census: it's all in the numbers

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  • 8/6/2019 Census: It's All In The Numbers

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    1 | PORTER NOVELLI: AMPLIFY

    May 2011

    Sonia Sroka

    Senior Vice President

    Director o Hispanic Marketing

    Porter Novelli

    CENSUSITS ALL IN THE NUMBERS

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    IF YOUR BRAND STRATEGY IS NOT HISPANIC-READY, IT

    IS TIME TO LOOK AT THE NUMBERS AND ASK YOURSELF

    WHAT YOUR BUSINESS CAN DO TO BETTER CONNECT

    WITH THIS POWERFUL MARKET.

    Photo provided by Creative Commons/Municipa

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    LOS NMEROS NO MIENTENTHE NUMBERS DONT LIE

    WHY CONTENT THAT ENGAGES THE HISPANIC MARKET IS ESSENTIAL FOR A BRANDS SUCCESS

    The Hispanic market in the United States is now

    $1 trillionand growing. But roughly 50 percent

    o all U.S. brands still dont include Latinos in

    their marketing mix. I your brand strategy is not

    Hispanic-ready, it is time to look at the numbersand ask yoursel what your business can do to

    better connect with this powerul market.

    The newly released 2010 Census data has

    conrmed what Hispanic marketers have always

    known: Hispanics are the astest growing

    demographic in the United States. With a

    population o 51.2 millionone in every six U.S.

    residents, a stunning 42 percent increase rom the

    previous census in 2000Hispanics constitute

    a critical component to every brands long-term

    growth. While that may be old news or some o

    us, the strength o the Hispanic market should

    serve as an eye-opener or many organizations.

    SONIA SROKASENIOR VICE PRESIDENT, DIRECTOR OF HISPANIC MARKETING

    In this issue o Ampliy, we will draw rom

    inormation in the latest Census and elsewhere

    to look at the growing Hispanic population in

    the United States: Who they are, why they

    are a critical component to success, and howorganizations can create content that eectively

    reaches, engages and infuences them.

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    QUINES SOMOS?WHO ARE WE?

    WHO ARE HISPANICS AND HOW ARE THEY MAKING AN IMPACT ON BRANDS?

    In order to reach and inspire Hispanics in ways that

    strengthen relationships and drive real business

    results, it is critical that brands and marketers

    understand who Hispanics are and what motivates

    them. While Hispanic is an overarching term thatdenotes a diverse group o people rom many

    dierent countries, there are many critical actors

    rom language to amilial ties to shared social and

    cultural traditionsthat unite them and should

    serve as undamental understandings or marketers

    seeking to reach them.

    According to Ad Ages 2010 Hispanic America,

    the median age o Hispanics is just under 28, which

    means that 75 percent o Hispanic adults all within

    the powerul 18-49 demographic, compared to 56

    percent o non-Hispanics. Hispanic households are

    young, and oten orm large, traditional, married-

    with-children amilies that welcome participation

    rom grandparents and other extended relations.

    Though they are relatively young, Hispanic amilies

    enjoy strong incomes. According to the Ad Age

    white paper, as o 2008, Hispanic married couples

    have the highest income o any household type,

    with an average income o $63,000. Clearly, inaddition to being a major contributing actor to

    U.S. population growth, Hispanics have signicant

    buying power.

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    CONTENT MUST EFFECTIVELY COMMUNICATE AN

    UNDERSTANDING OF THE COMMUNITIES WHERE

    HISPANICS LIVEAS WELL AS THE IMPORTANT ROLE

    THAT COMMUNITY PLAYS IN THEIR LIVES.

    Photo provided by Creative Commons/Wallula

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    LA CIUDAD DONDE VIVIMOSWHERE WE LIVE

    WHERE IS THE HISPANIC POPULATION GROWTH OCCURING?

    U.S. births have now surpassed Latin American

    immigration as the source o Hispanic population

    growth. According to Bloomberg, Hispanic birth

    rates climbed 27 percent rom 1990 through 2010.

    In comparison, the overall population saw a 7.5percent decline in birth rates. This means that

    rom 2000 through 2010, the Hispanic birth rate

    increased 14 percent, while the U.S. population

    declined two percent.

    States in the south and west saw an increase in

    population by 13 percent to 14 percent, while states

    in the midwest and northeast only saw an increase

    o three percent to our percent. The U.S. Hispanic

    population grew dramatically by double digits in

    several states, including in Nevada (82 percent

    increase), Colorado (21 percent increase), Texas (42

    percent increase) and Virginia (71 percent increase),

    and made substantial gains in Arizona and Florida

    as well.

    As native births increase the Hispanic population,

    they also strengthen connections to these specic

    geographic regions. Marketers aiming to engage

    Hispanics must not only keep in mind who they are,

    but also where they are. Content must eectivelycommunicate an understanding o the communities

    where Hispanics liveas well as the important role

    that community plays in their lives.

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    VIVIENDO LA VIDA DIGITALLIVING THE DIGITAL LIFE

    REACHING HISPANIC CONSUMERS WITH MOBILE TECHNOLOGY AND SOCIAL MEDIA

    U.S. Hispanics are avid technology users,

    consistently seeking new and more ecient tools

    to stay connected with amily and riends while

    staying inormed o current events and online

    deals. As a result, marketing through digital, mobileand social media seamlessly integrates with this

    markets technological behaviors. Though U.S.

    Hispanics are increasingly engaging in online

    interaction, 78 percent o companies havent used

    these emerging technologies to connect with this

    market.

    U.S. Hispanics are active Internet users and by 2014

    70 percent o this population is expected to be

    online or 39.2 million people. According to a recent

    SIMM Survey data, U.S. Hispanics have a strong

    presence in social media: showing 54 percent

    are on Facebook and 11.4 percent on Twitter,

    compared to 43 percent and 4.8 percent o the

    overall population. As technological advancements

    continue to evolve, we will see that U.S. Hispanics

    will have a strong infuence on mobile technology

    and social media. Brands that engage with the

    U.S. Hispanic market will see strong results through

    convenient mobile marketing.

    According to a recent study rom Scarborough

    Research, use o mobile phones by U.S. Hispanic

    adults has increased 26 percent since 2006,

    compared to only 18 percent among the general

    public. In addition, the study also ound that 64

    percent o U.S. Hispanics with a mobile phone use

    it or text messaging, compared to 56 percent o

    all mobile users. U.S. Hispanics are also more likely

    to download or listen to music on a wireless device

    (22 percent vs. 15 percent), play games (19 percent

    vs. 15 percent), and access social networks (12

    percent vs. 10 percent).

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    BRANDS THAT ENGAGE WITH THE U.S. HISPANIC

    MARKET WILL SEE STRONG RESULTS THROUGH

    CONVENIENT MOBILE MARKETING.

    Photo provided by Creative Commons/John.Karakatsanis and Creative Commons/Ne

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    THE RELATIONSHIP WITH MAMI BLOGUERAS WILL

    RESULT IN MESSAGING THAT REACHES WELL BEYOND THE

    SCOPE OF THE BLOG, AS ITS READERS WILL ALSO SHARE

    CONTENT AMONG THEIR EXTENDED COMMUNITIES.

    Photo provided by Creative Comm

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    LA INFLUENCIA LATINATHE LATIN INFLUENCE

    THE POWER OF MAMI BLOGUERAS

    More than ever, marketers seek to establish

    relationships with mommy bloggers or their strong

    infuence among amily, riends and the community

    around them. With one out o ve moms in the

    U.S. sel-identiying as Hispanic, brands interestedin expanding their infuencer base should reach

    out to the growing number o U.S. Hispanic Mami

    Blogueras (mommy bloggers).

    U.S. Hispanic bloggers are overwhelmingly emale,

    and ocus primarily on sharing brand inormation,

    reviewing products, communicating with each

    other and oering advice. They have established

    themselves in the U.S. Hispanic online community

    as experts, infuencers and riends. Due to the

    willingness o mami blogueras to share their

    personal stories and ideas in Spanish, English or

    Spanglish, they have a solid ollowing o readers

    who strongly relate to them and actively share their

    contentplacing greater importance on cultural

    relevancy and sensitivity or marketers seeking to

    successully engage with them.

    Brands that want to execute a U.S. Hispanic social

    media campaign should connect with a U.S.

    Hispanic blogger who has strong and consistent

    content in English, Spanish or Spanglish. The

    relationship with mami blogueras will result inmessaging that reaches well beyond the scope

    o the blog, as its readers will also share content

    among their extended communities.

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    EL BUEN SABORGOOD TASTE

    HOW CAN FOOD AND BEVERAGE MARKETING INSPIRE HISPANIC AUDIENCES?

    With 2011 predicted to be a challenging year or

    ood and beverage companies, Hispanic consumers

    look to be a bright spot. According to a 2010 study

    rom the Latinum Network, Hispanics are now the

    most important driver or growth in the ood andbeverage sector. The study nds that between

    2005 and 2008, Hispanic infation-adjusted new

    spending on ood and beverages outpaced that

    o non-Hispanics by $12 billion ($52 billion vs. $40

    billion), driving new spending in categories that are

    otherwise fat or declining: sh and seaood, resh

    ruit juice and dairy products. Latinum also says

    that Hispanics eat out more than non-Hispanics,

    as the younger and more culturally assimilated

    Hispanics drive growth in ast ood and ull-service

    restaurants.

    Hispanics also spend a greater share o their

    household expenditures on ood, 15.3 percent

    vs. 12.5 percent or non-Hispanics, even though

    on average, they earn less than non-Hispanics.

    Why? First and oremost, Hispanics tend to have

    larger amilies. Theres also a greater emphasis

    on amily mealtime and on cooking rom scratch.

    According to Porter Novellis 2010 Styles consumer

    communication-planning database, Hispanic

    consumers are more likely to agree that processed

    oods are less healthy (46 percent vs. 40 percent)

    and less likely to agree that processed oods are

    more convenient (40 percent vs. 50 percent).

    ILENE SMITH, M.S., R.D.EXECUTIVE VICE PRESIDENT, DIRECTOR, FOOD & NUTRITION

    Content that emphasizes reshness can make a

    strong impactas can messaging with a primary

    emphasis in amily and togetherness. Food and

    beverage companies seeking to create eective

    content or Hispanics should draw rom themesthat underscore traditional amily values. Despite

    high prociency in digital and mobile technology,

    Hispanics place special emphasis on tradition,

    a core value maniested daily at meal times.

    With strong ties to amily, and an immigrant

    perspective on the importance o stability and

    providing children with opportunities or a

    better lie, Hispanics see meals as more than

    just consumptionthey are about strengthening

    connection and underscoring values. While the

    media that convey these truths can be quite

    advanced, the messages themselves should be very

    traditional.

    More than ever, American ood and beverage

    brands are succeeding with Latino-infuenced

    product oerings, bilingual packaging, targeted

    promotional eorts or all three. Last summer,

    Budweiser signed on to be the presenting

    sponsor o the U.S. tour o Mexican singer Vicente

    Fernandez or the next three years. Krats Comida

    y Familia eatures a suite o online and social

    media tools or the tech-savvy Latina, while Pepsi

    encouraged Hispanics to tell their personal stories

    last year with its Yo Sumo (I Count) program.

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    HEADLINE TK

    FOOD AND BEVERAGE COMPANIES SEEKING

    TO CREATE EFFECTIVE CONTENT FOR HISPANICS

    SHOULD DRAW FROM THEMES THAT UNDERSCORE

    TRADITIONAL FAMILY VALUES.

    Photo provided by Creative Commons/jess

    Photo provided by Creative Comm

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    HEALTH CARE COMPANIES THAT HOST OPEN FORUMS

    WHERE HISPANICS CAN SHARE THOUGHTS, VALUES AND

    IDEAS WILL POSITION THEMSELVES TO BE LONG-TERM

    CATEGORY LEADERS FOR THE HISPANIC MARKET.

    Photo provided by Creative Common

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    LA SALUD PRIMEROFIRST HEALTH

    HISPANIC HEALTH CARE MARKETING IN THE 21ST CENTURY

    The cultural shit being driven by Hispanics will also

    create some unique challenges and opportunities

    in the delivery o health care and assurance o

    optimal health and wellness in diverse populations.

    For example, the Hispanic senior population isexpected to grow rom two million in 2002 to more

    than 13 million by 2050. They will then account or

    more than 16 percent o the population, the largest

    racial or ethnic minority group in this age range.

    Hispanics are already outpacing other populations

    in prescription drug spending and this will only

    increase as this growing population ages. Hispanics

    constitute a huge market or the providers o

    health care products and services, but only i

    they know how to meet the unique needs o this

    population.

    Most Hispanics receive inormation about health

    care rom traditional media and the Internet (83

    percent), rom a doctor (71 percent) or rom amily,

    riends, churches and community groups (70

    percent), according to a Pew Study on Hispanics

    and health care. Still, 66 percent o English-

    speaking and 43 percent o Spanish-speaking

    Hispanics have greater problems communicating

    with their doctors than other demographics.

    Developing culturally appropriate and actionable

    health inormation and content or Hispanics

    starts with understanding their belies about

    health, how they acquire inormation and what will

    SUSAN HAYES

    PARTNER, DIRECTOR OF GLOBAL HEALTH

    resonate with them. Promotional brochures and

    patient orms should be printed in Spanish and use

    culturally sensitive graphics, but should avoid the

    mistake o word-or-word translations rom English,

    since many concepts and words in English dontconvert easily. In addition, increasing the health

    care industrys current level o activity within social

    media will present unique opportunities to inorm

    and inspire dialogue with and within Hispanic

    communities. Health care companies that host

    open orums where Hispanics can share thoughts,

    values and ideas will position themselves to be

    long-term category leaders or the Hispanic market.

    In addition, partnerships with known, trusted health

    advocacy organizations can be invaluable.

    While providing these opportunities, though,

    organizations must always appreciate linguistic

    and cultural distinctions among Hispanics, who

    come rom areas as distinct and diverse as Puerto

    Rico, Mexico, Central and South America. Hispanics

    should not be considered one homogeneous group.

    Sound market research and segmentation, coupled

    with a deep understanding o the audience,

    is critical when designing health-marketing

    campaigns that will lead to new behaviors. Health

    proessionals and marketers must be aligned

    to provide Hispanics with the kind o culturally

    relevant experience that engages dialogue and

    transorms behavior to benet health. By doing

    so, it is possible to develop a mutually benecial

    relationship that has the potential to create a

    loyaland healthierlielong consumer.

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    PORTER NOVELLI GLOBAL HEADQUARTERS

    75 Varick Street, 6th Floor

    New York, NY 10013

    Direct 212.601.8000

    Fax 212.601.8101

    www.porternovelli.com

    Photo provided by Creative Commons