Tag Archives: hispanic

Latinosphere: A Young and Mobile Emerging Market | ClickZ

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If you are planning to win in a young and emerging market like India or Brazil, you better have a strong mobile strategy (if not, ask Yahoo). The same applies if you want to win in another emerging market, a $1.6 trillion purchasing power segment that is right in your own backyard: the Latino market. It’s because the Latinosphere, Latinos in the age of digital, is a great example of another young and mobile emerging nation.

Throughout the past two years, Giovanni Rodriguez and I here at ClickZ have been discussing how Latinos are set to lead the mobile web. So when last week Zpryme Research released the 2012 Hispanic Mobile Consumer survey with new evidence on this trend, I couldn’t help but write a column on it.

Super Connected Latinos

Hispanics lead mobile adoption: smartphone penetration is 43 percent and tablet penetration is 19 percent among Latinos versus 35 percent and 17 percent respectively among whites according to eMarketer. Zpryme predicts that Hispanics will continue to influence mobile technology markets, estimating that by 2017, 20 percent of tablets and smartphones in the U.S. will be purchased by Latinos.

Regarding access to the Internet, laptops have outpaced desktop PC, 70.7 percent versus 59.1 percent respectively. Nearly half (46 percent) use their smartphone for Internet connection most of the time. Tablets are still behind as a way to access the Internet (19 percent) but rapidly catching up according to the Zpryme study.

Latinos’ Love for Mobile

Email continues to rank number one in online activities, no surprise there. But other activities are getting closer, especially social networking and listening to music as you can see on the chart below.

hispanic-online

Now when it comes to tablets, gaming ranks number one (74.3 percent), followed by email (66.3 percent), search (66 percent), and social networking (55.4 percent). It seems that tablets play a less functional role than smartphones as a great source for entertainment. Actually, 53 percent of Latinos said they preferred to get entertainment on their laptop/smartphone or tablet versus on their TV set.

Mobile Commerce: Myth or Reality?

There’s been a lot of discussion about Hispanics’ willingness to purchase online. And when it comes to mobile shopping, some experts question whether smartphone incidence shouldn’t be related to mobile shopping potential.

According to Jason S. Rodriguez, Zpryme CEO and director of research, “Hispanics’ use of mobile devices and related technologies reaches far beyond games, entertainment, and social media. Increasingly, they will drive demand for new mobile apps that help them manage their finances (pay bills, track accounts, etc.), maintain their lifestyles, and enrich their personal and business relationships.”

The study shows that 37 percent of tablet users are using their device to shop online. Forty-two percent of online purchases range between $26 to $100 per transaction. When it comes to factors influencing online purchases, price (44.2 percent) and website reliability (17.9 percent) come first. App purchases are becoming more and more frequent, with 31 percent of respondents having bought at least one app as recent as this week. Nearly half (48 percent) have bought games, songs (41 percent), news (24 percent), navigation (24 percent), and books (23 percent).

“Based on research from Zpryme’s Hispanic Insights Practice, mobile wallets and mobile banking will be major growth areas for Hispanics,” added Rodriguez.

Winning With the Emerging Latinosphere

Latinos are leading the mobile web. Not only by using mobile devices as their primary way of accessing the Internet but also as their preferred way for entertainment or shopping. Mobile Latinos should be considered as a testing ground for everything mobile.

Engaging consumers on a mobile device is about context and timing. There’s a screen size and a time limitation. Easy access and simplicity are key. Think about integrating entertainment into your mobile campaigns, personalizing experiences, leveraging location-based applications, exploring brand integrations into mobile gaming, among other possibilities.

If you want to win with the emerging Latinosphere market, your mobile experience should empower Latinos allowing them to take the lead rather than follow.

via Latinosphere: A Young and Mobile Emerging Market | ClickZ.

Jarritos, the Mexican Soda, Tries to Move Beyond Its Base – NYTimes.com

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JARRITOS, a Mexican soft drink popular among Hispanics in the United States, is introducing new advertising to win over non-Hispanic young men in the hope that they will spread the brand’s message even farther.

The campaign, which began rolling out in stages on Sept. 6, focuses primarily on the Los Angeles market, where Jarritos has commissioned three murals and is doing consumer sampling. The brand also has a new Web site, Jarritos.com, and is advertising on Pandora, the Internet radio service, and elsewhere online.

All initiatives of the campaign — which is by GSD&M, an agency based in Austin, Tex., that has previously done work for Coca-Cola and RC Cola and is part of the Omnicom Group — are aimed at 18- to 24-year-old, non-Hispanic, trend-setting males.

Jarritos is made with granulated natural sugar — not high-fructose corn syrup as are many mass-market soft drinks — and is sold in glass bottles at grocery and convenience stores, as well as some Super Target and Wal-Mart stores, in the United States. It comes in 11 flavors, including guava, tamarind and mango.

According to Beverage Marketing, a consulting company that specializes in the beverage industry, Jarritos is sold in almost half of United States grocery stores that have annual sales of over $2 million. Beverage Marketing also estimates Jarritos’s retail sales in the United States were from $150 million to $200 million last year, making it a leading niche soft drink.

Those sales are minuscule, however, compared with 2010 retail sales of $14.4 billion for Coca-Cola, $7.1 billion for Pepsi, and $5.2 billion for Dr. Pepper, as estimated by Beverage Marketing.

Read the rest via Jarritos, the Mexican Soda, Tries to Move Beyond Its Base – NYTimes.com.

Adjusted Socioeconomically, Hispanics and Whites Neck and Neck in Digital Use | Mediapost

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According to a study from the Pew Research Center, reported in Marketing Charts, 65% of Latino and 66% of African American adults went online in 2010, roughly 14% less than the 77% of white adults who did so. Additionally, only 45% of Latinos have broadband access at home, 13% less than the 52% of blacks and 31% less than the 65% of whites with home broadband access.

When controlling for education and income, the differences in these three measures between Hispanics and whites disappear. In other words, Hispanics and whites with similar socioeconomic backgrounds have similar usage patterns. Moreover, those born in the US and bilingual and English-dominant Latinos were more likely to use digital technologies.

Latinos Less Plugged-In (% of Respondents)
Ethnicity Internet Use Home Broadband Access Cell Phone Use
Hispanic

65%

45%

76%
Whites

77

65

85
AfricanAmerican

66

52

79
Source: Pew Hispanic Center Survey, August 2010

Pew analysis indicates that bilingual and English-dominant Hispanics are far ahead of Spanish-dominant Latinos in many measures of digital usage, too. Spanish-language Latinos are significantly less likely to use the internet, have a home internet connection, have home broadband access, or have a cell phone than English-dominant and bilingual Latinos. However,Spanish-dominant Internet usage has increased to 47% in 2010.

In Latino TV consumption, Spanish-language Univision is now the fifth-largest network in primetime audience in the US. Univision dwarfs all other Spanish-language broadcasters in the US. In the 2010-2011 television season, Univision was the only major US TV network to grow average primetime audience among 18-49 year olds, up 8% compared to the season before. For the same demographic group among the English-language networks, Fox lost 4%, CBS lost 8%, ABC lost 9% and NBC lost 14% in the same period.

Univision Competes With Big Four Networks(Viewers 18-49; Millions; Season Avg. Through 5/15/2011)
Network Viewers
Fox

4.6MM
CBS

3.8
ABC

3.2
NBC

3.1
UNI

1.9
TELE

0.65
Source: Nielsen, May 2011

In total viewers, Univision remains behind its English-language counterparts (ABC, CBS, Fox and NBC). But it has closed the gap substantially in recent years. For the season running June 2010-May 2011, Univision averaged 1.9 million viewers ages 18 to 49 in primetime, just more than a million shy of the fourth-ranked English-language network, NBC.

On a number of occasions throughout the 2010/2011 season, moreover, Univision even surpassed one or more the English-language networks:

  • July 2010 was the first month in which Univision attracted more 18-to-34-year-old viewers in primetime than any network, including ABC, CBS, Fox and NBC
  • About half of the nights during the first quarter of 2011 it attracted more 18-to-49-year-old viewers than NBC
  • For 22 nights over the February 2011 sweeps period, Univision had higher ratings in primetime than at least one of the big four English-language networks in the 18-34 or 18-49 age groups
  • Later, for a week in April 2011, Univision attracted more primetime viewers than NBC – the second time in four weeks that it edged out a big network
  • And for a week in May 2011, Univision was the No. 3 broadcast network in primetime, ahead of CBS and NBC with 1.1 million viewers ages 18 to 34

César Conde, president of Univision, told the Miami Herald that “… Univision has gotten so big over the years that our primary competition is the English-language networks… ”

Additional findings noted in the report:

  • The Latino Print Network, whose measures include both Spanish and English language newspapers aimed at the Hispanic population, estimated Hispanic newspaper ad spending in 2010 at $712 million, a 5.6% drop from $754 million a year earlier
  • In 2010, local ads accounted for 78% of all Hispanic newspaper ad revenue, or $554 million, according to Latino Print Network. National ad revenue accounted for 21% ($151 million); online web advertising represented only 1% of ad revenue ($7.2 million)
  • By the most recent count (fall 2009), there were 1,323 Spanish-language stations
  • Pew estimates Spanish-language magazine ad spending grew 5% year-over-year in 2010

And, according to a July 2011 survey from the Pew Research Center, younger adults, minorities, and lower income earners who own smartphones are likeliest to use them to access the internet. 42% of 18-to-29-year-old smartphone owners mostly use them for web access, double the 21% of 30-to-49-year-olds who do so and more than four times the 10% of smartphone owners 50 and older, while 38% of black and Latino smartphone owners mostly use the devices for web access, more than double the 17% of white smartphone owners who do so.

For more information, please visit the complete Pew report here, or the excerpts from Marketing Charts here.

via MediaPost Publications Adjusted Socioeconomically, Hispanics and Whites Neck and Neck in Digital Use 09/19/2011.

Multicultural Marketing Is Very Much Alive | Response to Ad Age Article

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A Sept. 4 post claiming multicultural marketing is dead with the headline, “As Sun Sets on Multicultural Space, Execs Must Adapt,” drew a wide range of comments from Ad Age readers. The Association of Hispanic Advertising Agencies responds:

As the voice of the Hispanic-specialized marketing industry, we know that cultural relevance remains the trump card in marketing, regardless of the population segment you are trying to reach (urban/suburban/rural, gay/straight, affluent/working class). Therefore, it is vital to have marketing practitioners who not only reflect the target market but also understand these cultural nuances.

Language is and will continue to be a factor in marketing — just ask media giant Univision. Univision — and other Spanish-language networks, Telemundo, Vme and Azteca TV — continues to rapidly grow and expand, often beating out general market networks (NBC, ABC, CBS and FOX) in ratings, especially in top Hispanic markets.

Hispanic media, much like the general market, has had to adapt to the current environment with robust digital portals that stream live news to up-to-the-minute mobile marketing. The trend of mass marketing to marketing-to-one has picked up steam both in mainstream marketing AND multicultural marketing, where cultural pride continues to be central to the American identity. The mentality of “Does this company get me?” coupled with technology and the global trends of customization, personalization, and inter-connectivity have all led to a market-wide flourishing in multicultural digital strategy and public relations. Traditional advertising, which was once the cornerstone in the multicultural marketing mix, now shares the stage with digital, promotions and public relations — the revenue streams of which continue to increase.

No, multicultural marketing is far from dead. Ethnic agencies are on the rise, and even agency powerhouses have gotten wise and boast internal multicultural departments that seamlessly expand a campaign, make it their own and give it a new voice. The question becomes, once minorities become the majority, what will happen to general market marketing?

via Multicultural Marketing Is Very Much Alive |.

Misleading Research? Latino voters respond more to English ads

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Take a look at the American Political Research conclusions below. Bear in mind a few things, this study was conducted in a single voting district in New York City (Queens), and the study was conducted in 2009 in the context of a special election to fill a vacancy for city council.  In addition, the “Latino” population on this area, consists primarily of populations of immigrants from South & Central America and the Caribbean.  So, before you jump to conclusions, study the actual study which can be found here: Does English Matter?  The Impact of Spanish Versus English-Language GOTV Efforts on Latino Turnout (American Politics Research-2011-Abrajano-643-63).   We can’t figure out why this is just coming out.

—-

NEW YORK, Aug. 19 (UPI) — English-language print ads have a greater impact in mobilizing Latino voters than Spanish-language print ads, U.S. researchers found.

The study, published in American Political Research, examined the effects of direct mail pieces on Latino voters. The mailer, written in either English or Spanish, was sent to two separate groups, while a third that received no mailing was used as a control group.

The experiment was conducted during a New York City Council election in 2009.

The study found that while both English and Spanish language materials increased voter turnout among Latinos — whose participation in elections generally lags behind the general population — the English language materials not only had a greater impact, but also drew in a broader voter demographic.

“English-language appeals were effective across the board for Latinos in our sample,” wrote study authors Marisa Abrajano and Costas Panagopoulos, “whereas Spanish-language outreach was only effective among low-propensity voters and participants whose primary language was Spanish.”

Infographic | Latino Impact on the US Census

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Ginger Zumaeta loves her infographics.  And in her ongoing effort to bring you the most relevant info on Latino & Multicultural Marketing, she dug up this Porter Novelli piece that we want to share.  Check it out.

Latino Impact on the 2010 US Census

One thing is clear, if you want to reach the ‘full’ Latino, you should think very seriously about incorporating Spanish language into your advertising.  And, as we’ve mentioned in previous posts, mobile should be a part of that strategy as well.

Latinos Over-Index on Smartphones & Watch More Mobile Video

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Nielsen recently released The Cross-Platform Report and there’s an interesting nugget of information tucked into the very end of the report that indicates that Latinos have the highest penetration of Smartphones than any other ethnicity.

Latinos Have More Smartphones

Interestingly, Latinos also spend more time watching mobile video.

Latinos Spend More Time Watching Video on Mobile Devices

In light of the increased Smartphone penetration amongst Latinos, it’s not really all that surprising that they’re watching more video on their wireless devices.  The question now will be how do video producers take advantage of the trend.

Grab the full report here: Nielsen Cross Platform Report Q1, 2011

Latinos Go Mobile, so Go Mobile to Reach Latinos | MarketingProfs

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Take a look at Ginger Zumaeta’s latest article on MarketingProfs.com.

Everybody’s talking about the need to have a mobile strategy lately, but it’s hard to find anyone telling you how to go mobile. What does it mean, and how do you add it to your current strategy? Who is it right for, and what should you expect from it?

2 Things to Keep in Mind

First, you should know that mobile is about more than phones. It includes all wireless devices including the iPad, Android devices like the Xoom, and others that are hitting the market in droves.

Second, you should know that Latinos love their mobile devices. According to Nielsen, Latino households are more likely than the overall population to have cellphones with Internet access, and Latinos text more than any other race or ethnicity. With smartphone penetration at 45%, Latinos use their mobile device as a key source of connectivity both in the home and on the go.

According to Forrester:

Nearly 100 million smartphones will be activated by the end of the year.

Consumers are doing more than email, surfing and texting … Now they’re consuming media, banking, purchasing, and even doing their taxes on their wireless devices.

Advertisers are scrambling to reach people on their phones to the tune of spending more than $1 billion in mobile search and display.

Consumers are forecasted to transact over $6 billion on their mobile devices by the end of the year.

Those statistics make it easy to understand why advertisers and marketers are rushing to put together mobile strategies.  But the question is how?

APP, WAP, or Both?

Businesses need to be able to be found on mobile devices, and two of the easiest ways are to build a WAP site and to build an APP.

Start with a WAP site. WAP stands for “wireless application protocol” but you can just think of it as a site that looks good and makes sense on a cellphone screen or tablet screen. It’s not your full website on a mobile browser. WAP sites are all about the context of the device.

For example, when you’re looking up a business on your phone, you don’t want the entire history of the company, so an “About Us” page is probably useless in that context. What you do want is a map, a phone number, and an address. Those items should be front and center. When consumers are looking for your business on their cell phone, chances are they are ready to take action, so give them the most important info first: how to get to you and a number to call. For Latinos especially, it’s also smart to include a feature that allows them to get a text of your business details (phone, address, hours of operation, website URL, etc.). Having a text message with your business’s vitals makes it easy for them to refer to your business later. And you’ve captured their cell phone number.  Later, you can implement an opt-in mobile marketing strategy, if it makes sense.

An APP is the next level of mobile engagement, especially for power users and core customers. For example, think of cellphone apps from the likes of Chase Bank, Starbucks, and Southwest. Chase Bank allows you to take a snapshot of a check and auto-deposit it to your account. Starbucks enables you to find the closest Starbucks to where you currently are based on your geolocation. The Southwest app enables flyers to have their itinerary handy and know how many additional flights will get them to A-list status, which encourages them to book more flights. The reason consumers download these apps (beyond simply going to a WAP site via their browsers) is that they interact with the business on a regular basis. And with an APP, the business is making sure that the engagement continues and even increases.

If you’re thinking about an app, start with something free offering convenience and context appropriate utility. The trick here is to “launch and learn.” Figure out what works and what doesn’t.  Solicit and pay attention to comments, and respond. Figure out how to make the app better. You may even stumble upon a way to extend your current services and possibly even justify a pro version to fund ongoing improvements.

It’s All About Context

More than anything else, you have to remember that engaging your consumer on a mobile device is all about context. They’re likely viewing your page on a small screen, have limited time, and are away from a fixed computer. Make sure you make it easy for them to engage with the following things in mind.

  • Immediacy: Your consumer is on the go and ready to take action. Are you giving them a way to get to a transaction quickly?
  • Simplicity: Make the interface is easy to manipulate on the go. Think BIG BUTTONS, easy streamlined navigation, and easy to read font.
  •  Location: Make sure to give them a way to interact based on their current location. Include an easy store-finder if you have brick & mortar locations.

Ginger Zumaeta is the CEO of Beehive Group, a multicultural marketing agency specializing in Latino engagement. She can be reached at ginger@beehive.me.

via Latinos Go Mobile, so Go Mobile to Reach Latinos | MarketingProfs Daily Fix Blog.

Get Ready for the Battle of the Latino Basket | Ad Age

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Among the more than 800 attendees of last weeks Hispanic Retail 360 conference held in San Diego, there were surprisingly very few agencies. In fact, according to conference organizers, only about 10% of attendees came from the agency world. Im surprised by such small agency turnout given that performance at retail is the ultimate measure of success for any marketing campaign. Isnt this where the rubber meets the road? Its all about moving cases and gaining market share — or getting fired for not delivering.

Maybe agencies dont care about the tremendous impact Latinos are having at retail, but their clients certainly do, evidenced by the largest crowd Ive seen at this conference in the past five years. The three-day conference included a keynote speech from former Mexican President Vicente Fox who called for a renewed vision of NAFTA and an intimate conversation with Latin hip-hop sensation Pitbull, who shared his perspective on how he connects with his fans, whether they be Latinos or not.

But for me, the most interesting presentation came from Jose Luis Prado, the recently appointed president of Quaker Foods and Snacks North America, PepsiCo. After a 17-year career at PepsiCo, including most recently running and successfully growing their Gamesa business in Mexico, Mr. Prado moved to Chicago six months ago to take charge of the Quaker Foods business.

PepsiCo is one of those companies that early on saw the value of marketing to its ethnic consumers and was one of the leaders in setting up a strong multicultural practice in the late 1990s. Over the last two decades, however, internal support for multicultural marketing has suffered its ups and downs — resulting in very inconsistent voice and presence with its most important consumers. Its hard not to wonder that, if it had been consistent with its multicultural marketing practice — like McDonalds or P&G or Kraft have been — would be in such a tough spot now. But it seems like the tide is turning at PepsiCo.

Mr. Prado spoke about how the company wanted to go to market with “an open mind” and, through innovation, bring Latino flavors to mainstream products like Gatorade. In addition, Quaker is catering to Hispanic tastes directly by playing off of the tradition of aguas frescas with Doles recent launch of new fruit juices under the “sensacion natural” line.

Bottom line: Its all about foot traffic, and retailers know better than anyone who is shopping their stores and what products move or dont move. The fact that so many showed up at this conference to learn how to win with the Latino consumer is a testament to their changing perceptions.”

Due to cultural factors and values, Hispanics are buyers of premium products who dont compromise much when it comes to providing for our larger families,” wrote Cesar Melgoza, CEO of Geoscape, in his recent article Are Retail Giants Sleeping on Hispanic Opportunities?”

If one measures the lifetime spending potential of an average household from today to its projected lifetime, you will see that Hispanic households will actually spend more, not less, than White, non-Hispanic households, to the tune of about 48% on food consumed at home and away, 82% on apparel and 22% on personal care products,” he added. This is due, of course, to Latinos being younger and having larger households.

Mr. Prados experience runs deep in Latin America and Spain, which will certainly help him understand the Latino consumer in the U.S. A quick look at the array of products in the Quaker Foods portfolio that are currently not being marketed to Latino consumers makes me think that Indra Nooyi knew exactly what she was doing when she named Prado to his most recent post. Forget the cola wars and get ready for the battle of the Latino basket.

via Get Ready for the Battle of the Latino Basket | The Big Tent – Advertising Age.