4 key factors in understanding the US Hispanic market

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  • September 15, 2016

U.S. Hispanics is a consumer segment marketers can’t afford to overlook anymore. Their rapid growth in both population and buying power is turning them into “Super Consumers”, proving brands and agencies need to find effective methods to engage with this audience.

First though, they need to get a better grasp of who the U.S. Hispanics are and how they are currently engaging with brands. Retargetly provides you with 4 key factors to enrich your understanding of this audience.

1. A young, fast growing demographic:

U.S. Hispanics are 55.4 million people, representing over 17% of the total US population according to the Census Bureau. Figures are bound to explode in the upcoming years as Hispanic population in the US is projected to number 106 million by 2050, experiencing an increase of 86%.

African-American, Asian-American and Hispanics altogether are expected to hit a demographic milestone by 2044, becoming a numeric majority in the US, according to U.S. Census statistics and predictions.

Not only are they a fast-growing population, they are also young. Pew Research Center determines Hispanic median age is 29, meaning 60% of U.S. Hispanics are Millennials, individuals aged 18-34 in 2015 according to Pew Research Center’s definition. They account for a fifth part of total millennial population in the US. What does this demographic insight imply? Hispanics are, following the definition of a millennial, native digitals and early adopters of technology.

2. A bicultural audience :

The cultural background of this audience has also evolved in the past few years. Nowadays Hispanics embrace in equal proportions their latino heritage and their immersion in the US culture. The shift between two cultures is reflected by the fact a large number of Hispanics are bilingual. According to The Nielsen Company, one third of Hispanics speaks both English and Spanish at home. The bilingual aspect is even more important among the youngest. Nielsen estimates 96% of Hispanics under the age of 18 are bilingual or even English dominant.

Considering that this audience should only be reached in Spanish is therefore an outdated notion. Online navigation of this consumer segment also reflects the constant switching between languages.

The study Hispanics: The Role of Culture and Language Online” conducted by Google and Ipsos MediaCT Digital shows that most U.S. Hispanics using Spanish at home switch to English when navigating. While 28% of respondents say they only use Spanish at home, only 16% confirmed it navigates in this language.

U.S. Hispanics can actually be reached in both languages, expanding the possibilities of interacting with them. Furthermore, marketers need to think beyond the language, and focus on delivering culturally approachable content instead.

3. A digitally engaged audience:

Telemundo recently defined U.S. Hispanics as Generation M™: Millennials, Multicultural and Mobile. And it all seems to add up to that. According to Specific Media and SMG Multicultural’s Millward Brown survey more Hispanics in the U.S. (77%) own a smartphone than non-hispanics (70%). This proportion is similar when it comes to tablets as more Hispanics own one (54% vs 49% of non-hispanics).

The U.S Hispanic population uses mobile devices to navigate the web, download and use apps for a larger amount of time than non-hispanics do. According to Nielsen’s Q2 2014 Cross Platform Report, this consumer segment spends an average 49 hours and 9 minutes every month surfing the web on their phones, while non-hispanics average reaches 43 hours and 31 minutes.

According to a Google and Ipsos MediaCT Digital study, there are more U.S. Hispanics (54%) going online in order to get informed about a purchase than non-hispanics (46%). The same study reveals 66% of U.S Hispanics says it pays attention to online ads, this is 20 points more than general population. Both of these insights combined are powerful enough for brands looking to approach hispanic potential buyers, especially considering U.S. Hispanics spend more time shopping online (average 6.4 hours a month) that non-hispanics (average 1.1 hours a month).

4. US Hispanics are “Super Consumers”:

The Nielsen Company considers US Hispanics to be one of the three multicultural “Super consumers” (African-American and Asian-American are the other two). Indeed, this consumer segment registers a yearly spend of $ 1.3 trillion in goods and services. This figure is expected to reach $ 1,7 trillion by 2020 according to the Selig Center for Economic Growth.

The buying power of Multicultural “Super Consumers” altogether has grown at an exponential rate doubling, going from U$ 661 billion in 1990 to U$ 3.4 trillion in 2014. It has doubled the general US buying power. This means the growth of Multicultural “Super Consumers” buying power is two times bigger than the growth of total U.S. buying power, according to Nielsen.

These are not the only figures proving U.S. Hispanic power of acquisition is bound to reach new milestones. In fact, according to U.S. Census data, Hispanic household has increased from $ 40,946 in 2009 to $ 42,396 in 2014. Also, while in 2009 only 30% of Hispanics had a household superior to $ 50,000, they were already 43% by 2014.

All of these numbers only confirm the obvious: U.S. Hispanics are the current and near-future “Super Consumers” that all marketers should be trying to reach.

Being a leading DMP and Data exchange focused on hispanic audiences, Retargetly wants to help marketers understand the constantly changing and complex audience that is the U.S Hispanics. With this understanding at hand, marketers will be able to boost their reach of this audience and seize new income opportunities. If you’d like to know more about our hispanic audiences and targeting capabilities, visit www.retargetly.com.