News Column

2002 Media Markets Report

December 2002, HISPANIC BUSINESS Magazine

Hispanic advertising expenditures rebounded sharply this year after tapering off in 2001. Ad spending in the Hispanic market is expected to grow about 11 percent, compared to just 4 percent last year.

Hispanic ad expenditures are expected to reach $2.46 billion this year, up from $2.22 billion in 2001. Procter & Gamble is again the market’s top spender. The consumer products giant is projected to spend almost $70 million on Hispanic advertising.

View our Top 25 Hispanic Ad Agencies

| 2002 Internet Revenue Estimates | Purchasing Power | Top 60 Advertisers in the Hispanic Market | Top 10 Brand Marketers in the Hispanic Market | Hispanic Market Advertising Expenditures | Leading Hispanic DMAs |



2002 Internet Revenue Estimates
Company 2002 2001 % Change
 
TerraLycos $419.42 $373.83 12.20%
Starmedia $46.65 $67.30 –30.68%
YupiMSN $12.61 $9.48 33.02%
Univision $14.68 $4.78 207.11%
 
Total $493.36 $455.39 8.34%
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Purchasing Power
Purchasing Power: the correct number is $540 billion
Despite an almost nonexistent economic recovery and the shift in federal spending to defense programs, Hispanic purchasing power is seeing strong growth this year. HispanTelligence®, the research arm of Hispanic Business Inc., estimates that U.S. Hispanic purchasing power will grow 8.1 percent to $540 billion in 2002. This robust increase is surprising, given this year’s relatively high unemployment rates. The strong growth is likely attributable to continued increases in the U.S. Hispanic population and mean Hispanic household income. The latter has grown 4.7 percent in the past year alone. Other contributing factors may include the tax relief package passed by Congress last year, rising educational levels, and the trend toward increasing entrepreneurship among Hispanics.

Hispanic Business magazine’s purchasing power estimates are based in part on disposable personal income as determined by the Bureau of Economic Analysis. Disposable income consists of after-tax income available for spending or saving. Estimates also take into account an income disparity factor (IDF) for Hispanics and the general population and the undercount of the Hispanic population as reported by the U.S. Census Bureau.

The University of Georgia’s Selig Center, Strategy Research, and Santiago & Valdez Solutions also have prepared Hispanic purchasing power estimates ranging from $400 billion to more than $600 billion. Variations in purchasing power estimates are due to the use of different income figures, alternative IDF calculation methods, and disparate forecasts of these factors for 2002. Some estimates also may not take into account the Census undercount of the U.S. Hispanic population.
 
U.S. HISPANIC PURCHASING POWER
Year Population (millions) Purchasing Power (billions)
1999 31.3 $446.9
2000 35.3 $474.8
2001 36.3 $499.7
2002 38.0 $540.0
Source: U.S. Census Bureau population estimates for 1999 and 2000; HispanTelligence estimates for 2001 and 2002.
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