hispanics in USA Archives | Page 2 of 2 | National Hispanic Advertising Agency

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Why banks are missing a great investment opportunity

According to the latest FDIC report survey, 48.7% of Latino households were “unbanked” or “under-banked”. This means, they never had an interaction with a financial institution in the past or they have poor access to mainstream financial services normally offered by retail banks.

Hispanics have a growing need and demand for financial services. It is estimated that by 2020, one in five Americans will be Hispanic and by 2050 the gap will be even shorter, one in three.

Among Hispanic banking users, the financial service products with the biggest percentage difference of growth from 2008 to 2012 were debit cards/ATMs, home mortgages, and online banking. It is also estimated that 44% of Hispanics utilized online banking compared to 29% of the general market. Nearly half of the Hispanics listed online banking as their preferred channel to conduct transactions.

It is important to understand that Hispanic target marketing is not a passing fad. On the contrary, it is a long-term investment that will significantly pay off.

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Capitalizing on the strong loyalty of U.S. Latinos

By Hernan Tagliani Leave a Comment

Hispanics are a powerful market and they are here to stay. In fact, they will have a significant effect on the U.S. economy in the coming years. As a demographic market they are growing faster and have greater influential power as consumers. They play an important role from product consumption to brand perceptions.

It is estimated that their purchasing power will increase 50% within the next 2 years (from $1 trillion in 2010 to $1.5 trillion by 2015). Every day, one in four kids born in the U.S. are Hispanic. Also, they account for 3 million Latino-owned companies with over $500 billion in revenue in the small business sector.

Besides these incredible facts, there are still a lot of misunderstandings and misconceptions about this booming market. Some people are still considering more than 20 different Spanish-speaking nationalities part of the Mexican group. They think that U.S. Hispanics are English dominant. So, the Anglo ad campaign will resonate to them or a simple translation will do the trick. In fact, many times straight translations can actually weaken your brand in this segment.

It is important to realize that the Hispanic market is savvy. You must understand their diversity; consider their linguistic, cultural, and social differences. It is the only way to create messaging that resonates uniquely to them. They consume media in different ways through different outlets. So understanding who they are will help you to understand how to position your brand. [Read more…]

Community outreach: Your sponsor for success

By Hernan Tagliani 1 Comment

For some companies the Hispanic market means an opportunity to expand their businesses. For others it is the million-dollar question. Should they do something now or wait until they have to?

Based on the latest Nielsen report, Hispanics will contribute 60% or higher to the population growth over the next five years. It is imperative for corporate America to start taking a proactive approach to this market niche instead of waiting for their competitors to give the first punch. Hispanics are changing the new American consumption and they will represent a big percentage in your company’s bottom line very soon. Despite the recession, U.S. Hispanic households that earn $50K or more are growing at a faster rate than total households.

One of the most effective ways to be successful in this market niche is community outreach. You must make a genuine effort in being part of and giving back to this community. Sponsor Hispanic festivals or events. Show your appreciation for their trust and business. Sometimes, companies look for a quick way to generate revenues. They become members of some Hispanic non-profit organizations. They sponsor a couple events during the year but they don’t fully embrace the effort by making an impact in the community. In other cases, it is all they do for the year. They don’t even have a marketing strategy or media buy to reinforce these half-hearted efforts. [Read more…]