The growth rate and astonishing increased buying power of the Hispanic consumer
“National Hispanic Heritage Month is the period from September 15 – October 15. It is a time when people recognize the contributions of Hispanic and Latino Americans to the United States and celebrate the group’s heritage and culture.
Hispanic Heritage Week was approved by President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30-day period. It was enacted into law on August 17, 1988 on the approval of Public Law.
September 15 was chosen as the starting point for the celebration because it is the anniversary of independence of five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. They all declared independence in 1821. In addition, Mexico, Chile and Belize celebrate their independence days on September 16, September 18, and September 21, respectively.” – Wikipedia.org
As we celebrate the contributions the Hispanic culture has provided to our society, Ad 2’s Diversity Committee has taken this opportunity to shed light on the growth rate and substantial increased buying power of the Hispanic population – data that is changing the way advertisers and marketers view the Hispanic consumer as a whole.
The incentive for companies to market, and the demand to add more bite to multicultural advertising, is seen in the fast growing Hispanic consumer market. According to Businesswire by 2016 the Hispanic demographic will comprise 17.8% of US residents and their buying power is forecast to grow 48.1% to 1.6 trillion.1 – numbers that should not and cannot be ignored by marketers, advertising, sales, and PR professionals alike.
According to Ad Age’s Hispanic Fact Pack 2011 Edition Hispanic media spending jumped 31.3% last year to $60.7 million.2
With numbers like that, it’s no wonder that the Hispanic population has become the most sought after demographic group in the nation – in addition to becoming the most relevant topic in marketing.
Two of the most recent examples are that of Bud Light and Fiat: two powerful brands spending millions broadcasting multicultural advertising on all major US networks. Pitbull’s Bud Light partnership features his hit song “Bon Bon” recorded in both English and Spanish.3 and Chrysler Fiat features Jennifer Lopez4 and her latest hit song in a series of ads for it’s latest push for the brand in nearly three decades. Pitbull crossover appeal represents a huge endorsement for marketers and has made him a huge staple for diverse consumers.
Ad Age also reports 57% of Spanish-dominant respondents and 29% of English-dominant Hispanics surveyed agreed they feel more loyalty to companies that respect their culture by advertising in Spanish.2
Suprisingly so, many companies ignore the demand of the Hispanic consumer and continue to lack in areas where other companies continue to dominate simply by including the Hispanic population in their marketing and advertising attempts.
“Last year in one of the longest advertising stalemates in TV’s up-front history, broadcast company Univision sold all its inventory before any other network. The reason, Univision’s president of advertising and sales David Lawenda says, is that some marketers are finally cluing in to the importance of marketing to Hispanics.
But it turns out not many markets really are. More than half of small, medium and large businesses in the U.S. don’t market to Hispanics, according to Los Angeles advertising agency Orcí, which surveyed senior marketers at 9,300 companies across the nation. Despite the recognition that the Latino population, an estimated 45 million to 50 million, will affect overall U.S. product and services, 82% of marketers say they have no plans to start or ramp up existing Hispanic marketing efforts.”5
Evidently, this type of information is key in understanding the differences in purchasing behavior from the fastest growing segment of the market – it’s even more important to those whose profession depends on reaching these same exact individuals in order to obtain market share and/or keep a competitive advantage within the marketplace.
Further more, this is a small indication as to how we are evolving into a society where diversity is no longer taboo, rather, a intricate part of the fabric that makes up our country – it is why Ad 2 Orlando is focused and dedicated in embracing the diverse set of individuals that make up our organization in order to better meet the demands of tomorrow.
The numbers are there, the demand is there – so the question now becomes: what will you or your company do to adapt to this demand in the upcoming months?
Joel A. Montilla and Kevin Clarke
Diversity Committee – Ad 2 Orlando