Advertisers must pay attention to Hispanic consumers

A recent article published in Forbes notes that U.S. Hispanics are not valued enough by America’s corporations, government and mainstream media who do not take Hispanic consumers seriously enough, especially their buying power or trend setting influence. Although the proportion of U.S. Hispanics is scaling upwards rapidly, corporations and advertisers continue to underestimate the importance of Hispanics as an economic and business development engine.

To see an example of the economic impact Latinos can have, one need look no further than their local grocery store aisle, where tortillas, taco kits and salsa outperform hamburgers, hot dog buns and ketchup sales.

The reports adds that many of America’s corporations cling to preconceived stereotypes instead of becoming informed about Hispanic culture and how it shapes the identity of Hispanic consumers and their community at-large. Hispanics represents 16.7% of the United States population with a purchasing power estimated to reach $1.5 trillion by 2015 when 1 in 3 newborns will be Latino, and by 2050, the percentage of Hispanics will have nearly doubled to 30%.

Experts suggest that advertisers must look well-beyond the Spanish-language demographic and wake-up to the fact that second and third generation English-speaking U.S. Hispanics – who represent 68% of partially acculturated Hispanics (dual cultural affinity) – is where the growing value of Hispanic purchasing power lies. It therefore should come as no surprise that Univision/ABC will be launching a 24/7 cable news network in 2013 that specifically targets English-speaking U.S. Hispanics.

The marketing agency Lapiz, recently released a new consumer research study called LatinoShop. Some of its findings show that Latinos view shopping not so much as a chore; instead it’s “a multisource, multisensorial and multigenerational experience that provides retailers and marketers with a wide range of opportunities to engage.” Here are just a few of the LatinoShop study’s findings:

Hispanics Shop with Their Senses

• 55% Hispanics vs. 38% Non-Hispanics – like to touch and feel a product
• 36% Hispanics vs. 13% Non-Hispanics – think it’s fun to immerse themselves in the store atmosphere
• 49% Hispanics vs. 19% Non-Hispanics – judge product quality by product packaging

Social Shopping (online and offline)

• 37% Hispanics vs. 17% Non-Hispanics – reach out to friends and family
• 36% Hispanics vs. 18% Non-Hispanics – share opinions and write reviews
• 48% Hispanics vs. 31% Non-Hispanics – use social networking sites

Mobile and Tablet Shopping

• 56% Hispanics vs. 33% Non-Hispanics – shop mobile with a phone
• 43% Hispanics vs. 25% Non-Hispanics – shop with a tablet

Trendsetting (Hispanics are more than twice as likely vs. non-Hispanics to):

• 41% Hispanics vs. 18% Non-Hispanics – follow the trends
• 31% Hispanics vs. 14% Non-Hispanics – like to try new products first
• 30% Hispanics vs. 13% Non-Hispanics – like to be first to share with friends

Radio, Billboards and Infomercials (Still Rank High Amongst Hispanic Consumers)

• Radio: 72% Hispanics vs. 46% Non-Hispanics
• Billboards: 59% Hispanics vs. 35% Non-Hispanics
• Infomercials: 52% Hispanics vs. 23% Non-Hispanics

Source: Forbes, Advertisers Must Pay Attention to Hispanics as rising trendsetters in 2013, by Glenn Llopis, January 9, 2013.