How can your brand effectively reach the $1.4 trillion Hispanic market? To engage a population of over 50 million, comprised of various subsegments, it is imperative that you understand the distinctions that exist within this audience.
As consumers that digest English and Spanish media, the Hispanic segment is highly in tune with brands marketing to the overall Hispanic population or a subsegment within it. Developing marketing campaigns that showcase comprehensive knowledge for the existing nuances of the Hispanic audience increases consumer purchase-and recommendation- intention, enabling you to grow your brand’s sales and loyalty.
To engage the Hispanic market, it is essential that you are incorporating these four segmentation strategies:
Ethnicity, age group and gender are the initial factors that should help guide your marketing strategy. Let’s take a few examples: The median age for U.S.-born Hispanics is 18, compared to 40 for foreign-born, and 42 for non-Hispanics. As Hispanic consumers skew younger, mobile marketing is key in reaching the segment. Insights indicate Hispanic millennials are more likely to use their smartphone while watching TV than their non-Hispanic millennial counterparts. Further trends highlight Hispanic women increasingly obtaining higher education, becoming entrepreneurs and making more purchase decisions. Your content should reflect these characteristics. Demographic components offer a myriad of insight to coax out any initial weaknesses to your Hispanic marketing strategy.
Assimilation and Acculturation
Ongoing trends reveal that Hispanic consumers are progressively speaking fluent English, with 89% proficient in 2013 compared to 72% in 1980. With the increase in English fluency amongst the Hispanic population, there has also been a decrease in Spanish television consumption. However, statistics indicate a substantial number of Hispanic millennials are streaming Spanish online content, demonstrating their switch in media rather than a lack of interest. As such, employing English and Spanish online content is pertinent to your Hispanic marketing strategy. The use of Spanglish within brand messages has also transcended relationships between brands and consumers, however, engaging consumers via code-switching requires extreme meticulousness to avoid inauthentic and offensive terminology and content.
There are over 20 Spanish-speaking countries, and with that, Hispanic consumers preserving the cultural practices of their own subculture, none of which are the same. This is particularly relevant to note when marketing to different regions of the U.S. When it comes to the top five Hispanic DMAs, though Los Angeles, Houston and Chicago are, each, comprised of over 70% Mexican consumers, the largest Hispanic group in New York is Puerto Rican, and in Miami, Cuban. By using a multicultural expert and narrowcasting your content to precise Hispanic subcultures, you build a deeper relationship with its consumers.
Generations in the Household
As buying decisions are contingent on household composition, it’s imperative to keep in mind that Hispanic consumers are more likely than Non-Hispanic White consumers to live in a multigenerational family household. Many factors contribute to this including millennials marrying later, Baby Boomers bringing parents to live with them, immigration status and economic conditions. Possessing clear data of your Hispanic consumer’s household such as family life stage, amount of money spent, lifestyle, interests, affluence and values.
Sources: MediaPost, Pew Research, Hispanic Online Marketing