Anew audience measurement system in the U.S. could change the way foreignlanguage TV stations are perceived by the advertising community. Global Advertising Strategies, a New York-based consulting firm that acts as a liaison between advertisers and some ethnic television stations, is developing a way to bring the Nielsen Television Ratings system to the ethnics’ unrated programs. The firm hopes that the new system, which will tally the number of viewers of certain programs, will encourage advertisers to insert ads into programs on ethnic channels, the majority of which are currently funded by cable or satellite subscription or public sponsorship. According to a study conducted in May 2007 by Global Advertising, about 200 foreign language channels operate in the U.S. –– channels like India’s TV Asia, Channel 1 Russia, Germany’s DW, Spain’s TVE, France 5, Italy’s RAI Italia and Korea’s MK TV –– representing virtually every ethnic group found in America. Indian, Chinese, Russian, and Spanish-language shows lead the pack in the amount of programming available. However, though niche programming has experienced a boom in the past few years, many U.S. advertisers are still reluctant to jump on the foreign-language bandwagon. “Advertisers don’t consider some ethnic channels because their audiences are not monitored,” explained Max Smetannikov, vice president, Corporate Development, Global Advertising Strategies. The problem is that “ethnic channels, taken individually, do not pull in enough viewers to even be rated.” Smetannikov attributes the recent increase of ethnic channels to globalization and improvements in technology. As satellite and fiber optic cabling technology have become more affordable, more foreign programming has hit the airwaves. However, he cites changing views of immigrants in the U.S. as the biggest factor in the rise of ethnic programming. “Cultural perception has changed dramatically in the U.S.,” said Smetannikov, “and immigrants are no longer expected to assimilate. They are more inclined to cling to their homelands.” In addition to cable and satellite platforms, ethnic programming is popping up on terrestrial TV. Stations like Washington D.C.-based MHz cater to the international crowd with content from all over the globe. MHz’s main channel, for example, sells airtime to foreign TV organizations such as France 24, Nigerian Television, and Russia Today. With nine affiliates in both urban and rural areas, MHz reaches about 14 percent of the U.S. population. In recent years, the growth of foreignlanguage TV in the U.S. has also been encouraged by an organization called the Ethnic Broadcasters of America (EBA). The non-profit organization was founded in 2003 by Elie Kawkabani, president of Los Angeles-based Reach Media, which offers Arabic programming packages by subscription, in addition to Italian channels. The EBA is dedicated to advancing foreignlanguage channels and programmers broadcasting via satellite and cable. Kawkabani has said his goal was to “create a forum by which [foreignlanguage channels] can pool their resources,” in order to attract mainstream corporate advertisers. Yet despite growth in the ethnic TV market, and a wealth of statistics touting the buying power of immigrants, advertisers remain standoffish. In 2000, the U.S. Census Board reported that 47 million people in the U.S. speak a language other than English at home, and that the purchasing power of these individuals will only increase. They predict that Hispanic buying power will reach $1 trillion a year by 2011, and AsianAmerican wealth will increase 434 percent. However, the absence of a ratings system remains a deterrent for advertisers. While rated programs guarantee that the advertisers get as many viewers as they pay for, programs that are not measured under the Nielsen system pose a risk. At the moment, Global Advertising estimates that around 95 percent of ethnic channels are financed by subscription. Depending on the channel and cable provider, such services cost the viewer between $5 and $30 a month. Global Advertising expects to change this trend with its ratings method, which would adapt the Nielsen Ratings System to ethnic programming. Among its many flaws, Nielsen fails to take into account what millions of non-English speakers are watching. Global Advertising plans to rectify the problem with what it calls the MultiCultural Multi-Platform Programmer Platform (MMPP). The system would not gather ratings from individual stations, as in the Nielsen system, but rather aggregate channels together by ethnicity and count them as one entity. This way, advertisers could find out which time slots and programs are most popular among Spanish speakers, for example, and insert Spanish-language ads accordingly. The plan would bring advertising to foreign-language TV, which could prove to be a multi-million dollar industry. In fact, Global Advertising’s Smetannikov projects that the value of spots on ethnic channels would quickly become comparable to those on major stations. The value of TV advertising operates on the basis of tiers. Commercials on broadcast channels are generally the most expensive, followed by major national cable carriers, smaller cable channels, and satellite at the cheaper end. “Hispanic channels, many of them broadcast and major cable, are on par with what NBC and others charge,” said Smetannikov, “meaning it’s not uncommon to see $2,500 per 30-second spot on a hit show.” For the most part, however, Smetannikov compares 30-second ads on ethnic channels to what they would cost on other specialty channels like men’s channel Spike TV. Ads on typical premium foreign language channels like Channel One Russia Worldwide would go for about $300. MHz’s general manager Frederick Thomas echoed Smetannikov’s predictions. “The specificity of the audience could really allow advertisers to target and pinpoint who they want to reach,” he said. On the other hand, networks like MHz have audiences ranging from ages 18 to 80. Thomas called this kind of audience a “thematic demographic,” because it is connected more by its global outlook and interest in other cultures than by its age or gender. “Thematic demographics definitely have a commercial value,” said Thomas. “We just haven’t found it yet.” Despite the confidence presented by ethnic stations, Smetannikov reported that the realization of the MMPP is still a ways away. Between familiarizing Nielsen Media Research and the networks with the plan and fine-tuning the system, Smetannikov and his team have their work cut out for them. “In order to get it right from an economic standpoint,” said Smetannikov, “We need support across the board from networks, advertisers and viewers.” On a larger scale, the MMPP could change the way all niche programming operates. A variety of other specialized channels could soon make the switch from subscription to advertising. Channels like The Jewish Channel, Christian station Smile of a Child TV, and LOGO, which caters to gay, lesbian, bisexual, and transgender viewers, are all currently available for $5 to $10 a month. Ad insertion on such stations, and on publicly sponsored channels, which are typically very poor, could prove mutually beneficial to advertisers, channels and viewers alike. As for the foreseeable future of advertising on niche channels, Max Smetannikov said that, “it just doesn’t make sense not to do it.” And though it may take a while, Smetannikov is confident that his company can facilitate the transition. ES (An abridged version of this feature story originally appeared in one of VideoAge’ s NATPE Dailies). V I D E O • A G E AP R I L 2 0 0 8 18 E t h n i c T V i n t h e U . S . Do 47 Million Viewers Make An Audience For Ad Men? Elie Kawkabani
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