Each year, I look forward to analyzing the Hispanic Fact Pack to see how our industry continues to grow and evolve. For this post, I pulled out 10 stats you can use to convince your boss to invest in Hispanic marketing.
It has been interesting to follow the conversation this year regarding the application of Total Market strategies and how they relate to the future of Hispanic ad agencies. While predictions and solutions differ, one thing is clear: Total Market is here to stay.
When I started my career in marketing back in the early 2000s, Hispanic marketing was a tremendous career growth opportunity. The Latino market was underserved and Hispanic marketing expertise was at a premium as many companies across industries where trying to figure out how to win with this elusive consumer. Hispanic agencies and different marketing approaches emerged; companies invested billions of dollars in their Hispanic marketing efforts.
Most marketers view their role as driving demand, either via upper funnel branding and awareness activities or lower funnel direct response, sales and retention activities. Advertising is generally viewed as one of the primary tools to drive consumer demand. But what is at the core of driving consumer demand? Changing consumer behavior. That behavior change could involve new product trial, increasing occasion, acquiring market share by driving preference change, or increasing retention. To quote Adam Ferrier from his influential book The Advertising Effect, "Advertising is really the business of behavior change."
The Hispanic population has nearly tripled in size since 1990 and has been the largest "minority group" since 2000. It represents more than half of the nation's growth in both population and consumer spending. This will continue to increase over time. With this momentum, marketers are finally starting to realize the value of these high-growth consumers. They're using geo-location and purchasing data, among other sources, to find out who their consumers are and what they buy. They claim that they're trying to reach Hispanics in a genuine way, but their messages are often lost. So how can they utilize all ...
A few decades ago, Frito-Lay was onto something. The year was 1994 and they realized that there were a lot of Latinos in Los Angeles. They also realized that Latinos had different taste palates and over-indexed in the salty snacks category. So they decided to launch "Sabrositas," a series of Latino-infused (Limon, Chile, etc.) line extensions for the Frito-Lay brand.
Last month, CPG giant and the world's largest advertiser Procter & Gamble declared that they would buy highly targeted Facebook ads less often. P&G will continue to invest heavily in Facebook advertising, but found that "targeting to super-specific audiences was expensive but didn't result in a big difference to its business."
Acculturation continues to be contested in our industry. The death of the Spanish language continues to be trumpeted. The need for specific Hispanic marketing efforts has even been called into question with the growing popularity of Total Market efforts.
A MediaPost op-ed by Luciana Gomez ignited a conversation within the Hispanic marketing industry regarding the relevance of Hispanic ad agencies. Gomez's piece opined that Hispanic agencies are experiencing stunted growth for a number of reasons. They are underpaying talent, have low client budgets, they need to work within pre-existing "general market" campaign structures, have an over-emphasis on Spanish TV, and stale insights. These agencies only have control of three of these issues.
An all-too-common challenge for marketers is significant disconnect between objectives (and budget allocation) for generating brand awareness and driving sales. The good news is, marketers who look beyond more traditional campaigns are finding ways to effectively accomplish both - including Amy Colella, VP of marketing communications at The Padilla Group. Seeking crossover appeal for Padilla Foods' El Yucateco hot sauce line, Colella turned to influencer campaigns to drive interest among a diverse U.S. audience.