AN INTERVIEW WITH:
Ed Gold
Advertising Director
State Farm Insurance

State Farm ranks as the 10th largest advertiser in Hispanic media spending in the US, according to Kantar Media and Advertising Age’s Hispanic Fact Pack 2011. Ed Gold oversees State Farm’s media and sponsorship strategy, planning and execution across all the company’s product lines and customer segments. He spoke with eMarketer’s Tobi Elkin about State Farm’s strategy for targeting Hispanic consumers.

eMarketer: When targeting Hispanics, are you focused more on traditional segmentation models or on psychographic/behavioral segmentations?

Ed Gold: We’re looking at both demographic and psychographic behaviors. We definitely look at age, ethnicity and gender, but we are also looking at psychographic modeling.

eMarketer: What are some of the psychographic segments you’re focused on?

Gold: They are proprietary, so I can’t tell you the specific segments we’re looking at. What I will say is that we’re looking at things in multiple ways when it comes to the Hispanic market. There is the non-acculturated segment, which is primarily a Spanish-speaking audience. And then there’s the more acculturated audience, which follows what the general market is doing.
From a demographic and psychographic point of view, we look at young adults ages 18 to 29 and think about them more from the standpoint of unmarried, on their own for the first time and figuring out their lives.

eMarketer: Are young Hispanic adults marketed to differently than young adults in the general market?

Gold: Outside of using MTV, Tr3s and a few other Hispanic networks, they are not marketed to all that differently, because we’re not dealing with a language barrier. Certainly there may be some cultural cues that we want to put into our messaging, but Hispanic young adults are very much part of the overall young adult audience.

eMarketer: You mentioned looking at acculturated vs. non-acculturated Hispanic consumers. How important is that in your targeting and messaging?

Gold: We want to do business with both populations. Messaging is going to be done specifically in Spanish to the non-acculturated group and bilinguals. We also look at it from the standpoint of having over 18,000 State Farm agents across the US and Canada. Over 4,000 of our offices are Spanish-speaking offices where either the agent or their personnel speak Spanish. So we are able to do business with people the way they want to do business, in their language. It’s part of our overall business philosophy.
eMarketer: Do you have any specific examples of campaigns that successfully targeted Hispanic consumers?

Gold: This past April marked the fourth year of our sponsorship of the Latin Billboard Awards. Obviously, music is a huge passion for the young adult Hispanic market. We also sponsored concerts by Latin Billboard artists in a number of key Hispanic markets and did a music-teacher-for-a-day program in high schools. In conjunction with that, we also launched our State Farm Latino Facebook page. Those local market efforts are another way that we are trying to make State Farm a very relevant brand to the Hispanic market.

eMarketer: What has State Farm done with Facebook where Hispanic consumers are concerned?

Gold: Our Facebook page is facebook.com/StateFarmLatino. If you click on the Juega e Ilumina tab, you get more information about our CONCACAF Gold Cup Sponsorship, for the Confederation of North, Central American and Caribbean Association Football. Essentially, people could play a soccer game either online, on an iPhone app or at the Gold Cup events where we were present. For every 15 minutes of play, a soccer ball was sent to a CONCACAF country in need and consumers had the opportunity to vote for which country they were sent to.

Knowing that the Hispanic community does a lot to help support their families in their home countries, we thought this would be a great way to give them another opportunity to help while reaching the demographic through soccer—one of their passion points.

eMarketer: What made you decide to create a specifically Hispanic Facebook page?

Gold: Our idea was to be one of the first out there with an in-language Hispanic Facebook page catering to that audience. We thought if we build it, they will come—and they are coming.

eMarketer: What kind of offers do Hispanic consumers respond to?

Gold: We do very well with the Hispanic market because we have local agents. The Hispanic market wants to do business in their community and with somebody that they know and can trust. You may or may not pay a little bit more for State Farm than for some of the other competitors but we’ve seen Hispanic consumers understanding the value of having a State Farm agent right down the street.

The complete interview is available to eMarketer Total Access clients. Learn more.

AN INTERVIEW WITH:
Tania Cameron
Senior Manager CRM–Hispanic Segment
Kraft Foods

Tania Cameron leads the planning and development for consumer relationship marketing in Kraft Foods’ Hispanic segment, including the Comida y Familia CRM program and Comida Kraft, an online community and its companion magazine, Comida y Familia. Both efforts are dedicated to connecting with US Latina moms in relevant and meaningful ways. Cameron spoke with eMarketer’s Tobi Elkin about the Comida y Familia program, the company’s primary tool for cultivating loyalty among Latinas.

eMarketer: What is the goal of Comida Kraft?

Tania Cameron: Our objective is to connect with Latina consumers in ways that are meaningful and relevant for them. The Comida y Familia program is a 360-degree platform that has many touchpoints. We conduct ethnographies, quantitative and qualitative research, and all the research that we can get to understand what this consumer needs and how we can help her now that she is living here in the US.

We focus on moms ages 18 to 49, the same as the general market. But these are moms who prefer to receive content in Spanish. The Latin consumer here in the US is more inclined to engage with programs like Comida Kraft, because it’s in their own language, and because they help her to connect with other moms like her.

eMarketer: How do you approach your Latina target for demographic/psychographic segmentation models?

Cameron: We use psychographic segmentation. Everything starts with the consumer. One of the insights we have found is that the Latin mom is proud of her heritage. While living here in the US, she’s always looking for ways to share her heritage with friends, family and, of course, her children. She wants to pass on this heritage.

Food is one of many ways for the Latina mom to pass on her traditions. For her, food means love, not merely fuel. We are tapping into this very important and emotional insight to develop content.

We know that Latin moms like to cook, but obviously there are different degrees. Not all moms love to do everything, right? We are aware of these differences and we take them into consideration when developing content.

Latin moms vs. general market moms are more inclined to use fresh ingredients. We develop our recipes with that in mind. But at the same time, they can’t cook the same way they were cooking in their home country, so they need some convenient, quick food solutions. That’s where we come into play.

eMarketer: Is acculturation an important issue in your work?

Cameron: Acculturation involves many things. Obviously one of the factors is language, and how proficient they are in English or in Spanish. But there are other factors. There could be one person who has been here for 10 or 20 years, but still wants to receive content in Spanish.

After a period of time, you can be in a different category of acculturation. But that doesn’t apply perfectly for us. Another thing that we consider is the country of origin. Obviously this is the US Latin market, but it’s composed of many different subsegments or countries of origin. Mexicans comprise the largest population in terms of country of origin, but we also have Puerto Ricans, Cubans, Venezuelans, Ecuadorans, you name it.

eMarketer: Do you have an example of a campaign that demonstrates Latinas’ involvement with social media?

Cameron: We have partnered with Chef Alfredo Oropeza, who is the most recognized celebrity chef in Mexico, on the Share Your Latin Flavor program to engage Latina moms. This initiative encourages Latina moms to share recipes and tips related to the cooking of their cultures. The program leverages all Comida Kraft media assets, including our website, Facebook page, mobile channel, PR, word-of-mouth marketing and our Comida y Familia magazine. Comida-focused advertising ran on Hispanic US networks.

With the Share Your Latin Flavor program, we wanted to show Latin moms how simple it is to continue to share their Latin flavor through food while living in the US. So it ties back to the insight that these moms want to pass along their heritage. Through this program, Chef Oropeza and Comida Kraft offer 10 new recipes and videos each month from June through November.

The themes include Everyday Latin Flavor, Best Latin Grilling recipes and Latin Dishes Your Kids Will Love. We put this content on Comida Kraft, on Facebook, YouTube and the mobile site. Knowing that Hispanic moms are very active in mobile, we also designed a mobile promotion that gives them free, exclusive access to more content from Chef Oropeza, if they subscribe to Kraft recipes by email and the Kraft Mobile Club.

Since May 23, when we launched the campaign, mobile site traffic has increased 135% and our Facebook fan base has nearly doubled. We will have two more live video chats with Chef Oropeza on the Comida Kraft Facebook page by the end of the year, in addition to the one we did in June. We did an hour, and for next time, we’re going to do two hours.

eMarketer: What are some best practices in targeting Hispanic moms?

Cameron: The best practice is really to follow the trends. Be open to test, learn and, later, to adjust. Also, communicate your results internally so everyone in the company can learn from them and not continue to test the same thing again and again. Use those learnings, and really listen to the consumer. We always ask for consumer feedback. That really helps us to become a better company and offer better content.

The complete interview is available to eMarketer Total Access clients. Learn more.

AN INTERVIEW WITH :
Tiffany Tan
Senior Group Manager, Consumer and Shopper Promotions
Clorox Co.

Tiffany Tan is responsible for directing consumer and shopper promotions for Clorox’s laundry and homecare brands, including its namesake brand, Clorox Liquid Bleach. She spoke with eMarketer’s Tobi Elkin about the benefits of mobile coupons and how they fit into Clorox’s understanding of the consumer’s path to purchase.

eMarketer: How is Clorox using mobile coupons and what role do they play?

Tiffany Tan: We see really great potential in mobile couponing. In fact, we’re looking at mobile couponing as part of a broader step to examine how we talk to shoppers in the store. There’s a revolution in the path to purchase and we recognize that consumers pre-shop before they go into the store. So we want to talk to our consumers before they go to the store and also when they are in the store. We’re looking at mobile as part of this new and exciting mix of tactics that allows us to continue that dialogue we started with her outside the store, when she’s actually standing in the aisle.

eMarketer: What do you envision for mobile couponing?

Tan: Mobile couponing is being driven by the incredible growth in mobile overall. Our mom target, in particular, is increasingly using her mobile device. With over half of the population on smartphones by the end of this year, we want to make sure that we are everywhere she is. And that means talking to her through vehicles like mobile advertising, mobile couponing or other promotions and providing her with mobile content she can use to help formulate her shopping decisions. That may include things like branded apps or making sure our websites are mobilized so they render correctly on her phone.

eMarketer: From a brand marketer’s perspective, what are the drivers of mobile coupons?

Tan: It really has to do with the growth of mobile overall, and being able to be wherever our customer is. Mobile coupons offer a convenience factor—there’s nothing to sort or clip, and they’re there when our customers want them. We also want to attract a younger, more affluent target consumer.

eMarketer: What are the main challenges in offering mobile coupons?

Tan: From the CPG point of view, probably the biggest hurdle for mobile couponing is the limited distribution of what I’ll call a truly elegant solution. When we think of mobile coupons, we all envision something that you can just hold up to your mobile phone and scan for an instant discount at checkout.

But the reality is that most retailers where CPG products are sold don’t have a universal coupon reader system at the point of sale. That fact affects how elegantly our coupons can get implemented. As technology advances we will get there, but right now for CPG, mobile couponing probably isn’t what everyone imagines.

eMarketer: What would you like to be doing with mobile coupons?

Tan: Targetability based on prior purchase would certainly assist us as brand marketers. We’re talking about nirvana here. We would love to see a mobile interface that occurs at the shelf, because right now, when our consumer has a mobile coupon, it kind of fits in her mobile coupon wallet and it doesn’t necessarily show up until she’s at the checkout.

In an ideal world, we would like it to show up at the shelf—a consumer walks into the store, goes to the shelf and sees Clorox products. She checks out all the other brands that are available. She looks at her coupons and figures out what’s the best value. If we’re able to track it to that level, or if we can kind of crack the code on that, then we definitely will be able to tie the impact of coupons more tightly to overall lift and ROI for Clorox. That is nirvana.

AN INTERVIEW WITH :
Linda Gangeri
Manager of National Advertising
Volvo Cars

In her role at Volvo, Linda Gangeri manages integrated marketing programs in both traditional and emerging media channels. Prior to spearheading advertising strategies, Gangeri ran e-Business at Volvo. She spoke with eMarketer’s Lauren McKay about one of Volvo’s largest targets, Generation X, and how the automaker uses transparency and value-oriented campaigns to reach 30-to-46-year-old consumers.

eMarketer: Why is Generation X an important target demographic for Volvo?

Linda Gangeri: Gen X is a huge opportunity for us as and constitutes a large percentage of our overall buyer demographic. Depending on the vehicle, our age ranges span anywhere from 25 to 54, and our average customer age is about 45. Because Generation X is an incredibly important generation within our model mix, we’re continually learning, growing and optimizing to reach that demographic.

eMarketer: What psychographic details about Gen X consumers make them a good target for Volvo?

Gangeri: Our demographic and psychographic audience tend to be highly educated and hold more senior positions within their companies. They are the generation that launched the era of entrepreneurship and achieved success, thanks in large part to technology. One of the pillars that the Volvo brand stands on is innovative technology—safety innovation is a big part of that. This consumer group tends to have a relatively high household income so they can afford Volvo cars. However, they examine the products that they buy more from a value and quality standpoint, as opposed to merely following the latest trend. They’re not driven by hype or flashiness, and they are skeptical of advertising tactics that are used to manipulate buyer behavior. These consumers can be both cynical and sensible in their purchase behavior, and they are willing to pay a premium for the products that they do perceive as having value.

As all of this emerging technology and media comes into play, it’s important to keep in mind that Gen Xers were the first mass-media generation. They grew up with the TV on, and witnessed the emergence of the internet.

eMarketer: What messages and communication styles are most effective in reaching Generation X?

Gangeri: Messages that are genuine and relevant. We try to be transparent in the way we communicate to Generation X and that’s why this whole word-of-mouth approach through social media is valuable. You can make any claim you want with the Gen X, but you have to be completely genuine, relevant and transparent, because they will check it out—and if it’s not true they will let you and everyone else know. So, it’s about staying away from gimmicks, hype and stereotyping and, instead, remaining relevant and straightforward. It’s not so much the channel but it’s the message within the channel. Volvo has pursued a very cross-channel, multichannel-integrated approach. Within the digital space is where we really have an opportunity to reach Generation X.

eMarketer: Can you provide an example of a digital campaign geared to Generation X?

Gangeri: In the fourth quarter of 2010 we launched our new sports sedan, the Volvo S60. We continued that launch through a multichannel, integrated approach, and delved into some mobile efforts. In conjunction with the S60 launch, we ran a value-add campaign with Major League Baseball. We chose MLB because the S60 is one of the more male-focused vehicles in our lineup. MLB has an At Bat iPad app that gives baseball fans the ability to watch every single Major League Baseball game on their iPads. The paid app is on the pricier side—$120 for the season.

As an MLB partner, we created a branded Volvo wrapper for the At Bat app. We felt that if we were going to sponsor the app, we needed to create a value proposition. So we gave the first month of the application away for free. We weren’t just throwing marketing messages at the app users; we were giving them something back. And then, if they were interested in learning more about Volvo, they had the opportunity to dig deeper. We also ran media against that campaign within appropriate online properties.

eMarketer: In what ways do you separately target Gen X in digital channels?

Gangeri: We look at each property and their main demographics and psychographics then place messaging for each product in the lineup within what we think are the best properties. So, for Gen Xers, we would focus on promoting our S60, our S40 and XC60 vehicles on their favorite sites.

eMarketer: Are you considering any types of new media to target Generation X?

Gangeri: We’re trying to learn about all of the emerging spaces, but right now we are mostly focusing on mobile, social, gaming and virtual goods. The whole online gaming space is so interesting and taps into this age group more so than not. We have a test, learn and optimize philosophy that has served us well. Especially when you get into that 30-to-45 age group, there are many tactics to consider. Mobile is huge; social is huge. We just launched a new Volvo social media team that is tapping into that psyche of Gen X.

The complete interview is available to eMarketer Total Access clients. To learn more, click here.

TV is a focus in many of eMarketer’s recent reports. But that’s not because digital is any less important. Indeed, digital is more important than ever. With a growth rate of 20.2% this year to $31.3 billion in spending, online advertising will ascend soon to the second-most important ad format behind television. But, since TV is not about to disappear, and digital is growing, brands have to adapt to seeing the two in an integrated whole.

Among the factors behind digital ad spending’s growth is the rise of online video, which “gives brand marketers the familiar messaging medium of TV combined with online’s targeting,” writes eMarketer principal analyst David Hallerman in his new benchmark report, “US Online Ad Spending: The Floodgates Are Open.”

With the ascension of video and the merging of online video and TV, consumers are cutting their pay-TV cords because they can get all their favorite programming online, right? Not exactly, writes senior analyst Lisa Phillips in “TV Video Viewing: Beyond Cord-Cutters.” Her analysis points to one conclusion: The pending death of pay-TV is greatly exaggerated.

In “Socializing the TV Experience,” principal analyst Debra Aho Williamson looks at the convergence of social media and TV, as networks and cable TV players tap online social networking as a means to maintain or build relationships with viewers.

Here are eMarketer’s top picks from June 2011:

REPORT: US Online Ad Spending: The Floodgates Are Open
In eMarketer’s latest benchmark report on the current state and future of online ad spending, principal analyst David Hallerman states that digital ad spending is at an “inflection point” compared with the last three years—and the next few years to come. Shooting upwards 20% this year to $31.3 billion, online advertising’s place in the major media mix is now complete. Learn more about this report.

CHART: US Online Video Ad Spending as a Percent of Total Online and TV Ad Spending
While video grows faster than any other online format, its share of the online ad market will remain small—just 6.9% in 2011. Online video ad spending will reach only 3.6% of TV’s ad spending total this year. Available only for Total Access subscribers.

WEBINAR: Secrets to Online Marketing Success
Now that we are in an age of customer-centric advertising where old, disruptive ad models no longer work, how can marketers capture consumers’ attention and keep it? This webinar takes the most important concepts from my new book, “Digital Impact: The Two Secrets to Online Marketing Success,” and gives you a blueprint for creating content that is truly engaging, as well as explains the seven most important digital marketing metrics. View webinar.

REPORT: TV Video Viewing: Beyond Cord-Cutters
There is still a long way to go before marketers can easily buy spots against premium TV content like “30 Rock” on the internet. “The online video industry has not yet developed its own lexicon, much less standardized metadata and taxonomies,” writes senior analyst Lisa Phillips. But online TV and movies are where viewers are steadily moving—particularly young adults—so marketers have to follow. Learn more about this report.

CHART: US Households that Subscribe to High-Speed Internet or Pay-TV
The share of US households with cable or satellite services has remained fairly steady the last few years, despite cable companies reporting subscriber declines in 2010. Experian Simmons data shows 85% of US households had some type of pay-TV service through early 2011. Available only for Total Access subscribers.

INTERVIEW: Using TV Star Tweets to Engage Viewers
CBS, long known for its older audience, is using social media to bring younger fans together with talent on top-rated shows such as “NCIS,” “Survivor” and “The Mentalist.” In April, the network hosted “Tweet Week,” which featured tweets from the stars of such programs, and won CBS 50,000 more Twitter followers. What did CBS learn? Available only for Total Access subscribers.

REPORT: Socializing the TV Experience
As social media becomes more entrenched in people’s lives, TV viewers are more frequently tweeting, posting on Facebook or texting friends about TV programs. TV show fan pages give these viewers dedicated places to discuss, comment and share whenever they feel like it. “The result is that, more and more, the success of a TV show depends not only on its ratings but also its online buzz,” writes Debra Aho Williamson. Learn more about this report.

SPOTLIGHT: Toyota Encourages Drivers to ‘Friend’ Their Car
The new social network for Toyota owners, Toyota Friend, will enable the brand’s drivers to see information related to ownership and maintenance as well as communicate with their car, other drivers and dealers using status updates and short messages similar to tweets. The app will send updates to drivers about issues like low tire pressure or notify a dealer that a car is coming in for service. Available only for Total Access subscribers.

INTERVIEW: eBay Auto Buyers Take App for a Spin
In the US last year, eBay sold $120 million worth of cars and $60 million worth of parts through its core eBay mobile app. In May 2011, eBay introduced a dedicated eBay Motors iPhone app. Because of the down economy, auto buyers are willing to shop for a car beyond their local area. eBay’s app makes that easier. “People are more willing to spend a little bit of time to make sure their pennies are spent wisely,” says Steve Yankovich, VP of Mobile at eBay. “And they are discovering it’s not that hard to find and purchase a vehicle and have it shipped.” Read interview.

ARTICLE: Tablet Audience Leans Young, Wealthy
Tablet growth is exploding. Among the groups buying them fastest are young adults ages 18 to 29 and those relatively more well-to-do. The percentage of consumers with the highest incomes ($75,000-plus) who have adopted tablets nearly doubled from 9% in November 2010 to 17% in May 2011. Read article.