JeffreyGroup Blog
Top 5 Misconceptions about Marketing to Latinos
The Census numbers released earlier this year show that more than 50 million Hispanics live in the United States. If the U.S. Hispanic market were a country, it would rank as the 12th largest global economy, between Mexico and Australia. Latinos represent 16 percent of the total population and more than half (56%) of the net growth in the U.S. over the past 10 years. Although the numbers have gotten a lot of attention, many fail to understand the Hispanic culture. Here are five misconceptions about this important community that will help guide your marketing and sales strategies.
#1: Hispanic socio-economic status is so low it's not worth targeting this community
For some it’s counter-intuitive, but Hispanics currently comprise a buying power of $1.1 trillion, more than doubling over just the past decade. Hispanics will account for 11 percent of total U.S. purchasing power in the year ahead. How can any company ignore that?
#2: Most Hispanics are not online
According to Nielsen 2010 Universe estimates, approximately 30 million Hispanics (62%) have access to the Internet at home. Add in the number of Hispanics who have online access via work, school or in other public places, and Internet penetration rises to about 88 percent. Surprisingly, mobile Internet access closes this gap even further, since Hispanics are more likely to have a video and Internet enabled cell phone than the general market (44% vs. 35%).
#3: Hispanics consume media in English and lose their cultural identity in this country
There is a belief that once Hispanics learn to speak English, they immediately switch to only that language. While 77 percent of U.S. Hispanics speak English well, according to the current American Community Survey estimates, 61 percent of Hispanics aged 18+ speak Spanish in their homes. Spanish language remains a core component of the Hispanic home long after English proficiency is gained. And, language spoken at home rather than English speaking ability tends to be a better indicator of purchasing behavior.
Due to various factors, including geographic proximity to their country of origin, Hispanics do assimilate but also maintain strong ties to their culture. According to Nielsen, “acculturation is a process rather than an absolute classification whereby Hispanics adopt American customs while still guarding their culture, heritage and traditions.
#4: Hispanics are concentrated in a handful of cities<br /> What used to be known as the “Five Hispanic Markets” is now a misnomer, since the Latino population has sprawled across the country into various unexpected areas. Hispanic population has more than doubled in emerging markets such as Maryland, Louisiana, Indiana, North Carolina and Georgia. Arkansas is the state that currently has the fastest-growing Hispanic population in the country. Yes, Arkansas.
#5: Marketing to Latinos is complex, difficult and expensive
The reality is that Hispanic marketing is often less expensive, more effective and faces less competition than general market campaigns. According to a study from the Pew Hispanic Research Center, Hispanics tend to be more brand loyal, so our recommendation is always to build relationships during initial stages of acculturation when loyalty is highest. And keep in mind that Hispanic media continues to grow even as general market media shrinks. Univision beat out general market counterparts NBC, ABC and CBS in primetime ratings several times in 2011, and in many markets Hispanic newspaper readership is actually going up.
Overcoming Misconceptions
Hispanics will drive consumption in America for the next generation, and reaching this market effectively should be on the top of every company’s to-do-list. The market is huge, receptive and relatively untapped, and a program that seeks cultural engagement will help marketers target this audience in an impactful way.