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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Developing A Multicultural Facebook Branding Strategy

Marketers struggle to find the best ways to use social media as a branding tool. With social media use rising among all demographics, shifting brand campaigning to these platforms is increasingly important, especially for marketers targeting a Hispanic audience who average 4.0 hours per week on social networks. Non-Hispanics fall below them at 3.7 hours per week.1 Though Hispanics spend more time on social media sites, Hispanics surf the web almost three hours per week less than non-Hispanics.1 This means that proportionally, social media is far more impactful to Hispanics than non-Hispanics, making these platforms essential marketing tools for this audience. Hispanics are most drawn to Facebook: 60.7 percent log in at least once per day and 73 percent log in at least once per week.2 No other social media network comes close to such high Hispanic usage percentages. Marketers must realize that social media is the future of marketing to Hispanics, and brands will have the best chance of reaching Hispanics through Facebook (see charts below). Many brands have attempted the social media transition, but few have optimized success. A fine line separates marketers from using social media “the right way” and “the wrong way”. Marketers have many factors to consider when starting a social media campaign aimed at this fluid market. If successful, marketers will reap the rewards of $1.5 trillion in Hispanic buying power projected within the next five years.3 In this four-part blog series, we will outline the eight steps to successfully integrating a Hispanics branding campaign into Facebook. Part One of Four: Developing a Multicultural Facebook Branding Strategy 1.  Define and research your audience. Define your target audience for your product and identify the products and services that your Hispanic market segment needs or wants. Note: simply identifying a target group as “U.S. Hispanics” is too broad and leaves a large margin for error. Successful Facebook pages are geared toward a smaller, more specific audience.4 As the U.S.’s largest minority segment, Hispanics share many similarities but they are also...

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Campaigning for the Latino Vote

What’s the best demographic investment your organization could make? Today, more than ever, party campaign strategists believe the answer to successful campaigning lies in America’s fastest-growing population group: Latino Americans. For the first time in American history, this year both Republican and Democratic parties selected Latinos to speak in the prime time slot of their party’s respective national conventions. “We need the Hispanic vote and want to win it,” says the 2012 Presidential candidate Mitt Romney’s youngest son, Craig Romney. The Romney campaign releasing Spanish advertisements as well as the party’s $3 million investment in finding and financing at least 100 new Latino legislative candidates lends evidence to support the Republican Party’s professed desire to attract Latino favor. This project is being sponsored by the Republican State Leadership Committee and is known as the Future Majority Project, which is appropriately named in recognition of 2010 U.S. Census results showing Hispanics to represent more than half of all U.S. population growth over the past decade and representing America’s fastest-growing population group. If that were not evidence enough that the Republican Party is making a concerted effort, Republicans selected Florida Senator Marco Rubio to speak at the primetime slot of the party’s national convention. Rubio related the story of his Cuban parents who immigrated to the U.S. The Republican Party is not alone in investing money and engagement into a Latino future. The Democratic Party recently featured charismatic San Antonio, Texas Mayor Julian Castro in the primetime slot at their party’s national convention. More than that, between mid-April and June, the Obama campaign spent $1.7 million on advertising directed at Spanish-speaking Hispanics, according to SMG-Delta, a media firm that tracks campaign advertising. “Every purchase a Latino makes is a ‘vote’ for a brand,” said George L. San Jose, president and chief creative officer at The San Jose Group. “The Hispanic vote is just as important to the candidates as it is to brands. Campaigning leads to increased spending and ultimately ROI.” In 2012, the candidates have...

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