Companies Pursue Growing Hispanic & Latino Market With Ad Dollars
May 13, 2012 2:27 pm Comments Off on Companies Pursue Growing Hispanic & Latino Market With Ad Dollars
April 18, 2012: Source MarketingCharts.com
US advertiser spending in almost all traditional mediums targeted at Hispanic audiences (Spanish advertising mediums) grew between 2010 and 2011, reflecting the potential of this young and growing market, which is forecast to reach $1.5 trillion in buying power by 2015,according to [download page] an April 2012 report from Nielsen. Total advertising spend on Spanish advertising mediums was more than $5.7 billion in 2011. Spanish language network TV made up the greatest share of spend, at 57%, and grew 13% year-over-year. Spanish spot TV was the next-largest medium, at 20% of total spending, though advertising on this medium increased just 1% year-over-year.
Still asking yourself what the value is of a quality Spanish Language Domain in reaching the U.S. and global Spanish speaking market? Check out what one famous multinational company is doing. Unilever, the world's third-largest consumer goods company measured by 2011 revenues (after Procter & Gamble and Nestlé) with a market cap of nearly $100 billion and the world's largest maker of ice cream, is using its Spanish Language Domain and Spanish Language Website offline on 'Sabado Gigante' and going after the worldwide Spanish speaking population big time.
With their flourishing numbers in the U.S. and their love of fresh fruits and vegetables, members of the Hispanic / Latino community make ideal produce department customers. The U.S. Hispanic population has skyrocketed to over 50 million consumers and their numbers have expanded well beyond the Southwest and Florida.
New York is home to 2.3 million Hispanics who account for nearly 30% of its residents, as of 2010. New York’s Hispanic population is more diverse than that in other large cities: the largest share is Puerto Ricans (34%), followed by Dominicans (25%). In LA and Chicago, the largest share is Mexicans (69% and 73%, respectively).
Hispanic population in the U.S. is growing at three times the rate of the overall population. A number like that is a marketer’s dream. I have heard marketers frequently say, “A data-driven decision is always a good decision.” I don’t necessarily agree with that all the time – insights, innovation, and a healthy measure of gut certainly play a large role in my own marketing decisions, along with paying attention to regular data-oriented updates on what’s happening in Denny’s demographics and market segments.
The Hispanic & Latino population in the U.S. is growing at 3x the rate of non-Hispanic whites and represent 35% of all population growth online in the U.S. (more than double their representation of the total population which is 16%). The chart below emphasized this. 32.2 million Hispanics are currently online. This will reach 42 million by 2015.
There’s a tendency in general market advertising to think of minority advertising as a way of ghettoizing an audience. But when it comes to the land of digital consumers, author Giovanni Rodriguez says the Latino segment is more of a high-end neighborhood. With roughly 10 percent of U.S. buying power, Latino marketing spend, he figures, should be around $36 billion. The number today, though, is only $5 billion.
In a demographic shift touching every corner of the U.S., affecting all those cultivate the Latino market, the Hispanic market and the Spanish speaking market, the Latino population grew faster than expected and accounted for more than half of the nation's growth over the past decade, with the group's increase driven by births and immigration. The Latino market certainly deserves greater attention than many businesses give it. This article underscores the value of this demographic, market and voting block now and as we move into the future.
"P&G announces the launch of “Orgullosa,” an initiative created to celebrate, empower, and fuel Latinas’ accomplishments and dreams. The initiative, which carries the name of the Spanish word for “proud”, has as its centerpiece Orgullosa.com, a virtual community through which Latinas can engage in a dialogue with one another that also provides them beauty, household, and lifestyle advice to simplify their lives.
"With the Census Bureau counting nearly 25 million Latin women in the United States, marketers and media companies have started getting excited about the potential to reach them.
Tina Fineberg for The New York Times Michelle Herrera Mulligan, left, the editor of Cosmopolitan Latina, which will be introduced in May, with Donna Kalajian Lagani, right, the senior vice president and publishing director at Cosmopolitan.
Michelle Herrera Mulligan, left, the editor of Cosmopolitan Latina, which will be introduced in May, with Donna Kalajian Lagani, right, the senior vice president and publishing director at Cosmopolitan.