2. With 50 million+ Hispanics in the United States, up
by 46.3% from the last decade, many businesses are
realizing that it would be in their best interest not to
ignore them in their advertising campaigns.
1/6 adults in the United States are now Hispanic
and in 2013, the buying power will be $1.3 trillion.
There are now 3 million Hispanic-owned
businesses, and they are growing 3 times faster than
the general market.
Source: Report created by Hispanicize and published by Social Mediadd,
March 30, 2012 Report
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3.
U.S. Hispanics are early adopters of mobile
technology, with 74% of mobile users in the age
range of 18-44 and 20+ hours being spent per week
on social networking sites.
Spanish has become the third most-used language
on the web and by 2014 there will be 39 million
U.S. Hispanics online.
Out of 52% of Hispanics that are online, 70% prefer
to surf the web in English, 17% prefer Spanish, and
13 % do not have any language preferences.
Source: Report created by Hispanicize and published by Social Mediadd,
March 30, 2012 Report
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4. Source: Report created by
Hispanicize and published
by Social Mediadd,
March 30, 2012 Report
5.
The Latino population in the U.S. is growing—and in
places many people might not be looking. While
historically Hispanic-designated market areas
(DMAs) like Miami and New York still have the
largest shares of the Latino population, new research
from Nielsen highlights how the pace of growth is
soaring in a range of areas outside of these
concentrated immigrant gateways.
HISPANIC POPULATION
GROWING FASTEST, WHERE WE
AREN’T LOOKING
Source: Nielsen, May 2013
6.
7. For example, Charlotte, N.C., isn’t traditionally thought of
as a Latino market, but its Hispanic population is growing
faster than any other region in the country. Additionally,
dramatic Latino growth in a range of cities across the U.S.
since 2000 has created a bevy of opportunity beyond the
more traditional Hispanic markets, as noted in the
country’s 15 largest Hispanic DMAs. The high growth in
the mid-market DMAs mirrors the growth in Los Angeles
and New York just a couple of decades ago. So it’s only a
matter of time before one of these DMAs becomes the next
Latino population center.
HISPANIC POPULATION
GROWING FASTEST, WHERE WE
AREN’T LOOKING
Source: Nielsen, May 2013
8.
9. The Latino boom has expanded beyond traditionally Hispanic
markets and continues to fragment. It’s imperative that brands’
messages speak to these new Hispanic segments--the young
bilinguals, the suburban and upscale households--that are driving a
new U.S. reality alongside more established segments of the U.S.
Hispanic population.
New immigration gateways like Washington, D.C. have formed for
new U.S. Latino populations, while cities like Orlando have become
suburban destinations for Latinos who previously resided in Miami
or New York. These shifts have put markets that weren’t previously
part of the Hispanic marketer’s strategy on the radar.
HISPANIC POPULATION
GROWING FASTEST, WHERE WE
AREN’T LOOKING
Source: Nielsen, May 2013
10. LATINOS IN AUSTIN ARE…
Ranked #20
Largest Hispanic
Population in U.S.
502,000
Population
31% Share of
Population
Average Median
Age
26
29% Foreign
Born
1
“Foreign born” includes those born
outside the U.S., Puerto Rico or other U.S.
territories and neither of whose parents are
U.S. citizens.
75%
Citizen
2
Citizens include U.S. citizens by birth or
naturalization.
Over 20 Latino
Subcultures
Mexican, Puerto Rican,
Cuban, Dominican,
Central, South American,
Other
42%
Homeowners
Median
Household
Income $39,000
Source:Characteristics of the 60 Largest Metropolitan Areas by Hispanic Population, Sept 2012 Pew Hispanic Center
ANNUAL LATINO PURCHASING POWER
$9.7 BILLION
11. If we combine the Hispanic purchasing power of Houston,
San Antonio, Dallas/Ft. Worth & Austin, the Hispanic
purchasing power is over $180 Billion per year. (Source:
Hispanic Marketing Council, 2012)
Over 10.4 million Hispanic family households in the
United States in 2010.
U.S. Hispanic population ranked 2nd worldwide in size in
2010. Only Mexico (112 million) had a larger Hispanic
population than the United States (50.5 million)
132.8 million projected size of the Hispanic population of
the United States on July 1, 2050. (Source: U.S. Census Data)
Every month 50,000 Latinos turn 18 (600,000 per year)
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12.
13.
14. Hispanic per capita income is from
Census in 2010: Hispanic per capita
income is second to Russia, but above
Brazil, China and India.
15.
16.
17. Hesitation and resistance to proactively target this segment of the U.S.
market can be attributed to one or more of the following reasons:
Lack of corporate commitment to the strategic decision to target the U.S.
Hispanic market.
Lack of adequate and long-term budget commitment to undertake the
marketing and build the necessary customer service infrastructure.
Resistance due to the sheer magnitude of the undertaking. There are a
multitude of components that comprise your Hispanic marketing and
servicing platform—e.g., culturally relevant products/services, Spanish
language marketing collateral, customer communication, Spanish
language website, bilingual call center and customer service personnel
bilingual IVR, etc.
Fear of unknown.
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18. How have companies that have faced these and similar issues overcome them?
Research, research, and more research! In addition to undertaking primary
research specific to your company and its products/services, there is an
abundance of secondary research available. Information is power and will enable
you to make informed decisions about the direction you should take.
Assign a U.S. Hispanic market champion within the senior executive team to
nurture the idea within the senior management team. In our experience, U.S.
Hispanic projects are one of the first to be cut when departments are looking to cut
costs and trim budgets. Having a U.S. Hispanic champion on board will help to
raise the profile of what you are doing and help build momentum. Once you have
built momentum and raised the profile internally, it becomes a little harder and
more political to cut.
Build a compelling business case that clearly shows the potential of this market
today and over the next 5, 10, and 15 years. There is plenty of data available to
help support your business case—a few examples are the U.S. Census Bureau and
the Selig Center’s U.S. Hispanic Purchasing Power dataset.
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19. How have companies that have faced these and similar issues overcome them?
Take the time to do the research and fully understand who the U.S. Hispanic market
is. There is a common misconception that it is one market. The term U.S. Hispanic is
a name to refer to people living in the U.S. from any Spanish-speaking Country, for
example. Therefore, U.S. Hispanics herald from around 20 different countries, and
while there are similarities that exist between the various sub-groups, there are also
distinct differences marketers and customer service agents must be sensitive to in
order to best serve the interests of specific consumer groups.
Test your product or concept before launching to the market. Time and dollars spent
wisely here could save you millions down the road.
Be realistic and up-front about the magnitude of the undertaking. Not only is there
substantial cost in marketing to this segment, but having the infrastructure in place
to service this segment should not be underestimated. Before you go out and
proactively target the U.S. Hispanic market, make sure that your bilingual customer
service infrastructure is in place. Companies that practice
“Best Practice” U.S. Hispanic customer care do the following:
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20. How have companies that have faced these and similar issues overcome
them?
Test the Spanish/English language proficiency of bilingual staff before
they pay a bilingual differential.
Undertake training for bilingual staff in Spanish. Many companies
provide training in English, and then tell training course participants to
“now go and say the same in Spanish to Spanish-speaking customers.”
Utilize the services of Hispanic market experts. Companies specializing
in one or more of the following fields: research, advertising, marketing,
training and recruitment can be an invaluable resource in helping you
to “get it right the first time.” Professionals in these fields also have a
wealth of knowledge about what has been attempted in the past and
has not worked.
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21. In summary, there is no doubt that there is a large and potentially
lucrative market opportunity for those companies prepared to
invest in developing a U.S. Hispanic market strategy. With the
impact of the Great Recession making consumers cautious to spend
and companies in a fierce battle for their available disposable
income, there is no better time than now for those companies
prepared to put forth the effort in a new customer acquisition
strategy targeting the U.S. Hispanic market. Companies prepared to
invest up front and develop their U.S. Hispanic market strategy and
customer service infrastructure will be well-positioned to reap the
rewards, while competitors continue to struggle in an economy
barely limping along.
HISPANIC MARKET
