Marketing to the Multicultural Consumer

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At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled Marketing to the Multicultural Consumer. Gonzalo Perez, Owner and Principal of Motivo Insights, LLC & Betsy Frank, Chief Research & Insights Officer of Time Inc. presented. Concepts of cultural relevancy and identity were discussed. One of the findings included how the Latino/Hispanic population, identify more with culture than language.

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Marketing to the Multicultural Consumer

  1. 1. Marketing to theMulticultural ConsumerNew Insights on Culture,Context and BrandsGonzalo Perez Betsy FrankOwner and Principal Chief Research &Motivo Insights, LLC Insights Officer Time Inc.
  2. 2. Background: That Was Then…• 2008: “The Multicultural Media Consumer: What Divides, What Transcends, and What Does it Mean to Us?”
  3. 3. Background: This Is Now• 2008: “The Multicultural Media Consumer: What Divides, What Transcends, and What Does it Mean to Us?”• Current recovery in US economy, including the advertising economy• 2010 Census will validate the size and growing influence of multicultural consumers
  4. 4. Today’s Agenda• Background• Key Findings• Methodology• Behind the Key Findings• Conclusions and Implications
  5. 5. The Three Big Insights #1 – In-culture advertising works to increase the relevance and effectiveness of the messaging
  6. 6. The Three Big Insights #1 – In-culture advertising works to increase the relevance and effectiveness of the messaging #2 – Multicultural Consumers don’t just want “reflection;” they want to go “beyond the mirror.”
  7. 7. The Three Big Insights #1 – In-culture advertising works to increase the relevance and effectiveness of the messaging #2 – Multicultural Consumers don’t just want “reflection;” they want to go “beyond the mirror.” #3 – The mainstream media may define Latinos based on language, but Latinos define themselves based on culture
  8. 8. Cultural Identity is Contextual• Multicultural consumers are defying traditional marketing definitions• Instead, they are exhibiting a contextual cultural identity that allows them to express different aspects of their lifestyle, culture and interests depending on where they are and who they are with• Marketers must recognize that they need to evolve their approach to account for this dynamic and fluid identity
  9. 9. The Framework for Learning• Five categories were selected: – Beauty – Household Products – Fashion/Retail – Auto – Insurance• One representative advertiser selected for each category• Criteria for selection: Used both in-culture (AA and Latino) and General Market executions, across three media platforms: TV, magazines, web• The challenge of finding marketers who fit those criteria was a key insight in itself!• Our research partners: IPSOS OTX and Motivo Insights
  10. 10. Methodology Qualitative: 3 Key Insights ToolsDiscovery Sessions Blog Assignment Video Diaries• Conducted in NYC, • Moderated blog session • Used flip cams to Chicago, Houston and • Exposed to GM and document effective or Los Angeles in-culture creative ineffective in-culture ads• African American, • Live interactive dialogue • Interviewed themselves Hispanic and Non-Hisp with their opinions of ads White • 12 total participants • 12 total participants• 18 total groups
  11. 11. Methodology Quantitative: Immersive and CustomizedWho What How• N=2,850 Media Users Media Reel Ad Campaign • Online & In-person – Non-Hisp White: n=500 Evaluation intercept to web – AA=850 • GM Ads in GM or • Surveys offered in – Hispanic*: n=1500 in-culture media English and Spanish • Acculturated: n=500 • In-culture ads in GM for Hispanics • Bicultural: n=500 or in-culture media • Unacculturated: n=500 – 40 different executions• National Census – 800 media locations Campaign PRINT ADS representation by embedded in consumer- age/gender & region controlled virtual magazines Campaign TV ADS embedded in TV program segment Campaign WEB ADS embedded in mirrored web sites *Acculturation based on language usage & media consumption levels to English and Spanish media
  12. 12. #1 In-culture Advertising WorksWhat We Learned• Multicultural consumers don’t mind, and, in fact, expect to be “targeted”, since it implies recognition of their uniqueness and economic power• In-culture advertising drives purchase consideration and message relevance• While general criteria for a “good ad” are comparable across groups, multicultural consumers also need personal relevance to make ads more appealing to them
  13. 13. #1 In-culture Advertising WorksIn-culture content enhances the relevance of in-culture creativemessaging and creates an environment in which multiculturalconsumers expect and look for targeted messaging 49%ABCMore interested in 36% A 38% Aproduct after exposure toin-culture advertising in 24%in-culture content(Top 2 box agreement) NHWhite AA/Black Hispanic Hispanic English Spanish A B C DBase: n=850 African American, n=1500 Hispanic & n=500 Non-Hispanic White Media Users(Q6_s1) How does the advertising campaign affect your interest in ?
  14. 14. #1 In-culture Advertising Works While all groups agree that advertising needs to “be good” to appeal to them, Hispanics and AA also find importance in cultural elements that Non-Hispanic Whites do not Someone my own age Top seven things that make Mix of different ethnicities/racesadvertising appealing NH White, Elements identified with my culture AA & Hispanic (i.e. visuals, music) Someone of my own gender Be funny AC 51% Be informative A 43% Be of good, high quality C 32% A 30% 30% 27%Show benefits, features of product 24% AC 21% 23% 20% 15% 15% Be exciting Be colorful A B C Include music NonHisp White AA/Black Hispanic Base: n=850 African American, n=1500 Hispanic & n=500 Non-Hispanic White Media Users (Q11) what types of different things advertisers can include in their advertising messages that will make them more appealing to you
  15. 15. #1 In-culture Advertising Works In-culture ads in GM media have a role to play and can further enhance a marketer’s message with consumers…Among AA/Black When I see an ad aimed at African American/Black on/in non-African America/Black TV, magazines, radio or websites it stands out and makes me feel that the company advertising values me as a consumerAmong Hispanic/Latinos When I see an ad aimed at Hispanic/Latino on/in non-Hispanic/Latino TV, magazines, radio or websites it stands out and makes me feel that the company advertising values me as a consumer Base: n=850 African American & n=1500 Hispanic Media Users (Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  16. 16. #2 Multicultural Consumers Want to Go“Beyond the Mirror”What We Learned• It’s more than just visually “representing” them in advertising; marketers need to tell genuine, respectful and aspirational stories• Both Hispanic and African Americans like to be targeted as ethnic consumers …. as long as it is done respectfully and for a product they will use “I do like when they “I think it is important to be target us because it shows recognized as a group that needs to they value our dollar just as be marketed to, so yes I do like it.” much as another person of a different race.” Paul, African American Lauren, Hispanic
  17. 17. #2 Multicultural Consumers Want to Go“Beyond the Mirror”Multicultural consumers want ads to reflect notjust what, but who they are… African American Hispanic Ad is more engaging when I see myself or elements of my culture in reflected the ad 50% 49% When I see myself or elements of my culture reflected in an ad, I am more likely to consider purchasing the product 50% 53%Base: n=850 African American & n=1500 Hispanic Media Users(Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  18. 18. Base: n=850 African American & n=1500 Hispanic Media Users(Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  19. 19. #2 Multicultural Consumers Want to Go“Beyond the Mirror”The multicultural consumer’s definition of “cultural cues”includes family-focused elements that carry more weightthan for the Non-Hispanic White consumerAppeal of Multiple Generations Depicted Appeal of Family Depicted in Advertising in Advertising NonHisp White (A) AA/Black (B) Hispanic (C) A A A A 51% 53% 50% 51% 33% 34% When I see and ad that show multiple family When I see an ad that shows a family and children, generations I am more likely to pay attention I am more likely to pay attention to the ad to the ad and consider using/buying the product. and consider using/buying that product.Base: n=850 African American, n=1500 Hispanic & n=500 Non-Hispanic White Media Users(Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  20. 20. #2 Multicultural Consumers Want to Go“Beyond the Mirror”Among AA/Black Ads targeted to AA/Black consumers should only have AA/Blacks in them Ads that reflect different ethnicities are more likely to connect with AA/Black consumersAmong Hispanic/Latinos Ads targeted to Hispanic/Latino consumers should only have Hispanics/Latino in them Ads that reflect different ethnicities are more likely to connect with Hispanic/Latino consumers(Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  21. 21. #3 Latinos Define Themselves Based onCulture, Not Language• Hispanics embrace their bicultural reality as an advantage – As a driving force in the “New Mainstream,” Hispanics across acculturation levels are increasingly likely to define themselves as bicultural, and being bicultural is a source of pride• It isn’t just about language. Although language does offer an immediate “cue” that something is “for me,” values, traditions, collectivism, and spirituality are just as important
  22. 22. #3 Latinos Define Themselves Based onCulture, Not LanguageAcculturated and bicultural Hispanic’s language preferencedoes not drive their cultural self-identification American First/Only Equally Hispanic & American Hispanic First/Only English Dominant 39% 38% 23% English/Spanish Equally 9% 53% 39% Spanish Dominant 6% 23% 72%Base: n=1500 Hispanic Media Users(DEM8) What language do you personally prefer to speak?(DEM9) Which of the following best describes you?
  23. 23. #3 Latinos Define Themselves Based onCulture, Not Language Ads targeted to Hispanic/Latino consumers should only be in Spanish Unacculturated (C) 43% Bicultural AB (B) 32% Acculturated A (A)13%(Q12_s1) How strongly do you agree with each of the following statements as they relate to advertising?
  24. 24. Cultural Relevance HierarchyThere are key elements marketers need to keep in mind inorder to connect with Hispanic and African Americanconsumers, with product relevance being the most basicpoint of engagementProduct relevance and usageContext, Cultural Representation (Imagery) Deeper Level of EngagementCultural Representation (Values)Cultural Representation (Values) + Lifestyle
  25. 25. Conclusions and Implications• In-culture ads are no longer “nice to haves”• Cultural identity is contextual• In-culture ads do not alienate Non-Hispanic Whites• Using in-culture ads in mainstream content signals acceptance broader than their own communities
  26. 26. Conclusions and Implications (cont’d)• Use brands and advertising to dispel negative perceptions, rather than reinforce them• Social Media is a greater imperative for multicultural efforts• Reflect the “new mainstream” and use diverse, not monochromatic, talent
  27. 27. Thank You!Questions?

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