AHAA: The Voice of Hispanic Marketing has released its third study in its Revenue Growth series revealing a positive connection between corporate Hispanic marketing and revenue growth specific for the Technology, Telecommunications and Entertainment categories. In fact, the data showed that Hispanic allocation alone explains about 30 percent of change in topline revenue growth among manufacturers of consumer hardware, software, content, and connectivity providers.
While other factors, such as product innovation, user experience, brand equity, price and distribution, among others, are at play, the AHAA study found that for every one point increase in Hispanic marketing focus yielded a boost of about two-thirds of a point in average annual growth. In other words, if a company were to allocate 10 percent of ad resources to Hispanic media over five years, an average increase of 6.8 percent in organic revenue would be expected.
One unexpected finding was that for the tech sector, an average investment of six percent in Hispanic is yielding 30 percent of the corporate growth.
"This is a compelling figure because it means that Hispanics are primary drivers of growth among technology companies, and there is still a huge growth opportunity ahead as Hispanics continue to lead adoption and usage – think about the growth potential if technology companies were to increase that figure to 10 or even 15 percent," said Roberto Orci, chair of AHAA and CEO of Acento Advertising. "Brand loyalties are increasingly at stake as Hispanics dominate segment growth. In fact, many brands may be falling short of their optimal revenue generation while opening the door to their competitors who boast higher allocation figures and cohesive Hispanic-centric strategies." READ MORE
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