1.
July 2013
Kamila Gornia - Strategy

2.
“What bothers you when marketers target
your ethnicity?”
Latinos are conscious of stereotypes
and negative portrayals in media:
− Huge family
− Day laborers
− Lower socio-economic
− Illegal immigrants
− Mariachi music/sombreros
− White-washed celebrities
Latinos are a complex market that
actively seeks out negative connotations
of their culture in media and are not
afraid to let their outrage be known
online.
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_web
inar.pdf

3.
How are they really?

4.
Generations
There are more US-born Latinos than there are immigrants.
There are currently more Latinos being born here than are coming in (2010).
− 40% are 1st generation
− 60% are 2nd and 3rd generation+
Acculturation levels are at a high (NBC Latino, 2012).
− 74% of Latinos identify more with being American
− 19% say they identify with both ‘American’ and ‘Latino’
This market is increasingly more acculturated and therefore none of the typical
portrayals and stereotypes are relevant.
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_webinar.pdf
http://www.hispanictrending.net/2012/09/nbc-latinoibope-zogby-survey-we-are-american-
say-most-us-latinos.html

5.
Ethnicity
Ethnicity is extremely important to Latinos.
Latinos are more likely to nurture their ethnicity than Asian Americans
− “Trying to get in touch with my ethnic identity - 56% vs 38%Asian
There are differences in ethnicity drivers for 1st and 2nd+ generations
− 1st generation – political beliefs, traditional and cultural behaviors, language
− 2nd+ generation – political beliefs, speech and dialect, physical appearance
Latino immigrants prefer to stay true to their roots in terms of behavior, while
for other generations ethnicity is more about outward expression and bicultural
nature. This is important to remember when deciding which generation is
being targeted as different qualities will be relatable to different generations.
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_webinar.pdf

6.
How are their finances?

7.
Perception of Banking
Conventional banking is not usually a part of the traditional Hispanic upbringing
and, when coupled with general skepticism, may lead to a general mistrust of
banks within this market.
− Latinos are among the most unbanked minorities in the US (2013)
− Non-citizen Latinos are less likely to engage in banking practices.
It is apparent that 1st generation Latinos are more likely to be unbanked due to
citizenship-related issues and untrustworthy perception of banks. When
targeting this generation, new member acquisition may be a good starting focus
point as it is more likely to be relevant to this market.
http://linar.rutgers.edu/politics/item/579-latinos-most-unbanked-ethnic-minority-in-the-us-study#.UfFSFRbx-0s
http://www.huffingtonpost.com/glenn-llopis/hispanics-must-make-banki_b_1446967.html

8.
However…
Even though there is a general mistrust of banking institutions among Latinos,
the number of debit and credit card holders continues to grow.
Between 2004 and 2011, the number of Latinos with..
− Debit/ATM cards increased by 115% (vs 51% non-Latino)
− Credit cards increased by 23% (vs -7% non-Latino)
Although the number of banking Latinos continues to grow, it is impossible to
ignore the fact that general bank mistrust remains and a large number of the
US Latino population is still unbanked. Nurturing and cultivating these numbers
may be accomplished by tapping into what Latinos care about and how they
want to be communicated with.
http://latino.foxnews.com/latino/money/2013/06/03/nerdwallet-will-mobile-banking-change-way-bank/#ixzz2ZzLiVUrE

9.
Trust Building
Latinos need to establish a trusting relationship with a brand that helps them
embrace their culture.
− 72% 1st generation Latinos seek out information about brands that target them
specifically (vs 29% 2nd+ generation)
− Portraying Latinos in a positive light and creating local community support is important
to Latinos of all generations.
Latinos are sensitive to how they are portrayed by brands, therefore it is crucial
to reach them in a relevant and non-stereotypical way. Portraying them in a
positive light and aiming to form partnerships by tapping into what they want
from a bank is a good way to begin building trust.
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_webinar.pdf
http://www.huffingtonpost.com/glenn-llopis/hispanics-must-make-banki_b_1446967.html

10.
What do they want?
Aligning bank practices with Latino expectations is an important step to
increasing acquisition and retention rates.
Latinos are early adopters (2013)
− 85% of Latinos engage in online banking (vs 74% US)
− 70% use their smartphone to do mobile banking
− 13% of unbanked Latinos said they are ‘very likely’ to open a bank account on their
mobile device if the option was available to them
As a highly digital and social market, Latinos expect banking institutions to be up-
to-speed with online and mobile trends. Providing bilingual websites and mobile
apps may be beneficial to ensure both generations can benefit from this practice.
http://www.hispanicbusiness.com/2013/3/8/mobile_banking_usage_up_banks_need.htm
http://www.nationalmortgagenews.com/dailybriefing/More-Hispanics-Bank-Online-than-Any-Other-Group-1036418-1.html?site=default_msn
http://pewinternet.org/Commentary/2012/March/Pew-Internet-Social-Networking-full-detail.aspx

11.
How to reach them?

12.
Social Media
Latinos enjoy and listen to brand messages more than peer recommendations on
social networking sites .
Social networking highly popular.
− 78% Latino Internet users frequent social networking sites (vs 67% US)
− Facebook has the highest reach for Hispanic Internet users (64%), followed by LinkedIn (17%)
and Twitter (15%)
Brands over peers in social media environment
− 9% Latinos are likely to purchase products they see advertised on social media (vs 7% US)
− 24% Latinos like to follow their favorite brands on social media (vs 20% US)
− Latinos pay less attention to other consumers’ product reviews than do non-Lationos (26% vs 30% US)
Given the extremely popular nature of social media among Latinos, it is crucial to have as
much brand presence on this medium as possible. Having a bilingual social media staff may
be beneficial to ensure a fault-free experience for Latinos of all generations.
http://pewinternet.org/Commentary/2012/March/Pew-Internet-Social-Networking-full-detail.aspx
AdAge, Hispanic Fact Pack Jul 2013 (Print)

13.
Online behavior
Given that Latino market is a highly digital and social one, it is important to notice
how exactly they can be reached.
Generational differences in digital behavior
− 57% 1st generation are weekly visitors to websites that are in Spanish (vs 21% 2nd+ gen)
− 59% 1st generation are weekly visitors to websites geared toward Latinos (vs 20% 2nd gen)
− Of the Latinos who are online, ~84% are 2nd+ generation, while ~54% are foreign-born
(2010)
It is clear that there is a disconnect between communicating with Latinos of 1st and 2nd+
generations online. Immigrants stay closer to their heritage by visiting ethnicity-related and in-
language websites, whereas 2nd+ generations are harder to pin point with their cultural
preferences.
AdAge, Hispanic Fact Pack Jul 2013 (Print)
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_webinar.pdf

14.
Messaging

15.
Language
Spanish language is extremely important, however when it comes to messaging, using
Spanish is not always the best solution.
Spanish language is here to stay (2012)
− 75% of Latinos speak at least some Spanish at home
− 95% of Latinos believe it is very important for future generations to be able to speak Spanish
Spanish language messaging is limiting when targeting all Latinos (2012)
− 78% of 1st generation Latinos appreciate seeing ads that are in their language (vs 40% 2nd+ gen)
− 69% of 1st generation Latinos feel that ads do a good job speaking to their ethnicity (vs 26% 2nd+
gen)
Latinos of different acculturation levels respond differently to targeted ads. While Spanish
language is seen as important in life, it is not necessarily seen as such in advertising. It is
important to determine the generation of the Latino target in mind before deciding on a
particular messaging strategy.
http://www.hispaniconlinemarketing.com/2013/06/why-spanish-will-always-be-critical-for-
reaching-hispanics-online/
http://l.yimg.com/cv/ip/i/us/ayc/webinars/yahoo__marketing_to_hispanics_webinar.pdf

16.
Translations
Latinos can tell when an ad has been directly translated from the English version and they
prefer to see specially designed ones that target them.
Spanish language ads are perceived differently than English ads (2010)
− Spanish-language ads are more attention grabbing than English language.
− Half of Latinos perceive that the Spanish language ads they see are the same ads
created for the general population, but in Spanish.
− Latinos use Spanglish as a bonding tactic and see it positively as a part of life, however
in studies it’s been shown that the use of Spanglish may only be seen positively when
relating to a product if used in a TV spot dialogue with a bicultural speaker. (2011)
While bicultural Latinos are not negatively impacted by the perception of Spanish-
translated ads, they would still like to see targeted ads specifically for them. Including the
elements that comprise a well-perceived Spanish language ad is a nice touch to building a
relationship with this market.
http://www.savision.org/researches/Latinos%20Speak%20About%20Latino%20Targed%20Advertising.pdf
http://citation.allacademic.com/meta/p_mla_apa_research_citation/4/2/3/5/1/p423513_index.html

17.
Is language important?
Ads do not need to be in Spanish to be effective.
− There is no preference for seeing ads that are in Spanish or English (2010).
− As long as ads are still culturally relevant and clearly features the product and its benefits,
English ads are just as effective as Spanish ads in influencing purchases (2010).
− Latinos can identify with ads in either language, the most important thing are the cultural
elements that are included in the ad (2010).
Latinos do not have a specific preference for ads in terms of language since there is such a
large number of 2nd+ generation living in the US. If the ads are to target the 1st generation it
may be beneficial to use Spanish language, whereas if we are targeting 2nd+ generation,
using English may be the way to go, making sure that both perceive Latinos in a positive light
and use Latino speakers/models in the visuals.
http://www.savision.org/researches/Latinos%20Speak%20About%20Latino%20Targed%
20Advertising.pdf

18.
Cultural Relevancy
Targeted ads receive generally positive reactions if they:
− Respect the Latino culture
− Using Hispanic actors/spokespeople that are neutral
− Show respect for Latinos without stereotyping
− Provide emotional connection to Latinos
− Show Latinos working in respectable positions
− Show understanding of the diversity of Hispanic race
− Use correct language, whether it’s Spanish or English
− Are realistic
Not all Latinos want to be reached in Spanish, however every generation wants
to see ads that are culturally relevant to their ethnicity.
http://www.savision.org/researches/Latinos%20Speak%20About%20Latino%20Targed%
20Advertising.pdf

19.
Conclusion
− Latinos care the most about being perceived positively and not in any
stereotypical way.
− Using specially-created Spanish language ads (not direct translations)
is the most effective when targeting 1st generation Latinos.
− Using English language may be effective in targeting Latinos of all
generations as long as they remain culturally relevant.