Your local Hispanic ad agency is changing…
You may not have noticed, but Hispanic advertising agencies are undergoing a quiet, but significant transformation.
As an example, just check out the new positioning and branding for one of the oldest Hispanic ad agencies in the industry – Broml
ey:
If you’ve read any of my articles the last few years, I’ve been making the case that the Hispanic ad business is heading for radical change – driven by the growth and mainstreaming of the Hispanic population (“50 million is too big to be a niche”) and competition by general market agencies. At last year’s AHAA (Association of Hispanic Advertising Agencies) conference, agency search consultant Robb High sounded this same warning and he went so far as to recommended that the agency members of AHAA strongly consider repositioning themselves as general market agencies with strong Hispanic capabilities.
It appears that some agencies are heeding his
warning.
The big question is whether clients – particularly the major brands that make the ultimate call on any “agency model” – will be willing to hire Hispanic agencies to handle their general market work.
There are examples of this happening recently. Acento (an LA-based Hispanic ad agency) was recently awarded “total market” AOR duties for regional health insurer Health Net. There are many other examples of local clients (in markets like LA, San Antonio and Miami) hiring Hispanic shops to handle all their marketing due to the sheer size and influence of the Hispanic population in those minority majority markets.
I’m curious to see if more Hispanic agencies will adopt the positioning and transformation evangelized by Mr. High and undertaken by Bromley. And if many Hispanic agencies do take this market positioning, will it serve to expand their business / clientele or ultimately hurt them by abandoning the one key differentiator they have relied on for success the last 40 years.
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Thank you for the post. In my view, ethnic agencies will continue to live on… and here’s why.. collaboration and partnership between niche market experts from partnering agencies is the best way to provide the best possible service to clients. They are more lean and adaptable to fast-changing markets. When partnering experts (whether in an specific vertical market, industry, or ethnicity) are fully “in the loop” under the same umbrella and strategic direction and clients are fully visible, the professionals are able to provide the most accurate and useful expertise to the project. There are no hidden agendas, each one does what they do best. The experts are capable of streamlining processes through clear and accurate communication with one project or campaign manager coordinating the strategic and creative expertise of the cross-functional teams.
Business is a mixture of war and sport.
If someone does not know that port the first is sailing, no wind is favorable.