Hispanic Advertising Trends are not aligned with the Hispanic Purchasing Power. Follow the money!
Y tú no me compras!
To be clear, Purchasing Power is the capacity of a specific market to purchase certain quantities of a given good or service.
Hispanics represent a large, promising market – they are predicted to account for 10.6% of total US buying power by 2019 (Selig Center for Economic Growth). However, brands still struggle to tap into them. The following is information that brands should know in order to tap into the immense purchasing power of the Hispanic market.
· Millennials have a lot of purchasing power and can be extremely loyal to brands (Forbes). A large proportion of this market is Hispanic (20.8%, Brookings Metropolitan Policy Program). In addition, approximately a quarter of Hispanics are millennial (Pew Research Center)
· Hispanics hold a lot of disposable income. Upscale Hispanics (households making over $40k) comprise of approximately 40% of the demographic’s purchasing power (2017 AHAA Hispanic Marketing Guide). In addition, nearly half of Hispanic households on the internet make more than $60k and approximately 25% make more than $100k (2017 AHAA Hispanic Marketing Guide).
· Women are a crucial subset of the Hispanic market. By 2060, Hispanic women will make up 30% of the female population in the US. This is crucial because in many Hispanic households, women are the primary breadwinners. This results in them making purchasing decisions at far higher rates compared to females of other ethnic groups. The Hispanic female market is rapidly growing – both in terms of size and purchasing power – so it is crucial to begin targeting it now.
· Be conscious of what language you use in your marketing campaign. Hispanics trust and are drawn to brands that understand and respect that their language is closely tied to their culture.
o 56% of bilinguals are far more loyal to brands that advertise in Spanish. This emphasizes the need to focus on bilingual ad campaigns, a task that companies such McDonalds have tackled head on (with positive results).
o Bilingual marketing is about more than translating English language campaigns into Spanish – it is about developing strategies to convey authenticity. The term Hispanic refers to a wide variety of cultures and backgrounds so it is essential to understand the differences. Dig deeper into differentiating factors such as age, income, culture background, etc. in order to develop the most effective campaign.
· Effective Hispanic marketing is not just about WHAT appeals to the market but WHERE your target audience is. For example, Hispanics spent 10.5 hours per week using the internet on their smartphone while the rest of the population only spends 8.4 hours a week doing the same. It is statistics like these that have given the Hispanic market a tech savvy reputation, indicating that brands need to prioritize the generation of mobile-friendly, engaging content in their Hispanic digital marketing.
· Brands must understand the nuances of the Hispanic millennial experience in the US. To do so, brands must commit to diversity at every level from the consumer to the advertiser in order to best understand their target audience(s).
· Consider the fact that slightly less than 2/3 of Latinos were born in the US and a large proportion are younger. Younger generations (including millennials) of Hispanics have different experiences than those born abroad. They are proud of their origins and Hispanic culture but they still embrace aspects of US culture more than previous generations.
· Hispanics are the driving force of US population growth, accounting for the majority of it since 2000 (). Hispanics make up approximately 1/5 of the population, a proportion that is only going to increase. This market is already huge and is only going to grow in the future, so it is wise to start investing now.
· According to research done by AdAge, approximately a quarter (25.8%) of children 9 and younger are Hispanic. As this generation ages, it is important to think of how they will impact consumer culture and think about how to begin marketing to them.
All in al, if you are not targeting Hispanic Consumers, specially online, since you can laser-focus your efforts on your very specific Hispanic Customer, you are leaving a lot of money on the table. No matter what size business you own, you can help your business grow by going after the Hispanic Market online. Hispanic Digital Marketing or bilingual content marketing is our specialty and we have the chops to prove how well it works.