introducing hispanic gen z

Introducing Gen ZWhy Hispanic Gen Z Will Change Everything

2015March 20,

2Overview

• Introduction• Gen Z Overview• Why Gen Z?• Differences between Gen Z Groups • Points of Tension• Implications for Marketers• What’s Next• Data Sources

Introduction

4Jose R. VillaPresidentSensis

@jrvilla

/in/JoseVilla

ThinkMulticultural.comSensisBureau.com #Sensis360

5BACKGROUND

• Advertising, PR & digital agency• 65 employees• 17 years in business• Independent, minority-owned

and certified • Offices in L.A., DC, Austin, Little Rock, and Atlanta

CAPABILITIES

• Earned Media (Social/PR/Content)• Media Planning & Buying• Creative & Production• Branding• Digital Marketing• User Experience Design (UxD)• Research & Analytics• Strategic Planning

Integrated cross-cultural advertising agency

6Multicultural

Agency

Specialization and expertisein one ethnic group

Often working in a silo and with varying degrees of partnership with

lead agencies.

Digital Agency

Tactically driven

Limited traditional capabilities

Strategically driven

Expertise in building marketing programs that

reach all consumers

Digital is at the core of our servicesStrong technical

background

Marketing targeted to particular ethnic

segments

Starts with the general market then develop

separate distinct ethnic programs

Treat ethnic groups as separate and distinct.

“General Market”Agency

CROSS-CULTURAL IS A MORE EFFECTIVE MODEL

Lack in-depth experience with ethnic marketing

Lack ethnic insights Combine Hispanic, African-American, Asian and “general

market” expertise

7Hispanic Millennial Project5-wave research study into the growing Hispanic millennial segment (18-34 years of age)

Up Next:Wave 4: CPG / Beverage / Food – Behaviors and Attitudes

8

…but Millennials are so yesterday…

9 Groundbreaking research initiative on cross-

cultural Gen Z segment

Designed to understand Hispanic, African-American, Asian and general market Gen Z and their digital behavior

Introducing the Cross-cultural Gen Z Report

Gen Z Overview

11The generation born between 1995 and 2010. This currently puts the “Gen Z”

consumers between the ages of 4 and 20 years old.

Gen Z Defined

12Other labels include:

iGen

Net Gen

Plurals

13The largest generational cohort alive in the U.S.

23%

19%

22%

25%

0%

5%

10%

15%

20%

25%

30%

Baby Boomers Generation X Generation Y Generation Z

% of Total Population

Geoscape, American Marketscape DataStream™ 2014 Series.

14What we know about Gen Z (generally)

• Cautious, price and value conscious, and avoid debt• Independent workers• Over-connected to the point where it impairs their real-life

communication skills• In need of instant gratification• Entrepreneurial and eager to start working• Optimistic about the future• Prefer home-cooked meals• DIYers and crowdsourcers

Sources: Sparks & Honey; Magid Generational Studies; Terradata

15The most ethnically diverse generation

Asian5%

African American

14%

Hispanic23%

2 or more races5%

Non-Hispanic White53%

Gen Z

The last generation where Non-Hispanic Whites make up the

majority.

Source: U.S. Census, ACS 2011-13 3 Year Estimates

Introducing Hispanic Gen Z

17Hispanic Gen Z research is virtually nonexistent beyond top-line data regarding their ethnic makeup and nativity

18Gen Z makes up the largest Hispanic cohort living in the U.S.

5%

14%

19%

27%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

The Silent/TheGreatest

Generation

Baby Boomers Generation X Generation Y Generation Z

% of Total Hispanic PopulationGeoscape, American Marketscape DataStream™ 2014 Series.

19Hispanic Gen Z have the largest percentage of Millennial parents

STUDY NAME : Fall 2014 NHCS Adult Study 12-month

38%

29%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Hispanic Non-White Hispanic African American or Asian

% of Gen Z Parents that are Millennial

20Majority of Hispanic Gen Z parents were born outside of the U.S.

39%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

Were you born in the U.S.?


21Unlike their parents, majority of Hispanic Gen Z were born in the U.S.

9%

91%

0%10%20%30%40%50%60%70%80%90%

100%

Foreign Born (Under 18) Native Born (Under 18)

% of Total Hispanic Pop Under 18

Source: U.S. Census Bureau, 2006-2010 American Community Survey

22As a result, Hispanic Gen Z are more likely to prefer English, vs. their older Hispanic counterparts

75%

8%16%

33%

46%

21%

35%

50%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

English Dominant Spanish Dominant Both English and Spanish Equally

Language Spoken in Home

Gen Z Hispanic (12-17)

Hispanic Millennial (21-34) Parent of Children ages (4-17)

Hispanic Gen X (35-50) Parent of Children ages (4-17)

STUDY NAME : Fall 2014 NHCS Adult Study 12-month and Fall 2014 NCS Teen Study 12-month

23Hispanic Gen Z Parents have a desire to preserve their cultural roots

52%57% 55%

79%

57%

0%10%20%30%40%50%60%70%80%90%

I often celebrateholidays from

Hispanic countries

I try to keep up withLatin music, news orsports from Hispanic

countries

I often encourageHispanic children to

participate intraditional Hispanicgames and activities

I believe it isimportant to teachSpanish to Hispanicchildren as a way to

help preserveHispanic culture

Speaking Spanish inour home is a priority

Hispanic Parents with Children (4-17)


24Yet, Hispanic Gen Z parents find it important to assimilate into the U.S. culture as well

79%

64% 64%56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

I often celebrate U.S.National Holidays such as

the Fourth of July andPresident's Day

I try to keep up withAmerican music, news or

sports

I enjoy living the Americanlifestyle and customs

Speaking English in ourhome is a priority

Hispanic Parents with Children (4-17)


25Being born in the U.S. and growing up in the most diverse generation is altering their world view and

redefining the culture in which they live.

Differences Between Gen Z Groups

27Comparing Gen Z Cohorts

28Hispanic Gen Z emphasize physical

relationships

29Similar to other Gen Z cohorts, Hispanic Gen Z rely on technology to stay connected with friends and family

43%

60%

48%

65%

47%51%

63%

79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

My cell phone connects me to my social world I like to be connected to my friends and famiywherever I am

Hispanic or Latino (12-17) Non-Hispanic White (12-17) African American (12-17) Asian (12-17)

STUDY NAME : Fall 2014 NCS Teens Study 12-month

30However, Hispanic Gen Z are less dependent on technology to maintain physical relationships

26%

34%

40%45%

26%

48%

63%60%

0%

10%

20%

30%

40%

50%

60%

70%

My friendships would not be as close as they arewithout my cell phone

Texting is just as meaningful to me as an actualconversation with the person on the phone



31Hispanic Gen Z are less likely to see

themselves as leaders

32Hispanic Gen Z have less of a desire to create their own path

42%

53%

46%

57%

0%

10%

20%

30%

40%

50%

60%

I like to travel the path that no one else usually takes



33Similar to African Americans, Hispanic Gen Z are less confident in their ability to influence and lead

28% 30%

38%40% 42%

52%

28% 30%34%

20%

59%63%

0%

10%

20%

30%

40%

50%

60%

70%

I am often chosen to be thespokesperson in my group

I am good at leading discussions I am good at convincing others to trynew things

Hispanic or Latino (12-17) Non-Hispanic White (12-17) African American (12-17) Asian (12-17)STUDY NAME : Fall 2014 NCS Teens Study 12-month

34Many Hispanic Gen Z don’t intend to start a

family

35Hispanic Gen Z are more likely to indicate that they enjoy being with family and that they get along with their parents

84%78%81%

74%77%

63%

95%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

I get along with my parents I really like to be with my family

Hispanic or Latino (12-17) Non-Hispanic White (12-17)

African American (12-17) Asian (12-17)


36However, many Hispanic Gen Z are less likely to indicate that they would like to start their own family

70%

78%

68%

81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Eventually, I would like to have my own family



37Gen Z Hispanic have a strong

entrepreneurial spirit

38Both Hispanics and African Americans show a strong entrepreneurial spirit

59%

31%

60%

0%

10%

20%

30%

40%

50%

60%

70%

Expect to work independently

Hispanic or Latino White African American

Source: Meet Generation Z, Northern University, November 18, 2014

39Hispanic Gen Z and their Parents

40Hispanic Gen Z have less of a religious

preference

41Compared to their parents Hispanic Gen Z are showing less of a preference for Catholicism

43%

17%

60%

13%

0%

10%

20%

30%

40%

50%

60%

70%

Catholic No religious preference

Hispanic or Latino (12-17) Hispanic Parents with children (ages 4-17)


What is your religious preference?

42Hispanics 18+ are shifting their preference away from Catholicism

67%

55%

12%16%

10%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2010 2013Catholic Evangelical Protestant Unaffiliated

Source: Pew Research Center survey of Hispanic adults, May 24-July 28, 2013

% of Hispanics who identified as Catholic/Evangelical/UnaffiliatedAll Hispanics (18+)

43Hispanic Gen Z have a stronger desire to

disconnect from technology

44Compared to their parents Hispanic Gen Z have a stronger desire to disconnect from the Internet

45%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

At times, I feel like I need to disconnect or take a break from the internet

Hispanic or Latino (12-17) Hispanic Parents with Children (ages 4-17)


45Hispanic Gen Z are less likely to shop online

and use technology to aid them while shopping

46Compared to their parents Hispanic Gen Z are less likely to do their shopping online

16%

25%

0%

5%

10%

15%

20%

25%

30%

All things being equal, I am more likely to purchase a product online than in the store

Hispanic or Latino (12-17) Hispanic Parents with Children (4-17)


47Hispanic Gen Z are also less likely to use technology to aid them throughout the shopping process

17%

37%

22%

42%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

When I am shopping, I often use mymobile/handheld device to search for local deals

When I see something interesting on tv, I often goonline to find out more about it

Hispanic or Latino (12-17) Hispanic Parents with Children (12-17)


Points of Tension

49 One of the most important ways to establish

a deeper understanding of Hispanic Gen Z is to comprehend the points of tension characterizing their lives.

As marketers, we know points of tension provide powerful opportunities to communicate and connect with consumers.

Points of Tension

50Due to cultural differences, Hispanic Gen Z are more likely to have different views to their parents

42%

21%

37%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

My ideas are very different from my parents ideas My parents do not understand me



51More likely to feel restricted and have an increased desire to disconnect from others

56%60%

67% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I have a lot of freedom I like to be connected to my friends and family wherever I am



52Desire to stand out, but feel uncomfortable being the center of attention

27%

35%

23%

33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

I like to stand out in a crowd I hate being the center of attention



53Uncomfortable with conforming, yet more concerned with being seen as different

35%

58%

29%

61%

0%

10%

20%

30%

40%

50%

60%

70%

Being like others makes me uncomfortable I am not afraid to appear quite different from others



54Enjoying life in the present versus having increased pressure to be successful

26%

83%90%

33%

80%88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

I like to enjoy life and don't worry aboutthe future

Having a career is very important to me I would like to go to college



55Tired of the usual, but not comfortable with exploring the unknown

31%

43%48%

43%

53%

64%

0%

10%

20%

30%

40%

50%

60%

70%

I like to follow a routine I like to travel the path that no one else usuallytakes

I am adventurous



56Some additional points of tension

57Digital native and tech savvy, but

ambivalent and want to disconnect

Technology

58Means to end for me not necessarily a

pursuit to please others, society, parents, or someone else

Education

Implications for Marketers

60Gen Z aren’t just consumers of the future

In many categories, Gen Z is sweet spot today

(higher education, media, energy drinks, apparel, QSR, etc.)

Food & Beverages

62Hispanic Gen Z are more likely to indicate that they go grocery shopping

56%

48%

55%

24%

0%

10%

20%

30%

40%

50%

60%

Yes



63Similarly to African Americans, Hispanic Gen Z indicate that they go grocery shopping frequently


44%

34%

43%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Most or some of the time


64Hispanic Gen Z are more likely to report that they do their shopping with their parents


46%

42%

46%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

With Parent(s)


65Similar to Asians, Hispanic Gen Z are more likely to spend a higher weekly average on groceries

48%44%

32%

60%

0%

10%

20%

30%

40%

50%

60%

70%

$150 or more



66Hispanic Gen Z make up an important

part of the grocery shopping experience and have are more likely to influence

household purchases

Implication

Quick Service Restaurants

68Compared to other Gen Z cohorts, Hispanic Gen Z are less interested in healthier fast food trends

30%

43%40%

56%

0%

10%

20%

30%

40%

50%

60%

I like the trend towards healthier fast food



69Hispanic Gen Z remain open to traditional

fast food options.

Implication

Higher Education

71Hispanic Gen Z see the value in college, but are concerned about the costs

88%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

I would like to go tocollege

I enjoy going to school

Hispanic or Latino (12-17)

76%

64%68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Being able to afford college

Hispanic or Latino White

African American

Thinking about different topics or issues that you might pay attention to, how concerned are you about each of the following?



72Hispanic Gen Z want colleges to allow them to design their own major

81%

68%73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Agree

Hispanic or Latino White African American

Now, please indicate whether you agree or disagree with the following: Colleges should allow students to design their own course of study or major.


73Emphasize not only the aspiration, but the

practicality of higher education.

Implication

Technology

75Hispanic Gen Z are less reliant on technology to become knowledgeable on different things

29%35% 37%

65%

0%

10%

20%

30%

40%

50%

60%

70%

The internet helps me to become an expert in many things

Hispanic or Latino (12-17) Non-Hispanic White (12-17) African American (12-17) Asian(12-17)


76Hispanic Gen Z are less interested in websites that track their user behavior and offer product suggestions

25% 27%

34%

54%

0%

10%

20%

30%

40%

50%

60%

I like websites that provide product suggestions based on what I have looked at or purchased in the past



77Hispanic Gen Z don’t mind consuming entertainment through a portable device

46%43%

38%

66%

0%

10%

20%

30%

40%

50%

60%

70%

I do not mind watching tv, movies or other video content on portable devices with smaller screens


78Similar to African Americans, Hispanic Gen Z are less likely to rely on the Internet as their primary source for entertainment

45%51%

41%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

The internet has become a primary source of entertainment for me personally




79Marketers should temper their emphasis

on the “shiny and new” and position products on how useful the product is.

Implication

Media and Entertainment

81Similar to Non-Hispanic Whites, Hispanic Gen Z learn a lot from television

34%36%

29%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

I learn a lot from TV



82Hispanic Gen Z are more likely to indicate that music is a passion for them and that they have a wide taste in music

54% 54%49% 50%

45% 44%

64%

16%

0%

10%

20%

30%

40%

50%

60%

70%

Music is a passion with me I have a wide taste in music



83However, Hispanic Gen Z are less likely to feel that they are in touch with the music scene

28%

38%33%

63%

0%

10%

20%

30%

40%

50%

60%

70%

I feel I'm in touch with the music scene




84Hispanic Gen Z are similar to other Gen Z counterparts in their love for movies

69% 68%72%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I love going to the movies




85Yet, Hispanic Gen Z are more likely to notice commercials that play along with the movie previews

47%

40%

35%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

I often pay attention to the commercials that play along with the movie previews in the movie theater



86Marketing should not seek to only

persuade, but also tell stories, entertain, and engage Hispanic Gen Z through

across multiple platforms.

Implication

87In most other categories, they are in the critical brand preference formation years, as many of them are finishing high school and starting college

(financial services, healthcare, electronics, automotive, etc.)

Financial Services

89Hispanic Gen Z have similar views on saving to other AA and NHW Gen Z

52%59%

47%

55%61%

50%44%

41% 40%

75%81%

74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

I am good at saving money I like saving money I am very careful with my money



90However, compared to Non-Hispanic Whites, Hispanic Gen Z are less likely to have a bank account

30%

63%

7%

53%

37%

10%

34%

59%

7%

25%

64%

11%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Don't Know/No AnswerHispanic or Latino (12-17) Non-Hispanic Whites (12-17)



Do you have a bank account?

91Similar to African Americans, Hispanic Gen Z are less likely to want to save their money at home

46%51%

46%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I like to save my money at home



92Hispanic Gen Z are more likely to indicate that they do not have a job

86%79% 81%

92%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No

Hispanic or Latino (12-17) Non-Hispanic Whites (12-17)


Do you work?


93Similar to African Americans, Hispanic Gen Z are less averse to debt

67%74%

64%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

I don't like the idea of being in debt

Hispanic or Latino (12-17) Non-White Hispanics (12-17) African American (12-17) Asian (12-17)


94There is an opportunity for banks to educate Hispanic Gen Z early on the

different services they offer and emphasize the benefits of investing in the

bank.

Implication

Health and Wellness

96Compared to Non-Hispanic Whites Hispanic Gen Z are more likely to watch what they eat and try to lose weight


45%41%42%

29%

52%

38%

66%

48%

0%

10%

20%

30%

40%

50%

60%

70%

I try not to eat too much I often try to lose weight


97However, Hispanic Gen Z are less likely to place importance on a well-balanced diet

44%

59% 60%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

It's important to eat a well balanced diet



What’s Next

99

Cross-cultural Gen Z Report coming Fall 2015!

Data Sources

101Sources

• Experian Simmons Fall 2014 NCS Teens Study 12-month• Experian Simmons Fall 2014 NHCS Adult Study 12-month• Meet Generation Z, Northern University, November 18, 2014 • Sparks & Honey; Magid Generational Studies• Pew Research Center survey of Hispanic adults, May 24-July

28, 2013• Terradata• U.S. Census Bureau, 2006-2010 American Community

Survey• Geoscape, American Marketscape DataStream™ 2014 Series

102Jose R. VillaPresidentSensis

@jrvilla

/in/JoseVilla

ThinkMulticultural.comSensisBureau.com #Sensis360

103More Information

www.sensisagency.com www.twitter.com/sensisagencywww.facebook.com/sensisagencywww.linkedin.com/company/sensis_2

introducing hispanic gen z

Marketing

gen zwhy hispanic gen

gen z consumers

general market gen z

crosscultural gen z

gen zthe

gen z defined12other

nativity18gen z

ethnic groupoften