Effectively reaching Hispanic, African-American, & Asian communities Digitally

1. March 26, 2013
Cross-cultural Digital
Marketing
Effectively reaching Hispanic, African-American,
& Asian communities Digitally
Multicultural Marketing Conference
Saint Paul, MN

2. Overview
2
• Introduction
• Multicultural Marketing Models
– Multicultural Marketing Defined
– 3 Types of Multicultural Marketers
– 3 Approaches to Multicultural Marketing
• Overview of Multicultural Digital Market
– Hispanic Digital Marketing
– African-American Digital Marketing
– Asian Digital Marketing
• How to Approach Multicultural Digital
• Sensis Vision: Cross-cultural with Digital at it’s core

3. Introduction

4. 4
A little about me

5. I’ve been working in advertising for the last 13
5
years
My background :
Jose
– Economics
– Digital technology
– Management consulting
I kind of stumbled into this business…

6. 6
… and I’m one of the few people you’ll meet
that runs a successful ad agency that never
worked in advertising before.

7. my story explains a lot
7
• 1998: I left a consulting career to start a Hispanic-focused
dot com
• Since that day, I found myself in the middle of a
transformation of the advertising industry

8. Sensis
8
• I started Sensis in 2000, a couple of
days after shutting down my dot
com.
• Sensis was started to address a
small gap I saw in the ad business
during my dot com days.
• During the last 13 years I’ve realized
that “the little gap” was actually
bigger and more transformative
than anything I could have ever
imagined in 2000.

9. Agency Profile
9
• Advertising & digital agency
• 37 employees
• $12 million in revenue (2012)
• Offices locations:
– Los Angeles, CA
– Washington, DC
– Mexico City, Mexico
• 15 years in business
• Independent, minority-owned

10. Multicultural Marketing Models

11. 11
Multicultural marketing defined

12. let’s start with some definitions
Multicultural markets = various minority groups
12
• Hispanic
• African American
• Asian American
• GLBTQ
• Other
– Middle Eastern, European, South Asian, Native
American, Disabled, …

13. “General Market”
13
• Caucasians + minorities
• An amalgamation of all ethnic groups, including Whites,
Hispanics, Blacks, Asians and everybody else

14. 14
3 States of Multicultural Marketing

15. 3 states of multicultural marketing
15
Newbies
Active Inactives
multicultural new entrants
Past
marketers into
multicultural
multicultural
marketers
markets

16. 16
3 Models of Multicultural Marketing

17. Model 0: Irrelevance
17
No efforts aimed at multicultural
audiences or integration of multicultural
programs

18. 18
84% of all U.S. population growth
from 2000-2010 came from Hispanics,
African-Americans and Asians

19. 19
38% of 18-34 year olds are
multicultural

20. Model 1: Traditional
20
Lead with “general market”
distinct and separate multicultural
programs

21. 21
Traditional Model of Multicultural Marketing

22. 22
Toyota
“somos muchos latinos”

23. Model 2: Cross-cultural
23
Integrate multicultural into general
market;
Program extensions into specific ethnic
(sub) segments

24. The new way – “Cross-cultural”
24

25. 25
Taco Bell
“Live mas”

26. Multicultural Digital Market

27. 27
Hispanic Digital

28. 28
65% of Hispanics access the Internet*

29. Hispanic Internet Penetration
29

30. Largest Social Networking Sites Among Hispanics
30
Source: comScore, December 2012

31. Mobile Phone Usage Among Hispanics
31
Source: comScore, December 2012

32. Hispanics over-index in smartphone usage
45%
34%
Hispanic General Market
Source: Sensis Hispanic Mobile Report, April 2012

33. Hispanic Mobile Profile
33
Source: Sensis Hispanic Mobile Report, December 2011

34. Smartphones as Computer
34
Source: Sensis Hispanic Mobile Report, April 2012

35. Top Online Activities for Hispanic Consumers
35
Hispanics are more
likely to read or write
movie reviews,
download
videos/music, and
watch TV shows
online than general
population
Source: Sensis Hispanic Mobile Report, April 2012

36. Hispanic Consumers Research Online Before They Buy
36
Source: Sensis Hispanic Mobile Report, April 2012

37. The behavioral basics
What most people know
37
• Price sensitivity / deals ethic
• More social in key activities (e.g. shopping)
Source: Sensis Hispanic Mobile Report, April 2012

38. Lesser known digital behavioral
What most are not aware of…
38
• Many Hispanics are early technology adopters
• Many Hispanics are influencers
• Some misconceptions
– Use of social media --- very different than general market
– Digital divide still exists

39. How Hispanics use digital media?
39
• Hispanic consumers are diverse, so
blanket generalizations don’t usually hold
across a market of 35-40 million online
users
• Our Hispanic Persona Project identified 4
distinct “behavioral” segments across the
Hispanic digital consumer landscape
– Only 2 could be described as “heavy” digital media
consumers, particularly when it comes to digital music
Source: Sensis Hispanic Persona Project, April 2011

40. 40

41. www.HispanicMobileReport.com
41
Hispanic In-store
Mobile Experience
Innovative research on Hispanic
in-store mobile use
Source: Sensis Hispanic Mobile Report, April 2012

42. Top activities while shopping at a Store
Top Activities While Shopping store
Chart page
11
Source: Sensis Hispanic Mobile Report, April 2012

43. It’s all about the
best deal
• Care more about finding
the best deals
• Use anonymous mobile
product reviews far less
Source: Sensis Hispanic Mobile Report, April 2012

44. 44
In-store price-checking is not about
Amazon…
it’s about the store across town
Source: Sensis Hispanic Mobile Report, April 2012

45. Hispanic Mobile
45
• Shopping is a social affair
• Deals ethic
• No showrooming
Source: Sensis Hispanic Mobile Report, April 2012

46. 46
Some insights from the trenches

47. Hispanic Digital Experience
47

48. Some Insights
48
• Heavy mobile users – mobile ads have very high response
rates
• In some categories, English is key to reaching them ---
portrays legitimacy
• Tablet adoption is driving Internet access among older,
Spanish-dominant and less acculturated cohorts
• Complex info best presented in anecdotal, story format

49. Some Insights
Younger Hispanics
49
• Important of authenticity to younger, acculturated segment
• Looking to “connect” with their culture, even if they don’t
speak Spanish

50. 50
African American Digital

51. 5 truths of the digital African American consumer
51
• They are ahead of the digital curve
– utilizing video, mobile, and other platforms to interact online
• They are vocal
– Digital is their microphone
• They are avid searchers
• They are more thorough
– In their pre-purchase research
• They are more receptive
– To digital marketing
Source: Nielsen African American Consumers 2012 Report

52. African American
Geography and Generational Distribution
52
Source: Nielsen African American Consumers 2012 Report

53. Average Time Spent with Media
53
AFRICAN AA/TOTAL
Average Time (Hours) Spent Per Day… TOTAL
AMERICAN DIFFERENCE
Avg Time Spent on Internet on Home Comp per day 3.1 3.3 0.2
Avg Time Spent using IM per day 2.0 2.2 0.2
Avg Time Spent Texting on Cell Phone per day 1.6 2.0 0.4
Avg Time Spent Watching Videos online per day 1.8 1.9 0.1
Avg Time Spent Eating per day 1.3 1.5 0.1
Avg Time Spent Using Internet on Tablet per day 1.2 1.4 0.2
Avg Time Spent Listening to Music online per day 0.9 1.2 0.3
Avg Time Spent on Computer Video Games per day 0.9 1.1 0.1
Avg Time Spent Playing Video Games on Tablet per day 0.8 1.1 0.2
Avg Time Spent Emailing per day 1.0 1.0 0.0
Avg Time on Internet on Cell Phone per day 0.9 1.0 0.1
Avg Time Spent Reading E-books per day 0.9 0.9 0.1
Source: comScore, February 2013

54. Media Consumption
54
Source: Nielsen African American Consumers 2012 Report

55. Effective Advertising
55
Source: Nielsen African American Consumers 2012 Report

56. Mobile
56
• 54% of African-Americans
own smartphones
Source: Nielsen African American Consumers 2012 Report

57. Top Advertisers &
57
Media Spend
Source: Nielsen African American Consumers 2012 Report

58. Online
58
Source: Nielsen African American Consumers 2012 Report

59. Social Media
59
Source: Nielsen African American Consumers 2012 Report

60. African-Americans
Use of Search Engines
60
• 72% of African Americans use search daily
• 2% feel that their searches are successful
• They notice search ads more often than the representative
population we surveyed, click on them and find them more
useful.
http://www.google.com/think/research-studies/five-truths-of-
the-digital-african-american-consumer-video.html
Source: Google

61. 61
16% of African Americans cannot live
without a computer with internet access,
significantly lower than the total population
at 22%
Source: Google

62. 62
Asian Digital

63. 63
China, India, Philippines, Vietnam, Korea
and Japan comprise 86% of the total Asian
population.

65. 65
Asian Americans skew younger than the
total U.S. population (41 years vs. 45 years)
Household size slightly larger than the total
U.S. population (3.1 vs. 2.6).
Source: U.S. Census Bureau

66. 66
Highest growth rate since 2000
200% Growth States
• Florida
• Georgia
• Texas
• Minnesota
• Ohio
• Iowa
• Indiana
• Arizona
• Nevada

67. 3 out of 4 Asian Americans are foreign-born
Source: U.S. Census Bureau

68. 68
28% higher than the total U.S. median income.

69. Digitally connected
69

70. 70
60% of Asian TV Households reside in the top 10 DMAs

71. Online Video
71
Asians spend twice as much as time
watching Web videos social media and
mobile devices
Weekly Web Series
• Produced in English, targeting young
Asian Americans
• Korean soap opera format (very
dramatic)
• 10 million views & 4,700 comments on
outcome of story!

72. Popular Websites
72

73. 73
Pay TV & Telecommunications
Money Transfer

74. Insurance 74
Financial
Auto

75. Fast Food/Beverage
75
Wine & Spirit
Hotels/ Casinos

76. How to Approach Multicultural Digital

77. 77
How does digital fit into an effective
multicultural marketing effort?
Depends on your situation and model.

78. 78
Active multicultural
marketers
Newbies & Inactives

79. “Newbies” and “Inactives”
Digital as a test, learn and scale (TLC) tool
79
• Can help determine what model to adopt
• Can help figure out how to message and approach the
multicultural markets
• Hyper-targeting

80. “Actives”
Expand into Digital Direct Response
80
• Paid Search
– Targeting ethnic audiences using a variety of techniques (browser language,
keywords, geography, etc.)
• Behavioral Targeting
– Retargeting
– Network activity

81. “Actives”
Opportunity to expand, evolve your multicultural marketing
81
• Test & Learn Model 2 cross-cultural approach
• Evolve into more digital-centric, oriented multicultural
marketing program to focus on:
– Utility
– Content
– Native advertising
– Community building

82. Our Vision:
Cross-cultural with Digital at it’s Core

83. 83
50% of babies born today in the
U.S. are not white

84. 84
Multicultural consumers are changing the
general market

85. Cross-cultural Strategic Territory Framework
5 Cross-cultural Marketing Approaches
85
Cultural Community Cultural Currency Cultural Authenticity
• Participating in long-standing • Partnership with talent or a • Connecting with new GenMkt
community-based cultural prominent figure within the based on insights driven
events & programs community inward (multicultural) to
outward (gen mkt), or vice-
versa
Cultural Confluence The Cultural Loop
• Turning a segment’s cultural • Linking a brand with a social
values into attributes relevant cause or purpose
to what’s considered the
general market

86. Cross-cultural Strategic Territory Framework
Our Cross-cultural Approach
86
Cultural Community Cultural Currency Cultural Authenticity
• Participating in long-standing • Partnership with talent or a • Connecting with new GenMkt
community-based cultural prominent figure within the based on insights driven
events & programs community inward (multicultural) to
outward (gen mkt), or vice-
versa
Cultural Confluence The Cultural Loop
• Turning a segment’s cultural • Linking a brand with a social
values into attributes relevant cause or purpose
to what’s considered the
general market

87. 87
Digital-centric advertising

88. 8 Components of Digital Strategy
88
Digital
Website Social Media Mobile Advertising
Email Content E-commerce Analytics
[Marketing]

89. Balanced POEM Model
89
• A balanced POEM model involves
using Paid, Owned and Earned
media in concert to deliver the
most cost-effective and impactful
results possible.
• The focus shifts from Paid Media
as emphasis and Earned Media as
the purview of PR to balancing all
3
• Each type of media plays a key
role: catalyst, portability, result

90. 90
Content
Utility

91. 91
Community building
Native Advertising

92. 92
Thank you
@jrvilla
www.thinkmulticultural.com
www.linkedin.com/in/josevilla