Media convergence
The ability to understand and accurately measure activity and link online ads to offline purchasing behavior is critical.
Smartphones
Mobile measurement is required to stay head of the growth of this media platform.
Cross-media ad campaigns
Massive growth of online video games played and shared online leads the way for more successful interactive and cross-media advertising campaigns to appear. Adoption of innovative advertising across screens and activities will increase.
Commercialization of social networking hubs increase
Social media provides a new sales channel for establishing product awareness and commercializing brands to better support traditional advertising or text-based ads.
More interesting and interactive online ads
Increased use of more creative advertising and content models online such as video, attention-seeking page takeover ads and mechanisms for greater interactivity will drive the next era of Web development.
Online Hispanics are a lucrative target
Hispanics, by nature, are an interdependent-interconnected culture – which is why we see them over-index on connected media (e.g. cell phone usage, social networking, blogging, etc.). Any technology that facilitates connecting is high-value for the Hispanic consumer.
Technology also allows Hispanics to connect with folks that are like them (e.g. bilingual/bicultural, etc.)…it also gives them a voice. We could elaborate on the latter, but that would be a separate blog all by itself. The bottom line is that this segment is a lucrative one for marketers interested in effectively and affectively reaching the Hispanic influencer target.
The Online Hispanic Community
English-language dominant Hispanics are twice as likely to be online than their Spanish-language dominant counterparts; which means that it’s a younger audience, probably US born (or immigrated at an early age), technologically acculturated, and a brand influencer (based on MRM-MSN study of 2007). This group tends to be better educated, earn a greater HH income than their immigrant parents, and have a larger family size than the non-Hispanic US population, as well.
In terms of lifetime value for a brand, this group is comprised of connected brand influencers. Acquisition costs are less expensive (online), and their brand influencer behavior (promoters) yields a greater ROI and ROR.
Reaching this consumers with Hispanic off-line campaigns
English-language dominant Hispanics tend to primarily engage with English-language media (and while this means that you may be reaching them with your English-language campaigns – you probably aren’t making an affective brand connection). Assuming that your current off-line Hispanic strategy can be thrown on-line and hit the same target is erroneous. The digital divide that exists in the general market also exists within the Hispanic market.
To reach and touch the most lucrative segment of the Hispanic market (the online, English-language dominant Hispanic), you must tailor your general market ad campaigns so that they are optimized for linguistic and cultural relevance (just as you would for campaigns targeting a highly-valued consumer segment).
Myths and Truths
In recent years, the Hispanic market has undergone a dramatic transformation – one that marketers need to be aware of because their marketing efforts may not be reaching the intended target. In honor of Hispanic Heritage Month, let’s de-bunk some key myths.
#1: The Hispanic market is Spanish-language dominant.
TRUTH: Foreign born immigrants drove the growth of the Hispanic market from 1960 – 2000; however, the growth from 2000 to 2020 is coming from their children (e.g. the second generation or US born Hispanic). U.S. born Hispanics are English-language dominant and engage with English language media (60% of today’s Hispanic market), while the first generation (40% of the market) is primarily Spanish-language dominant.
Growth in the Hispanic market will come from the second-generation in the next couple of decades as well.
Savvy marketers need to understand and engage this second-gen. segment – the bridge generation – to pull first-gen. Hispanic consumers AND folks from the general market (including third -generation Hispanics).
#2: The Hispanic market is not online.
TRUTH: According to Forrester Research, the second-generation Hispanic is extremely, technologically acculturated, adapting new technology at faster rates than the first-gen and the general market. And, second-generation Hispanics spend more time online than with any other medium. In fact, among Internet users, more English-language dominant Hispanics have a blog than ANY OTHER demographic group (eMarketer.com).
In short, the Hispanic market is online, but it’s primarily the U.S born, English-language dominant Hispanic that’s online, not the first-gen. immigrant.
#3: The Hispanic market is brand-loyal.
TRUTH: First generation Hispanics show much greater brand loyalty than second-generation Hispanics; yet, the second-generation is the brand influencer within a multi-generational family.
As children of immigrants, US born Hispanics translate the language and interpret the US culture for their parents. (This is also true of immigrants who come to the US at an early age, the so-called 1.5 genners). This early childhood behavior migrates to adulthood, making them brand-influencers throughout their life, and yet they themselves aren’t particularly brand loyal.
