At Advertising Week 2009, the Multicultural Council of the Advertising Research Foundation presents "The Time is Right: On the Path to Multicultural Business Growth."
The Advertising Research Foundation is focusing on the business issues acting as an impediment to the growth of Multicultural Advertising and Marketing.
4. 4
Don’t turn off your cell phones!
Follow The_ARF Ad Week events on
Twitter at #arfadweek
5. Upcoming ARF Event – Industry Leader Forum
Winning with Social Media
November 3, 2009 • New York Athletic Club
Social media has provided brand advertisers and marketers,
media and agencies with new ways of listening to
consumers. Listening leads the way to engaging in
conversations and uncovering new actionable insights.
Chris Brogan, President of New Marketing Labs, co-author of The New York
Times Best Seller Trust Agents, a blog in the top 10 of the Advertising Age Power 150
and in the top 100 on Technorati keynotes
Google shows how to use search as a predictive listening tool
IBM presents a model for integrating listening into an organization
ESPN demonstrates how listening engages and serves fans
Panelists from Crispin Porter + Bogusky, Meredith Corporation and Motivequest plus networking,
breakout sessions, meet the speakers and more!
6. Upcoming ARF Events
TO FIND OUT MORE AND REGISTER – WWW.THEARF.ORG
Online Research Quality Council
A Special Meeting
SEPTEMBER 29, 2009
Time Warner Building, NYC
ARF Member Day
OCTOBER 22
ARF Headquarters, NYC
DECEMBER 4, 2009
Time Warner Building, NYC
360 Measurement Day Workshop
9. 9
The Time is Right
To get on the Path
to Multicultural Business Growth
10. 10
Multicultural Consumers Are A Large
and Growing Population
Minorities, now roughly one-third of the U.S.
population, are expected to become the majority
in 2042, with the nation projected to be 54% “minority”
in 2050.
They are the consumers of the future
Source: U.S Census Press Release, 2008
11. 11
Cohort Ratios
The population is becoming more diverse.
Source: From speech by Michael Powell, October 23, 2003.
1.5:1Age 10
2:1Age 40-under
5:1Age 70-plus
13. 13
Diversity will be the “new norm”
Multicultured consumers
are the customers of the future.
14. 14
Multicultural Consumers Have
Considerable Dollars To Spend…
20509.1Asian
72,373.2Total Multicultural
15951.0Hispanic
16913.1African American
Country Ranking2008 Buying Power
(billions of dollars)
1 United States 13,751.4
2 Japan 4,384.2
3 Germany 3,317.4
4 China 3,205.5
5 United Kingdom 2,772.0
6 France 2,589.8
7 Total Multicultural 2,373.2
8 Italy 2,101.6
Multicultural Market would rank as
the 7th Largest Global Economy
Source: The Multicultural Economy 2008, Selig Center for Economic Growth; 2007 World Development Indicators Database, World Bank
15. 15
& They Have A Strong Affinity
To Brands…
It’s risky to buy a brand you are not familiar with.
I like to buy brands that make me feel I’ve made it.
AA
61%
Hispanic
61%
AA
58%
Hispanic
61%
Once I find a brand I like, it is very difficult to get
me to change brands.
The brands you buy tell a lot about the type of
person you are.
AA
70%
Hispanic
66%
AA
51%
Hispanic
52%
Source: 2009 Yankelovich Multicultural Monitor
18. 18
The Proof Is In The Pudding
In total, ad revenue targeted towards Hispanic in Spanish-
language was essentially flat compared to 2007. Since the
recession spending is estimated to be down by -14%.
Source: The Nielsen Company
-0.5%$5,760.1$5,780.7Total
-7%$103.1$110.3Local Newspaper
10%$179.7$164.1National Magazine
-12%$532.9$608.9Spot Radio
-3%$1,619.0$1,669.6Spot TV
3%$3,325.4$3,233.9Network & Cable TV
Advertising by Medium
19. 19
The Proof Is In The Pudding
Advertising toward African Americans declined in 2008 from
2007. Post recession estimates suggest the decline has at
least doubled.
Source: The Nielsen Company
-9%$1,965.9$2,754.1Total
-42%$94.7$164.4Network TV
-9%$112.3$124.0Syndicated TV
3%$497.6$484.6Cable TV
-11%$530.8$597.5National Magazine
-7%$730.6$783.6Spot Radio
Advertising by Medium
20. 20
The Advertising Research Foundation
(ARF) is focusing on the business issues
acting as an impediment to the growth of
Multicultural Advertising and Marketing
22. 22
Strategic Structure
Goal / Mission
To establish the ARF as the premier visionary organization that provides
a scientific approach for resolving contemporary multicultural marketing
problems.
Marketing Objective
To position the ARF as the thought-leader for incorporating multicultural
consumers into “mainstream” marketing and advertising.
Marketing Strategy
To develop ARF initiatives that respect and understand the
contributions, opportunities and importance of cultural consumers to the
future business environment.
24. 24
Strategic Tactics
Develop a 3-year program that:
(a) Shows that it is “good” business to invest marketing
dollars to specifically address multicultural segment
opportunities.
-- Share Point Analysis
-- Opportunity Gap Analysis
(b) Establish that the goal is to deliver relevant
communications not “over-delivery”.
25. 25
Strategic Tactics
(c) Develop mathematical models that confirm the value
of multicultural consumers and allow marketers to
determine the ROI of their targeted efforts
-- Measurement “umbrella” issue
• Need uniformity of measurement by vendors
• Better measurement by vendors
• Research vendors should be “leaders” not just ‘order
takers’
26. 26
Strategic Tactics
(d) Illustrate ‘successful’ efforts with great case studies
of brands that have done it “right” and seize the
opportunity
-- Need case studies with great results
(e) Structure an ARF Multicultural Summer Intern
Program for Juniors in college and first year
graduate school students to replenish, rejuvenate
and refresh the cultural resources needed to “fuel”
cultural growth by marketers and advertisers.
27. 27
Advisory Board
Yvonne Montanino – Unilever
Daniel Bloom – Bank of America
Loida Rosario – DePaul
University
Ed Martin – Hershey's
Rodolfo Rodriguez – General
Mills
Dr. Jerome Williams – University
of Texas at Austin
To guide, inform and direct the development
of our program elements we will have an
Advisory Board. It’s members are:
Millie Carrasquillo –
NBC Universal, Telemundo
Don Williams – Harvel
Esther Franklin – Starcom
MediaVest Group
Ramon Portilla – Walmart
Andrea Fant-Hobbs – Verizon
(T)
(T) Denotes Tentative
28. 28
Introduction to Measurement
Issues and Prior Council Work
Kevin Brockenbrough
VP, Associate Director – Account Planning
David Burgos
VP, Multicultural Practice
29. Multicultural IS Mainstream
Why multicultural?
1 in 3 US residents is of multicultural origin
• 40% among 0-17 y.o.
2+ trillion combined purchasing power
• 21% of total US
Multicultural
Source: US Census
LAX
65
MIA
61
HOU
56
SFO
50
NYC
48
ATL
44
CHG
42
DET
30
SEA
23VEG
44
DEN
31
Growth and influence of multicultural consumers is not limited to largest metropolitan areas any more…
30. Multicultural Super Council
Mission
To uncover the real business opportunity in multicultural
marketing and set the path for future improvements in
multicultural advertising research
31. Multicultural Super Council
The Advisory Board is made up of high level marketing leaders with a commitment to
‘multicultural as mainstream’. The Advisory Board will supply the general strategic direction,
influence, and leadership needed to fulfill the mission of the council. They will meet on a
regular basis in conjunction with the MC Council meetings – 3-4 times a year (in the morning
prior to the scheduled council meetings). There may also be additional opportunities to
convene during ARF events, such as the Annual and/or Audience measurement
conferences.
The Steering Committee is an action committee involved in research, outreach, and
education. Their focus is on the technical aspects of researching, understanding, and
advancing methods, data, plans, training, and models. In conjunction with the Advisory
Board, they integrate strategy and tactics; marry theory and practice; contribute to standards
setting, and do relevant research. Depending on the level of activities they pursue, this
committee, or special subcommittees created for a specific purpose, could meet 6-12 times
a year.
33. The research issue
We are not being consistent in the way we
define multicultural segments
Our definitions may not be the most
appropriate from a marketing perspective
Definitions Sampling frame
We are not being consistent in the way we sample
multicultural segments
Our data collection methods may be under‐
representing multicultural markets or sub‐
segments within them
35. The business
opportunity
Definitions Sampling frame
Focus and Priorities
Clearly articulate the opportunity, present and
future, with and for advertisers
Work with advertisers, agencies and research companies to
ensure that measurements are relevant, accurate,
consistent and fully representative of the multicultural
opportunity – best practices
37. Outreach and knowledge sharing
• Focus on strategy, issues, concerns and opportunities
(Ogilvy Awards, ANA, etc.)
• Promote information sharing among members and
industry leaders – council meetings
38. 38
Marketing to Multicultural Audiences
Nancy Bates
Secretary of the Federal Committee
on Statistical Methodology
United States Census Bureau
39. 39
Nancy Bates and Mary Mulry (U.S. Census Bureau)
Joe Panzarella, Vita Harris, Darlene Billia, Tanya White (DraftFCB)
Linda Jacobsen (Population Reference Bureau)
Other cast of thousands….
Advertising Week
Multicultural Advertising Council
Segmenting the Population for the
2010 Census
September 22, 2009
40. 40
The Census 2010 Challenge…
• The campaign
• The “product”
• The target audience
• Timing
• Truth in advertising
• A little help from friends…
41. 41
Fundamental Research Question
How to segment entire US population according
to mailback propensity and then….
take that knowledge and apply it to the
marketing and advertising world?
Audience segmentation (WHO/WHAT/WHERE)
Overlay consumer data (MEDIA CONSUMPTION)
Barriers and motivators survey (WHY)
42. 42
Attributes of the Hard To Count
Housing
Factors:
• Percent Vacant
• Percent Not Single
Unit Structure
• Percent Renter
Occupied
• Percent Crowded
Occupancy
Social and Demographic
Factors:
• Percent Not Husband/Wife Households
• Percent Household with no phone service
• Percent Not High School Graduate
• Percent with Public Assistance Income
• Percent Unemployed
• Percent below poverty level
• Percent Linguistically Isolated Households
• Percent Moved into Unit (1999-2000)
43. 43
What do HTC populations look like?
• Unique factors underlying group of variables
• Principal components factor analysis using
Planning Database
• Input the 12 hard-to-count (HTC) variables
• Yielded 3 uncorrelated factors
44. 44
Underlying constructs of HTC areas
6%7%11%Percent of all tracts
67%67%64%
Average Census 2000
mail return rate*
*overall avg.=75%
crowded housing
ling. isolation
< H.S. education
Multi-units
Renters
non-spousal
moved last year
• Vacant housing
• Poverty
• Unemployment
• <H.S. education
High Factor- Loading
Variables
Factor 3
High density
w/linguistic isol.
Factor 2
Unattached,
Single, mobiles
Factor 1
Economically
Disadvantaged
45. 45
How to segment all populations?
• Mutually exclusive groupings of objects
• k-means cluster analysis using PDB
• Input the 12 hard-to-count (HTC) score
variables
• Yielded 8 clusters
Several iterations
Looking for constructs identified previously
47. 47
Characteristics of the 8 clusters
Advantaged homeowners
single family; spousal; low mobility; suburban;$69K; 85% white
All around average (owner skewed)
suburb & rural; $45K; 80% white
All around average (renter skewed)
more urban; fewer spousal; $45K; 69% white
Young/mobile/singles
renters; high ed; few children; urban; $40K; racially diverse
Economically Disadvantaged (owner skewed)
urban & rural; single mothers; $26K; 49% Black; 1/3 live alone
Economically Disadvantaged (renter skewed)
urban; female-headed; $22K; 59% Black; 23% Hispanic
Ethnic enclave (owner skewed)
43% foreign born; spousal; 50% w/children; $35K; 61% Hispanic
Ethnic enclave (renter skewed)
62% foreign born; low ed; younger; urban; $32K; 59% Hisp; 11% Asian;
34% ling. Isolated
* Source: 2006 American Community Survey
48. 48
Distribution of Occupied Housing Units by Cluster
36%
16%
3%
26%
3%
6%
2%
8%
Avg I (own)
Avg II (rent)
Econ Dis I (own)
Econ Dis II (rent)
Eth Enc I (own)
Eth Encl II (rent)
Mobile sing
Adv. Homeown
52. 52
HTC Audience Insights – Cluster
Characteristics
-61% Hispanic
-Primarily age 18-49
-1st generation skew
(43% foreign born)
-Urban & rural tracts
-Spousal skewed
-50% w/children
-Linguistically isolated
-59% Hispanic
-11% Asian
Primarily age 18-49
-Heavily skewed 1st
generation
(62% foreign born)
-Lower education
-Urban skewed
-59% Black
-23% Hispanic
-Primarily age 18-49
-Female-headed
household skewed
-Urban skewed
- $22K income
Ethnic Enclave I Ethnic Enclave II
Economically
Disadvantaged II
Source: American Community Survey: 2006; SMRB Summer 2008
53. HOBBIES/SPORTS/INTERESTS
Index
SOCCER 187
BASEBALL 145
BASKETBALL 132
FOOTBALL 110
THEME PARKS 104
PROVIDE MY KIDS WITH THINGS I
DIDN’T HAVE (117 INDEX)
RELY ON MAGAZINES TO KEEP ME
INFORMED (127 INDEX)
LIKE OTHER PEOPLE TO THINK
I’M FINANCIALLY SUCCESSFUL
(103 INDEX)
WILLING TO GIVE UP
FAMILY TIME TO ADVANCE
(INDEX 163)
RADIO IS MAIN MY SOURCE OF
ENTERTAINMENT (172 INDEX)
I PREFER TO
SHOP WITH MY
FAMILY (130
INDEX)
PSYCHOGRAPHICS
MEDIA SNAPSHOT
7.79 MAGAZINE ISSUES IN LAST MONTH (79 INDEX)
29.6 HOURS OF TV LAST WEEK (108 INDEX)
10 NEWSPAPER ISSUES LAST MONTH (62 INDEX)
USED THE INTERNET 27 TIMES LAST MONTH (51 INDEX)
ETHNIC ENCLAVE I MEDIA QUINTILES
101
93
88 86
72
46
29
RADIO CABLE TV OUTDOOR
MAGAZINES TV NEWSPAPERS
INTERNET
EthnicEnclaveI
TotalOccupiedHousingUnits3%represents3.4
millionHH’s
MailReturnRate70%,HTCScore63
54. MEDIA SNAPSHOT
10.12 MAGAZINE ISSUES IN LAST MONTH (102 INDEX)
35.2 HOURS OF TV LAST WEEK (128 INDEX)
14 NEWSPAPER ISSUES LAST MONTH (88 INDEX)
USED THE INTERNET 32 TIMES LAST MONTH (59 INDEX)
ENJOY WATCHING KIDS TV
SHOWS WITH MY KIDS (132
INDEX)
RARELY SIT DOWN TO A
MEAL TOGETHER AT
HOME (156 INDEX)
I’M NO GOOD AT
SAVING MONEY (129
INDEX)
I FEEL VERY
ALONE IN THE
WORLD (128
INDEX)
ONLY WORK AT CURRENT JOB
FOR THE MONEY (116 INDEX)
OFTEN NOTICE THE ADS
ON:
-TRAINS (371 INDEX)
-BUSES (251 INDEX)
-BUS STOPS (292 INDEX)
PSYCHOGRAPHICS
HOBBIES/SPORTS/INTERESTS
Index
DANCE (Performance) 226
COMEDY CLUB 174
BICYCLING 169
LIVE THEATER 146
AEROBICS 143
BASEBALL 141
BASKETBALL 127
ECON. DISADV. II MEDIA QUINTILES
164 159 155
126
100
61
53
CABLE TV RADIO MAGAZINES
NEWSPAPERS TV INTERNET
OUTDOOR
EconomicallyDisadvantaged
II
TotalOccupiedHousingUnits3%represents3million
HH’s
MailReturnRate58%,HTCScore92
55. 55
Research Question: why?
• From segmentation we know who, what, how,
where but… not why.
• What are the motivators to participate? The
barriers?
• What are the different mindsets toward Census?
• What are the profiles of the mindsets?
• What message might motivate the mindsets?
• What are insights and tactics for reaching each
mindset?
57. 57
Feel part of their
community
81%
Unaware of
Census
100%
Non-White
48%
Non-US born
42%
Unacquainted 7%
Peripheral
• Never heard of the Census,
know nothing about it at all
• Low community stakedness
and civic participation —
Least likely to indicate
participation in the Census,
• Ethnic, majority minority
(Hispanic, Asian, AI, Black)
• Almost half non-U.S. born
• Most speaking in-language
at home
• Largest household size (4+
people), most likely to have
children in household
• least educated, lowest
income
58. 58
Insulated 6%
Indifferent
Motivated by
individual
benefits of
Census
88%
Female
68%
High school or less
56%
• Have heard of the Census
but “Don’t know” much—
low familiarity
• Question impact of Census
because they haven’t seen
results in their neighborhood
• Ethnic (Hispanic, Black,
American Indian, other)
• Many don’t speak English at
home (mostly Spanish)
• Less likely to have children
• Downscale: low income
($25K or less, low education
(more than half HS or less)
59. 59
HISPANICAUDIENCE
REACH
MESSAGING Head
Nodders
Head
Nodders Cynical FifthCynical FifthLeading EdgeLeading Edge InsulatedInsulated UnacquaintedUnacquainted
ETHNIC
ENCLAVE II
AAA I
ETHNIC ENCLAVE I
ADV HOMEOWNER
ETHNIC
ENCLAVE II
AAA I
ETHNIC ENCLAVE I
ADV HOMEOWNER
ETHNIC
ENCLAVE II
ETHNIC
ENCLAVE II
ETHNIC
ENCLAVE II
AAA II
ETHNIC
ENCLAVE II
AAA II
1 2SIZE 3
61. 61
In Summary…
Use audience segmentation to understand
• Socio-economic composition of clusters
• Size and location of clusters
• Similarities/differences in HTC clusters
• Behavior: mailback response propensity
62. 62
In Summary…
• Census forms will be mailed in English and
Spanish
• Translated forms available in 6 languages
• Language guides available in 59 languages
• In-language media/advertising in 28
languages
• 7 multicultural partner ad agencies
Largest U.S. multi-cultural social marketing
campaign…ever?
63. 63
Nancy Bates
Senior Researcher for Survey Methodology
U.S. Census Bureau
nancy.a.bates@census.gov
(301) 763-5248
Advertising Week
Multicultural Advertising Council
69. Segmentation by
Lifestyle and Psychographics
•Self-confident risk takers
•Style conscious
•Savvy
•Strong Family Ties
•Seeks New Experiences
70. Target Audience:
African American Women Only
•Competitive “intenders”
•25-40 years of age
•HH income of $70K+
•Passion points:
entertainment, fashion
and adventure
71. Research reveals: Camry’s a “family
car that does not fit my lifestyle.”
Tools Used:
•Custom African American consumer
segmentation study
•Qualitative testing (before and after
creative development)
•Projective story telling techniques
Areas examined:
•Lifestyles
•Aspirations
•Purchase Considerations
•Media Habits “it’s all about me.”
75. Business Results
• The “If Looks Could Kill” campaign was tested
among people who visited the site (web-intercept
sample of 211), as well as among a sample of 118
people who were sent to the site (“push” sample)
of Hall & Partners respondents.
• The site immediately changed competitive
intenders image of Camry from “suburban family
car to one that is sleek and stylish.” There was
high resonance among both Camry loyalists and
competitive intenders with the hero of the story,
“Bianca”, a single African American woman seen
as daring, independent and resilient.
78. Consumer Response
“A new fresh internet interactive movie
/mystery /puzzle! I LOVED it and can’t
wait to finish all the episodes.
Noticed product branding that was
subtle, but effective.”
“It really shows off the car and what it
would be like driving it in everyday
situations. It does not have that family car
image. It seems younger, fresh and
fabulous.”
“It was interesting that a Camry would be
featured in a show about fashion. I usually
do not associate the two. This episode
made the Camry appear young and
modern.”
81. 81
MCM consumers see differently
*Source: Yankelovich 2006 Multicultural Monitor
““Very little, if any, of theVery little, if any, of the
marketing and advertising Imarketing and advertising I
see has any relevance to mesee has any relevance to me””
50%50%
AfricanAfrican
AmericansAmericans
51%51%
HispanicsHispanics
82. Reframe the question
From
“What’s Hispanic/ African American about it?”
To
“What is relevant to Hispanics/African Americans
about it?”
86. Verizon Telecom
The Challenge:
In an aggressive category with little perceived
differentiation, price ends up being the key purchase
driver
Drive relevance of the Verizon Spanish language TV
package in order to drive call volume (direct response
TV)
87. Hispanic household dynamics drive
engagement with home entertainment
Multiple generations under same roof…
The adults are not just “mom” and “dad”…
Multiple levels of acculturation…
Different cultural experiences….
…Translates to different viewing experiences – social vs
individual
88. Tap into communal viewing
behaviors
Verizon as enabler of family connections
• Content is only a catalyst that allows families to
connect – the interaction is the real entertainment
• Solving Hispanic cultural dilemma – parents want
their children to “be American,” but at the same time
maintain their roots
89.
90. The Results
Spot DRTV average cost per call is 50% lower than for
comparative General market CPC in similar timeframe
Conversion rate: 25% (vs. 18% for GM)
92. 92
For AA, being part of the community
is key
Yankelovich 2006 Multicultural Monitor
A company contributing to a charity or
my local community is important in
deciding where to shop
37%37%
AfricanAfrican
AmericansAmericans
35%35%
HispanicsHispanics
35%35%
NonNon –– HispanicHispanic
WhitesWhites
66%
of African Americans agree when a company
does something good or has a presence in
the community,
they try to buy products from that company
as often as possible.
93. The church as community
• Ultimate trusted source in
the community
• The base and guardian of
family values
• The hub for communal
social activity
• Gospel choir music as
intrinsic part of cultural
expression
94. Music as conduit for brand
engagement:
Vzw provided opportunity
for church choirs to
perform and compete in
front of the largest
audiences of their lives.
Winning choirs received a
cash prize to go on to
compete in a grand finale
for a larger cash prize that
goes to their church and
choir ministry.
96. Confidential and proprietary material for authorized Verizon Wireless personnel only. Use,
disclosure or distribution of this material is not permitted to any unauthorized persons or third
parties except by written agreement.
Within one year “How
Sweet the Sound” grew
from a choir concert in
Memphis, TN to an eleven
city tour
• Increased brand affinity
and consideration among
more than one third of
consumers
• Sales for Verizon Wireless
grew 14% in the markets
where program was
activated vs. the prior year
Results
97. Consumer insights drive
results
1. Targeting household dynamics
2. Engaging with the community “third place”
3. Understanding personal aspirations
98. U.S. Navy
The Challenge:
• The Military is seen
as an option of last
resort
• No longer
prestigious,
lacking status
• Reinvigorate interest
in and excitement of
Navy as career and
employer of choice
• Develop a strong lead
generation platform
99. Tap into achievement as status
For today’s young African
Americans, success is status:
•Inner-directed = pride
in achievements, self-
respect, confidence
•Outer-directed =
gaining respect of
others through high
valued careers
100. Navy empowers your personal
success
• Navy as facilitator to the life you want to make
for yourself
• Demystify and elevate the Navy by showcasing real
stories of current and past Navy Officers
• Highlight the short-term educational benefits and
long-term career opportunities with the Navy
103. 103
Raymond Pettit
SVP, Research and Standards
Kevin Brockenbrough
VP Associate Director, Account Planning
David Burgos
VP, Multicultural Practice
Next Steps and Adjournment