• by Erik Sass  @eriksass1, March 7, 2007

A study of the U.S. Hispanic market sponsored by the Magazine Publishers of America holds important findings for advertisers and marketers. Although the study is focused on magazines, it provides valuable information on geographic distribution, age, media use and attitudes toward advertising.

Why is the Hispanic population in general highly desirable for marketers? According to the report, from 2000 to 2006, the purchasing power of Hispanics/Latinos climbed more than 63% to $798 billion. The report also cited a prediction from the University of Georgia's Selig Center for Economic Growth that "by 2011, it will top $1.2 trillion."

In terms of media consumption, the MPA found that more than 75% of Hispanic adults read over 11 magazine issues a month, similar to other U.S. adults. However, because the Hispanic adult population also skews younger than the national average, with a median adult age of 33.6 versus 43.7, these readers tend to be younger--with 53.1% falling in the 18-34 age range, versus 32.3% for the overall population.

Some 71.5% of adult Hispanic magazine readers are employed, versus 66.4% of the overall population--while 60.6% have children at home, versus just 41.7% of the latter. And fully 80% of Hispanic teens are magazine readers, edging out 78% of teens in the population at large.

Hispanics view magazines as "an escape"--quiet time to relax--and a source of tips. Magazines also serve as a "social enabler, in that people read things in magazines and use them in conversations with other people," according to Ellen Oppenheim, the MPA's executive vice president and CMO. But the MPA study also revealed significant attitudinal differences toward magazines and other media such as TV. For marketers that use magazines, they can improve their effectiveness by better understanding the Hispanic sensibility.

For example, Hispanics seem to approach magazines with more communal and emotional expectations. When asked to describe their favorite magazine, Hispanic readers produced responses that don't appear in survey results for the population at large, according to a Synovate study for the Hispanic Magazine Coalition in 2006. Among the benefits derived from their favorite magazine, Hispanic readers said: "It features people who make you proud," "Helps me to see that there are good people in the world," and "Some articles in this magazine touch me deep down."

The general popularity of magazines among Hispanic consumers is reflected in rapidly rising circulations, the MPA noted--with the Audit Bureau of Circulations recording a 69.2% increase in paid circulation from 2001 to 2005. Furthermore, 72.6% of Hispanic readers agreed that "magazine advertising provides me with useful information," and 62.3% said "magazine advertising entertains me." However, only 49.5% of respondents said "I trust magazine advertising."

Although median household income remains lower than the national average, parts of the population are moving into the middle class at a rapid pace. In the top 85 metropolitan areas, 14.3% of Hispanics ages 18-34 had household incomes of $50,000 or more in 2001, comparing favorably with 13.6% of the overall population of those areas. These numbers are especially significant in light of related findings about the population's age characteristics and geographic distribution. In demographic terms, the rapidly growing U.S. Hispanic population skews much younger than the overall population, with a median age of 27.2 versus the U.S. average of 36.4.

Furthermore, one-third of the Hispanic population is under the age of 18, compared to just a quarter of the general population. Plus, Hispanic birth rates rose 75% from 1995 to 2005, suggesting the demographic trend toward youth will continue indefinitely.

Manufacturers are already taking the hint by offering products targeted at young Hispanics, according to the MPA report--which notes, for example, that "Neutrogena and Aveeno Active Naturals, owned by Johnson & Johnson, now offer a scrub, a peel, a night treatment, an eye cream and moisturizer to attract Hispanic consumers looking for skin-care products tailored to their needs." Similar moves are underway in categories like food and packaged-goods.

Geographically, the Hispanic population is clustered in and around cities, with a growing presence in suburbs, making it easier to target through TV, radio and print. In 2003, 45% of Hispanics lived in areas classified as "central city," while 47% lived in suburbs (a big increase from 40% in 1993). The first figure is markedly higher than the population at large, with just 28% of the latter living in areas classified as "central city." Fifty-one percent of the population at large lives in suburbs.