Independent Operator

Among the leaders who have shaped the evolution of Hispanic marketing, Joe Zubizarreta is accustomed to both chaos and control. And he likes it that way

By Mindy Charski

Joe Zubizarreta co-manages one of the largest Hispanic advertising agencies in the country, with 107 employees, projected billings of $195 million in 2007, and an enviable roster of clients. So it’s no surprise the man best known as Joe Zubi seeks a little peace every now and then. He finds it hovering over a reef off the coast of Florida.
“When you’re down there you’re not hearing the phone ring, you can’t take your BlackBerry, and you can’t talk to anybody unless you’re using hand symbols,” says the CEO of Zubi Advertising. “It’s chaos down there when you look at the life of a reef, but to me it’s very peaceful and gives me a chance to really stop thinking about anything else but what I’m seeing.”

Ashore, life is louder, particularly in the Coral Gables, Florida, headquarters of his 31-year-old agency. The full-service shop, which also has offices in Dallas, Detroit and Los Angeles, is a family business run under the guidance of mom, president and CEO Tere Zubizarreta. Joe Zubi is the external face of the business, serving as a liaison with clients like American Airlines, Ford Motor Company, and Washington Mutual. Sister Michelle Zubizarreta, the chief administrative officer, largely handles internal affairs.
Zubi, 46, didn’t head directly to Zubi Advertising after graduating from the University of Florida with an advertising degree in 1982. He first went to work as a junior account executive for the general-market shop Beber Silverstein in his hometown of Miami. “I didn’t want to come to Zubi as Tere’s son,” he says. “I wanted to come as someone who knew the ad business and could make a difference. I wanted to learn elsewhere.”
Eight years later he joined his mother and sister, initially as an account supervisor. Over the years the siblings began picking up more of the day-to-day responsibilities. The tasks are taken seriously by the man who generally appears confident but admits he is a bit insecure about himself, his presentation skills, and his leadership skills.
Among the biggest leadership challenges Zubi faces: Knowing that the livelihoods and personal goals of 107 employees and their families are heavily dependent on the agency’s success. “That’s a tremendous responsibility for a leader,” Zubi says. “Our payroll is in the millions of dollars. We have to keep making that money to keep paying people.”
Several enduring business relationships help fill the coffers, including Winn-Dixie Stores, a 23-year client; SC Johnson, a 15-year client, and Ford, a 13-year client. Last year the agency saw organic growth from SC Johnson and Olive Garden and picked up the new accounts Washington Mutual and Progressive Direct.
“We have been told we have a very strong strategic focus and that we understand our clients’ business and what their needs are,” Zubi says. “I think one of the strengths is we really do care about establishing long-term relationships with our clients.”
One such relationship is with Chris Matthews, Washington Mutual’s senior vice president for marketing. Matthews hired Zubi Advertising in 2002 while at the company formerly known as GE Financial. After joining the Seattle-based bank, Matthews hired the agency again. He credits Zubi and his team with being “very good at sighting trends” and offering a holistic approach to the market that enables Washington Mutual to “adjust our products, introduce new products, or put together completely new communications initiatives. It usually is more than advertising.”
In fact, Zubi and his staff “went out on a limb,” Matthews says, when they started working with GE Financial, which had not previously marketed itself to Hispanics. The team recommended their new client start with community-based programs, with little to no advertising, which is traditionally a key source of revenue for shops. “Most ad agencies don’t do that,” Matthews says. “[Others] don’t look at how you can really build your awareness and build your brand. Joe teaches you how to respect the Hispanic community.”
Matthews also credits Zubi with building a strong team of thought leaders who work collaboratively. “If they disagree with each other, they’ll have that debate but it’s never personal or emotional, it’s professional,” he says. “That reflects Joe’s leadership.” (The team will grow by one in April when a new creative director whose name Zubi couldn’t divulge at press time comes aboard.)
Zubi is among the generation of leaders who have helped accelerate the evolution of Hispanic marketing. Today he spends less time educating clients on why they should be in the market, and more on how the agency and client can focus on return on investment. His is among the more progressive Latino shops in terms of offering interactive solutions, and in January the agency formally launched a unit called iZubi, which combines its digital work with direct marketing.
iZubi had worked with the agency’s creative team on a 2006 integrated marketing campaign for Mercury that included a website, event marketing, direct mail, email marketing, and a short-film contest. TV and radio were not included in the program. “I think it’s the way all advertising is moving,” says Zubi. “I’m not saying mass media is dead . . . but you can’t go out with just a TV or radio spot and have maximum success.”
Not surprisingly, the agency considered to be the second-largest independent Hispanic shop—ranking behind The Vidal Partnership in New York—has been approached by a number of companies looking to acquire the business. Zubi and his family have listened to the propositions but have never made a deal.
“So far we’ve not found a structure that really fits what we want to accomplish,” says Zubi, a twice-divorced father of two. The agency remains a family business.
“We feel as an independent agency we can make decisions that holding companies or stockholders may not be in agreement with,” he says. A companies might have frowned, for instance, on the agency’s decision to stop taking a fee from American Airlines for several months after the September 11 attacks. Zubi says, “The way we’ve said it is, as long as we can continue to perform and compete in this industry and keep our independence, it’s something we want to do.”