hispanic cyberstudy 2010

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Hispanic Cyberstudy Marketing to the web’s most rapidly growing population

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This booklet will show you the market segmentation of Online Hispanics based on acculturation, life stage group, and other factors. Created by the 360 Creative Team at AOL, composed by Liz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick.

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Page 1: Hispanic Cyberstudy 2010

Hispanic Cyberstudy

Marketing to the web’s most rapidly growing population

Page 2: Hispanic Cyberstudy 2010

Hispanic CyberstudyMarketing to the web’s most rapidly growing population

A study by AOL Advertising & Cheskin:Why and how are Hispanics using the internet in their daily lives?

Quantitative MethodologyTelephone Survey:717 Hispanic households across the US (90 via cell phone)

Online Survey:616 Hispanic households across the US634 General Market across the US

For years, marketers have struggled with the complexities of the Hispanic market. Given the blistering growth of their population and subsequent rise in purchasing power, AOL wants to help marketers and agencies understand the changing Hispanic market, and improve their advertising performance with this segment.

To stay ahead of market trends, AOL Advertising commissioned Cheskin Added Value to conduct research about Online Hispanics. This is a continuation of a study AOL began in 2004.

Page 3: Hispanic Cyberstudy 2010

The basics

Page 4: Hispanic Cyberstudy 2010

Experts anticipate that the US will be more diverse than ever, with only 22% of households expected to be the iconic American family of mom, dad and kids. The Hispanic population is expected to be much younger compared to other racial groups.

America, the diversifiedA forecast of the 2010 Census

50 Million Hispanics will be living in the US

Nearly one in six US residents will be Hispanic

Los Angeles County is expected to be home to the largest Hispanic population in the US – exceeding that of Costa Rica

SOURCE: Francese, Peter. (2009). 2010 America: What the 2010 Census means for Marketing and Advertising. Advertising Age. Retrieved from http://adage.com/

Page 5: Hispanic Cyberstudy 2010

• Predominantly speak Spanish at home

• Most media consumption in Spanish

• Foreign-born

• Mean age 40

• Lived in the US seven years average

Hispanic Dominant• Speak both languages

at home

• Most media consumption in English

• Foreign and US-born

• Mean age 34

• Lived in the US 22 years average

Biculturals• Speak English at home

• Most media consumption in English

• US-born

• Mean age 37

• Lived in the US 36 years average

US Dominant

Currently, marketers tend to divide Hispanics into three different categories: Hispanic Dominant, Bicultural and US Dominant. Offline, the sizing of these groups is reversed, with Hispanic Dominants representing 52% of the segment, Biculturals 19% and US Dominants 28%.

The American Yardstick Market segmentation of Online Hispanics based on acculturation

46%31%23%

Page 6: Hispanic Cyberstudy 2010

A Different MeasureSegmenting by life stage group

Segmentation by life stage provides another way to understand the values and interests of Hispanics, based on their preferences and behaviors, which are not necessarily unique to their cultural background or acculturation level.

Young and Free

Young Family

Mature Family

Prime of Life

Empty Nester

2 Kids (0-11)Average 33 YOMarried

2 Kids (12-17)Average 40 YOMarried

No KidsAverage 41 YOMarried

Kids 18+Average 57 YOMarried

30%

17%

23%

18%

13%

No KidsAverage 26 YOSingle

Page 7: Hispanic Cyberstudy 2010

Pursuing passions online

Page 8: Hispanic Cyberstudy 2010

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Page 9: Hispanic Cyberstudy 2010

Since our first study in 2002, the number of Hispanics online has grown significantly – faster, in fact, than the total US online population. The online adoption gap between Hispanics and the General Market has narrowed to 13 points over the past few years.

Entering the mainstreamInternet usage among Hispanics is catching up to the general population

*Note: General Market data provided by PEW Research Center in July 2008; Hispanic data provided by AOL Advertising Cyber Study in July 2008.

2002 200975%

65%

45%

55%

35%

71

58

Hispanic General Market

41

57

Page 10: Hispanic Cyberstudy 2010

Both offline and online Hispanics are much younger than the general population, with larger households and younger children. 46% of Online Hispanics are under 35 years old, compared to just 28% of the US internet population. Meanwhile, 30% of the General Market online population are empty nesters – only 13% of Hispanics fall into this group.

Who are they?Hispanics vs. General Market users

AGE: 37HOUSEHOLD INCOME: $50K+CHILDREN: YES! Sandra 6 and Danny 5

AGE: 46HOUSEHOLD INCOME: $75K+CHILDREN: YES! Stephanie, 22

Hispanic General Market

Page 11: Hispanic Cyberstudy 2010

Young Hispanics log on most

100%

50%

0%

7766

56

44 40 673423

60

33

Young and Free Young Family Mature Family Prime of Life Empty Nesters

Online Offline

Online Hispanics are younger than their offline counterparts, who are also more likely to be empty nesters.

Page 12: Hispanic Cyberstudy 2010

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Hispanics are more enthusiastic about the benefits of the internet than the General Market – so much so that they have more confidence in

online product ratings than the opinions of their friends.

Hispanics love and trust the internet

Friends’ Opinions

28%Product Rating Sites

72%

Page 13: Hispanic Cyberstudy 2010

64 51 57 43 27 1544 25 36 30The best place to keep up with current events

Always go to the internet to find deals

Use the internet to keep up with pop culture

Internet is an important tool for building a better life

A great place to meet people with similar views

Hispanic General Market

They view the internet as a place of discovery and connection

Hispanics have a high regard for the internet as a medium for information and socialization. Fully one-third of all Hispanics, regardless of acculturation and life stage, view the internet as a key component in building a better life.

Page 14: Hispanic Cyberstudy 2010

The internet informs their purchase process

Hispanic consumers view the internet as a very important information source in the purchase decision-making process. They look to the internet to learn about products, brands, features, stores and pricing.

90%

85%

80%

75%

70%

Hispanic General Market

Start learning process

Learn about brands

Learn about features

Get advice on what to

buy

Where to buy

Compare prices

Make final decision

Page 15: Hispanic Cyberstudy 2010

100% vs 100% 18% vs 11%

Not only are they technology leaders...

Compared to the General Market, Hispanics are more sophisticated technology users. Their use of a wide range of devices (e.g. smartphones and gaming devices) to access the internet illustrates a high level of comfort with and willingness to try new technologies.

32% vs 20%

Hispanic vs. the General Market:How they access the internet

Page 16: Hispanic Cyberstudy 2010

27 13 36 22 33 24Early adopters Considered tech expert

by friends and familyKeep up with the latest technology

Compared to General Market users, Online Hispanics are more adventurous and eager to try new media communication formats and technologies. They also keep up with the latest tech news, and like to help friends and family with their purchases.

...Hispanics are early adoptersHispanic General Market

“Online Hispanics are eager and adventurous.”

Page 17: Hispanic Cyberstudy 2010

Hispanics are universally embracing new technologies regardless of their acculturation level. Furthermore, contrary to common stereotypes, the most acculturated Hispanics are not necessarily the most technologically savvy. In fact, less acculturated Hispanics tend to be early adopters, evaluating new formats and spreading the word in their communities.

Everything you know is wrongAcculturation doesn’t equate with technological sophistication

29% 35% 34%

41% 40% 31%

41% 25% 22%

PC access

Keep up with the latest technology

Considered tech expert by friends

and family

Early adopter

100% 100% 100%

Hispanic Dominant US DominantBicultural

Page 18: Hispanic Cyberstudy 2010

A look at the future

Page 19: Hispanic Cyberstudy 2010

One-fifth of Online Hispanics are power users who give us a glimpse of future adoption by mainstream users. This group spends over 24 hours per week on the web, connecting over half the time via mobile (57%) or other devices (47%). They also view themselves as innovators, keeping up with the latest technology (100%), serving as tech experts to friends and family (100%) and adopting new technologies first (100%).

The Hispanic power user

AGE: 34GENDER: MaleEMPLOYMENt: Full-timeFAMILY StAtUS: Married with young kidsHOURS ONLINE: 24 hrs/week

Page 20: Hispanic Cyberstudy 2010

Power users are also highly influential in their communities, spreading the word about deals (91%) or the latest entertainment news (87%). They are content creators and use the web to broadcast their point of view, while mainstream Hispanics are more traditional in how they communicate with others.

Catching the viral bug

Traditional Viral

Via email (message or link)

Over the phone/in-person

IM to friends/ family

Write a blog

Social networking site

Write a review on a review site

Power User Mainstream Hispanics

79%

64%

52%

68%

28%

38%

91%

51%

21%

55%

6%

55%

Page 21: Hispanic Cyberstudy 2010

Connecting through life stages

Page 22: Hispanic Cyberstudy 2010
Page 23: Hispanic Cyberstudy 2010

To date, messaging for the Hispanic community has been organized around acculturation and language. While 75% of Hispanic Dominants prefer product marketing information in Spanish, there is an overwhelming preference among Bicultural and US Dominants for marketing in English.

The old viewtraditional marketing to Online Hispanics

99

8812

25

75

1

HispanicDominant

US Dominant

Bicultural

0 20 40 60 80 10010 30 50 70 90

Spanish English

Page 24: Hispanic Cyberstudy 2010

If we look at the language preference for websites by life stage, English marketing messages are favored by virtually all of the youngest Hispanics and most of the other market segments. This has important implications for marketers, who should always take into consideration their target segment’s needs and passions before determining the appropriate language/media mix.

A new perspectivethe importance of life stages

Spanish English

100%

0%

50%

65.6 56.9 81.271.696.8

43.1 18.8Young and Free Young Family Mature Family Prime of Life Empty Nesters

Marketers should always take their target audience’s life stage into account before determining the language/media mix.

34.428.43.2

Page 25: Hispanic Cyberstudy 2010

Can you say it in English?

Can’t do all the same things on Spanish site

The English site is better / more comprehensive

English site has more detail than the Spanish Site

English site has more useful information

English site has better deals than the Spanish

25.3%

23.1%

21.1%

17.9%

8.8%

In general, Hispanics recognize the disparity between the availability of English and Spanish language content. They perceive English sites as more comprehensive, detailed and useful than Spanish-language counterparts. This belief is prevalent across all levels of acculturation and life stages.

Page 26: Hispanic Cyberstudy 2010

The preference for English among the younger segments is also influenced by the demographic composition of Bicultural and US Dominant Hispanics, who tend to be younger and more engaged in the digital lifestyle – making them the sweet spot for most advertisers.

Biculturals and US Dominants are younger

14

21

39

215

Hispanic Dominant100%

50%

0%

Bicultural

25

18

27

9

21

US Dominant

27

15

32

620

Young and Free Young Family Mature Family Prime of Life Empty Nester

Page 27: Hispanic Cyberstudy 2010

A closer look: Audience perspective

Page 28: Hispanic Cyberstudy 2010
Page 29: Hispanic Cyberstudy 2010

Media consumptionOnline Hispanics prefer English language online media

Source: Internet World Stats. (2009). Top 3 Internet Languages. Retrieved December 8, 2009 from www.internetworldstats.com/languages.htm

Hours Online in English Hours Online in Spanish

Most Hispanics consume online media in English – even Hispanic Dominants. This reflects the greater availability of English language sites. This is not unexpected, as 27.6% of web content is created in English, with Chinese second at 22.1% and Spanish a distant third at 7.9%.

Hispanic dominant

14.36 9.3Bicultural

12.42 2.5US dominant

20 3

Page 30: Hispanic Cyberstudy 2010

The chart above shows the language consumption patterns among consumers who prefer Spanish. Clearly, they will consume similar types of content in both languages. This suggests that Online Hispanics are not opting for one language over the other. Rather, they’re looking for the best online experience regardless of language.

A tie between tonguesOnline Hispanics seek out the best experience

% Consume content in English multiple times per week

% Consume content in Spanish multiple times per week

60

45

30

15

00 15 30 45 60

Keep Up With Home Country News

Keep Up With US News

Entertainment News

Financial Information

Follow Passions & Hobbies

Research Purchases

Page 31: Hispanic Cyberstudy 2010

One of the reasons why so many Hispanics prefer English content is their mistrust of sites in Spanish, which often are little more than literal translations of English content. Only 3% of respondents found Spanish language sites more trustworthy and useful than those in English, leaving an important percentage of the Hispanic segment feeling underserved.

Quality mattersHispanics distrustful of Spanish language sites

2.8%

3.1%

I trust the Spanish Site More

Spanish site has more useful information

Page 32: Hispanic Cyberstudy 2010

When Spanish is preferred…Do it well

44 56

It reflects my experience in the US

24 75

It takes into account my ties to home country

It’s more important than just straight translation

51.9 47

% Consume content in Spanish multiple times per week

It Matters Very Important

Those who prefer Spanish marketing find that tailored content makes them feel closer to home. They also favor a meaningful transcreation over a literal translation of an English site.

0 20 40 60 80 100

Page 33: Hispanic Cyberstudy 2010

Even where there is a high preference for English content and marketing – particularly among young Hispanics – a remarkable 66% of the audience finds it important that content takes into account their home country and their experience in the US.

When English is preferred...Don’t generalize – be relevant

% Consume content in English multiple times per week

0 20 40 60 80 100

It Matters Very Important

It reflects my experience in the US

3333

It takes into account my ties to home country

3336

Page 34: Hispanic Cyberstudy 2010

Appearance countsBe respectful with creative executions, images

Media representation issues become more important for more acculturated and younger Hispanics. Imagery should be carefully selected to provide positive identification with culture without stereotyping.

0 20 40 60 80 100

It has pictures of people who look like me

For those who prefer Spanish marketing

40.8%For those who prefer English marketing

57%

Page 35: Hispanic Cyberstudy 2010

For more information, please send your request to [email protected]

Summary

Hispanics are influencing the mainstreamOnline Hispanics have

proven to be tech-savvy media trendsetters.

Life stage is keyYour language/media mix

should be based on the life stage of your consumer.

tailor your message to their experience

Hispanics prefer messaging that takes into account their

backgrounds and experiences.

Page 36: Hispanic Cyberstudy 2010

Notes

Page 37: Hispanic Cyberstudy 2010

the teamLiz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick

Special thanks to the 360 Creative Team at AOL for producing this booklet, Guy Garcia for his feedback and time, Rebecca Abravanel for answering all of our questions, and Olivia Maloney, Miguel Ferrer and Edgar Ochoa for sharing their Hispanic expertise.