state of the african american consumer

7/29/2019 State of the African American Consumer

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TABLE OF CONTENTS

About the Report ....................................................................................................1

Executive Summary ................................................................................................1

Letter From National Newspaper Publishers Association Chairman ................2

Letter From Nielsen Vice Chair ............................................................................ 3

Section One: Our HouseDemographics ....................................................... 4Population Trends .............................................................................................4

Income ...............................................................................................................6

Education ...........................................................................................................7

Marriage and Divorce Rates .............................................................................8

Children..............................................................................................................9

Section One: Opportunities .............................................................................9

Section Two: What African-Americans Watch ..................................................10Television Viewership .....................................................................................10

Mobile Phones ................................................................................................. 12

Trends in Advertising Spend and Effectiveness ............................................14

Online ..............................................................................................................16

The Movie Screen ............................................................................................ 17

Section Two: Opportunities ........................................................................... 17

Section Three: What African-Americans Buy ....................................................

18Buying Power ...................................................................................................18Shopping Habits .............................................................................................. 19

Store Channel Frequency ...............................................................................19

Buying Habits ..................................................................................................20

Section Three: Opportunities .........................................................................20

Summary ..............................................................................................................21

Cover Photo Credit iStockphoto.com/Stalman


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ABOUT THE REPORT

EXECUTIVE SUMMARY

This report, the rst of three annualinstallments, attempts to provide afairly complete picture of the African-American consumer. The compilation of

this information in one place representsan effort to understand an important andourishing market segment. The reportprovides in-depth and exciting insightsinto the demographic changes occurringwithin the African-American population aswell as some of their buying behavior andmotivating inuences.

Consumers should look to use thisinformation to analyze their collectivepreferences and to understand theinuences they have on media and the

marketplace. Secondly, they can usethe report to understand the economicrelationship their patronage and buyingpower has on business.

Businesses can use the information to makea greater investment in African-Americancommunities and to expand their marketshare with a demographic group that hashigh growth potential and above averagebrand loyalty buying behavior.

African-American or Black?

It is important for marketers to recognize and understand the full diversityof the Black population in the United States. African-Americans representthe majority (89%) and are a driving force in the Black community. TheU.S. Black population includes those that describe themselves as Black; allnationalities that represent the Black Diaspora, (for example those who areJamaican or Nigerian); as well as persons who dene their racial backgroundas a combination of Black and another race. For the purposes of this reportwe are using the term African-American to describe the Black population.

In more than 100 countries around theworld, Nielsen provides clients with themost complete understanding of whatconsumers watch and buy. As businessexecutives look for opportunities to growtheir companies and gain market shareit is critical that they understand newand emerging demands from consumers,

especially within growing segments,wherever they do business. As thepopulation of the United States evolvesto become more ethnically diverse, thecomplexity of such an effort has grown.To help close the gap and give insightas to how to address the needs of the

growing diverse base, Nielsenalongwith the National Newspaper PublishersAssociation (NNPA)has developed thisreport to better illustrate the qualitiesof the African-American community, thebusiness opportunities that exist, and thebest methods for a productive connectionbetween businesses and this community.

The African-American population is,today, the largest racial minority groupin America, with a population of closeto 43 million. This market segmentsgrowth rate continues to exceed theoverall populations growth and is makingcontinued gains in the area of education

and income. The collective buying powerof the African-American population isprojected to be at $1.1 trillion by 2015.Collectively the group over-indexes inseveral key categories (television viewing,mobile phone usage and trips to grocerychannels) and exerts a large inuence onpopular culture and trends, indicative of

the high growth industries of the future.The three areas we have chosen to focuson for this report include a review ofdemographic characteristics, a survey ofthe programs and mediums favored bythe group, and a look at overall consumerpackaged goods buying behavior.

It is important for marketers

to recognize and understand

the full diversity of the

Black Population.

88.8% African-American

7.5% West Indian

2.1% Sub-Saharan African

0.8% Central American

0.4% Asian

0.3% Black Hispanics

Copyright 2011 The Nielsen Company. 1


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When Nielsen has a stable and reliable base of participants

it ensures they can provide major corporations with the

most inclusive and comprehensive analytical insights,

trends and forecasts possible.

Letter from Cloves Campbell,Chairman, National NewspaperPublishers Association (NNPA)

We have chosen to collaborate with Nielsen and focus on the African-American consumer because of the growing economic potential of our community andthe opportunity for more focused marketing efforts across Fortune 500 corporations.Too often, companies dont address the inherent differences of our community, are notaware of the market size impact, and have not optimized efforts to develop messagesbeyond those that coincide with Black History Month or other traditional themes. Oncewe learned of the powerful analytic insights Nielsen has about our community, weknew we couldnt keep it to ourselves.

Throughout history the Black Press has been the voice of the Black community. If astory or event of concern to our community has not been reported or commented on inour papers, then it must not be relevant. As Black radio ownership has diminished andtelevision programs of African-American content continue to disappear, the Black Pressis now more relevant than ever before and is still the most effective way for reachingmillions of African-Americans because they trust us. Its a trust weve spent more thana century building and by inviting Nielsen to collaborate with us, its a transferabletrust. With this report Black business operators and owners, local and national civic andlegislative leaders, as well as everyday consumers can see at a glance the power of theirpurchasing decisions and habits and determine how to better harness that power.

Our collaboration with Nielsen is important because it helps raise awareness of theimportance of multicultural participation in their studies, panel and surveys. WhenNielsen has a stable and reliable base of participants, it ensures that they can providemajor corporations with the most inclusive and comprehensive analytical insights,trends and forecasts possible. It is our hope that such knowledge will lead businessesto better understand and engage with our communities to develop stronger businessplans and marketing strategies that will increase their market share, and ultimatelytheir revenue, in industries and categories with the highest sales potential for African-American consumers.

If you are one of the 19 million readers who has received a copy of this report throughyour local NNPA publication, we trust that you will remember it was Nielsen and theBlack Press that brought this information to your doorstep. We encourage you to shareit with others and use it to guide your expectations when determining what companiesare deserving of your hard earned dollars.

Cloves Campbell

2 Copyright 2011 The Nielsen Company.


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Letter from Susan Whiting,Vice Chair, Nielsen

On behalf of Nielsen, it is my pleasure to present this report showcasingthe buying and media habits and consumer trends of African-Americans in the UnitedStates. This report represents the multi-year alliance Nielsen has with the NationalNewspaper Publishers Association. As part of this alliance, Nielsen is committed todeveloping a new report each year for the next three years. Our alliance with NNPAprovides us the opportunity to distribute the valuable insights contained within thesepages to readers of NNPAs 200 member publications. The objective is to create asingle, comprehensive report that can be used to document important data, trends andinsights on this very key market segment.

In remarks made to a group of clients earlier this year, Nielsen CEO David Calhounstated, Understanding and promoting diversity is critical to our business because itenables us to better meet the needs of our clients. One of my priorities is to advancethis mandate to help our clients respond to the challenges and opportunities that ariseas the face of America changes. The best way we can do that is to provide them with aholistic overview of an audience that has incredible purchasing power.

Likewise, this report, and the bi-weekly column that appears in local NNPA newspapersacross the country, gives Nielsen the chance to communicate a clear picture of African-American buying power. It is our hope such information is helpful in shaping the

informed decisions consumers make about the companies they want to support.Nielsen owes much to our devoted external African-American Advisory Councilmembers who urge us to, tell the Black consumer story! As prominent leaders ofindustries and communities across the country, they have long touted the value ofsharing these insights. We hear their passion and appreciate their vision and foresight.We hope that you nd this report to be the valuable personal and business tool thatweve intended it to be.

Susan Whiting

Nielsen owes much to our devoted external African-

American Advisory Council members who urge us to,

tell the Black consumer story!



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Population Trends

The African-American community makesup 13.6% of the population of the UnitedStates and is projected to reach 14%

over the next 10 years. This equates topopulations of 42,071,000 and 47,587,000for 2010 and 2020, respectively. Thegrowth rate for African-Americansoutpaces that of the total populationby almost 30% and reects not only anincrease in people, but also their afuenceand inuence.

The average age for African-Americansis 32.1 with more than 47% under theage of 35. African-Americans and otherminorities make up a large percentage of

the United States younger population.These young Americans represent a higherpercentage of future minority consumersand customers. They may have differentperspectives than those traditionallyconsidered when making marketing andproduct development decisions. Marketersshould be aware of these differences inorder to tailor their messages properly.The African-American population isyounger than the overall national averagebut slowing birth rates and increases inthe median age of the group indicate an

aging trend.

SECTION ONE:OUR HOUSEDEMOGRAPHICSOur House represents the demographic characteristics of the African-American community. In order to truly

understand the impact and market potential of this community, we must rst identify some key qualities

that dene its character. Our House specically looks at population trends, household income, educational

attainment, and the household dynamics of the community.

African-American % of U.S. Population

12.9%

2000 2005

13.3%

2010

13.6%

2015

13.8%

2020

14.0%

2025

14.2%

Source: U.S. Census Bureau, Census-Based Projections

The Minority Population Skews Much Younger

Under 12

Ages 1217

Ages 1834

Ages 3554

Ages 55+

White Non-Hispanic Hispanic Black/African American Asian

79% 7% 9% 4%

68% 13% 12% 5%

60% 19% 14% 6%

60% 18% 17% 5%

56% 22% 16% 5%

Pop

ulationAgebyEthnicity

Source: U.S. Census



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The African-American population,as a percentage of total population,is concentrated in the Southeasternstates, the major urban areas in theNew York to Washington, D.C., corridor,major industrial cities in the Midwest,Houston and Dallas in Texas and Los

Angeles, California. Although the African-American population continues to havehigh concentrations in cities, over thelast ten years census population trendshave shown dispersion to suburban areasand warmer regions of the country. Oneexample of this trend is the Atlantaregion. African-Americans living in thecity have shown a decline of 8% while thesurrounding suburban areas have seenan explosive 40% increase in African-Americans. Another example is Chicagowhich saw a decline in 180,000 African-

Americans living in the city and a declineof 3.5% in the entire metropolitan areapopulation. These migrations are likelydue to a combination of demographictrends including higher incomes and agingwhich have led to a movement out ofcities for more services, better educationalopportunities and warmer climates for aneasier life style.

RankDesignatedMarket Area

(DMA)

Black TVHomes

DesignatedMarket Area

(DMA)

Total TVHomes

Black TVHomes

% Blac

1 New York 1,256,380 Greenwood-Greenville 69,450 40,300 58.0%

2 Atlanta 664,860 Jackson, MS 338,030 148,610 44.0%

3 Chicago 589,240 Montgomery-Selma 244,470 101,530 41.5%

4 Washington, DC(Hagerstown) 571,980 Memphis 693,860 268,620 38.7%

5 Philadelphia 551,070 Meridian 72,280 26,810 37.1%

6 Los Angeles 475,180 Columbus, GA(Opelika, AL) 219,450 80,050 36.5%

7Detroit 378,730 Macon 241,120 87,050 36.1%

8 Houston 377,960 Columbia, SC 405,670 144,170 35.5%

9 Dallas-Ft. Worth 368,640 Augusta-Aiken 257,030 90,140 35.1%

10 Raleigh-Durham(Fayetteville) 302,670 Albany, GA 156,910 54,470 34.7%

% Penetration

High

Low

2010 U.S. African-American Population% Penetration by County

Top 10 Designated Market Areas(DMAs) by African-American TVHouseholds

Top 10 Designated Market Areas (DMAs)by % African-American TV Households



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The number ofhouseholds earning

$75,000 or morehas grown by

63.9%

With a buyingpower of nearly

$1 trillion annually,if African-Americans

were a country, theydbe the 16th largest

country in theworld.**

Income

African-Americans have experienceda transition in the mix of householdincomes over the last census cycle. Thetransition is marked by an increase inhigher earning households. Specically,between 2000 and 2009, the numberof households earning $75,000 ormore grew by 63.9%, a rate 11.7%greater than the change in the overallpopulation. Additionally, the percentageof households earning $50,000 or less hasdecreased, representing a full shift upward

in the income of the overall community.The combination of a growing populationand higher household income reectsthe opportunity to access an increasingnumber of consumers with a buyingpower of nearly $1 trillion annually andprojected to reach $1.1 trillion by 2015*due to trends in education and a risingnumber of professional African-Americanwomen in the work force. 64% of African-American women are in the U.S. laborforce compared to 60% of non-African-American women.

Household Income

African-American Households Total Households

2000 2009 Change 2000 2009 Change

< $25K 5,226,713 5,287,171 1.2% 30,261,220 28,066,226 -7.3%

$25K$50K 3,504,636 3,700,433 5.6% 30,965,514 28,509,867 -7.9%

$50$75K 1,796,867 2,082,128 15.9% 20,540,604 20,840,835 1.5%

$75K$100K 797,301 1,133,646 42.2% 10,799,245 13,686,950 26.7%

$100K+ 698,449 1,318,060 88.7% 12,972,539 22,512,351 73.5%

Total 12,023,966 13,521,438 12.5% 105,539,122 113,616,229 7.7%

Source: U.S. Census Bureau

Rank*** Country GDP (purchasing power parity) (Billion $)

1 United States 14,6602 China 10,0903 Japan 4,3104 India 4,0605 Germany 2,9406 Russia 2,2237 United Kingdom 2,1738 Brazil 2,1729 France 2,145

10 Italy 1,77411 Mexico 1,56712 Korea, South 1,45913 Spain 1,36914 Canada 1,33015 Indonesia 1,03016 Turkey 96117 Australia 88218 Taiwan 82219 Iran 81920 Poland 721

64% of African-American

women are in the U.S.labor force.

* Source: Target Market News, The Buying Power of Black America.

** If comparing buying power to Gross Domestic Product (GDP),dened as the value of all goods and services produced within thegeographic territory of an economy in a given interval, such as a year

*** Source: Index Mundi



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Increasing educational achievement and other factors have

started to signicantly raise the communitys afuence.

The African-American community hasseen growth in educational achievementat all levels, including high school, college,and graduate schools. Adults over theage of 25 have seen a higher positivepercentage increase in educationalattainment than those in the overallpopulation. In addition to more highschool diplomas and equivalencydeterminations over the census cycle,the percentage of African-Americansattending some college or attaining a

degree has grown for both men andwomen from 39.6% to 45.3% and44.9% to 53.6%, respectively. Whileboth genders have done better, most ofthe achievement growth can be attributedto signicant gains by African-Americanwomen. Additionally, based on 2000 to2009 statistical comparisons:

1. In 2009, 81.4% of African-Americanadults had attained a High SchoolDiploma or GED compared to 72.3%in the year 2000.

2. In 2009, 17.6% of African-Americanadults had attained a bachelorsdegree compared to 14.3% in theyear 2000.

3. In 2009, 6.1% of African-Americanadults had attained a graduate degreecompared to 4.8% in the year 2000.

Education

These higher growth rates and largernumbers of achievers could seemsomewhat surprising as oftentimes thediscussion about African-Americans andeducation is centered on concerns suchas subpar urban schools, high drop outrates, and lack of collegiate preparationand access. These growth statistics donot make those discussions inaccurate oreliminate the need for improvement, butthey do illustrate that the community hasseen positive results in educationand

that message needs to be reinforced.

Increasing educational achievement andother factors have started to signicantlyraise the communitys afuence and couldpossibly increase market growth withviable products and services related to thismarket sector.

Educational Attainment Persons 25+

African-Americans Total

2000 2009 Change 2000 2009 Change

Male

Less than High School 29.1% 20.0% -9.0% 19.9% 15.5% -4.4%

High School or GED 31.4% 34.7% 3.3% 27.6% 28.6% 1.0%

Some College 26.5% 29.7% 3.2% 26.4% 27.5% 1.1%

College Degree+ 13.1% 15.6% 2.5% 26.1% 28.4% 2.3%

Female

Less than High School 26.6% 17.4% -9.2% 19.3% 14.1% -5.2%

High School or GED 28.4% 29.0% 0.6% 29.6% 28.4% -1.2%

Some College 29.7% 34.3% 4.6% 28.2% 30.1% 1.8%

College Degree+ 15.2% 19.3% 4.0% 22.8% 27.4% 4.6%

Source: U.S. Census Bureau



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Marriage and Divorce Rates

Similar to the decline in the prevalenceof marriage in the overall population, thepercentage of married African-Americanshas continued to decline. For the African-American demographic, the decline isevidenced by two factors: a growth inthe number of people who have nevermarried and an increase in the medianages of both men and women for theirrst marriage. These changes within theAfrican-American community have beenproportionately more dramatic than in

the total population. Those who havenever married grew by 1.7% more and themedian age for rst marriage is 30.4 and30.0 for men and women, respectively,compared to 28.4 and 26.5 for the totalpopulation.

Some of the marriage effect within theAfrican-American community may beexacerbated by the higher achievementsin education and in employmentsuccess (indicated by higher householdincomes) especially by women within this

demographic.Regardless of the specic reasons, itis clear that fewer people are gettingmarried or are remaining single well intotheir adult years. Company executivesand marketers should be looking toaddress these changes by highlightingtheir products and services to a growingpopulation of single adult or non-marriedhouseholds.

Married WidowedDivorced SeparatedNever Married

African-American 2009

African-American 2000 Total 2000

Total 2009

7.4%

12.8%

Marital Status for Persons 25+

Marketers shouldlook to highlight their

products and services toa growing population of

single adult or non-married households.



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Children

Although the overall demographictrend of minorities in America tends tobe concentrated in the under-35 agemarket segment, there is evidence of adecline in the percentage of householdswith children in the African-Americancommunity. The number of householdswith children is declining at a higher ratethan is occurring in the overall population.We can probably attribute somecorrelation between fewer children perhousehold and the growth in education

attainment and the decline in marriedcouples. Moreover, the birth rate forAfrican-Americans has slowed causingincreases in the median age of African-Americans.

Households by Number of Children

Number ofChildren

African-Americans Total

2000 2009 Change 2000 2009 Change

0 61.6% 66.3% 4.7% 67.0% 69.7% 2.7%

1 16.7% 15.3% -1.4% 13.6% 12.8% -0.8%

2 21.7% 18.4% -3.3% 19.4% 17.5% -1.9%Source: U.S. Census Bureau

Leverage yourbuying power. The

African-Americanpopulation has a buying

power of nearly $1 trillion. Thisgure is larger than the GDP of mostcountries in the world. Collectively,consumers can use this information

to leverage relationships withcompanies wishing to grow marketshare in this area.

ConsumerOpportunity:

Dontunderestimate

the buying power.The number of African-

American households earning$75,000 or more has grown by63.9% in the last decade, a rategreater than that of the overall

population. This continued growthin afuence, social inuence andhousehold income will continue toimpact the communitys economicpower, especially with women, whotend to be the primary decisionmakers for most household buyingdecisions.

BusinessOpportunity:

SECTION ONE: OPPORTUNITIES



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American usage of television is stillstrong even with alternatives such asmobile phones and high-speed Internet.The television still maintains manycompetitive advantages over the othercontent streaming options. The generalsize, speed, and low maintenance of

televisionscoupled with cable television,satellite television, video game consoles,on demand systems, high-denitioncontent, and digital video recording(DVR) and playback optionsstill hold adominant position with most Americans.

African-Americans watch more televisionthan any other group. Not only does theaverage African-American household havefour or more televisions, but also spendsan average of seven hours 12 minutes eachdayor 213 hours per monthwatchingthem. This amounts to about 40%more viewing time than the rest of thepopulation.

SECTION TWO:WHAT AFRICANAMERICANS WATCHAs society becomes increasingly digitized, consumers engage with different forms of content in a variety of

ways. While the television continues to be the number one way viewers consume video content: computers,

smartphones and tablets are rapidly expanding platforms for consumers to interact with media. As we analyze

what the African-American population is watching, it is important that we also identify how they receive it.

Focusing on both the content and the method of interaction provides insight to advertisers, content providers,

manufacturers, and device makers as to how to get their messages and products to the public.

Including Sports

JanuaryJune 2011 (In Millions)Rank Program Viewers

1 FOX Super Bowl XLV 12.53

2 FOX Super Bowl Post-Gun 11.10

3 FOX Superbowl XLV Kickoff 7.69

4 FOX Super Bowl Post Game 7.59

5 AFC Championship on CBS 7.36

6 NBA Finals on ABC-Game 6 7.14

7 FOX NFC Championship 6.918 NBA Trophy Presentation 6.64

9 AFC Champ Post Gun on CBS 6.43

10 AFC Div PlayoffPost-Gun-Su 6.31

Award Programs


1 Grammy Awards 4.08

2 BET Awards Show 3.86

3 BET Awards 11 Afterparty 3.67

4 BET Awards 11 Pre-Show 2.56

5 Academy Awards 2.51

6 Oscar's Red Carpet Live-3 1.88

7 Billboard Music Awards 1.588 42nd NAACP Image Awards 1.52

9 Kids Choice Awards 2011 1.08

10 People's Choice Awards 1.07

Excluding Sports, Specials, Award andVariety Programs


1 Young and the Restless 1.59

2 Criminal Minds: Suspect 1.52

3 CSI: Miami 1.46

4 NCIS: Los Angeles 1.44

5 106 & Park 1.43

6 Apprentice 11 1.35

7 Criminal Minds 1.348 NCIS 1.28

9 Law and Order: SVU 1.25

10 Secret Millionaire 1.23Persons Ages 2+. All Day Parts. Live+7. Excludes breakouts, repeats.

When gauging the preferences and habits of television viewers, Nielsen measures all households proportionately according to population estimates. For example, the African-American populationof the United States is 14%, therefore Nielsen strives to ensure the number of African-American households in its television sample is 14% as well.

Television Viewership

Top 10 Most Watched Among African-Americans, Ages 2+



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African-American households tend

to prefer premium cable channelprogramming, drama, live or realitytelevision program and sporting events.The 12.5 million African- Americanswho tuned into Super Bowl XLV, vs. the11.2 million who watched the previousyear, helped make it the most watchedSuper Bowl ever. It ranks as the #1 MostWatched Show for African-Americans forJanuary through June 2011. The GrammyAwards, BET Awards andAcademy Awardsattracted 4.1 million, 3.9 million and2.5 million African-American viewers

respectively. Dancing with the Stars andAmerican Idol drew 2.5 and 2.3 millionAfrican-American viewers respectively,while The Voice andSunday Best 4garnered approximately 1.5 million each*.The commonality between the varied

Total Day TV and Peripheral Usage byEthnicity and Origin

(Daily HH:MM)

Total Use of TV

5:11 7:12

Live TV

4:17 6:16

DVD Playback

0:15 0:18

DVR Playback

0:24 0:20

Video Games

0:13 0:16

Source: Nielsen. Based on Live Stream for Persons 1849during November 2010.

Total U.S.

African-America

African-Americanhouseholds set a record for

the number of sports viewers forthis years Super Bowl XLV:

12.5 million vs.11.2 last year.

Excluding Sports


1 The Game: Season 4 3.08

2 Real Housewives Atlanta 1.76

3 Lets Stay Together 1.56

4 American Idol-Wednesday 1.08

5 House of Payne 0.97

6 American Idol-Thursday 0.96

7 Dancing With the Stars 0.958 Greys Anatomy 0.83

9 Law and Order: SVU 0.81

10 Apprentice 11 0.80Persons 1849. Prime Day Part Live+7. Excludes breakouts, repeats,specials, programs


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Mobile Phones

Technology companies that may not havefocused on reaching African-Americansare missing the fact that this group

is incredibly valuable to marketers.Increasingly, Americans are buyingsmartphones for their mobile phoneneeds. Smartphones, in particular, haveexperienced greater penetration amongethnic or racial minorities than among thetotal population. Among mobile phoneusers, 33% of all African-Americans own asmartphone. Additionally, 44% of all newmobile phone purchases by this group aresmartphones.

Also, smartphone popularity and usage

skew toward younger age groups asnearly 50% penetration exists for African-Americans for age groups forty-four (44)and younger. Major opportunities exist formarketing to these young groups to growsmartphone and phone operating system(OS) market share. Mirroring the trendsseen in the general population, Androidhas distanced itself from competitors,taking 37% of the smartphone marketshare among African-Americans. Mobileapplication producers and advertisers canlook to access the huge growth mobilemarket for African-Americans by usingthat programming platform and gainingentry into the Android marketplace.

Smartphone Penetration

Q1 2011

Overall

36%

African-American

44%

38%

27%

20%

Smartphone Penetration by Age Among African-Americans

Q1 2011

Ages 1824

51%Ages 2534

53%Ages 3544

47%

Ages4554 Ages

5564

Ages 65+

African-Americans Preference ofSmartphone

Q1 2011

Android OS

37%

Other

5%RIM

Blackberry OS

30%

AppleiPhone OS

16%

13%

MicrosoftWindows

Mobile

1/3 of all African-Americans

own a smartphone.



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While smartphones tend to have higher web-based functionality, African-Americanstend to use phones primarily for talking and texting. African-Americans talk an average

of 1,298 minutes a month, more than twice that of White Americans, who talk anaverage of 606 minutes a month. African-Americans also exhibit high use of phonesfor emailing (43%) accessing the mobile internet (41%) and visiting social networkingsites (37%).

Networking activity presents a grand opportunity to gain market penetration forbusinesses. This is especially true for women. African-American women tend to adopttechnology when it is social and relevant to improving their day-to-day lives. In additionto increasingly being the head of household and the main decision makers, womenengage with social platforms more often, participate in surveys, and share informationwith other friends and family on products that they nd useful. Cross-platformopportunities exist where live TV programming can be paired with social networkingsites for additional opportunities to market new products and build upon brand loyalty.

African-American women tend to adopt

technology when it is social and relevant

to improving their day-to-day lives.

Average Voice Minutes Used byAfrican-Americans per Person

Q1, 2011

Average Number of Billed SMSSent/Received by African-Americans

Q1, 2011

Mobile Activities of African-Americans

Q1, 2011

1,298minutes

907Texts Sent/

Received

Text Messaging/SMS 78%

51% Picture Messaging/MMS

Email 43%

41% Mobile Internet

Social Networking 37%

33% Application (App) Usage

Text Alerts 31%

31% Application (App) downloads

Played pre-installed games 31%

27% Picture downloads

Ringtone downloads 21%

24% Location-based services/GPS

Instant Messaging 24%

23% Uploads

Game downloads 21%

21% Wallpaper/Screensavers downloads



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As consumer choice and mediafragmentation continue to grow,advertising effectiveness increasinglydepends on reaching the right consumer,with the right message, at the righttime and in the right placeand beingable to understand the direct salesimpact of those efforts. Nielsen deliversa comprehensive understanding ofadvertisings impact by tracking thefull spectrum of advertising spend andperformance.

Television advertising was the largestmedium for all ad spending in 2010,accounting for $69 billion. In the rstquarter of 2011, television advertisingsurpassed $18 billion, growing almost9% versus the same period in 2010. Radio

and magazines during this same periodalso saw higher ad spend levels than lastyear, increasing between six and 7%.Newspapers, however, saw a 10% drop.

In 2010, national TV (network, cable, andsyndicated) advertising dollars aimedat African-American audiences wereprimarily dedicated to cable TV, whichsaw increases of 17%. Network andsyndicated TV saw some declines.

Total advertising expenditures spent inAfrican-American media reached $1.9Bin 2010, increasing 3% versus 2009. At$916M, TV ad spending accounted for46% of the total, followed by advertisingin spot radio ($704M) and nationalmagazines ($362M).

$1,550 (+6% vs. Q1 2010)

TV

$ in millions

Radio

Magazines

Newspapers

$18,771(+9% vs. Q1 2010)

$2,847 (-10 % vs. Q1 2010)

$3,516 (+7% vs. Q1 2010)

Source: Nielsen

Overall Ad Spend (Q1 2011)

Market: National African-AmericanMedia Buys

In MillionsNielsen Ad*ViewsJan 1, 2009Dec 31, 2010

Media Type 2009 2010 % Change

National Magazine $358 $362 1%

Spot Radio $732 $704 -4%

National TV $835 $916 10%

Total $1,925 $1,982 3%

Trends in Advertising Spend and Effectiveness

b / B i k



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Most Remembered Ads Among African-Americans

Rank Brand Ad Description

1 M&Ms Pretzel - Candy complains about pretzel being put inside him; pretzelisnt thrilled either (30-second ad)

2 McDonalds Real Fruit Smoothie - Smoothie contains real strawberries, blackberries,blueberries, and bananas (15-second ad)

3 M&Ms Pretzel - Candy complains about pretzel being put inside him; pretzelisnt thrilled either (15-second ad)Source: Nielsen, 06/01/10 05/20/11

It is incumbent onmarketers to understand

the differences in audiences

in order to successfully

engage consumers.

Procter & Gamble, the leading advertiserin general and Hispanic media, maintainedits top-ranked position in African-American spending, increasing 15% from2009. General Motors, Verizon, AT&T,and Berkshire Hathaway, all top tenadvertisers on a national scale, also hada strong presence in African-Americanadvertising. LOreal saw the strongestincrease, jumping 32% from 2009.McDonalds, the U.S. Government andNational Amusements were also majorplayers who advertised to the African-American market.

Top 10 Advertisers for African-AmericanMedia (2010)

Parent Company % Change

Procter & Gamble 15%

LOreal 32%

Johnson & Johnson -16%

General Motors 12%

McDonalds -7%

Verizon -9%

U.S. Government 2%

AT&T 11%

Berkshire Hathaway 3%

National Amusements -8%

Expenditures for the top 10 categories grew 2% versus last year.Overall, Automotives replaced Quick Service Restaurants as the topcategory, growing 10% to $98M. In addition, heated competitionamong Auto Insurers drove a staggering 125% increase in spendto $63.2M. Other categories experienced softness, balancing outthe surge in growth from Automotives and Insurers. Quick ServiceRestaurants, Department Stores, Motion Pictures and Direct ResponseProducts all remained in the Top 10 but spent less than last year asthey became more sensitive to changes in discretionary consumerspending. Supermarkets, however, advertised more to attract budget-conscious consumers preparing meals at home.

Advertising Effectiveness

In an age of increasing cultural diversity and ethnic growth, advertisingthat speaks to different identities must be a vital component of anyeffective marketing plan. It is incumbent on marketers to understandthe differences in audiences in order to successfully engage consumers.African-Americans tend to demonstrate a high degree of brandloyalty, so its incredibly useful to create ads that successfullypenetrate their awareness.

Top 10 Product Categories for African-American Advertising(2010)

In Millions

Product Category 2010 % Change

Automotives $98 10%

Quick Service Restaurants $84 -12%

Auto Insurance $63 125%

Department Stores $62 -12%

Motion Pictures $62 -23%

Wireless Telephone Services $60 9%

Pharmaceuticals $56 8%Direct Response Products $30 -26%

Supermarkets $29 21%

Restaurants $28 0%

Totaladvertising

expenditures reached

$1.9 billionin African-Americanmedia in

2010a 3%

increaseover2009



18/24

Once at the epicenter of the digital divide,African-Americans are now 44% morelikely to take a class online, 30% more

likely to visit Twitter, and download moremovies via the Internet than other ethniccommunities. African-American mothers,in particular, are 68% more likely to readarticles online and 45% more likely tolisten to music online. When Debra Lee,BETs CEO, addressed more than 1,000marketing decision makers at Nielsens2011 Consumer 360 Conference, shereminded them that the African-Americanconsumer is not monolithic. CitingBETs studyAfrican-Americans Revealed,

she identied four key segments thatmake up 85% of the African-American

audience, two of which focused on onlinetechnologythe Techuentials and theBright Horizons:

1. STRIVERSAn ambitious group ofopinion leaders aged 2040. These youngleaders are rising in their communities andthe corporate world.

2. CONSCIOUS SISTERSThese arewomen who are keen on aspects of theirculture and spirituality. They focus onfamily and are value conscious.

3. TECHFLUENTIALSWorldambassadors aged 2030 who aremaking the world a little smaller using

technology, to positively impact others,using Skype, social media and more.

4. BRIGHT HORIZONSThis tech-savvy segment is focused on education andfriends, gaming, mobile and social media.

As African-Americans continue to breakmisconceptions about technology habits,so too must marketers create meaningfulcampaigns that incorporate socialnetworks trusted by African-Americansand deliver novel experiences across allforms of technology. With an expandingpiece of the economic pie, African-Americans are a prime and valuableaudience.

African-American Internet Users and Visits to Categories of Sites

During July 2011

There were 23.9 million active African-American Internet usersof which...

76% visited a Social Networking/Blog site

54% visited a Travel site

50% visited a Mass Merchandiser site

50% visited a Current Events & Global News site

44% visited a Health, Fitness & Nutrition site

39% visited a Sports site

37% visited a Coupons/Rewards site

37% visited a Broadcast Media site

31% visited a Financial Info & News site

Source: Nielsen, NetView, Total (July 2011)These gures should not be trended with Home and Work data used prior to July 2011.

Online

African-Americans are 30% more

likely to visit Twitter.



19/24

The Movie Screen

A discussion about African-Americansviewing habits cannot be completewithout a mention of movie theaters,

which generate approximately $12billion in annual revenue. African-Americans comprise 11% of the moviegoing population and visit the movietheater with good regularity; in fact, theirattendance is up slightly year to year.African-Americans account for 11% ofheavy moviegoersthose that see nine ormore movies per year. Heavy moviegoersaccount for 63% of the box ofce receipts.In comparison to light moviegoers, heavymoviegoers are much less price sensitive

and spend more on entertainment. Theyare also more highly engaged with allmovie marketing sources, leveraging bothstudio-paid and viral sources and aremore apt to consume movies at home,via traditional physical formats as wellas streaming, downloading, and pay perview. The most frequent attendees in

Top 5 African-American Themed Moviesto Date (with Predominantly African-American Casts)

Rank Title Gross

1 The Pursuit of Happyness $162.6M

2 Bad Boys II $138.4M

3 The Nutty Professor $128.8M

4 Coming to America $128.1M

5 Nutty Professor II:The Klumps $123.3MSource: eCinesys By Nielsen NRG

Speak up about theimages your family

is being exposedto. While African-

Americans, in general, are heavyusers of media including televisions,mobile devices, computers and othersystems, children under the age of18 use these mediums more thanothers. African-American parents

should be wary of the images theirkids encounter and look for waysto provide additional educational,physical, and socially interactiveopportunities to protect the overallhealth and well-being of theirchildren.


Utilize trendsto help take your

product to thenext level. Trends in

technology adoption and socialnetworking provide this groupan inuence over popular culturebeyond the limits of ethniccategorization.


Marketers must create

meaningful campaigns

that incorporate social

networks trusted by African-Americans and deliver novel

experiences across all forms

of technology.

Online Purchases Among African-AmericanAdults

Purchased Online(Last 6 Months)

% more likelyto purchase

than average

Beer/Wine/Liquor 17%

Baby Clothes/Shoes/Accessories

12%

Womens Clothes/Shoes/Accessories 5%

Source: Nielsen. Ranked on African-American Adults OnlineIndex vs. Online 18+

Online Purchases Among African-AmericanAdults

Purchased Online(Last 6 Months)

% of African-AmericansOnline

Airline Tickets/Reservations 12.8%

Hotel/Motel Reservations 9.6%

Any Clothes/Shoes/Accessories

9.0%

Womens Clothes/Shoes/Accessories

6.4%

Mens Clothes/Shoes/Accessories

5.1%

Source: Nielsen

SECTION TWO: OPPORTUNITIES

the African-American segment are 1217year olds and 4554 year olds. Consistentwith the general population, African-Americans favorite genres are comediesand action adventures as is evidencedby the Top 5 movies with predominatelyAfrican-American casts.



20/24

SECTION THREE:WHAT AFRICANAMERICANS BUYDetermining what consumers demandand afterward measuring what they buyis at the core of Nielsen.

Through the Cambridge Group*, we work with clients to identify and tap into not only existing consumer

demand, but latent and emerging demand from protable groups of consumers. We also monitor shopper

behavior for more than 250,000 households in 25 countries through our industry-leading consumer panel.

Nielsen offers a unique set of tools that examine key business trends by product, category

or market using retailer scanner-based sales and causal information gathered

weekly from tens of thousands of retail outlets. This information enables

businesses to identify the why as well as the what behind changes in

product sales for ne-tuned marketing strategies.

According to Rick Kash, founder ofThe Cambridge Group and co-authorofHow Companies Win, You must beable to answer the question, What doI know about the demand of my mostprotable customer that my competitordoesnt know?

The African-American community is avitally important market, based on itsgrowing size and its long inuence onAmerican cultural trends and innovations.

As noted earlier, the buying powerof African-American consumers isprojected to reach $1.1 trillion by 2015.Census tract data illustrates a trend ofincreasing household incomes and anincreasing population which correlateto increased buying power within thiscommunity. Especially important tonote are the trend changes in educationand employment for women. African-American women are increasingly

African-American Women View Themselves as the Primary Decision Makers Across Virtually all Consumer Segments

Health/Beauty

Women Primarily Men PrimarilyBoth men andwomen equally

Household cleaning

Clothes

Child care at home

Managing child care outside the home

Food

Pharmaceutical Prescription/OTC Drugs

Beverages

Family finances

Insurance

Home Electronics

Locations for social activities

Automobiles/other transportation

Personal Electronics

23

31

35

33

36

36

44

45

42

37

37

47

31

41

77

68

65

65

63

62

55

53

52

51

50

50

49

47

1

1

0

2

1

2

1

2

6

12

13

2

20

12

Nielsen Women of Tomorrow Study, 2011

Buying Power

African-American women areincreasingly becoming the head of

household or primary earnerfor their households.

iStockphoto.c

om/

k b i i

*The Cambridge Group is a division of Nielsen and one of the worlds preeminent growth strategy consulting rms.



21/24

becoming the head of household orprimary earner for their households.Additionally, these women feel theyare the primary decision makers acrossvirtually all consumer segments.

Shopping Habits

The purchasing behavior of African-Americans has some distinctcharacteristics that retailers andmarketers should identify and use toestablish effective market position.African-Americans shop more often thanall other groups, but spend less moneyper trip and overall. This behavior reectsa propensity to make quicker/smallerpurchases based on short-term needs andless on deal availability or the desire tostock up.

Store Channel Frequency

Despite making more shopping tripsoverall, the occurrence of trips to grocerystores, supercenters, mass marketers,and warehouse store falls below the rateof other groups. The African-Americanmarket is more likely to frequent drugstores, dollar stores and convenience/gas outlets. Major retail channels seem tohave a prime opportunity to motivate this

highly active group to come to their stores.

African-American households make more

shopping trips annually than any other group.

African-Americans shop often, but spend less per trip & overall; are less deal proneTotal Retail Channels

Shopping Trips

Per Household

African-American

165.7

Non-African-American

153

Basket RingDollars Per Trip

African-American

$37


$45

Basket Ring

Dollars PerHousehold

African-American

$6,138


$6,883

% Dollarson Deal

African-American

20.9%


26.3%

Source: Nielsen Homescan; Total U.S. 52 weeks ending12/25/2010; excludes gas only or Rx only trips

African-Americans spend less per tripin major retail channels compared toNon-African-AmericansBasket Ring Dollars Per Trip

Grocery StoresAfrican-

American

$34.1


$41.8

Supercenters

African-American

$52.6


$62.5

MassMerchandisers

African-American

$44.6


$46.8

Drug StoresAfrican-

American

$21.9


$24.8

African-Americans frequent dollar storeconvenience/gas stores and drug stores,more than non-African-AmericansShopping Trips Per Household

Grocery

Stores

African-American

56.4


58.8

SupercentersAfrican-

American

24.7


25.3

MassMerchandisers

African-American

12.4


12.9

Drug StoresAfrican-

American

15.6


13.9

WarehouseClubs

African-American

9.4


11.8

Dollar StoresAfrican-

American

20.7

11.4

Non-AfricanAmerican

Convenience/Gas

African-American

17.4

12.7

Non-AfricanAmerican



22/24

Buying Habits

A few major factors driving African-Americans retail trafc may be accessto private transportation and lack of

major retail development in some urbanareas where a concentration of African-American communities reside. A lookat the buying habits of higher incomemembers of this group may shed somelight on the impact of these outlyingfactors. While African-Americans show thesame product category preferences, thosewith household earnings greater than$100,000 tend to make fewer trips andspend 41% more per trip than the averagehousehold in this group. Additionally,

higher earning African-Americanspatronize major retail chains with higherregularity and go to convenience anddollar stores at a much-reduced level thanthe group average and spend 300% morein higher-end retail grocers like WholeFoods than other high income households.These behaviors seem to indicate thatconvenience and resources may bedriving behavior and represent a growthopportunity for major retail grocery andmass merchandisers.

Among the major buying categories,African-American households spend moreon basic food ingredients and beveragesand tend to value the food preparationprocess and on average spend more timepreparing meals. Other popular buyingcategories include fragrance and personalhealth and beauty products.

Given shopping patterns in retailchannels where coupon redemptionshave been historically low, purchasingon deal and response to coupons arelower for African-American consumers.

However, this should not be interpretedthat African-Americans do not ndconsumer promotions and good pricesto be important, as almost half (47%),strongly agree that it is always importantto get the best price when shoppingfor groceries (versus 40% for White

African-American households spend moreon basic food ingredients & beverages

Nielsen Edible CategoryAfrican-AmericanDollar Index

Frozen Meat, Poultry, Seafood 168

Dried Vegetables & Grains 161Seasonings & Spices 156

Refrigerated Juices & Drinks 155

Shelf-Stable Juices & Drinks 155

Baby Food 152

Shortening & Oil 150

Non-Carbonated Soft Drinks 146

Sugar & Sweeteners 144

Ice 142

African-American households spend moreon personal & beauty care

Nielsen Non-Edible CategoryAfrican-AmericanDollar Index

Ethnic Health & Beauty Care 954

Feminine Hygiene 188Greeting Cards/Party Needs 177

Fresheners & Deodorizers 176

Personal Soap & Bath 160

Womens Fragrances 152

Charcoal 131

Sanitary Protection 126

Deodorant 124

Mens Toiletries 123

Purchase index: share of African-American $ sales divided by U.S. household $ share X 100

Source: Nielsen Homescan, 52 Weeks Ending 12/25/2010

Expand yourhorizons. African-

Americans arefrequent shoppers and

tend to be brand loyal. Consumers

should consider looking for moredeal opportunities and researchdifferent retail channels for expandedservice offerings, potential savingsopportunities, and higher value orquality products.


Branch outinto untapped

geographic areas.African-American

communities tend to shop often

but under utilize some popularretail chains because they maynot be easily accessible in theircommunities. Companies investingin stores and locations that are moreconvenient will likely see highervolume usage.


Non-Hispanic). Nielsen research alsoshows that African-American consumersdevote a lower dollar share of their totalconsumer-packaged-goods spending tostore brands (17.7% versus 18.3% forWhite non-Hispanic). This tendency to bemore brand loyal is reinforced by Nielsensurveys showing a lower attitudinalconnection to store brand purchasing ingeneral and a much stronger likelihood

to always buy the brands they trust(46% agree/strongly agree versus 36%for White Non-Hispanic). This too

should not be construed to mean thatretailers dont have opportunities tofocus energy to grow store brand shareamong African-American consumers whoindicate a higher staying power once theynd a store brand they like. Businesseslooking to increase market share withAfrican-American consumers should focuson women and the family/communalbehaviors centered around eating and

food preparation and look for crossoverproduct placement opportunities.

SECTION THREE: OPPORTUNITIES



23/24

SUMMARYA limitation of any demographic study of this kind is that it attempts to apply general descriptions to a

non-homogeneous group. Differences in age, income, education, and social setting will sometimes lead to

diverse perspectives within an ethnic group. Companies that appreciate the unique demands and growth

potential in this ethnic group should use this information as a starting guide for further research to fullymaximize business opportunities. This report reveals some key facts and ndings useful not only to African-

American consumers themselves, but for those companies who can successfully meet the demands of this

important consumer segment.

The major demographic changesimpacting African-Americansthat businesses should payattention to, in an effort to betterdetermine and meet consumerwants and needs are:

1. The number of African-Americanhouseholds earning $75,000 ormore has grown by 63.9% in thelast decade, a rate greater than

that of the overall population. Thiscontinued growth in afuence,social inuence and householdincome will continue to impactthe communitys economic power,especially with women.

2. The percentage of African-Americans attending college orearning a degree has increasedto 44% for men and 53% forwomen. Higher educational andprofessional success along witha lower birth rate is increasingboth the age and afuence of thepopulation increasing the demandfor aging, healthcare, and nancialmanagement services.

Behavioral trends and purchasinghabits provide additionalopportunities for businesses:

3. African-Americans are heavyusers of electronic media providingmarketers many opportunities toaccess them with advertising andimages that are appealing andhighlight their services.

4. African-American womentend to be the primary decisionmakers for most household buyingdecisions. Marketers should beutilizing advertising messages andimages that appeal to them.

5. Trends in technology adoptionand social networking also providethis group an inuence over popularculture beyond the limits of ethniccategorization.

Key BusinessOpportunities:

1. The African-Americanpopulation has a buyingpower of nearly $1 trillion, agure larger than the GDP ofmost countries in the world.Collectively, consumers can usethis information to leveragerelationships with companieswishing to grow market sharein this area.

2. Consumers shouldconsider looking for more dealopportunities and researchdifferent retail channels forexpanded service offerings,potential savings opportunities,and higher value or qualityproducts.

Key ConsumerOpportunities:



24/24

About NNPA

The National Newspaper Publishers Association, also known as the Black Press ofAmerica, is a 71-year-old federation of more than 200 Black community newspapersfrom across the United States.

Since World War II, it has also served as the industrys news service, a position thatit has held without peer or competitor since the Associated Negro Press dissolved by1970. In 2000, the NNPA launched NNPA Media Servicesa print and web advertising-placement and press release distribution service. In 2001, the NNPA and its foundationbegan building the BlackPressUSA Networkthe nations premier network of local Blackcommunity news and information portals. The BlackPressUSA Network is anchored byBlackPressUSA.comthe national web portal for the Black Press of America.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement companywith leading market positions in marketing and consumer information, television andother media measurement, online intelligence, mobile measurement, trade showsand related properties. Nielsen has a presence in approximately 100 countries, withheadquarters in New York, USA and Diemen, the Netherlands. For more information,visit www.nielsen.com.

The NNPA is the oldest, largest, and most

inuential Black media source in America.

In more than 100 countries around the world, Nielsen provides clients withthe most complete understanding of what consumers watch and buy.

state of the african american consumer

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