Hispanic Cyber Study 2010

Hispanic Cyberstudy Marketing to the web’s most rapidly growing population

Hispanic Cyberstudy Marketing to the web’s most rapidly growing population A study by AOL Advertising & Cheskin: Why and how are Hispanics using the internet in their daily lives? Quantitative Methodology Telephone Survey: 717 Hispanic households across the US (90 via cell phone) Online Survey: 616 Hispanic households across the US 634 General Market across the US For years, marketers have struggled with the complexities of the Hispanic market. Given the blistering growth of their population and subsequent rise in purchasing power, AOL wants to help marketers and agencies understand the changing Hispanic market, and improve their advertising performance with this segment. To stay ahead of market trends, AOL Advertising commissioned Cheskin Added Value to conduct research about Online Hispanics. This is a continuation of a study AOL began in 2004.

The basics

America, the diversified A forecast of the 2010 Census 50 Million Hispanics will be living in the US Nearly one in six US residents will be Hispanic Los Angeles County is expected to be home to the largest Hispanic population in the US – exceeding that of Costa Rica Experts anticipate that the US will be more diverse than ever, with only 22% of households expected to be the iconic American family of mom, dad and kids. The Hispanic population is expected to be much younger compared to other racial groups. SOURCE: Francese, Peter. (2009). 2010 America: What the 2010 Census means for Marketing and Advertising. Advertising Age. Retrieved from http://adage.com/

The American Yardstick Market segmentation of Online Hispanics based on acculturation 23% 31% 46% Hispanic Dominant Biculturals US Dominant • Predominantly speak • Speak both languages • Speak English at home Spanish at home at home • Most media consumption • Most media consumption • Most media consumption in English in Spanish in English • US-born • Foreign-born • Foreign and US-born • Mean age 37 • Mean age 40 • Mean age 34 • Lived in the US 36 years • Lived in the US seven • Lived in the US 22 years average years average average Currently, marketers tend to divide Hispanics into three different categories: Hispanic Dominant, Bicultural and US Dominant. Offline, the sizing of these groups is reversed, with Hispanic Dominants representing 52% of the segment, Biculturals 19% and US Dominants 28%.

A Different Measure Segmenting by life stage group No Kids Young and Free 30% Average 26 YO Single 2 Kids (0-11) Young Family 17% Average 33 YO Married 2 Kids (12-17) Mature Family 23% Average 40 YO Married No Kids Prime of Life 18% Average 41 YO Married Kids 18+ Empty Nester 13% Average 57 YO Married Segmentation by life stage provides another way to understand the values and interests of Hispanics, based on their preferences and behaviors, which are not necessarily unique to their cultural background or acculturation level.

Pursuing passions online

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Entering the mainstream Internet usage among Hispanics is catching up to the general population 2002 2009 75% 71 65% 57 58 55% 45% 35% 41 Hispanic General Market Since our first study in 2002, the number of Hispanics online has grown significantly – faster, in fact, than the total US online population. The online adoption gap between Hispanics and the General Market has narrowed to 13 points over the past few years. *Note: General Market data provided by PEW Research Center in July 2008; Hispanic data provided by AOL Advertising Cyber Study in July 2008.

Who are they? Hispanics vs. General Market users General Hispanic Market AGE: 37 AGE: 46 HOUSEHOLD INCOME: $50K+ HOUSEHOLD INCOME: $75K+ CHILDREN: YES! Sandra 6 and Danny 5 CHILDREN: YES! Stephanie, 22 Both offline and online Hispanics are much younger than the general population, with larger households and younger children. 46% of Online Hispanics are under 35 years old, compared to just 28% of the US internet population. Meanwhile, 30% of the General Market online population are empty nesters – only 13% of Hispanics fall into this group.

Young Hispanics log on most Online Offline 100% 23 34 44 40 67 77 66 56 60 50% 33 0% Young and Free Young Family Mature Family Prime of Life Empty Nesters Online Hispanics are younger than their offline counterparts, who are also more likely to be empty nesters.

Hispanics love and trust the internet Hispanics are more enthusiastic about the benefits of the internet than the General Market – so much so that they have more confidence in online product ratings than the opinions of their friends. 28% Friends’ Opinions 72% Product Rating Sites “Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate

They view the internet as a place of discovery and connection Hispanic General Market 64 51 57 43 44 25 36 30 27 15 The best place Always go to Use the internet Internet is an A great place to keep up with the internet to to keep up with important tool to meet people current events find deals pop culture for building a with similar better life views Hispanics have a high regard for the internet as a medium for information and socialization. Fully one-third of all Hispanics, regardless of acculturation and life stage, view the internet as a key component in building a better life.

The internet informs their purchase process Hispanic General Market 90% 85% 80% 75% 70% Start Learn about Learn about Get advice Where to Compare Make final learning brands features on what to buy prices decision process buy Hispanic consumers view the internet as a very important information source in the purchase decision-making process. They look to the internet to learn about products, brands, features, stores and pricing.

Not only are they technology leaders... Hispanic vs. the General Market: How they access the internet 100% vs 100% 18% vs 11% 32% vs 20% Compared to the General Market, Hispanics are more sophisticated technology users. Their use of a wide range of devices (e.g. smartphones and gaming devices) to access the internet illustrates a high level of comfort with and willingness to try new technologies.

...Hispanics are early adopters Hispanic General Market “Online Hispanics are eager and adventurous.” 27 13 36 22 33 24 Early adopters Considered tech expert Keep up with the by friends and family latest technology Compared to General Market users, Online Hispanics are more adventurous and eager to try new media communication formats and technologies. They also keep up with the latest tech news, and like to help friends and family with their purchases.

Everything you know is wrong Acculturation doesn’t equate with technological sophistication Hispanic Dominant Bicultural US Dominant PC access 100% 100% 100% Keep up with the latest technology 29% 35% 34% Considered tech expert by friends 41% 40% 31% and family Early adopter 41% 25% 22% Hispanics are universally embracing new technologies regardless of their acculturation level. Furthermore, contrary to common stereotypes, the most acculturated Hispanics are not necessarily the most technologically savvy. In fact, less acculturated Hispanics tend to be early adopters, evaluating new formats and spreading the word in their communities.

A look at the future

The Hispanic power user AGE: 34 GENDER: Male EMPLOYMENt: Full-time FAMILY StAtUS: Married with young kids HOURS ONLINE: 24 hrs/week One-fifth of Online Hispanics are power users who give us a glimpse of future adoption by mainstream users. This group spends over 24 hours per week on the web, connecting over half the time via mobile (57%) or other devices (47%). They also view themselves as innovators, keeping up with the latest technology (100%), serving as tech experts to friends and family (100%) and adopting new technologies first (100%).

Catching the viral bug Power User Mainstream Hispanics Via email (message or link) 79% 91% Over the phone/ in-person 38% 55% IM to friends/ family 64% 51% Write a blog 52% 21% Social networking site 68% 55% Write a review on a review site 28% 6% Traditional Viral Power users are also highly influential in their communities, spreading the word about deals (91%) or the latest entertainment news (87%). They are content creators and use the web to broadcast their point of view, while mainstream Hispanics are more traditional in how they communicate with others.

Connecting through life stages

The old view traditional marketing to Online Hispanics 0 20 40 60 80 100 10 30 50 70 90 Hispanic 75 Dominant 25 Bicultural 12 88 US 1 Dominant 99 Spanish English To date, messaging for the Hispanic community has been organized around acculturation and language. While 75% of Hispanic Dominants prefer product marketing information in Spanish, there is an overwhelming preference among Bicultural and US Dominants for marketing in English.

A new perspective the importance of life stages Spanish English 100% 96.8 71.6 65.6 56.9 81.2 50% 3.2 28.4 34.4 43.1 18.8 0% Young and Free Young Family Mature Family Prime of Life Empty Nesters Marketers should always take their target audience’s life stage into account before determining the language/media mix. If we look at the language preference for websites by life stage, English marketing messages are favored by virtually all of the youngest Hispanics and most of the other market segments. This has important implications for marketers, who should always take into consideration their target segment’s needs and passions before determining the appropriate language/media mix.

Can you say it in English? Can’t do all the same things on Spanish site 25.3% The English site is better / more comprehensive 23.1% English site has more detail than the Spanish Site 21.1% English site has more useful information 17.9% English site has better deals than the Spanish 8.8% In general, Hispanics recognize the disparity between the availability of English and Spanish language content. They perceive English sites as more comprehensive, detailed and useful than Spanish- language counterparts. This belief is prevalent across all levels of acculturation and life stages.

Biculturals and US Dominants are younger Hispanic Dominant Bicultural US Dominant 100% 21 21 20 5 9 6 39 27 32 50% 18 15 21 25 27 14 0% Young and Free Young Family Mature Family Prime of Life Empty Nester The preference for English among the younger segments is also influenced by the demographic composition of Bicultural and US Dominant Hispanics, who tend to be younger and more engaged in the digital lifestyle – making them the sweet spot for most advertisers.

A closer look: Audience perspective

Media consumption Online Hispanics prefer English language online media 14.36 9.3 12.42 2.5 20 3 Hispanic dominant Bicultural US dominant Hours Online in English Hours Online in Spanish Most Hispanics consume online media in English – even Hispanic Dominants. This reflects the greater availability of English language sites. This is not unexpected, as 27.6% of web content is created in English, with Chinese second at 22.1% and Spanish a distant third at 7.9%. Source: Internet World Stats. (2009). Top 3 Internet Languages. Retrieved December 8, 2009 from www.internetworldstats.com/languages.htm

A tie between tongues Online Hispanics seek out the best experience 60 Keep Up With Home Country News 45 Entertainment News % Consume content in English multiple Follow Passions times per week & Hobbies 30 Keep Up With US News Financial 15 Information Research Purchases 0 0 15 30 45 60 % Consume content in Spanish multiple times per week The chart above shows the language consumption patterns among consumers who prefer Spanish. Clearly, they will consume similar types of content in both languages. This suggests that Online Hispanics are not opting for one language over the other. Rather, they’re looking for the best online experience regardless of language.

Quality matters Hispanics distrustful of Spanish language sites I trust the Spanish Site More 3.1% Spanish site has more useful information 2.8% One of the reasons why so many Hispanics prefer English content is their mistrust of sites in Spanish, which often are little more than literal translations of English content. Only 3% of respondents found Spanish language sites more trustworthy and useful than those in English, leaving an important percentage of the Hispanic segment feeling underserved.

When Spanish is preferred… Do it well It’s more important than just straight translation 51.9 47 It takes into account my ties to home country 24 75 It reflects my experience in the US 44 56 0 20 40 60 80 100 % Consume content in Spanish multiple times per week It Matters Very Important Those who prefer Spanish marketing find that tailored content makes them feel closer to home. They also favor a meaningful transcreation over a literal translation of an English site.

When English is preferred... Don’t generalize – be relevant It takes into account my ties to home country 36 33 It reflects my experience in the US 33 33 0 20 40 60 80 100 % Consume content in English multiple times per week It Matters Very Important Even where there is a high preference for English content and marketing – particularly among young Hispanics – a remarkable 66% of the audience finds it important that content takes into account their home country and their experience in the US.

Appearance counts Be respectful with creative executions, images It has pictures of people who look like me For those who prefer Spanish marketing 40.8% For those who prefer English marketing 57% 0 20 40 60 80 100 Media representation issues become more important for more acculturated and younger Hispanics. Imagery should be carefully selected to provide positive identification with culture without stereotyping.

Summary Hispanics are influencing Life stage is key tailor your message to the mainstream Your language/media mix their experience Online Hispanics have should be based on the life stage Hispanics prefer messaging proven to be tech-savvy of your consumer. that takes into account their media trendsetters. backgrounds and experiences. For more information, please send your request to research.team@corp.aol.com

the team Liz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick Special thanks to the 360 Creative Team at AOL for producing this booklet, Guy Garcia for his feedback and time, Rebecca Abravanel for answering all of our questions, and Olivia Maloney, Miguel Ferrer and Edgar Ochoa for sharing their Hispanic expertise.

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Hispanic Cyber Study 2010

by Path of the Blue Eye Project on Feb 16, 2010

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Hispanic Cyber Study 2010 — Presentation Transcript