There are a projected 48 million Hispanics residing currently in the United States. By 2020, that number is expected to grow to 60 million, according to the U.S. Census. There are over 12 million Hispanic households that have wielded purchasing power of a predicted $1.2 trillion by 2011, according to the University of Georgia’s Center for Economic Growth. The growth of Hispanic purchasing power has grown 80% more, from 2000 to 2007, than the rest of the population. Businesses are seeking a way to capitalize on the economic growth of the Hispanic community.
Each year 7.6 million Hispanics purchase items on the web. An average of $1200 is spent per Hispanic shopper on the web each year. The Hispanic community is a frequent user of the internet. Online Hispanic users shop for financial products, share photos, and files, according to Forrester Research. The Hispanic population increased their shopping online by 6.9 percent in 2009. Given these statistics, the Hispanic market is a potential group for growth.
Hispanics as a Majority in some States
Thirty one states in America do not possess a community with a majority Hispanic population. However, there are some communities in California, Arizona, and Texas that are majority Hispanic. San Antonio, TX is the largest city in the United States with a Hispanic majority. El Paso, Texas has the highest percentage of any major United States city at 76%. The small city of Huron, California is 98.27% Hispanic. Both Los Angeles, California and Houston, Texas have a large Hispanic population. However, neither boasts a majority.
Importance of Hiring Hispanics to Cater to Hispanic Market
Businesses launching marketing campaigns should be aware of the markets that wield purchasing power and market products to those communities. Targeted marketing allows businesses to maximize their marketing dollars. Marketing to groups that are more likely to purchase will increase a business’s return on investment. Hispanic marketing is wise since this group wields nearly $1.2 trillion collectively.
Hispanics still primarily speak their native language. Nearly 56% of the Hispanic community speaks only Spanish at home. Another 26% speak both Spanish and English at home on an equal basis. Hispanics focus on family and heritage. They also focus on sports, as well as, celebrity figures with charismatic personalities. Therefore, businesses should hire individuals who are bilingual and can relate to the community.
Should Marketing Agencies have Hispanic Market Capabilities?
Agencies that possess Hispanic marketing will be more likely to capture the spending power of the Hispanic population. However, despite language barriers Hispanics are still purchasing products. Hispanics are more likely to relate to ads focused on family values. Spokespeople from the Hispanic community may also encourage Hispanics to spend more on various products in the United States. Marketing agencies with a specialization in the Hispanic community will be more likely to encourage Hispanics to spend their money.
Hispanic marketing is a growing business. Businesses market online to obtain access to millions of users worldwide. Since the Hispanic community comprises a large portion of online purchasing, marketing agencies may want to expand to include marketing campaigns that cater to Hispanics.