Multicultural Special Report: Tune in to Espanol
Direct response television (DRTV) advertising that targets Hispanic audiences has proven to be an effective way to reach a growing segment of the U.S. consumer market whose purchasing power is expected to reach $1 trillion by 2010. According to Nielsen Monitor-Plus, Univision, the Spanish-language network, reported increased ad revenues of 13 percent for 2005. As a comparison, overall U.S. ad spending grew only 4.2 percent.
The opportunity is undeniable. However, there are a few, key back-end operations you need to consider when setting up a Hispanic DRTV effort to make sure you maximize your investment.
Increased DRTV ad spending usually means increased response from Hispanic consumers for companies that include a call-to-action, such as a toll-free telephone number, in their media. This increase in response, however, poses a unique problem in the DRTV format: It typically produces call spikes—high, short-term increases in call volume.
Call spikes are a challenge for any call center, but Spanish-language calls pose a bigger challenge since there are fewer call centers that can handle DRTV-driven calls. As a result, understanding how media buys impact call spikes and service levels will minimize lost calls. The ad format and the number of times the call-to-action is aired impacts the flow of calls, and the time and location of the ad affects volume. If given a media schedule in advance, a call center experienced in handling DRTV-generated calls will be able to provide a 90 percent service level.
Generally, calls driven by a Spanish-language DRTV offer will last 20 percent to 30 percent longer than a similar call generated by a general market offer. Because immigrants comprise a healthy percent of this market, customers may ask more questions about your company and product. This longer call time will increase your costs, but the increased product understanding and rapport with your customer usually leads to a higher conversion rate.