by Tommy Thompson, Advertising Age

As the year begins, it’s hard not to have a conversation regarding the country’s economic situation. We see firsthand the slashing of budgets and brands by marketers looking for ways to weather the storm. As many in the industry know, when brands tighten their belts, Hispanic budgets are usually the first to go. I would argue that marketing to Hispanics gives a brand the most bang for its buck — which should sound pretty attractive in tough economic times.

It seems that the ultimate goal for all brand advertising is to reach the maximum number of eyeballs. If we assume a dollar is a dollar, regardless of who gives it to you, and that a brand is out to get the most bang for its buck, then a great place to start is with Hispanic media.

Simply put, the Hispanic networks offer lower costs per point than general-market networks. This same model is consistent in all forms of media — radio, online/digital, outdoor and the list goes on. Moreover, if you factor in that within most major markets the Hispanic radio stations are among the highest ranked, the financial math is pretty easy to follow.

While it may be true that Hispanic media outlets have been fighting for years to increase cost per point in an effort to bring their rates to par with those in English-language media, a Hispanic eyeball today costs less than getting a general-market eyeball.

Another benefit of targeting various Hispanic segments is word of mouth. This often costs the brands little or nothing at all and has tremendous staying power within the Hispanic segment.

Many in the general market are pouring millions of dollars into social media and trying to create positive WOM. For Hispanics, WOM is as common as having experienced an astronomical phone bill as you try to stay in touch with your loved ones. Best of all, WOM is not limited to bad experiences. Within the Hispanic segment, especially for those that have not fully acculturated, there exists a community that is not afraid to pass on best practices or admit to making a mistake in order to help their neighbor better adjust to life in the U.S.

The power of Hispanic WOM becomes even more staggering when one considers that, according to a Pew Internet survey, 48% of Hispanics who are online are tied to social networks — more than any other ethnicity. As brands reallocate traditional media dollars to digital in an effort to gain cost efficiency, keep in mind that about almost 19 million Hispanics are regular users of the internet.

Last, but certainly not least, brands looking to reach mass audiences in person need to look no further than local events like Cinco de Mayo, Fiestas Patrias and the list goes on. This provides brands an opportunity to establish a personal connection with the target with a relatively low cost of entry. Case in point: Cinco de Mayo here in Dallas pulls nearly 120,000 people — and that’s just in one day.

The options for brands on a tight budget looking to make an impact on their bottom line are myriad. Let’s not forget, if you talk to Hispanics the right way, they will come.

Popularity: 20% [?]

Univision, the dominant Spanish-language broadcaster in the U.S., makes concessions to ensure it continues to have exclusive access to Televisa’s telenovelas.

By Meg James, LA Times

After years of bad blood and nearly three weeks of court testimony, Mexico’s entertainment giant Grupo Televisa and the dominant Spanish-language TV company in the U.S., Univision Communications Inc., abruptly ended their four-year legal battle Thursday.

The settlement averted a potentially disastrous outcome for Univision, which could have lost its pipeline of Televisa’s popular soap operas, called telenovelas, that drive Univision’s enormous ratings. In turn, Univision agreed to pay Televisa tens of millions of dollars more in royalties.

The agreement came just minutes before Grupo Televisa Chairman Emilio Azcarraga Jean, Mexico’s billionaire media scion, was scheduled to take the stand in an effort to sever his company’s long ties to Univision. Televisa had alleged that Univision had withheld $122 million in royalties that Televisa was rightfully due.

The new deal will enable Univision to continue as the leading Spanish-language media company in the United States. Univision commands about 75% of the Latino audience, and its Los Angeles television outlet, KMEX-TV Channel 34, ranks as the nation’s No. 1 station, beating established ABC, NBC and CBS stations.

“This is good, good for everyone,” a smiling Azcarraga Jean, 40, said as he left the Los Angeles courtroom.

The two companies issued a statement heralding the truce.

“It assures the public that Univision will continue to have access to consistently top-quality Hispanic programming. . . . For Univision, it assures that there will be no disruption in some of its most popular and valuable programming.”

Investors had been monitoring the trial closely. Univision is struggling amid a slowdown in advertising, and it faces looming payments on its $10-billion debt that stem from a highly leveraged buyout two years ago. Losing its supply of low-cost Televisa shows would have been “devastating,” a Univision executive told the jury last week.

Trial testimony included mind-numbing details on how Univision calculated Televisa’s royalties. There were no bombshells. Still, about a dozen people were on hand each day taking notes of the proceedings.

Most of the scribes had been sent by transcription companies hired by large banks and investors that hold Univision debt. As the trial wore on, the price of Univision’s bonds, which have been trading at steep discounts, fluctuated as one side or another appeared in court to gain an advantage.

Several of the note-takers declined to give their name or say who hired them. One 33-year-old Los Angeles man said, “I don’t even know who I’m working for. I’m just here to take notes.”

The settlement came after two days of marathon bargaining sessions led by Los Angeles billionaire Haim Saban, part of an investor group that owns Univision, and Alfonso de Angoitia, executive vice president of Televisa. Saban, Univision’s chairman, attended the trial every day until this week when settlement talks accelerated.

Industry analysts speculated that the two companies sought to resolve their differences rather than risk an unfavorable verdict by the jury. “The stakes were too high,” said Julio Rumbaut, a Spanish-language media consultant.

Televisa sued Univision nearly four years ago, alleging breach of contract. Televisa had sought to bring an early end to its 25-year commitment to supply the telenovelas exclusively to Univision in the U.S., an arrangement that extends through 2017.

As part of the settlement, Univision agreed to pay Televisa $25 million in disputed royalties (although Univision had already paid $21.5 million of that amount “under protest”) and increase the license fees paid to Televisa under its existing deal.

Univision will also provide Televisa with at least $65 million annually in free advertising on Univision’s television networks for the next nine years. Univision typically supplied Televisa with some of its unsold commercial time.

In exchange, Televisa affirmed its commitment to continue to provide telenovelas exclusively to Univision through 2017, removing clouds of uncertainty that had been weighing down the value of Univision’s bonds. Televisa also extended for another year Univision’s right to broadcast matches of the Mexican soccer teams owned by Televisa.

“It was expedient for Univision to pay more money for Televisa’s programming to be able to hold on to that programming through 2017,” Rumbaut said. Now, he said, Univision will have leverage to strike deals with cable companies that might have been reluctant to pay Univision for its channels.

Televisa’s lead attorney, Marshall Grossman, said: “Univision is getting oxygen.”

The dispute between Univision and Televisa is not entirely put to rest, however. The companies are scheduled to have a trial in March to decide whether Univision has the Internet rights to Televisa’s programming.

That case is also expected to settle, people close to the companies said.

Popularity: 16% [?]

NEW YORK -Executives at Sam’s Club, Wal-Mart Stores Inc.’s warehouse club division, told investors Tuesday that the company plans to open a new Mas Club store that sells products imported from Mexico to cater to Hispanic customers.

“Mas” means more in Spanish.

The news - announced on the second day of Wal-Mart’s annual investors meeting in Bentonville, Ark. - come as Sam’s Club is studying different store formats in a bid to expand its business amid a challenging environment.

Doug McMillon, Sam’s Club president and chief executive, told investors that membership income is not growing as fast as sales. As a result, executives are focusing on improving offerings while trying to better communicating its value message to members.

Sam’s Club officials noted that while food sales have been strong, general merchandise sales remain challenging.

This past summer, Sam’s Club began testing a new concept called Sam’s Club Business Center in Houston, which caters only to small business owners. McMillon said that at the new format, which does not have such categories as jewelry and pharmacy, business is beating the sales plan. Sam’s Club executives also told investors that they are testing a smaller format for both small business and average consumers in Garden City, Kan. This 100,000-square-foot format would allow Sam’s Club to move into smaller markets.

Mas Club will sell produce, meats and Hispanic food, drink, spices and candy. It will also have a full-service meat and seafood counter, an event area, a gas station and a cafe that will sell fresh-made tortillas. The store is scheduled to open during the first half of 2009 in Houston. Customers will have to buy separate memberships to Mas Club.

Popularity: 17% [?]

A tax practitioner has teamed up with a software engineer to create a new tax prep program aimed at preparers who service Spanish-speaking taxpayers, especially undocumented immigrants who are ready to begin filing tax returns.

Latino Tax Software’s MultiTax distinguishes itself from more established tax software packages by helping clients obtain Individual Taxpayer Identification Numbers from the Internal Revenue Service and allowing them to file multiple years of tax returns they have avoided filing earlier. The software also lets preparers toggle quickly between screens in English and Spanish.

Company president Manuel Alvarez (pictured) started his practice, Latino Taxes, four years ago in California and has since grown it to 1,000 clients. About 85 percent of his clients are Hispanic and Brazilian, while the rest are Latino.

“Within the Hispanic and Latino community, there are some specific challenges,” said Alvarez. “Many people have never filed their taxes in the past, so we help them prepare multiple years of taxes at a time. We work with a lot of undocumented immigrants. Many of them do not have a valid tax ID number, and we work with them so the IRS can choose an ITIN for them.”

Alvarez, a Stanford University MBA, came up with the idea for the software a few years ago and met an engineer at Stanford who helped him develop the program after tax season this year. He previewed the software at the IRS’s National Convention of ITIN Acceptance Agents in Dallas last month and plans to show it later this month at an IRS Tax Forum in New York.

Alvarez sees a lot of upside potential for his software, especially with the presidential candidates in both parties talking about the need for immigration reform.

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Popularity: 18% [?]

In today’s wacky dessert world, in which paying $3 for a dolled-up cupcake is de rigueur, the next hot thing actually is a humble snack with a storied tradition: churros.

Spurred by an explosion of interest in all things Latino, the fried batons of dough — traditionally sprinkled with cinnamon and sugar — are popping up on menus across the country. When the president’s daughter serves churros at her wedding, it’s probably safe to say they have hit the mainstream.

Jenna Bush definitely is not alone. Entrepreneurs and big-name chefs have hopped onto the bandwagon, too, and have pushed this modest, deep-fried snack into the spotlight.

These days you can find churros on menus from coast to coast, from West LA’s well-loved Literati 2 (helmed by Chris Kidder, formerly of Campanile) to New York’s trendy Dos Caminos.

Churros are believed to have their origins in Spain, though they’re also extremely popular in Mexico and other parts of Latin America, where they’re found at street carts, markets and cafes.

The key to their appeal is their distinctive ridges, achieved with the help of a churrera , an extruder with a star-shape attachment. When the thick batter is pressed and dropped into boiling-hot oil, each ridge fries up wonderfully crisp, giving the churro its texture — crunchy on the outside, soft and almost creamy inside.

A number of businesses have sprung up to accommodate the booming interest in the U.S.

“Five years ago, there were lots and lots of people who’d never heard of a churro, and many of the people who did know what one was had had one at Disneyland or at a ballpark,” said Melanie Farkas, the owner of the 5-year-old Churro Station franchise based in San Rafael, Calif.

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Popularity: 25% [?]