- European Pressphoto Agency
- Businessman Russell Simmons
Interactive One, a digital marketing company catering to African Americans and Hispanics, has teamed up with Russell Simmons’ GlobalGrind.com to gain scale among urban audiences and the marketers looking to reach them, the companies said Monday.
Under the terms of the multi-year partnership, Interactive One will manage duties like advertising and technology for GlobalGrind.com, which will continue to do its own marketing and content creation. GlobalGrind.com is a destination for music, style and other pop culture content focused largely on African Americans and Hispanics. Financial terms of the agreement weren’t disclosed.
Both outlets already command a sizable presence among other online media catering to Hispanics and African Americans, with a focus on “new urban” audiences that tend to be multi-cultural and trendsetting, said Tom Newman, president of Interactive One, a unit of RadioOne, a radio broadcaster also targeted at African Americans. The partnership with hip-hop entrepreneur Russell Simmons brings together “two of the biggest, most notable urban brands” under a single umbrella, Mr. Newman said.
Interactive One separately owns a slew of digital properties catering to those audiences, such as blackplanet.com; hellobeautiful.com and migente.com.
According to comScore data, Interactive One’s properties garnered 7.5 million unique visitors for the month of January, outranking the websites of both BET Networks and Univision, which drew 6 million and 4.9 million unique visitors respectively. GlobalGrind.com, by comparison, attracted 2.7 million unique visitors during that period.
The companies are honing in on a market segment that’s expected to grow in the years ahead as white consumers continue to make up a smaller segment of the population. A 2012 study by Nielsen, for one, found that Hispanics spend 68% more time watching online video and 20% more time watching mobile video than non-Hispanic whites. And Hispanics’ buying power is expected to increase to $150 trillion by 2015, a 50% increase from 2010, according to Nielsen.
Mr. Newman said Interactive One’s target audience currently accounts for $200 million in annual spending by digital marketers, a figure that’s also expected to grow.