Every 30 seconds, a Latino turns 18 years of age in the United States. This remarkable statistic highlights just how explosive the U.S. Hispanic market has become, and why advertisers simply can no longer afford to ignore it. According to the Association of Hispanic Advertising Agencies, there are 52 million Hispanics in the U.S., who now represent one in every six Americans, and encompass the largest minority segment in the country. Their estimated purchasing power is an impressive $1.2 trillion, a number that is estimated to increase to $1.5 trillion by 2015 according to the same group. Hispanic owned businesses are projected to grow to 3.16 million this year reports Geoscape. And, it is clear that these impressive growth trends will continue unabated into the future.
The 10th Annual Hispanic Fact Book published by Advertising Age in July offers more compelling reasons for advertisers to pay attention to this burgeoning marketplace. To wit:
- U.S. Hispanic media spending has grown from $2.8 billion in 2003 to nearly $8 billion in 2012.
- The largest spenders in Hispanic media span virtually every category including automobiles, packaged goods, telecommunications, beauty and cosmetics, financial services, and retail.
- Hispanic tastes have transcended their own demography so that they are reflected in the broader marketplace.
- This holds true for media usage including the most popular TV shows (The Voice, The Big Bang Theory, Modern Family) and social media platforms (Facebook, LinkedIn, and Twitter) that are reflective of the broader U.S. population.
However, one of the most notable shifts is that the U.S. Hispanic marketplace actually consists of two distinct markets. While there is still a large population of Spanish-speaking immigrants, in the last decade the fastest growing segment of the U.S. Hispanic population has shifted from such immigrants to U.S.-born Hispanics. This latter group has been described as ambi-cultural and able to easily straddle both the worlds of Spanish and English languages. Still, those that predominantly speak Spanish remain a force to be reckoned with for marketers of all stripes, including those who advertise to consumers on a direct basis.
In fact, in the Ad Agency report, among the Proctor & Gambles, McDonalds, and AT&T’s of the advertising world, one name stands out most remarkably: Guthy-Renker. The privately held corporation that markets ProActiv and a portfolio of beauty products to consumers on a direct basis via infomercials, short-form commercials, and the Internet, ranks 12th among the 40 largest spenders in Hispanic media. Year-to-year growth in such media spending for the company is up 125% and estimated to be over $75 million. That’s more than General Motors, Kraft, and Walmart. And that means that the Hispanic marketplace is contributing significantly to the company’s estimated topline sales of $1.3 billion annually in the personal care category.
In Guthy-Renker’s case, they produce culturally sensitive commercials directed specifically toward each of the segments of the U.S. Hispanic market outlined above. Consumers can order online or by calling a toll-free number. While there are many excellent boutique Spanish-speaking call centers both within and outside of U.S. borders, marketers such as Guthy-Renker, who produce large bursts of calls, use call routing to send inbound inquiries to multiple telemarketing centers to ensure they are answered quickly and efficiently.
According to a recent article in Forbes magazine written by Glenn Liopis (click here to read), the Hispanic marketplace represents “the last true growth opportunity.” Yet, the author goes on to state that many marketers merely dabble in the market or fail to commit the resources and talent required to succeed long-term. Liopis suggests that sound data and analytics are perhaps the most critical success factors. Call tracking data, which helps provide key demographic and psychographic information, in addition to providing the ability to record and listen to consumer calls, can be vital tools that help a marketer determine how to best optimize their offer and scripting.
With all of the potential that the U.S. Hispanic marketplace represents, advertisers would be well served to take a good hard look at how their products and services can be marketed to this complex, yet flourishing group. There are many excellent advertising agencies and supply chain partners ready to help them establish a beachhead among this key American demographic.
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As a Director for the Hispanic Market with Dial800, Eddie Treizman focuses on helping businesses generate “More Calls and More Sales” while increasing profits and reducing lead generation costs. Among his clients are primarily Marketers and Advertising Agencies (Multicultural or General Market agencies) that target Hispanic consumers. Eddie is a big believer in the power of networking to develop partnerships, and he seeks to uncover synergies and opportunities that can create value for all the parties involved that serve an advertiser or media channel.Eddie Treizman can be reached at (800) 248-2166 or at http://dial800.hispanicmarketadvisors.com