General Mills has increased its advertising budget for Spanish-language ads by 300 percent.
Several other large companies are making similar moves. According to TNS Marketing, the ads are producing triple-digit sales gains.
Though Hispanics have seen higher unemployment rates in this economy, those who still have jobs are able to spend a higher proportion of their income. They are less likely to have credit-card debt or huge mortgages.
Typically, Hispanic consumers spend heavily on basic packaged goods and wireless phone services, but they spend a greater proportion of the money they have on consumer products than the rest of the population.
Much of the increased advertising spending goes into television ads on Hispanic networks. Viewership on Telemundo, Telefuture and Univision is growing. They target the 18-to-40-year-old age group.
One agent for State Farm Insurance notes that Spanish-speaking customers appreciate it when you speak to them in their own language. The company advertises on the Hispanic networks.
Home Depot, Kraft Foods and Wendy’s have ads on Hispanic networks.
Some small businesses are following suit with Spanish newspaper advertising and store-front signs that tell about special sales.
Source: Everything Small Business Journal (http://s.tt/12J9P)