Se Habla Español: Is the Hispanic Direct Response Growing?
With buying power that exceeds $1 trillion and a population growth that makes up for a large proportion of the entire population, Hispanics are a formidable force.
Their influence on the nation’s economic activity and role in the business arena can’t be denied. That said, it’s understandable why the market for Spanish-speakers will be trending in the near future. This is one of the many reasons why the Hispanic market is ripe with opportunities for serious players.
Talk about immediate returns and instant results—the Hispanic market’s direct response rate is showing remarkable fiscal optimism. This is an open call to businesses to invest in the Hispanic niche markets and build their future.
Here are some signs that make this a promising investment.
Hispanic Response Rate is Greater than Caucasian Response Rate
Aggregate sales, lead responses and conversions have shown a commendable performance as a result of Hispanic direct response campaigns. In comparison, campaigns in English have not accrued results half as great as this. Simmons National Consumer Survey has shown that while 15 percent of Hispanics make a purchase through direct response, only 11 percent of other Americans follow suit. Needless to highlight, Hispanics are a more profitable market to invest in.
Hispanics Respect Localized Ads
The Simmons research also indicates that Hispanic buyers have shown greater reverence for businesses that have attempted to make ads that are ethnically relevant to them. Out of loyalty and their own ethnic affinity, Hispanic buyers displayed higher product recollection when marketed to in Spanish.
Sales From DRTV
Direct Response Television has been particularly popular among Hispanic buyers. Over four in every 10 Hispanics were reported saying that the major reason for making direct purchases is the ease of shopping from home. The convenience of purchasing from television, mail or telephone was ranked in the following sequential order: 45%, 44% and 41%, respectively.
With such promising factors backing up the success of investing in Hispanic communities, businesses are still hesitant. While their entrepreneurial confidence may not be the reason, other things do factor in.
Problems in Hispanic Direct Response Marketing
Cost and Time Requirements
In order to modify the existing commercials for a Spanish-speaking population, businesses would have to invest in Spanish language stations. If not that, they’d have to make new advertisements in Spanish from scratch. That requires funds as well as an expert native team as well. The trade-off between directing dollars toward this goal or stretching it to cover current expenses is a real dilemma.
Understanding Hispanic Culture
Advertisers may or may not be of Hispanic origin. This poses a serious challenge for them. Understanding your target audience is the first and foremost requirement for a marketing plan. It’s important to understand the media channels they follow and methods of payment they prefer. In fact, Hispanics prefer buying online and with cash, equally.
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