Integrating Multicultural
Capabilities into your Agency
Multicultural Marketing in the Digital Age:
October 17, 2010
Overview
• Introduction
• 3 multicultural market forces
• 2 industry trends
• The big [multicultural] takeaway
• Your oppo...
introduction
a little about me
• I’ve been working in advertising for the
last 10 years
• My background :
– Economics
– Digital technology
– Management c...
… and I’m one of the few people you’ll meet
that runs a successful ad agency that never
worked in advertising before.
my story explains a lot
• 1998: I left a consulting career to start a
Hispanic-focused dot com
• Since that day, I found m...
my agency
• I started Sensis in 2000 2 days after
shutting down my dot com
• Sensis was started to address a
small gap I s...
Sensis story
clients I’ve worked with…
agencies I’ve gotten to intimately
know…
But everything about me and Sensis always
comes back to a simple story:
What happens when digital and
multicultural get so...
3 market forces
The growth of U.S. multicultural
market
let’s start with some definitions
• Multicultural markets = various minority
groups
– Hispanic
– African American
– Asian ...
Minorities makes up over 35% of the U.S.
population
65%
16%
12%
5%
2%
White
Hispanic
Black
Asian
Multiracial
Multicultural America
Source: U.S. Census Bureau
Multicultural buying power
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2008 2013
$951
$1,491
$913
$1,213$269
$429
As...
How did we get here?
• Unprecedented immigration spurt of the
1980s
– Similar to that of the early 20th century
– Both hav...
By 2048 the minority will be the majority
Source: U.S. Census Bureau
in 13 years 50% of Americans under 18 will be
minorities
Source: U.S. Census Bureau
Multicultural consumers are
changing the general market
They are young
Young consumers that are:
shaping popular culture
color blind
They are shaping the mainstream:
setting trends in food, fashion, and music
Salsa and ketchup
"leading with ethnic insights"
Multicultural consumers are
themselves changing
A majority are now U.S. born
Multiracial Americans are now the fastest
growing U.S. demographic group (5.3 million)
And digital is changing the game…
Multicultural and digital
• early adopters of new technology
• leading consumers of online content
• highly receptive audi...
Hispanics and Digital
• 24.6 million consumers
– More than half (54%) of U.S. Hispanics use the
Internet
– Internet access...
African Americans and Digital
• 30 million African-American online
– Nearly 80% of all African-Americans are
online
• They...
Asians and Digital
• 14 million Asian Americans online
– Internet penetration nearing 80%
• market is complex and difficul...
2 industry trends
Ethnic ad agencies have fallen
behind
Ethnic ad agencies are stuck in the analog era.
Digital is passing them by
• Only 5% of all Hispanic media spend goes
online
Digital is a division
• Most ethnic ad agencies still treat digital
as a division
– “Digital Director”
Lack of sophistication
• Most media spend goes to Top 3 “ethnic”
digital platforms
– Hispanic:
– African-American:
– Asian...
Large general market agencies
are building multicultural
capabilities
In the last 12 months
Draft FCB has formed a multicultural unit
Home Depot has moved their Hispanic
business to their general market agency, The
Richards Group
Burger King moved their Hispanic
advertising to CP+B
The big [multicultural]
takeaway
My thesis
New definition of “full-service”
Multicultural marketing will become an
integrated capability of full service agencies
A disruptive change
Rapid, chaotic change usually means an
opportunity for businesses that can see and
exploit it
New business models will emerge
• Remember Napster?
– The record industry tried to fight
it
• Apple finally figured out ho...
Future advertising will look
different
Future advertising will look different
• But if you play close enough attention,
you’ll see it’s already out there:
What this means for you
A huge opportunity
Adapt to this new model – embrace and
integrate multicultural capabilities
Starting tomorrow
• Leverage what you already have
• Make multicultural understanding and/or
background part of your new h...
Starting next quarter
• Stop outsourcing multicultural work to
other agencies
• Make digital your entry point
It’s all about digital
This is where ethnic ad shops are opening the
door for you…
Digital Entry Points
• Social
– Multicultural over-indexing in social media
• Mobile
– Multicultural early-adoption of mob...
A bigger challenge
You need to quickly figure out and make
multicultural an integral part of your agency
How quickly?
• Depends on what type of agency you are
(and hope to be)
– National?
– Regional?
– Industry-focused?
– Disci...
THANK YOU!
@jrvilla
www.linkedin.com/in/josevilla
www.thinkmulticultural.com
jrvilla@sensisagency.com
BOLO2010 Villa
BOLO2010 Villa
BOLO2010 Villa
BOLO2010 Villa
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  • I didn’t make this up. Nor do I entirely agree with this nomenclature. However, this is how corporate american has packaged it, and we all know that money moves down form corporate america down to us, agencies, and then down to media, etc. so their definition wins.
  • 107 million people
  • Hispanics’ median age, 27.4, is nine years below that of the wider population.
  • $462.3 million to $298.9 million
  • This is McDonald’s corporate mantra. Companies like P&G, Toyota, and Budweiser are following suit.
  • BOLO2010 Villa

    1. 1. Integrating Multicultural Capabilities into your Agency Multicultural Marketing in the Digital Age: October 17, 2010
    2. 2. Overview • Introduction • 3 multicultural market forces • 2 industry trends • The big [multicultural] takeaway • Your opportunity and challenge
    3. 3. introduction
    4. 4. a little about me
    5. 5. • I’ve been working in advertising for the last 10 years • My background : – Economics – Digital technology – Management consulting • I kind of stumbled into this business… Jose
    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. 7. my story explains a lot • 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. 8. my agency • I started Sensis in 2000 2 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 10 years I’ve realized that “that little gap” was actually bigger and more transformative than anything I could have ever imagined in 2000
    9. 9. Sensis story
    10. 10. clients I’ve worked with…
    11. 11. agencies I’ve gotten to intimately know…
    12. 12. But everything about me and Sensis always comes back to a simple story: What happens when digital and multicultural get so big and transformative that they can no longer be nicely packaged as marketing specialties?
    13. 13. 3 market forces
    14. 14. The growth of U.S. multicultural market
    15. 15. let’s start with some definitions • Multicultural markets = various minority groups – Hispanic – African American – Asian American – GLBTQ – Other • Middle Eastern, European, South Asian, Native American, Disabled, …
    16. 16. Minorities makes up over 35% of the U.S. population
    17. 17. 65% 16% 12% 5% 2% White Hispanic Black Asian Multiracial Multicultural America Source: U.S. Census Bureau
    18. 18. Multicultural buying power $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2008 2013 $951 $1,491 $913 $1,213$269 $429 Asian African-American Hispanic In billions… with a “B”
    19. 19. How did we get here? • Unprecedented immigration spurt of the 1980s – Similar to that of the early 20th century – Both have fundamentally remade the ethnic landscape of the U.S. • 83% of U.S. population growth during last decade came from minorities** * Source: Professor Jacob Vigdor, Duke University **Source: Brookings Institute
    20. 20. By 2048 the minority will be the majority Source: U.S. Census Bureau
    21. 21. in 13 years 50% of Americans under 18 will be minorities Source: U.S. Census Bureau
    22. 22. Multicultural consumers are changing the general market
    23. 23. They are young
    24. 24. Young consumers that are: shaping popular culture color blind
    25. 25. They are shaping the mainstream: setting trends in food, fashion, and music
    26. 26. Salsa and ketchup
    27. 27. "leading with ethnic insights"
    28. 28. Multicultural consumers are themselves changing
    29. 29. A majority are now U.S. born
    30. 30. Multiracial Americans are now the fastest growing U.S. demographic group (5.3 million)
    31. 31. And digital is changing the game…
    32. 32. Multicultural and digital • early adopters of new technology • leading consumers of online content • highly receptive audiences for online advertising
    33. 33. Hispanics and Digital • 24.6 million consumers – More than half (54%) of U.S. Hispanics use the Internet – Internet access growing at a faster rate (13% since 2004) than among any other group • Total purchasing power of $900 billion • The mobile device is an important point of Internet entry for Hispanics – They are heavy “data plan” users – Over-index in advanced mobile usage • Hispanics spend more time on social media sites than their general market counterparts
    34. 34. African Americans and Digital • 30 million African-American online – Nearly 80% of all African-Americans are online • They are also among the early adopters of the mobile Internet
    35. 35. Asians and Digital • 14 million Asian Americans online – Internet penetration nearing 80% • market is complex and difficult to reach, due to the wide range of original nationalities, subcultures and languages. • Internet provides the greatest opportunity for micro- and macro-targeting consumers in this market.
    36. 36. 2 industry trends
    37. 37. Ethnic ad agencies have fallen behind
    38. 38. Ethnic ad agencies are stuck in the analog era.
    39. 39. Digital is passing them by • Only 5% of all Hispanic media spend goes online
    40. 40. Digital is a division • Most ethnic ad agencies still treat digital as a division – “Digital Director”
    41. 41. Lack of sophistication • Most media spend goes to Top 3 “ethnic” digital platforms – Hispanic: – African-American: – Asian: – GLBTQ:
    42. 42. Large general market agencies are building multicultural capabilities
    43. 43. In the last 12 months
    44. 44. Draft FCB has formed a multicultural unit
    45. 45. Home Depot has moved their Hispanic business to their general market agency, The Richards Group
    46. 46. Burger King moved their Hispanic advertising to CP+B
    47. 47. The big [multicultural] takeaway
    48. 48. My thesis
    49. 49. New definition of “full-service”
    50. 50. Multicultural marketing will become an integrated capability of full service agencies
    51. 51. A disruptive change
    52. 52. Rapid, chaotic change usually means an opportunity for businesses that can see and exploit it
    53. 53. New business models will emerge • Remember Napster? – The record industry tried to fight it • Apple finally figured out how to exploit it – Tower Records died – iTunes was born
    54. 54. Future advertising will look different
    55. 55. Future advertising will look different • But if you play close enough attention, you’ll see it’s already out there:
    56. 56. What this means for you
    57. 57. A huge opportunity
    58. 58. Adapt to this new model – embrace and integrate multicultural capabilities
    59. 59. Starting tomorrow • Leverage what you already have • Make multicultural understanding and/or background part of your new hire evaluations
    60. 60. Starting next quarter • Stop outsourcing multicultural work to other agencies • Make digital your entry point
    61. 61. It’s all about digital
    62. 62. This is where ethnic ad shops are opening the door for you…
    63. 63. Digital Entry Points • Social – Multicultural over-indexing in social media • Mobile – Multicultural early-adoption of mobile technologies • Digital media – Hispanics & African-Americans spend more time online than with any other medium
    64. 64. A bigger challenge
    65. 65. You need to quickly figure out and make multicultural an integral part of your agency
    66. 66. How quickly? • Depends on what type of agency you are (and hope to be) – National? – Regional? – Industry-focused? – Discipline-focused?
    67. 67. THANK YOU! @jrvilla www.linkedin.com/in/josevilla www.thinkmulticultural.com jrvilla@sensisagency.com
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