9401: AHAA Study Reveals Gringo BS.

Advertising Age reported on the latest study by the Association of Hispanic Advertising Agencies, which showed how U.S. advertisers are underutilizing and ultimately disrespecting AHAA members. Presenting evidence to demonstrate that heavy spending in Hispanic media leads to revenue growth doesn’t seem to affect change. The study broke advertisers into five groups: Denial, Laggards, Followers, Leaders and Best-In-Class. MultiCultClassics contends all the groups warrant another label: Culturally Clueless. Of course, the apparent disinterest by advertisers sharply contrasts the rise of Shifty Segregation® in White agencies. Would someone please provide a Spanish translation for What the Fuck?

Increased Spending on Hispanic Ads Boosts Marketers’ Revenue, AHAA Survey Says

But 57% of Top 500 Advertisers Allocate Less Than 1% to Target Latinos

By Laurel Wentz

Marketers who spend heavily on Hispanic media are seeing their revenue grow faster than those that don’t, according to a new analysis by the Association of Hispanic Advertising Agencies. For advertisers who allocated 14.2%—the percentage of adults who are Hispanic in the U.S.—or more of their ad budgets to Hispanic marketing, that Hispanic allocation explains about half of the variance in their revenue growth over the last five years, the study found (www.ahaa.org).

But those are rare marketers. The AHAA study found that 57% of the top 500 advertisers spent less than 1% of their ad budgets on Hispanic advertising in 2010. AHAA refers to that group, which includes Fedex, Southwest Airlines, Hasbro and Mattel, as “in denial.”

The study, conducted by Santiago Solutions Group, split the top 500 advertisers into five tiers. Just above the “in denial” group, the “laggards”—16% of all advertisers—spent up to 3.5% of their budgets on Hispanic advertising and the “followers”—11% of advertisers—spent up to 6.3. At the top of the pyramid, just 5% of the top 500 marketers spent more than 14.2% of their 2010 ad budgets on Hispanic media, and 11%, dubbed “leaders,” spent between 6.4% and 14.2%.

Carlos Santiago, president and chief strategist, said that on average about 5% of the total print, radio, and TV budgets of the top 500 advertisers are dedicated to the Hispanic market.

“Brands with a Hispanic market focus with determination and discipline are going to see more rapid growth,” he said. “Companies cannot just pop in and out of the Hispanic market and see benefits.”

Robb High, an agency new business consultant who spoke at AHAA’s annual conference this week in Miami, urged Hispanic agencies to compete for general market assignments, just as general market agencies are trying to move into the Hispanic space. “It requires a perception change,” he said.

Some Hispanic agencies are already getting there. General Mills, ranked in the “leaders” category in AHAA’s study, uses its Hispanic agencies for some general market work for certain brands. Casanova Pendrill, for instance, is both the general market and Hispanic agency for FUN da-middles, a new cupcake mix with a creamy filling. Three videos debuted last week featuring elaborately decorated cupcakes in awe of a plain cupcake with delicious filling.

And Bromley does general market work for Yoplait Delights and Totino’s. Bromley is re-positioning itself through a new tool based on values and culture, said Jessica Pantinini, Bromley’s chief operating officer. “We found we could segment the total market against values,” she said. The four segments range from “Stagnatives” who aren’t open to outside cultural influences to “Eye to Infinities” who want to share and experiment, she said.

McDonald’s Corp, which ranks in AHAA’s top tier of Hispanic advertisers, even uses its Hispanic TV ads in the general market rotation. This year 15% of McDonald’s general market rotation is devoted to Hispanic spots, done by Alma DDB, up from 10% last year.

6321: Arbitron Loses, Um, Settles Lawsuit.

From Adweek.com…

Updated: Arbitron Agrees to Settle Lawsuits
The suits alleged that the rating company engaged in deceptive marketing in the deployment of its portable people meters

By Steve McClellan

NEW YORK Arbitron said today that it has signed consent agreements to resolve lawsuits brought by the states of New York and New Jersey in October that alleged the rating company had engaged in deceptive marketing in the deployment of its portable people meter in the New York radio market.

The New York suit also charged that Arbitron had failed to disclose flaws in the New York PPM that resulted in the underrepresentation of African-American and Hispanic radio listeners, causing financial harm to minority broadcasters in the market. The New Jersey lawsuit alleged violations of that state’s consumer protection and civil rights laws relating to the marketing and commercialization of the portable people meter.

The states confirmed the agreements, with the New York State Attorney General’s office calling its settlement the first of its kind in the nation and saying it calls for an “overhaul” of Arbitron’s New York PPM methodology.

“The radio airwaves should represent the diversity of New York State,” Andrew Cuomo, New York State Attorney General, said in a statement. “With this lawsuit, we sought to address the misrepresentation of a flawed product in the marketplace and its impact on the communities that need the most protection. This agreement ensures that Arbitron will fairly measure radio listenership in New York and fairly represent New York’s diverse radio market. As Arbitron works to improve this product, which should not have been released in its current form, my office will aggressively hold Arbitron to rigorous standards to make PPM a better product.”

New Jersey Attorney General Anne Milgram said the settlement “will ensure that Arbitron consumers are receiving a more accurate sampling product while, at the same time, ensuring that minority-owned broadcasting outlets are competing on a more level playing field.”

Arbitron CEO Steve Morris stated: “Broadcasters, agencies and advertisers in New York can continue to use PPM measurement of radio without any hesitation or reservation. We are also pleased to be able to resolve this action within the framework of our continuous improvement program for the portable people meter ratings service in the New York radio market. These initiatives are sure to increase the accountability of radio to the benefit of all New York radio broadcasters and their advertisers.”

As part of the agreements, Arbitron pledged to recruit more people for its listenership panels in cell phone only homes and to make greater attempts to recruit people in person. The original lawsuit charged that Arbitron’s failure to do so resulted in the disproportionate exclusion of African Americans and Latinos from its ratings panels.

The company also agreed to take “all reasonable measures” to insure that an average 75 percent of the data issued by the New York PPM system for all demographic groups was usable and reportable by April 1. 2009, “and to ensure that subcategories comprising 10 percent or more of the New York Metro population fall within 90 percent of the overall 75 target.”

Arbitron also agreed to strive to obtain accreditation for the New York PPM service from the Media Rating Council, which previously denied accreditation. The state said it reserved the right to revoke the agreement and restart litigation if Arbitron does not receive the MRC’s formal blessing by Oct. 15, 2009, or if it does not achieve the methodological changes agreed to by certain dates.

The company also agreed to pay $200,000 in settlement of the claims and $60,000 for costs. The company will pay $100,000 to the National Association of Black Owned Broadcasters (NABOB) for a joint radio project between NABOB and the Spanish Radio Association to support minority radio.

Arbitron also agreed to fund an advertising campaign in the New York market (of at least $25,000) promoting minority radio and to include a disclaimer on promotional material indicating that PPM ratings are based on audience estimates and should not be relied on for precise accuracy or precise “representativeness” of the New York radio market.

The ratings firm will also conduct a study “to determine and cure measurable bias the PPM methodology may have on racial minorities.” The study is to be completed in July; any biases are to be remedied within six months.

This story updates an earlier item with the news that Arbitron has also agreed to settle the New Jersey lawsuit.

6176: Culturally Biased Reporting From Adweek?

On the one hand, it’s nice to see the typically culturally clueless Adweek providing such in-depth reporting on the conflicts between Arbitron and the Association of Hispanic Advertising Agencies. Then again, is Adweek truly interested in the affair, or is the Nielsen-owned publication simply taking advantage of the situation to spank rival Arbitron?

AHAA Slams Arbitron

By Steve McClellan

NEW YORK The Association of Hispanic Advertising Agencies wrote to Arbitron on behalf of its member shops late last week chastising the radio ratings company for ignoring concerns it spelled out more than two months ago about the composition of the listener panels in markets where it deploys the portable people meter.

The agency trade group charged that Arbitron continues to offer PPM ratings based on samples that generally underrepresent Hispanic listening audiences. Within the Hispanic sample segments, AHAA, said, the ratings company does not break out income data or country of origin data and relies on recruitment methods that skew toward English-dominant persons.

The panels also omit ZIP code information that was available in diary reports and which is very important for retail clients, the letter stated. Also missing: listener loyalty metrics. Other deficiencies were also spelled out in the missive.

“As Hispanic-specialized agencies, we have a responsibility to our clients to maximize their budgets, and deliver sales and results,” wrote AHAA chairman Jose Lopez-Varela. “With PPM, we are unable to do our jobs effectively and our clients will suffer. When a research sample is inaccurate, the research is invalid. The PPM sample is wrong.”

Lopez-Valera wrote of his “great disappointment” at not hearing back from Arbitron after he wrote on Sept. 11 outlining similar concerns. “AHAA has tried in good faith to work with Arbitron and communicate our reservations clearly and concisely,” he wrote in his follow-up letter, dated Nov. 20 that was addressed to Arbitron vp Rich Tunkel and office of multicultural business affairs director Stacie de Armas. “However, you and other company representatives have been indifferent and refuse to acknowledge the severity of the consequences that PPM in its current state poses to the Spanish-language radio industry and the U.S. Latino communities.”

Groups representing the interests of other minority groups have also complained about inadequate representation in the Arbitron PPM samples, as have numerous broadcasters, focused on both minority and mainstream audiences. The AHAA letter was sent two days after FCC Commissioner Jonathan Adelstein urged the full commission to investigate complaints that the PPM underrepresents minority listening. New York State Attorney General Andrew Cuomo is also investigating.

The AHAA letter also followed by just a few days word that Nielsen Media Research (like Adweek, owned by the Nielsen Co.) was entering the radio ratings business and would compete with Arbitron in the space, after winning contracts from both Cumulus Radio and Clear Channel Radio.

An Arbitron rep could not be immediately reached for comment.

5984: NYC 2 FCC—WTF PPM?

From Adweek.com…

NYC Council to FCC: Probe Arbitron

By Jackie Madrigal, Radio and Records

NEW YORK As expected, the New York City Council voted unanimously yesterday to call on the Federal Communications Commission to investigate the Arbitron portable people meter’s potential effects on the diversity of radio.

The Spanish Radio Association -- formed by Hispanic radio groups Univision Radio, Spanish Broadcasting System, Entravision Communications and Border Media Partners -- said the measure “should serve as a wake-up call for local governments and minority communities around the nation.”

In response to the NYC Council measure, the SRA issued the following statement:

“Arbitron’s flawed PPM ratings methodology will severely harm media diversity and ultimately limit the variety of voices and viewpoints on the country’s radio airwaves. It is a real threat not only to minority communities, but it could also have a devastating impact on local economies and needs to be taken seriously. The PPM ratings methodology should not be rolled out until all concerns are effectively addressed.

“Several members of the Spanish Radio Association have a long-standing presence in New York City, working tirelessly as a vibrant extension of the minority communities they serve, and as a strong part of the economic fabric of the communities they serve by creating jobs, paying taxes and supporting small and minority-owned businesses that rely on our airwaves to reach the community. Urban and ethnic stations not only provide vital news and information, they also provide a lifeline for their communities by helping to organize, promote and service a wide range of local civic campaigns and programs. The importance of Spanish-language and urban radio stations in New York and around the nation is immeasurable, and Arbitron’s unaccredited methodology produces unreliable and inaccurate measurement data that will destroy years of progress diversifying radio. Unfortunately, Arbitron is a monopoly, and even though the SRA has invested time and effort to help Arbitron develop a system that will provide reliable rating data, their lack of understanding of minority communities combined with their lack of commitment to these communities has resulted in our recommendations being ignored.

“We commend the New York City Council for working to protect and ensure ethnically and racially diverse radio programming as it continues to thrive in a city of more than 4.6 million minorities.”

Arbitron released the following statement in response to the resolution passed by the New York City Council:

“We are disappointed by the council’s failure to recognize: that broadcasters, agencies and advertisers in New York and other major markets have made it clear that PPM is critical if radio is to remain competitive in an increasingly challenging media marketplace; the quality of the PPM samples in terms of African-American, Hispanic and Spanish-dominant representation; the continuing dialogue Arbitron maintains with urban and Hispanic broadcasters and agencies; and the outreach we are making to highlight the value of African-American and Hispanic consumers in the PPM world.

“While Arbitron does not believe that the FCC has jurisdiction over our company, we are willing to continue our voluntary meetings with the FCC and other government officials. Arbitron’s role as an independent research company is to provide stations and advertisers with information that is based on the actual behavior of radio audiences. That is what PPM delivers today.”

5944: Old Standby Scores With New Media Twist.

AdAge.com presented a Special Report on the 2008 Hispanic Creative Ad Awards. The Best of Show went to Conill for its nontraditional media integration for Toyota. During the telecast of the Copa Libertadores soccer championship, Conill inserted 15-second videos that appeared to be part of the actual game. OK, it’s a breakthrough idea. At the same time, it doesn’t exactly support the contentions of former Association of Hispanic Advertising Agencies Chairman Carl Kravetz. When Tommy Thompson posted a perspective at The Big Tent that argued Hispanic ad agencies rely too much on things like soccer (or fútbol), Kravetz declared, “The only people ‘selling’ these insights [like fútbol] are pretenders to Hispanic marketing expertise.” Um, looks like Conill just scored a major “Goooooooal!”

5937: P.S., PPM.

From Adweek.com…

Arbitron Says Its Sample Is Solid

By Mike Boyle, Radio & Records

NEW YORK Despite mounting scrutiny over its portable people meter (PPM) service by the Federal Communications Commission and New York State attorney general Andrew Cuomo, among others, Arbitron kicked off Wednesday’s monthly PPM conference call with president of sales and marketing Pierre Bouvard saying, “We have another set of great news for you on the PPM sample.”

“It’s ironic when you read about the concerns of ethnic broadcasters. In actuality, we have a major overrepresentation problem. We have an overrepresentation of Spanish speakers in all our panels,” Bouvard said.

Some of that news culled from the August data across 10 PPM markets included:

-- An average 6+ Designated Delivery Index (DDI) of 106, with an average DDI in 18-54s of 102.

-- 18-34 DDI is at 93.

-- Arbitron also said it is meeting or exceeding 56 of 57 benchmarks for 18-34s across the 10 markets.

Addressing ethnic sampling, Arbitron svp, marketing Bill Rose pointed out that the black sample is averaging 109 percent of goal across Philadelphia, Houston, New York (nonembedded), Nassau-Suffolk, Middlesex, Los Angeles, Chicago and San Francisco. However, the same markets are bringing in an average DDI of 116 among Hispanics, with Spanish-dominant Hispanics at 133 and English-dominant Hispanics at 115.

For the second month, Arbitron’s PPM measured AM and FM streams and HD Radio subchannels. There are now 395 HD or Internet streams encoded and ready to report. To show up in the PPM data, a station must have a .495 weekly cume rating. Those stations making the grade in August were Clear Channel AC WLTW and CHR/top 40 WHTZ in New York and Clear Channel AC KOST and CBS Radio alternative KROQ in Los Angeles.

The next milestone for PPM will be Oct. 8, when eight new markets will become currency: New York, Nassau-Suffolk, Middlesex, Los Angeles, Riverside, Chicago, San Francisco and San Jose.

5921: FCC OK W/AHAA+PPMC.

From Adweek.com…

FCC to Address PPM Petition
The groups claim that Arbitron’s methodology does not adequately sample ethnic audiences

By Katy Bachman, Mediaweek

WASHINGTON The Federal Communications Commission may not have authority to investigate Arbitron, but it set comment dates to address the emergency petition filed by the PPM Coalition and the Association of Hispanic Advertising Agencies.

The two groups, made up of a number of Hispanic broadcasters, as well as urban broadcaster ICBC Broadcast Holdings and the National Association of Black Owned Broadcasters, filed a petition earlier this week requesting the FCC investigate the accuracy of Arbitron’s portable people meter technology.

In addition to its PPM markets in Houston and Philadelphia, Arbitron plans to commercialize eight markets Oct. 8, including New York, Chicago, Los Angeles and San Francisco.

The two petitioning groups claim that Arbitron’s PPM methodology does not adequately sample ethnic audiences and that subsequent ratings will seriously harm minority broadcasters.

“A Section 403 inquiry is the only way the commission can shed light on the methodological problems identified in early PPM markets and avert harm to minority broadcasters from a rollout of PPM with a flawed methodology that undercounts minority audiences,” the groups wrote in their petition.

The commission moved at lightning speed. Comments on the petition are due to the FCC by Sept. 24, and reply comments are due Oct. 6.

Arbitron continues to maintain the FCC, which regulates the nation’s airwaves, does not have jurisdiction over media research firms.

--with additional reporting by Julie Gidlow Radio and Records

5904: AHAA+PPMC C FCC 4 Arbitron BS.

From Adweek.com…

AHAA, Coalition File FCC Petition Over PPM
The groups disagree with Arbitron about the representation of the Hispanic audience sample

By Katy Bachman, Mediaweek

NEW YORK The Association of Hispanic Advertising Agencies and the PPM Coalition, a group of minority radio broadcasters, filed an emergency petition late Tuesday with the Federal Communications Commission requesting an investigation into the accuracy of Arbitron’s portable people meter methodology.

Arbitron has two portable people meter markets in Houston and Philadelphia and plans to commercialize the PPM service in eight markets by the end of the year. Among those markets: New York, Chicago and Los Angeles.

AHAA’s and the PPM Coalition’s decision to turn to the FCC, which regulates the airwaves, follows several months of meetings between Arbitron and minority broadcasters, who fear lower ratings and dwindling ad dollars. Last week, the Spanish Radio Association issued a statement expressing its disappointment with Arbitron’s PPM methodology.

While supporting electronic measurement, AHAA said it is in “sharp disagreement” with Arbitron about the representation of the Hispanic audience sample. “It could have a devastating impact on the industry, wiping out nearly half of the minority broadcasters,” the group said in a statement.

Arbitron countered that the PPM is more accurate than the diary and that the petitioning groups have failed to acknowledge improvements in the quality of Arbitron’s minority samples.

Arbitron said: “Our PPM samples are designed to effectively represent the diversity of the African-American and Spanish-language radio marketplace and of all the markets we measure in terms of age, sex, race, ethnicity and Spanish-language preference.”

Whether the FCC, which regulates the airwaves, has any jurisdiction may reduce the current controversy to a battle of press releases and statements.

“Arbitron does not believe that the FCC has jurisdiction over the company or its operations and assets and consequently lacks the authority to commence a Section 403 investigation. Nevertheless, we are committed to continue our voluntary meetings with the FCC,” Arbitron said.

Essay 4648

Laura Martinez presents a thoughtful response to the AHAA letter presented in Essay 4638. Click on the essay title above to visit The Big Tent at AdAge.com.

Essay 4638

Last August, Advertising Age launched The Big Tent, a blog featuring industry leaders’ perspectives on diversity in the advertising, marketing and media worlds. The viewpoints hit a range of topics, inspiring lively online chatter. Additionally, Ad Age has done a commendable job of spreading the efforts by running stuff in its weekly magazine—kudos to Ken Wheaton and his associates for their groundbreaking commitment.

Among the more spirited writers under The Big Tent is Laura Martinez, whose credits include founder and editor-in-chief for Marketing y Medios magazine, which was the premier source for news and opinions on Hispanic marketing before conglomerate VNU made the asinine decision to fold the publication. Then and now, Martinez has never hesitated to state her positions with insight, wit and the subtlety of a sledgehammer blow to the temple.

Martinez recently pondered why Hispanic TV programming isn’t as good as Hispanic advertising, prompting a flood of reactions. To read the original piece and comments, click on the essay title above.

The Martinez post irked the Association of Hispanic Advertising Agencies Board of Directors, who fired a nasty letter to Ad Age editor Scott Donaton. The letter appears below, followed by a MultiCultClassics response.

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Dear Scott:

Many of us on the AHAA Board of Directors and surely among our membership have read some of the opinions posted on Ad Age’s Big Tent blog with concern but have chosen not to comment until now. While clearly any blog represents the rightful opinions of individuals, we are deeply concerned over last week’s blog on Hispanic TV programming by Laura Martinez as Ms. Martinez is also an Ad Age reporter covering news and editorial material related to our Hispanic ad industry. In our view and considering the standards of ethical journalism, it is questionable whether Ms. Martinez can actually report objectively on Hispanic media matters when she has publicly stated such strong negative opinions about its content. This is especially more offensive when we consider that her opinions rely on two hours of morning daytime Hispanic TV viewing and web search. Hispanic audience’s preferences for Spanish language programming have been consistent over time and are reflected in the high ratings this programming enjoys as reported by AC Nielsen.

We will most certainly not argue the quality of the creative work produced by the AHAA agencies cited by Ms. Martinez but it should be understood that there are fundamental differences between the objectives and context of commercial advertising and content programming. The comparison made is superficial and shallow, clearly demonstrating a lack of understanding of our industry.

Media programming content is mostly based on successful formats and plots which are creatively adapted and sometimes replicated across many different parts of the world. This is how Reality shows have come to be a global phenomenon and how shows like “Deal or No Deal” (UK) and “El Gran Show de La Oca” (Spain) have been hugely successful in delivering media ratings and engaging consumers. Should we then argue that content programming in highly developed and sophisticated advertising and media markets like the UK and Spain are also garbage by the mere nature of their program format? Cinderella was written in 1697 by the Brothers Grimm and it is still the basic plot behind the “novella” format which by the way is also a globally successful format.

Television entertains and informs through stories, games, soft news and hard news, among other major formats. Advertising, on the other hand, aims to engage; persuade; sell; connect; create or support a brand image, among other communications criteria. Are the two comparable? I challenge, not.

In our view the unabashed public trashing of any sector of our industry is not conducive to the constructive understanding of our marketplace and the value it represents to marketers in the U.S. Statements like: “the target, apparently, are the legions of uneducated, Spanish dominant immigrants who presumably crossed the border by foot and now have to be punished with awful TV choices just because that is what they are used to” are irresponsible, feed misconceptions and lead to confusion about the viewing preferences among our Hispanic audiences. This rings especially true when the blogger expressing such opinion is also a news reporter on your publication.

Scott, in the spirit of AHAA’s partnership with Ad Age, we very respectfully offer the many members of our association as bonafide opinion leaders for your blog and urge you to consider publicizing their objective and professional opinions as a service to our industry and the advertising community in general.

Let us know your thoughts and we will quickly initiate a recruiting process among our membership.

Best regards.

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Um, somebody please forward the Spanish translation for “Chill out, dudes.” Pronto.

Way back in Essay Eleven (March 2005), MultiCultClassics observed the Hispanic marketing community was doing a far better job of promoting itself than other industry peers. Ironically, the Martinez-led Marketing y Medios was spotlighted as an example of how the segment hyped accomplishments in positive, professional and compelling styles.

So it’s disturbing to see the AHAA make editorial demands, as if hollering, “I don’t have to show you any stinkin’ press badges!”

First, the AHAA must review the objectives of The Big Tent. Ken Wheaton wrote, “In politics, the ‘big tent’ refers to a party in which diverse viewpoints are accepted, where the comfort of a unified ideology is exchanged for the clamor of many voices.” With all due respect to the AHAA, this ain’t your party—and Martinez is not your piñata.

The AHAA argues a decent case for conflicts of interest with Martinez’s roles of blogger and reporter. Too bad it doesn’t hold up in today’s media landscape, where the borders have been crossed more often than, well, the U.S. borders. Ad Age reporters routinely author editorials and even rip the 4A’s and events like Advertising Week. Rival Adweek editors and writers cover the daily press releases and simultaneously insult DraftFCB on the AdFreak blog. Scribes like Martinez have successfully played on both sides of the fence, and they’ll undoubtedly continue their schizophrenic ways.

On another tip, while the AHAA has done a great job of establishing its honor and integrity, it’s a stretch for any adpeople to pontificate on ethical standards of journalism. Especially when most Hispanic publications contain advertisements from bizarre psychics. And what’s with offering an “objective” replacement blogger?

AHAA members constantly tell clients the Hispanic consumer market is not monolithic or homogeneous. Yet they’re howling because someone has demonstrated the notion with unconventional thinking. You can’t have your torta and eat it too.

The AHAA ought to peruse the thread ignited by the Martinez post. The majority of minorities welcomed the discussion. If the AHAA had opposing sentiments, why not join the online conference? There are real, legitimate issues warranting open examination versus ignoring problems and sweeping dirty secrets under the proverbial rug ala industry peers (whose businesses, incidentally, are crumbling like stale tortilla chips).

This was an opportunity for AHAA members to be inclusive pioneers. Instead, their actions mirrored those of old school gringo advertising executives.