Hispanics demonstrate importance at voting booth and at cash register

The hype about the importance of the Hispanic vote became a reality during the 2012 elections, where Hispanics were 10 percent of the overall voting block and significantly more in key swing states like Florida, Colorado and Nevada.  Latinos voted for President Barak Obama 71 to 27, a gap of 44 percentage points – larger than the 36 point gap the president had over John McCain in the last election.

While there is understandable attention being given to this important voting bloc on the heels of the election, the results of the election should serve as a wake up that this demographic will be influential for the long term – both at the ballot box and at the cash register.

And, the clock is ticking as by 2042, Whites will be the minority in the United States, according to the Pew Hispanic Center.

 

The influence is also not limited to population growth.  Economically, Latinos account for more than $1.3 trillion in economic purchasing power, according to the Selig Center for Economic Growth.  In terms of industries, Hispanics are expected to account for 40 percent of the net new households in the next 10 years, Hispanics spend more at supermarkets, outpace non-Hispanics on smart phone and table purchases and Spanish-language TV networks consistently outperform English-language ones among key demographics.   Add to this the fact that Hispanic-owned businesses grew 43.7 percent compared to the national rate increase of 18 percent and that Hispanics are now largest minority group among U.S. 4-year university students, the case for Hispanics’ long-term economic importance begins to take shape.

 

The market is there and the numbers are compelling, but many companies continue to put Hispanic marketing on the back burner, say they don't have a budget to do Hispanic marketing or think they are already reaching Hispanics through their English-language campaigns.

 

Let me be clear.  There is a major difference between reaching Hispanics and connecting with Hispanics. Connecting with Hispanics requires a credible and culturally-relevant approach.  Trusting relationships must be established and cultivated, and approaches cannot focus solely on language. Hispanics see straight through lackluster efforts such as translations, asking for our vote the last two weeks before an election or remembering us only during Hispanic Heritage Month.

 

The key is in transcreating rather than translating. Transcreation is the cultural-adaptation of marketing and sales messages to reach Hispanics in a language they understand both literally and metaphorically.  Transcreation focuses on what motivates Hispanics to purchase or consume goods and services rather than on whether they speak Spanish or English. In other words, knowledge of how culture influences a Hispanic’s decisions is more important than language preference.

 

Success also requires adequately allocating budgets to reach this important segment. The Hispanic market must be integrated into an overall market strategy and not treated just as a niche market.  There are no easy short cuts.

 

Now is the time to begin.

Hispanic more digital-savvy than Non-Hispanics

New analysis from the Hispanic InsightCenter reaffirms other studies showing that Hispanics are outpacing Non-Hispanics in the areas of mobile and social media. The new report further reports that the are using social media and mobile technology to give and seek advice about products and services.

According to an article in MediaPost, Hispanic consumers tend to be early adopters and are more likely to own smartphones and tablets. iPad ownership specifically is up among Hispanics from 4.2% in June 2010 to 21.3% in 2012. (14.6% of Non-Hispanics report having an iPad in 2012.)



Viewing on Mobile Devices
	% of Users
Mobile Used to View	Hispanics	Non-Hispanics
Email	48.1%	29.2%
News	26.6	17.5
Sports	15.2	10.2
Video/TV	15.5	9.6
Source: BIGinsight, August 2012

In addition Hispanics’ regular usage of social media also largely outpaces Non-Hispanics counterparts. Usage among Hispanics indexes higher across all sites tracked in the InsightCenter.

Regular Use of Social Media/Online Communities – Index (Hispanics 18+ vs. Non-Hispanics 18+)
Media	Index vs. Non-Hispanics
Facebook	109
Foursquare	166
Google+	133
Hulu	144
LinkedIn	127
MySpace	155
Pinterest	109
Twitter	141
YouTube	133
Source: BIGinsight, August 2012

Presidential campaigns missing mark in ads for Latinos

Much has been written about the 21.3 million registered Latino voters that could make the difference in this year's presidential election, including a Time Magazine cover story in March. However, it seems both President Obama and Democratic Challenger Mitt Romney are both missing the mark when it comes to culturally-relevant approaches in their marketing, according to an article in the Seattle Times.

Neither campaign, the article states, has adopted the approach honed over the years by businesses targeting Spanish speakers — one that not only depicts Latinos in positive settings, but also reflects attention to cultural nuance.

Romney's ads appear to be direct translations of English ads with awkward translations of phrases.  The Obama campaign is doing considerably more with a Spanish-language website, a Twitter feed for Latinos, an English-language website targeted at Latinos and a Spanish-language website about the benefits of the Affordable Care Act. After Obama's order to stop deportations of young undocumented immigrants, the campaign put out an ad in Spanish featuring Miami-based television personality Cristina Saralegui, the article says. However, the campaign buy allocation is not keeping par with the changing demographics or the Latino makeup in key swing states.

Portada Magazines' Hispanic Marketing 12 Predictions for 2012

Portada Magazine again published predictions for the 2012 Hispanic Marketing and Media industry.

1. Univision’s IPO will take place in 2012
The investors who took the broadcast media private will want to monetize their investment in 2012 through an IPO.

2. Mobile becomes huge for Hispanic Marketing
Mobile media (Mobile phones, Tablets and E-Readers) will become a major force in Hispanic Marketing and Advertising. That is why Portada is dedicating a special event (The Hispanic Mobile Marketing Forum on Sept. 19, 2012) to analyze this phenomenon. Hispanic Consumers spent more than $5.15 billion during this year’s holiday season on mobile devices, according to the Hispanic Holiday Mobile Survey 2011 by Zpryme.

3. The “SoLoMo” trend will continue
“SoloMo”, or Social-Local-Mobile will be increasingly applied to marketing strategies. Particularly in the Hispanic market, where both social networking and mobile usage overindex. Geolocalization when using mobile media, e.g. checking in on Facebook and/or FourSquare, or in review sites such as Yelp will be driving local consumer marketing and advertising. QR Code integrations in print advertising will play a particularly important role for retail. Online-Mobile Gaming and In-Game Advertising will play an increasingly important role.

4. T-Mobile will end in the hands of a Latin Telecommunications giant
Now that AT&T has officially announced that it is no longer pursuing a T-Mobile acquisition, we know for sure that as “a contractual penalty for the collapse of the merger, AT&T will pay T-Mobile $3 billion in cash, and give T-Mobile at least $1 billion worth of spectrum rights. Portada predicts that Latin Telco giants America Movil and Telefonica have a strong chance to end up acquiring T-Mobile.

5. U.S. Hispanic Advertising Market will grow by 5% in 2012…
As 50+ Hispanic marketing executives said in a recently published Portada Survey, U.S. Hispanic Advertising will grow by approximately 5% in 2012 driven by Auto, Political and Financial Advertising.

6. Hispanic Digital Advertising’s expansion will continue to grow at a high rate
While digital advertising in the U.S. Hispanic market still amounts to less than 5% of the overall advertising pie, compared to nearly 20% for the overall U.S. market, the U.S. Hispanic digital advertising market will continue to grow in 2012 at a very high rate.

7. Online Video will be on a roll
Within digital media Hispanic online video advertising will be growing the most. The rationale is very compelling: Hispanics watch more video online than their general market counterparts. Content providers will be working hard to increase their online offerings, particularly of Spanish-language online video, and satisfy the needs of the online video advertising markets.

8. Hispanics Newspapers will do well overall
Hispanic Newspapers will continue to have a relatively strong performance, particularly when compared to their U.S. general market counterparts. The strong community media element of Hispanic newspapers plays in favor of them. So does the fact that print media continues to be a great way to target Spanish-dominant U.S. Hispanics.

9. ImpreMedia will be acquired
Impremedia private equity backers Clarity Partners, Halyard Capital Fund, ACON Investments and Knight Paton Media as well as Goldman Sachs (who provided a loan) are looking for an exit. The likely buyer is a large general market newspaper chain who wants to place a strong bet on the Hispanic digital and print media markets.

10. Measurable (Targeted) Media will continue its expansion
The rise of digital media and the data about audience reach engagement etc that comes with, is impacting other media. Targeted TV (e.g. Hispanic audiences of general market TV programs) are also being developed and increasingly sold to advertisers.

11. E-Commerce and Online Media will get closer
Content Marketing applied to online media has a lot to do with SEO. Once the content attracts an audience, that audience can be monetized via advertising or via e-commerce. Major companies, who attract millions if not tens of millions of unique visitors, are betting on content production to attract the right audience and then convert readers into buyers. Watch out for more and more CPG’s and retailers hiring journalists and editors to produce and curate content on their corporate (media) sites.

12. Spanish-Language Media will continue to lead
During the last months of 2012 several new ventures, particularly digital media properties, have been launched to target English-dominant Hispanics online. Will these in-culture English-language media be able to differentiate itself enough from general market English-language media and obtain major advertising buys? The jury is still out. In any case, while English-dominant targeted Hispanic media is a great addition to the Hispanic advertising and media landscape, we think that, when it comes to mass media, in 2012 Spanish-language will continue to be the pre-eminent way to market to and reach the U.S. Hispanic population.

Kraft triples Hispanic spend after being labled a "follower"

A 2010 report by the Association of Hispanic Advertising Agencies labeled Kraft, with an allocation of just 3.8% of its ad budget for Hispanic media in 2009, a “follower”, narrowly averting a “laggard” label by a mere .2%.

To their credit, Kraft responded by tripling its 2010 spending on Hispanic marketing, according to an article on shopperSight News.

They are leading with their Kool-Aid brand and launched a Spanish-language advertising campaign that includes television commercials on Univision and Telemundo. They are also investing in community relations-related events.