According to an analysis of strategies of leading brands and forward-thinking marketers by Lisa Gevelber, Vice President of Americas Marketing, U.S. Hispanic demographic trends indicate a 163% increase in population between 2010 and 2050, making up 30% of the population by July 1, 2050, and one trillion dollars in buying power in 2010, rising to $1.5 trillion next year (an increase of 50% in just five years).
Marla Skiko, senior vice president and director of digital innovation at SMG Multicultural, says "… marketers may think they trail… general market in adoption of new tech… (though) they are far ahead… should be among the first prospects for marketers… to grow their consumer base…"
A survey of a panel of senior-level marketers, says the report, saw 11–25% of their company’s growth coming from this demographic in the next three to five years, but most brands didn’t have a marketing strategy for this audience.
The analysis found that, in looking at the strategies of leading brands and forward-thinking marketers, "U.S. Hispanics are ahead of the curve when it comes to digital. They lead in adoption of new devices. They are power users of mobile and over-index in video consumption."
Selections of the data supporting these observations and conclusions are included in the report…
Fabian Castro, senior vice president, multicultural marketing for Universal Pictures, notes that they promote “close to” to 80% of its releases annually to the U.S. Hispanic audience. The average Hispanic spends more than eight hours watching online video each month, over 90 minutes longer than the U.S. average, according to Nielsen.
According to Think With Google, YouTube views of top U.S. Hispanic channels are up 1.25x year over year. In the two years since the launch of the bilingual multi-channel network MiTu, the network has grown an audience of more than 36 million subscribers, one-third the number of subscribers to HBO, a forty year old network. Brands are tapping into this growth through endorsements and sponsorships.
A lot of Hispanic video watching happens on mobile, says the report, as smartphones are becoming the "first screen." Nielsen reports that 10 million Hispanics watch mobile video for an average of more than six hours per month. Among smartphone owners, Hispanics are 17% more likely than non-Hispanics to access the web more through their phone than through a computer, and more likely to upgrade or replace their mobile headsets and buy tablets. According to a Google Consumer Survey, Hispanics are 1.5x more likely to buy mobile apps and digital media than non-Hispanics.
Too often, marketers think they’re reaching U.S. Hispanics by simply translating ads and websites into Spanish, suggests the report, but there is a big opportunity to reach these consumers in both languages. A recent Google Consumer Survey showed that the majority of U.S. Hispanic mobile users typically search in English or a mix of English and Spanish. At the same time, the number of Google searches that include common Spanish-language question words nearly doubled over the past three years.
Language isn’t enough, though, notes the analysis. To speak to this audience one needs to be culturally relevant as well. As Castro puts it, "Culture is the new language.” The U.S. Hispanic audience will only gain cultural and economic prominence in the coming years. This isn’t just sheer numbers; it’s technology, concludes the analysis and report.