Where Is The Hispanic Explosion?

Over the last couple of years and specifically in the last few months, there seems to have been an onslaught of information pointing to the dramatic explosion of the Hispanic population in the United States. Broadcast companies and investors alike are flocking to stake their claim on this “pot of gold”.

Beware!!! There are five questions you must answer in order to give your business plan and programming strategy the best chance for success. Is there really an explosion? Who are these people? Who are the existing players? Where are the opportunities? How do we reach our target audience?

Numbers do not lie, and the latest census figures tell us that the Hispanic population is the fastest growing minority in the United States. According to the U.S. Hispanic Chamber of Commerce, there are over 2 million Hispanic businesses in the United States generating an estimated 500 billion dollars in revenues and employing over 4 million workers. These figures also show that Hispanics own more businesses than any other minority in the country. It is estimated that by the year 2007, one in every ten businesses will be owned by Hispanics. Currently, this figures stands at one in thirteen. Obviously, there is an explosion. But some organizations out there would have you believe that all these Hispanics consume Spanish language media and that we all came over in the last 5 years. The reality of this is just a bit more complicated. Hispanics have been in this country for several generations and in parts of the country, Hispanics have been here even before there was a country. The “explosion” reflects internal generational growth as well as immigration, legal or otherwise.

As detailed in a previous article, “Understanding Hispanic Targeted Radio”, the Hispanic population is clearly divided in three large groups: The “recent immigrant”, the “second generation” and the “fully assimilated”. These people consume media in very distinct ways and you must identify which of these groups you will be targeting as they behave as individual niches.

Spanish language radio has been around since the 1950’s in California and in Texas. Over the past two decades, several companies have tapped into this market. Many have tried but a select few may be considered successful. Univision radio, previously Hispanic Broadcasting Co. is the most successful Hispanic Targeted radio company in the United States in terms of market share and revenue. Spanish Broadcast System, SBS, has been able to achieve success in a few of the largest markets in the country, such as New York and Los Angeles. Entravision, Mega Communications and most recently Border Media Partners have experienced different levels of success and growth along with a handful of other companies.

Plenty of opportunities are emerging and depending on your appetite and goals you can take your pick. While the battle lines have been drawn in the majority of the top 10 Hispanic markets, format holes are still evident in markets 15 to 25. The complexity of the Hispanic community of these markets requires a complete understanding of the make up, culture and origin of it in order to compete and win. The mid-west shows tremendous growth in the Hispanic population in places like Omaha, NE and Storm Lake, IA. The south is experiencing this growth as well. Places like Atlanta, Charlotte and Fayetteville are seeing Hispanic communities blossom almost overnight. These communities are largely comprised of that “recent immigrant” and its habits, culture and idiosyncrasies must be understood to effectively entrench your self as their trusted radio station.

Whether it is people coming across the border, moving from one coast to the other, or families being fruitful and multiplying, the Hispanic explosion is happening all around you. Believe it, accept it, learn it and, if you want an exciting ride, go after it.