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Multicultural Marketing

Multicultural Marketing

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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.


  • 1. Multicultural Marketing in the Digital Age:
    Integrating Multicultural Capabilities into your Agency
    October 17, 2010
  • 2. Overview
    3 multicultural market forces
    2 industry trends
    The big [multicultural] takeaway
    Your opportunity and challenge
  • 3. introduction
  • 4. a little about me
  • 5. I’ve been working in advertising for the last 10 years
    My background :
    Digital technology
    Management consulting
    I kind of stumbled into this business…
  • 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
    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. 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. Sensis story
  • 10. clients I’ve worked with…
  • 11. agencies I’ve gotten to intimately know…
  • 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. 3 market forces
  • 14. The growth of U.S. multicultural market
  • 15. let’s start with some definitions
    Multicultural markets = various minority groups
    African American
    Asian American
    Middle Eastern, European, South Asian, Native American, Disabled, …
  • 16. Minorities makes up over 35% of the U.S. population
  • 17. Multicultural America
    Source: U.S. Census Bureau
  • 18. Multicultural buying power
    In billions… with a “B”
  • 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. By 2048 the minority will be the majority
    Source: U.S. Census Bureau
  • 21.
  • 22. in 13 years 50% of Americans under 18 will be minorities
    Source: U.S. Census Bureau
  • 23. Multicultural consumers are changing the general market
  • 24. They are young
  • 25. Young consumers that are:
    color blind
    shaping popular culture
  • 26. They are shaping the mainstream:
    setting trends in food, fashion, and music
  • 27. Salsa and ketchup
  • 28. "leading with ethnic insights"
  • 29. Multicultural consumers are themselves changing
  • 30. A majority are now U.S. born
  • 31. Multiracial Americans are now the fastest growing U.S. demographic group (5.3 million)
  • 32. And digital is changing the game…
  • 33. Multicultural and digital
    early adopters of new technology
    leading consumers of online content
    highly receptive audiences for online advertising
  • 34. 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
  • 35. 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
  • 36. 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.
  • 37. 2 industry trends
  • 38. Ethnic ad agencies have fallen behind
  • 39. Ethnic ad agencies are stuck in the analog era.
  • 40. Digital is passing them by
    Only 5% of all Hispanic media spend goes online
  • 41. Digital is a division
    Most ethnic ad agencies still treat digital as a division
    “Digital Director”
  • 42. Lack of sophistication
    Most media spend goes to Top 3 “ethnic” digital platforms
  • 43. Large general market agencies are building multicultural capabilities
  • 44. In the last 12 months
  • 45. Draft FCB has formed a multicultural unit
  • 46. Home Depot has moved their Hispanic business to their general market agency, The Richards Group
  • 47. Burger King moved their Hispanic advertising to CP+B
  • 48. The big [multicultural] takeaway
  • 49. My thesis
  • 50. New definition of “full-service”
  • 51. Multicultural marketing will become an integrated capability of full service agencies
  • 52. A disruptive change
  • 53. Rapid, chaotic change usually means an opportunity for businesses that can see and exploit it
  • 54. 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
  • 55. Future advertising will look different
  • 56. Future advertising will look different
    But if you play close enough attention, you’ll see it’s already out there:
  • 57.
  • 58.
  • 59.
  • 60. What this means for you
  • 61. A huge opportunity
  • 62. Adapt to this new model – embrace and integrate multicultural capabilities
  • 63. Starting tomorrow
    Leverage what you already have
    Make multicultural understanding and/or background part of your new hire evaluations
  • 64. Starting next quarter
    Stop outsourcing multicultural work to other agencies
    Make digital your entry point
  • 65. It’s all about digital
  • 66. This is where ethnic ad shops are opening the door for you…
  • 67. Digital Entry Points
    Multicultural over-indexing in social media
    Multicultural early-adoption of mobile technologies
    Digital media
    Hispanics & African-Americans spend more time online than with any other medium
  • 68. A bigger challenge
  • 69. You need to quickly figure out and make multicultural an integral part of your agency
  • 70. How quickly?
    Depends on what type of agency you are (and hope to be)
  • 71. THANK YOU!