Are Advertisers Under-Spending On the Hispanic Market
As reported by CNN on March 6th, 2019, the Hispanic population in US was 58.9 million strong. This made up for 18.1 percent of the population.
In 2015, the Census Bureau had predicted the Hispanic population to reach 119 million, which will approximately be 28.6 percent of the total population.
10 US states are home to more than 1 million Hispanic citizens and they include Arizona, Georgia, New Jersey, New Mexico, Texas, New York, Colorado, California, Florida, and Illinois.
These statistics unfailingly show how Hispanics make up a considerable part of the population and also the consumer market. This is exactly why commercial businesses are now concerned about securing a large base of Latino clients.
However, to do that, they need a marketing plan and an advertisement budget that allows them to reach out to prospective Hispanic buyers.
Read more about whether businesses need a bigger budget to make the cut.
US advertisers invested about $9.4 billion in 2018 to reach out to the 60 million Hispanic buyers in the country. Since the Hispanics account for a quarter of the population aged below 25, the advertisement budget allotted that year was a cause of concern. It only made for 6 percent of the total ad budget, which was sub-par, to say the least.
The advertisement industry still has a long way to go since the Hispanic population is now one of the largest demographic groups in the US. With an astounding population growth of the Hispanics, the advertisement budget should at least be in double digits.
As per Simmons 2018 State of the Hispanic-American Consumer report, Hispanic households have an annual expenditure amounting to $215.5 billion. They make up 10 percent of the aggregate discretionary spending in the country.
This confirms that not only does this ethnic group have a large demographic base but also considerable economic influence in the buyer market. Since they’ve shown a preference for apparel and accessories, the textile industry and fashion brands shouldn’t miss this tip.
If you evaluate consumer spending across different age cohorts, you’d realize that younger buyers are more likely to have higher income spending.
This is a lucrative opportunity for advertisers who wish to expand their scope into new markets. Tapping into the Hispanic market can assuredly reap huge profits for commercial businesses. All you have to do is identify the opportunity at hand and grab it before it’s lost.
Hispanic’s Key Shopping Behaviors
Advertisers and marketers can improve their business if they’re informed about Hispanic’s key shopping behaviors.
Here are some instances, extracted from the Simmons report, that you should keep in mind:
- Compared to non-Hispanics, Hispanic buyers are 21 percent times more motivated to buy after seeing online ads.
- Hispanic shoppers are attracted by video monitor displays at a major 91% rate.
- 76% Hispanics buyers are encouraged to buy after seeing shopping cart ads.
- Hispanics over-index on mall trips 63% of the times when they make more than four shopping trips in a week.
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