Hispanic Marketing Polvora Advertising

HEAR OF
THE VOICE

50+
MILLION CONSUMERS

OUTLINE

• Demographics
• Who is the Hispanic Consumer
• Reaching the Hispanic Consumer
• Behaviors
• Trends
• Finances

© 2011 Pólvora Advertising. All Rights Reserved. 2

DEMOGRAPHICS


DEMOGRAPHICS

Question:

How many Hispanics
reside in the US, including
the undocumented?


DEMOGRAPHICS

Answer:
Today’s True
US Hispanic Population
Is Estimated At Over

50.6MM Census

51,130,679
Projected for 4/1/11

2010 U.S. Census / Undocumented estimate: 2010 PEW Research Center


DEMOGRAPHICS
Hispanics are fueling population growth now and for the
decades to come

75%
69% of growth
61% of growth
52% of growth
of growth

U.S. Census 2008 Projections


LATINOS DEMOGRAPHICS…

Population
US Hisp. Pop. – Est.: 50.6 MM
% of Total Pop.: 16.3%

= 1.6 X Canada’s total pop.

= or the sum of Portugal, Holland, Denmark, Sweden,
Norway and Ireland

= #2 Latino Population in World only behind Mexico

National Composition
Mexican………………. 59%
Puerto Rican……………10%
Cuban…………………. 3%
Dominican…………….. 3%
Other…………………… 25%
Source: 2010 US Census; Pew Hispanic Center, CIA World Factbook & Claritas 2010 Release/ U.S. Census American Fact Finder

DEMOGRAPHICS

More 2010 US Census Data

May: Demographic Profiles
August: Age, Race and Ethnicity
breakdowns


Only 10 Years Ago
We Spoke of Latinos
Entering Mainstream America

TODAY, LATINOS ARE
INFLUENCING AMERICA


Jimmy

Astronaut
Joe Acabá,
SC Justice
Sotomayor
Luis Aguilar,
SEC Commissioner

Mark Sanchez,
Athlete
George

Javier
Bardem

Sofia Vergara,
Actress
Robert Rodriguez,

Shakira
Director
JLo

America Ferrera

Penelope Cruz
Actress
Zoe Saldana,

Enrique Iglesias

David Archuleta,
Singer
Ricky
A-Rod

© 2011 Pólvora Advertising. All Rights Reserved.

Carolina
Herrera
Dara Torres,
Olympiad / Author
Oscar

Junot Diaz
10

HISPANIC GROWTH

Question:

Do You Know What Are the
Most Popular Surnames in U.S.?


HISPANIC GROWTH

Answer:
Top 10 most common surnames in the U.S. Based on 2000 Census

1. Smith
2. Johnson
3. Williams
4. Brown
5. Jones
6. Miller
7. Davis
8. García
9. Rodríguez
10. Wilson

We believe that the by the 2010 Census Release
“We’ll be keeping up with the Joneses”

Source: 2000 US Census

WHO IS OUR
HISPANIC CONSUMER?


WHO ARE THEY?

They Are:

• The Biggest
• Fastest-Growing
• Most-Concentrated
• Efficiently-Reached

Consumer Segment of All!


WHO ARE THEY?

Hispanics Have Larger Households than
Non-Hispanics: 3.6 to 2.6

More Products or Services Needed in Each Home

Source: U.S. Diversity Market Report, Synovate 2006


WHO ARE THEY?

They Will Buy From Us Longer

Average Age
28 vs. 33

Hispanics Non-Hispanics

Source: U.S. Diversity Market Report, Synovate 2006


REACHING THE
HISPANIC CONSUMER


In Order To Effectively Market
To Hispanics,

We First Need To Understand
What They Bring From Their Homelands:

Language & Culture


LANGUAGE


REACHING THE HISPANIC CONSUMER

Language is not only a vehicle of communication,
It’s one of the biggest
Identifiers of Latino Culture


REACHING THE HISPANIC CONSUMER

For Years We Have Been Warned About the “Tipping Point”; yet,
since 1996 we have seen a large increase of bilinguals, and only
moderate growth of English-dominant Hispanics

LANGUAGE MOST COMFORTABLE SPEAKING
Bilinguals Growth
Hispanic Adults 1994 to 2010
Index – 300
100 Over English Dom.
1996- YTD
80
PERCENT

Spanish
60
Bilingual
40
English
20
0
94 96 98 00 02 04 06 08 10
YEAR
Source: Synovate 2010 / Hispanic Fact Pack

…supporting that Language is embedded into the culture
and that it’s much more than just a vehicle of communication

HOW BEST TO SPEAK TO HISPANICS



Question:
Does my English-Language (General Market)
Advertising Message Reach Latinos?

Answer:
Reaches Some,

But Persuades Few…



82% Of Hispanics Prefer To 31% Of Hispanics Prefer To
Speak Spanish At Home In Total Speak Spanish At Work
(56% Spanish - 26% bilingual)

53% Of Hispanics Prefer To
Speak Spanish In Social Situations

Source: Synovate US


“When I hear a company advertise in Spanish,
it makes me feel like they respect my heritage
and want my business”
• 53% Spanish dominant
• 43% Bilinguals
• 29% English dominant

Latinos Agree with this statement

Source: Simmons NCS/F09


Broadcast TV Online

Advertising Recall: Aided Brand Awareness:
Commercials in Spanish proved to be Hispanic 2.7
40% more effective at increasing awareness Index 129
Market Norm 2.1
levels than commercials in English.
Online Ad Awareness:
Persuasiveness: Hispanic 4.7
Commercials in Spanish proved to be Index 109
Market Norm 4.3
5 times more persuasive than commercials
in English.
Brand Favorability:
Main Message Recall: Hispanic 2.1 Index 162
Market Norm 1.3
In terms of message comprehension,
commercials in Spanish are 56% more
effective than commercials in English. Purchase Intent:
Hispanic 2.0
Index 182
Market Norm 1.1

Source: 2000 Roslow Study Source: Dynamic Logic’s Market Norms Q4/09


Spanish Language Advertising is More Effective:

• In Achieving Message RECALL
• In PERSUATION

• In Creating AWARENESS

• In BRAND FAVORABILITY

• In PURCHASE INTENT

In short, running English-language advertising to reach
Hispanic consumers is:

- Inefficient and Ineffective
Compared to targeting them in Spanish


CULTURE


UNDERSTANDING THE CULTURE

“…research shows Hispanics like to be
acknowledged, but don't like to be identified
solely by language.”
-- Saskia Sorrosa
Sr. Director
U.S. Hispanic Marketing



To Enter U.S. Territory
Involves Crossing An
Attitudinal Border

Latin Countries United States
Latinos Latin-Americans

Family Group / Belong Independent / Outsiders



Differences between Hispanics and Anglos

Hispanics Anglos

How do we see As part of a family or group Within ourselves, define
ourselves? as individuals

Whom we rely on Family, friends, community Ourselves & Institutions
for help? (Hispanic "social security")

What we value in Stress differences, Minimize differences,
people? show respect everybody is equal

What we stress in Respect, cooperation, Symmetrical, interpersonal
relationships? formality informality, competition

Source: Market Connection Group


Differences between Hispanics and Anglos

Hispanics Anglos

Children? Dependence, obedience Independence, egalitarian

Defined roles, hierarchy; Role diffusion, democracy,
Family? old men know more than youth has a say
young men

Sex Roles in Male dominance, Sexual equality
Relationships machismo

Source: Market Connection Group

ASSIMILATION vs. ACCULTURATION



For Years, Sociologists Claimed Latino Immigrants
Would Assimilate Into The U.S. Culture.

“Letting go of old ways in favor of new ones.”


Example of Assimilation:

We Now Know
That
Hispanics,
Do Not
Assimilate


We Acculturate
Picking The Best
From Both Worlds…

Their old ways from home
+
new ones from U.S.



Latinos (A18+) agree that: Example of
Acculturation:
“They try to keep up with Latin
music, news or sports from
Hispanic countries.”

• Spanish dominant – 73%
• Bilinguals – 65%
• English dominant – 37%

Source: Simmons F09

So As We’ve Seen:

When communicating with Latinos,
it takes more than a translation;
it’s about reaching them culturally…
and that includes leveraging language.

"Marketers need to find a voice that is special to her (Latina shopper).
She wants to be spoken to in a way that has cultural relevance, not just
general market messages translated into Spanish."

-- Jacqueline Hernandez
COO

Source: Marketing Daily - addressing the “What Latinas Want” study

BEHAVIORS


LATINO BEHAVIORS

IT’S ABOUT LIFESTYLE IN THE U.S.

We are now trendsetters
We have the best of both worlds
We are different from others,
and we like it…

"Instead of simply supplementing our general-market plan with
ethnic perspectives, we strive to develop marketing initiatives and
communications that are relevant, meaningful and engaging to
all ethnic groups as well as the general market."

-- Neil Golden
CMO


LATINO BEHAVIORS
What Drives Us:
For Hispanics Shopping is an Family Experience
Hispanic Non-Hisp. Index
1. “Lower Prices”
Prefer shopping alone 30 42 71 2. “Better Service”
Prefer shopping with family 44 29 152 3. “Selection”
Prefer shopping with children 44 26 169
Prefer shopping with friends 27 22 123 Source: Meyer Research Center
Source: Simmons

44% of Hispanics Say Their Kids Input “When it comes to brand
On Brand Chosen!! loyalty… the key learning … is
(220 Index over Non-Hispanics) understanding the importance
of building a brand relationship
during the initial stages of
acculturation and maintaining
Key Shopping Factors: this connection as Hispanics’
• Every day low pricing 4.5 integration to American life
• Good customer service 4.4 increases,”
• Good products always in stock 4.4
• Store is well organize/easy to shop 4.3 -- Tim Kregor, president,
• Broad product assortment 4.2 Nielsen Consumer Panel Services
• Special deal or promotions 4.1
Source: Simmons

80 percent of Latinas are the
More and more Hispanic women are beginning to work, primary decision makers for the
and there may be dual-income households. And so, family,or make decisions in concert
like the non-Hispanic consumer, Hispanics are with their spouses.
beginning now to spend more on frozen foods. Source: Telemundo & MHV – “What Latina’s Want”
Source: Latinum Network

TRENDS


LATINO BEHAVIORS: TRENDS
NEW MEDIA
ONLINE MOBILE

• 81% of Hispanics said, • 87% of Hispanics use Cell phones
“When I need information the first place I (109 index over non-Hispanic Whites)
look is the internet.”
• 53% of Hispanics use mobile phone,
• 48% of Hispanics have a social network Texting – 113 Index over Non-Hisp.
profile (155 index over non-Hispanic) Email – 100 Index with Non-Hisp.

• 29% said, • 75% of English-speaking Latinos
“The internet has become a primary SLEEP WITH THEIR PHONE
source of Entertainment for me
personally.” 121 index over NHW

• TOP 5 ONLINE ACTIVITIES
1. Email 72%
2. News / Weather 50%
3. Banking 46%
4. Music downloads 32%
5. Travel information 29%

Source: Simmons F09 A18+ Source: Pew Research Center – American Life Project 5/2010

LATINO BEHAVIORS: TRENDS
NEW MEDIA

And because of the increased incidence of these two new
media vehicles, we can now
better engage, entertain, measure and create
Loyal Hispanic Consumers

Using Three Screen Marketing Tactics


FINANCES


HISPANICS & FINANCES

Question:

Do you know what country has the #1
Latino Economy in the World? Its Value?

Mexico
Spain
Colombia
US


HISPANICS & FINANCES

Answer:

Mexico US HISPANIC MARKET
Spain
Colombia $1 Trillion!!!!
US

Source: Simmons F09 A18+

¡MUCHAS

GRACIAS!
For more information on how to best reach this
lucrative market, contact:

Miami Boston
(305) 477-7991 (617) 398-0991

Hispanic Marketing Polvora Advertising

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