Most advertising professionals and marketers understand the historic cultural and economic shift represented by the burgeoning U.S. multicultural population. What most ad pros don't realize is how quickly this market is adopting digital technology, specifically social and mobile, and how this represents the biggest shift in the multicultural marketing landscape since the launch of Spanish-language TV. With more and more big general market ad shops quickly redefining "full service" to also include the Hispanic, African American, Asian and GLBTQ markets, find out how the multicultural digital media shift is creating a unique opportunity for all agencies to get into the multicultural game.

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

2. Overview Introduction 3 multicultural market forces 2 industry trends The big [multicultural] takeaway Your opportunity and challenge

3. introduction

4. a little about me

5. I’ve been working in advertising for the last 10 years My background : Economics Digital technology Management consulting I 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 lot 1998: I left a consulting career to start a Hispanic-focused dot com Since that day, I found myself in the middle of a transformation of the advertising industry

8. my agency I started Sensis in 2000 2 days after shutting down my dot com Sensis was started to address a small gap I saw in the ad business during my dot com days During 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 definitions Multicultural markets = various minority groups Hispanic African American Asian American GLBTQ Other Middle Eastern, European, South Asian, Native American, Disabled, …

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

17. Multicultural America Source: U.S. Census Bureau

18. Multicultural buying power In billions… with a “B”

19. How did we get here? Unprecedented immigration spurt of the 1980s Similar to that of the early 20th century Both 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 majority Source: U.S. Census Bureau

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

23. Multicultural consumers are changing the general market

24. They are young

25. Young consumers that are: color blind shaping 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 digital early adopters of new technology leading consumers of online content highly receptive audiences for online advertising

34. Hispanics and Digital 24.6 million consumers More than half (54%) of U.S. Hispanics use the Internet Internet access growing at a faster rate (13% since 2004) than among any other group Total purchasing power of $900 billion The mobile device is an important point of Internet entry for Hispanics They are heavy “data plan” users Over-index in advanced mobile usage Hispanics spend more time on social media sites than their general market counterparts

35. African Americans and Digital 30 million African-American online Nearly 80% of all African-Americans are online They are also among the early adopters of the mobile Internet

36. Asians and Digital 14 million Asian Americans online Internet 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 by Only 5% of all Hispanic media spend goes online

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

42. Lack of sophistication Most media spend goes to Top 3 “ethnic” digital platforms Hispanic: 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 emerge Remember Napster? The record industry tried to fight it Apple finally figured out how to exploit it Tower Records died iTunes was born

55. Future advertising will look different

56. Future advertising will look different But 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 tomorrow Leverage what you already have Make multicultural understanding and/or background part of your new hire evaluations

64. Starting next quarter Stop outsourcing multicultural work to other agencies Make 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 Points Social Multicultural over-indexing in social media Mobile Multicultural early-adoption of mobile technologies Digital media Hispanics & 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! @jrvilla www.linkedin.com/in/josevilla www.thinkmulticultural.com jrvilla@sensisagency.com