Are You Hip to the Hispanic Market?

                 Top 10 Demographic & Marketing Trends to Know

By Samantha Busso

It’s National Hispanic Heritage Month, a period when the histories, cultures, and contributions of Hispanics in the United States are recognized and celebrated.

As digital and social media experts, Reilly Connect is well aware of the importance (and growing presence) of Hispanics in this country. According to the U.S. Census Bureau, there are now about 55 million Hispanics living in the U.S., and it is the nation’s largest (and among the fastest growing) minority group.  We also understand the complexity of marketing to Hispanics, as one size does not fit all. To reach this diverse group, brands must employ data-driven marketing and media strategies in order to align themselves with Hispanic values and habits, which can vary greatly across demographics.

Drawing from Ad Age’s 2015 Hispanic Fact Pack and other recent research, here are my handpicked top ten demographic and marketing trends:

1.       U.S. Hispanic buying power is expected to reach $1.5 trillion this year. That’s right—trillion.

According to Nielsen, that is a 50% increase from 2010. As Hispanics increase in population, their buying power naturally follows the same trend.

2.       38% of Hispanic shoppers expect a positive change in household income next year.

Compare this to 23% of the total U.S. population expecting an increase to better understand the importance of the statistic. The source of such optimism may be related to education. Pew Research reports that the number of Hispanics ages 18 – 24 enrolled in two- or four-year colleges has more than tripled since 1993, and Hispanics are also believed to be the largest minority group on U.S. college campuses.

3.       52% of the U.S. Hispanic population is below age 30.

Marketers have an opportunity to establish brand loyalty with Hispanic buyers at a young age.

4.       96.8% of Hispanic smartphone owners use their phone to browse the internet.

Only 92.4% of non-Hispanic smartphone owners do the same. U.S. Hispanics are known to be early adopters, so brands hoping to catch their attention and establish a relationship would be wise to harness the latest digital technologies.

5.       85% of U.S. Hispanic internet users are on Facebook and Messenger.

U.S. Hispanics are social media leaders, and they aren’t just using the platforms to connect with family and friends. According to Ad Age, 25% of Hispanics use social sharing/networking sites as a way to tell people about companies or products that they like, which is 2.5% higher than non-Hispanics.

6.       52 % of Hispanic adults preferred English-only advertisements when online.

Hispanic marketing must go beyond simple message translation to discover what drives them and makes them feel included. Brands have found success with more subtle approaches, such as referencing Spanish-language surnames and showing Hispanic families in commercials.

7.       77% of Hispanic shoppers shop with another person.

When compared to only 51% of non-Hispanics who shop with another person, it becomes clear that for Hispanics, shopping is social. Marketers must therefore consider who (parent? spouse? child? friend?) might be influencing their target while in store.

8.       57% of Hispanic shoppers ages 25-34 say they often try new flavors and/or products.

Again, Hispanics are early adopters who are characterized by a willingness to try new products—a trait that could be very beneficial to enterprising brands.

9.       Procter & Gamble Co., McDonald’s Corp., General Mills, PepsiCo, and Coca-Cola Co. are among the 50 largest spenders in the Hispanic market.

The most well-known companies and corporations in the country are transitioning into the world of multicultural marketing and are recognizing Hispanics as prominent players—not because it’s trendy, but because it’s a necessity.

10.   U.S. Hispanic media market advertising outlays grew by 12% last year.

Compared to the estimated 4.9% growth for overall U.S. major-media ad spending, more companies are increasing the amount spent on major media ads in the U.S. Hispanic market.

 

Samantha Busso is one of Reilly Connect’s social media and public relations experts who is thrilled to be launching her career at a time when Hispanics are influencing mainstream society more than ever before. Coming from a Hispanic background, she looks forward to having the opportunity to witness and contribute to companies’ commitment to the Hispanic market.

 

Sources:

http://www.pewresearch.org/fact-tank/2015/05/26/5-facts-about-latinos-and-education/

http://www.acosta.com/hispanic-why/

http://adage.com/article/hispanic-marketing/ad-age-s-2015-hispanic-fact-pack/299712/