2. Introduction
Events that happen only once a decade are naturally subject to much anticipation and conversation.
Such is the case with the 2010 U.S. Census and, in particular, what it will say about the burgeoning
Hispanic population. Experts who monitor consumer behavior and demographic patterns, however,
aren’t bracing for any surprises. The results, due to President Obama on or before December 31, 2010,
are expected to confirm what existing research and projections already show: that Hispanics represent
the fastest-growing population segment, their purchasing power is strong and their household wealth
is rising.
Many marketers are holding off addressing the important Hispanic segment until the Census results
come out. While having data in hand to support decisions is prudent, this wait-and-see approach
could put them in catch-up mode. Companies that act now will be in a much better position to build
brand awareness and establish relationships with their Hispanic audiences before the post-Census
onslaught begins
Where to Start
Growth in the Hispanic demographic isn’t news to anyone. Its magnitude and influence on culture,
media, politics and other aspects of life, however, may be serious wakeup calls for marketers. The first
step in translating the Hispanic phenomenon into smart marketing strategies is putting the numbers
into perspective. Consider these facts and forecasts from the 2010 U.S. Census:
• The U.S. Hispanic population, at nearly 50 million people, is expected to have
increased by 14 million or about 40% in the last decade.1
• Nearly one in six U.S. residents is Hispanic.2
• In 2008, about one in four babies born in the U.S. had a Hispanic mother.3
• The Hispanic population is expected to be much younger than other racial groups.8
Hispanic consumers, on average, are more than 10 years younger than non-Hispanics;
their median age is about 28.4.
• Second-generation Hispanics are driving growth, with 88% of Hispanic children born
in America compared to 61% of Hispanic adults.4
• Hispanic households average four members, versus 2.9 in white, non-Hispanic families.5
1
“How the Census Will Change Your Business: A Q&A With Telemundo’s Don Browne,” by Marisa Guthrie, Broadcasting &
Cable, June 21, 2010, www.broadcastingcable.com.
2
“Hispanic population boom fuels rising U.S. diversity,” by Les Christie, May 14, 2009, www.cnn.com.
3
“Birthrate Falls for Whites to About Half,” by Sam Roberts, The New York Times, May 6, 2010, www.nytimes.com.
4
“The Hispanic Market Is Set to Soar,” by Noreen O’Leary, AdWeek, November 2, 2009, www.adweek.com.
5
“Hispanic Market Hits Tipping Point,” by Peter Francese, Advertising Age, July 26, 2010, www.adage.com.
8
AOL Hispanic CyberStudy
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3. Dispelling Myths and Stereotypes
People of Hispanic or Latino descent have lived continuously in what is now the U.S. for almost 500
years. Until the Hispanic population boom of the last few years, however, marketers didn’t pay much
attention to them, and myths and stereotypes grew. The next step in realizing the potential this
segment holds is to undo preconceived notions and replace them with facts.
Myth : The Hispanic population is distributed across the U.S.
Fact : Seventy-six percent of Hispanics live in eight states: California, Texas, Florida, New
York, Illinois, Arizona, New Jersey and Colorado.5
Myth : Hispanic population growth is highest in the border states.
Fact : Growth is highest in unexpected places :
o South Carolina: 94%
o South Dakota: 93%
o Tennessee: 87%
o Kansas: 59%
o Oregon: 38%
o Oklahoma: 32%
Myth : Most Hispanics speak Spanish and prefer Spanish-language marketing.
Fact : Nearly half of Hispanics (44%) are at ease speaking English. Almost all young
Hispanics and the majority of other age groups favor English marketing messages.8
Myth : Culturally, all Hispanics are alike.
Fact : There is not one mass Hispanic community. The market is made up of many
diverse communities such as Dominicans, Mexicans and Puerto Ricans, each with its
own characteristics and preferences.
Myth : Hispanics don’t have a lot of money to spend.
Fact : In 2006, Hispanic purchasing power was approximately $841 billion. It is predicted to
reach $1.1 trillion by 2012.7
Myth : Hispanics spend less because they don’t use credit cards.
Fact : While it’s true Hispanics use credit cards less than other Americans, their tendency to
use cash leaves them less squeezed by recent reductions in consumer credit.7
Myth : Hispanics prefer Hispanic brands.
Fact : Hispanics don’t buy only Hispanic brands; they readily embrace U.S. brands and
products.
Myth : Unacculturated Hispanics shy away from technology.
Fact : Acculturation is not an indicator of technological sophistication. In fact, less
acculturated Hispanics tend to be early adopters of technology.8
6
Telemundo Research Solutions Group, growth rates from 2000-2008
7
“Embrace the Hispanic Market,” by Tamara Monosoff, November 12, 2009, www.entrepreneur.com.
8
AOL Hispanic CyberStudy
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4. Online Matters
The Hispanic inclination to be early adopters of technology is a crucial revelation for marketers.
Hispanics are more eager than the general market to try new media formats and technologies – by a
margin of 27% to 13%.8 The emergence of social media and other online channels gives marketers
ideal ways to reach Hispanics on their own terms. The Internet, for example, strongly influences
their purchase decisions; they have a high regard for Internet information and socialization tools;8
and they are heavy users of social media sites such as MiGente.com and QuePasa.com, the Hispanic
equivalents of Facebook.
Of particular note is Hispanics’ use of mobile media. Thirty-two percent access the Internet via
smartphones, versus 20% of the general market.8 Other wireless technology statistics on Hispanic
mobile habits show:9
• Approximately 83% send or receive text messages on their cell phones or laptops, compared with
68% of Caucasians.
• Forty-seven percent said they used their cell phones or laptops to send or receive e-mail, compared
with 30% of Caucasians.
• Eighteen percent said they bought a product using their mobile devices, versus 10% of Caucasians.
Taking Action
As with any target segment, a good understanding of demographics and lifestyles is the foundation of
a sound Hispanic marketing plan. The 2010 U.S. Census will be a wealth of information and statistics,
but there’s no reason to wait on it since existing research validates the segment’s potential and
highlights key consumer behaviors and needs.
Even small steps count, and smart marketers will proactively go after the Hispanic audience now.
Because of the Hispanic population’s heavy usage of online media, it is worthwhile for marketers
to evaluate how well they are represented in these channels. One effective and affordable gauge is
MSLGROUP’s Real-Time Scorecard, which assesses a brand’s presence in social networking, search
and brand engagement, how it stacks up against competition and how well it reaches its target
audiences.
To obtain a Real-Time Scorecard assessment, go to www.mslworldwide.com/realtime.
8
AOL Hispanic CyberStudy
9
“Pew: Blacks, Hispanics among biggest users of wireless Web,” by Cecilia Kang, The Washington Post, July 7, 2010,
www.washingtonpost.com.
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5. Marketing Don’ts Marketing Do’s
Don’t assume general market activity will Do use targeted media and creative
reach Hispanics. executions that convey positive
connections to Hispanic culture
without stereotyping.
Don’t dabble by doing Spanish-language Do allocate appropriate budgets and
versions of existing ads and marketing resources based on the segment’s
materials. potential to the brand.
Don’t assume you’re already doing enough, Do evaluate online presence and
especially in online media. effectiveness with a tool such as
MSLGROUP’s Real-Time Scorecard.
For details, go to
www.mslworldwide.com /realtime.
Don’t wait until 2011 to address America’s Do start now.
fastest-growing market segment.
Vickie Allande-Fite is managing director of the Los Angeles office of MSLGROUP, a leading global
communications firm offering real time communications, public relations and digital, social media,
corporate and events communication.
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