Exposing the Millennial Myth – What’s the real deal?

Jun 13, 14 Exposing the Millennial Myth – What’s the real deal?

Posted by in Total Market

By Cassandra Bremer, Content Manager and Developer at The San Jose Group Quarterbacks throw Hail Marys; hockey players pull their goalies; advertisers post viral videos. Sure, viral videos have their place—views boost recognition, keep brands top-of-mind, increase SEO and occasionally bring viewers back to the brand’s website for those coveted conversions. However, when brands develop videos as last-ditch efforts to win over the young, social media-obsessed and self-absorbed Millennial consumer group (roughly speaking, those born in the ‘80s and early ‘90s), they’re wasting their resources. According to The National Chamber Foundation’s “Millennial Generation Review,” this generation, 80 million strong, has a $200 billion direct purchasing power, $500 billion indirect spending power and will outspend the Baby Boomers by 2017. As such, marketers are on the Millennial treasure hunt, and every Millennial obstacle (i.e., increased mobile technology use, decreased attention span) has brands on the quest creating new advertising avenues. However, they largely misunderstand the true Millennial market, so the loot they’re trailing is little more than fool’s gold. Opportunities to win a greater portion of their spending power exist only once brands shed their stereotypes. Although TIME characterizes Millennials as “Lazy, entitled narcissists who still live with their parents,” the reality—in most cases—is quite the opposite. While Millennials are not carbon copies of their parents, they do share a plethora of similarities with the Baby Boomers and Generation X, including education and families. In a recent study, “Millennials as New Parents,” Barkley found that older Millennials (ages 25 to 34) actually are, contrary to popular beliefs, hard-working and family-focused: 63% are married with children, while 44% are “very financially stressed.” So with their families in mind, they’re not working to splurge entire paychecks on the latest and greatest trends. In other words, Millennials aren’t the types of consumers brands think they’re targeting. The narcissistic, social media obsessed, younger spenders concerned with keeping up with the Jones, Kardashians and everybody in between are a part of the mix, but according to Maureen Morrison, they only make up...

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Education Statistics of Hispanics and African Americans Infographic

By Martha C. Rivera, Director, Strategy and Insights and Beata Luczywek, Junior Account Executive Education is a growing trend among multicultural markets. Today, a significantly greater portion of Hispanics and African Americans has a high school diploma than 12 years ago. Dropout rates from 2000 to 2012 have decreased significantly for all minority groups: Hispanics, Blacks and Asians. Furthermore, Hispanics are by far the largest minority group on college campuses 1 and these trends keep growing. The College Board predicts that from 2012 to 2019, the number of White college students will increase by 5%, while the number of Hispanic college students will increase by 27% 2. These minority groups’ gains in educational attainment indicate a need for institutions, such as schools and other businesses that offer educational goods and services, to establish programs specifically for these groups. “The expanding success of multicultural groups in education opens opportunities for many organizations,” upholds George. L San Jose, president and chief creative officer at The San Jose Group. “The organizations can expand their services to multicultural members of their community by playing a vital role in making dreams come true, while, at the same time, experiencing significant business growth – a mutually beneficial...

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11 Million More Reasons to Market to Hispanics

By: George L. San Jose, President and CCO of The San Jose Group Major advertisers will soon have approximately 11 million more reasons to establish a robust multicultural marketing program. For the second time in thirty years, the Hispanic population in the United States could grow by millions overnight. As the government continues to devise a plan for documenting immigrants—who are energetic consumers and large contributors to the $1.4 trillion Latino spending power, but not included in any of the demographic or physiographic information used by marketers to allocate budgets and resources—marketers must proactively connect with this rapid growing and ever powerful Hispanic consumer, or face a declining market share. Hispanics make up 16.2 percent of the overall U.S. Population and, most importantly, account for an average of 37 percent of the population across the U.S.’s ten largest DMAs. With immigration reform, these numbers will surely surge again. In the 1980s, millions of undocumented immigrants who gained legal status in the U.S. through the Immigration and Reform Control Act were active consumers yet ignored by marketers who based their budgetary decisions on published reports instead of the U.S.’s actual population size and demographics. Retailers and merchants in Hispanic communities benefited from the strength and the power of these undocumented residents. For example, during this time small Hispanic supermercados (also known as “bodegas”) outperformed large general market grocers by a 3:4 ratio on many well-known American products when marketed in-language. When Congress passes fair and sustainable immigration reform legislation, the U.S.’s Hispanic population could reach upwards of 60 million with nearly 55 percent residing in the top ten DMAs. Most importantly, the largest percentage of this population speaks and consumes media that is culturally relevant and offered in their preferred languages. Altogether, this reformation creates marketing opportunities for TV and radio broadcasters, online/mobile marketers and overall marketing communication strategists as more advertisers seek to reach this growing consumer group. The Hispanic segment will now be visible and real, showing up in consumer research data as well...

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Ethnic Buying Power: Population Growth and Income Infographic

By Martha C. Rivera, Director, Strategy and Insights The estimated buying power that U.S. multicultural consumers will attain by 2015 is more than three trillion dollars. Marketers have realized long ago that the buying power of the Hispanic population grows significantly from year to year. However, many are not aware that the buying power of some other minority population segments, particularly African Americans and Asian are also on the rise.  It has been estimated that the Hispanics buying power will increase by 50%, while the African Americans and Asians spending power will grow by 25% and 42% respectively.  The resulting disposable income should spark the interest of marketers in their brand’s minority audiences. “The enormous growth of the disposable income amongst multicultural segments of population is something that marketers across the country should realize in order to explore creative ways to reach out to these important population segments. The figures shown in the attached Infographic speak by themselves,” said George L. San Jose, president and chief creative officer of The San Jose Group....

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Don’t Drink the Kool-Aid: Marketing to the Reality versus the Buzz

By: George L. San Jose, President and CCO I’ve been in the marketing and advertising profession long enough to see the good, the bad and the ugly. I’m well aware of the kid gloves typically used when broaching the topic of multiculturalism in today’s market. Committing to the spirit of new media, where everyone has a voice that deserves to be heard, I write this post from an open, honest heart reflecting my personal voice – independent of the agency. Advertisers who base their budget decisions on marketing to the “same old” might consider catching up to today’s market reality instead of marketing to their own likes and likenesses. There is a “not so new” American consumer and if you haven’t acknowledged them yet, ask the Republican Party why they lost the presidential election. In Mitt Romney’s first interview with the Wall Street Journal since the election he said, “We weren’t effective in taking my message primarily to minority voters — to Hispanic Americans, to African Americans, other minorities.”  Yes, just that straight and simple. Not surprising to anyone attuned to today’s complex markets but very surprising to the advertisers of yesteryear. Let’s put this in perspective. Currently, an estimated 90-95 cents out of every dollar spent by major advertisers is directed towards marketing to the diminishing “same old” (known in the industry as the “general market”). You know who I’m referring to, the same old group of monolingual, monolithic consumers with similar interests, living in the same neighborhoods and consuming the same proliferated media. For brands campaigning to win, here is a simple set of profiles to evaluate your company’s grasp of the market reality: ・ Generalist: Those who do nothing towards multicultural audiences because they do not want to take the risk of allocating scarce resources to the unknown.  As a result, they cling to the safety and predictability of their externally controlled declining market share. ・ Buzz Makers: Those who talk about it, brag about it, and even have multicultural departments in charge of protecting their state secrets but...

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The Impact of Brand-Centric Hispanics on CPG Shopping Trends

Allocating advertising budget money is a complicated task, but one thing is simple: spending a portion of that money on the Hispanic market is a must for CPG companies to increase sales and solidify their brand as a staple in their shopping carts. In 2010, Hispanics spent over $125 billion on CPG products: 11.8 percent of total U.S. CPG annual spending.1 Though Hispanics have historically been overlooked in CPG branding, $125 billion is a reason to take a second look! Hispanic consumers are proportionally the largest segment of CPG consumers. They spend eight percent more on CPG products than any other population and this group shows no signs of slowing down.2 Hispanics spend over 50 percent more on CPG products over their lifetimes than non-Hispanic whites and over-index in a number of categories.3 If marketers have been convinced the Hispanic market is not worth a segment of their budget, they should reevaluate that decision or risk falling behind their competitors. Recent market studies reveal Hispanic consumers have a large impact on the CPG market and company revenue. Assigning funds to target the Hispanic market will drive a 35 percent revenue increase in just five years for CPG companies.4 The possibility of such a drastic revenue increase by targeting just one group is impractical to ignore. The market’s history highlights a correlation between Hispanic budget share and organic revenue growth rates: a decline in Hispanic spending by CPG companies also means a decline in revenue growth.4 The numbers don’t lie! Hispanic food at home purchases are estimated to increase annually at a rate of 5.7 percent.4 Non-Hispanics are only expected to increase those same purchases by 2.5 percent annually.4 CPG brands, take note: not only do Hispanics consistently spend more money on these products, but they are also significantly more brand-centric than other demographics. Therefore, the Hispanic market is one of the most effective market segments to target. Hispanics are markedly partial to strong branding, often choosing brands because they are “hot” or because they...

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