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Geographic Targeting: Reaching the Multicultural Consumer Through Spot Cable Advertising

While commercial insertion on local cable has been available to advertisers for decades, it was not until cumulative network cable viewership began to compete with – and now exceed – broadcast numbers that spot cable became a top-tier advertising vehicle. General market spot cable advertising (cable advertising directed at a specific zone, DMA,or set of markets – which virtually eliminates waste – and purchased either in-market or via national rep) has become a staple in the industry, and continues to grow with anticipated billings in excess of $4 billion in 2004 – a far cry from its 1998 total of $2.2 billion (Kagan).

The 2000 census marked a milestone in the advertising industry. With little fanfare, Hispanic population growth far exceeded even the most liberal forecasters' expectations. This resulted in an immediate flurry of corporate attention focused on the Hispanic market and other multicultural categories as potential profit centers. Spanish broadcast billings skyrocketed. The African American category also grew substantially. BET is projected to reach $286 million in ad revenue this year (Kagan), which would be double its ad revenue from 2000. And TV One, a new cable network geared toward African Americans, is already in over five million homes.

From defining and placing neighborhood-specific creative for Hispanics of Puerto Rican heritage in New York City, to regionalizing a client sponsored Texas-wide Tejano music promotion, to the utilization of "Adcopy"© (which allows advertisers to segment the market by sub-DMA criteria – geographic, demographic, or psychographic – using aggregate data) in San Francisco for simultaneously presenting different Honda Motor Cars commercials to Asian Americans, African Americans, Hispanics, as well as to the general market, spot cable now plays a leadership role in the multicultural adve rtising industry.

Spot cable has emerged as one of the most effective, versatile and culturally sensitive advertising vehicles available for reaching multicultural consumers. The cable industry has embraced and improved technology, and now deploys advertising solutions far superior to over-the-air broadcast networks. Spot cable offers zoned commercial

distribution and the ability to customize creative messages into multiple languages and relevant specific versions simultaneously within a market.

Irrefutable research builds a strong case for the use of targeted cable as a multicultural adve rtising vehicle. Qualitative data ove rwhelmingly proves that multicultural cable homes consistently have higher incomes, more education, higher purchases, more credit, and overall as a group are more prolific consumers than their non-cable counterparts.

National Cable Communications (NCC) is a national spot rep that represents virtually every multicultural cable home in the nation. Using in-depth research, effective targeted ad platforms, and award-winning promotional campaigns, NCC enables advertisers to locate specific multicultural groups based on geography, language, lifestyle and

qualitative characteristics. NCC has the data and solutions for reaching this new and growing segment of consumers. Via NCC, spot cable becomes not only an effective solution for multicultural efforts,but also one that can create the results expected in today's business climate.

Cable's MSOs namely Comcast, Cox and Time Warner have also maximized their efforts in reaching the multicultural markets, spending a great deal of money on resources and capital in the process. Along with NCC, spot cable is better suited than any other advertising medium to effectively and efficiently reach these rapidly growing and increasingly influential consumer segments.

TOP TEN HISPANIC DMAS:
DMA Total TV HH Cable TV HH Cable TV HH% Hispanic TV HH Hispanic Cable TV HH Hispanic Cable TV HH%
Los Angeles 5,402,260 3,256,400 60.3% 1,691,950 774,600 45.8%
New York 7,376,330 5,975,780 81.0% 1,190,020 931,550 78.3%
Miami 1,501,740 1,113,000 73.7% 584,810 421,870 72.1%
Houston 1,848,770 1,036,750 56.1% 427,420 196,310 45.9%
Chicago 3,399,460 2,376,920 69.9% 420,090 241,170 57.4%
Dallas-Ft. Worth 2,255,970 1,062,630 47.1% 351,520 130,370 37.1%
San Francisco 2,440,920 1,854,840 76.0% 344,820 241,950 70.2%
San Antonio 736,240 476,240 64.7% 334,540 225,590 67.4%
Phoenix 1,561,760 924,220 59.2% 266,280 106,840 40.1%
Harlingen 297,390 133,710 45.0% 243,240 102,210 42.0%

TOP TEN AFRICAN-AMERICAN DMAS:
DMA Total TV HH Cable TV HH Cable TV HH% AA TV HH AA Cable TV HH AA Cable TV HH%
New York 7,376,330 5,975,780 81.0% 1,276,310 949,168 74.4%
Chicago 3,399,460 2,376,920 69.9% 593,360 417,213 70.3%
Washington D.C. 2,224,070 1,609,060 72.3% 531,040 384,167 72.3%
Atlanta 2,035,060 1,392,380 68.4% 513,900 327,025 63.6%
Philadelphia 2,874,330 2,398,200 83.4% 497,300 351,207 70.6%
Los Angeles 5,402,260 3,256,400 60.3% 476,990 281,261 59.0%
Detroit 1,923,230 1,347,040 70.0% 382,020 199,425 52.2%
Houston 1,848,770 1,036,750 56.1% 309,940 152,817 49.3%
Dallas 2,255,970 1,062,630 47.1% 296,850 141,098 47.5%
Baltimore 1,083,030 790,230 73.0% 277,380 189,508 68.3%

NCC MULTICULTURAL/EMERGING MARKETS CONTACT LIST:
New York
Deborah Cuffaro
VP News/Multicultural
405 Lexington Ave., 6th Floor
New York, NY 10174-0002
212-299-0765
[email protected]
Dallas
Robert P. Getz
Regional Accounts Manager
1505 LBJ Freeway, Ste. 555
Dallas, TX 75234
214-445-6119
[email protected]
Miami
Noeli Sanchez
Director of Sales
2000 Ponce De Leon Blvd., 6th Floor
Coral Gables, FL 33134
305-421-6314
[email protected]

Kim Fabian
Regional Accounts Manager
2000 Ponce De Leon Blvd., 6th Floor
Coral Gables, FL 33134
305-421-6314
[email protected]

Los Angeles
Randy Arichea
Director, Business Development
11150 Santa Monica Blvd, 9th Floor
Los Angeles, CA 90025
310-254-2236
[email protected]
Chicago
Dan Lawlor
Director, Business Development
444 N. Michigan Ave. Suite 1600
Chicago, IL 60611
312-279-9652
[email protected]

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Content © 2006 by Cabletelevision Advertising Bureau (www.onetvworld.org). Reprinted with Permission.