

Osuna emphasizes that “the thing is that every time you dig in beyond the surface, like what we face in Hispanic marketing where we can divide the population in a number of ways, these other segments are very complex and diverse. Take for example what we call 55+. Well, 55 plus in the US is about 90 million people encompassing 4 Generations from GenXers, to Boomers to Silents to the Greatest Generation. As much as we want to build a marketing plan that encompasses all the segments, there is a huge difference if you’re 55 vs. 85, if you’re retired or still working, married, or living alone, if credit is high, or if your financial situation is shaky.”

As a segment marketer, you need to overdevelop a few specific marketing muscles, like studying/researching and persistence.

Portada ConferencesJoin us at Portada Live on Sept. 29 where we will delve deeper into Segment Marketing in the session:
THE ONE-MILLION-DOLLAR-QUESTION: Engaging the Evolving Hispanic Consumer
Speakers: Diego Osuna, Sr. Manager Integrated Marketing Strategy, T-Mobile and Guillermo Pérez, Chief Creative Officer and Brand Strategist, Digo.

And the thing is that every time you dig in beyond the surface, like what we face in Hispanic marketing where we can divide the population in a number of ways, these other segments are very complex and diverse.

3. Segment Marketing: Combine Qualitative and Quantitative Research

Osuna is a big fan of combining quantitative and qualitative research to get a feel for the segment. He notes that when he was working at  General Mills, he used to spend a lot of time in ethnographies going into people’s houses to observe empty nester couples having breakfast and talking about how they approach their daily breakfast ritual. “You can internalize so much in a couple of home visits that are difficult to absorb, at least for me, by just reading research decks. More importantly, the qualitative can help you formulate better questions to make the most of your investment in bespoke quant research,” Osuna asserts.

You can internalize so much in a couple of home visits that are difficult to absorb, at least for me, by just reading research decks.

4. Understanding the Brand and the Company’s Go-to-Market Capabilities

According to Osuna, “as fun as the challenge of understanding the segment can be, I think marketers need to be very realistic about the position of the brand and the company’s capabilities in relation to the segment. Your CMO may aspire of going into a new segment and dominating it immediately, but you might be advised to ask for patience in terms of building something that is sustainable over time.” Osuna notes that he once did some work for an insurer that was very interested to grow with Hispanic customers; “I spent a lot of time with their marketing team on the ground building a marketing plan. To their credit they understood that without distribution, that is having Hispanic agents in their sales network, they were going to be limited in making an impact, no matter how much they spent on the marketing side.”

Marketers need to be very realistic about the position of the brand and the company’s capabilities in relation to the segment.

5. Articulate the Capability Gap 

Once you have assessed the position of the brand and the company’s capabilities in relation to the segment, Osuna says that it is important to “articulate the capability gap against yourself and against competitors and empower cross-functional channel partners so they can work on their own capabilities and plans. In other words, you need to work through others.”

“It takes patience, consistency, and a spirit of continuous tweaking and improving to win in Segment Marketing. I like to say segment marketers are the marathoners of the marketing world,” Osuna concludes.

Segment markets are ongoing efforts, they require extreme cross-functional alignment in focus and intent, so the effort becomes muscle memory for the organization .

6. Segment Marketing Activations:  Examples

In terms of the current post-Covid environment and how he is activating against the heterogeneous Hispanic segment, Osuna notes that it needs to be understood that many of our consumers have had a one-two punch of pandemic and inflation.  Osuna adds that “these have been trying times and as such consumers are more interested in products that win on value without trade-offs and brands that offer a straightforward value proposition and treat the customer right.”  One of the things Osuna takes a lot of pride in at T-Mobile is “that its most popular plans pack tremendous value with features like taxes and fees which are already included in your bill and price lock where we guarantee the price of your rate plan will not go up. We also feel very strongly that customers, and specifically Latinos do not want to make trade-offs for the quality of the network. Hispanic wireless customers have blessed us with their preference because at T-Mobile we offer a benefit-packed product offering at an incredible price and with a superior quality experience. In fact, our quality goes beyond the service that connects our phones, our quality is also measured in the experience: the retail experience and the customer experience.” The recently introduced Coverage Beyond campaign is an example of T-Mobile’s offering and marketing in this regard. In addition, the recently announced partnership with TelevisaUnivision. through which T-Mobile customers get a free subscription to VIX+ is an example of an initiative targeting a specific subsegment of the Hispanic population; Spanish-dominant Hispanics. ViX+ includes more than 10,000 hours of classic and original Spanish-language shows, movie premieres, news and live sports.

The initiative through which T-Mobile customers get a free subscription to VIX+ is an example of an initiative targeting a specific subsegment of the Hispanic population; Spanish-dominant Hispanics.

Secondly, Osuna maintains, this is a segment that has a lot of pent-up demand for travel; “You have all heard the stories of the crazy travel season. We have added tremendous value to customers that fly or drive. For flyers, and specifically for our international flyers, we offer seamless plans that accommodate your needs. Most of our plans just work when you arrive, no setup is required. To that extent, T-Mobile’s plans have always been very international and national travel friendly. With our Magenta plan, you get High-Speed data in 11 European countries, with our Magenta Max you get 5GB of High-Speed data in more than 215 countries, including 23 in LATAM. Calling to Mexico has also been included for many years now. If you travel this fall, make sure you check out the free Wi-Fi on select airlines as well as unique travel benefits that include tremendous high-speed data in many countries around the world. For drivers, we now offer a free year of AAA in the US.”

“We are the first-ever conservative radio and TV platform in Spanish. It has not happened in the world before,” Jorge L. Arrizurieta, President of Americano Media, tells Portada. With a potential target market of more than 500 million Spanish speakers, Americano Media is a new multimedia platform for conservative Latinos, producing 18 hours of original programming for an under-represented audience.

The streaming and app content is available across all major platforms including Apple, Android, SiriusXM and Roku, providing information to Hispanic Americans looking to make informed choices ahead of the mid-term election season and beyond. Headquartered in Miami, Americano Media has about 80 team members including international correspondents and hosts in countries including El Salvador, Colombia and Israel.

We view ourselves as a place where there can be a republican coexistence from the center to the right. A place where Bush supporters and Trump supporters get along.
Conservative Media
Jorge L. Arrizurieta, President of Americano Media

The first priority for Americano Media is to engage the U.S. Hispanic market. While there are a wide array of conservative vehicles in English, there is none in Spanish. “There is very little quality conservative content in the U.S. in Spanish-language,” Jorge L. Arrizurieta adds. With the mid-term elections just months away, Hispanic Americans represent nearly 20 percent of the electorate. That number is growing, and with it, the diversity of the demographic’s political leanings. “Now being available on over-the-top video allows us to share real content that echoes our core values. At the end of the day, these are All-American values.” The new service will feature exclusive TV programming hosted by conservative personalities including:

• Lourdes Ubieta, Dania Alexandrino Nelson Rubio – all previously with Radio Mambi, a conservative media Miami talk radio station recently acquired by financier George Soros – and Emmy-award winning journalist Lucia Navarro.

• “Battleground Americano” – A war of values and principles is being waged in the United
States, and “Battleground Americano” is at the frontline, led by show host Jesús Márquez.

• “Buenos Dias Americano” (“Good Morning Americano”) – “Buenos Días Americano”
places the world’s news at your feet before you leave home each morning!

• “Así está el Mundo” (“This is the World”) – When you are wanting to know, “What is
happening?”, Lourdes Ubieta tells “Así está el Mundo,” a mid-day prime program in
which she covers the most important news so far and interviews the key characters of
each day, with emphasis on international politics.

Americano MediaWith the objective of increasing awareness among the U.S. Hispanic population, Americano Media will be releasing an advertising campaign in the next few weeks. soon. “We will be aggressively advertising in key metropolitan areas with a high Hispanic density. The campaign will include digital and also traditional media. Advertising creative will be in Spanish,” says Arrizurieta.

Conservative Media: A Place for Republican Coexistence from the Center to the Right

“We view ourselves as a place where there can be a Republican coexistence from the center to the right. A place where Bush supporters and Trump supporters get along.” Arrizurieta notes. He adds that conservative means something very different today than a few years ago, as the political spectrum has shifted to the right.

Americano Media is a business, not a political organization.

According to Arrizurieta, the Republican world today is very clouded by the Trump viewpoint, although some of the issues Trump espouses are more popular than conservative. “We will keep working hard to invite all spectrums of the Republican world to work together to beat the Democrats,” he asserts.

Advertising and Content Revenues with Fox as a Model

“Americano Media is a business, not a political organization,” Arrizurieta states. “During the election cycle candidates and PACs (Political Action Candidates) are going to be very significant advertisers. There is also room for traditional corporate and consumer goods advertisers,” he adds. Americano Media is currently building an advertising sales team led by Andrew E. Bazner,  Vice President of Sales at Americano Media Group. Another revenue source, Americano Media Jorge L. Arrizurieta president notes, are content sales to other radio and TV, and video properties.

Arrizurieta says that many observers have asked him if Americano Media is a Spanish version of Fox. “We are far from it, but we identify with the Fox model,” he asserts. In his view, Fox’s quality programming and news are a great content mix.

The Miami Cuban community is a very important constituency for Americano Media.  According to Arrizurieta,  Spanish-language newspaper and website el El Nuevo Herald never has embraced the local South Floridian Hispanic community and is very antagonistic to its basic values. Diario las Americas,  Arrizurieta notes, is more representative of conservative media as it is owned by a conservative Venezuelan family. Diario las Americas is a natural ally for Americano Media according to Arrizurieta.

Americano Media is the brainchild of Arrizurieta and Iván García-Hidalgo, CEO/Founder of Americano Media. Both Ivan and Jorge are experts on the Hispanic voter base. They have decades of expertise consulting on Presidential campaigns and working with publicly-traded media companies and have now come together to launch an exciting new platform.

 

GoDigital Media Group (“GoDigital”), the owner of mitú, announced the acquisition of NGL Collective with the backing of MEP Capital, a media and entertainment-focused investment firm. The new entity will retain the name of NGL Collective.

8/4/2022 Update/Correction:
This article previously mentioned that reVolver podcasts is part of the Latido platform (owned by mitu), however reVolverpodcasts is not in anyway included in, or a part of the NGL /mitu transaction. reVolver and Latido parted ways amicably last year, Jack Hobbs, president reVolver podcasts, tells Portada.

mitú acquires NGL

As part of the acquisition, NGL Collective (“NGL”), a leading New Generation Latinx digital-first media and entertainment company co-founded by actor and activist John Leguizamo and industry leader David Chitel, is merging with GoDigital’s mitú.  The new entity will retain the name of NGL Collective. It claims to be the largest 100% Latino-focused digital-first Latinx media company in the country helping advertisers connect with this coveted audience regardless of age or language preference. NGL will cater to a network of Latinx creative and media partners, reaching U.S. Latinx communities via an array of social media and editorial sites, in-person and virtual community events, and published research. Digital media in all its facets, including influencer marketing, social media and CTV, has become the prevalent way to target and engage the GenZ consumer(check out our recent interview with Tecate’s Belen Pamukoff).

This unprecedented business combination solidifies our mission of being the #1 New Generation Latinx digital-first media and entertainment company in the U.S.

“Latinx media consumption is exploding. NGL’s expertise in Latinx media solutions and our shared commitment to culturally relevant creativity makes it a great addition to GoDigital’s portfolio,” said Jason Peterson Chairman and Chief Executive Officer of GoDigital Media Group. “This acquisition cements our foothold in the U.S. Latino media space.”

Mitú, a heavily funded former multi-channel Youtube Network 

Mitú, started as a multi-channel YouTube network targeting the LatinX consumer in 2012.  The company got more than US $50 million in funding by investors including the Chernin Group. In February 2020 mitu  was bought  by Latido Networks, a subsidiary of GoDigital. Latido Networks owns the Latin music-focused YouTube multi-channel network VidaPrimo. “It’s very much a “zipper” concept, meaning they provide much of what our other brands (most specifically Latido) were seeking to build, and we have the infrastructure and media impressions that will help mitú get even more out of its brand reach”, a source at Latido Media told Portada at the time.

mitú Acquires NGL Collective: Consolidation in the Hispanic Digital Media Sector

mitú’s acquistion of NGL Collective is a further step in the consolidation of the Hispanic digital media sector.  The consolidation in the Hispanic digital media sector includes recent transactions like MyCode’s purchase of Impremedia and TelevisaUnivision’s acquisition of Vix, the former Batanga,  in February 2021.
NGL’s premium Latino video, on web, mobile, social, and connected television and the #1 comScore ranking, coupled with mitú’s community of more than 13 million social followers and web visitors, will provide an unmatched video-driven experience for consumers and advertisers. With the combined market presence of mitú brands, comprising wearemitú, somosmitú,  FIERCE, crema, and Things That Matter, and NGL brands, consisting of Latina Moms, Hispanic Kitchen, and Hispanicize, the new NGL community will constitute the largest gathering of Latinx influencers, content creators, entrepreneurs, trendsetters, and media and entertainment innovators in the world. NGL’s in-house Emmy®-nominated production team will also join forces with mitú’s social content and brand studio team, which operates mitú Studios, a 14,000-square-foot studio in Eastside Los Angeles.

Digital media in all its facets, including influencer marketing, social media and CTV, has become the prevalent way to target and engage the GenZ consumer.

“Latinos are the largest ethnic group in the U.S., accounting for 11% of the buying power, and yet their contribution is consistently excluded in media and entertainment,” said John Leguizamo, Co-founder and Partner of NGL Collective. “With NGL Collective and mitú’s shared commitment to amplifying the voices of the Latinx community, our platforms and reach will expand. We will create more opportunities for Latinos in front of and behind the camera to speak directly to our community and influence how America sees us and how we see ourselves.”

“For ten years, mitú has built its legacy through creating communities and ensuring Latino voices are heard. Joining forces with NGL enables mitú to continue to build brands, cultural content and experiences that resonate with and represent the diverse U.S. Latino community,” said Vanessa Vigil, Chief Brand Officer, NGL Collective (former General Manager at mitú) . “It’s exciting to bring these companies together in a shared mission, with complementary solutions, and be part of leading mitú and NGL brands into the next decade.”

NGL will be helmed by current Chief Executive Officer and Founder David Chitel, with the creative support of Partner John Leguizamo. Vanessa Vigil will be elevated from General Manager of mitú to Chief Brand Officer of NGL. Ben Leff, NGL’s Chief Operating Officer, Ben DeJesus, President of NGL Studios, and Joe Bernard, NGL’s Chief Revenue Officer, will remain in the same capacities. Stephen Brooks, President of mitú and Latido Networks, will oversee the integration of the two companies, focusing on strengthening GoDigital’s investments in Latinx media.

“This unprecedented business combination solidifies our mission of being the #1 New Generation Latinx digital-first media and entertainment company in the U.S.,” concluded David Chitel, Chief Executive Officer of NGL Collective. “The power and influence of U.S. Latinos merits a company like NGL exclusively focused on connecting advertisers with our coveted audience in-language, in-culture and in-context. The depth of our newly expanded offering inclusive of mitú makes us far and away the leader in our space.”

 

Televisa Univision’s ViX and and T-Mobile announced an agreement that substantially impacts the Hispanic streaming and video space. T-Mobile and Metro by T-Mobile are giving their new and existing customers a free subscription to ViX+, the premium SVOD tier of ViX, for a full year. ViX+ has more than 10,000 hours of exclusive sports, news and entertainment not available on ViX, the ad-supported streaming service that TelevisaUnivision launched earlier this year.

With 80 percent of Hispanics in the U.S. watching digital video the impact of the T-Mobile and VIX partnership can not be stressed enough.  At a time when inflation is driving up prices on just about everything, ViX+ is a completely free way for T-Mobile and Metro by T-Mobile customers to be entertained whenever and wherever they go. ViX+  will be available in “mid-August” to T-Mobile postpaid and T-Mobile Home Internet customers (including T-Mobile for Business customers) on eligible plans and Metro by T-Mobile (prepaid service), the former MetroPCS, customers with unlimited plans.

Annie Garcia, VP of Branded Channels- Metro by T-Mobile
Annie Garcia, VP, TMobile Branded Sales & Distribution for South and East Region

“We are so proud of our 5G Network and we are very happy to support the community by bringing this programming.  We are the first and only carrier to provide Spanish-only ad-free content made for Latinos by Latinos. We are very proud of this partnership and we are working hard to keep prices where they are and bringing more value,” Annie Garcia, Vice President, TMobile Branded Sales & Distribution for South and East Region tells Portada.

T-Mobile and ViX Partnership: Premium Content

ViX+ is loaded with 10,000 hours of classic and original Spanish-language shows, movie premieres, news and live sports, just in time for the World Cup later this year. ViX+ has programming for everyone in the family. Shows like María Félix, La Doña, La Mujer del Diablo and Mi Vecino El Cartel will be available on July 21 with exclusive film premieres throughout the rest of the month that can only be found on ViX+, including Mirreyes contra Godinez 2:El Retiro’and Enfermo Amor.

We are the first and only carrier to provide Spanish-only ad-free content made for Latinos by Latinos.

Sports also plays an important role in Vix+ content roster. There’s more than 7,000 hours of exclusive LIVE soccer games, so fútbol fanatics can follow all the action on the pitch from any device. In addition to featuring live Liga MX matches, ViX+ is the only Spanish-language streaming service in the U.S. with coverage of the UEFA Champions League, Europa League and Conference League matches. ViX+ will also stream Mexico’s 2022 soccer world cup games.

Vix - T-Mobile Partnership“As the top wireless provider for Spanish-speaking customers in the U.S., we understand what they care about, and today we’re bringing them a whole new way to enjoy the news, TV shows, movies and live sports that matter the most, and completely for free,” said Mike Sievert, president and CEO of T-Mobile. “While AT&T and Verizon are actually raising prices on their longtime customers, we’re doing things the Un-carrier way and giving our customers more without the added cost.”

And with more than 70 original movies and series produced for its first year, there’s no shortage of new shows and movies led by A-list talent. ViX+ exclusives include the Salma Hayek-produced romantic fantasy feature “Quiero tu Vida” (“I Want Your Life”), romantic series “Travesuras de la Niña Mala” (Bad Girl) adapted from the acclaimed 2006 novel written by Mario Vargas Llosa and the youngadult action-horror-comedy series “Pinches Momias” produced with Propagate Fuego. From comedy series and romantic features to docuseries and unscripted shows, ViX+ Originals span genres and formats. If 10,000 hours of live and classic programming still aren’t enough, ViX+ customers also get access to everything on ViX, the first large-scale global streaming service created specifically for the Spanish speaking world, which launched in March. ViX has more than 120 channels, 40,000 hours of video-on-demand and 24/7 news and sports.

T-Mobile’s Hispanic Customer Base

“Hispanics in the U.S. watch more video on their smartphones than anyone else but until ViX and ViX+ came along we had very few options to stream Spanish-language programs, and they were expensive on top of that. ViX+ is the latest in a long line of truly unique benefits from T-Mobile that connect our Spanish-speaking customers to their world, like free international texting and data and Mobile without Borders,” said Jorge Martel, vice president of T-Mobile’s Consumer Group. As of the first quarter of 2022, T-Mobile has more than 109 million subscribers, of which 88 million are postpaid customers. While T-Mobile does not disclose how many subscribers are specifically Hispanic, it can be inferred that the figure lies in the tens of millions. In addition, “Metro by T-Mobile is the largest provider for Hispanics in the prepaid wireless space,” Annie Garcia, Vice President, TMobile Branded Sales & Distribution for South and East Region, tells Portada.
With a total population of 62 million Hispanics in the U.S, it is safe to say that at least a third of the total Hispanic population will have their content streaming options substantially impacted by the just announced Vix-T Mobile partnership.

Metro by T-Mobile is the largest provider for Hispanics in the prepaid wireless space.

With ViX+, customers can create up to five profiles for tailored viewing habits and get recommendations on binge worthy shows that are completely ad-free. Up to three devices can be streaming ViX+ at the same time and customers can download shows to watch later or on the go. And ViX+ works on any device, like smartphones, tablets, laptops, desktops and TVs.

At a recent Portada Live knowledge-sharing event for brand marketers Erin Siegel, Senior Director, Public Relations & Executive Communications Century 21, asked other participants about the role Content Marketing for E-Commerce plays in their strategies. Specifically, Siegel asked what role content marketing plays in the online marketplace space and in D2C and how it is leveraged for brand differentiation.  

These are the answers on the all important topic of Content Marketing for E-Commerce by three expert brand marketers:

Content Marketing for E-Commerce
Salvador Padron Director, Sabritas, Ruffles and Mixes Marketing Pepsico.

“We use content marketing to differentiate us from our competitors. We do cooking recipes and more behind the scenes content. We also provide access to information that is not as public in other channels in order to give something extra to the consumers. As a result, consumers get more engaged and become more involved in the category. It’s not so much transactional but about the experience. Brands that can provide interesting content to consumers have an edge,” noted Salvador Padron Director, Sabritas, Ruffles and Mixes Marketing Pepsico.

It’s not so much transactional but about the experience.
Moises Leiferman, Sr. Manager Omni Channel Perfetti Van Melle.

“Content marketing is very useful for us and we are also including brand health metrics in our content marketing initiatives in order to assess the overall picture. So perhaps a particular media has not been that strong in ROI terms, but did substantially reinforce brand attribute X or Y. Content marketing drives differentiation in order for consumers to be in a better position to convert later on,” mantained Moises Leiferman, Sr. Manager Omni Channel Perfetti Van Melle.

Content marketing drives differentiation in order for consumers to be in a better position to convert later on.
Guillermo Rivera, VP of Marketing Merama.

“We have a channel optimization playbook including SEO which includes the ideal words for title, description, wording to use in certain marketplaces and not in others. A+ content, images, video to complement images and text. Our mission and obsession is to build the perfect SKU, and the best detail page we can have. We complement that with certain traffic testing from social media. We distribute that traffic to D2C or the online marketplace and analyze the differences in consumer behavior,” said Guillermo Rivera, VP of Marketing Merama. (Merama is a start up company valued at more than US $ 1 billion that invests in brands and readies them for the D2C and ecommerce world.)

Our mission and obsession is to build the perfect SKU, and the best detail page we can have.

 

Content for Ecommerce: Check out how Willow Innnovations and Primary Arms do it!   

While Centers of Multicultural Marketing Excellence certainly fulfill their function as specialized units for best practices and research, they are also sometimes mocked by insiders as consulting units that do not have decision-making power. This is not the case of Dish’s Latino Center of Excellence, Alfredo Rodriguez, Vice President, Latino Center of Excellence at DISH Network tells Portada. “DishLATINO is a brand and a product. A P&L focused mindset drives all acquisition, retention, programming & product initiatives.”, he asserts.

Led by Alfredo Rodriguez, the Latino Center of Excellence has 25 employees, including executives Nicole Preston, General Manager, Latino Center of Excellence; Juan Machado, General Manager Marketing in charge of acquisition, Jean Louis Bedout, General Manager, in charge of retention and upsell, as well as Reynaldo Pagani, who is in charge of the Puerto Rican market.

Dish Latino  Center of Excellence: How it came about

Dish LatinoIn 2020 Dish acquired Boost Mobile and Sprint’s prepaid customers from Sprint as Sprint merged with T-Mobile. As a result, DISH became a nationwide U.S. wireless carrier. Dish’s leadership could not help but notice that in addition to Dish Latino and Sling’s Hispanic subscribers, Dish now had a substantial Hispanic customer base in the form of prepaid wireless client. Approximately a third of Boost Mobile customers are Hispanics.  That is when the executives at the helm of Dish decided to create the Latino Center of Excellence.  The main part of the new unit’s team was to be composed by Dish Latino executives, as the direct to broadcast satellite provider already had a an established brand marketing team.

Historically Dish’s Latino Center of Excellence is the outgrowth of the brand marketing unit of Dish Latino, which also serves as a Center of Excellence for Sling and Boost Mobile.

“Because of the very nature of the product which is solely for Hispanics, Dish Latino has a very contained customer base and its own P&L. This affords as the luxury of running it as a business unit,” Alfredo Rodriguez, Vice President, Latino Center of Excellence at DISH Network, tells Portada. “We have our own marketing budgets for branding acquisition and retention. Additionally, we manage the entire budget , from media to production. We design the strategy. We are very keen on insuring that we have a return on marketing investment as we have full accountability for the subscriber base we manage,” Rodriguez adds.

We are very keen on insuring that we have a return on marketing investment as we have full accountability for the subscriber base we manage.

As of December 31, 2021,Dish Networks had 10.707 million pay-TV subscribers in the United States, including 8.221 million DISH TV subscribers and 2.486 million SLING TV subscribers. Rodriguez claims that an important part of the Dish TV subscriber base is Hispanic and that they are the leaders in the Spanish-tier direct-to-broadcast satellige category, (DBS), where they compete with providers including ComCast, Spectrum and DirecTV.

Rodriguez, who leads identifying which consumers are in fact Hispanics. “We analyze the retail footprint and how it corresponds to the density and location of Hispanics.” Marketing budgets for Boost Mobile and Sling are managed by these business units. Rodriguez notes that the wireless segment has a lot of unmet needs and that his team is working on strategy refinements for Boost.

Cross-selling Opportunities

Many of the insights that Rodriguez’s team obtains at Dish Latino can be be used to understand the customer base, particularly the Hispanic customer base of Sling and Boost Mobile. “We see a lot of opportunities to cross-sell and upsell to other brands, including combining data to provide existing and future customers interesting offers. We work very closely with Dish, Boost and Sling to leverage data, segmentation and insights,” Rodriguez maintains. He adds that more than about just using the data it is “about obtaining a real connection with our clients.”

How Dish Latino Determines its Hispanic Target 

The direct-to-broadcast satellite Dish LATINO service, the suite of stand-alone programming packages containing both Spanish & English language channels, targets two segments of the Hispanic population.  The unassimilated segment (18% of the Hispanic population) and the bicultural-Spanish-dominant (30% of the Hispanic population). The unassimilated segment  is foreign born and Spanish-dependent for all aspects of their lives as well as culturally attached to their country of origin.  The bi-cultural Hispanic segment tends to be foreign born and has lived in the U.S for 10+ years. They are comfortable with English and are exploring a new culture through the lens of their cultural heritage.
These two segments are the ideal customer for DishLATINO,  How does Dish-Latino’s marketing team determines which Hispanics belong to the the above segments and not the bilingual and fully acculturated segments? Rodriguez notes the assimilation algorithm takes the following factors into account: Language spoken at home, Language of media consumption, Cultural affinity, Proportion of first 18 years lived in US and preferred language. According to this acculturation algorithm, roughly 30%-40% of the 60 million Hispanics living in the U.S. are either unassimilated or bicultural, Rodriguez says.
Research by Rodriguez and his team has determined that these two segments have many unmet needs. One of them is the need for speaking and perfecting English. The programming  channel “Inglés para Todos” answers to this need as learning English affords more opportunities to Hispanics.  Rodriguez also sees opportunities to cross over to Boost Mobile and Sling with a similar offering.
“We are looking to carve out opportunities on the wireless side and trying to leverage and take advantage of some of the things consumers are telling us are very appealing like for instance Inglés para Todos”, Rodriguez concludes.

 

 

DoorDash  Marketing. DoorDash launched ‘Antojo’, its first-ever custom created Spanish & English multi-platform marketing campaign aimed at authentically connecting with the Latino community

The creative campaign is rooted in the perspective that cravings are a common experience in culture, but “antojos” are a part of the way Latinos live life. And there are all sorts of antojos; about food, a flavor, or a memory about grandma’s cooking. But it does not stop there–there are also antojos for moments, for opportunities, for fulfilling goals. DoorDash’s intention in creating the ‘Antojo’ campaign was to reinforce its focus on growing and empowering the antojos of local Latino communities.

Dicen que cuando se te cae algo es porque a alguien se le antojó.

The creative campaign debuted last Monday April 18 across national TV, digital, and social activations. The creative was inspired by the old superstition “Dicen que cuando se te cae algo es porque a alguien se le antojó” or in English, “They say that when your food falls, it’s because someone craved it.”

“DoorDash’s mission is to empower local economies and the latest iteration of that mission is the Antojo campaign, which demonstrates our commitment to connecting with the Latino community and empowering the communities that we serve,” said Katie Daire, DoorDash’s Senior Director of Consumer Marketing. “We’re excited to unveil this campaign and think it will uniquely engage with the Latino community through highlighting the shared power of antojos in our everyday lives.”

Antojo DoorDash
John Gallegos, Founder and CEO of GALLEGOS United.

“We are proud to partner with DoorDash, a modern brand that at its core is about empowering local communities,” said John Gallegos, Founder and CEO of GALLEGOS United. “Throughout the pitch process, we experienced firsthand how the company lives up to this value and its commitment to the Latino community, always in a highly creative way. We are excited for our new journey together, supporting all the ‘antojos’ of Latinos, starting with food and beyond.”

 

The insight behind this traditional superstition inspired two :30 TV spots under the premise of  “Se te antojó,” which brings viewers through the journey of witnessing the power of antojos in real life and highlights the breadth of items available through DoorDash. To capture the essence of ‘Antojo’, the commercials were shot in Mexico City by acclaimed and award-winning director Andy Fogwill. In addition to TV, the campaign includes digital ads, paid and organic social media, and an in-app experience that features Latin cuisines in customers’ local areas. The breadth of the campaign highlights the brand’s connection and understanding of the antojos of the Latino community.

Throughout the pitch process, we experienced firsthand how the company lives up to this value and its commitment to the Latino community.

The campaign was created in partnership with GALLEGOS United and is the first work produced from this new partnership focused on connecting more authentically with the Latino community. Gallegos United was awarded the DoorDash business and will be responsible for helping DoorDash authentically communicate with Latinos—managing strategy, creative development, production, and marketing communications. Together, DoorDash and Gallegos United will focus on building long-lasting customer relationships and driving brand preference with Latino communities nationwide.

Beyond the creative campaign, DoorDash supports the Hispanic and Latin community by providing restaurateurs grants and training through our Main Street Strong Accelerator. In February, we also announced a partnership with UnidosUS that provides a financial empowerment program, grants to broaden food access, and support for civic engagement programs and immigration education. Our partnership features a signature financial empowerment initiative, Caminos, that provides local and virtual programming to U.S. Dashers who want to develop job skills, build a business, or improve their financial well-being.

The closing of Canela Media’s US$ 32 million Series A funding round is one of the few relatively sizable investments in digital media companies in the last few years, particularly in Hispanic digital media.  Four things you need to know.

 

1. Digital Media Funding: Size and Investors

The size of Canela Media’s funding is relatively large, particularly in the current environment in which digital media funding is slowing. Investors are no longer willing to shell out hundreds of millions of dollars on new digital media sites as they used to do until 2015 (e.g.  BuzzFeed, Vox Media and Vice Media, for the Hispanic and Latin American markets where investors funded Mitu with more than US$ 50 million. )

Canela Media announced the completion of an oversubscribed US $32 million Series A funding round. The investment was co-led by Acrew Capital and Angeles Investors with participation from Link Ventures, TEGNA Ventures and Samsung NEXT.  BMO Harris Bank provided an additional US $10 million of capital. In addition, existing investors BBG Ventures, Mighty Capital, Reinventure Capital, Portfolia’s Rising America Fund, Alumni Ventures and Powerhouse Capital continued its participation, bringing Canela Media’s total funding to date to US $35 million.

Canela Media’s funding will be used to help Canela Media accelerate product development, produce new high-quality original programming for its flagship products Canela.TV and Canela Music, and to enable expansion further into Latin America. Later this year, Canela will roll out the Canela Kids app focused on children’s programming. The company will also be adding 95 new positions in various functions, including engineering, operations and programming.

2. Digital Media Funding Drivers: Hispanic Growth

One of the digital media funding investment rationales for Canela is the expanding target market; the Hispanic and Latin American consumer markets. Richard Wolpert, venture partner at Acrew Capital, one of Canela Media’s investors stated, “We continue to see significant business opportunities and growth coming from the U.S. and Latam Hispanic consumer segment, particularly in streaming media where consumers are looking for viewing options tailored to not only their language, but also their content consumption desires. Canela Media’s approach of “For Latinos, by Latinos” has helped them remain authentic and attract brands seeking to truly connect with multicultural audiences.”

“We continue to see significant business opportunities and growth coming from the U.S. and Latam Hispanic consumer segment, particularly in streaming media. 

Portada estimates  that digital advertising targeting Hispanics will grow to US $ 1.93 billion in 2022.  Approximately 80% of that amount is sold by Google, Facebook and other social media properties, leaving approximately US $380 million to other players. The growing Hispanic digital advertising market is a sweet spot Canela Media can reap substantial growth from (see chart below and for more information check out our Insights Report How brands engage U.S. Hispanics: New segmentation approaches). However, Hispanic digital media market growth is particularly driven by advertising to English-language Hispanics. However, Canela Media is mostly targeted to the Spanish-language market in the U.S (Spanish-dominant Hispanics). where demographic trends clearly show a declining audience.

Digital Media Funding

“From inception, we made it our mission to serve the underrepresented U.S. Hispanic consumer, while bridging the gap to multicultural audiences for marketers. We look forward to helping more brands capitalize on our unparalleled and in-depth knowledge and understanding of how to establish meaningful and culturally relevant connections with U.S. Hispanics,” said Isabel Rafferty, Founder and CEO of Canela Media.

3. The CTV-AVOD Expansion

The Connected TV CTV) market  grew at a 60% annual rate to an overall U.S volume of US $14.4 billion in 2021. With Hispanic and Latin American audiences being particularly prone to cutting the cord, advertising via OTT and CTV, one of Canela Media’s core offerings, is poised to grow.  With OTT and CTV revenues, companies like Canela Media attempt to take digital advertising market share away from players that are traditionally broadcast oriented like Univision and Telemundo. This trend is also driven by AVOD (Advertising Video on Demand) expected increase in 2022 and beyond due to the saturation of the subscription video on demand market (SVOD).

“We believe this team, combined with its truly unique platform and approach, will unlock the full potential of the U.S. consumer market,” said Rodrigo Garcia, advisor at Angeles Investors. “Our firm’s investment philosophy is all about finding the most exciting startups, funding the most disruptive and fastest growing business models and growing the impact of Hispanic and Latino entrepreneurs in the U.S. economy. With Canela Media, we have discovered the perfect match.”

Launched in 2020, Canela.TV, one of the first AVOD streaming services for U.S. Hispanics/Latinos, is now approaching 10 million downloads. Canela.TV also has a wide distribution of FAST channels through partners such as Samsung, XUMO and LG. Canela Music launched in 2021 with a variety of music genres and original content. The company reaches over 50 million users across their OTT products and 180 Spanish content sites.

4. Female and Minority Owned

Another driver for digital media funding in companies with Canela Media’s characteristics is the dearth of minority and women owned companies. Canela Media is both woman and minority owned. In fact the company claims that it is the single largest funded, Latino-owned company. Additionally it has obtained, the  4th largest amount of funding for a female in the media industry.

Latinos create more business ventures per capita than any other U.S. racial or ethnic group, comprising 18% of the population. Yet, they still receive less than 2% of all venture funding, Digital media investors see an opportunity there.

 

 

Dairy Marketing: Colombian dairy, food, and beverage company Alpina has entered into a partnership with Clover Sonoma, a dairy company located in Sonoma County, CA.  With approximately US $240 million in annual sales,  Clover Sonoma is a leading dairy processor in Northern California. Clover Sonoma is particularly strong in the organic milk market, which is a growing market as opposed to the stagnating non-organic milk market.

Colombian news website Valora Analitik states that Alpina has confirmed that it has purchased a 70% stake in Clover Sonoma. As it relates to Dairy Marketing, while Alpina and Clover Sonoma will be looking for synergies, Clover Sonoma will continue to market its products as a stand-alone brand.

Dairy MarketingClover Sonoma, a dairy company located in Sonoma County, CA, has approximately US $240 million in annual sales and is a leading dairy processor in Northern California. The company employs 260 workers and sources from 30 dairies mostly in Northern California. It is particularly strong in the organic milk market, which is a growing market as opposed to the stagnating non-organic milk market.
Carlos Leal, Marketing Director at Alpina tells Portada that he is very excited about Clover Sonoma’s expansion into the Southern Californian market, where it has already struck distribution deals with retailers including Whole Foods and Trader Joe.

Clover Sonoma’s dairy marketing has traditionally had strong out-of-home advertising and public relations components. Its billboard advertising is famed for punny billboards featuring Clover Sonoma’s Clo the cow mascot. Going forward, Leal sees growth opportunities in the increased use of digital marketing and social media marketing.

The partnership will facilitate growth in the U.S. market, particularly in Southern California.

Founded in 1945 in Bogotá, Colombia by two Swiss immigrants Max Bazinger and Walter Gogge, Alpina operates in Colombia, Venezuela, Ecuador, and the United States.  In the United States, the Colombian company has a unit that imports products from Colombia for U.S. distribution.

Augmented Reality in Marketing: Remember when everyone was talking about Pokémon Go? After the hype subsided, augmented reality has been steadily growing as a force in media over the past five years. Ivan Markman, Chief Business Officer at Yahoo, sees three important trends going forward.

by Ivan Markman, Chief Business Officer, Yahoo

Augmented reality has spent the past few years on the cusp of going mainstream. Ever since the summer of Pokémon Go, experts have predicted that it’s on the verge of widespread adoption. While AR hasn’t yet reached the level of mainstream buzz it achieved during the summer of Niantic’s massive mobile gaming hit, the use of AR tools has been steadily rising for the past five years. 

According to a report released by eMarketer, more than 83 million Americans interacted with some form of AR at least once a month over the past year. Many of those interactions were driven by social media apps, which use AR in their popular photo-enhancing filters and face-distorting lenses, giving AR a stronger foothold with millennials and Generation Z. As the coronavirus upends lifestyles across every demographic, exposure is likely to widen.

The pandemic has escalated three major trends – all of which are likely to drive AR adoption further into the mainstream and therefore increase the use of Augmented Reality in Marketing.

Trend 1: Hunger for Unique Experiences 

 With the population largely at home, the use of streaming and mobile video products has risen across every demographic category, namely entertainment and gaming. As the pandemic lingers on, these new audiences will seek out new and enhanced experiences. People crave novelty and, with their ability to see it in their physical world severely curtailed, expect many users to turn to AR to add variety to their newly fixed surroundings. 

Trend 2: Demand for Differentiated Content

The rise of new audiences has led to a comparable spike in new content. It’s a boom time for content creators of all stripes, but with rising competition, using Augmented Reality in Marketing offers a way to stand out from the crowd by creating an experience that is both more immersive than traditional mobile video and stickier for new adopters facing a flood of similar content choices. 

Trend 3: Augmented Reality in Marketing – New Brand Strategies

The pandemic has cut brands off from a number of ways they traditionally interacted with consumers. Marketing channels such as events are all but off-limits and the in-store retail experience has significantly changed. As a result, many brands are adopting new strategies to better connect with consumers in a socially distanced world. In categories such as automotive and home decor that lean heavily on in-person contact and on-site product experience, investing in AR experiences provides an effective alternative. This increased investment is likely to accelerate the adoption of the technology by a wide range of media and content publishers and, by extension, bring it directly into the hands – or palms – of more people.
While the pandemic is likely to accelerate interest in the use of Augmented Reality in Marketing among marketers and the business and consumer audiences they serve, meeting this moment will take more than simple consumer interest. Most of the major milestones in the history of AR adoption have been driven by technical advances. AR’s biggest moments wouldn’t have been possible without the rise of mobile devices, the advent of high-resolution digital photography and the mass adoption of mobile GPS technology.

Fortunately, there are four key developments underway today that we expect will move the needle on adoption and topple barriers to entry.

More than 83 million Americans interacted with some form of AR at least once a month over the past year. Many of those interactions were driven by social media apps, which use AR in their popular photo-enhancing filters and face-distorting lenses

Plane Tracking and Visualization 

In order for AR to integrate cleanly with images of the real world, accurate plane detection is an unglamorous but core necessity. The launch of Apple’s latest AR development kit, ARKit 3.5, brings with it some advances in plane detection that will allow developers to improve the quality of AR experiments and more seamlessly integrate AR visuals into real-world video and photography. Google has also rolled out new capabilities for AR development on Android phones with the latest version of ARCore, which should upgrade 3D sensing and depth perception. 

Augmented Reality in Marketing: The Emergence of AR for Web

To date, the most ubiquitous examples of AR have been app-based. Tools such as Snapchat and Instagram have popularised AR experiences but also confined them to in-app environments. However, new tools will allow developers to create a wider range of AR experiences for the mobile web desktop, vastly expanding the audience as well as the technology’s applications for digital content publishers and eCommerce businesses. Autoblog, for example, recently launched an AR experience that lets readers see a life-sized version of the new Ford Mustang Mach-E without an app. Google has also added AR functionality – albeit on a limited basis – in a browser-based search.

The most ubiquitous examples of AR have been app-based. Tools such as Snapchat and Instagram have popularised AR experiences but also confined them to in-app environments.

Wearables and Connected Devices  

Freeing AR from in-app environments is likely to spur adoption, but freeing it from mobile phones entirely will be an even more significant game-changer. As connected hardware expands beyond phones and tablets to wearable devices such as glasses, the potential to integrate AR into our daily lives in more novel ways will radically expand. For example, at the Worldwide Developers Conference, Apple introduced iOS 14, which adds momentum to a number of initiatives in this space.

Freeing AR from in-app environments is likely to spur adoption, but freeing it from mobile phones entirely will be an even more significant game-changer. 

More Specialized Expertise 

While the pandemic is driving interest in the use of Augmented Reality in Marketing for brands, it may be difficult for some to scale because their teams and technology aren’t fully 3D-ready. The ability to create AR assets from scratch is still limited to a fairly small pool of specialists, but a rising tide of third-party AR tools and experts will soon democratize the technology and provide brands with the guidance and skills they need to scale in AR without constraints. 

Each of these technical advances, in combination with the radical changes to daily life wrought by the Covid-19 pandemic, stands to accelerate the quality and adoption of AR experiences by consumers and brands. Like all great changes in our history, the pandemic will change the way we live and work, but as with all paradigm shifts, it will bring new forms of media to help us better communicate, understand and experience the world as it now exists.

The ability to create AR assets from scratch is still limited to a fairly small pool of specialists, but a rising tide of third-party AR tools and experts will soon democratise the technology and provide brands with the guidance and skills they need to scale in AR without constraints

The Dominican Republic’s Grupo Corripio and Puerto Rico’s Grupo Ferré Rangel are the two largest media groups in the Caribbean. Both groups have a significant commonality: a very important audience reach in the United States.  With the audience as a backbone, “both media companies joined forces in 2018 to build a larger and stronger audience network of Hispanics in the U.S,” Augusto Romano, CEO of Digo Hispanic Media tells Portada.

The U.S. Hispanic population has grown from 50.5 million in 2010 to 62.1 million in 2020. Hispanics accounted for 51% of entire U.S. population growth during that period. Due to the relative youth of the Hispanic population and its entrepreneurial character it can be said that, more than any other group, Latinos drive the U.S. economy.

In addition to its owned and operated sites, Digo Hispanic Media includes other handpicked premium, reputable, and well-established Spanish language publishers from Latin America and the U.S. in its network.” According to Romano, these premium publishers are the first point of reference for Hispanics in the U.S. and they have the need of staying connected to the news of what’s happening in their country of origin.” For example, these audiences are interested in content that deals specifically with sports heroes of Puerto Rican origin El Nuevo Dia Puerto Rico Managing Editor, Rafael Lama tells Portada .

The Vision for 2025…

Hispanic Media
Aisha Burgos, SVP, Sales & Marketing, Digo Hispanic Media

“We are a data-driven company and our purpose has always been to make true connections between audiences and brands,” Aisha Burgos, SVP, Sales & Marketing, at Digo Hispanic Media asserts.
“By 2025 we expect to take this to the next level by continuing being strategic with our partners, delivering the correct data connectivity and addressability with the audience they want to engage with, not only at the correct time, through the correct channel or device, but also in the correct environment, either in the real world, the metaverse or even outer space. The sky is the limit, pun intended!”, Burgos adds.

By 2025 we expect to take this to the next level, either in the real world, the metaverse or even outer space!

Supporting Digo’s network of publishers is another key element of Digo’s DNA .”As we all know content is king and the audience is the queen, and those are the two most valuable assets that publishers have. We will be side by side with our publishers to ensure that they can continue catering to their audience the content that they need and want in the formats and channels that they prefer, while they can also rely on us in helping them future-proof their business with new ad tech, user experience best practices and new monetization capabilities,” says Burgos.

…and What It Means for Brands.

 

Augusto Romano, CEO, Digo Hispanic Media
Augusto Romano, CEO, Digo Hispanic Media

Premium content and brand safety are two key pillars of Digo’s offering. “Advertisers will benefit from all of the above, plus they will have exclusive access to premium and culturally relevant environments where they can connect and engage with their desired audience,” CEO Romano emphasizes. Digo has developed its own ad-tech stack, which allows it to offer audience segmentation,  dynamic-creative optimization and other services to advertisers. Digo also has partnerships with major DMPs. “Our ad-tech, plus our audience first-party data and our network allow us to develop the perfect solution for our clients, aiming always to achieve their business goals. Our clients will also benefit from relevant insights related to their target audience and will be able to execute new and more intelligent strategies to continue improving its ROAS,” Romano mantains.

Hispanic Media: Owned and Operated Sites Meet Brands’ Thirst for First-Party Data 

In times of cookieless marketing and brands’ imperative to gain first-party data, having a Hispanic media partner who owns and operates (OO) digital media properties is very advantageous to advertisers. “Having owned and operated sites gives us a competitive advantage vs other networks since we are able to identify our audience and gather our first-party data with a key-value setup – universal id’s – allowing us to push the audience segments to our Ad Manager, SSP and/or our DSP.  “This enables us to maintain data connectivity and addressability in a cookieless world. We have been testing and executing campaigns with this cookieless approach and we’ve seen great results in performance and costs,” Romano concludes.

 

Our ad-tech, plus our audience first-party data and our network allow us to develop the perfect solution for our clients!

 

Felix Antelo CEO of Viva Air, tells Portada how the Colombian ultra-low-cost airline is expanding into new markets, including the United States. Antelo also provides interesting insights into how low-cost airlines are marketed in Latin America vs. the U.S. and more.

The global low-cost carrier market is expected to grow at a compounded annual rate of 8.6% to US $247 billion in 2025. A substantial amount of that growth will be coming from Latin America. Colombia’s ultra-low-cost Viva Air is part of a new breed of carriers that are democratizing travel in Latin America. Viva Air intends to open fifteen new routes in the 2022 – 2025 time frame, including new flights from its hub in Medellin to Buenos Aires, Sao Paulo, Curacao and Aruba. Other new destinations are also planned out of Bogota. In North America, Viva Air has been flying for four years to Miami and has a four-month-old route to Orlando. The airline expects to add flight routes to New York and Toronto.

Rebranding

Aligned with Viva Air’s expansion plans is the company’s rebranding. Formerly known as Viva Colombia, in May 2021, the company rebranded as Viva Air to facilitate its development throughout the region, while inviting consumers to “Fly More”. The company also recently got its newest Airbus A320neo airplanes and expects to close 2021 with 19 airplanes and 2022 with 31. “We invested US $2 million in a new website, as well as in a new app and even a new yellow-based uniform for our crew,” Viva Air CEO Felix Antelo tells Portada
Key elements of the rebranding are the tag line  “vuela mas”  (“Fly More”) as well as the use of the color yellow. “Yellow is a color that relates to optimism, it is also cheerful, modern, and young.”  In addition, for the Latin American region, only the word Viva is used; without the “Air”.

The regionalization of the brand also plays an important role in Viva Air’s rebranding. “The rebranding is aligned with the regionalization of our brand, our previous brand was very Colombia oriented and included the Colombian flag in the logo,”   Antelo adds. “We are replicating on a regional basis what we have been doing in Colombia and are introducing the ‘Viva effect’ by reducing the fares between 30% and 50% vs. traditional airlines.”

We are replicating on a regional basis what we have been doing in Colombia and introducing the ‘Viva effect’ by reducing the fares between 30% and 50% vs. traditional airlines.

Viva Air’s Marketing

Felix Antelo, CEO, Viva Air

Antelo tells Portada that 80% plus of Viva Air’s marketing investment is in online marketing. (European ultra-low-cost carriers like Easy Jet or Ryanair invest a similar proportion in online marketing.) It includes online advertising as well as social media.  SEO and SEM play an important role with 10%-15% of sales attributed to these marketing disciplines.
Overall, though, Antelo notes that his company does not depend much on Google, and mostly uses its own e-mail database.
Viva Air also will be launching a loyalty program, based on discounts for 5 to 8 trips.  The company also recently hired a consultancy to implement a more developed CRM program. “Airlines are with banking the industries that have most data about their customers. We are in the very early stages of maximizing the use of that data. We are working on a project to maximize the use of predictive data,” Antelo remarks.

10% to 15% of Viva Air’s sales can be attributed to SEO and SEM.

Viva Air: Applying the Ryanair Model in Latin America

Ryanair, the ultra-low-cost Irish carrier, is the majority owner of Viva Air and wants to replicate the Ryan Air model in Latin America. According to Felix Antelo, CEO of Viva Air, there are “key differences that need to be taken into account to adapt the Ryan Air model to our reality.”  One of these differences is that Ryan Air takes cash payments: “Approximately 20% of sales are in cash, many of our customers do not have a credit card. We integrated cash payment methods for our customers in our offering,” Antelo notes.  Another key difference is that 20% to 25% of Viva Air’s sales come from OTA’s (online travel agencies), versus approximately 10% for Ryan Air, which sells 90% of its tickets directly through its own website. “We sell more than 70% of our tickets on our website, that is a very high number for Latin America, but we do need the OTA’s,” Antelo asserts.

Cash sales and more reliance on OTA’s differentiate the Latin American low-cost market from the U.S. and Europe.

 

 

 

Fabrizio Luna’s incorporation reinforces Worldcom OOH’s commitment to its global expansion as it continues to strengthen the company by generating new business out of Europe.

Worldcom OOH, the company that specializes in global Out of Home advertising solutions reinforces its global commitment through the appointment of Fabrizio Luna as his new Managing Director for Europe. After 21 years at JCDecaux, 4 years in Paris, and 17 years heading its corporate international sales division out of London, Fabrizio Luna has become a well-known figure within the outdoor industry.

Fabrizio LunaLuna is based in the Madrid office and is responsible for leading growth and expansion in the European region and globally. In addition to day-to-day functions, Fabrizio will also be responsible for developing WorldCom OOH Content and Smart Alliance companies.

Luna’s addition reinforces Worldcom OOh’s commitment to expanding globally as it continues to strengthen its footprint by generating new business out of Europe.

Worldcom OOH provides  360º OOH media buying solutions on a worldwide basis across all outdoor activities such as: roadside, large format, public transport, underground, train stations, shopping malls, airports, digital screens, as well as cinema and mobile advertising. Worldcom OOH delivers a global service with local execution, offering bespoke automated tools for OOH media planning, campaign deployment and real-time tracking posting for all launched campaigns.

The company has 10 years of experience in the European market, 170+ international clients, 180+ professionals, and 20 offices strategically distributed in 16 countries around the world.

Fabrizio Luna

Smart Alliance, is a company specialized in advertising and experiential activations in airports around the world.

With a global reach and a dedicated focus on Travel Retail and Luxury brands, Smart Alliance is the largest marketer where the local operators are not vendors but partners. The company is the right point of contact helping brands to interact with their airport shoppers.

CAS (Content Advertising Solutions) is specialized in content activation, implementing special campaigns, experiential executions, as well as guiding advertisers to optimize their ad messages, ensuring the right message will be delivered to the right audience.

Flexibility and experience are some of Worldcom OOH’s key features. They offer the company the opportunity to   reinvent itsel by adapting to the needs of advertisers, agencies and embracing the new challenges posed by the evolution of the Out of Home medium.

A pioneer in the use of technological platforms, Worldcom OOH has created and developed several in-house digital tools in order to enrich client servicing, such as automated planning tools, tailor-made inventory selection, support content management, campaign tracking control, as well as a dedicated and personalized client access portal.

With its global coverage and local knowledge, Worldcom OOH provides media planning expertise with fully integrated OOH/DOOH asset solutions, bespoke financial flexibility and an exclusive central point of access delivering outcomes for advertisers around the globe.

 

Aprende Institute, an EdTech platform for the Spanish-speaking population, just closed an investment round of US $22 million. Portada talked to Martin Claure, CEO of Aprende Institute, about the Ed Tech company’s growth plans and the opportunities he sees in the high-growth U.S. Hispanic market.

Small business owners, so-called solopreneurs, are a key foundation of the U.S economy. This is, even more, the case for the U.S. Hispanic market, which over-indexes for entrepreneurship. Based on the U.S. Hispanic market growth potential, investors just closed an investment round of US $22 million in Aprende Institute, a vocational training platform focused on professional development and economic advancement for the Spanish-speaking population.

Aprende Institute has enrolled more than 70,000 students in the last two years by providing a high-quality, flexible and affordable solution to learn high-demand vocational skills in Entrepreneurship, Beauty and Fashion, Gastronomy, Trades, and Wellness. Martin Claure, CEO of Aprende Institute, tells Portada that Aprende Institute learning programs provide practical 3 to 9 months programs that are developed for individuals who have a passion or interest and want to monetize it. “It’s all about economic advancement and personal growth in order to empower them to become an entrepreneur,” Claure asserts. These solopreneurs or future solopreneurs need hard and soft skills including knowledge about understanding costs, set price levels, use social media to build a customer base or management expertise.

According to Claure, the new funding will enable Aprende Institute to attract top-tier talent across all areas, further improve educational offerings and expand services to businesses and institutions to boost growth.  “We are developing courses in marketing, sales, negotiation, finance, and other value-added services specifically designed for our student body to acquire the business and soft skills needed to run successful ventures,” Claure explains.

A Community College Online Experience

Aprende Institute’s classes are 100% online. “We produce the content and provide our students on-demand access to experts. Experts moderate conversations and there are also assessments across the curriculum where students are asked to do certain tasks. In addition, there are 2,000 live classes per month. According to Claure, these live classes foster a sense of community and peer-to-peer learning.

Aprende Institute
Martin Claure, CEO of Aprende Institute

The price of classes ranges from US $30 to US $100 per month. Aprende Institute so far has enrolled 70,000 students, with 30,000 students currently studying. “In 2022 we want to enroll 150,000 students,” Claure says. The funding will allow Aprende Institute to continue growing in the U.S. Hispanic Market, its largest market.
Aprende Institute was launched in Mexico, and also has a substantial amount of students in Colombia, but between 70% and 80% of its students are in the U.S.
To gain even more U.S. Hispanic students, Aprende Institute has partnered with Univision, who is also an investor in the new round of investment. Univision will make its product offering more widely accessible to the U.S. Hispanic community. “We will be building a learning channel with Univision, Claure notes. We will be advertising our products in their different platforms and we will be providing our experts for Univision to use in its programming.”

“Spanish-dominant Hispanics are the largest and most underserved demographic in the tech space. There are approximately 43 million Spanish-first consumers in the U.S.” All classes and content are in Spanish, although Claure notes that he is planning to partner with an English -language content provider at some point to teach English to existing students.

Spanish-dominant Hispanics are the largest and most underserved demographic in the tech space. There are approximately 30 million Spanish-first consumers in the U.S.

Aprende Institute’s Marketing

Up until recently, Aprende Institute’s Marketing has revolved around performance marketing, mostly through the use of Facebook, Youtube, and Google. Now with the Univision partnership, Claure hopes to gain more brand recognition through offline marketing including the activation of TV spots. A key element of his marketing going forward, Claure asserts, is to build partnerships with companies that have small businesses as a key audience target.
As an example, Claure cites a partnership with industrial tools and household hardware manufacturer Stanley Black & Decker. Aprende Institute will be building a training and advancement platform for Stanley Black & Decker’s ecosystem. The platform will include instructors and coaching. “Training is a tremendously powerful tool for companies to position their brands and increase loyalty among different participants in their value chains. It’s also a highly effective tool for organizations and institutions that promote social responsibility programs aimed at improving employability and entrepreneurial skills,” Claure notes.

Investors in Aprende Institute

The US $ 22 million investment round was led by Valor Capital Group and included the participation of previous investor Reach Capital. Also participating in the round were strategic and financial investors such as ECMC Group, Univision, Angel  Ventures, Capria, Endeavor Catalyst, Artisan Venture Capital, Matterscale, Salkantay Ventures, 500 Startups, The Yard Ventures, Claure Group, and a select group of angel investors. The new financing brings the total raised by Aprende to date to US $27 million. “At Valor, we believe in the transformative potential of education. We have already invested in companies that have drastically changed not only markets but people’s lives through more inclusive education,” says Antoine Colaço, Managing Partner of Valor Capital Group. “Aprende Institute caught our attention for being a social business that, through technology, helps a wide number of people find their true vocation and reach for better opportunities,” he adds.

 

 

 

 

 

 

As CTV advertising is clearly on the rise  there is still a lot of confusion in the brand marketing and media buying community about what CTV really means and what its key features are. What are its advantages? Is it interactive? How do you buy it? 6 key questions and their answer according to executives from Mastercard, Innovid and Portada’s editorial team.

1. What is CTV Advertising?

Connected TV advertising (CTV) is advertising placed on any TV that can be connected to the internet. These TVs, also called Smart TVs, either directly access the Internet or do it via devices like Roku, Amazon Fire, or Google Chrome. The key for the definition of CTV is the large TV screen, which allows advertisers to engage audiences in a linear TV-like environment, a one-to-many relationship enabled by co-viewing and higher engagement due to the large screen,  compared to other types of digital advertising that tends to be based on a one-on-one relationship between content and user.

What is CTV Advertising
Jose Vicente Luque, Head of Media & Agency Relations Latin America & the Caribbean, Mastercard tells Portada.

Advertisers are taking notice: “CTV allowed us to reach audiences with a high technology adoption rate, interest and consumption time compared to other media we used in our campaign,” Jose Vicente Luque, Head of Media & Agency Relations Latin America & the Caribbean, Mastercard tells Portada. Another advantage, Luque says, is that it is a less saturated channel and, therefore, brands will have a better exposure.

CTV allowed us to reach audiences with a high technology adoption rate, interest and consumption time compared to other media we used.

And What CTV Advertising is Not

CTV advertising is not OTT Advertising. OTT (Over the top) advertising is a more inclusive term which includes CTV advertising and advertising over laptops, desktops, smartphones, ipads and other non TV-screen devices.  In other words, CTV advertising is a subset of the larger OTT advertising sector.

DOWNLOAD: White Paper on CTV Opportunities in Latin America (presented by Entravision Interactive in Spanish)

2. Is CTV Advertising Interactive?….

Let’s say it depends.  CTV by and large does not yet allow for bidirectional interactivity between consumers and advertisers (although check out question 3 for a new initiative that makes it really bidirectional). Brands can, however, use a myriad of data triggers and provide customized ads – by making a reference to the closest retail store, provide messaging according to the weather were the audience is based etc. – in order to make the ad experience much less standard than it usually is on linear TV. For instance Kellogg’s Pringles Super Bowl 2019 campaign greeted consumers with a “Hey Chicago” or “Hey New York,” depending on the user’s location. 

….with help from other media (multichannel marketing).

A way to make CTV advertising bidirectional is to have consumers use another media in addition to Smart TV.  In fact in the above referenced Pringles Super Bowl campaign the ad featured an overlay promoting a QR code which, once scanned with a mobile phone, directed viewers to an e-commerce site.  According to Verizon Media, a whopping 71% of CTV viewers use their mobile devices to look up related content while watching TV, providing advertisers the ideal setup to make meaningful connections with audiences.

71% of CTV viewers use their mobile devices to look up related content while watching TV.

Other options include to use omnichannel marketing based on the users response to the CTV ad. For instance, a national lawn care company, recently ran a four-week, nationwide CTV campaign originally designed to build upper sales funnel awareness. By adding the ability to know who watched the OTT/CTV ad to completion and then serve them retargeted ads on their other digital devices, they were able to generate over 20,000 visits to the client’s site. This ultimately was attributed down the funnel to US $2.1 million in sales, and with offline conversion attribution, they were able to deliver an astounding 3,000 : 1 return on investment.

3. What needs to happen so that CTV is really interactive?

Stephanie Geno
Stephanie Geno, CMO, Innovid

For CTV to be really interactive, or bidirectional, a SDK (software development kit or a collection of software development tools in one installable package) needs to be embedded on hardware solutions (e.g. Roku devices) as well as in dozens of publishers, Stephanie Geno, Chief Marketing Officer, at Innovid tells Portada.
Geno adds that “a really interactive industry first execution piloted on the Apple TV App of the above cited Pringles 2019 Super Bowl ad featured an interactive overlay that allowed viewers to swipe through an engagement carousel featuring various flavor stacking combinations. The carousel played in ad only.” (Viewers who watched the game through other apps/providers were served standard pre-roll ads.)

To make CTV 100% interactive Innovid, DSP The Trade Desk and SSP Magnite came together and looked at all places where interactive SDK’s are present in the U.S. The three companies partnered to create a unified marketplace to power advanced creative buying programmatically across the connected TV ecosystem.
Innovid’s proprietary software development kit (SDK) powers personalized and interactive experiences in CTV through direct integrations across over 50 publisher apps. The SDK is central to Innovid’s offering, enabling brands to take advantage of a 360 approach to connecting with consumers across channels.

DOWNLOAD: White Paper on CTV Opportunities in Latin America (presented by Entravision Interactive in Spanish)

4. How CTV Can Earn Additional Time with the Target Customer

What else is CTV Advertising? Innovid’s Geno also notes that real interactive CTV allows advertisers the opportunity to earn additional time with their target customer. In its global omni-channel benchmark report Innovid analyzed over 200 billion display and advertising impressions served on its platform during 2020. A key result is that while compared to standard video pre-roll advanced creative video formats overall generated an average of 34 additional seconds earned, interactive CTV generated an additional 63 seconds earned.

Compared to standard video pre-roll interactive CTV generated an additional 63 seconds earned with the consumer.

5. Why On-Demand TV is better suited than Live TV for the user Experience with CTV Advertising

On demand TV, as opposed to live TV, is particularly well suited to extend the interactive CTV experience. According to Innovid’s Geno, this typically happens by having an interactive overlay popping up out of the pre-roll video through which the  consumer is taken out of the ad and taken into a 1:1 experience. For Live TV, like the Super Bowl, continuing the interaction on the Smart TV would have disrupted the experience as users likely would have wanted to continue to watch the football game. That is why, for live TV, it is better for the user experience to extend the interaction through an additional media vehicle,  like the mobile phone, instead of over the Smart TV.

6. How do you buy CTV?

What is CTV Advertising’s purchase process? Historically, CTV has been mostly bought through the upfront process. And then activated programmatically.  However, over the last six months growth in CTV Advertising has been spurred by programmatic real time bidding (RTB). CPMs (Cost per thousands) for CTV advertising will tend to be between 2 and 3 times higher than traditional linear TV ads, but overall budgets will be significantly lower as CTV allows advertisers to move away from a blanket approach to much more customized media buy and, thereby, eliminate waste.

CPMs for CTV advertising are between 2 and 3 times higher than traditional linear TV ads, but the needed CTV campaign budget will be substantially lower.

 

 

Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.

  • According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).

 

  • The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.

 

  • Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.

 

  • Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.

 

  • According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.

 

Portada picked Andy Berman’s brain to find out the history, tips, and insights behind Global Mind’s meteoric rise to advertising fame.

From Analog to Digital: A Mindframe for Radical Changes

Andy Berman, CEO, Global MindAndy Berman considers himself lucky to have been born in his time. Like many of us, he got to live through one of the most powerful social phenomena in humanity: the world’s transition from analog to digital. “Technology came early into my life. I experienced the first signs of change when I was a teenager. I remember my parents buying me my first console, the Atari. Then the Commodore 64, the Amiga, the 128, then the PC XT… Thing is, I learned through change.”. With each bold innovation, Berman was learning to adapt, evolve, and understand technology like a true native.

But how did these experiences help him lead his company through great change and disruption? “Along with progress, I saw lots of people and lots of companies crash and burn”, says Berman. “But you learn from everything, and then you put it to use for your benefit.” And so, and old-school computer geek and his hunger for innovation helped create a full-service, cross channel advertising agency for the future.

The Digital Way or the Highway

Berman had a clear vision from the very beginning. Almost twenty years ago, the internet was barely moving from the dial-up modem to broadband connections. Owning a home PC still felt sci-fi. TV was the undisputed king of media. But pushing into the future, Global Mind’s DNA has been digital since Andy Berman conceived it in 2001. “We were doing digital when digital didn’t matter to anyone. For us, it was everything. For the other big agencies, it was nothing but a tiny slice of the advertising cake. So, we became a white-level agency for others for a long time. We gained so much knowledge of the digital world until the same agencies that shunned digital saw the cake was getting bigger”, explains Berman.

We were doing digital when digital didn’t matter to anyone. For us, it was everything.

However, as soon as companies realized the massive hit they were missing, they started putting together their own in-house advertising teams, fast. Former clients were now “making their own cake”, so to speak, and Berman’s business took a hit.

In order to stay relevant, Global Mind faced its first major change of direction. The company took a leap of faith and started looking for direct clients instead of performing from behind the curtain. “For ten years, we always had direct customers, but it was never our main business. However, we had a strong regional footprint and we went for it. Our track record of having been white-level for so many agencies made customers trust our services”, explains Berman.

The brave and timely switch of business models worked, big time. “We expanded from Argentina to Toronto, then to Mexico, Colombia, and the US”, recalls Berman. And the success went on for years, until they became the biggest independent players in Latin America. But then, at the top of their game, came yet another wave of change. Sometimes the only way of growing is becoming a link on a stronger chain.

An Offer You Cannot Refuse

The Dentsu Aegis Network derives around 60% of its revenue from digital activity across 143 markets. The international giant purchased Global Minds in July 2018. Andy Berman didn’t hesitate when offered the opportunity. He knew that great power would also bring great technology. This made the decision a no-brainer. “Dentsu had the technology we didn’t have; whatever we had was sourced by Google. We sold our company knowing we’d be getting all those benefits, and access to all that data. So we brought together the best of two worlds: an agency with know-how that works well and a global giant with all the technology. We used to be the biggest independent agency in our region, except for Brazil. Now, we’re part of the big six”.

We brought together the best of two worlds. […] We used to be the biggest independent agency except for Brazil. Now we’re part of the big six. 

And if they’d never been purchased by Dentsu? Would that have made a difference? “We would’ve had to make a tremendous investment to get the same technology now available to us”, replies Berman. “Otherwise, we wouldn’t have been able to offer the high-quality service expected from a global agency”. Simply put, either you keep up or you die. But you always move forward.

Andy Berman’s Five Golden Rules for a Media Agency

According to Andy Berman, these are the tenets of a successful media agency. Missing just one of these would mean putting your agency at a dire risk of obsolescence. Follow purposefully:

  1. Take good care of your staff. Choose them well and listen to their needs. “We still have employees from the first day the company started. Loyalty is the result of taking good care of your employees”, says Berman. So keep them happy and motivated and they’ll be there through thick and thin.
  2. Constantly invest in your business. “Challenges are everywhere. Global Minds was founded twenty years ago, and the digital landscape has now changed entirely. We had to invest, change, do a bunch of things to keep up”. There’s no progress without investment, so be generous with your own company.
  3. Fail fast, mend immediately. “You need to try, experiment and do it faster than anyone else. But when you’ve made a mistake, don’t dwell on it. Pick up and learn as much from it as you can”. Err constantly, but wisely.
  4. Don’t follow trends, set them. “We were one of the first agencies to do regional searches, the first to try to get mobile when everyone else thought we were foolishly wasting money”. Trends might be volatile, but so is the market.
  5. Create specialized divisions. Always assign the right task to the right person. “We were one of the first agencies to have a Mobile Media Director. Over the course of 20 years we’ve had a bunch of directors for different things. When something very disruptive comes along, you have to hire someone who knows who to drive that disruption from within the agency”. Without someone fully developing new technologies, the staff would just be grasping at a straw they don’t fully comprehend.

 

What: CommerceNext has published the results of a survey of 100 e-commerce decision-makers, meant to explore similarities and differences in the priorities of traditional and digital-first DTC brands.
Why it matters: The report is meant to be a benchmark that helps marketers evaluate their priorities in terms of how to distribute budget among different technologies and objectives.

 

E-commerce is unpredictable; it forces marketers to be on the lookout for what’s coming next and reacting if only a little bit late can turn out to be fatal. In order to be more ready, decision-makers have to decide what matters more in every step of their strategy, which means having to prioritize investments and objectives. With these challenges in mind, CommerceNext conducted a survey of 100 top marketing executives in traditional and digital-first direct-to-consumer brands.

The objective was to provide a useful benchmark for online retailers to measure their priorities and decide how to distribute budget in the most convenient way. According to the results, even though both traditional and digital-first online retailers point to an increase in marketing budget, digital-first brands are spending way more while also diversifying their strategies. Below are the key insights from the study, titled How Leading Retailers and DTC Brands Are Investing in Digital.

 

Which Investments Did Work in 2018?

In order to compete, marketers need to be quick to decide which investments can help them reach their objectives. According to the study, 65% of respondents said their 2019 e-commerce marketing budget increased over the previous year, while only 10% of marketers are reducing their budget. In 2018, the top marketing investment priorities were acquisition marketing (81%), retention and loyalty marketing (43%) and promotions (32%).

When asked about the results of those investments, acquisition marketing had the highest level of satisfaction rating: 53% of respondents said acquisition marketing met expectations in 2018, and 24% said it exceeded expectations. On the contrary, 52% of respondents said unified customer data (e.g. a single view of the customer) performed below their expectations. Almost the same number had similar levels of dissatisfaction in personalization investments (51%).

Source: CommerceNext

 

What Are the Priorities of Digital-First and Traditional Retailers?

According to the report, consumers have more than doubled the amount of time they spend on DTC brands’ websites over the last two years. Even though all the companies in the study have increased their e-commerce marketing budgets, digital-first DTC brands are spending more: 78% indicated that their 2019 budget is higher than the one they had in 2018, while 60% of traditional retailers said the same.

Because DTC brands are based on data-driven decisions and customer-centric operations, they are growing and evolving at an accelerated pace. As stated in the report: “fueled by venture capital investment, these brands have focused on growth vs profitability.” Therefore, the most significant challenge for this group of brands is “achieving profitability at scale”, with “Managing tech integrations” coming in second, with 33% of DTC brands identifying it as a barrier. This is a side-by-side comparison of what each group considers to be the most significant barriers, extracted from the study:

Source: CommerceNext

How to Make the Best of the 2019 Holiday Season

According to the NRF, the 2018 holiday retail season exceeded expectations. Over 165 million Americans reportedly shopped either in stores or online from Thanksgiving Day through Cyber Monday 2018, and online purchasing, in particular, experienced a 19% increase compared to the previous year. The NRF has forecasted that 2019 retail sales will increase by 3.8% compared to 2018, and the online sales growth rate will increase between 10% to 12%.

DTC brands are increasing their budgets at a higher rate than traditional retailers and spreading that budget more evenly. For example, digital-first DTC brands are increasing their budgets equally (70%) between acquisition marketing and retention/loyalty marketing. On the other hand, traditional retailers are emphasizing acquisition marketing, with 77% of respondents increasing their acquisition budget compared to 64% of traditional retailers increasing their retention budget.

 

 

All images by CommerceNext.

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