Hispanic Americans are becoming affluent faster than any other group but are still holding onto their cultures and traditions. Family is very important and brand loyalty is strong with this group. Brands have many new opportunities to reach out to this growing segment but must change the way they market to the Hispanic community. Value for their dollar is still important as with most people in general but the marketing tactics used to reach this growing market segment must change. Two kinds of Hispanic Americans are currently being targeted in marketing: spanish-speaking only and assimilated Hispanic Americans who are assumed to have the same buying patterns as any other Americans. Marketers need to take note of a third group, the affluent acculturated Hispanics that have still held onto their traditions, value, and language(s). This group is growing faster and consuming more than ever before.
Not only is there more buying power, but more buying power per household. According to this Ad Age article by Joe Castro, 1/2 of all Hispanics in the $100,000 a year income range are foreign born. Their total buying power is expected to increase to $1.3 trillion by 2015, up from $978 billion in 2009. During the past decade, the Hispanic $110,000-plus households grew 221% compared to 87% for total U.S. $100,000-plus households.It is possible to assume that a household could be made up of 3 or more working adults in some cases but the fact that there is more disposable income remains. Affluent Hispanics are more likely to own their own homes, work as managers or professionals, and shop online with credit cards rather than locally with cash.
- What does this mean for marketers and brands? If marketers are hoping to market products to this fast growing segment of the population, now is the time to invest in online video, social media, mobile and other digital media marketing tactics targeting this group.
Hispanics are outpacing the rest of the population in smart-phone usage growth. Smart-phone usage growth was 26% for Hispanics and 18% for the rest of the population in 2010. Mobile marketing dollars will have to increase to capitalize on this opportunity. Targeting this demographic with campaigns across many different features of a smart-phone is going to be the most successful strategy as they are downloading music, playing games, and using social media applications. Another area where Hispanics are outpacing the rest of the population is the use of social media. They are tweeting, liking, sharing, and watching video more than anyone else. Marketers need to reach out to this growing population through new media. If marketers are hoping to market products to this fast growing segment of the population, now is the time to invest in online video, social media, and other digital media marketing tactics. As more Hispanics buy products online with credit cards, there will be a need for targeted banner ads, social media campaigns, and online video.
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