SlideShare a Scribd company logo
1 of 10
An Untapped Segment: African-Americans
By: Jeremy Divinity
March 12th, 2015
Never before has reaching the African-American (AA) consumer been so critical for
marketers, the AA consumer market is a thriving, growing segment – and one that
spends well for what it wants and needs
Why target African-Americans(AA)?
Growth rate outpaces the total population by almost 30%
As their influence continues to grow, partner with them as
market leaders
Data shows they are incredibly brand loyal – much more than
the general market – and they place a high value on brands
Source: http://brandedcontent.adage.com/pdf/CABblackconsumer.pdf
The AA market represents tremendous growth opportunity that can make a
difference in your ability to not only win, but win big in a new diverse 21st century
Demographic Profile
• Increasing Purchase Power
• Highly influential and ad-receptive
• Collectively spend $156.9 billion annually on non-essentials
• Largely image-conscious and brand focused
Source: Experian
African-Americans are less likely to be influeced by friends for purchase
decisions and instead are more likely to be influenced by advertising
Brand Champions
For marketers of luxury goods, automobiles, entertainment
and household products, goods and services, this suggests
that the AA market is a growth segment worth investing in
AA consumers are brand champions who can influence the general market
Ranging from cars to packaged goods, the
AA propensity for buying branded, high-
ticket and high-margin items makes them
more loyal and profitable customers than
any other consumer segment
Money Talks
“We know that there is a significant business opportunity in reaching African-
American consumers, who comprise 13 percent of the population and have a
spending power of over $949 billion,” — NY Times: Media Decoder; A Site to Help Marketers Appeal to African
Americans, 2011
The spending power of the AA demographic will increase 25%
by 2015, increasing from $957 billion to $1.2 trillion – making
the demographic a priority audience for brands to reach
Source: Media Post: African-American Demos Express Ethnic Identity Differently, 2012
Millennial Influencers
The majority of African-Americans are under 30 years old (47%)
Millennial African-Americans continue to play a significant role in defining
emerging and pop culture, which is often adopted by the broader consumer
market
Millennial African-Americans are critical to
engage and connect with as their
disposable income grows in the next
decade
African-American Millennials are:
• Key Influencers
• Early Innovators
• Trend Setters
• Style Leaders
Industry Opportunities
“Black consumers are
more likely to plan to buy
or lease a car or truck
within the next six months
(27.4 percent) than all
adults 18 and older (16
percent).” —BIGinsights
With improving socio-economic status, the AA market represents a major
untapped customer acquisition opportunity
“Black consumers
spend an average of
$12.55 on fast food
each visit compared
with non-Black
consumers, who spend
an average of $11.47
per visit.” —BIGinsights
OUTFRONT Opportunities
With sizable numbers and favorable responses to advertising, engage and
reach this “always-on” audience with relevant messages using OUTFRONT
MEDIA
OUTFRONT Media offers outstanding value and a variety of formats that
can effectively reach the sizeable, increasingly mobile, and active AA
consumer market
AA consumers are more likely than the
average American to consider a range of
advertising types as purchase influencers,
while being less likely to rely on word-of-
mouth - Experian Marketing Services
(2013)
Key Areas of Coverage
Despite African-Americans’ sizable numbers and favorable response to
advertising, just 3% of major media ad spending is targeted to them,
according to a recent study from Nielsen (2014)
Prime Areas of Coverage:
Blue Collar– Harlem,
Washington Heights, Bronx,
Staten Island
Mass Affluent – Brooklyn,
Lower Manhattan, Queens
Aspirational Leaders– Long
Island, Upper Eastside
The New York Metro AA
population is the largest of
any city in the United States
New York City Media Coverage
Reach this ad receptive audience by partnering with OUTFRONT Media, as our
coverage will deliver a simple direct message that cannot be turned off or put
down unlike TV, radio, or print
Bus – Drive your message to potential customers with this highly visible medium that circulates in and
around AA communities, easily seen by both pedestrians and commuters
Posters – Reach highly mobile AA pedestrians as well as those in autos with this “mini-billboard”
Billboards – African American’s are more receptive than the general market to billboards. Raise
awareness, provide information, and broaden your influence using billboards placed in key areas
throughout the city
Walls – Provides large-impact message capability in and around AA neighborhoods
Subway – Up close and personal advertising format(s) that offer the ability to delivery tremendous
stopping power, eye catching ability, and providing info in a relevant and convenient manner
Urban Panels – Increase brand familiarity and awareness with eye level placements located on key
street intersections around NYC

More Related Content

What's hot

Media Trends in America. Past, Present and Future--Duane "DJ" Sprague
Media Trends in America. Past, Present and Future--Duane "DJ" SpragueMedia Trends in America. Past, Present and Future--Duane "DJ" Sprague
Media Trends in America. Past, Present and Future--Duane "DJ" SpragueDuane "DJ" Sprague
 
2010 consumer trend tips
2010 consumer trend tips2010 consumer trend tips
2010 consumer trend tipsElias Hamed
 
Harnessing the Power of Sports for the Greater Good
Harnessing the Power of Sports for the Greater GoodHarnessing the Power of Sports for the Greater Good
Harnessing the Power of Sports for the Greater GoodSports and Social Change
 
Rosetta Digital Marketing Competition
Rosetta Digital Marketing Competition Rosetta Digital Marketing Competition
Rosetta Digital Marketing Competition Kristin Barnes
 
Transform results by focusing on receptive audiences
Transform results by focusing on receptive audiences Transform results by focusing on receptive audiences
Transform results by focusing on receptive audiences TNS
 
SoLoMo - Social Local Mobile
SoLoMo - Social Local MobileSoLoMo - Social Local Mobile
SoLoMo - Social Local MobileAkash P
 
Paradoxes of Marketing to Connecting Consumers
Paradoxes of Marketing to Connecting ConsumersParadoxes of Marketing to Connecting Consumers
Paradoxes of Marketing to Connecting ConsumersIana Tria Meriveles
 
Pinpoint_Overview
Pinpoint_OverviewPinpoint_Overview
Pinpoint_OverviewDon Moore
 
Getting to know the giant of Africa: opportunities for brands in Nigeria
Getting to know the giant of Africa: opportunities for brands in NigeriaGetting to know the giant of Africa: opportunities for brands in Nigeria
Getting to know the giant of Africa: opportunities for brands in NigeriaTNS
 
Understand, reach and engage mobile travelers
Understand, reach and engage mobile travelersUnderstand, reach and engage mobile travelers
Understand, reach and engage mobile travelersLeadmill
 
Social Shopper Marketing – Walmarts Elevenmoms
Social Shopper Marketing – Walmarts ElevenmomsSocial Shopper Marketing – Walmarts Elevenmoms
Social Shopper Marketing – Walmarts ElevenmomsBSI
 
Jones Soda Media Planning project
Jones Soda Media Planning projectJones Soda Media Planning project
Jones Soda Media Planning projectAnnabella Pujalte
 
Making me.gov happen
Making me.gov happenMaking me.gov happen
Making me.gov happenTNS
 
Ad 2 San Diego Cause Marketing Night
Ad 2 San Diego Cause Marketing NightAd 2 San Diego Cause Marketing Night
Ad 2 San Diego Cause Marketing NightChristine Guardia
 

What's hot (20)

Media Trends in America. Past, Present and Future--Duane "DJ" Sprague
Media Trends in America. Past, Present and Future--Duane "DJ" SpragueMedia Trends in America. Past, Present and Future--Duane "DJ" Sprague
Media Trends in America. Past, Present and Future--Duane "DJ" Sprague
 
2010 consumer trend tips
2010 consumer trend tips2010 consumer trend tips
2010 consumer trend tips
 
Role of Advertising in the 2008 U.S. Presidential Campaigns
Role of Advertising in the 2008 U.S. Presidential CampaignsRole of Advertising in the 2008 U.S. Presidential Campaigns
Role of Advertising in the 2008 U.S. Presidential Campaigns
 
Harnessing the Power of Sports for the Greater Good
Harnessing the Power of Sports for the Greater GoodHarnessing the Power of Sports for the Greater Good
Harnessing the Power of Sports for the Greater Good
 
Rosetta Digital Marketing Competition
Rosetta Digital Marketing Competition Rosetta Digital Marketing Competition
Rosetta Digital Marketing Competition
 
Transform results by focusing on receptive audiences
Transform results by focusing on receptive audiences Transform results by focusing on receptive audiences
Transform results by focusing on receptive audiences
 
SoLoMo - Social Local Mobile
SoLoMo - Social Local MobileSoLoMo - Social Local Mobile
SoLoMo - Social Local Mobile
 
Paradoxes of Marketing to Connecting Consumers
Paradoxes of Marketing to Connecting ConsumersParadoxes of Marketing to Connecting Consumers
Paradoxes of Marketing to Connecting Consumers
 
Pinpoint_Overview
Pinpoint_OverviewPinpoint_Overview
Pinpoint_Overview
 
Getting to know the giant of Africa: opportunities for brands in Nigeria
Getting to know the giant of Africa: opportunities for brands in NigeriaGetting to know the giant of Africa: opportunities for brands in Nigeria
Getting to know the giant of Africa: opportunities for brands in Nigeria
 
insight-report2
insight-report2insight-report2
insight-report2
 
Understand, reach and engage mobile travelers
Understand, reach and engage mobile travelersUnderstand, reach and engage mobile travelers
Understand, reach and engage mobile travelers
 
Social Shopper Marketing – Walmarts Elevenmoms
Social Shopper Marketing – Walmarts ElevenmomsSocial Shopper Marketing – Walmarts Elevenmoms
Social Shopper Marketing – Walmarts Elevenmoms
 
Jones Soda Media Planning project
Jones Soda Media Planning projectJones Soda Media Planning project
Jones Soda Media Planning project
 
The Millennial Revolution
The Millennial RevolutionThe Millennial Revolution
The Millennial Revolution
 
Touchpoints v3 with inv.
Touchpoints v3 with inv.Touchpoints v3 with inv.
Touchpoints v3 with inv.
 
Fashion Marketing 4.0
Fashion Marketing 4.0Fashion Marketing 4.0
Fashion Marketing 4.0
 
WE Stories in Motion
WE Stories in MotionWE Stories in Motion
WE Stories in Motion
 
Making me.gov happen
Making me.gov happenMaking me.gov happen
Making me.gov happen
 
Ad 2 San Diego Cause Marketing Night
Ad 2 San Diego Cause Marketing NightAd 2 San Diego Cause Marketing Night
Ad 2 San Diego Cause Marketing Night
 

Similar to OFM_AA_Final

Marketing to the Heartland presentation
Marketing to the Heartland presentationMarketing to the Heartland presentation
Marketing to the Heartland presentationTatyana Levina
 
Mayors Conf Presnet Why Social Media Why Now
Mayors Conf Presnet   Why Social Media   Why NowMayors Conf Presnet   Why Social Media   Why Now
Mayors Conf Presnet Why Social Media Why NowEnsenada EDC
 
Mayors Conf Presnet Why Social Media Why Now
Mayors Conf Presnet   Why Social Media   Why NowMayors Conf Presnet   Why Social Media   Why Now
Mayors Conf Presnet Why Social Media Why NowEnsenada EDC
 
Nissan — NSAC 2012 Case Study
Nissan — NSAC 2012 Case StudyNissan — NSAC 2012 Case Study
Nissan — NSAC 2012 Case StudyCharlie Weston
 
Advertisement (word)
Advertisement (word)Advertisement (word)
Advertisement (word)Ben Fayza
 
161028_60 Second Marketer_Four Lessons on Olympics and Election
161028_60 Second Marketer_Four Lessons on Olympics and Election161028_60 Second Marketer_Four Lessons on Olympics and Election
161028_60 Second Marketer_Four Lessons on Olympics and ElectionHawthorne
 
Hispanic TODAY (PDF)
Hispanic TODAY (PDF)Hispanic TODAY (PDF)
Hispanic TODAY (PDF)Bill Marin
 
Career portfolio
Career portfolioCareer portfolio
Career portfolioTillerJ
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution Kekacobb
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution Kekacobb
 
Marketing Events To Millennials
Marketing Events To MillennialsMarketing Events To Millennials
Marketing Events To MillennialsUniverse
 
Krasilovsky Local Super Forum
Krasilovsky Local Super ForumKrasilovsky Local Super Forum
Krasilovsky Local Super ForumBOLO Conference
 
Cox Reps Generations Project
Cox Reps Generations ProjectCox Reps Generations Project
Cox Reps Generations ProjectJake McMahon
 
Kiel_Capstone Final Plan_Trunk Club Custom
Kiel_Capstone Final Plan_Trunk Club CustomKiel_Capstone Final Plan_Trunk Club Custom
Kiel_Capstone Final Plan_Trunk Club CustomCasie Kiel
 
FirstTimeBuyers_QUIRKS_LonnieMiller
FirstTimeBuyers_QUIRKS_LonnieMillerFirstTimeBuyers_QUIRKS_LonnieMiller
FirstTimeBuyers_QUIRKS_LonnieMillerLonnie Miller
 
Thinknow Defining Moments Report 2019 - Insights Into Culture and Authenticity
Thinknow Defining Moments Report 2019 - Insights Into Culture and AuthenticityThinknow Defining Moments Report 2019 - Insights Into Culture and Authenticity
Thinknow Defining Moments Report 2019 - Insights Into Culture and AuthenticityThinkNow
 

Similar to OFM_AA_Final (20)

Marketing to the Heartland presentation
Marketing to the Heartland presentationMarketing to the Heartland presentation
Marketing to the Heartland presentation
 
Mayors Conf Presnet Why Social Media Why Now
Mayors Conf Presnet   Why Social Media   Why NowMayors Conf Presnet   Why Social Media   Why Now
Mayors Conf Presnet Why Social Media Why Now
 
Mayors Conf Presnet Why Social Media Why Now
Mayors Conf Presnet   Why Social Media   Why NowMayors Conf Presnet   Why Social Media   Why Now
Mayors Conf Presnet Why Social Media Why Now
 
Nissan Research Report
Nissan Research ReportNissan Research Report
Nissan Research Report
 
Nielsen-african-consumer report
Nielsen-african-consumer reportNielsen-african-consumer report
Nielsen-african-consumer report
 
Nissan — NSAC 2012 Case Study
Nissan — NSAC 2012 Case StudyNissan — NSAC 2012 Case Study
Nissan — NSAC 2012 Case Study
 
Multicultural Marketing Strategy
Multicultural Marketing StrategyMulticultural Marketing Strategy
Multicultural Marketing Strategy
 
Advertisement (word)
Advertisement (word)Advertisement (word)
Advertisement (word)
 
161028_60 Second Marketer_Four Lessons on Olympics and Election
161028_60 Second Marketer_Four Lessons on Olympics and Election161028_60 Second Marketer_Four Lessons on Olympics and Election
161028_60 Second Marketer_Four Lessons on Olympics and Election
 
Hispanic TODAY (PDF)
Hispanic TODAY (PDF)Hispanic TODAY (PDF)
Hispanic TODAY (PDF)
 
Career portfolio
Career portfolioCareer portfolio
Career portfolio
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution
 
Marketing Events To Millennials
Marketing Events To MillennialsMarketing Events To Millennials
Marketing Events To Millennials
 
Krasilovsky Local Super Forum
Krasilovsky Local Super ForumKrasilovsky Local Super Forum
Krasilovsky Local Super Forum
 
Auto forum
Auto forumAuto forum
Auto forum
 
Cox Reps Generations Project
Cox Reps Generations ProjectCox Reps Generations Project
Cox Reps Generations Project
 
Kiel_Capstone Final Plan_Trunk Club Custom
Kiel_Capstone Final Plan_Trunk Club CustomKiel_Capstone Final Plan_Trunk Club Custom
Kiel_Capstone Final Plan_Trunk Club Custom
 
FirstTimeBuyers_QUIRKS_LonnieMiller
FirstTimeBuyers_QUIRKS_LonnieMillerFirstTimeBuyers_QUIRKS_LonnieMiller
FirstTimeBuyers_QUIRKS_LonnieMiller
 
Thinknow Defining Moments Report 2019 - Insights Into Culture and Authenticity
Thinknow Defining Moments Report 2019 - Insights Into Culture and AuthenticityThinknow Defining Moments Report 2019 - Insights Into Culture and Authenticity
Thinknow Defining Moments Report 2019 - Insights Into Culture and Authenticity
 

OFM_AA_Final

  • 1. An Untapped Segment: African-Americans By: Jeremy Divinity March 12th, 2015
  • 2. Never before has reaching the African-American (AA) consumer been so critical for marketers, the AA consumer market is a thriving, growing segment – and one that spends well for what it wants and needs Why target African-Americans(AA)? Growth rate outpaces the total population by almost 30% As their influence continues to grow, partner with them as market leaders Data shows they are incredibly brand loyal – much more than the general market – and they place a high value on brands Source: http://brandedcontent.adage.com/pdf/CABblackconsumer.pdf The AA market represents tremendous growth opportunity that can make a difference in your ability to not only win, but win big in a new diverse 21st century
  • 3. Demographic Profile • Increasing Purchase Power • Highly influential and ad-receptive • Collectively spend $156.9 billion annually on non-essentials • Largely image-conscious and brand focused Source: Experian African-Americans are less likely to be influeced by friends for purchase decisions and instead are more likely to be influenced by advertising
  • 4. Brand Champions For marketers of luxury goods, automobiles, entertainment and household products, goods and services, this suggests that the AA market is a growth segment worth investing in AA consumers are brand champions who can influence the general market Ranging from cars to packaged goods, the AA propensity for buying branded, high- ticket and high-margin items makes them more loyal and profitable customers than any other consumer segment
  • 5. Money Talks “We know that there is a significant business opportunity in reaching African- American consumers, who comprise 13 percent of the population and have a spending power of over $949 billion,” — NY Times: Media Decoder; A Site to Help Marketers Appeal to African Americans, 2011 The spending power of the AA demographic will increase 25% by 2015, increasing from $957 billion to $1.2 trillion – making the demographic a priority audience for brands to reach Source: Media Post: African-American Demos Express Ethnic Identity Differently, 2012
  • 6. Millennial Influencers The majority of African-Americans are under 30 years old (47%) Millennial African-Americans continue to play a significant role in defining emerging and pop culture, which is often adopted by the broader consumer market Millennial African-Americans are critical to engage and connect with as their disposable income grows in the next decade African-American Millennials are: • Key Influencers • Early Innovators • Trend Setters • Style Leaders
  • 7. Industry Opportunities “Black consumers are more likely to plan to buy or lease a car or truck within the next six months (27.4 percent) than all adults 18 and older (16 percent).” —BIGinsights With improving socio-economic status, the AA market represents a major untapped customer acquisition opportunity “Black consumers spend an average of $12.55 on fast food each visit compared with non-Black consumers, who spend an average of $11.47 per visit.” —BIGinsights
  • 8. OUTFRONT Opportunities With sizable numbers and favorable responses to advertising, engage and reach this “always-on” audience with relevant messages using OUTFRONT MEDIA OUTFRONT Media offers outstanding value and a variety of formats that can effectively reach the sizeable, increasingly mobile, and active AA consumer market AA consumers are more likely than the average American to consider a range of advertising types as purchase influencers, while being less likely to rely on word-of- mouth - Experian Marketing Services (2013)
  • 9. Key Areas of Coverage Despite African-Americans’ sizable numbers and favorable response to advertising, just 3% of major media ad spending is targeted to them, according to a recent study from Nielsen (2014) Prime Areas of Coverage: Blue Collar– Harlem, Washington Heights, Bronx, Staten Island Mass Affluent – Brooklyn, Lower Manhattan, Queens Aspirational Leaders– Long Island, Upper Eastside The New York Metro AA population is the largest of any city in the United States
  • 10. New York City Media Coverage Reach this ad receptive audience by partnering with OUTFRONT Media, as our coverage will deliver a simple direct message that cannot be turned off or put down unlike TV, radio, or print Bus – Drive your message to potential customers with this highly visible medium that circulates in and around AA communities, easily seen by both pedestrians and commuters Posters – Reach highly mobile AA pedestrians as well as those in autos with this “mini-billboard” Billboards – African American’s are more receptive than the general market to billboards. Raise awareness, provide information, and broaden your influence using billboards placed in key areas throughout the city Walls – Provides large-impact message capability in and around AA neighborhoods Subway – Up close and personal advertising format(s) that offer the ability to delivery tremendous stopping power, eye catching ability, and providing info in a relevant and convenient manner Urban Panels – Increase brand familiarity and awareness with eye level placements located on key street intersections around NYC