Reaching them requires nuance and understanding.
Hispanics Are Not Just Another Demographic Group
Hispanic. Latino/Latina/Latinx. One thing is sure. This segment of the population cannot be painted with one brushstroke. U.S. Hispanics hail from man countries with unique traditions and languages (to an extent). Additionally, the multi-generational family can represent many degrees of assimilation. Growing up, holidays with my family included grandparents who only spoke Spanish, a grandfather who spoke both (and quite good English, as I recall), parents, aunts, and uncles switching mid-conversation between Spanish and English, and all the cousins speaking English only (or as much as we could get away with). This is a familiar setting in many Hispanic households.
Given this, how we shop and consume media could never be not one-size-fits-all.
Although recognized by some media outlets as the “super consumer,” the unfortunate reality is that advertisers typically see us as one-size-fits-all, often merely translating traditional messages into Spanish and calling it Hispanic marketing. However, I must admit that I have been impressed when I see or hear a Spanish language ad in the middle of English programming because I recognize that somehow, somewhere, someone saw my I.P. address as the target.
Hispanics Have a Higher Income Level And Better Education Levels
A few years ago, I co-founded a Hispanic marketing and engagement firm. For years, we spoke to mainstream advertisers about this audience, only to be met with various reasons they were “unsure.” If it was a healthcare organization, they were concerned the audience would not have insurance. If it was financial marketing, the client was unsure if there would be much to work with. The reasons were too long and all too common, even though Hispanics in the U.S. have a combined purchasing power of $3.4 trillion
Fact: Hispanics tend to earn more than other groups.
According to Statista, the median household income for Hispanics was $65,540 in 2023 compared to $55,321 in 2020.
Fact: Hispanics also have better education levels than other groups.
Fact: Hispanics are more likely to own homes than other groups.
In 2016, the homeownership rate for Hispanics was 65%, compared to 57% for non-Hispanic Americans. By 2019, this rate had increased by 33%. Moreover, despite facing what has been reported as the least affordable housing market on record, the Hispanic homeownership rate reached 49.5 percent in 2023.
Fact: Hispanics are opening more small businesses than ever before.
According to the 2020 State of Latino Entrepreneurship Report, Hispanic-owned businesses have grown 34% over the last ten years compared to just 1% for all other small businesses. Additionally, as of 2023, Hispanic entrepreneurs have established a staggering five million businesses across the United States, collectively generating over $800 billion in annual revenue.
The takeaway is that Hispanics have $1.7 trillion in purchasing power, and they are looking for brands they like and want. That figure is expected to grow as the GDP of U.S. Hispanics continues to expand faster than that of Germany, the U.K., France, and Japan.
How to Reach the Hispanic Consumer
Language matters.
As previously noted, some businesses assume they can translate their ads into español and call it a good day’s work. However, that is only one piece of this plan, and even then, the piece can be different from market to market.
While a Spanish ad may effectively reach some of the target, it fails to consider language preference. According to Claritas, only 32% of the community depends on the Spanish language or has a bilingual preference. The research firm’s Hispanicity metric measures “the degree to which people of Hispanic heritage in the United States have retained elements of their Hispanic culture.” The metric can indicate how Spanish, English, or “Spanglish” — English with culturally familiar Spanish words peppered in — may resonate with the particular Hispanic community a brand wants to reach.
Culture is a consideration.
Beyond language, the culture of the community can influence how a message is received. Learning about the targeted community’s culture, food, music, and holidays can go a long way in establishing authenticity. Because of the diversity of origins, no two communities will be identical. Some markets might distinctly represent a particular culture — like Cuban in Miami or Mexican in Southern California. Understanding these distinctions can prevent embarrassing mistakes such as using a Mexican dialect when trying to reach Cubans in Florida.
Family and community are at the heart of the Hispanic diaspora, but the family scenario may not look the same as non-Hispanic scenes. Creative should include multi-generational relationships but also lean into emotional connections to make the message more dimensional. Brands that can highlight the good that is the community and the role they can play in the lives of the target will win.
Hispanics are digital-first consumers.
U.S. Hispanics are leading the adoption of new devices, putting them ahead of the curve in digital media. Despite being vastly underserved, they are power users of mobile and over-index in video consumption. The opportunity to reach them is wide open. They consume all forms of digital content, from articles and social media to digital entertainment through streaming video and audio. Understanding these digital habits and connecting through their channels is the key to reaching them during the many hours they spend connected online.
Proven Marketing Strategies Work.
Brands often ignore traditional marketing strategies when approaching a new audience, but proven strategies can still be effective.
- Ensure you are marketing something your target audience will want.
- Understand the motivations of your target audience.
- Find the best channels for the delivery of your message. Where do they find information and inspiration?
- Ensure your message is appropriate for the channel.
- Fine-tune your targeting. We’re not all the same person with identical wants, needs, and desires.
- Be authentic to your brand and the community.
Be Ready to Serve Your New Customers.
If you successfully create effective communications and connections with your new community, you will want the experience to match your promises. For example, if you run Spanish-language ads, pre-identify Spanish-speaking team members and be ready to activate them as needed. Ensure the materials and information that aid a guest through their journey are accessible and usable in the required language. Ignore any of these, and you will set up your new guests for disappointment and team members for frustration.
Unlocking the Full Potential of the Hispanic Market
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