US Insights

Rise of the Hispanic consumer

Tech // TV 11.01.2013

Jeff Boehme

CRO, Kantar Media Audiences, North America

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  • 14.6% growth in ad spend targeting Hispanics from 2011-2012
  • 2.7% growth in ad spend targeting the general market from 2011-2012

US advertisers are spending more to reach Hispanics and their $1T+ in buying power

The US Hispanic population, now representing 16% of citizens and the country's fastest-growing minority group, wields buying power in excess of $1 trillion, according to the Selig Center for Economic Growth.

This is hardly lost on marketers and media sellers who are increasingly focused on this segment to grow their brands, as seen in trend data from Kantar Media Ad Intelligence above. Personal care product marketers, for example, have poured more than $400 million into reaching Hispanic consumers, an increase of 61.4% from 2009. Telecom companies have spent an additional $687.4 million trying to reach them, an increase of 13.3%.

The challenge marketers face, however, comes in successfully identifying the Hispanic audience and providing accurate measurement of true media usage and purchasing behavior.

The terms "Hispanic" or "Latino" are typically used for those who classify themselves in one of the origin-related categories listed on the decennial US Census or other Census questionnaires (e.g., Mexican, Puerto Rican or Cuban).

Although the Hispanic population is usually defined by the origin, it can be viewed as the heritage, nationality, lineage or birth country of the person or their ancestors before arriving in the US. That is to say, people who identify their origin as Hispanic, Latino or Spanish may be of any race.

Kantar Media Audiences uses a method that defines the "Hispanic audience" by how often they tune into Spanish-language content. Counteracting the challenge of measuring the origin of an audience, this method is more precise and efficient for those making strategic decisions about how to use Spanish-language media. Segments are matched with shopping behavior to correlate media exposure and product purchases.

What is becoming quite clear is that bigger (and better) data are enabling smarter marketing decisions. While traditional methods of understanding the consumer "path to purchase" are challenged in today's media ecosystem, new data and innovative analytics are driving more effective results. We can now define the Hispanic consumer with greater precision and connect their actual purchase and media behavior with commercial exposure.

But does this really work? Based on a recent proprietary study, we have seen a specific campaign increase household spending for a brand by more than 18%. These data connections enable marketers to deliver improved audience efficiencies, media effectiveness and consumer engagement.  

Source: Kantar Media

Editor's Notes

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