The document discusses the transformation of multicultural marketing in the digital age, highlighting the growing influence and buying power of minority groups in the U.S., which make up over 35% of the population. It emphasizes that digital technology is reshaping these markets, with multicultural consumers being early adopters of online content and social media. The author argues that advertising agencies must integrate multicultural capabilities into their operations to remain competitive and take advantage of emerging opportunities.

1. Multicultural Marketing in the Digital Age:Integrating Multicultural Capabilities into your AgencyOctober 17, 2010

2. OverviewIntroduction3 multicultural market forces2 industry trendsThe big [multicultural] takeawayYour opportunity and challenge

3. introduction

4. a little about me

5. I’ve been working in advertising for the last 10 yearsMy background :EconomicsDigital technologyManagement consultingI kind of stumbled into this business…Jose

6. … and I’m one of the few people you’ll meet that runs a successful ad agency that never worked in advertising before.

7. my story explains a lot1998: I left a consulting career to start a Hispanic-focused dot comSince that day, I found myself in the middle of a transformation of the advertising industry

8. my agencyI started Sensis in 2000 2 days after shutting down my dot comSensis was started to address a small gap I saw in the ad business during my dot com daysDuring the last 10 years I’ve realized that “that little gap” was actually bigger and more transformative than anything I could have ever imagined in 2000

9. Sensis story

10. clients I’ve worked with…

11. agencies I’ve gotten to intimately know…

12. But everything about me and Sensis always comes back to a simple story:What happens when digital and multicultural get so big and transformative that they can no longer be nicely packaged as marketing specialties?

13. 3 market forces

14. The growth of U.S. multicultural market

15. let’s start with some definitionsMulticultural markets = various minority groupsHispanicAfrican AmericanAsian AmericanGLBTQOtherMiddle Eastern, European, South Asian, Native American, Disabled, …

16. Minorities makes up over 35% of the U.S. population

17. Multicultural AmericaSource: U.S. Census Bureau

18. Multicultural buying powerIn billions… with a “B”

19. How did we get here?Unprecedented immigration spurt of the 1980sSimilar to that of the early 20th centuryBoth have fundamentally remade the ethnic landscape of the U.S.83% of U.S. population growth during last decade came from minorities*** Source: Professor Jacob Vigdor, Duke University**Source: Brookings Institute

20. By 2048 the minority will be the majoritySource: U.S. Census Bureau

22. in 13 years 50% of Americans under 18 will be minoritiesSource: U.S. Census Bureau

23. Multicultural consumers are changing the general market

24. They are young

25. Young consumers that are:color blindshaping popular culture

26. They are shaping the mainstream:setting trends in food, fashion, and music

27. Salsa and ketchup

28. "leading with ethnic insights"

29. Multicultural consumers are themselves changing

30. A majority are now U.S. born

31. Multiracial Americans are now the fastest growing U.S. demographic group (5.3 million)

32. And digital is changing the game…

33. Multicultural and digitalearly adopters of new technologyleading consumers of online contenthighly receptive audiences for online advertising

34. Hispanics and Digital24.6 million consumers More than half (54%) of U.S. Hispanics use the InternetInternet access growing at a faster rate (13% since 2004) than among any other groupTotal purchasing power of $900 billionThe mobile device is an important point of Internet entry for HispanicsThey are heavy “data plan” users Over-index in advanced mobile usageHispanics spend more time on social media sites than their general market counterparts

35. African Americans and Digital30 million African-American onlineNearly 80% of all African-Americans are onlineThey are also among the early adopters of the mobile Internet

36. Asians and Digital14 million Asian Americans onlineInternet penetration nearing 80%market is complex and difficult to reach, due to the wide range of original nationalities, subcultures and languages. Internet provides the greatest opportunity for micro- and macro-targeting consumers in this market.

37. 2 industry trends

38. Ethnic ad agencies have fallen behind

39. Ethnic ad agencies are stuck in the analog era.

40. Digital is passing them byOnly 5% of all Hispanic media spend goes online

41. Digital is a divisionMost ethnic ad agencies still treat digital as a division“Digital Director”

42. Lack of sophisticationMost media spend goes to Top 3 “ethnic” digital platformsHispanic:African-American:Asian:GLBTQ:

43. Large general market agencies are building multicultural capabilities

44. In the last 12 months

45. Draft FCB has formed a multicultural unit

46. Home Depot has moved their Hispanic business to their general market agency, The Richards Group

47. Burger King moved their Hispanic advertising to CP+B

48. The big [multicultural] takeaway

49. My thesis

50. New definition of “full-service”

51. Multicultural marketing will become an integrated capability of full service agencies

52. A disruptive change

53. Rapid, chaotic change usually means an opportunity for businesses that can see and exploit it

54. New business models will emergeRemember Napster?The record industry tried to fight itApple finally figured out how to exploit itTower Records died iTunes was born

55. Future advertising will look different

56. Future advertising will look differentBut if you play close enough attention, you’ll see it’s already out there:

60. What this means for you

61. A huge opportunity

62. Adapt to this new model – embrace and integrate multicultural capabilities

63. Starting tomorrowLeverage what you already haveMake multicultural understanding and/or background part of your new hire evaluations

64. Starting next quarterStop outsourcing multicultural work to other agenciesMake digital your entry point

65. It’s all about digital

66. This is where ethnic ad shops are opening the door for you…

67. Digital Entry PointsSocialMulticultural over-indexing in social mediaMobileMulticultural early-adoption of mobile technologiesDigital mediaHispanics & African-Americans spend more time online than with any other medium

68. A bigger challenge

69. You need to quickly figure out and make multicultural an integral part of your agency

70. How quickly?Depends on what type of agency you are (and hope to be)National?Regional?Industry-focused?Discipline-focused?

71. THANK YOU!@jrvillawww.linkedin.com/in/josevillawww.thinkmulticultural.comjrvilla@sensisagency.com