Hispanic marketing - still relevant?

Is Hispanic marketing still relevant?  In all but the most remote places, latino influence in the United States is hard to miss, so of course it is.

Multicultural audiences continue to grow in size and importance and the Hispanic audience is one of the most important.  The U.S. Hispanic market has massive influence on the success businesses as well as on American culture.  Almost, if not all major cities in the U.S. have integrated latino food, music, culture, and even street signs into their metro area.    What is always being debated is how to reach this segment.  From a recent media post article there were some key points that highlighted some interesting items.

Language:  While to percentage of Hispanics that are proficient in English has risen swiftly, the percentage of Hispanics that stream entertainment in Spanish has also increased significantly (even greater among Hispanic millennials).  

Boy with Sombrero lazy Hispanic marketing.
Some hispanic marketing attempts are less than ideal.

Influence:  While the population growth is still strong, it has slowed somewhat, yet the integration of the segment into American culture is stronger than ever.  In business ownership the Hispanic community now comprises ownership of 12% of all U.S. business.

Many marketers take the approach of adding a stock photo of a latino looking person to an ad, check a box on whatever programmatic platform and call it a day.  While there are some that fully integrate a “total market” strategy” incorporating cultural relevance, language, etc with an overall cohesive strategy,  but that seems to fall more to Toyota, P&G, Coca Cola and other major advertisers.  

The U.S. Hispanic segment is one of the most important segments and represents major buying power and influence.  It is time for marketers to pay more than lip service to the importance of the group.  There are numerous factors in these decisions such as time, budget, and need.  However there are numerous options to reach this segment through focused media, and utilizing agencies that specialize in multicultural segments that are more effective and don't necessarily require utilizing an entire advertising budget.

 

 

 


Bank of America study shows continued confidence among Hispanics

Hispanic-owned small businesses remain one of the fastest-growing segments of the small business economy, creating jobs and growing revenue. Read on for highlights from the 2018 Bank of America Hispanic Business Owner Spotlight, a survey of 394 small business owners (SBOs) across the country.

Confident about growth

Survey respondents expressed confidence about the economic environment, their business outlooks and opportunities for growth in 2018.

  • 60% expect their local economy to improve in the year ahead, and 67% think the same of the national economy.
  • 71% expect their revenue to increase in 2018, 37% plan to hire, and 26% intend to apply for a loan.
  • 77% plan to grow their business over the next five years.
  • 65% believe Hispanic SBOs face unique business challenges compared to non-Hispanics, although many feel their heritage has been an advantage.
  • 88% believe the Hispanic small business environment will strengthen in the next 10 years.

Hispanic SBOs lead stats in social media usage

The Spotlight also revealed that Hispanic SBOs rely more on digital tools and social media than the average small business owner.

  • 93% of Hispanic SBOs use digital tools in the day-to-day running of their business (vs 74% of SBOs on average), including 50% who use digital banking.
  • 76% rely on social media to help run their business (vs 41% of SBOs on average), primarily using it for the following:
    • Marketing (78%)
    • Networking (76%)
    • Sharing updates with customers (74%)
    • Hiring employees (57%)
  • 53% say social media has had a positive impact on their business' bottom line (vs. 30% of SBOs on average).

Hispanic SBOs leverage digital tools, social media to fuel success. You should too.

Google research identifies Hispanics as being ahead of the curve when it comes to digital technology. They lead the general population in terms of adoption of new devices, are “power users” of mobile and over-index in video consumption.* The 2018 Hispanic Business Owner Spotlight uncovered ways in which forward-thinking Hispanic SBOs use technology to successfully run their businesses, reach new customers, and hire employees.

Read the complete 2018 Bank of America Hispanic Business Owner Spotlight

Bank of America Hispanic Business Owner Spotlight

GfK Public Affairs and Corporate Communications conducted the Bank of America Hispanic Business Owner Spotlight survey between August 8 and September 28, 2017 using a pre-recruited online sample of Hispanic and non-Hispanic small business owners. GfK contacted a national sample of 1,013 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between 2 and 99 employees, as well as 394 interviews among Hispanic small business owners, 149 of whom were primary Spanish speakers. The final results were weighted to national benchmark standards for size, revenue and region, and, for the Hispanic augment, whether the respondents were primarily English-speaking or Spanish-speaking.

*Source: Your Next Big Opportunity: The U.S. Hispanic Market, Lisa Gevelber / Jul 2014 I Mobile, Video, Consumer Insights
https://www.thinkwithgoogle.com/consumer-insights/us-hispanic-market-digital/

 

Source: 2018 Bank of America Hispanic Business Owner Spotlight
https://smallbusinessonlinecommunity.bankofamerica.com/community/hispanic-owners-report

Source: http://sbbankers.bankofamerica.com/newsletter/March-2018#article-1


Hispanic community continues to drive homeownership growth

The Hispanic community continues to drive homeownership growth in the U.S., according to the latest State of Hispanic Homeownership report released by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals.

The Hispanic homeownership rate of 46.2% for 2017 showed an increase of 0.2% from 2016’s rate, leading Hispanics to become the only demographic to have increased their homeownership rate for the last three consecutive years.

Over the past decade, non-Hispanic whites have lost 1.9 million homeowners and were the only demographic to experience a net loss over this period of time.

The surge in Hispanic homeownership rate can be contributed, in part, to the exploding population growth. Currently the country’s 58.6 million U.S. Hispanics account for more of the population growth than any other demographic.

What’s more, Hispanics accounted for 265,000, or 28.6%, of total U.S. household formations in 2017. Hispanics are even projected to lead U.S. household growth, adding 6 million additional Hispanic households by 2024.

Hispanic households also have larger sizes at 3.25, the largest household size in comparison to all other U.S. racial and ethnic demographics. This larger size can be contributed to factors such as multigenerational living, an emerging trend HousingWire explored in the February magazine.

However, despite all of these positive trends, Hispanics still face several challenges when it comes to owning a home.

The report shows that more than half of the country’s Hispanic population continues to be located in California with 15.3 million, Texas with 10.9 million and Florida with 5.1 million.

And it is this concentration that hurt Hispanic homeownership growth in 2017. The map below shows 2017’s natural disasters including the hurricanes and California wildfires hit the hardest in areas with heavy concentrations of the Hispanic population.

Click to Enlarge

Hispanic homeownership

(Source: California Department of Forestry and Fire Protection, Federal Emergency Management Agency, U.S. Census Bureau)

Another factor hindering Hispanic homeownership growth was affordability. The largest home price gains in 2017 were in California, Idaho, Nevada, Utah, and Washington, all of which, coincidentally, have substantial and growing Hispanic populations.

Immigration and, more specifically, deportations have also played a major role in the state of the Hispanic homeownership rate. Interior enforcement increased dramatically for the year ending in September 2017, with ICE reporting an increase of 36% for interior removals. Over that same period of time, administrative arrests by ICE also increased by 42%.

What’s more, with the Deferred Action for Childhood Arrivals program under threat, and no deadline in sight for a resolution, many DACA recipients will hold back from buying a home due to the uncertainty, the report states.


2018 Diversity Calendar of Events

The United States is rich with diversity and if there was any question, just have a look at the diversity of our celebrations. From Martin Luther King day in January, Black History month in February, Asian-American and Pacific Islander Heritage month (May) to Hispanic Heritage month (September/October) to name just a few.

Have a look at the full break down from Diversity Best Practices and I'm sure you will find some that you weren't even aware of (ex. Krishna Janmashtami.....will let you find that one in the list).

Here are some key ones that should be on the minds of  multicultural marketers.

January

January 15: Martin Luther King Day commemorates the birth of Martin Luther King, Jr., the recipient of the 1964 Nobel Peace Prize and an activist for non-violent social change until his assassination in 1968.

February
February is Black History Month in the United States and Canada.

February 9-25 Olympics PyeongChang:  OK, not an officially on diversity calendars, but is a celebration of diversity in athletics, athletes and cultures.

February 16: Lunar New Year, one of the most sacred of all traditional Chinese holidays, a time of family reunion and celebration. Lunar New Year is also celebrated at this time in Japan, Korea, Vietnam and Mongolia.

March
March is Women’s History Month.

May
May is Asian-American and Pacific Islander Heritage Month in the United States.

June
June is Lesbian, Gay, Bisexual, and Transgender Pride Month.

2018 World Cup June 14-July 15, 2018

July
2018 FIFA World Cup

September
From September 15th to October 15th is Hispanic Heritage Month. This month corresponds with Mexican Independence Day, which is celebrated on September 16, and recognizes the revolution in 1810 that ended Spanish dictatorship.

October
October 8: Indigenous Peoples / Columbus day.  Many cities in the U.S. have been stepping away from "Columbus day" in favor of "Indigenous People's day."  See some background here

November / December

Including the likes of Thanksgiving, Black Friday, Cyber Monday, Christmas and New Years this period is key for marketers.  After all it seems that Toyotathon is almost a national holiday.

 

 

 


U.S. Hispanics and mobile growth

According to Roberto Orci “Hispanics of every segment are growing at a faster rate than the general market... you would rightly conclude that Hispanics are a big part of the mobile market today and tomorrow.’’ Mobile devices are ubiquitous, particularly with Hispanics. Companies that do not have a well-defined Hispanic mobile strategy are destined to lose out on the most brand-cognizant and more importantly ‘’connected’’ U.S. demographic.

As more Hispanics embrace mobile technologies, they will also spur demand for innovative content, new media, and advertising to meet their diverse set tastes and preferences. The metric for success to a Hispanic mobile advertising campaign ‘’done right’’ will not be measured by followers and likes, but by brands that monitor the meaningful pulse of their culture and technology adoption. It’s clear that Hispanics will play a key role in defining the convergence of our digital and offline worlds.

Top 3 Major findings among Hispanics according to Zpryme research

  1. When it comes to mobile device brand loyalty, only a small percentage (12.3%) said they would not change mobile device brands for any reason.
  2. Although 27.4% said they currently used an Android smartphone, 31.3% said their next smartphone purchase would be an iPhone. Only 9.6% said their next smartphone purchase would be an Android.
  3. Six out of ten (63.4%) spent at least three hours per day on the internet, while four out of ten (41.0%) spent at least three hours per day on their mobile phone.

The breakdown of the above findings

  1. Device Used to Connect to the Internet

For the type of internet connection, the sample reported: laptop most often (70.7%), followed by desktop PC (59.1%), smartphone (41.3%), and tablet (18.7%).

  1. Smartphone Type

When asked what type of smartphone they have, respondents said Android (27.4%), Apple (20.9%), and Blackberry (7.4%).

  1. Next Mobile Phone to Purchase

A last question asked what type of cell phone their next one would be. The Apple iPhone was the most popular choice by far at 31.3%, indicating their next phone would be an iPhone.

  1. Mobile Device Ownership

The types of mobile devices Hispanics currently own were: laptop (69.7%), smartphone (51.5%), iPod (41.8%), tablet (18.8%), netbook (14.1%), and e-reader (11.1%). Another 11.1% of the sample said they didn’t own a mobile device.

  1. Mobile Device Likely to Purchase

Over the next 6 months, 24.1% Hispanics indicated they were most likely to purchase smartphones, 21.1% for laptops, 18.1% for tablets, 17.3% for iPods, 11.6% for E-reader and 10.6% will purchase Netbook.

  1. Time Spent on Mobile Phone

Four of ten (41.0%) spent at least three hours per day on their phone. 28.9% spent less than one hour on their phones, 30.1% spent 1-2 hours of phone using their phones, 25.3% spent 3-5 hours , 8.4% spent 6-8 hours and 7.3% spent over 8 hours on their phones on a daily basis.

So therefore from the information above one could deduce that Hispanic people will be hitting iphone market very soon but network provider should not expect the majority of them to be always online.

 

PD: Considerate to read our article about how to get a mobile service for free.


SafeLink program: FREE minutes, text & data

Recently Alcance Media has started to work with a U.S. Government program that assists eligible families with phone, text, and data and helps families in need stay connected.  SafeLink's Free Wireless Program provided by Tracphone Wireless in conjunction with the Lifeline government benefit program allows qualified users with an applicable mobile device to access these benefits. Through an easy online application (can be downloaded as well) you can find out quickly if you qualify for benefits.

Cell phone service: Now Free!

Online application is through the website for SafeLink's Free Wireless Program


U.S. Census Bureau | American Community Survey

While the last United States Census was conducted in 2010 and the next is scheduled for 2020, there is the American Community Survey which is an ongoing survey that can work in conjunction with the Census data to see changes in the characteristics of the population of the United States.  This is especially useful for multicultural marketers as immigration and movement patterns are continually changing and doing so at a rapid pace.  


5 Ways To Reach Hispanics During Hispanic Heritage Month

by  , Columnist, October 2, 2017

With Hispanic Heritage Month in full swing, which runs from Sept. 15 to Oct. 15 and coincides with the Independence Days of Mexico, Guatemala and Honduras, here are five places brands should consider in order to connect with the Hispanic community and build brand loyalty.

1. Supporting Mexico and Puerto Rico Relief Efforts

With the recent hurricane that swept through Puerto Rico and earthquakes that have devastated Mexico, brands can reinforce their commitment to Hispanic audiences by helping those affected by the recent natural disasters. Brands that show commitment to helping these devastated areas and offering support to those in need will build confidence, trust and brand loyalty with Hispanic audiences.

2. eSports

ESports are an ever-growing platform for brands to reach Gen Z and Millennial Hispanic audiences. The average eSports fan is racially diverse with Latinos making up 23% of all players and/or spectators across all game genres, according to PwC. Platforms such as Twitch allows brands to directly connect with Hispanic gamers in an endemic environment. As eSports prize pools and sponsorships increase, on-premise event activations will become more prevalent. Additionally, brands can look to directly sponsor eSports and work with eSports influencers to build brand awareness and affinity.

3. All Things Cardi B

Cardi B’s rap career has been meteoric. From Instagram and reality TV fame to intelligently re-releasing a Latin Trap Remix in Spanish of her smash hit “Bodak Yellow,” she is quickly becoming an Afro-Latina hero. Hispanics have rallied around her success to be actualized in order to become a win for us all. If Cardi B’s upcoming shoe collection with Steve Madden is any prediction, a slew of brands, particularly in fashion, will line up to work with this outspoken, authentic girl next door that we love.

4. Latinas – A Social & Economic Force

Hispanic women are quickly becoming an economic and social powerhouse in the U.S., with rising rates of entrepreneurship and educational attainment as per a recent study commissioned by Nielsen. Brands who understand how to online and offline social networks to connect with Latinas in meaningful ways will see increased engagement and ROI.

5. Latino Films & Film Festivals

While Latinos are avid moviegoers and fuel close to 25% of all tickets sold last year, they are hugely underserved and rarely see themselves on the big screen. During Hispanic Heritage Month several Latino film festivals will take place in New York, Boston, Seattle and San Francisco. In addition, Q3/Q4 multi-genre Latino film releases such as Dolores, Chavela, Coco, Shape of Water and Ferdinand will offer relevant stories and complex characters for our audience to support. Brands should look to festival sponsorships, in-theater advertising, digital and OOH targeting around festivals and theaters to reach this large and engaged audience.

Source: https://www.mediapost.com/publications/article/308118/5-ways-to-reach-hispanics-during-hispanic-heritage.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=105793&hashid=fs4Gm4tbYTo8p6TkIxT8ekKmR7Q

Picture: http://www.radioimpactreports.com/wp-content/uploads/2017/04/Hispanic-Multi-generational-iStock-514134717-e1491508590139.jpg


10 Best Practices for Marketing to Hispanic Consumers

When you’re working with companies internationally, there’s an expectation that you will make an effort to understand the language and cultural differences among various countries and cultures. But within the U.S., linguistic and cultural differences are often overlooked—most notably, the fast-growing U.S. Spanish-speaking market. The U.S. is now the second largest Spanish-speaking country, behind Mexico.

View related webinar on multicultural customer experience: How to Market to Hispanic Consumers

2014 Pew Research Center report states that there are 55.4 million Spanish-speakers or Hispanics in the U.S., which is approximately 17.4% of the total U.S. population. And, Hispanic consumers represent $1.5 trillion in purchasing power. That’s a high market share to target, so it makes sense that an increasing number of companies are marketing to Hispanic consumers.

To capture this growing target audience, just translate your marketing content into Spanish, and you’re all set, right?

Not exactly.

Just like English in the U.S. vs. English in the U.K., not all Spanish is the same. With Spanish, from the many countries in Latin America to Spain, there are even more dialects. It’s not just about different pronunciations. Understand that many words have various meanings, depending on the dialect. This is true for many languages, including English, where elevatorin the U.S. is known as lift in the U.K.

Here are some best practices you should keep in mind and research further before you are developing a strategy for marketing to hispanics.

1. Understand the difference between Hispanic and Latino

There are many interpretations of how to define Hispanic vs Latino. For the purposes of this blog, I’ll distinguish the two in the following way: Hispanic refers to language and Latino (including Latina and Latino) refer to location Therefore, Hispanic here is defined as one who has a Spanish-speaking origin or ancestry, including Spain.

Latino refers to Spanish-speakers as well, but only people from Latin America—including Brazil. (Portuguese is spoken in Brazil, and thus, is not considered to be Hispanic.) Hispanic and Latino are often used interchangeably, even though they don’t mean the same thing. It’s important to be aware of not only who you are targeting, but also how you choose to reference them. Not all Spanish-speaking people are Latino, and not all Latinos are Hispanic.

2. Be aware of regional differences

According to the Pew Research Center, most U.S. Hispanics prefer to use their country of origin to describe themselves. More than half of the survey respondents said they have no preference for either term, Hispanic or Latino. However, it’s still important to localize your marketing efforts, as these preferences vary from state to state, and they also change as the Hispanic population grows.

For example, California has the highest Hispanic population percentage, and 30% of them say they prefer to be referenced as Hispanic, while 17% say they prefer Latino. But this preference is much stronger in Texas, where 46% of Hispanics said they prefer to be referenced as Hispanic, vs. 8% who prefer Latino.

Localization is critical in states with a high population of Hispanics, such as Texas, California, Arizona, New Mexico, New York, and Florida. There are several dialects of Spanish and Spanish variants in the U.S. Thus, Google Translate can’t compare to professional translation services—it lacks the ability to tailor translations to these dialects.

3. Consider generational and cultural gaps while tailoring marketing tactics and content

Hispanics, like many cultures, integrate their traditions from their countries of origin into their lives in the U.S. But cultural integration can vary depending on segments of the larger Hispanic consumer population. Generationally, they can be broken down into two main groups:

  • Traditionalists: Older immigrants, and some younger, are considered “traditionalists” who don’t speak fluent English. You can market to these traditionalists via Spanish-speaking TV and radio stations, as well as Spanish websites. Your marketing strategy should emphasize these traditional Hispanic cultural values and traditions including food, family, and holidays. Know the various dialects and idioms within a specific region, and don’t stop at the online home page, TV ad, or radio message. Keep the customer engaged.
  • Millennials: Second-generation Hispanics are those who are born in the U.S. into a Hispanic family. Like many second-generation ethnicities, they are typically the younger family members, including millennials, who have adopted many U.S. customs (and English) but still appreciate, respect, and enjoy their culture, language, and heritage.

10-best-practices-image

Note: White, Asian, and Black include only those who are single race and not Hispanic. Hispanics are of any race. Figures may not add to 100% due to rounding. Source: Pew Research Center analysis of 2014 American Community Survey (IPUMS), “The Nation’s Latino Population is Defined by its Youth.”

 

Culturally, marketers tend to divide Hispanic online consumers into three different categories: Hispanic Dominant, Bicultural, and U.S. Dominant.

  • Hispanic Dominant (23%): This group speaks predominantly Spanish at home and consumes most media in Spanish. Typically, they’re foreign born and have a mean age of 40. On average, they’ve lived in the U.S. for seven years.
  • Bicultural (31%): This crowd typically speaks both English and Spanish at home, but they consume most media in English. They’re a combination of foreign and U.S. born and have a mean age of 34. They’ve lived in the U.S., on average, for 22 years.
  • U.S. Dominant (46%): This bunch generally speaks English at home and consumes most media in English. They’re U.S. born and with a mean age of 37, they’ve lived in the U.S. an average of 36 years.

Offline, the sizing of these groups is reversed, with Hispanic Dominant representing 52% of the segment, Bicultural 19%, and U.S. Dominant 28%.

4. Consider using “Spanglish”

For a U.S. Dominant or Bicultural audience, blend both Spanish and English into your campaign, keeping English as the primary language but integrating Spanish phrases, quotes, terms, etc. to truly connect to Hispanic consumers.

5. Include Hispanic talents, using Spanish influenced music and imagery

Create campaigns that are centered on Hispanic imagery and tell vibrant, colorful stories. But avoid stereotypes or singling Hispanics out.

6. Create mobile-friendly campaigns

Pew Hispanic Center found that Hispanic mobile phone owners are more likely than Anglo mobile phone owners to access the internet—40% vs. 34%. And according to a July 2014 Google Consumer Survey, Hispanics are 1.5 times more likely to buy mobile apps and digital media than non-Hispanics. Don’t miss these opportunities to connect with Hispanic consumers. Be sure to optimize all your digital touch points and campaigns for mobile.

7. Include Hispanic culture in online ads

88% of digital-using Hispanics pay attention to online ads that include aspects of their culture—regardless of the ad’s language (Google Hispanic Marketing Forum, 2015).

8. Be consistent with Hispanic marketing

Offering a web page in Spanish is effective, but only if your landing page is in Spanish, too. The same is true for phone orders and support: Pressing “Numero 2” for Spanish on your phone keypad is helpful only if there is a Spanish-speaking representative on the other end. If you’re going to market to consumers in Spanish, be sure to support them throughout the customer journey.

9. Understand Spanish-speaking social media

This is where cultural patterns shift. According to CNN, the most active of all ethnic groups on social media sites are Hispanic adults, at 72%. CNN also points out that even though “Hispanic” is the identity most referenced on social media, the term “Latino” was mentioned more on Twitter. There are many reasons for this, one of which is that Latinos are becoming more prominent in TV shows, magazines, and professional sports.

For example, according to a 2016 Neilson report, 10% of overall NFL TV game viewers are Hispanic. This results in more Tweets on Latinos. The word “Latino” was also searched more on Google in the last few years. Cultural patterns vary by region (within the U.S.) and are also a result of more references to the types of activities, music, and other events that cater to the Latino population.

10. Be aware of cultural diversity

It all comes down to being aware of cultural diversity within any country, where multiple ethnicities and language dialects exist. And although no one is expected to know each dialect and market, there is much benefit and value to thoroughly researching and understanding the various linguistic and cultural differences, as well as the spending patterns within a particular country.

This can be done in many ways, such as hiring local employees or services that are aware of the various differences, as well as knowing the latest research on buying trends, social media trends, etc.

After all, if you are making the effort to market to Spanish speakers, be sure to be able to relate with them the way they relate to one another. Know their local culture, language, and customs. Bottom line: Localize, localize, localize.

To learn more, view the recorded webinar, How to Market to Hispanic Consumers.

About the author

sergio-restrepo-200x240Along with his operations responsibilities, as a digital marketing expert, Sergio provides sales support for Lionbridge Global Marketing Services. In 2007, he founded Darwin Zone, a Costa Rican-based digital marketing agency acquired by Lionbridge in 2014. There, he designed and implemented strategies for global brands including Nestle, 3M, New Balance, SABMiller, Honda, and Johnson & Johnson, among others.

 

 

 

 

 

Source: http://content.lionbridge.com/10-best-practices-for-marketing-to-hispanic-consumers/


Your Next Big Opportunity: The US Hispanic Market

Source: https://www.thinkwithgoogle.com/consumer-insights/us-hispanic-market-digital/