This document discusses the growing Hispanic population and purchasing power in the United States. It notes that the Hispanic population is growing rapidly, increasing 74% between 1990 and 2002, and will continue growing significantly in the coming years. Their buying power has also grown substantially, increasing 160% between 1990 and 2002 to $580 billion. The document recommends that businesses market directly to Hispanic consumers, as one generic advertisement risks missing this important consumer segment. It provides data on spending patterns and the demographic characteristics of Hispanic populations in major US cities to help businesses better understand and reach Hispanic consumers.

1. Hispanic Purchasing PowerHispanic Purchasing Power
Marketing to HispanicsMarketing to Hispanics
andand
Growing Your BusinessGrowing Your Business
Dennis Caicedo / Director Sales Research & Development
Spanish Broadcasting System

2. IntroductionIntroduction
* Source: Terry College of Business / The Mulitcultural Economy ( 2002 )
The immense buying power of 39 million Hispanic consumers
is energizing the U.S. consumer market as never before. This
major group, which represents nearly 14% of the country’s population,
has a disposable income of an estimated $580 billion for 2002.
- “ Over a seventeen-year period, 1990-2007, the nation’s Hispanic
buying power will grow at a compound annual rate of 8.7 %.
The comparable rate of growth for non-Hispanics is 4.8 %. In sheer
dollar power, Hispanic economic clout will rise from 223 Billion
in 1990 to 926 Billion in 2007…a 315 % increase over 1990
”
The nation’s fastest growing minority group is increasingly
becoming the focus of corporations eager to develop
new markets for their products and services.

3. Reason and LogicReason and Logic
 Estimates of Hispanic buying power in U.S metro
areas and counties suggest that marketing
to Hispanic consumers will contribute to the
bottom line of most companies or
enterprises.
 Already, the Hispanic market is attracting greater
attention from businesses large and small.
 The explosion of Hispanic media— whether radio,
television, magazines or on the Internet—
reflects the increasing number of
advertising dollars targeted towards U.S.
Hispanics.

4. The OpportunityThe Opportunity
 The buying power estimates presented here
suggest that one ‘general advertisement’
or generic product geared for all
consumers increasingly misses many
potentially profitable market opportunities.
 As the consumer market becomes more diverse,
advertising,
products, and media must be tailored to
each market segment.

5. The American PieThe American Pie
U.S. Population byU.S. Population by
Race/EthnicityRace/Ethnicity
Source: U.S. Census Bureau, 2000
La Agencia de Orcí & Asociados

6. US Hispanic Population Soars 74%US Hispanic Population Soars 74%
Outpacing Rest ofOutpacing Rest of
PopulationPopulation
Hispanics Asians
22.422.4
38.938.9
30
35.8
+
74%
+
19%
287.9
248.7
Total
+
16%
7.3
11.5
+
58%
African
Americans
1990
2002 1990
2002
( Millions )( Millions )
•Source: 1) US Census 2000
2) Terry College of Business / Buying Power at the Beginning of a New Century ( 2000 – 2001 )

7. In Just -5- Years the US HispanicIn Just -5- Years the US Hispanic
Population Will Grow AnotherPopulation Will Grow Another 29%29%
Hispanics
38.938.9
50.250.2
248.9
255.9+
29%
+2.8%
Total
( Millions )( Millions )
Non-Hispanic
1990
2000
306.2
287.9
+6.3%
2002
2007
2002
2007
2002
2007
Source: Selig Center for Economic Growth, The University of Georgia 2002 - Buying Power)
1990
2007

8. Hispanics Asians
$7.6 Trillion
$4.3
Total
+
7
7%
Billion$
African
Americans
Hispanic Buying Power GrewHispanic Buying Power Grew
160% Over the Past 12 years160% Over the Past 12 years
Non-
Hispanic
Whites
$6.3 Trillion+
62
%
$223$223
$580$580
+
160%
$646
Billion
+
110
%
$118
+
15
1%
Source: Selig Center for Economic Growth, The University of Georgia 2002 - Buying Power)
$296
Billion
1990
2002
1990
2002
$3.9
$317

9. The Impact on Your BusinessThe Impact on Your Business
Hispanic vs. Non-Hispanic PopulationHispanic vs. Non-Hispanic Population
and Buying Power Trends 1990 – 2002and Buying Power Trends 1990 – 2002
PopulationPopulation Buying PowerBuying Power
(Millions) (Billions)
1990 2002 % Chg. 1990 2002
% Chg.
Hispanic 22,600 38,900 74% $ 223 $ 580
160%
Non-
Hispanic 226,300 248,900 10.0% $ 4,054 $ 7,052 74%
U.S.
Total 248,700 287,800 15.6% $ 4,277 $ 7,632
78%
•Source: 1) US Census 2000
2) Terry College of Business / Buying Power at the Beginning of a New Century ( 2000 – 2001 )

10. Hispanics Asians
$9.9
Trillion
Total
+
30
%
African
Americans
By 2007 Hispanic Buying PowerBy 2007 Hispanic Buying Power
Is Expected To Grow AnotherIs Expected To Grow Another 60%60%
Non-Hispanic
Whites
$7.9
Trillion
+
25%
$580
$926
+
60
% $646
Billion
$853
Billion
+
3
2
%
$296
Billion
$455
Billion
+
54%
Source: Selig Center for Economic Growth, The University of Georgia 2002 - Buying Power)
…and outpace that of All Non-Hispanics
$7.6Trillion
$6.3Trillion
2002
2007
Billion$

11.  In order, the 10 most Hispanic populated states are:
California, Texas, New York, Florida, Illinois, New Jersey,
New Mexico, Colorado, Washington and Georgia.
 In order, the 10 states…with the greatest Hispanic
buying power:
California, Texas, Florida, New York, Illinois, New Jersey
Arizona, Colorado, Georgia and New Mexico.
 The five most Hispanic populated states account for
67% of Hispanic buying power in the U.S.
Where to LocateWhere to Locate
Your Share?Your Share?
* Source: Terry College of Business / Buying Power at the Beginning of a New Century ( 2000 – 2001 )

12. Hispanics are Going NationalHispanics are Going National
Percentage Growth per StatePercentage Growth per State
Source: U.S. Census Bureau, 2000

13. Cities with Highest PercentCities with Highest Percent
Composition of HispanicsComposition of Hispanics

14. TOP 5 14,863,300TOP 5 14,863,300
( 42% of U.S. Hispanic Pop. )( 42% of U.S. Hispanic Pop. )
Majority of U.S. Hispanics ResideMajority of U.S. Hispanics Reside
in the Top 10 Hispanic Markets…in the Top 10 Hispanic Markets…
Market Hispanic Pop.
1) Los Angeles 6,599,500
2) New York 3,852,200
3) Miami 1,564,400
4) Chicago 1,498,600
5) Houston 1,348,600
Market Hispanic Pop.
6) San Fran 1,384,700
7) Dallas 1,120,350
8) S. Antonio 818,000
9) Phoenix 817,000
10) McAllen-Brownsville
786,700
TOP 10 19,789,350TOP 10 19,789,350
( 57% of U.S. Hispanic Pop. )( 57% of U.S. Hispanic Pop. )

15. Source: US Census 2000
Total Hispanic Non-Hisp.
Black
Non-Hisp.
Asian
Non-Hisp.
White
36.636.6
26.626.6
30.8 32.5
38.8
Hispanics’ Median Age is Lowest in the Nation:
Hispanics are Younger and RepresentHispanics are Younger and Represent
Growing Number of Consumer ProspectsGrowing Number of Consumer Prospects

16. Larger Households MeanLarger Households Mean
More Consumer Prospects…More Consumer Prospects…
2.6
2.75
3.5
2.62
TotalTotal HispanicHispanic Non-Non-
Hisp.Hisp.
WhiteWhite
Non-Hisp.Non-Hisp.
BlackBlack
Source: US Census Bureau, March 2000 CPS, Households Size 1967-1999)
Larger Hispanic Households –
Higher Birth Rate and Extended Nuclear Family 
Average No.
People/Household

17. More Hispanic ChildrenMore Hispanic Children
per Householdper Household
HispanicHispanic Non-HispanicNon-Hispanic
WhiteWhite
Non-Hisp.Non-Hisp.
BlackBlack
Source: US Census Bureau 2000, Race – Age & Sex for the
U.S.
Percent (%) Composition of Household
Under 18 Years Old
35%
22.6%
32.5%
Market to young,
growing and
influential
U.S. population

18. Hispanics Show Biggest GainHispanics Show Biggest Gain
in College Graduates…in College Graduates…
Hispanics
2.84 6.07
+114%
Source: Census 2000, Educational Attainment
70.35
Total
+44
%
African
Americans
101.58
+29.6
%
5.74
+73%
9.89
1987
1997
Non-Hispanic
Whites
( Millions )
80.04
61.78
61.78

19. Rising # of Hispanic OwnedRising # of Hispanic Owned
Businesses and Revenue GrowthBusinesses and Revenue Growth
Hispanic Business African American
Business
Number of
Businesses
422,373
+184%
1.2
Million
424,165
+94%
823,499
1987
1997
Sales and
Receipts
(000)
$24.7
Billion
$186.3
Billion 3.5
X
higher
$71.2
Billion
7.5
X
higher
$19.8
Billion
Source: 1992 & 1997
Economic Census
13.7
Million
+52% 20.8
Million
$1,955
Billion
$18,553
Billion
Hispanics African AmericansTotal
Total
9.3
X
higher

20. Average Spending for All Consumers and Hispanic Consumers
Share Share
of Total of Total
Unit ($) ( % ) Unit ($) ( % )
TOTAL ANNUAL 38,045 100 32,735 100
EXPENDI TURES
FOOD AT HOME 3,021 7.9 3,496 10.7
FOOD AWAY FROM HOME 2,137 5.6 1,865 5.7
ALCOHOLIC BEVERAGES 372 1.0 285 0.9
HOUSI NG 12,319 32 10,850 33.1
APPAREL & SERVICES 1,856 4.9 2,076 6.3
TRANSPORTATI ON 7,417 19.5 6,719 20.5
HEALTH CARE 2,066 5.4 1,243 3.8
ENTERTAINMENT 1,863 4.9 1,186 3.6
PERSONAL CARE PRODUCTS 564 1.5 564 1.7
& SERVICES
PERSONAL INSURANCE & PENSIONS 3,365 8.8 2,608 8.0
MISCELLANEOUS 3,065 8.1 2,406 5.7
ALL Consumers
Avg Spending
Per Consumer
Hispanic Consumers
Avg Spending
Per Consumer
U.S. Average Annual ExpendituresU.S. Average Annual Expenditures
and Item Share - 2000and Item Share - 2000
Source: Shares calculated by the Selig Center, based on data from the Consumer Expenditure Survey, 2000.

21. SBS Markets –SBS Markets –
Consumer ProfilesConsumer Profiles
L.AL.A N.YN.Y.. P.RicoP.Rico MiamiMiami ChicagoChicago S.S.
AntonioAntonio
Average # 4.2 3.4 3.7 3 4 3.2
Persons / HH
Buying Power
($ Billions ) 66.8 39 31 39 12.8 11.5
Mean HH
$51,912
$48,399
$27,017
$57,472
$52,303
$37,077
Source: Strategy Research Corp 2002

22. LA NY Miami Chicago SA
White Collar Occupat ion 1,222 707 436 239 204
37 35 46 32 48
Professional / Executive 495 284 179 96 81
Mangerial / Administ rative 15 14 19 13 19
Employed Full-Time (35+ Hr) 2,091 1,146 580 526 269
64 57 61 70 63
Tw o or More Persons 1,847 979 563 408 223
Employed in Household 56 49 59 54 62
Self Employed / 432 184 136 69 39
Small Business Ow ner 13 9 14 9 9
Household I ncome 35K + 1,932 1,227 610 455 242
59 61 64 60 57
(000)
(%)
No. and % of Hispanics per MarketNo. and % of Hispanics per Market
That BelongThat Belong to Specified Groupto Specified Group
Below:Below:
Hispanic Persons 25-Hispanic Persons 25-
6464
Scarborough: Release2 – Aug.‘01 – July ‘02 / SBS - U.S. Hispanic Markets

23. LA NY Miami Chicago SA
HHLD Has Home Mort gage 480 335 188 152 64
15 17 20 20 15
HHLD Has Home Equit y Loan 122 97 57 65 22
4 5 6 8 5
HHLD Has Savings Account 1,692 1,157 535 446 305
52 58 56 59 72
HHLD Has Checking Account 1,741 1,205 701 409 297
53 60 74 54 70
HHLD Has CD or MM Acct s 179 267 151 105 63
6 13 16 14 15
(000)
(%)
No. and % of Hispanics per MarketNo. and % of Hispanics per Market
That BelongThat Belong to Specified Groupto Specified Group
Below:Below:
Hispanic Persons 25-Hispanic Persons 25-
6464
Scarborough: Release2 – Aug.‘01 – July ‘02 / SBS - U.S. Hispanic Markets

24. LA NY Miami Chicago SA
HHLD Has 401K or I RA 631 446 179 213 102
19 22 19 28 24
HHLD Has Mutual Funds 916 573 315 254 165
St ocks or Securit y I nvest mt 28 29 33 34 39
HHLD Has Any I nvestment 1,027 703 371 307 1,027
31 35 31 41 31
HHLD Used Any Credit Card 2,020 1,302 743 438 107
Past - 3 - Mont hs 61 65 78 58 25
(000)
(%)
No. and % of Hispanics per MarketNo. and % of Hispanics per Market
That BelongThat Belong to Specified Groupto Specified Group
Below:Below:
Hispanic Persons 25-Hispanic Persons 25-
6464
Scarborough: Release2 – Aug.‘01 – July ‘02 / SBS - U.S. Hispanic Markets

25. Summary & OutlookSummary & Outlook
 Hispanic Consumer Buying Power will rise another 60% in the next
five years – twice that of Non-Hispanic buying power.
 Given the high growth rate of the Hispanic Market advertisers &
marketers can not afford to miss the mark.
 Due to both higher rates of natural increase and immigration,
the Hispanic population is growing more rapidly than the total
population, a trend that is not expected to change.
 Census data indicates that the number of U.S. Hispanics earning more
than $50,000 annually grew by over 128% between 1994 and 2000
 Hispanic Buying Power in the next decade will be further enhanced
due to the numbers of young Hispanics who are either entering the
workforce for the first time or moving from entry-level jobs to the
next step on their career ladders.

26. What Others Say…What Others Say…
 “ Corporate America cannot continue to wait on
investing in the Hispanic Market. The size of the
Hispanic market has repeatedly caught Census
forecasters by surprise. The corporations that have
been successful in reaching the Hispanic market
did not wait for the Census to develop
multicultural marketing strategies. They realize the
Hispanic market’s full purchase-dollar potential
and have seized the opportunity. ”
Carlos Santiago ( Santiago & Valdes )