By Insight Tr3s
Young Latinos have always been more likely to live with their families in early adulthood – and that is especially true today. With the cost of living on the rise and the recession making stable jobs a scarce commodity, moving out can be a major financial risk. As a result, Hispanics 18 to 34 are delaying forming their own households. Currently, 45% reside with their parents.
The tough economy has had a similar impact on young adults overall – 38% of non-Hispanic whites and 32% of blacks 18 to 34 live at home. They don’t see this as a bad thing, however. People 18 to 34 living with their parents overall are just as satisfied with their family life and housing situation as those living on their own. Parents with adult children in the household are similarly satisfied.
In addition, it’s not just people at the younger end of the 18-to-34 demographic living at home. A 2010 Pew study found that from 2000 to 2010, the percentage of U.S. adults 25 to 34 in multi-generational households rose 37%.
Hispanics in particular are 37% more likely to live in multi-generational households. Recent Tr3s research has found that these families are happy living under one roof. Being in a situation where they lean on each other for support, close relatives are at the core of young Hispanic adults’ circles of trust. In addition, Spanish is their language of choice with family. 9 out of 10 speak mostly Spanish within their multi-generational homes, even if they may speak English elsewhere.
Instead of rushing to form families of their own, young Latinos are taking extra time to nest with mom and dad while accomplishing their goals and working toward financial stability. This new dynamic is shaping how they live, value things, consume media, and make purchases.
Source: Pew, “The Boomerang Generation,” Dec ’11; Tr3s 2012 Study: “Hispanic 18-34s Living ‘The Next Normal’”; Pew, “The Return of the Multi-Generational Household,” Mar ‘10
After a meeting in New York Tuesday, the ratings company will roll out a system to measure broadband, Xbox and, in time, iPads, with more changes to come.
The Nielsen Co. is expanding its definition of television and will introduce a comprehensive plan to capture all video viewing including broadband and Xbox and iPads, several sources tell The Hollywood Reporter.
The decision to expand beyond traditional TV ratings measurement came out of a meeting in New York on Tuesday of the What Nielsen Measures Committee, a group that has been meeting for nearly a year. The committee is composed of representatives from major TV networks, local TV stations, cable TV networks, advertising agencies and some big brand advertisers.
The decisions made by the committee are not binding but a source at one of the big four networks was ecstatic at the prospect of expanded measurement tools. The networks for years have complained that total viewing of their shows isn’t being captured by traditional ratings measurements. This is a move to correct that.
By September 2013, when the next TV season begins, Nielsen expects to have in place new hardware and software tools in the nearly 23,000 TV homes it samples. Those measurement systems will capture viewership not just from the 75 percent of homes that rely on cable, satellite and over the air broadcasts but also viewing via devices that deliver video from streaming services such as Netflix and Amazon, from so-called over-the-top services and from TV enabled game systems like the X-Box and PlayStation.
While some use of iPads and other tablets that receive broadband in the home will be included in the first phase of measurement improvements, a second phase is envisioned to include such devices in a more comprehensive fashion. The second phase is envisioned to roll out on a slower timetable, according to sources, will the overall goal to attempt to capture video viewing of any kind from any source.
Nielsen is said to have an internal goal of being able to measure video viewing on an iPad by the end of this year, a process in which the company will work closely with its clients.
The shift doesn’t mean Nielsen will begin to provide ratings data for, say, Netflix. Nielsen will capture how much time is spent on that kind of viewing, but to actually provide ratings, Netflix would have to agree to encode its program signals so that Nielsen software can identify them and trace their source. The traditional TV networks do encode their signals to be compatible with Nielsen’s measurement tools.
Nielsen already captures a small amount of out-of-home viewing, such as at a few colleges. If a student comes from a Nielsen home, his or her TV viewing is tracked when the student goes off to college.
Nielsen also has a “customized” program to capture some viewing in places like college dorms, bars and restaurants. While Nielsen wants to expand its measurement out of home, that is not part of this initiative. Nielsen appears to be waiting until it acquires Arbitron, which does more such out of home measurement, before making that a priority.
A spokesperson for Nielsen declined to comment.
The 2012 presidential election showed the nation how important the multicultural marketplace is. President Obama leveraged the nation’s changing Hispanic and African American voting power — and their technological know-how and digital savviness — to produce an electoral landslide that surprised everyone.
If we, as business owners, refresh our thinking and approach to the multicultural consumer, we too can also follow the President’s lead in the new year. Here’s how:
1. Socialize and mobilize. As you ideate around your core brand message, think about the two-way social opportunities and mobile tools that are available to you AND your consumer base. Multicultural audiences have taken the lead in social media usage and mobile technology adoption rates. For example, recent Pew research shows that African Americans, in particular, use Twitter more than their peers – more than a quarter of African American Internet users (28 percent) use Twitter (vs. 12 percent of white/non-Hispanic Internet users and 14 percent of Hispanic Internet users).
2. Thinking multiculturally doesn’t necessarily mean BEING multicultural. This is often one of the biggest mistakes we all make. We don’t need to be a particular race/ethnicity (or members of a particular community) to be able to think like the aforementioned race/ethnicity/community.
A few years ago, my agency was working on a client program, and we were targeting an “Urban Suburban” consumer – someone who had the urban city mentality and sensibility, but didn’t necessarily live in a large metropolitan city. We were able to cut the corporate red tape and speak the same language of our “Urban Suburban” target audience – in the visual creative treatment as well as the grassroots tactics. It was a brand campaign that was ahead of its time and resonated with consumers in a deeper way than we all anticipated.
As you look to create and fine-tune your strategy and message, focus on working with individuals, agencies and vendors that understand the lifestyle and ethos of the target consumer — even if they aren’t necessarily the same skin shade.
3. Prioritize it. Incorporate multiethnic thinking into your core strategy, not just as an afterthought. Top 40 radio is a good example that we can draw from. A few years ago, this was a radio format that used to look at hip-hop as an afterthought, focusing on general mainstream music (i.e., rock and pop). As “urban” music made its metamorphic rise, Top 40 radio had to shift its programming radically. Today, the distinction is almost undetectable.
Empower your team to incorporate the multicultural consumer into the overall brand strategy. You can start off with a few simple questions and statements:
- How will this visual treatment look when consumed through a multicultural lens?
- Was the core brand essence and symbolism carried over correctly when we translated into Spanish (or another language)?
- Did we minimize or miss out on a cultural celebration/milestone that would help us speak to our multicultural consumer on their terms?
Add these to your brand check list, and in turn, you will empower consumers to incorporate your brand into their lifestyle and into their own social conversations.
4. “Multicultural” has many meanings. I must admit that I’m just as guilty as you are on over-simplifying the idea of “multicultural” marketing. African Americans, and more recently Hispanics, have gotten all of the media attention and marketing dollars. But we can’t forget about the social influence and buying power that other communities wield.
For example, the 2010 Census indicates that the Asian population grew faster than any other group over the last decade, growing by 45.6 percent from 2000 to 2010.
I don’t know about you, but I want to be talking to ALL my potential customers.
5. Try new media platforms and marketing vehicles. Ten years ago, consumers and companies resisted new media platforms like websites, banner ads and email campaigns, preferring the “tried and true” practices of the past.
As we go into 2013, we as marketers and brand champions must battle those same internal politics as we explore new media platforms (like near field communication [NFC] and RFID technologies or mobile commerce) and below-the-line promotional campaigns (e.g. social influencers, crowdsourcing).
Latino and Hispanic individuals make up one of the fastest-growing consumer bases in the United States, currently totaling nearly 17% of the country’s population. Yet, most marketers continue to totally ignore this demographic, or limit their efforts to occasional Spanish-language ads and product labels. In this article, we’ll talk about why advertisers who don’t focus on Latino and Hispanic populations will quickly fall behind those who do, and why your company needs to take this hugely important demographic into account.
The Hispanic and Latino market is often referred to as a “minority” interest group, but realistically, that’s a pretty incredible falsehood, and that kind of perspective means losing out on a huge sales opportunity. As I mentioned, almost 17% of the population of the United States consider themselves to be of Hispanic or Latino descent – and that number is only growing. In the past ten years, that population has almost doubled, with the market growing over 40% in that time frame, and promising to increase further over the next few decades.
A recent Forbes article highlighted a few more demographic trends: the Hispanic and Latino market has a purchasing power that’s expected to grow to $1.5 trillion in the next two years. By 2050, the Hispanic and Latino population is expected to make up almost 1 in 3 residents in the entire United States, further expanding that purchasing power.
And, the Hispanic and Latino market has a fairly young median age, a full decade younger than the average of consumers in the entire American market. Add to this the fact that one in three babies born in the US after 2015 is expected to be a member of this population, and this leads to a steady boom in a population that is likely to be tech-savvy and eager to purchase.
Where We Stand Now
The marketing and advertising industry simply isn’t investing in the Hispanic and Latino demographic category right now, even though this population clearly represents a huge opportunity for giant ROI when it comes to targeted campaigns. There’s no real way to collect data on how a population isn’t being reached, but just look around you. How many ads do you see each day featuring Hispanic or Latino individuals?
The reasons for this invisibility vary. Part of it is likely an insidious form of racism – the “average” American is still seen as a member of a white, decently affluent, nuclear family, and that tends to be who ads feature and are targeted to. With Hispanic and Latino individuals caught in the crossfire of debates about immigration, I find it entirely probable that advertisers, consciously or no, are loathe to contribute to increased visibility for the growing Hispanic and Latino population in the United States.
Beyond that, there’s simply bad data about how much Hispanic and Latino people are spending. According to a recent AdAge article, consumer data on race- and ethnicity-based demographic information tends to be fairly flawed and inaccurate. Sales data relating to this group often misses important information from independent stores in largely Hispanic and Latino neighborhoods, and tends to under represent non-English speaking individuals.
And apparently, due to that lack of data, companies try to fill in the gaps by translating data from one purchase area to another, or by mixing data from different studies and surveys. All together, these discrepancies wind up showing that Latino and Hispanic individuals spend 40% to 60% less than they actually do. So according to market research, you’d never know that Hispanic and Latino consumers make up such a potentially profitable market segment.
This is compounded and worsened by the fact that the Latino and Hispanic population is totally under represented in the marketing industry itself – on a recent “Who to Watch in Adland” list, zero Latino or Hispanic marketing professionals were represented. Of course, this may have more to do with the proclivities of those who compiled the list (there weren’t any women on it, either), but the list definitely sparked a conversation about why there are so few members of this all-important population leading the marketing world.
Where to Go From Here
The Latino and Hispanic market is hugely important to your business. And it’s not just important now – laying the groundwork for future targeting campaigns will only help your business as this population continues to grow and increase its buying power. A recent Forbes article likened the outcome of businesses who don’t market to the Latino and Hispanic demographic to the outcome of the Mitt Romney campaign, which also failed to do so: not going anywhere positive fast. (Hint: Mitt Romney’s Univision appearance is a great example of how not to appeal to potential Hispanic and Latino customers.)
The key, of course, is marketing to Hispanic and Latino individuals in a way that is relevant to their purchasing decisions. Much like I talked about in my article about women and “pink advertising,” slapping together a Spanish-language version of an ad isn’t going to cut it. Aggregating better market data might be a good place to start, since it’s hugely lacking right now. Encouraging more employment of Latino and Hispanic marketing professionals in leadership positions is a great way to get going, too.
Beyond that, it’s about building relationships with a new customer base, and developing a cultural intelligence that goes beyond quick fixes to up your sales. The Latino and Hispanic demographic is only going to become a larger consumer base in coming years, so, marketers, put your heads together now to come up with a way to do culturally relevant, targeted marketing right.
By Insight Tr3s
A Pew nationwide survey finds that Hispanic identity continues to be most rooted in family country of origin while the terms Latino and Hispanic are not as top of mind. The United States government uses the terms “Hispanic” or “Latino” to categorize Americans who trace their roots to Spanish-speaking countries. In its classification system, the federal government recognizes just one ethnic group, Hispanic/Latino, which it defines as follows: “A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.”
According to responses from the Pew Hispanic Center survey of Hispanic adults 18+ about one-quarter (24%) of Hispanic adults say they most often identify themselves by “Hispanic” or “Latino”. About half (51%) say they identify themselves most often by their family’s country or place of origin—using such terms as Mexican, Cuban, Puerto Rican, Salvadoran or Dominican. A vast majority, 75% describe themselves by their cultural roots (country of origin or Hispanic/Latino). Only 21% say they use the term “American” most often to describe themselves.
Latinos in the U.S. have many different cultures rather than a common culture. The survey respondents do, however, express a strong, shared connection to the Spanish language. More than eight-in-ten (82%) Latino adults say they speak Spanish, and nearly all (95%) say it is important for future generations to continue to do so. When asked which term they prefer, “Hispanic” or “Latino,” half (51%) say they have no preference for either term, while 33% say they prefer Hispanic and 14% say they prefer Latino.
Among first-generation (or immigrant) Hispanics, more than six-in-ten (62%) say they most often use their family’s country of origin to describe themselves. Among second-generation Hispanics, the share using their family’s country of origin falls to 43%. And among third-generation Hispanics, the share falls to just 28%—less than half that seen among immigrant Hispanics.
Tr3s research with 18-34s is in-line with these findings. The younger adult (majority U.S. born) is much more “chill” about their identity and more easily navigate between their American and Latino cultures.
The survey also finds Hispanics are divided about the degree to which they feel a common identity with other Americans. Some 47% say they think of themselves as “a typical American” while an identical share says they think of themselves as “very different” from a typical American. These responses vary sharply by immigrant status. Among foreign-born Hispanics, 34% think of themselves as a typical American; among the younger native born, 66% do.
The latest Tr3s sponsored Maximo Report 2012 by Motivo Insights and NGLC concur, finding that 73% of younger Hispanic adults 18-30 are “Proud of their Latino/Hispanic culture or their family’s country of origin” and 72% “Feel completely accepted by both Americans and people from their country of origin.”
At more than 50 million strong, Hispanics make up 16% of the U.S. population. Therefore, it is not surprising that singular labels for race and ethnicity are not universally embraced by this diverse demographic. Cultural nuances should be considered when reaching Spanish-speaking or Spanish-preferred audiences. With more insights into the Spanish-speaking U.S. Latino demographic, marketers can craft more meaningful and measurable campaigns and content.
Sources: Pew Hispanic Center (April 2012), tr3s 2011 Hispanic Millennial Study, Maximo Report 2012 by Motivo Insights and NGLC
Although Hispanics overall post lower-than-average social networking penetration, online US Hispanics are social mavens. For them, the sites occupy an outsized place in their digital lives, according to a new eMarketer report, “US Hispanics and Social Networking: A Digital Space They Make Their Own.” In an Anglocentric online universe that pays comparatively little heed to Hispanic interests, social networks provide a congenial space.
eMarketer estimates that 68.5% of Hispanic internet users will go to social sites from any device at least once a month this year. That’s several percentage points higher than the figure for all internet users.
As important as the sheer number of Hispanics on social networks is, the prominence of those networks in their overall digital usage may be even more telling. Polling by comScore in March 2012 for a Terra Networks report found online Hispanics averaging 4.0 hours per week on social networks, vs. 3.7 hours for online non-Hispanics.
Online Hispanics’ above-average time spent social networking is particularly striking when one adds a bit of context: The same study found them spending nearly three hours less per week than non-Hispanics using the internet across all screens (8.7 hours vs. 11.6). Putting all of these numbers together, it’s evident that social networking plays an outsized role in Hispanics’ overall digital lives.
While employing social networks for an array of purposes, Hispanics are not indiscriminate about what they’re willing to post there. A uSamp survey in February 2012 asked what types of information respondents were “willing to share in a social media setting.” Hispanics were markedly more guarded about sharing occupation, personal photos and other things that are common currency on social sites. Still, two-thirds said they were willing to share “race/ethnicity” on social sites, a factor that could make it easier for marketers to target them with Hispanic-specific content.
Funds are coming from traditional marketing and incremental budgets
As both digital media and multicultural outreach become more popular marketing techniques, US marketers are beginning to combine the two efforts.
In its “2012 Multicultural Marketing and Newer Media Survey Results,” the Association of National Advertisers (ANA) found that this year, more than half of US marketers (60%) will spend more on new media efforts, such as social media or mobile outreach, specifically to reach multicultural segments. An additional 24% will spend the same as they did in 2011.
When it comes to which customer segments these marketers are targeting, the greatest number, 88%, said they were reaching out to Hispanics. That was followed by targeting black consumers (54%), Asian consumers (37%) and LGBT consumers (11%).
This focus on Hispanic consumers makes sense given that they are the most populous and fastest-growing minority group, increasing by 3.1% since 2010, according to the US Census. But even though Hispanics are growing in number, and the LGBT community in particular is growing in influence, digital budgets for multicultural outreach remain mostly on the low end.
More than half of these US marketers (54%) had less than 5% of their multicultural media budget allocated to digital media platforms for 2012. However, the percentage of marketers spending more than 20% of their multicultural media budget on digital increased from 4% in 2010 to 13% in 2012.
As with all budget shifts, many marketers must pull funds from other areas of marketing, and 56% of respondents told the ANA that the funds for this digital multicultural outreach were shifted from the traditional media and marketing communications budget. Additionally, 28% said they were able to increase multicultural digital budgets thanks to their incremental budget.
As these two elements—multicultural and digital—are integrated more into overall marketing strategies, marketers will need to focus more time and resources on the technology-savvy Asian, Hispanic and black customer segments.