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 companys 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 companys 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 industrys 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 companys 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 industrys 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.