U.S. Hispanic Info & Insights, Michelle Villalobos, Speaker & Founder, Mivista, Inc.

U.S. Hispanic Market Insights

As of 2006, the market represented a total spending power of almost $800 billion
Spending power is estimated to grow to $1.2 trillion by 2011
Less media saturated
More likely to ACT on marketing messages
Must be addressed and engaged differently - require specialized strategies
Hispanics strongly influence popular culture
They are more brand-loyal
Media-mix will be different due to different media consumption habits
In 2004, 37% of non-Hispanic whites thought Latinos influenced everyone's lifestyle; now, it's 44%
“ Reverse Acculturation” phenomenon
The challenges are great, but the opportunities are vast. U.S. Hispanic Market - Relevance Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Hispanic Market Weekly : " A Hispanic Vote For Advertising, September 24, 2007

Overview - Macro Perspective Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Latin Force Group, LLC, American Marketscape DataStream, 2008 Series. U.S. Hispanic Market Overview - Macro Change in Population 2000 - 2006
In 1967 the U.S. population was 200 million, in 2007 it is over 300 million
About 53% of the extra 100 million people are recent immigrants or their descendants
U.S. population growth is around .894%/year, the world's highest among developed countries
The U.S. Hispanic population grew over 3% between 2003 and 2004
Hispanics comprise the country's largest immigrant community
In 5 years, the US Hispanic population has grown 24%
Hispanics about 10 years younger than general market
There are about 45 million Hispanics in the USA.
Hispanics comprise about 15.5% of the US population
They are estimated to grow to over 25% by 2050
Population trending away from rural areas
Mean population center has moved West and South
Growth due to immigration plus higher birthrate

Age
The U.S. Hispanic population is substantially younger than the general population
Income
U.S. Hispanic income tends to be lower than general market income
Education
High-school education gap is close to general population, college isn't
Country of Origin Attachment
Native country influences food, music and other preferences,
Affects where immigrants settle in the U.S.
Consumer Spending
Purchasing habits
Acculturation & Language
Hispanics vary widely with respect to language preference and other acculturation indicators
Media Consumption Habits
Attitudes
Family, religion, politics and more
U.S. Hispanic Market Overview - Population Growth & Characteristics Overview - Hispanic Market Overall Characteristics

Age U.S. Hispanic Market Population - Age Source: US Census Bureau, American Community Survey2005

Income U.S. Hispanic Market Population - Age Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series

U.S. Hispanic Market Population - Age Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series Income

U.S. Hispanic Market Population - Age Education
As of 2006
86% of all U.S. adults 25 and older have at least a high school diploma
59.0% of Hispanics over 25 have a high school diploma or higher
33.4% of the general U.S. pop over 25 has an associate's degree or higher
16.0% of Hispanics have an associate's degree or higher
25.3% of the general population over 25 has a college degree or higher
10.7% of Hispanics over 25 have a college degree or higher
Source: Annual Social and Economic Supplement to the Current Population Survey (CPS), U.S. Census, 2006

Most Hispanic immigrants maintain some kind of connection to their native country through "transnational activities," which are: sending remittances, traveling back, or telephoning relatives, but the extent of their attachment varies considerably.
Of foreign-born Hispanics:
9% do all 3 of these
28% do none of these activities
63% engage in 1 or 2 of these activities
There are significant differences by country of origin:
Colombians and Dominicans maintain more active connections than Mexicans
Cubans have the least contact
Source: Pew Hispanic Center
Attachment to Country of Origin U.S. Hispanic Market - Attachment to Country of Origin

U.S. Hispanic Market Population - Age
Hispanic spending is substantial in all major categories
Difference from General Market due in large part to their youth and large family size
Top three categories for expenditures are:
Shelter & Insurance
Food & Beverage
Transportation & Insurance
Within the Food category, Hispanics over-index (spend more per household than the average multicultural household) in these categories:
Fresh Vegetables
Fish & Seafood
Fresh Fruits
Eggs
Beef
Natural foods
Emphasize quality
"Homemade"
Consumer Spending Habits Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series

Attitudes U.S. Hispanic Market Population - Age
Family
Health/weight
Gender
Religion
Success/achievement/future
Pride in culture/heritage
Country of origin
Politics
Education
Collectivism
"Destino"
Discrimination
Duality
Money/waste
Time
Source: Pew Hispanic Center: National Survey of Latinos: Education, 2004 Source: Hispanic Marketing Insights Inspired by Latin American and U.S. Popular Literature," Holly McGavock, M.A., Felipe Korzenny, PH.D. at the Center for Hispanic Marketing Communication, Florida State University, 2007.

Americanizado
English dominant (nearly no Spanish)
Born in the USA
Few Hispanic cultural practices
Nuevo Latino
English preferred (some Spanish)
Born in the USA
Some Hispanic cultural practices
Often "retro-acculturated"
Bicultural
Bilingual (or nearly)
Immigrated as child or young adult
Many Hispanic cultural practices
Hispano
Spanish preferred (some English)
Immigrated as an adult, in USA 10+ years
Predominant Hispanic cultural practices
Latinoamericano
Spanish dominant (nearly no English)
Recently immigrated as an adult
Primarily Hispanic cultural practices
Identify with home country more than USA
Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series Acculturation - Language & Beyond

Americanizado
Born in the USA
Nuevo Latino
Born in the USA
Bicultural
Hispano
Latinoamericano
Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series 69% Acculturation - Language & Beyond

Americanizado
Born in the USA
Nuevo Latino
Born in the USA
Bicultural
Hispano
Latinoamericano
Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series 59% Acculturation - Language & Beyond

U.S. Hispanic Market Population - Age Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series Acculturation & Socioeconomic Status

U.S. Hispanic Market Population - Age Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series Acculturation & Country of Origin

U.S. Hispanic Media Consumption & Attitudes U.S. Hispanic Market - Media Consumption Habits
Roughly six in ten (59%) of Hispanics say they "enjoy looking at or listening to advertising,"
Compare that with 30 percent of non-Latino whites who feel this way
But only 25% of those surveyed feel that today's marketing is personally and culturally relevant to their lives
"Authenticity is required. The messages have to be real and relevant to the Hispanic consumer."
Hispanics' need for preserving cultural elements has heightened in the past 4 years:
In 2003, 48% of Hispanics surveyed said it is important to preserve music and songs
In the 2007 study, it was 62%
With food and beverage:
36% of Latinos in 2003 said was important to preserve traditions
This year it was 61%
Language is important - but relevance and content are as or more important.
Key is CHOICE.
Source: Hispanic Market Weekly, "A Hispanic Vote For Advertising," September 24, 2007

U.S. Hispanic Media Consumption - TV U.S. Hispanic Market - Media Consumption Habits
26 million Hispanics watch television in an average week
Broadcast television dominates Hispanic viewership (note lower cable service penetration)
Roughly 71% of Hispanics' television time is spent watching broadcast networks (vs. 58% of non-Hispanic males and 62% of non-Hispanic females'
Hispanics are equally likely to have satellite service – 25% vs. 24% of non-Hispanics
Spending on Cable TV to target Hispanics is growing faster than spending on network TV
Telenovelas don’t completely dominate Hispanics viewing preferences!
68% of those surveyed indicate they watch news programs and political talk shows
43% percent say they watch telenovelas
Game shows are the least popular format, only 11%
55% of U.S. Hispanics watch television in both English and Spanish
12% watch only in English
31% exclusively in Spanish
57% of the U.S. Hispanics born in other countries watch television in English
While almost 75% of those born in the U.S. watch Spanish-language television
Sources: Hispanic Market Weekly: "What They're Watching," July 03, 2006; Hispanic Market Weekly, "Kagan Forecasts Great Growth For Hispanic Radio, TV" February 26, 2007; Hispanic Market Weekly: "Latinos Have Different Viewing Habits," June 26, 2006

U.S. Hispanic Media Consumption - Magazines U.S. Hispanic Market - Media Consumption Habits
Hispanics read magazines on par with (sometimes more than) the general population:
85% of Hispanics read magazines
47% trust the information in magazines
43% trust magazine advertising
73% say magazine ads give them idea about what to buy
Hispanic consumers view magazines as credible sources of information
They are more likely to act on advertising that appears in magazines than the overall population
They perceive magazines as inspirational and "aspirational"
View advertising in magazines as "part of the reading experience"
They read about 8.5 issues per month, similar to the U.S. average
The most avid Hispanic magazine readers are Spanish dominant
Hispanics are more likely to consider ads as a seamless part of the magazine
Less chance of saturation
Engagement
Sources: Magazine: Magazine Publishers Association "Hispanic/Latino Profile" 2006; Hispanic Market Weekly "Magazines Score With Hispanics," September 18, 2006; Northwestern Reader Research Study, 2004.

U.S. Hispanic Media Consumption - Newspapers U.S. Hispanic Market - Media Consumption Habits
Hispanics read newspapers more faithfully than the general population
Most read in Spanish (only 20% are "heavy" or "somewhat heavy" general market paper readers)
Spanish-language newspapers have an average of 2.9 readers per copy (vs. 1.9 to 2.1)
Nearly every major Hispanic newspaper posts circulation growth
Less chance of saturation
The nearly 20 million Hispanic newspaper readers in the U.S. aren't going anywhere: Hispanic readers don't abandon their Spanish papers for English versions as they become acculturated
Content involving family/lifestyle information, local community news and store ads are especially important to the Hispanic market
Sources: Associated Press, August 26, 2006; NAHP; Newspapers Association of America, Hispanic Press, NAHP, Dirks, Van Essen & Murray; TNS Market Development/ Hoy , NAHP; 2007 Newspaper Association of America " The Unique Audience of Hispanic Newspapers," NAA 2007 Markieting Conference, Las Vegas, prepared by Alloy Media + Marketing.

U.S. Hispanic Media Consumption - Radio U.S. Hispanic Market - Media Consumption Habits
Some research shows that radio content and ads are more trusted by and have a greater emotional connection with Hispanics than with general market listeners
A 2006 RAEL (Radio Ad Effectiveness Lab) study found that:
32% Spanish-language radio listeners believe radio ads are fun (32%)
15% of non-Hispanics believe they are fun
33% believe ads are honest
13% of non-Hispanics believe they are honest
Why?
There is less "fatigue" from marketing messages among the Hispanic market
Radio tends to be a good source of relevant information
Source: Hispanic Market Weekly: "A Stronger Connection, Receptivity To Radio Ads," October 09, 2006.

U.S. Hispanic Market - Media Consumption - Internet
55% to 56% of US Hispanics have access to or use the internet (71% of general Market)
Between April 2005 and April 2006, over 1.6 million Hispanics came online for the first time
Just 1 in 3 Spanish-dominant Hispanics go online BUT they also represent the most growth
Online Hispanics are an “upscale mass market”
56% are college educated
21% are Spanish dominant
27% bilingual
52% English dominant
English or Spanish?
Strategies - portals
Content
Engagement
Relevance
Predictors of usage
Sources: Synovate 2006 US Diversity Markets Report, Pew Hispanic Center, Internet Study March, 2007; comScore Media Metrix Study, April 2006; Hispanic Market Weekly "Online Activity Lags For U.S. Latinos" March 19, 2007 Source: ComScore Media Metrix U.S. Hispanic Media Consumption - Internet Hispanic Online Growth by Language April 05-April 06

U.S. Hispanic Market - Media Consumption - Internet Source: Jupiter Research "Marketing to U.S. Hispanics Online - Tapping Into A Young, High-Speed Audience." 2005 U.S. Hispanic Media Consumption - Internet

U.S. Hispanic Market - Media Consumption - Internet Source: AOL 2006 Hispanic Cyberstudy U.S. Hispanic Media Consumption - Internet Hispanics who use the internet are increasingly relying on it to make purchasing decisions

U.S. Hispanic Market - Media Consumption - Internet U.S. Hispanic Media Consumption - Internet Source: AOL 2006 Hispanic Cyberstudy Overall, Hispanics tend to use the Internet in English. But this may be less a function of preference and more one of content availability. Many sites simply are not available in Spanish.

U.S. Hispanic Market - Media Consumption - Internet U.S. Hispanic Media Consumption - Internet
Highest internet penetration levels:
Miami
San Antonio
New York
Lowest internet penetration levels:
Pheonix
Dallas
Los Angeles and San Francisco
However, note absolute numbers:
Los Angeles - 50% of 4.6 million is a lot of Hispanics online!
Why relevant?
Identify the market
Identify media usage/preferences
Adapt the message to the media
Source: AOL 2006 Hispanic Cyberstudy

Regional & State Perspective Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Latin Force Group, LLC, American Marketscape DataStream, 2008 Series. U.S. Hispanic Market Overview - Regional & State
Hispanics are concentrated in certain areas of the country - but growth is almost everywhere
California and Texas are the most populous states in the country
49% of US Hispanics live in California (13.1 million) or Texas (8.4 million)
New Mexico has the highest proportion of Hispanics (43% of its population)
The Hispanic population of Los Angeles County is over 4.6 million
Most U.S. Hispanics are of Mexican descent - about 70%
Most U.S. Hispanics of Mexican heritage are concentrated in West and Southwest
Non-Hispanic whites are a minority in 315 counties, including some of the largest (LA, Chicago)
Non-Hispanic whites are a minority in California, Texas, New Mexico, Hawaii and DC
While the majority of Hispanics are concentrated in California, Texas, New York, Florida and Illinois, the fastest growing areas for Hispanic population are: Charlotte, Atlanta, Raleigh-Durham, Indianapolis, Orlando, Portland (OR), and Minneapolis.

Regional & State Perspective U.S. Hispanic Market Overview - Regional & State States with Greatest Population Growth

Top 25 States - Sorted by Number of Hispanics U.S. Hispanic Market Population - Top 25 States California Texas Florida New York Arizona Illinois New Jersey Colorado Source: Latin Force American Marketscape DataStream, 2008 Series

Top 25 DMAs - Sorted by Overall Size U.S. Hispanic Market Population - Age Source: Latin Force American Marketscape DataStream, 2008 Series

U.S. Hispanic Market Population - Age Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series Acculturation in Top 5 DMAs

Are you seeking employing Hispanic talent in key decision making roles?
Are you buying from Hispanic businesses?
Do you give back to the Hispanic community and support Hispanic-friendly public policy?
Does your company mirror the demographics of the consumer base with the employee population?
Do you ensure wage and benefits equity with the overall employee population?
Do you track and monitor promotion and attrition rates of Hispanics?
Do you invest in programs that address issues of concern to the Hispanic community?
Do you set standards and monitor Hispanic employment practices of vendors?
Does the company track vendor expenditures to Hispanic demographic groups?
Can you award more contracts to Hispanic vendors?
Does the company develop Hispanic vendor capacity by providing access to capital, assistance, and opportunities?
Will you target and develop at least one Hispanic vendor into their top ten-vendor list?
Source: Hispanic Association of Corporate Responsibility
U.S. Hispanic Market Population - Corporate Commitment Committing to the Hispanic Market - From the Inside Out

U.S. Hispanic Market - Food Preferences
Case Studies - Pizza Patr ón
Mission/message : " Committed to serving Hispanic core customers"
Product : Inexpensive Pizza
Placement : Predominantly Hispanic communities
Promotions :
From "A Good Deal" to "Más Pizza, Menos Dinero"
"Buy pizzas with pesos" and "Bienvenido Paisano"
El Patrón (the Boss) - a fedora-topped, mustached man
Franchise look and feel: shed references to Italy,
Spanish/bilingual staff, advertising and marketing
Price : Inexpensive ($4.99)
Result : growth in sales, but also backlash
Source: brandchannel.com, Alycia de Mesa, August 6, 2007

U.S. Hispanic Market - Food Preferences Source: Advertising Age, January 8th, 2007; Google Video
Case Studies
Mission/message : "For your Future"
Product : Hybrid vehicle
Promotions/methodology :
TV Ads
Superbowl placement (25% of Hispanics over 18 watch)
Address relevant issues: Family, education, future, language
Notice no mention of specific numbers - mileage, horsepower
Emotional appeal
Result: Camry registrations grew 32% among Hispanics

Case Studies - Republican National Campaign, 2004
Purpose: Raise support for Republican party among "Latinos"
Messages/touchstones/tactics :
History
Pride in culture/heritage
Family - "Comes first, helps one another"
Values - "Strong, conservative values"
Religion
Economic success
Work ethic
Education
Interviews
Result: According to the National Elections Pool (NEP) exit poll, President Bush garnered 44 percent of the Hispanic vote (Kenski and Kenski 2005). In 2000, Bush won 31 percent (Connelly 2004).
Source: brandchannel.com, Alycia de Mesa, August 6, 2007

Case Studies
NFL: Sought to increase interest among Hispanics
Placement : Telemundo game coverage, 2006 game in Mexico City
Promotions :
Spanish sportscasting by Alvaro Martin
24 Hispanic players on roster in 2006
Fantasy Football in Spanish (can choose)
Madden NFL video game being released in a bilingual edition
NFLatino.com launched in 2006 - includes areas geared toward beginners, Hispanic player diaries and interactive polls
Result : 2006 Mexico City game, first ever outside USA, drew league's LARGEST CROWD for any game.

Product : Subcompact, appeal to stylish creative spirit
Promotions :
MundoYaris.com - mix music, create ring tones online
Yaris Design Lab - make films, music and art
Language - CHOOSE
Made relevant - mobile content, music, language
Alternative career fair
Win an Ozomatli performance at home
TV, Print, Radio in English-language outlets (SíTV, Urban Latino Magazine)
Links to Mun2, Yahoo Film Festival, chat rooms, blogs, showroom
Result : From unknown to 30% share of entry-level subcompact segment in Hispanic market.
Case Studies Toyota Yaris - Target Nuevo Latino, "young Latino trendsetters leading the way in a new, multicultural world"

U.S. Hispanic Market - Food Preferences Summary
There really is no "Hispanic Market"
Hispanic Market is not a monolithic bloc
Like the general market, it is a collection of several sub-segments
Big differentiators are age, income, education, attitudes…
Most can be captured by "Acculturation" level
Then layer with additional knowledge: country of origin, tastes, consumer habits
Strategy is: Don't try to speak to the entire market with one message, in one language
When marketing, find the right media vehicles then develop the right message
Don't rely on rational appeals in marketing, an emotional appeal is likely to be more successful
Examine how your company internally reflects its commitment to the Hispanic market
Stick to it. There's no where to go but up.

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U.S. Hispanic Info & Insights, Michelle Villalobos, Speaker & Founder, Mivista, Inc.

by Michelle Villalobos on Apr 21, 2009

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U.S. Hispanic Info & Insights, Michelle Villalobos, Speaker & Founder, Mivista, Inc. — Presentation Transcript