Hispanic's Bright Horizon - January 3, 2011

Radio Ink -- With every new year come projections and predictions. For the Hispanic segment of the radio industry , there’s particular interest in the 2010 census data, which will update counts for Hispanic and Latino populations. Davidson Media Group Chairman Sanjay Sanghoee and CEO Felix Perez believe those numbers, along with other key factors, point to a strong future for Hispanic radio. They shared some of their thoughts with me.

Can you give us an overview of where Hispanic radio is today?
Hispanic radio has outpaced the general market in terms of both recovery and growth
prospects. While there is still skepticism about radio overall, the growth characteristics of the Hispanic market are impressive. According to the Census Bureau, the Hispanic population contributed 39 percent of the nation’ s population growth from 2000 to 2010 and is expected to contribute 45 percent from 2010 to 2030 and 60 percent from 2030 to 2050. Not only has radio proved to be an unusually resilient medium, but it is thriving in the Hispanic demographic.

What factors are contributing to Hispanic radio’s success?
Hispanic people have a strong sense of local and community involvement, and of their Latin culture. They treasure their roots while striving to acculturate into mainstream America. That’ s great in itself, but from a marketing standpoint, it’ s also a boon to radio and to advertisers willing to learn. We get involved with the local community and address their needs and concerns while providing entertainment. This formula has been very successful and helped us weather recent storms better than larger Spanish-language groups, which may have to focus efforts elsewhere. Our focus on local communities has also helped us to build loyalty , which is rare in today’ s media world.

What challenges have you faced in the past few years?
Davidson Media Group was not immune to the downturn in the advertising market, declining valuations, and other broad economic challenges. We also confronted difficulty in receivables as advertisers and brokers struggled to pay us. Through careful revaluation and streamlining processes, we were able to turn the corner. We brought in new personnel to help us identify blind spots in our collections process, improve cash tracking, and institute new policies to reflect the times in which we live. We were able to turn the company around and put it on a stronger financial and operational footing. It was a team effort at all levels, from corporate to local stations.

How can Hispanic radio take better advantage of the Internet?
The primary reason radio groups face such a challenge in working with new media in the Hispanic space is a lack of understanding of how Hispanics think and work. Our plan is to take the model we have employed in radio and apply it online, starting from the ground up and serving our communities. The idea is not to reach people via one big one-size-fits-all laser , but with a hundred small lasers targeted specifically at local populations. Digital platforms are a vital tool in reaching Hispanics today. Internet usage is comparable among Hispanics and non-Hispanics, and mobile usage is actually higher among Hispanics. According to Marketwire:

• 54.2 percent of Hispanics visit Facebook, compared to 43 percent of non-Hispanics.
• Hulu is more popular among Hispanics (15.2 percent) than non-minorities (8 percent).
• Hispanics are more likely than any other group (51.2 percent) to do Internet research before a purchase.