Thursday, September 9, 2010

US Hispanics and Online Video Media

              With the spawn of the information revolution, the internet has taken kin to a very diverse populous.  The internet has a wide variety of uses; the information it encompasses is a utility for young and old alike. With information literally at your fingertips, the internet makes it easy to research, learn, connect, make purchases, watch videos, get news, or just have fun.  Because the internet is not parochial it is a great way to reach anyone and everyone. The internet’s ability to cater to an individual’s needs makes it have an appeal like no other media environment. Currently there is a massive population of U.S. Hispanics and the numbers continue to climb. We at P:9 Innovations understand the importance of this nearly untapped sector of the market. The cosmopolitan nature of the internet attracts Hispanics as a means of staying connected to their roots. As technology has morphed and grown, the availability of video content online has become widespread. So what are the facts? US Hispanics who make up a significant amount of internet users in the United States are an important market within online technology. A March 2004 study by AOL/Roper ASW shows that 14 million Hispanics in the US are online[1]  and these numbers continue to grow. According to the US census Bureau, the Hispanic population is projected to nearly triple, from 46.7 million to 132.8 million during the 2008-2050 period. Its share of the nation’s total population is projected to double, from 15 percent to 30 percent. Thus, nearly one in three U.S. residents will be Hispanic.[2] With these projections, the prospect of the Hispanic consumer has great potential in the US market, especially in internet use which is becoming a standard in many businesses and schools. Online video content websites are becoming more and more popular. Reaching the US Hispanic through these means can in turn revolutionize standards and means of interaction.  Exploring current trends is then necessary in order to build a relationship with the ever important US Hispanic consumer.
    In order to understand the rapidly growing online video market, assessment of current trends is vital. Several sites have established themselves within the US Hispanic community and analyzing the demographics and content related to said video websites will allow for a better understanding of the target market and how to market accordingly. Analyzing highly recognized internet sites and their methodology will promote understanding of the market populous and the necessary components needed to promote video content websites.

www.Batanga.com
     Batanga.com is a high trafficked top 5000 website that is self described as a top destination for U.S. Hispanics looking for Latin music and entertainment[3]. Batanga.com is a website that like many others offers not only video content but internet radio and other entertainment related navigations. Batanga.com was established in late 1999 and by 2004 had reached a benchmark of 1 billion songs streamed.  By 2008, according to comScore Media Metrix, Batanga and HispanoClick combined reach 15 million unduplicated unique visitors[4]. So who exactly are these visitors? According to Quantcast 44% of Batanga users are Hispanic, and of a less affluent nature where 65% make less than $60,000 per year. Also 58% of users have had no college experience. 61% of its visitors are between the ages of 12 and 34[5]. This information is concurrent with statistical data that states 47% of US Hispanic internet users are less than 35 and 54% make less than $60K per year. [6]
In efforts to extend their reach Batanga.com has also created magazines and www.batanga.com/live   in effort to connect with the Hispanic community. Events centered on music draw affinity from the Hispanic community and connect each internet user in a meaningful way to the website. They have events that include magazine release parties, music tours, in summer 2009 was Batanga beach break. These music related efforts relate to the young populous that frequent Batanga.com. Batanga utilizes online video content while maintaining a direct focus: music.


http://espanol.video.yahoo.com
Yahoo.com  is a website that has gained much acclaim over the years. More recently they have targeted Hispanics by creating a segment of Yahoo in Spanish. Within this they have a site hub for video navigation in Spanish. According to Quantcast 92% of traffic surrounding this site is attributed to “passers by” meaning they visit the site once a month[7]. The website attracts   22.7K US visitors per month, of which 55% are Hispanic. Research shows that 65% of visitors have no college experience. The main site visitors stem from two age groups. 32% are 50 and older, and 33% are 17 and younger, leaving 34% in the 18-49 age group[8]. The equality of age segmentations exemplify the diverseness in attraction to what yahoo video in Spanish has to offer. Yahoo  offers video channels such as entertainment, primetime, sports, and movies. Some English language videos have Spanish subtitles but there is no consistency among them. The clear set of categories allows the Hispanic viewer to find something specific or view videos from a category of interest.

Terratv.terra.com
      TerraTV is a user friendly website frequented by many US Hispanics. According to data from Quantcast an overwhelming 84% of its users are Hispanic.[9] The users are mainly under 35, making up 74% of site visitors. This quantitative data shows Terra’s desire to cater to the US Hispanic market.  79.2K people in the US access TerraTV monthly which accounts for 119.3K site visits per month and globally the numbers are even higher. Many site visitors are from Texas, California, Florida or New York- places that many Hispanics reside. 82% of frequenters make less than 60K per year and 70% have had no college experience. [10]  TerraTV visitors are then characterized by a less prosperous demographic. 
TerraTV focuses on the US Hispanic experience and offers over 29 channels with categories such as news, sports, lifestyles, entertainment, and music. TerraTv also offers a hi-definition beta option if the user prefers. The main page also consists of a top 10 list and promotes a few videos in each of their categories. TerraTV has made and continues to make efforts to connect with the US Hispanic community. During the 2008 election TerraTv provided up-to-date coverage on the presidential election including commentary, interviews and results. More recently TerraTV plans to launch a unique series entitled ‘Terra on tour’ with Gloria Estefan’s Latin America tour featured to kick off the series. Viewers can view videos, photos or read articles with recent information surrounding the tour.  These online efforts aim to connect US Hispanics with their roots as well as expose information to an otherwise uninformed audience.  Terra USA is in the process of launching their “Atom Project” which over the course of the year will introduce new platforms that will allow the user to “simultaneously view, send and discuss a video, photo or article in a single click. The Atom Project also extends to mobile formats for Smartphones, including the iPhone, allowing for rich media and high impact advertising.”[11]

Trends and Findings
    After exploring the design, content, and reach of the US Hispanic driven websites, it is important to search for patterns and resonance among sites.  Analytically comparing findings and discovering concurrent information will help to assess what is successful within the growing online video-content market.  Insight can be gained of what appeals to the online media consumer and what characterizes them.

Networking Resonance
     An important finding among video content websites is their availability for networking. Each website characterizes the desire of US Hispanics to stay connected with each other. It is the ability to interact with other users whether they are friends, family or strangers that appears common thread among the ‘community’ as many websites call it. The websites offer easily accessible networking tools; tools that allow users to navigate easily through the intricate web of video content. All sites offered suggestions of new videos based on the video being viewed currently. Not only is this a strategic tool on the company’s part allowing for more clicks, hence more advertising displayed, but it is also a way that keeps viewers interested. . Ratings also help in networking allowing users to search top rated content within a category. This is a useful networking tool because it opens up a portal unknown to the user. The suggestive information approach helps to expand the palate of  the US Hispanic. Networking within video content websites such as those researched is an important factor in modern internet use. Many sites have taken action and networked to other sites such as Facebook and Twitter in hopes to expand their reach. Staying connected in any way possible (as minute as some may seem) is an important factor to the US Hispanic.  They can now stay connected with their homeland because music, news, and shows among other things are available in an easy to use format through these video content sites.



Customization
Successful appeals to the US Hispanic internet user include the availability to customize. When users register for the website they gain access to tools that allow them to customize their site in a manor intimate to them.  Batanga offers a playlist option that allows the registered user to create a desired list of videos that will play consecutively. This option for customization in turn facilitates ease of use of the viewer’s part. By being able to create a playlist that advances automatically the user is freed to perform other tasks if he wishes to.  Other available customizations include the ability to favorite certain videos. Once ‘favorited’ the user may return to his personal list so that he may re-visit certain videos without the hassle of searching for each one individually. The availability to customize on these websites is an important factor to the US Hispanic and Korzenny asserts that  Customization is the key to the freedom that the Internet provides. The internet makes the need to assimilate much less pressing than ever before. That is why biculturalism is the most likely Hispanic trend [12].  Many customization types have been widely adapted among the online video community and will continue to grow and vary as technology advances.
      Similarity of website format among websites in turn allows the viewer know what to expect in a way or where to look for something. Resonance of formats among video content websites in turn allows the user to navigate with ease among varying sites. This has an important implementation in marketing because new adaptors will be able to easily learn how to maneuver through websites.  All video content sites viewed have search toolbars at the top. When this becomes the standard format it makes it easier for the consumer to know where to look- especially important  when websites tend to be cluttered with pictures and words.  Other format similarities include ad placement which tends to be at the top of the webpage at the least. This format option is important for marketers because after entering in a website name the top of the web page is the first thing viewers see. Another format quality is that all three sites placed their log-in and sign up options at the top right of the web page. Formatting plays in important roll to the viewer and helps them avoid the frustrating consequences associated with poorly formatted websites.
      Another important note  among video content websites is that language varies depending on site and content. Many videos are that are offered on these Spanish language sites are in English. Some advertisements are in Spanish and some in English; and some switch languages with repeated appearances. Site postings that were written in English have been responded to in Spanish and English and other site postings in Spanish have been responded to in the same manor. This has important implementations for marketers because it demonstrates the willingness of  the consumer to communicate regardless the language.

Recommendations
        After an in-depth look into the character of Hispanic consumers using online video sites and each website’s design and approach, important recommendations can be made for marketers.  Marketers can take heed to the characterizations of the sites and consumers as well.  The US Hispanic is a growing community of online users with many clients under the age of 35. Companies aiming to appeal to Hispanic users online should use the higher broadband penetration and younger age of this demographic segment to their advantage, adjusting their campaigns to reflect these differences.[13] What the internet brings to the US Hispanic can help them escape the pressures of assimilation, allowing them to keep their own culture. Networking within video content sites then becomes an important mark of that site. It allows the viewer to connect their world with others, facilitating a communal spirit.
Customization tools are important because it allows people to make a site more personal. Without customization many could become frustrated trying to search for videos or not being able to reference them easily for future use or for sharing purposes. Businesses will readily succeed if they model  these approaches in their website.  Utilizing format similarities will help with ease of navigation and in turn help broaden the horizons of new adapters bringing in more traffic to the site. Being similar in some ways is definitely an important tool.  A commonality seen among many video websites is the word and photo vomit on their pages, it is to say the clutter that all of these sites display. It reminds me of driving through a city and all I can see is multiple billboards with a strew of words and pictures all competing for my attention which makes it hard to focus on any one thing. Format similarity can still be utilized while clutter is minimized. In order not to confuse or deter the audience, one should consider revising their format.  Another important indicator characterizing online video sites for US Hispanics is their readiness to update and continually transform. Changes should be small but substantial keeping up with the needs of the viewer. Utilizing feedback will be an important tool in determining what steps to take transforming the website. All of these aesthetic factors help determine who frequents the site and how readily they will do so.




[[1] http://www.tia.org/uploads/casestudies/Hispanic%20White%20Paper.pdf
[12] Hispanic Marketing: A Cultural Perspective  Felipe and Betty Ann Korzenny  P.272

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