Latin2.0

Number of 'majority minority' US cities grows-Brookings

2011-09-02T21:57:00.000-05:00

Number of 'majority minority' US cities grows-Brookings

Commentary: Blacks Feeling Isolated in Majority Latino Classrooms

2011-09-02T21:54:00.000-05:00

Commentary: Blacks Feeling Isolated in Majority Latino Classrooms

Now You’re Speaking My Language.

2009-07-10T20:48:00.000-05:00

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

2009-07-10T20:47:00.000-05:00

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

2009-07-10T20:46:00.000-05:00

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

2009-07-10T20:45:00.002-05:00

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

2009-07-10T20:45:00.001-05:00

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?

2009-07-10T20:44:00.002-05:00

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

2009-07-10T20:44:00.001-05:00

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

2009-07-10T20:42:00.000-05:00

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

2009-05-20T08:33:00.002-05:00

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.

2009-05-19T11:24:00.002-05:00

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

2009-04-08T08:59:00.003-05:00

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

2009-03-23T11:18:00.002-05:00

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?

2009-03-19T18:53:00.001-05:00

Check out this SlideShare Presentation:

What The F**K is Social Media?

View more presentations from Marta Kagan.

Market Evolution: Are you ready for the fight?

2009-03-19T18:38:00.002-05:00

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

2009-03-02T17:10:00.002-06:00

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

2009-02-27T08:51:00.001-06:00

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

The rise of multicultural marketing

2009-02-25T08:25:00.003-06:00

February 24, 2008 

by: Maria Lopez-Knowles

When Barack Obama took the oath of office last January, he redefined America – not just this country and its brand, but its constituency as well. In many ways he is living proof of a phenomenon that demographer’s have been predicting for quite some time: descendents of the early settlers will be a minority by 2050 (then, a correction last year – 2042), and traditional minorities, will be the majority.

What does that mean to marketers, to brands, to this country, to the long-held American ethos?

I believe that it means that maybe we should put technology aside for a moment, and focus on the American consumer for a bit. We should identify how he/she has changed over the last four decades (and will continue to change), what he/she looks like (not just demographically, but psychographically), how he/she behaves, and alas – how connected he/she is to a network? Regarding the all important network, we should also identify the network’s composition, how he/she interacts with said network (off-line, on-line, linguistically, culturally), and how we marketers can connect with the network via the consumer.

Multicultural markets come in many shapes, hues, and sizes. The largest multicultural segment in the US is the Hispanic market – the largest minority in this country. How does one market to this group in a way that resonates with the target?

Many marketers are well aware of the data surrounding Hispanics (particularly, US born Hispanics). They are extremely connected. Not just with people, but with technology. They over-index on cell-phone usage, social networking, blogging, recommending products/services to family and friends; indeed, they are brand influencers. Yet, few truly understand how to market to them effectively and affectively (reach AND touch).

Most advertisers bifurcate the Hispanic market by linguistics – if they are immigrants, we’ll market to them in Spanish, if they are US born, we’re reaching them with our current English-language general market campaigns, so we’re covered. That assumes reach alone is enough to make an emotional connection that will lead to brand awareness/consideration. More importantly, it erroneously presumes that assimilation happens in two generations; the reality is the path to assimilation takes three generations. So if you think you are reaching the second-generation in a way that resonates with them via English-language alone, you are mistaken. This target lives in two worlds. It’s not about either/or (Spanish/English), it’s about AND. We’re hybrids.

As our new president so eloquently stated in his speech regarding race last year, he couldn’t deny the black community or his white grandmother…because by doing so he would in essence deny himself (and this country). Multicultural America doesn’t have to choose one or the other – it can/and does, live in more than one culture, language and world. Marketers need to deeply discern this multiculturalism, and market to this new reality if they are going to be successful in the next generation.

As Bruce Springsteen so aptly sang when he kicked off the We Are One concert in celebration of Obama’s inauguration: Come on up for the rising. Indeed, come join us America.

Source: IPG Emerging Media Lab

Social Media Marketing Is A Multicultural World

2009-02-20T16:17:00.002-06:00

February 19, 2009

by Felipe Korzenny and Lee Vann

Social media is now ubiquitous. Usage of blogs, social networks, and video sharing sites is increasing rapidly, and millions of people now look to social media sites as their primary source of news, opinion, and entertainment. As we witness this dramatic shift from traditional to social media, we believe it’s important to examine its cultural dimensions - that is, who is driving this shift, what are the cultural factors behind it, and what are the implications for marketers seeking to reach specific ethnic/cultural groups via social media?

We recently conducted an analysis of newly collected data to examine the patterns of social media behaviors of different ethnic/cultural groups in the U.S. The data come from the Florida State University Center for Hispanic Marketing Communication with the support of DMS Research from a national online sample of nearly 2,500 people with approximately 500 cases in each of the following cultural groups: Hispanics who prefer English, Hispanics who prefer Spanish, Non-Hispanic Whites, African Americans, and Asians in the United States.

We aggregated information to find out what ethnic/cultural groups are more likely to visit social networking sites. We found broad diversity in social media behaviors among different ethnic/cultural groups and that emerging minorities visit social networking sites more frequently than non-Hispanic whites.

Percent of respondents who visit social networking sites more than 2 or 3 times a month:

English-preferring Hispanics, 36%
Asians, 34%
Spanish-preferring Hispanics, 27%
African Americans, 26%
Non-Hispanic whites, 18%

We then broke out the data for leading social networks, MySpace and Facebook, to see if there are any groups leading usage of the most popular social networking sites - again, minorities lead the way, with English-preferring Hispanics being twice as likely to visit MySpace regularly than non-Hispanic whites. The relative importance of emerging minorities as compared with the traditional majority points to a major shift in social influence.

Percent of respondents who visit MySpace or Facebook “regularly”:

English-preferring Hispanics, 44% (MySpace) 18% (Facebook)
Spanish-preferring Hispanics, 35% and 13%
Asians, 31% and 18%
African Americans, 29% and 12%
Non-Hispanic whites, 22% and 7%

These data are interesting, but in order for these findings to be useful and actionable for us as marketers, we need to determine the reason for the strong representation of ethnic minorities on social networking sites and how to best engage with this audience. We believe that there is a mix of cultural, demographic and market factors that make social media particularly appealing to emerging minorities.

Demographically, ethnic minorities are younger than non-Hispanic whites. It’s no secret that younger people in general are more likely to adopt new technologies, particularly technologies that enable communication and provide social connectivity. This age gap between minorities and non-Hispanics only partially explains the gap in social media involvement.

In order to analyze the influence of age on social media behavior, we divided respondents into two segments, those 35 years of age and younger and those 36 years of age and older. The following shows that people 35 and younger of all cultural backgrounds are more likely to use social media, with Hispanics who prefer to communicate in Spanish lagging behind. Young Spanish-preferring Hispanics may lag because they are likely to be newer to the Internet, and also because their friends and relatives are less likely to be online due to economic and access factors. While Hispanics in general are aggressively getting online, those less acculturated are still somewhat less represented in the digital realm today.

Percent of respondents 35 and younger who visit social networking sites more than 2 or 3 times a month:

English-preferring Hispanics, 58%
Asians, 58%
Non-Hispanic whites, 57%
Spanish-preferring Hispanics, 33%
African Americans, 33%

When examining the usage of social networking sites among those 36 and older, we find that older Hispanics, regardless of language preference, are more active, especially when compared non-Hispanic whites within the same age group.

Percent of respondents 36 and older who visit social networking sites more than 2 or 3 times a month:

English-preferring Hispanics, 24%
Asians, 24%
Spanish-preferring Hispanics, 23%
African Americans, 17%
Non-Hispanic whites, 13%

This substantiates the notion that age is only a partial explanation for the higher usage of social media among Hispanics and other ethnic minorities. Culture and market factors also play an important role in promoting online social connectivity among these groups.

Culturally, ethnic minorities tend to be drawn to collectivistic values and often look to one another to help guide decisions and opinions. In addition, ethnic minorities are more likely to leverage social networks to communicate with groups of family and friends who are geographically dispersed. Social media facilitates such collective sharing of information and communication.

In addition, market forces are driving ethnic minorities to use social media. There is a dearth of culturally relevant and in-language content available online. As a result, ethnic minorities tend to be proactive and create and share their own content and social networks are ideal platforms for publishing and distributing such original content.

Social networking services allow people to organize and enhance their relationships online, but regardless of technology, culture is still the glue that bonds people together. Marketers seeking to reach ethnic minorities through social media must reinforce and connect with the culture of their target audience if they seek to strengthen their clients’ brands on social networks - doing so requires a strategic long term approach that should include the following elements:

Define your objectives

Using social media can accomplish a number of business objectives. Do you want to advertise a new product? Gather research? Provide customer service and build goodwill? Knowing what you’re looking for will make it much easier to find.

Understand your audience and be strategic

A successful social media strategy requires a clear definition of objectives, understanding o your audience and a strategy for engaging them. Consider the cultural motivations that are driving your target audience to social media. Are they there to talk about music? Are they keeping in touch with relatives overseas? Are they there to connect and share their collective culture? What language are they using? They may be doing all of these things and more, but if you can determine what’s drawing your audience to social media in the first place, you’ll have a better chance of engaging them when you join their conversations. Building and maintaining conversations with a target audience requires research, careful planning and a strategic approach.

Dedicate resources to proactively engage your audience with timely and relevant content

Ethnic minorities are turning to social networks to express themselves, connect with their culture and communicate with each other. To be successful, marketers must be open to engaging audiences with timely and relevant content that stimulates feedback and sharing. Engaging in meaningful conversations is the goal of social media marketing and doing so requires a deep understanding of needs, openness to negative commentary and dedicated resources. A social media presence is worthless if it lies dormant.

The time is now

Few marketers are proactively targeting ethnic minorities online and even fewer are leveraging social media to do so. A first mover advantage is available for those that devote the time and resources to engage these critical audiences in ways that they find meaningful. The fact is that we now have an unprecedented ability to reach and interact with ethnic minorities; and companies that deliver value to this segment today will be rewarded with the long-term loyalty of this market.

Source: MediaPost

Growth of Spanish language driving social evolution in U.S.

2009-02-17T10:42:00.002-06:00

February 15, 2009

BY FABIOLA SANTIAGO

The United States is the world's second-largest Spanish-speaking country, surpassed in the number of Spanish speakers only by Mexico, and to measure the influence of Spanish in contemporary mainstream America one need only to channel-surf.

On public television, there's Gwyneth Paltrow on a ride through the Catalonian countryside in a convertible, showing off her considerable Spanish vocabulary to chef Mario Batali, who's not bad himself. Paltrow says she's made learning Spanish a priority for daughter Apple. She buys DVDs in Spanish, and ''Dora, la exploradora'' is Apple's favorite cartoon character.

''Per-r-r-r-fecto,'' Paltrow says, demonstrating her deftness at rolling her r.

On another channel, the preteen generation is also speaking Spanish in a joint movie production between Disney and a Spanish company. The American Cheetah Girls are in Barcelona and they're singing about ''a world united by music'' and speaking sporadic Spanish without any translation or subtitles for viewers. Ditto for the toddlers watching Handy Manny help his Spanish-speaking neighbors fix stuff with the help of his talking tools.

Is speaking Spanish, once vigorously shunned by English-only movements, becoming trendy in the United States?

''Something profound and historically significant is happening with the momentum of Spanish, and it's having an impact on the social and cultural fabric of the United States,'' says Eduardo Lago, executive director of the New York outpost of Instituto Cervantes, one of the most important cultural organizations in Spain.

Spanish is ''a fact of life,'' says Ana Roca, a Florida International University linguistics professor and a coordinator of next week's national ''Spanish in the United States Conference'' at the Biltmore Hotel in Coral Gables.

''You'll find a tremendous variety of Spanish being used in the United States today,'' Roca says. ``We used to never think of Spanish speakers in Georgia, North Carolina, but the demographics have changed, and the profile today is a lot more complicated than it used to be 25 years ago.''

A HUGE PHENOMENON

At close to 40 million people, the tremendous growth of the Hispanic population -- the country's fastest-growing linguistic minority -- and the widespread use of their native tongue isn't lost on the Spanish Motherland.

Not only are the king and queen of Spain on an official visit to South Florida -- a region hailed by linguists as a showcase of the powerful presence of Spanish -- but the prestigious Instituto Cervantes has devoted a weighty 1,200-page book to the analysis of Spanish in the United States.

In the three months since Enciclopedia del español en los Estados Unidos was published by Santillana USA, the Doral-based division of the Spanish giant, the book has sold 9,000 copies, and a second printing is under way.

The reference book offers more than 80 articles on issues such as the vast literary and theatrical productions of Miami and New York, the regional linguistic differences between Cubans, Mexicans, Puerto Ricans and Dominicans, and the future of bilingual education and Spanglish. The book dissects speech patterns, gathers copious statistics on language, culture and economics, and lists the most important players in language and culture -- including Instituto Cervantes, established by the Spanish government in 1991 to promote Spanish with outposts in Albuquerque, Seattle and Chicago.

Gathering vast amounts of historical and statistical data involved some 70 collaborators across the country and in Spain, said coordinator Humberto López Morales, secretary general of Asociación de Academias de la Lengua Española in Madrid.

''Our motivation was clear,'' López said. ``There was a lot of widespread information that was being published here and there in individual articles, but we wanted to both corroborate the facts through research and to collate it all in a tome where it could be easily accessed through the indexes.''

Certainly, Hollywood's embrace of Spanish fluency -- Woody Allen's Oscar-nominated Vicky Cristina Barcelona featured fast-paced Spanish dialogues between Penélope Cruz and Javier Bardem -- has had an impact on the mainstream acceptance of Spanish. But some of the most significant recognition of the last decade has come from the publishing industry.

Spain's major publishers have outposts in Doral, and most major U.S. publishers now also publish books in Spanish. A hard sell many years ago, many prominent daily newspapers in Florida, Texas, New York and California publish Spanish-language editions in print and online. Add to this dozens of independent magazines and literary supplements published in Spanish all over the United States, with their print and online versions available worldwide.

''The literary production is tremendous,'' says Gerardo Piña Rosales, the New York-based director of Academia Norteamericana de la Lengua Española (ANLE), the American arm of the Spanish Academy, and author of various essays in the book.

The official recognition by Spain of U.S. Spanish speakers is quite meaningful in the academic world.

''It's an acknowledgement not only of what has been happening demographically, but of the cultural contributions U.S. Hispanics have been making for many, many years in literature, the media, film, documentary, dance, theater,'' says Uva de Aragón, a Miami poet, essayist and novelist who's also associate director of the Cuban Research Institute at FIU.

ACROSS THE COUNTRY

South Florida's vast Spanish-language culture is featured prominently in the enciclopedia. But consider these telling snippets about the prevalence of Spanish elsewhere: New York Mayor Michael R. Bloomberg takes weekly lessons in conversational Spanish from a Colombian tutor who comes to City Hall. More than 50 years after its Broadway premiere, West Side Story is returning in a bilingual production. Much of the singing and speaking is in Spanish. The musical was performed last December in Washington, D.C., to good reviews. One critic called Arthur Laurent's decision to translate dialogue and songs to Spanish ``a stroke of genius.''

Are the Spanish reconquering America?

''I wouldn't go so far,'' says Piña, and his colleagues agree.

The shortcomings are still many: Hispanics are worried that the new generation is not speaking Spanish well, or not speaking it at all. Americans don't consider speaking a second language important enough to devote funding to quality bilingual education.

''I don't subscribe to the view that English is overwhelming and that it will overpower Spanish and make people forget the mother tongue,'' Lago says. ``The momentum of Spanish is unstoppable, the numbers tell the story -- but I don't think a triumphant posture is appropriate.''

But what's certain, linguists says, is that a significant social evolution is taking place.

''The public needs to realize that Spanish was the first European language used in what is now the United States,'' Roca says. ``It was used in the 1500s, preceding the English-speaking colonizers who went to New England. Before them, we had Spanish-speaking colonizers in Florida.''

As for the king and queen of Spain, they're reigning over the ''¡Viva España!'' theme of The Food Network's South Beach Wine & Food Festival, described by organizers as ``an unprecedented tribute to the wines and foods of Spain.''

The Enciclopedia del español en los Estados Unidos was presented to the king and queen last fall at the annual dinner the monarchy hosts to celebrate the Oct. 12 discovery of the Americas.

The queen, who spent a great deal of time looking through her copy during the dinner, asked who was responsible for the project. (It was Lago's idea after he received a copy of a similar encyclopedia about Spanish in the world, and the United States got ''a measly'' 10 pages -- but he wasn't at the dinner.)

Someone pointed at López, project coordinator. The queen applauded.

''She dedicated an applause to me!'' López says. ``I couldn't have been a happier.''

But, he added, ``más le vale.''

Serves her well.

Spain may be the Motherland, but it's only the fourth-largest Spanish-speaking country in the world, he noted.

''The future of the language is in the United States,'' López said. ``It's No. 2 now, but without a doubt, in 10 to 15 years, it will be No. 1.''

Source: The Miami Herald

Five Helpful Tips When Interacting With US Hispanics In Social Media Outlets

2009-02-13T13:39:00.002-06:00

February 11, 2009
By Luis Cabrera

Have you always wanted to interact and participate in an online discussion with US Hispanics but didn’t know how or were simply too afraid? Even worse, have you ever tried to engage them and been ignored?

Here are a few things we’ve learned while engaging with US Hispanics in Social Networks, forums, message boards and blogs on behalf of our clients:

1. Discussions tend to be more emotional, less rational. Non Hispanics will likely tell you: “I agree (or don’t) because: a), b), c)” while most Hispanics will take the emotional and shorter route of… “I love (or hate) it, don’t know why, but I just (or don’t) like it”. Understanding this will allow you to build powerful messages. Try touching their hearts first, not their heads.

2. They LOVE their country, more so than ever. Naming a country is an easy way to set a forum on fire, there is a very high sense of nationalism and you’ll find discussions about “nationality” (i.e. Peruvians vs. Chilenians) in practically every forum regardless of topic. Avoid favoring one country over another, especially on a soccer forum.

3. Don’t even think of using the “H” and “L” words. Avoid using the words “Latinos” or “Hispanics”, even if you are one. Social networks allow Hispanics to take a break from a world in which they are constantly being labeled as different. Using these words will only point out that you are the one that is different.

4. Talk bonito Español, and worry less about talking Español bonito. Carefully drafted responses in perfect and proper Spanish are a big turn-off. You need to act natural; everybody has made spelling mistakes, so don’t worry. But it is very easy to spot a gringo in a Spanish language forum; if you don’t want to be ignored, never mix the formal and informal form of “you” (tú & usted), never mix the present tense with the past, and never mix the singulars with the plurals.

5. Go with the language flow. If the community interacts in Spanglish, do so; but you still need to follow the unwritten and cognitive Spanglish rules. Spanglish is not only about mixing Spanish and English, but about adapting and creating new words and meanings. You definitely need help from native speakers.

The rest of the formula for a successful Hispanic social media strategy is based on exactly the same principles of transparency, value creation, empathy and hard work used while engaging with non Hispanics. Honestly, there is no big secret in these principles. The more you participate and invest in non-branded discussions, the better your branded messages will be heard.

Social media is about creating value, not messages, and that holds true in Español, English and in Spanglish.

Source: New Media Strategies

Market Evolution

2009-02-06T21:59:00.002-06:00

Bill Gates @ TED Conference

2009-02-06T20:17:00.001-06:00

This is not about Latinos but about inspiration.

Are you ready for the fight?

2009-02-06T16:40:00.001-06:00

Click below if you are:

Matador: Branding @ the point of contact!

Matador Marketing on FACEBOOK

2009-02-06T16:38:00.001-06:00

Come join our group:

Matador Marketing Group Page on FACEBOOK

“Como se dice Muffín?” – Reverse Acculturation

2009-02-06T15:30:00.001-06:00

This is more of a funny story than anything else. Although, the lesson here is about how acculturation is a two way street and can apply to other ethnic groups.

So growing up in the 80’s and being Latino in the Suburbs was an experience unto itself. Those of us who lived that life, were “THE” diversity in most cases at school or church or any other social group for teens. But our parents always showed/reminded us where we came from and never to lose the “Latin” in us! For me, my older brothers and sister always reminded me “how easy I had it,” or something to that nature.

Those of us Latinos who knew each other in the suburbs had similar backgrounds…Parents were foreign born, been here since the 60’s or 70’s, had older siblings who were more aware of the last neighborhood we lived in than we were and we spoke Spanish but lived in English. But when many of us went to college and started our careers, those reminders were not around us. But funny how you gravitate to people who have/had similar life experiences/situations as your own.

These situations are different than those of native Spanish speakers, even within your own family, because we had the luxury of using English when we did not know the correct Spanish words. So only imagine if a native Spanish speaker doesn’t know the word and has no point of reference because it did not exist, in the American form, back home.

So to the title of this blog – “Como se dice Muffín?”

One day, speaking Spanish to these friends and reminiscing about the crazy things our Latin parents (Spanish, Colombian, Cuban, Argentine, Mexican, Peruvian) used to do, I got up and asked the group if “¿querian unos muffíns?” With simultaneous pause, we all looked at each other with puzzled faces and began to ask, how do you say “muffin” in Spanish?

So each of us (there were five), called our parents. And all of our conversations pretty much went like this:

Ring

MAMA: “Alo” (Some form of Hello and Hola combined)

ME: “Hey Mama! What’s up?

MAMA: “Hola Mijito…how are you?”

ME: “Great..you got a minute?”

MAMA: “Por su puesto…of course!”

ME: “So some of us are sitting around trying to figure out a word in Spanish. What do you call a

pastry that you would eat in the morning. Some are Bran, some are blueberry. Do you know what I am

talking about?”

MAMA: “Un bagel?”

ME: “No think sweet.”

MAMA: “Un Muffin?”

ME: “Yes. How do you say Muffin in Spanish?”

LONG PAUSE

MAMA: "Muffín?" (note the accent mark)

ME: "Seriously?"

MAMA: " I think so. I did not grow up with anything like a muffin. You might want to ask your father

growing up in Colombia your Abuela owned a bakery for many years. I will check with my sisters."

ME: "OK Mama, thanks! Ciao!

MAMA: "Ciao baby lindo!"

So I did call my dad, same conversation. Actually each of us called our parents, and 10 similar conversations. There was no word for muffin in Spanish. That was 15 years ago.

And I still have yet to find a word in Spanish for Muffin.

So as we see words like salsa, taco, pico (de gallo) get engrained in the English vernacular, there are words like muffin, and even bagel, that get put into the Spanish vernacular here in the US.

So for you bi-lingual/bi-cultural folks, keep an ear out and let us know of some other words/phrases out there.

Email us @ matador@thebullfight.com

¡Saludos!

Changing Perceptions

2009-02-06T15:11:00.000-06:00

There once was a time, way back in the 80’s and early 90’s when a major national brand could just plant their flag in the middle of the Hispanic community in any form, TV, radio, whatever, the Latino Consumer Market would flock…in droves!

Not any more mi amigos!

We are in the midst of a revolution within the Hispanic Consumer Market my friends. The US Gov’t recently announced that the Anglo community in the US will become the minority by 2042; and the Hispanic population will comprise 30% of that new ethnic majority. That is potentially within many of our lifetimes. I personally would be a young 71 with a slew of grandkids…God willing!

All that said, brands are more and more needing to plant that flag not just in the traditional avenues they have been used to, but in new arenas to attract the Latino Consumer Market. These arenas not only need to be more culturally relevant which is a buzz term we have all used, but more in a relevant lifestyle display that is cultural in nature. AND asking them to please try their product.

Brands need to know that US Hispanics

Go online and surf
Watch General Market TV and not just Telemundo and Univision
Listen to Hip Hop and is more relevant to most than Ranchero

Family Guy, NFL Football, Chingo Bling, MySpace (Latino) and iPods are all high impact, highly viewed outlets for both Spanish Dominant and Bi-cultural Hispanics. Bi-cultural Hispanics are becoming a force to be reckoned with in the US.

The funny thing is…bi-culturalism is a two way street. Americans as a group…not just Latin Americans, are literally eating, drinking and having fun Latin style.

Eating – The largest Bread maker is from Mexico – BIMBO, and Mexican food is more of a staple now than a once in a while.

Drinking – From beers to sodas, more labels from Latin America are taking up shelf space at supermarkets

Being Merry! – Cinco de Mayo is actually as popular as St. Patrick’s Day!

So next time you go to a barbeque, or to a club, note the abundance of guayabera style shirts there are, or dudes wearing soccer jerseys like FCB or Chivas. Also, more Mexican beers are available along with Latin inspired music like reggaton being played in the background.

Also…can Javier Bardem be in any more movies? Really!

Saludos!