Gumboots said:
David, I take exception with your comment that the majority of local business are owned by Hispanics.
No, I said "small businesses" such as the kind that KEDA would pick up. Hispanics, today, in all the Southwest overindex on small business ownership.
Aside from a few high profile Hispanic clients and ad agencies, most of the local owners of banks, auto dealers, nightlcubs, and retailers are not Hispanic.
I think you need to check again in the area of smaller retail and service companies, ranging from car dealers to things like pool companies and A/C installers.
But it looks great on paper: Change a signal to Spanish Hits in a heavily Hispanic market and watch the ratings and revenues soar!
In the Southwest, CCU only has one Spanish hits station. Preciosa is classic hits, not CHR.
Strong and reliable ratings on a Spanish station are elusive.
Strong ratings for Spanish language stations are no more elusive than for English language stations.
It may sound nit-picky, but Spanish stations are all in Spain... we have Spanish language stations in the US.
And unlike general market, Spanish ratings do not equal revenue.
Yes, they do. The ratio is a little lower still in some markets, but Spanish language stations are now closing in on parity ratings / revenue shares all over... in some markets, they exceed them... like Houston and Miami.
Even when a local Spanish station is succeessful, local buyers avoid it, because rightly or wrongly they perceive the listeners as not affluent.
Then why are the #1 and #7 stations in billing, KXTN and KROM, doing so well?
While some national and regional accounts have Hispanic budgets, most local and agency accounts are planned and bought by Anglo men and women. In San Antonio, buyers with Hispanic surnames are usually English dominant and listen to stations like Y100 and KXXM. And General Market is where most of their money is spent.
San Antonio Hispanics are only around 25% Spanish dominant. And the Spanish language stations are the only way to reach them... although they are a smaller part of the market. Nearly all national accounts are using Spanish language stations now which is why there is double digit growth in Spanish language electronic media, and negative growth in all other
Bottom line: If you change a station like KZEP to La Preciosa you lose the brand equity that has been built for 20 years. And for what? Another Spansih station that may not register in ratings or revenue.
The old Recuerdo (now 95 X) and KROM and KXTN all outbilled KZEP last year. I do not get your point.
If they switch, I give them a 4.5 in 12+ and a 5.5 in 25-54. A panda could sell that.