Although Hispanic audiences have higher HDTV adoption rates than non-Hispanic audiences, they’re under-served by HD advertising according to the Extreme Reach Q1 2012 HD Advertising Trends Report
NEEDHAM, Mass. – 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 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.
Hispanic Audiences Under-Served by HD Advertising in Q1012, HDAdTrends report:
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 company’s 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 company’s 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 industry’s 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 company’s 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 industry’s 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.
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