top of page

Study: ROAS For Investing In Hispanic-Targeted And Owned Radio Pays Off For Advertisers.

Advertisers keen on reaching the expanding Hispanic-American audience are benefitting from the reach of radio, specifically stations that are Hispanic-owned. According to a report commissioned by Spanish Broadcasting System in collaboration with Nielsen, brands that consistently advertised on Hispanic-owned and Hispanic-targeted radio stations between 2017-2021 showed an average return on advertising spend (ROAS) that was 12% higher than brands that did not advertise.

The Hispanic/Latino population in the U.S. continues to grow in size, influence, cultural impact, and purchasing power. Latino collective buying power rose by nearly 90% between 2010 and 2020 and is currently estimated at almost $2 trillion and is projected to rise to $2.6 trillion in the next few years.

The study reveals that Latinos have higher expectations of brands who want to engage with the Latino community, including intentional investment in Latino-owned media companies. According to Nielsen, Hispanics are not only more likely to seek out culturally relevant content, but they are 24% more likely to seek out diverse-owned media outlets.

"Despite the advantages of investing in media publishers that sit at the intersection of diverse ownership and diverse-targeted content, Nielsen's Ad Intel data over a five-year period reveals that advertising investments are not keeping up with the significant growth of the Latino community,” says a release issued by SBS on the findings. “Of the billions spent on local radio on a yearly basis, less than 10% is going to Hispanic-targeted stations, even though Hispanics now make up 20% of our population, have $2 trillion in spending power, and use radio more than any other group."

Broadcast radio leads all other platforms in reaching Latino audiences on a monthly basis.

Between 2017 and 2022, 98% of U.S. Hispanics were tuning in to radio each month while over the same period, the reach of live and time-shifted TV declined from 97% to 84% among Hispanic viewers. Smartphone and TV-connected device engagement grew as streaming, digital and mobile consumption surged. But through this all, audio—and specifically radio—remained a top way to reach Hispanic consumers, despite receiving a smaller share of the total ad dollars, the report states.

"Investing in minority-owned companies is only part of the equation," SBS President/COO Albert Rodriguez remarked. "Amplified ROI comes from authentic connections with the Latino audience—via media publishers who sit at the intersection of Hispanic ownership, culturally-relevant Hispanic content, and scale. SBS sits at that very intersection being the largest diverse-owned, operated and National Minority Supplier Development Council (NMSDC) certified media company in the U.S. We are wholly committed to the Hispanic community which we serve and since our founding nearly four decades ago, our sole purpose has been to provide Latinos with premium, trusted content.”

Nielsen Senior VP, Diverse Insights and Initiatives Stacie de Armas added, "Latinos value authenticity more than ever. Brands that advertise in content that connects with Latino culture and on platforms owned by Latinos are seeing greater success. Nielsen is proud to collaborate with SBS on this important work, that proves the value of that investment."

13 views0 comments


bottom of page