An Overview of Current Market Trends and AHAA Data. Aida Levitan, PhD, president, Association of Hispanic Advertising Agencies
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1 An Overview of Current Market Trends and AHAA Data Aida Levitan, PhD, president, Association of Hispanic Advertising Agencies
2 Myths in the Marketplace Articles in national media are calling our time the post-ethnic America Other articles tout that the majority of young Hispanics speak English, consume Englishlanguage media and that only old Hispanics consume Spanish-language media.
3 Key Developments Pop culture is dominated by Hispanics and non-white artists Strong racial divides in society are now being replaced by new, more nuanced views. Multicultural agencies are pitching a blended approach whether it is the right one to connect with diverse ethnic consumers. Clients are confused and even afraid of doing the wrong thing in their efforts to target Hispanics.
4 What the AHAA data Reveals about Young Hispanic Adults More than half of Hispanic year olds (68%) are Spanish- Dominant or bilingual year old Hispanics are consuming Spanish and English broadcast media at nearly equal rates, with Spanish-language television and radio outpacing English-language language television and radio. Young Hispanic adults are heavy readers of magazines with lifestyle, entertainment, automotive and sports focused titles taking t the lead year old Hispanic consumers are more persuaded by advertising in Spanish and are more loyal to companies with ads in Spanish.
5 Demographic Profile: Heritage More than half of Young Hispanics were not born in the United States. % of Groups by Heritage 53.1% 55.7% 41.2% 38.6% Born in US Not Born in US Source: Simmons Hispanic Study 2002
6 Demographic Profile: Language Preference* Young Hispanics have a slightly higher propensity to be Spanish Dominant compared to the average Hispanic adult. 32% 30% % 21% 21% 22% 17% 15% 12% 9% Only Spanish Mostly Spanish Mostly English Only English English & Spanish Equally *Language Spoken Inside the Home Source: Simmons Hispanic Study 2002
7 Psychographic Profile of Young Hispanic Consumers Young Hispanics like to have the latest electronic equipment and are willing to pay anything to have it their friends also go to them for advice on equipment Young Hispanics like to live in the moment Young Hispanics think free spending helps to improve their image
8 Television Viewing: English vs. Spanish Language Young Hispanics are more likely to watch Spanish Language TV than the average Hispanic adult, especially during 7p-11p. ENGLISH LANG (Gross): ALL DAY 65.7% 62.4% SPANISH LANG (Gross): ALL DAY 59.1% 66.6% ENGLISH LANG.(Gross): 7PM-11PM 46.7% 46.7% SPANISH LANG.(Gross): 7PM-11PM 41.3% 47.7% Gross represents total audience, not unduplicated Source: Simmons Hispanic Study 2002
9 Psychographic Profile of Young Hispanics: Young Hispanics Are concerned with looking young but do not exercise regularly or eat a balanced diet Like cable TV. Like cable TV. Shop on the Internet more than ever. Consider themselves to be liberal.
10 Psychographic Profile: Buying Style Young Hispanics are more likely to be impulsive and buy things on the spur of the moment rather than be cautious about the brands they choose Index to Total Adults 18+ IMPULSIVE: Buy spur of moment AD BELIEVER: Ads give true picture EXPERIMENTERS: Change brands often CAUTIOUS: Don't buy unknown brands PRODUCT LABEL READER: Read info ENVIRONMENTALIST: Buy prods use recycle CONFORMIST: Buy what neighbors approve Source: Simmons Hispanic Study 2002
11 Psychographic Profile of Young Hispanics View themselves as strong and forceful personalities. Are more likely to be impulsive and buy things on the spur of the moment. Are willing to try new brands.
12 Spending: Young Hispanics vs. Gen. Market Young Hispanics spend more on foreign travel and their cell phone bill than young adults in the general market. Spending is similar for children s toys. Average Amount Spent Foreign Trip pst 3 yrs Domestic Trip pst year Cell phone bill last mo. Software pst year Children's Furniture pst year Preschool toys Infant toys pst year Video Games pst year $73 $64 $134 $168 $203 $48 $62 $55 $62 $100 $106 $376 $486 $ Gen Mkt Hispanics $1,921 $1,771 Source: Simmons Hispanic Study 2002, NCS Fall 2002 Full Year
13 Key Findings: Retail Young Hispanics are frequent shoppers at dept/clothing, home furnishings and home electronic stores Avg Times Shopped Dept/clothing store past mo Home improve store past 3 mos Home furnishings store past 3 mos Home elec store past 3 mos Source: Simmons Hispanic Study 2002
14 Stores Types Shopped: Young Hispanics vs. Gen. Market A greater percent of Young Hispanics shop at most store types (especially drug stores) compared to young adults in the general market with the exception of department/clothing stores. Dept/Clothing Stores Supermarket/Food Stores Drug Stores Convenience Stores Home Improvement Stores Home Electronic Stores Office Supply/Computer Stores Home Furnishing Stores Average Amount Spent 26% 34% 39% 50% 50% 60% 61% 58% 54% 55% 66% 74% 88% 95% 88% 91% Gen Mkt Hispanics Source: Simmons Hispanic Study 2002, NCS Fall 2002 Full Year
15 Spending Attitude/Opinions: Young Hispanics vs. Gen. Market Young Hispanics are more likely to be impulsive shoppers who spend without thinking. They like to keep up with styles and will spend what they have to look younger more so than young adults in the general market. Spend without thinking Plan ahead for purchases Style conscious Ads give true picture Buy on spur of the moment Spend what I have to look younger % who Agree A Lot with Statement 3% 4% 8% 8% 12% 11% 9% 12% 13% 17% 32% 38% Hispanics Gen Mkt Source: Simmons Hispanic Study 2002, NCS Fall 2002 Full Year
16 Strategic Implications -- Communicate to Young Hispanics Differently In order to gain share of wallet corporations must first gain: Share of Mind (awareness/familiarity/trust) And, share of heart (emotional/cultural hot buttons) To gain their heart, advertising must leverage the distinct value orientation vs. that of non-hispanic consumers, thus increasing the effectiveness of the communication of the message Advertisers should recognize the role that young Hispanic consumers have in educating other consumers and setting trends. Source: Santiago Solutions Group
17 Conclusion & Implications It is an important time for marketers to reach these young consumers as they are still building brand preferences, but are still very willing to try new brands Marketers messages must be targeted and to the point as young Hispanics are too busy to sift through the clutter. These young consumers are influenced by pop-culture and prefer new or contemporary versus old or nostalgic. Image is everything and products and services that offer to enhance their image will prevail.
18 How does this impact our industry? More corporations are tuning into the Hispanic market and allocating higher budgets. Corporate marketers are more confused than ever about what they should be doing to reach Hispanics. Corporate marketers are looking for strong Hispanic marketing partners who can guide their efforts. AHAA agencies need to keep adapting and delivering solutions in the new environment Cross-over over work (culturally relevant English advertising) is a great example of how AHAA agencies continue to deliver solutions to the market. Advertisers need to act quickly to realize the great potential to t garner even more marketshare.
19 Next Steps for AHAA Encourage more corporations to spend appropriately in the Hispanic market and partner with AHAA agencies Aggressive media campaign to educate advertisers Full-scale research study on Hispanic youth market and young adult market More corporate research
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