How to Market to Hispanic Consumers in 2022July 22, 2022
In order to understand how to market to Hispanic consumers and how it can help your small business, we first need to take a look at the Hispanic community as a whole. The Hispanic population is one of the fastest growing demographics in America, with an estimated purchasing power of $1.7 trillion in 2021. That’s a trillion with a T!
In order to put that number into perspective for you, consider this: the total spending of all U.S. households in 2015 was just under $120 trillion. So not only does the Hispanic market have massive potential for growth, but they’re also currently spending a lot of money on goods and services!
And if that wasn’t reason enough to stress the importance of marketing to Hispanic consumers, then consider this: Hispanic market differ from other demographics in a few key ways.
For example, Hispanics are more likely to purchase products and services impulsively than the average U.S. consumer. They’re also more brand loyal than most ethnic groups, so once you’ve won their business it can be tough to lose it!
So what does this mean for small business owners?
It means that if you want to tap into the Hispanic market, then your marketing efforts should focus on getting your product or service in front of them as quickly as possible.
You’ll need to create ads and culturally relevant content that appeal to their unique diverse Latino culture, and make sure that you’re actively engaging with Hispanic communities online and offline.
There’s no one-size-fits-all approach to Hispanic marketing, so make sure you tailor your strategy to the specific Hispanic community you’re targeting. Don’t assume all Latinos are spanish speaking!
The bottom line is this: Hispanics are a powerful consumer group that can’t be ignored. If you want to continue growing your small business, then start marketing to Hispanics today!
How do you attract Hispanic customers?
The U.S. Hispanic market is the largest minority group in America, comprising 20% of the nation’s population. Their total consumer purchasing power in 2021 was an impressive $1.7 trillion dollars!
If you want to tap into this profitable influential audience then your company must implement a targeted marketing strategy that proves value to Hispanic consumers and business owners alike.
To do so, you need to understand their unique identity beyond just race, language and heritage. There are educational, cultural and generational differences between Hispanics living in the U.S. than elsewhere around the world which can affect their buying behaviours.
You also need to build trust with them by engaging with Hispanic communities online and offline throughout the consumer journey so they feel empowered enough to choose your products or services.
Latinos make for great customers, and how their purchasing habits differ from other groups. Companies often focus solely on the general consumer group and overlook the Hispanic market.
It’s important to remember that the U.S. Hispanics are an essential consumer group for small business owners to:
- Understand how they can take advantage of this powerful Latino demographic
- Reach them through trusted marketing channels that build brand loyalty over time
- Eliminate the negative stereotypes to create trust barriers and builds brand loyalty overtime.
What is an effective marketing strategy for the Hispanic market?
After working 15 years in the U.S. marketing industry, it is clear to me that marketers still have a lot of questions when it comes to selling advertising into this growing market. I’ve been asked these same question since day one from clients trying to understand how Latinos buy, what they want from potential brands, and do they consume language in English or Spanish?
In my experience, understanding the audience and knowing where your product fits within their lives is key in order for a company or brand to successfully connect with them. With almost 60 million strong in the United States alone, this group represents an enormous opportunity for any marketer looking to sell his or her products or services.
So let’s explore below to answer some of those pressing questions.
How can I reach Hispanics?
There are several media types that companies can use to connect with them. You can advertise on traditional media such as TV, radio or print publications.
- TV is by far the most powerful of all three options; however, due to cost issues and lack of ad time it may be an option that does not makes sense for some companies.
- Radio reaches Latinos during their daily commute or while they’re working around the house. It’s also good for small businesses that do not have a large advertising budgets but would like Hispanic consumers to hear about their products in English and Spanish.
- The printed word; magazines provide advertisers with unmatched ad space at affordable prices plus they reach both men and women which makes them extremely valuable in this market. I recommend multiple media outlets (radio/TV/Print) for your marketing dollar to reach the maximum number of Hispanics.
Key data insights and research reveal that more than 40% of US Hispanics are immigrants, about 25 million people, making it the largest immigrant community in this country.
These consumers have come to our shores looking for a better life and they bring with them an emphasis on family, school, career advancement and good entertainment. Generally speaking this is a Spanish speaking first community.
Hispanic adults enjoy strong ties with their native countries where many visit or maintain property ownership.
There are literally millions of people outside the United States that are still eager to buy products from their countries of origin which makes exports very popular among companies that sell these items.
Because Hispanics tend to be very brand loyal, once they find a product that works for them, they’re apt to continue buying it as long as the price is right.
A good example of this loyalty is that Latinos purchase more Pepsi products than non-Hispanics and do so at a higher rate per capita.
How do I sell to the Hispanic market?
The first thing you need to understand about selling to Hispanic markets is that this group of people are very careful buyers and being made aware of the cultural diversity that exists.
The majority of the U.S. Hispanic population belongs to several ethnic groups, spanning across North America and Latin America.
The Spanish-speaking countries in South America consist of about 20% while Central American countries account for approximately 15%. Mexicans make up more than 60% of this population however it’s important to note they also include Puerto Ricans, Cubans, Dominicans and so on.
So remember to target the Spanish dialect as this is often a missed opportunity when reaching this audience.
They may share a common language but they come from different cultural backgrounds which makes all Hispanics unique in their own right. It’s crucial to understand each group’s value system before developing your approach with them.
Although Hispanic culture is far from homogeneous, there are some general principles marketers can follow if they’re reaching out to this population.
First of all, any company that is interested in selling its products or services to Hispanic markets needs to understand that they may not have the same kind of purchasing power as mainstream consumers. Hispanics do not earn as much money and on average they control only a small amount of financial resources.
Secondly, if you plan to advertise on Spanish-language media outlets, remember Hispanics don’t like to be sold; they want information. A good rule of thumb is to provide them with unbiased facts (i.e., educational campaigns) instead of trying to sell anything during your commercials.
Lastly, make sure you don’t forget the importance of family in Hispanic culture. Despite earning less money than mainstream consumers, Hispanics make it a priority to buy things for their family and extended relatives.
This makes the Hispanic holiday season very special; they spend more during this time period than any other group of people.
What are some of the biggest mistakes marketers make when targeting the U.S. Hispanic market?
Small business owners and marketers tend to make the following mistakes in their marketing campaigns:
- Hispanic vs Latino: There is a big difference between Hispanics and Latinos. Hispanic refers to the Spanish language (Mexican dialect of Spanish as an example), while Latino refers to the geography . It is also okay to refer to this audience as Latino consumers within your marketing.
- Not targeting Mexican Americans: A majority of Hispanic Americans are Mexican American, so it’s important not to forget this large population when marketing to Hispanics. However, it is also important to understand the different aspects of the Hispanic identity and cultural differences.
- Focusing on Spanish-Only Ads: While many Hispanic consumers are Spanish-speakers, there are also plenty of bilingual and English-dominant Hispanic consumers. So don’t assume everyone speak Spanish as their primary language. You may even use Spanglish if you use it in the right context.
- Using Google Translate for their advertising: This creates risk of offending potential new customers.
- Ignoring digital marketing: A significant number of Latino shoppers use digital media when conducting research on products and services. Make sure your websites and social media platforms are optimized, and have a Spanish option when reaching out to Hispanic shoppers.
- Ensure your marketing budget also includes a mobile first attitude, per the Pew Research Center, Hispanics over-index in mobile video consumption.
- Targeting all Hispanics the same: Just like any other population, Hispanic consumers differ in their interests, needs and behaviors.
How can we engage the Hispanic community?
Consider generational and cultural gaps while going to market to Hispanic consumers.
The Hispanic culture integrates traditions in the U.S. as much as any other culture, but Spanish integration can vary depending on a large Hispanic market.
Here are some marketing tips you should consider for marketing campaigns targeting the Hispanic online consumers:
- Make sure your websites are mobile enabled and ideally have a language preferences of English or Spanish
- Deploy your digital marketing in most media platforms including Facebook, YouTube, Instagram, Google AdWords and even TikTok
- Data research reveals that social media sites are successful when brands reflect the values of Hispanic consumers thus increasing their reach
What are some tips for small businesses when implementing good marketing strategies to Hispanics?
- Start by targeting your local Hispanic consumer. This will allow you to better understand the cultural differences of this target audience and create more relevant marketing materials, ads and content that acknowledges the cultural differences
- Make use of your marketing efforts with U.S. Spanish language marketing materials, ads and content – but don’t forget about bilingual Hispanics as this will make up the vast majority of our Hispanic target audience
- Engage with Hispanic communities online and offline, through social media, events, etc.
- Tailor your business marketing strategy according to the unique Hispanic regions you’re targeting. Not all Hispanics are the same and are only Spanish speakers
- Leverage data insights to understand how effective your campaigns are performing
- Think outside the box! You don’t necessarily need the help of U.S. Hispanic agency to target the Hispanic super-consumer. You simply need to integrate your current strategy with relevant Hispanic content.