National Hispanic Advertising Agency

The Group Advertising Blog

Latinas. The driving force of hispanic households.

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They run the household and soon could be steering your bottom line. Hispanic women, also called Latinas, play an important role when it comes to shopping for their households. Even though a father figure is a sign of respect and authority in a Hispanic family, mom most of the time is the one who runs the show and has the final word. I remember being a little kid asking my father for permission to hang out with my friends. After I got his approval he asked me, “Did you also ask your Mum about it?” I am sure this sounds familiar to many of you.

It is important to understand cultural nuances if you want to engage with this growing and influential target audience. It is curious to see on English marketing campaigns that the father figure is portrayed as somebody that doesn’t know what is going on or always breaks something in a household. This humorous portrayal of a father figure can make several target audiences laugh. However, if you try that with the Hispanic audience you will insult just about every Hispanic man if they are represented that way. These kinds of cultural nuances are important to keep in mind, and they prove why it is so important to stay away from literal translations when it comes to your advertising and marketing.

Based on the Nielsen report “Latinas are a Driving Force Behind Hispanic Purchasing Power in the USA,” Hispanic women are expected to represent 30% of the total U.S. female population by 2060. White female population is expected to drop 43%.
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Fútbol: The king of sports to connect with hispanics

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There are many things that Hispanics from different nationalities and generations have in common: language, culture, food, and values top the list. However, sports are central to their identity. Favorite teams are passed down through generations. It is a family bond. Sports engage not only U.S. Hispanics but also foreign born.

Hispanics are big fans of boxing, baseball, UFC fights, basketball, and football. However, soccer (fútbol) is the major sport. Spanish-speaking and bilingual Hispanic consumers have a great affinity for fútbol games played at the national level. Soccer games featuring Mexico “El Tri” are among the hottest sports properties and draw immense viewership among Spanish-speaking sports fans. Considering that 73% of Mexican Americans speak mostly Spanish or are bilingual, these games are a sure bet to draw huge audiences, emphasizing the combined influence of language and country of origin.

Based on the latest sport report from Nielsen, 94% of Hispanic males say they’re sports fans, and 56% of Hispanic males consider themselves avid fans. Also, Hispanic fans are twice as likely to attend sporting events at least once per week. When they’re not at the games, watching sports is an opportunity for them to socialize. They like to watch sports programming with others. Fifty-five percent of Hispanics say they’re more likely to take in a televised game or other sports programs at someone else’s home, while 45% of non-Hispanics noted that they do so. However, according to the Nielsen report, they tend to use the mobile device to watch sports-related content (24% use a tablet to watch sports content, 27% use a smart phone compared to 12% and 15% among non-Hispanics). [Read more…]

Tourism. A multi-billion dollar attraction to hispanics

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Tourism is one of the world’s largest industries. There are cities in the USA and countries like Mexico, Spain, Costa Rica, and many others in South America that have been even transformed by this great economic resource.

Among the Hispanics in the United States, the immigration phenomenon and the need to stay connected with their family have created a new vehicle and opportunity to expand Latin American tourism. Even though this industry is being threatened by international terrorism, which seriously affects communication and deployment, travel to their home country to visit relatives has not stopped. They also have a considerable interest to continue to learn about the Latin American culture and explore the countries where they came from.

In the U.S., Hispanic travel is growing at a faster rate than the general market. Its current economic impact is already estimated at more than $42 BILLION dollars annually based on the latest tourism report by Mandala Research. [Read more…]

Hispanics & Clothing

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An industry that won’t go out of fashion.

Hispanics are a young, vibrant, and rapidly growing community in the USA. It is estimated that their average age is 27 years old, which is 10 years younger than non-Hispanics. They also have an average of 3.6 people per household verses 2.4 in the Anglo market.

There are many industries that can benefit from this booming demographic. The retail sector is definitely one of them. According to “Think with Google’s US Hispanic Retail Consumers study,” clothing is the most popular retail item purchased by Hispanics (89% for Hispanics vs 86% for the general population). Also, Mintel, a global and award-winning provider of Market Research, reports that in the footwear category alone Hispanic spending is at approximately $475.78 annually compared to $280.01 for non-Hispanics.

Based on a 2013 survey “Prosper Insight & Analytics,” Hispanics tend to purchase clothing when it is on sale (60.5% of males and 69.7% of females). Additionally, 15.4% Hispanic males and 17.8% Hispanic females buy clothing only when it’s on sale. So, it may be difficult to sell full price clothing to this target audience, but retailers will do very well if they consider a pricing strategy that “walks up” their pricing.  With careful planning and an excellent retail business plan, the “red tag sales” and “20% off sales” can continue all day long. [Read more…]

Hispanics. The geography of the new america.

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According to the latest U.S. Census, it is estimated that there is around 52 million Hispanics living in the United States. This represents around 16.7% of the U.S. population, making people of Hispanic origin the nation’s largest ethnic group and the second largest consumer market.

It is estimated that the U.S Hispanic population will reach 132.8 million by 2050, constituting approximately 30% of the U.S. population by that date.

Among Hispanic subgroups, Mexicans ranked as the largest at 63% of the population. Following Mexicans were Puerto Ricans (9.2%), Cubans (3.5%), Salvadorans (3.3%), Dominicans (2.8%), and the remaining 18.2% were people of other Hispanic or Latino origins.

The state with the largest Hispanic population is California (14.4 million), and the state with the highest percentage of Hispanic population is New Mexico (46.7%). Hispanics are impacting America in so many different ways.

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Reaching out to latinos is not rocket science.

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My team and I have the honor to work with brands that impact the lives of many people.  When kids are involved, however, we like to challenge ourselves even further.  Kids will tell you right away how they feel and if you are doing a good job.  They are a very particular audience to please.

I remember when we started helping one of our clients to reach out Latinos. During our first presentation with the Marketing Manager, he realized there was an opportunity to boost sales and increase membership.  It was an untapped market for his non-profit organization.  Even though they had an established reputation in the Anglo market since 1955, Latinos were unaware of their services due to the lack of brand recognition in the past.

This is one of the main challenges that companies face when they want to reach the 2nd largest consumer market.   They need to be willing to understand the culture, embrace it, and realize there are other markets willing to do business with them.  This mindset change is what empowered our client to become an important community player in the Latino community. [Read more…]

Why corporate America is not targeting latinos

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The top 3—bad—excuses from decision makers.

 

Latinos are no longer a sub-segment of the economy. They not only played an important role during last presidential election but they are also emerging as a powerhouse of economic influence. This is presenting marketers a challenge because this group has the weight to significantly affect their company’s bottom line—now and in the future.

Corporate America knows that Hispanics are the 2nd largest consumer market in the USA. They are also aware that Hispanic-owned businesses are growing at over twice the rate of national average ($350 billion in revenue annually). However, they are still not proactive enough to engage with this influential demographic that will represent one in five Americans by 2020.

 

These are the top 3 excuses why companies are not targeting to this demographic.

1) I HAVE A FULL SERVICE ADVERTISING AGENCY OF RECORD. THEY COVER ALL MY NEEDS.

Most firms continue to approach the Hispanic market as either an outreach of general market business practice or an extension of a brand or business unit-specific strategies. Worse still, they continue translating their Anglo campaigns into Spanish provided by their agencies of record.

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Community outreach: Your sponsor for success

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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…]