January 25, 2023
Multicultural Ad Spend Accelerates, Albeit Mostly For Hispanics
- by Joe Mandese @mp_joemandese, December 19, 2023
The good news is that following years of lagging overall U.S. ad spending growth, multicultural ad spending -- ad budgets targeting Black, Hispanic and Asian Americans -- will expand faster than the general marketplace next year.
The bad news is most of that growth is coming from one segment -- Hispanic Americans -- while ad budgets aimed at Black and Asian Americans will continue to represent a minority share of multicultural ad spending.
Those are the findings of an updated U.S. multicultural ad-spending forecast released this morning by advertising tracker and forecaster PQ Media, and the findings come in sharp contrast to cries for accelerating the growth of so-called diversity media marketplace spending in recent years by major advertisers and ad agencies.
"Much of the record growth and media spend projected in 2024 will be generated by the Hispanic segment of the multicultural market," PQ notes in the new report, adding that U.S. Hispanic media will benefit from political ad campaigns targeting the segment in a hotly contested U.S. presidential election year.
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"Hispanic media already commands 68.3% of multicultural media spend and accounts for more than double the combined share of the other two multiethnic demographics – African-American (28.8% share) and Asian-American (2.9% share) -- although both segments are forecast to post accelerated growth of nearly 8% in 2024."
PQ Media CEO and Founder Patrick Quinn noted that Hispanic media ad spending will benefit not just from political ad spending -- particularly in Florida, Texas and California next year -- but from 2024 coverage of international soccer events leading up to FIFA's 2026 World Cup in North America.
8 comments about "Multicultural Ad Spend Accelerates, Albeit Mostly For Hispanics".
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Maybe it's just me, but "albeit for hispanics" in the headline seemed an odd choice of words.
@Gordon Borrell: The headline notes "albeity MOSTLY for Hispanics." Please explain why that's odd? It's literally what PQ Media found.
I am sure it wasn't meant this way, but it struck me as, "oh, but it's mostly for hispanics, so it's not that big a deal." Perhaps it would have been better to drop "albeit," which sometimes has a negative/lessening connotation. Just my first reaction, for what it's worth.
@Gordon Borrell: Interesting that you inferred that. Personally, that's why I think it is a big deal (ie. Why I made it the news hook.).
Can you quantify $$$ the annual spend?
@David Mesas: According to PQ Media, it U.S. multicultural ad spending will grow to $45.83 billion in 2024.
Agree w Gordon. It reads as a disappointment that Hispanics are getting the largest share of spend.
@Joe Mandese, it's more challenging than the media imagines to execute a social campaign reaching multicultural audiences without seeming tone deaf. You can buy certain keywords, #tags and interests in Meta, TikTok and YouTube but you're primarily trying to buy terms that index highly to those audiences. You can run influencer campaigns and target those influencer audiences but again, that's guesstimating. Hispanic marketing is 'easier' in the sense of languages and some nuances than trying to reach a different multicultural audience. Ask other buyers / planners to put together a media plan to reach a middle class multicultural audience. It feels like the new movie American Fiction.
Thank you, Joe!