HD Advertising for Hispanic TV Audiences Lags Behind National Averages

Despite strong high-definition TV adoption by Hispanic audiences,

Hispanic broadcast stations and networks lag behind non-Hispanic

broadcast TV outlets in HD adoption and viewers of Hispanic television,

experience the lowest rate of HD advertising among all TV audiences,

according to the Q1 2012 HD Advertising Trends Report released today by

Extreme Reach, a leading provider of HD video advertising distribution

services. New to the Extreme Reach report, now in its 7th quarterly

edition, is an analysis of the opportunity presented by targeting large,

growing and HD-oriented Hispanic audiences, to whom 60% fewer HD

advertisements were delivered via Hispanic TV media than across

non-Hispanic TV media.

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The Consumer Electronics Association reports that a larger proportion of

Hispanic audiences (78%) own HDTVs compared to non-Hispanic audiences

(68%), but Hispanic audiences appear to be significantly under-served by

both advertisers and broadcasters when it comes to HD advertising. Just

7% of television commercials delivered to local Hispanic television

outlets were in HD, compared with 18% for all local broadcast in the

first quarter of 2012, according to the Extreme Reach report. Hispanic

stations trailed all local TV stations with a 39% HD adoption rate

compared with a national average of 54% for local broadcast. However,

the gap represents clear opportunities for advertisers and agencies to

reach Hispanic audiences with HD advertising despite these

lower-than-average figures.

“By distributing HD advertising to Hispanic broadcasters in markets

where there is high HD adoption, advertisers may be able to make a

difference with sizable, yet under-served Hispanic audiences, given the

effectiveness of the HD format in building brands,” said John Roland,

CEO of Extreme Reach. He noted that a recent report by Nielsen projected

that Hispanic audiences will represent the majority of population growth

over the next five years, and will magnify their buying power by 50% to

$1.5 trillion in 2015.

Going Local to Close the Opportunity Gap

According to the Extreme Reach report, among the top five U.S. markets

where Hispanic audiences are concentrated (based on TV B. household

data), Houston has the largest gap between HD adoption by local Hispanic

TV destinations (33%) and HD adoption by all other local broadcasters

(60%). HD adoption by local Hispanic TV stations in Los Angles (50%),

New York (50%), Miami-Ft. Lauderdale (50%) and Dallas (67%) are inline

with the national average for HD adoption by local broadcasters (54%).

These five cities account for 37% of all U.S. Hispanic TV households.

Also Included in the Report: The Quarterly HD Advertising Indices

The Extreme Reach Q1 HD Advertising Trends Report also included the two

standard quarterly benchmarks for HD television advertising: The HD Ad

Distribution Index (22%) and the HD Media Adoption Index (67%). The

Distribution Index is the percentage of all television commercials

distributed in HD (vs. SD) during the quarter. The Adoption Index

represents the percentage of television media outlets (including

broadcast and cable, local and network) that present content in high

definition.

Methodology

Extreme Reach delivers advertising content to every Hispanic TV station

and network across North America. Nearly every Hispanic broadcast media

outlet is digitally connected to the company’s expansive distribution

network, so HD adoption and distribution data is updated comprehensively

each day. A variety of advertising data is automatically collected

through the everyday advertising activities of the company’s advertising

clients and media affiliates. This report analyzes a portion of that

data to reveal detailed trends and insights related to HD TV

advertising. For this study, the Extreme Reach Research Group analyzed

and referenced data from a sample of 1,750 active television advertisers

across 28 verticals, 575 commercial production studios, and every

commercial television and cable broadcast outlet in the United States

and Canada, including all major broadcast networks. The analysis draws

from a sample of 225,000 SD and HD commercial deliveries completed over

the three-month period between January 1 and March 31, 2012. Areas of

analysis include advertiser HD distribution and broadcaster HD adoption.

Sections of this report call out potential correlations, based on

additional Extreme Reach data and third-party research.

About the HD Advertising Trends Report and the HD Advertising Indices

The HD Advertising Trends Report is a quarterly report produced by the

Extreme Reach Research Group, aimed at providing advertisers and media

companies with the most up-to-date and relevant HD advertising insights.

The Extreme Reach Research Group collects data through the everyday

advertising activities of Extreme Reach clients and affiliates,

analyzing data from client brands, agencies and TV media. The Extreme

Reach HD advertising indices provide the industry’s quarterly metrics

for HD adoption: The HD Distribution Index and the HD Media Index. Visit

the HD trends page on the Extreme Reach website for the Q1 report and

other HD Advertising Trends Reports from previous quarters: extremereach.com/hd-trends.

About Extreme Reach

Extreme Reach is the leading provider of video advertising distribution,

ad serving and talent & rights management solutions that span all video

media. The company’s network seamlessly connects over 2,000 advertisers

and agencies with more than 1,000 commercial production houses and

18,000 media destinations across the U.S. and Canada, including every

major broadcast network and all of the top websites. The Extreme Reach

video platform simplifies the execution of ad campaigns across video

media and is the industry’s only platform that integrates both TV and

online video advertising. The company is headquartered in Needham,

Mass., with offices in New York, Chicago, Burbank, Detroit, Dallas,

Seattle and Louisville.

For more information and a copy of the report, visit the Extreme Reach

website: extremereach.com.