It’s not a secret that we at Motion Ave. have plenty of sangre latina in our veins. I mean, come on, my name’s María.
Something else that’s not a secret is that the Hispanic market has grown like crazy in recent years. According to data from the U.S. Census, in 2017 there are 57.5 million of Hispanics in the country, a number that’s expected to grow by more than 100% by 2060. This means that by then, a third of the U.S. population will be of Hispanic descent!
As a community, they’re not waiting around to make their influence known in marketing and other areas. In fact, the hispanic vote is followed very closely as a deciding force in all significant electoral campaigns. The U.S. Census estimates that around 12 million Hispanics voted in 2016’s presidential elections, which is 47% of all Hispanics over 18 years of age.
But, let’s not talk about politics today. Let’s focus on marketing.
Considering these facts, we’re surprised (and a little disappointed) to find that few brands are coming up with customized strategies for the Hispanic market. Even if there has been a steady push towards diversity in media and advertising, there’s still a lot of work to do. According to a CNN report, in 2013, only 6% of all advertising budgets were allocated to the Latin market.
We want this to change for 2018. And we want to help you do it.
So, for today’s post, we’ll focus on the three reasons why you need to have a strategy in place for the Hispanic market.
Their Buying Power is Huge
Let’s take the words straight out of this report from Nielsen: “Latinos are no longer just a sub-segment of the economy, but a prominent player in all aspects of American life.” The Hispanic household is growing quickly and so is its’ purchasing power.
According to that same report, the annual buying power of Hispanics is close to $1.5 trillion, and it will keep growing. As a matter of fact, it places Hispanics’ per capita income in the same level or above other countries such as Brazil, Russia, India and China, a.k.a. the BRIC countries!
In the near future, expect this number to keep growing, as more Hispanic Millennials and Gen Zs are finishing up their education and joining the workforce. If the annual buying power increased by 50% in only five years (between 2010 and 2015), just imagine how faster it’ll grow by 2020!
They Consume (lots) of Digital Media
Where can you find your Hispanic audience? If you consider that 25% of all millennial minorities are of Hispanic origin, you can be assured that digital media is an excellent place to start. In fact, Nielsen highlighted in a 2014 report that 72% of Hispanics own smartphones, and spend more time using their gadgets than the average U.S. consumer.
According to Advertising Age’s 2017 Hispanic Fact Pack, the most visited social media platforms include: Facebook, Instagram, Twitter, Snapchat, Linkedin and Pinterest, with each one having more than 12 million unique visitors. If we go further, and consider U.S. based multiplatform digital properties, Facebook sits at number 2, just below Google.
Video viewing is also a big deal for Hispanic consumers, who spend over eight hours watching online videos per month. The success of MiTu network, with over 36 million of subscribers is a clear proof of this.
Go where they are, not only to regular social media channels and websites, but also to their Spanish speaking platforms. According to AdAge, the top three multiplatform digital properties in español are Univisión, NBC Universal Hispanic Group and Vix.
A Culture with Room for Storytelling
Even though several big marketers are proclaiming the death of storytelling, we still believe that there are ways to keep its heart beating. A well crafted narrative, grounded under a steady buyer persona profile is always crucial to catch and hold your audience’s attention.
When it comes to the Hispanic market, you have to go beyond translating your campaign into Spanish. This is not enough, and things might get lost in translation. Don’t just put a Charro hat over your logo, either.
Instead, review the hell out of your buyer personas and find ways to connect your product with their cultural narrative. You don’t need to review 200 years of history to do so. It can be as simple as tapping into their emotions.
We love this example from Toyota. In 2015, they launched the campaign called “Más que un Auto” (More than a Car). Using as base the close bond Hispanic car owners have with their vehicle, to the point of giving it a name, they came up with a brilliant strategy to celebrate 10 years as the number one brand for Hispanic U.S. users: giving drivers a customized nameplate in exchange for the story behind it.
Check out the full video below, and let the numbers speak for themselves.
By the way, my own Toyota Corolla is called Rogelio, because it’s red!
This sweet example shows us two things that can be applied beyond Hispanic culture. The first one is that stories relevant to your persona’s life and experience will always trump overtly salesy communications. And, secondly, thinking outside the box of translating ads can be simple, but impactful.
There’s plenty of room for growth when it comes to marketing aimed at Hispanic consumers. Knowing where they are (digitally speaking) and the types of messages they respond to the most are your top tasks for 2018. Don’t let any potential language barrier scare you from doing it. We’re here to help you bridge the gap.