Now You’re Speaking My Language.

The Spanish-language sector increased by 3%, posting gains across every major product category... 

Even as the U.S. gears up for a formal census expected to validate the size and scope of its Hispanic population, advertisers are way ahead of the learning curve. While 2008 national TV advertising grew at a slower rate than prior years, the Spanish-language sector increased by 3%, posting gains across every major product category with the exception of automotive offerings. 

Together, advertiser spending within the Top 10 Spanish-language product categories expanded by 8% over prior year results, reaching $2.9 billion in 2008. Leading the way on a dollar basis were pharmaceuticals at $663 million, followed by automotive (factory and dealer associations) at $530 million, wireless telephone services at $315 million, department stores at $307 million and quick service restaurants at $300 million. 

The fastest growing segment reflects the rising digitization of the Hispanic population: satellite communication services increased their spend on Spanish-language TV stations by 124%, dwarfing the gains by runners-up auto insurance at 39% and pharmaceuticals at 32%. 

And this dollar shift accompanies a rise in audience sizes for the Spanish-language networks in the 2008/09 television season. The two major Hispanic networks, Univision and Telemundo, garnered 11% more viewers overall last season, and reported a 6% increase in the coveted adult 18-49 primetime audience demographic (based on Live+7). 

But audience size is only part of the story. As an advertiser trying to reach the burgeoning Latino market, it’s also critical to target Hispanics with a high-quality ad in an environment where they are most engaged and receptive to the commercial message. And to do that successfully, from both a media and creative perspective, all signs point to language. 

Bilingual preferences 

Nielsen IAG measures the impact of advertising among Hispanics of all acculturation segments across English- and Spanish-speaking primetime television every day. Much recent attention has been placed on the emerging segment of bilingual Hispanics, who can seamlessly switch from English to Spanish and surf from Criminal Minds on CBS to Cuidado con el Angel on Univision without losing much in translation. But as an advertiser, where can you more effectively communicate with this consumer? 

Viewer response is significantly stronger on the Spanish-language networks... 

Reach and cost considerations aside, research shows that viewer response is significantly stronger in general on the Spanish-language networks. Bilingual consumers report 30% higher recall rates for advertising creative executions and the advertised brand when commercials are seen on Spanish-language programming (on Univision and Telemundo) rather than English-language broadcast networks. 

Language advantage 

Part of the advertising performance advantage can likely be attributed to the unique characteristics of the Spanish-language networks that offer reduced ad clutter and increased ad exposure frequency, as well as Hispanic media consumption factors like lower DVR penetration. 

Ads on Spanish-language TV rated 62% on the likeability scale... 

But that doesn’t account for one of the most powerful points of difference: likeability, a key ad effectiveness measure. Ads on Spanish-language TV rated 62% on the likeability scale on average versus just 41% for spots featuring the same brand on English-language TV among bilingual consumers. 

On the recall measure, Spanish-language TV ads achieved a 35% brand recall score versus 27% for English-language ads. In many cases, these substantial gaps were seen even for “translated” spots, where the ad executions mirrored the version airing on general market TV, suggesting that the difference lies in something other than the creative treatment or content. 

Emotional connection 

The performance differential points to a strong emotional link forged between the consumer and their native language. Spanish-language networks uniquely provide a “language outlet” for bicultural Hispanics—many of whom may be speaking English in their daily professional lives, but prefer Spanish in their private or family lives. The television viewing experience, when delivered in Spanish, allows viewers to connect with their culture, history and identity in a way that may not be readily available elsewhere. The translation for marketers: it appears that the bilingual consumer’s appreciation for in-language experiences results in a more favorable impression of those commercials which deliver them. 

Ads created specifically for the Hispanic market outperform... 

And the power of language becomes even more evident when evaluating creative-level differences. Ads created specifically for the Hispanic market on average outperform those that are merely lifted or translated from general market TV spots, earning 16% higher brand recall results and 22% better message recall. The factors behind improved performance appear to be culturally relevant cues embedded in the advertising such as Hispanic characters, music and themes. 

Character counts 

But more than any other element, the inclusion of a Spanish-speaking character(s) in the ad appears to be the driving critical success factor. Consistently, these types of ads resonate more with viewers, receiving higher brand recall and message communication scores than those without such characters. The finding holds for both Hispanic original spots (+29% higher brand recall) and translation spots (+37% higher brand recall), underscoring the benefit of incorporating more relatable talent who speaks the language in the ad. 

Creating a specific spot from scratch for the Hispanic market, which incorporates culturally relevant themes and Spanish-speaking characters, generally results in stronger impact, but may not always be practical given production costs and timing considerations. As an alternative, utilizing bilingual actors in ads that are merely “re-purposed” from the general market appear to have some benefit. In this scenario, the creative content and narrative plays out identically to the English-language version (with cultural adaptations where necessary), but the script is verbalized in Spanish. In other words, in the absence of any other cultural cues, an ad where the characters are at least speaking in one’s native language is more likely to grab the viewer’s attention and drive brand impact—regardless of whether it was designed exclusively for the Hispanic market. 

Screen scene 

Hispanic consumers have become a force to be reckoned with across screens large and small, fixed and mobile. According to Nielsen May 2009 universe estimates, 82% of Hispanics have cable plus (expanded cable package that does not require a cable box)—a usage level which has risen by 12 percentage points from just four years ago and significantly narrowed the gap with non-Hispanics (89%). One-third of Hispanics have wired digital cable, another 33% have direct broadcast satellite subscriptions, 21% are DVR owners and 88% have DVD players. 

Two-thirds of Hispanic households have personal computers, with six in ten also signed up for Internet access at home. Nearly seven in ten of those Hispanic Internet households have high speed broadband access—almost identical to the general population percentage. While all Internet users average 28.5 minutes online per day, Hispanic households log slightly less time at 21 online minutes per day. 

Latinos who are online are more likely to download music... 

Nielsen reports that Latinos who are online are more likely to download music than the general Internet population—32% of Hispanics download music online versus 24% of all Internet users. The same pattern holds true for video downloads, with 17% of online Hispanic households pulling video off the web, versus 14% of all Internet users; 9% of online Hispanics downloading movies versus 6% of the general Internet population; and 8% of Hispanics accessing TV shows online versus 7% of all Internet users. 

Wired Hispanics trail the general Internet population when it comes to online shopping. While 70% of Internet users shop online, spending approximately $861 per year, just 62% of Hispanics purchase products on the web and spend $762 annually. 

Latinos receive or make more phone calls per day than any other ethnic group... 

Dialing in 

Mobile phones have made tremendous inroads in the Hispanic community, which trails only the African-American segment in number of minutes per month (783 minutes versus 811 minutes respectively). Although Latinos don’t spend as much time on the phone, they receive or make more phone calls per day (14) than any other ethnic group, and have the phone bills to prove it—$94 per month compared to African Americans $89, Asians $82 and Whites $80. Roughly two-thirds of Hispanics used text messaging services in the last 30 days, about one-fourth utilized mobile Internet, and the same percentage sent an email in the past month. 

What’s clear is that Hispanics represent a viable and growing segment in the electronic marketplace. Their increasing “three screen” media consumption as well as their favorable predisposition to advertising make them an audience that can be harnessed on new platforms to boost brand impact.

Source - Nielsen

How An Entry Into The Hispanic Market Today Can Save Your Company Precious Dollars

The bleak news about the health of global advertising just won't stop.

ZenithOptimedia yesterday slashed its 2009 forecast for a second time since December 2008, when it predicted statistically flat planetary growth.

Now, it predicts the world's total advertising dollars, Euros, pounds and yen to drop by 8.5 percent from 2008. The sharpest cuts were seen in the automotive, financial and business travel categories.

"Faced with extreme uncertainty, advertisers in most sectors planned for the worst and cut their costs in anticipation of steep drops in revenue," ZenithOptimedia said in a statement released July 6.

A recovery in North America may not be seen until 2011; ZenithOptimedia believes the U.S. and Canadian advertising market will shrink an additional 2.4 percent in 2010.

For the marketer who hasn't yet launched a Hispanic marketing effort for their company, the gloomy forecast may present an unprecedented opportunity. 

"An advertiser that is interested in getting into the Hispanic market can go in and do a test and get it for a substantial discount, compared to what it would have cost two years ago," says Don Parsons, a veteran Spanish-language media sales executive who is now president of sales for the recently rebranded television operation CV Network.

"In the Hispanic market, we've never had years with minus growth - until last year," he notes. Therefore, a multimedia Hispanic market trial involving Spanish-language television, print and radio - paired with a promotional effort designed to "move case" - could bring a company additional revenue at a fraction of the cost it will take when the economy recovers.

A packaged goods advertiser not yet talking to U.S. Hispanics could easily accomplish this, Parsons says. At CV Network, the category remains one of the strongest. Pharmaceutical, telecommunications and beverages are among the other categories that continue to perform well for Parsons and his team. 

There's also new business development, Parsons notes. "One category that continues to grow on a local level is healthcare and HMO," he says. "It's happening in all markets, including Puerto Rico."

While CV Network is seeing new business, Parsons believes the addition of first-time clients is not happening to the degree that it did in the past. He adds that this is likely the case for all Hispanic media in mid-2009.

The addition of healthcare and HMO dollars hasn't made up for the loss in automotive dollars seen across the entire landscape of Spanish-language media.

"The automobile manufacturers are spending on the network level, but the dealer associations are the ones cutting their budgets, and that hurts at the local level," Parsons explains.

A new entrant to Hispanic marketing today can also make a bold statement about their interest and commitment to reaching the Spanish-speaking consumer because of an overall air of caution among media buyers and CMOs already in the market.

"Instead of an annual budget, people are reviewing their expenditures on a quarterly basis," Parsons says. "Advertisers are just very cautious right now. Planning and buying used to be done far more in advance, but it is not happening."

Thus, it's "slow-growth mode" until at least the beginning of the fourth quarter for Parsons and CV Network. There are no predictions as to what 2010 has in store for the network, which operates in Miami and New York in addition to Puerto Rico.

That being said, Parsons says the Latino market environment is far richer today than it was a decade ago. 

"The research is better, and there is more data," he says. "This will help a marketer understand the Hispanic market better than 10 or 20 years ago."

Parsons also points to a plethora of media options that was only nascent in 1999, including electronic media, print publications and in-store retail opportunities.

"I definitely think there is room for growth, and online opportunities represent major growth for the entire industry," he says.

Parsons also believes that one or two additional Spanish-language television networks will bow in the coming years, as existing properties evolve.

Sure, that's added competition for Parsons. But he welcomes the challenge. 

"That means we will all have to work harder," he says. "We will have to offer a great product and offer our advertisers a multiplatform opportunity - especially the new advertisers."
Source: Hispanic Market Weekly

Social Media Solves Latino Assimilation Problem

By Louis Pagan

This is something I've addressed again and again over the years:  keeping one's traditions vs. assimilation.  With most 'hot buttons' this topic follows suit and lines up the ranks either for or against.  While I never understood why the lines had to be so trenched in the ground, it seems to me that both sides are skewed and serve to only slide it's proponents into a hole instead of maintaining a plateau.  Thankfully, there is now proof to support why Latinos should embrace US culture.

In a recent study, we see what does work is a revolving acceptance of the former and new, namely keeping one's Latino culture while embracing US culture.  This not-so-common, common sense method maximizes the benefits of both cultures and let's one successfully apply themselves in the real world - a world of diversity.

These same thoughts can be found at the heart of social media.  To limit oneself in social media to their own natural tendencies, one would have to put up many safe guards, namely locking their account from general public view and filtering content to select friends.  This is not what social media is and works against the social media movement.

How can one possibly restrict themselves to their limited sphere of influence and not expect to understand and grow with the world around them?  Social media breaks down real and perceived barriers.  It gives people the chance to softly engage other cultures and pursue new connections.  It is through social media that one gets exposed to the fast track of what being social is all about, and have the ability to connect to one's peers, both upwardly and laterally.  For Latinos, who are culturally social, I have hopes that social media can help bridge the gap between the traditional and the new without losing the essence of either.

 

Source: LatinoPundit

To Reach Multicultural Youth, Go Mobile

By Tru Pettigrew

It's no secret; multicultural consumers have always been trendsetters. The music, fashion, and lifestyle categories have always been synonymous with--and adopted--what emanates from “the streets." Yet, when it comes to influence in the technology category, or how brands use technology to market to this segment, the conversations have been almost nonexistent.

Multicultural online and mobile consumption and spending habits are outdistancing the general market 1.5, almost 2-to-1. Per capita, they’re texting more, have more unlimited data plans, download and purchase more content, view more online and mobile ads, and buy more high-end mobile devices than the general market. Consumers are turning to new media as their primary source for consumption, and the multicultural segment is driving the bus. This means that in order for brands to reach them, they must restructure their media plans and budgets to meet them where we are. 

Yesterday, while speaking at the Cannes Lions International Advertising Festival, Steve Ballmer (right), a senior Microsoft executive, stated: “…traditional broadcast and print media would have to plan business models around a smaller share of the advertising market, as revenues continue to move to digital outlets." We’ve all seen this happen firsthand over the last 18-to-24 months and we've been adjusting accordingly. It’s important to build out highly engaging online and mobile experiences for brands and clients. Taking traditional offline strategies and media, “digitizing” it, and making it interactive in a way that gives the consumer an experience, and affords them special access to exclusive lifestyle benefits is a necessary approach to stay current and relevant with this audience.

There are gluts of agencies, and companies in the marketplace that profess to know and execute on new media and mobile. However, they fall short in a few key areas that resonate with multicultural consumers. Access and benefits are most important to this consumer when engaging with a brand. The more, the better, and it has to be over a longer duration. These are the keys to winning in the multicultural arena. Of course, they’re looking to be engaged in an authentic way (another subject altogether), but after that hurdle it’s about ongoing access and benefits.

Data shows us that multicultural youth over index in their use of mobile, particularly the Hispanic/Latino consumer. And to that point, instituting some decisive mobile strategies, capabilities, and tactics that appeal to multicultural audiences is paramount for brands looking to connect with this consumer group. Their mobile phones and devices are an extension of who they are, whereas customization and personalization is key. These devices are with them all the time, not only as a means of communication but as a part of their lifestyle. Brands should think about integrating mobile and multimedia features into online widgets and banners to enable simple and effective campaign integration within existing online initiatives. As well, it's necessary to extend online engagements to mobile devices. This process generates higher user participation, improved campaign reach, and a cost effective campaign execution. It's necessary to become an active participant in their world, and go mobile with them.

Source: Fast Company

Latino Teens Happier, Healthier If Families Embrace Biculturalism

Source: University of North Carolina at Chapel Hill

Over the years, research has shown that Latino youth face numerous risk factors when integrating into American culture, including increased rates of alcohol and substance use and higher rates of dropping out of school.

But a new study from the University of North Carolina at Chapel Hill shows adolescents who actively embrace their native culture – and whose parents become more involved in U.S. culture – stand a greater chance of avoiding these risks and developing healthier behaviors overall.

The findings are from a longitudinal study by the UNC-based Latino Acculturation and Health Project, which is supported by the U.S. Centers for Disease Control and Prevention (CDC) and directed by Paul Smokowski, Ph.D., an associate professor at the UNC School of Social Work. Researchers interviewed 281 Latino youths and parents in North Carolina and Arizona, asking questions about a wide range of measures of lifestyle and mental health. Participants answered according to how much they agreed with each question (for example, from “not at all” to “very much”), resulting in scores on a scale for each measure.

“We found teens who maintain strong ties to their Latino cultures perform better academically and adjust more easily socially,” Smokowski said. “When we repeated the survey a year later, for every 1-point increase in involvement in their Latino cultures, we saw a 13 percent rise in self-esteem and a 12 to 13 percent decrease in hopelessness, social problems and aggressive behavior.

“Also, the study showed parents who develop a strong bicultural perspective have teen children who are less likely to feel anxiety and face fewer social problems,” he said. “For every increase in a parent’s involvement in United States culture, we saw a 15 to 18 percent decrease in adolescent social problems, aggression and anxiety one year later. Parents who were more involved in U.S. culture were in a better position to proactively help their adolescents with peer relations, forming friendships and staying engaged in school. This decreases the chances of social problems arising.”

“Such results suggest that Latino youth and their parents benefit from biculturalism,” Smokowski said.

The findings are presented as part of a series of articles featured next month in a special issue of The Journal of Primary Prevention, a collaborative initiative between UNC and the CDC. The special issue presents the latest research on how cultural adaptation influences Latino youth behaviors – including involvement in violence, smoking and substance use, as well as overall emotional well-being – and offers suggestions for primary prevention programs that support minority families.

“Bicultural adolescents tend to do better in school, report higher self esteem, and experience less anxiety, depression and aggression,” said study co-author Martica Bacallao, Ph.D., an assistant professor at the University of North Carolina at Greensboro, whose work is also featured in the special issue. “It is interesting that, in order to obtain these benefits of biculturalism, adolescents and parents often need to do the opposite of what their natural tendencies tell them. Parents who are strongly tied to their native cultures must reach out to learn skills in the new culture. Adolescents who quickly soak up new cultural behaviors should slow down and cultivate the richness in their native cultures.”

Smokowski added: “The burgeoning size of the Latino population and the increasingly important roles that Latino youth will play in American culture are worthy of community attention. Communities can either invest in prevention to nurture Latino youth as a national resource or pay a heavy price later in trying to help these youth address social problems such as substance use, aggression or dropping out of school; all of which often results from the stress of acculturation.”

Along with Smokowski and Bacallao, Rachel L. Buchanan, Ph.D., assistant professor of social work at Salisbury University in Maryland, was a co-author of the study, titled “Acculturation and Adjustment in Latino Adolescents: How Cultural Risk Factors and Assets Influence Multiple Domains of Adolescent Mental Health.”

To learn more about the Latino Acculturation and Health Project, go to: http://www.unc.edu/~smokowsk/Main_Page.html

 

Source: Newswise

How is the recession changing Hispanics as consumers?

By David Morse and Maria Gracia Inglessis

How is the economy affecting the Hispanic market? The answer, at this time, may be inconclusive. In a recent article by Terry Soto, president & CEO of About Marketing Solutions, she cites data from Experian and concludes that Hispanics may be "recession proof" or at least "recession aloof." For example, 34 percent of Hispanics are optimistic about their finances in the coming year (compared to 25 percent of non-Hispanics), and 29 percent of Hispanics are more positive about the U.S economy (compared to 21 percent of non-Hispanics).

Hispanics may also be less burdened with financial difficulties because they are not as involved in some of the most problematic areas. According to Packaged Facts' analysis of Experian Simmons Summer 2008 National Consumer Survey data, 46 percent of Hispanics use credit cards compared to 72 percent among non-Hispanics, and only 15 percent of Hispanics own investments (compared to 43 percent of non-Hispanics). The Simmons data also highlight that Hispanics are more likely to rent their homes than non-Hispanics. This makes them less likely to be affected by the mortgage foreclosure.

There are some categories in which Hispanics are spending more than their non-Hispanic counterparts. According to the Packaged Fact Study, Hispanics spend more in:

-Food at home (8.3 percent vs. 6.8 percent - of total annual expenditure)

-Poultry (0.5 percent vs. 0.3 percent)

-Fresh vegetables (0.6 percent vs. 0.4 percent)

That Hispanics spend more in food is not surprising. They have bigger households and like to cook from scratch. But interestingly enough they are also spending more in less expected areas, for example, in apparel and services (4.8 percent vs. 3.7 percent). What is more, Hispanic men are more likely to keep up with the latest fashion (25 percent vs. 17 percent). Also...

-They like to experiment with new styles (26 percent vs. 14 percent)

-Buy the latest fashion every season (17 percent vs. seven percent)

-Enjoy any kind of shopping (28 percent vs. 13 percent)

 More Hispanics say they buy recycled paper products (men 40 percent vs. 34 percent and women 45 percent vs. 39 percent). Also, Hispanics are more likely to claim that they would pay more for environmental friendly products (men 42 percent vs. 35 percent and women 47 percent vs. 40 percent).

But additional data from the Nielsen Homescan Hispanic Panel present a less positive view on how Hispanics perceive that the current downturn is affecting their lives. The data show that about half of Hispanics feel that their household is somewhat or much worse financially now than a year ago, and 37 percent feel that their or their spouse's job is not too secure or not secure at all. More than 70 percent feel that their level of savings to deal with potential disasters is not secure.

 According to this study, not only do Hispanics have a less positive outlook, they have changed some of their consumer habits; for example, in the past three months they are eating at fast food restaurants less often (64 percent vs. 47.9 percent of non-Hispanics), and close to 45 percent are bringing lunch to work more often (compared to 36 percent of non-Hispanics).

 

Source: RetailWire

Survey: Hispanic Women Still Spending, Despite Economic Worries

By Lucia Moses

Hispanic women report they’re very stressed about the economy and losing their jobs, but far from snapping shut their purses, many of them are still spending, according to a new survey from People en Español.

The Time Inc. magazine’s annual HOT study, which stands for Hispanic Opinion Tracker, found 43 percent of Hispanic women, versus 36 percent of the general market, are very stressed about the economy.

Yet nearly half—47 percent—say they’re spending the same or more, compared with 38 percent of the general market.

“At the core is the staples and their family,” said Lucia Ballas-Traynor, publisher of Español. “They’ve increased their spending on groceries because they’re spending more time cooking at home. They’re inceasing spending on beauty products, because when you’re surrounded by doom and gloom, beauty is at the core of Latina women, and it makes them feel happy.”

Español’s reliance on the auto and retail ad categories has hurt it as the economy has soured. This year through June, ad pages fell 32.7 percent to 266, per the Mediaweek Monitor.

Ballas-Traynor hopes the survey will help her appeal to marketers in those categories where Hispanic women reportedly are still spending. “This market could present an opportunity for brands that haven’t been talking to us before,” she said.

Due out June 17, the study was conducted by phone for People en Español by Cheskin Added Value. Cheskin polled 1,500 women ages 18-54, including 1,000 Hispanic and 500 general market consumers, in March and April.

Source: MediaWeek

Ethnic Power Fuels Store Growth

Desperate developers and mall owners are benefiting from the population trend.

By Laura Kennedy

Stores catering to ethnic groups are a hot commodity for mall owners. As thousands of storefronts go empty, ethnic targeted retailers and services are providing glimmers of hope for struggling real estate owners and developers. Mall owners desperate to fill space will offer low-rent deals to such retailers.

The new ethnic stores can transform an entire shopping center. For one thing, the fast growing group of retailers can attract customers from far away. And once they’re at the mall, those shoppers tend to stay and make purchases at neighboring stores, too.

“What’s unique about ethnic centers is they can become destination centers,” says Reza Etedali, CEO and founder of Reza Investment Group, a retail real estate investment advisory firm that puts a special focus on ethnic retail developments. “People reach [out] to go look for them. Sometimes you don’t need to be in a high-profile location as long as you have the right tenants.”

La Gran Plaza in Fort Worth, Texas, is a prime example. Five years ago, The Legaspi Company developers bought the 1.1 million square foot mall when it was only 10% occupied. Now, after redevelopment and repositioning to the Hispanic market, the mall is 85% full.

The mall houses Hispanic targeted retailers, such as grocery stores and Mexican apparel stores, as well as a Radio Shack, Foot Locker and Burlington Coat Factory. Jose Legaspi, who runs the Legaspi Company, says that the primary market for the center is customers who live 20 to 30 miles away. “At a regular mall, they’re lucky if they can pull from five miles,” he says.

Ethnic targeted grocery stores also tend to have more-loyal customers than their broader-based supermarket counterparts, says Ian Brown, a senior vice president in California with Grubb & Ellis, the commercial real estate advisory firm. Meanwhile, “the traditional supermarkets are really having problems trying to figure out what their niche is,” he says.

Consumer loyalty is good for other retailers and service providers looking to drum up business in the same area. For instance, in California, Charles Schwab locates its investment services offices in the same shopping centers where popular Asian retailer 99 Ranch Market sets up shop; travel agencies, restaurants and others do the same.

Many ethnic retailers can stay busy amid downturns because they sell necessities, such as food and sundries, or provide basic services. Immigrants in particular have downshifted during the recession with more ease than other groups, according to Emil Morales, senior vice president of the multicultural sector at TNS, a market research firm. “They know how to be thrifty shoppers” at all types of stores, he says.

Owners will offer the new mall tenants low rents and perks. Look for mostly Asian and Hispanic stores to spur the growth, but some Middle Eastern retailers and restaurants also drive traffic in certain areas.

The expansion of the American palate is driving a more diverse clientele to the stores, buttressing the strong growth from the ethnic groups themselves. Developers can also capitalize on Americans’ and immigrants’ growing support of multiethnic offerings. Diamond Jamboree, a shopping center in Irvine, Calif., that opened last September, is distinctive in that it caters to many different Asian markets.

“Unlike other ‘ethnic’ plazas that cater to a specific immigrant group, by virtue of the fact [that the center is in] Irvine, it’s very pan-Asian,” says Thomas Tseng, a principal and cofounder of New American Dimensions, a multicultural marketing research firm. The center is anchored by Asian grocer HMart and features a Taiwanese coffee shop next to a Korean tofu restaurant, among other stores. Tseng and Etedali, both based in California, see the multiethnic trend spreading countrywide. “We’re seeing melting pot concepts where one grocer is not particularly focused on one ethnic group, but is focusing on a variety of ethnic groups,” says Etedali.

Ethnic buying power is rising, so the investments are good long-term bets. Hispanic buying power in the U.S. is set to grow by 46% over the next five years, while for Asians, the number will leap close to 48%, according to the Selig Center for Economic Growth at the University of Georgia. That compares with a likely 30% increase for the total U.S. population over that span.

Ethnic enclaves in California, Las Vegas, Atlanta and Chicago are particularly ripe for growth. Hispanic buying power in North Carolina as well as in Georgia will grow almost 60% in the next five years, and Asian buying power in each of those two states will increase around 55%.

 

Source: Kiplinger Business Resource Center

The Emerging Minority Majority

As new demographic estimates become available, I make it a practice to review the similarities and differences between the new numbers and last year’s estimates. This time around, the significance that the role ethnic households will play in future growth struck me, specifically the Hispanic segment.

As we all know, immigration has driven and will continue to drive the nation’s population growth. No single group has boosted growth more than the Hispanics segment. In 1990, the Hispanic population in the United States was 7.9 percent. Today, Nielsen Claritas estimates, Hispanics account for 15.5 percent. And if the segment continues to grow at a rate three times faster than the U.S. population in general, as a recent Goldman Sachs study suggests, investors must pay attention to this emerging group. To reinforce the importance of Hispanics, demographers at the Pew Research Center recently predicted that the United States will be a “minority majority” nation by 2050, Hispanics making up as much as 29 percent of the total population.

Ethnic shifts have already occurred in traditional gateway cities like Los Angeles, San Antonio and El Paso, Texas-border towns and booming coastal metros. While New York and Chicago served as magnets for newcomers at the turn of the 20th century, today’s immigrants from Latin America and Mexico typically head to Los Angeles, San Francisco, Miami and Atlanta. They settle in these places for the same reasons that earlier waves of Europeans landed where they did: Friends and family members had already formed self-sustaining ethnic communities. This is particularly true of less skilled immigrants who rely on kinship and informal networks to find work. They’re also attracted to areas whose climates are conducive to outdoor recreational activities and low costs of living. Not surprisingly, those markets with the highest proportion of Hispanics tend to sit along or near the Mexican border.

So I encourage serious investors to pay attention to the Hispanic market and its impact on the American landscape. If current trends hold true, no single segment may play a more important role in driving future growth and shifts in consumer trends.

By Terry Munoz

Source: National Jeweler

Predicting The Future: Hispanics In The 2010 Census.

Now that 2009 is before us, predictions for the future of Hispanics in the U.S. can look forward to 2010. Overall, the Hispanic lifeline is long and the outlook is good. However, what we think we know is changing. Call it the effects of a new era: the 2010 Census will bring about demographic revolution. Our prediction? Traditional stereotypes will be shattered as a new generation takes hold and the Hispanic household gets a makeover. 

Demographic Revolution: 

Hispanics will continue to accelerate as the largest minority in the United States. However, the growth is greater than what is demographically reported. Although, currently being reported to represent more than one in every eight Americans, Hispanics may truly represent more than what meets the statistic. 

When the 2010 census rolls out, it will include important changes. In previous years the Hispanic market has been referred to as “Hispanic or Latino”, now the market will be defined as “Hispanic, Latino or Spanish origin.” Also, in response to a very large percentage of Hispanics’ marking “Some other race”, the Census is considering removing this option all together. 

However the biggest change will be seen in how Hispanics are surveyed and reported: by ethnicity vs. race. The 2010 census will have changes that more clearly distinguish Hispanic as an ethnicity. Additionally, the federal government has mandated that “in data collection and presentation, federal agencies are required to use a minimum of two ethnicities: Hispanic and non-Hispanic.” 

So there you have it. “Hispanic” is an ethnicity, not a race. And for that matter, the only ethnicity required and considered by the U.S. Government to be worthy of segmentation. 

So then how does this change the way we compare and contrast segments? Currently, you see population segmentations including White, Hispanic, Black, Asian and other. After the 2010 census, data will accurately be sorted by Hispanic vs. non-Hispanic and/or Hispanic ethnic population divided by race. So when we truly look at the entire Hispanic market including all definitions of race (White-Hispanic, Black-Hispanic, Asian-Hispanic, etc.) the numbers may be greater than anticipated. 

Rise of a New Generation: 

As it has been reported and projected by many, the 2010 Census will confirm the rise of second generation Hispanics. Since the 1970’s, immigration has been the largest source of Hispanic population growth. However, as births in the U.S. continue to outpace immigration, Second Generation Hispanics will take over as the majority contributor of population growth. 

The Pew Hispanic Center predicts that in 2010 second generation Hispanics will account for 32 percent of the population and 56 percent of the overall Hispanic population growth. This fundamental change has important socio-economic and demographic data implications. 

With a low median age of 12.8 years old, second generation Hispanics will create future shifts in the composition of the market. The primary impact will be within the educational system as well as level of education obtained. Approximately one in seven students enrolling in U.S. schools is Hispanic. Education also has an impact on the face of the workforce and the average income earning potential. 

Also impacted is language. This becomes less of a question of capability and more of question of preference. As the second generation rises, the level of bilingual capabilities increases. While, the level of Hispanics who prefer to speak Spanish as a cultural connection holds strong. 

However, the second generation Hispanic reign will be short given their high fertility rates and the already substantial percentage their children represent. 

Household Makeover: 

Although the traditional married family remains the prominent household makeup, there are many shifts that are challenging traditional stereotypes. The Census predicts that by 2010, the average Hispanic household size will be 3.41 persons, compared to 2.56 nationally. 

One of the biggest changes is among Hispanic women. Although the divorce rate among Hispanics has increased, the majority of new single moms have never been married. This cultural metamorphosis began showing in 2007– the first year in U.S. history that more Hispanic babies were born to single women than to married. 

Another change is the definition of family. Households with 3 and more adults are more predominant in the Hispanic market, but they traditionally consisted of grandparents, parents and grandchildren. Now we will see that multiple adult homes are increasingly built on co-habitation of young singles, single moms or small families. 

The Census projects that by 2010 Hispanics will account for more than 48 million or 15 percent of the total U.S. population. But with the changes in specifying Hispanic as an ethnicity separate from race, that number could be greater. The challenge will lie in shifting how we see Hispanics within the overall population and breaking through traditional stereotypes to embrace the changing faces of today’s Hispanics. All will be proven April 1, 2010. In the meantime, we will keep looking forward and embracing the evolution of this dynamic market. 

By: Kelly Ravestijn

Sources: 
1. American Fact Finder United States Census Bureau. By Hispanic population and projections. 
2. United States Census Bureau; 2010 ACS note book 
3. Questions and Answers for Census 2000 Data on Race. United States Census Bureau 
4. Revisions to the Standards for the classification of Federal Data on Race and Ethnicity. Office of Management and Budget 
5. 2000 US Census Short Form. United States Census Bureau 
6. Overview of Race and Hispanic Origin: Census 2000 brief. United States Census 
7. The Rise of the Second Generation: Changing Patterns in Hispanic Population Growth. Pew Hispanic Center October 14, 2003 
8. The US Hispanic Economy in Transition: Second-Generation Wave, December 11, 2008. HispanicBusiness.com, 2008 
9. Race on the 2010 census: Hispanics and the shrinking white majority; January 1, 2005 
10. Cohabitation, Marriage, And Divorce. Data from the Center for Disease Control, 2002 
11. Unmarried Latinas’ rising birthrates are changing family dynamics. Iconoculture 2008 
12. Consumer outlook; Latina Moms 2008. Iconoculture 2008 
13. Mama Mia. Iconoculture 2008

Defining 'Get It' When It Comes to U.S. Hispanic Marketing

by Rochelle Newman-Carrasco

During the AHAA conference in Vegas this past week, there were several references to those who "get it." These references were either stated outright or implied. For example, right off the bat it was mentioned that the conference co-chairs, Grupo Gallegos' Ken Deutsch and Global Hue's Tracey Decker, were both non-Hispanic (an AHAA conference first). However, there was no doubt about their credibility, as their professional backgrounds have earned them great respect as U.S. Hispanic-marketing specialists.

Then there was an excellent panel featuring the 4A's Nancy Hill, the ANA's Bob Liodice and Adriana Eiriz of the CMO Council. Nancy Hill introduced herself with a comfortable level of bilingualism and shared some personal connections to both Mexico and Ecuador. It was her way of suggesting "I get it." She did not, however, just rely on that. She also spoke about her professional involvement with big agencies, small agencies, holding companies and independents: another "I get it" moment spoken from industry professional to industry professionals.

Bob Liodice acknowledged no ability to speak Spanish and refrained from doing so. In a way, it was also an "I get it" moment, suggesting in his tone and manner that he is well aware that our industry is tired of the uncomfortable and awkward moments when a non-Spanish speaker feels forced to say a few words in Spanish to a bilingual audience for no specific reason other than possibly to pander or brush off some high school memories. He gracefully spared us that. What he didn't say was that in the '80s as a brand manager at General Foods, he was an early adopter of U.S. Hispanic marketing practices in his business strategies. He also went on to join Televisa prior to joining the ANA. In other words, he, too, gets it. The clarity he exhibited during the panel quickly confirmed his level of awareness and interest in building the skill set of ANA members and creating a culture of CMOs that "get it" more often than they don't.

Keynote speaker Angel Martinez, CEO of Decker's Outdoor (home of Uggs and Teva), is of Cuban descent. He spoke of marketing as the rhetoric of business. His rhetorical skills were evident as he eloquently laid out the story of how his career in the shoe industry has informed his philosophies about branding and marketing. Nary a mention of U.S. Hispanic marketing in specific, but there didn't need to be. It was clear that we were being spoken to by someone who "gets it."

The second day included T-Mobile client Tim Switzer, who again, while non-Hispanic, clearly got it. He, too, made an "I get it" reference when he spoke about his past work with Nike and its lack of interest in marketing to Hispanics at a time when soccer was a brand priority. Following this, there was a compelling panel featuring Doug Darfield of Nielsen and Sterling Green, president of Spike DDB. This allowed for a different layer of "get it" to rise to the forefront. The panel addressed commonalities as well as tensions that exist between African-American agencies and U.S. Hispanic agencies, particularly as it relates to fighting over the "crumbs" (to quote Mr. Green) all too often allocated to support those initiatives falling under the convenient but questionable labels of diversity and multiculturalism.

Leaving Las Vegas, I was left wondering what makes the "get it" crowd so capable of accepting targeted marketing based on ethnicity and culture as a valid and important pursuit, vs. those who ignore it or, in some cases, are disdainful of both the marketing technique and of the consumers in question. Undoubtedly, much of what we talk about in conferences and here in the Big Tent becomes actionable when you're dealing with people who get it. Business obstacles are minimized when you're dealing with clients who get it.

Perhaps it's all about personal life experience and upbringing. Certainly that helps, but it can't be all there is. I have worked with many individuals for whom the U.S. Hispanic marketing arena is uncharted territory. Yet professionally they have been able to embrace the value and importance of this segmented marketing opportunity and act upon it. So I set out to classify the types of marketers I've known and see if I could find patterns that exist and qualities that distinguish the "get its" from the "never going to get its."

I drew an axis.

On one end of the horizontal I wrote "Enlightened." On the other end, "Frightened."

On one end of the vertical I wrote "Trial." On the other end, "Denial."

This created four quadrants. Two that "get it" and two that don't. Here's a description of each:

Enlightened and Trial: These are individuals or companies that understand all consumer behavior is influenced by culture and that have specific insight into the cultural nuances that define the U.S. Hispanic market, both collectively and in all of its various segmented forms. They are open to Hispanic marketing opportunities, so they embrace them on behalf of their brands, and they keep digging deeper. They are busy doing what marketers do: trying things. Creating initiatives that are well thought out, supporting them and activating them in order to generate desired or even unexpected results. Which sometimes they do and sometimes they don't, but that's not their sole measure of success. They're also measuring success by evaluating how their levels of enlightenment help to drive innovation and how their commitment to stay curious propels them to try new things.

Frightened and Trial: These are the individuals or companies that are, often justifiably, concerned about making mistakes or offending consumers. Perhaps they have heard horror stories about failed programs or poor agency partnerships. Nonetheless, they are willing to get over their fears and put possibilities in front of perfectionism. These are the brands that are trying to build their knowledge bases but don't get stuck in analysis paralysis. In my experience, their efforts to enter uncharted territory or to innovate in spite of their fears are often richly rewarded. This is the category into which I would say most early adopters fall. U.S. Hispanic marketing is full of many success stories from clients who started in or even currently exist in this quadrant.

Frightened and Denial: This category is tricky, because these clients/companies can often look like their Frightened/Trial counterparts. The difference is that they will never greenlight a program. They will, however, have their agency partners jump through hoop after hoop to bring them data and persuasive arguments that they say might change their positions. Nonetheless, their positions never change. No matter what is brought before them, they will not invest in this space. Their motives may range from professional lack of interest to personal objections that they are not willing to admit. Some, for example, are concerned that marketing to Hispanics will damage their brands vis-a-vis the non-Hispanic population, although they'll never tell you that. They live in fear and are often found keeping their heads in the sand.

Enlightened and Denial: Finally, there are those who know all the data, all the facts, and don't quarrel with them. They simply don't want to associate their brands with Spanish-speaking consumers for a variety of reasons, including a personal belief that English should be the official language of the U.S. Talk to them about bilingual consumers who are reached in English, and they'll reject the notion that these consumers are at all distinct from any other English-speaking consumer being targeted via existing methodologies. Whether you agree with them or not, they are at least straightforward and forthcoming in their approach. They won't waste your time like the Frightened/Denials will. They are simply not interested, and they will let you know that so you can save resources and move on.

I should add that not all non-participants in U.S. Hispanic marketing are in denial. There are those who choose not to allocate dollars toward the U.S. Hispanic market in any specifically targeted way, and do so purely based on sound business practices. Sometimes there are legitimate business reasons governed by the realities of a specific brand that make it impossible to allocate budget specifically toward a Hispanic marketing program. (I can't think of any, but I do know they exist.) If this is your situation, you owe it to yourself to make sure your decisions are not rooted in denial but rather in smart decisions driven by adequate analysis and discovery. The measure of whether you are in a Denial or Trial quadrant is if your willingness to address the U.S. Hispanic market would flourish if you were in charge of a different product or service line where the upside potential of the Hispanic marketing opportunity could not be called into question.

So, ask yourself: When it comes to U.S. Hispanic marketing, do you get it? Are you working with people who get it? Do you think there is anything to get? If you want to share, I'd love to hear what "getting it" means to you.

 

Source: AdAge

Hispanic Internet Users Are Avid Downloaders Of Digital Content & Aggressively Adopting Broadband

By Scarborough Research

Hispanic Internet Users* are avid downloaders of digital content, according to consumer and media research firm Scarborough Research. This is one of many findings on Hispanic Internet usage trends in a new complimentary report from Scarborough. 

Scarborough’s analysis finds that Hispanic Internet Users are 21% more likely to download digital content** than the average adult online. Forty-two percent of Hispanic Internet Users have downloaded some form of digital content during the past 30 days, compared to 35% of the total Internet population. Music is the top download category for both Hispanics and the total Internet population. Almost one-third (32%) of Hispanic Internet Users and almost one-quarter (24%) of all Internet users have downloaded music during the past month. 

Hispanics have been taking advantage of the national expansion of broadband, and their rate of adoption has mirrored that of the total U.S. population. Currently, 68% of Hispanic Internet Users* have a broadband*** connection in their household. Broadband penetration rates have grown from 13% in 2002 — an increase of more than five-fold. This is roughly the same pace of broadband adoption of adult Internet users overall. Seventy-one percent of U.S. Internet users currently have broadband at home, growing from just 15% in 2002. 

“Increased high-speed Internet access among Hispanics is opening the door for online businesses to establish brand loyalty with this consumer group,” said Gary Meo, senior vice president of digital media services, Scarborough Research. “Offering Hispanics new and creative ways to interact with a brand online — particularly via downloaded digital content — could go a long way in successfully marketing to the Hispanic adult.” 

Given the growth of broadband and content downloading in this consumer group, it is no surprise that Hispanic Internet Usage overall has reached a critical mass. The majority (54%) of Hispanics are now online. In fact, Internet access among Hispanic adults has increased 13% since 2004. By contrast, Internet access by all consumers nationally grew eight percent during this time period. 

As a part of their study, Scarborough examined 13 local markets with higher-than-average concentrations of Hispanic adults and found distinctive Internet usage patterns and local variations. For example, Miami is the top Hispanic market for broadband penetration. Seventy-six percent of Hispanic Internet Users in Miami have broadband at home. By contrast, El Paso, Dallas, Fresno, CA, and Harlingen, TX, are the markets in which Hispanic residents are least likely to have a broadband connection. 

Phoenix is the leading local market for Hispanics who download digital content. Sixty percent of Phoenix’s Hispanic Internet Users downloaded digital content during the past month. El Paso, Miami and Dallas are the markets where Hispanic Internet Users are least likely to download digital content. 

To download study CLICK on link below: 
http://www.scarborough.com/press_releases/The%20Power%20of%20the%20Hispanic%20Consumer%20Online%20FINAL%203.19.09.pdf

* Hispanic Internet Users are those Hispanics who access the Internet 
** “Download” refers to the download of any of the following content during the past month: podcasts, video games, music, other audio clips, television programs, or other video 
*** Broadband connection is defined as having a cable modem or DSL Internet connection in the household

What The F**K is Social Media?

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What The F**K is Social Media?

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Market Evolution: Are you ready for the fight?

LATINO ADVERTISING PIONEER, VICTOR ORNELAS, ALLIES WITH MATADOR MARKETING GROUP

Mentor and Former Intern Reunite “to Fill Strategic Void” in Latino Marketing 

FORT WORTH, TEX. (MArch 2, 2009) — Victor Ornelas, founder of Ornelas & Associates and a pioneer in Hispanic advertising, has joined forces with Matador Marketing Group, a Latino marketing and advertising firm located in Fort Worth, Texas, it was announced today by Luis Caballero, president of Matador.  The alliance reunites Ornelas and Caballero 18 years after Caballero launched his career as an intern at the renowned Dallas agency.

“We have recruited one of the industry’s champion matadors,” said Caballero. “Victor is a mentor, coach, sage and dynamo for our firm as we seek to engage national clients interested in tapping the fast-growing Latino marketplace in a more meaningful and profitable way.”

Ornelas – whose agency, Ornelas & Associates, was once called “one of the fastest-growing Hispanic advertising agencies in the country” by The New York Times – was honored by Hispanic Business magazine as National Entrepreneur of the Year in 1994. His experience includes Latino advertising campaigns for high-profile national accounts such as Anheuser-Busch Inc., Bank One Corporation, Borden, Southland Corporation/7-11 Stores, Wrangler Jeans, Pepsi, Nissan, Mobile and GTE/Verizon, among others. In 2005, Ornelas took a hiatus from the advertising industry, to build and manage a chain of five high-tech golf improvement centers in California.

Ornelas also has served as the secretary/treasurer on the national board of directors for the American Association of Advertising Agencies, the industry’s leading association, as well as the chairman of the AAAA’s North Texas-Oklahoma Council.

“Like my former agency, Matador is a maverick brand that is not shackled by the constraints of holding company ownership,” said Ornelas. “It’s a spirited, independent shop with the expertise, sound strategies and operating efficiencies to do what other Latino agencies can’t.”

Ornelas and Caballero bring to the table more than 50 years of marketing and advertising agency experience, as well as a unique marketing perspective derived from their combined work on both the client and agency side of the industry. Matador will leverage this experience to fill a perceived void in the marketplace and provide national clientele the added value of “Branding at the Point of Contact.”

According to Yankelovich and the U.S. Census Bureau, by 2010 nearly one person out of every six in the United States will be of Hispanic origin and Hispanic purchasing power is projected to reach $1.2 trillion or 9.2 percent of all U.S. buying power. Yet, as companies struggle to respond to the economic recession, some are cutting Latino marketing budgets, or not even funding them in the first place.”

“This is a critical strategic error,” Ornelas said. “We need to resurrect those Latino marketing budgets. We are in a position to provide extraordinary value to clients who are willing to invest those dollars into the growing Latino Market.”

“There is a gaping void in the strategies used to effectively engage Latino consumers,” said Caballero. “Typically, many brand marketers and their multicultural agencies mirror the traditional advertising campaigns and strategies. Matador employs a sharply focused philosophy that is media agnostic, culturally relevant and engaging in a personal way that a mass advertising approach, alone, cannot duplicate.”

The philosophy – branding at the point of contact – and Matador’s Brand Roots™ process offers clients a new, more efficient tool for gaining traction and fostering brand loyalty among U.S. Latinos. “A tree grows from the roots up, not from the branches down. Brand Roots engages on a social and culturally relevant level, the point of contact, to secure the brand-customer relationship,” said Caballero.

Caballero honed his insights devising and implementing multicultural and field marketing campaigns for Fortune 500 companies such as Yum! Brands, Subway, Church’s Chicken, Papa John’s Pizza and others, and directed Hispanic agencies such as Cartel Creativo and Dieste. He also worked on Hispanic accounts for Burger King and Coca-Cola while at Sosa & Associates (now Bromley Communications) in San Antonio.

“Field marketing has long been considered an ugly step sister to the more glamorous 30-second television spot or spread print ad,” said Caballero. “We believe that the marriage of field marketing-based strategies and keen cultural insights will yield better results for marketers. In my experience many initiatives that became national campaigns were created, tested and incubated in the field. By the time mass advertising was used to support the initiative we already had momentum and traction to ensure success.”

 

About Matador Marketing Group

Launched in October of 2008, Matador Marketing Group specializes in branding at the point of contact to the Hispanic community. The Fort Worth-based agency is owned and operated by Luis Caballero, a 20-year corporate-marketing and advertising-agency veteran. For more information about Matador Marketing Group visit www.thebullfight.com or call 817-546-8372.

Hispanics Emerge as Influential Force in U.S. Consumer Economy According to Packaged Facts

February 25, 2009

Via Marketwire

 The 46 million Hispanics living in the United States wield powerful influence on the American consumer economy, with buying power that totaled more than $980 billion in 2008, according to market research publisher Packaged Facts in the all-new report, "The Hispanic (Latino) Market in the U.S.: A Generational View, 7th Edition.

Packaged Facts has been tracking the U.S. Hispanic market since 1996, and predicts that the buying power of Hispanics will continue to grow at a relatively rapid pace undeterred by the present dreary outlook for consumers as a whole. Ultimately, Latino buying power is projected to reach $1.3 billion in 2013, with a cumulative growth rate of 31%.

"Latinos will change the profile of American society over the next four decades. The Hispanic population will grow much quicker than other population segments, and Hispanic consumers will represent an increasing percentage of the American consumer base," says Tatjana Meerman, publisher of Packaged Facts.

Gen-Y Latinos (ages 18-29) and Gen-X Latinos (ages 30-44) are particularly influential, because they control more than 60% of all Hispanic buying power. These young Hispanic adults generate significant consumer spending both for themselves and their families. Consequently, they have a disproportionate impact on a number of industries in the American economy, including entertainment, apparel, and children's items.

"The Hispanic (Latino) Market in the U.S.: A Generational View, 7th Edition" highlights the attitudes and behavior of Hispanic adults ranging from Gen-Y and Gen-X Latinos through younger and older Boomers. Trends, opportunities shaping the Hispanic market, demographic characteristics of the Hispanic population, assessment of Hispanic consumers' buying power, in-depth analysis of immigration and acculturation trends, and much more are examined in the report. Profiles of seven Hispanic national segments (Mexicans, Puerto Ricans, Cubans, Salvadorans, Dominicans, Guatemalans, and Colombians) are also provided. For further information visit: http://www.packagedfacts.com/Hispanics-1783079/.

 

Source: Ajax World Magazine