Why companies are overcoming the cultural & linguistic barriers to sale their products and services to the latino consumer
It is a fact that the Latino community has tremendous buying power in the United States, Previously, advertising agency used stereotypical depictions of Hispanics in their advertisements, but it is important to understand that transcending stereotypes is more effective to reach the Hispanic Community effectively and we are experts in this field.
We’ve decided to share some of the facts why companies are turning to the Hispanic Advertising agencies to market the product and services.
- Hispanics represent a huge segment
- Latinos presence keeps growing
- Hispanics do have money to spend
- Latinos have a bigger impact in your future than you think
- Hispanics are influencing mainstream
- Latinos have a strong (bi) cultural connection
- Hispanics respond positively to specific (inclusive) marketing efforts
Of course, you’ll need some facts to convince your skeptical prospect. I’ve listed some that I believe are most interesting. Of course there are many more (feel free to share). Most of them are Twitter ready.
1. Hispanics represent a huge segment
- About one-third of America’s population is of either Hispanic, Asian or Black origin (this data doesn’t include 4 million from Puerto Rico).
- 23 metro areas already have more Hispanics than whites.
- There are 326 counties where ethnic minorities form the majority of the population—many of the largest counties in the nation, such as Los Angeles, New York, Chicago (Cook), and Santa Clara (Silicon Valley).
- Only one in five new households in the U.S. in 2009 were non-Hispanic whites.
2. Latinos presence keeps growing
- Hispanics contributed 52 % of population growth since the year 2000
- Among the Hispanic population, there are nine births for every death. For non-Hispanic whites, the ratio is 1-to-1.
- By 2015, population 3 largest ethnic groups will be: 110.5 million and Hispanics will represent nearly 50% of population
- Over 80% of the U.S. population growth in the last 10 years has come from ethnic minority groups.
3. Hispanics do have money to spend
- Hispanics plus Asians contributed two-thirds of annual spending growth in 2010.
- Hispanics form 16 percent of the population but nearly 50 percent of consumer spending growth in 2010.
- Due to their younger age, longer life expectancy and robust spending, acquiring multicultural customers today are worth far more than non-Hispanic whites.
- Asians are worth over $3 million in consumer spending, Latinos over $2.5 million and Non-Hispanic whites less than $2.2 million over their life span when acquired today.
- The buying power of Hispanic and African American segments combined is around 2 Trillion dollars, larger than Brazil’s entire economy was in 2009.
4. Latinos will have a bigger impact in your future than you think
- 92% of retirees are non-Hispanic and American’s depend increasingly on Latino taxpayers.
- Hispanics voted for Barack Obama over John McCain by a margin of more than 2 to 1 in the 2008 presidential election, 67% versus 31%
- Nearly 20 percent of congressional districts that will hold elections during the upcoming midterm cycle have a Latino population of at least 25 percent
- Increasing levels of naturalization along with trends in voter registration results in an increasingly important electorate: politicians are catering more and more to Latino interests.
5. Hispanics are influencing mainstream
- Online Hispanics have proven to be tech-savvy media trendsetters.
- 40% of Latinos are creators (333 Index vs General Market) creating their own content: publish a blog or own website, upload videos/music, etc.
- According to Ken Muench, 31% of the new Oxford English Dictionary words reflected crossculturalism, and many are food and entertainment-related, such as anime, telenovela, guayabera, taqueria, huevos rancheros and cilantro.
- 75% of hip-hop music is sold to White youth.
6. Latinos have a strong bi-cultural connection
- Don’t overestimate the impact of US born or second generations, only 8% of Hispanics are assimilated.
- 70% of Latinos are Bicultural and 22% still unacculturated.
- 80% of Biculturals say that it’s very important for them that people know that they are Hispanic.
- And 95% agree that being a part of the Hispanic community in the US is extremely important to them.
- 80 percent of Hispanics are bilingual and about 20 percent are dependent on English or Spanish.
7. Hispanics respond positively to specific marketing efforts
- The uniqueness of this segment’s mindset and values requires relevant marketing efforts.
- In culture campaigns tend to perform much better than adaptations of General Market efforts
- For instance, a campaign for Home Box Office saw a 13% click-through rate for Hispanic mobile users.
- Sensis reports results of 200-300% difference in Hispanic response to digital ads.
- 64% have responded to direct mail advertising compared to just 46 percent of the general U.S. population in the same period of time.