Sunday, April 26, 2009

US Hispanic and Latin American Market or Markets?

It is probably fair to say that many marketers have long since been unsure how to treat the US Hispanic market. It is a large market worth approximately one trillion dollars a year (Nielsen Media Research) is worth reaching, but the fact that there has yet to be a consensus on how to address that market is and therein lies the problem: Is it a completely separate market with its with own unique interests and purchasing needs? Or is it to be treated as an extension of the existing Latin American market? Keep in mind that the Latin American market is itself actually a diverse hodgepodge of cultures and peoples with varying consumption habits.

Let’s start coming to an intelligent and informed answer by taking a look at who actually constitutes the US Hispanic market. Contrary to popular believe this segment isn’t exclusively, or even dominated by, illiterate illegal immigrants. That doesn’t mean that such people don’t exist, but they’re certainly a very minor slice of this rapidly evolving market at this particular point in time. In fact, a 2005 study showed the median US Hispanic household income to be nearly $35,000, lagging only $13,000 a year behind the national average.

Today Latin-American immigrants in the US can be found working in virtually every city, in every occupation and in every socioeconomic stratum. Thinking about them only as low income families probably won’t yield the best marketing results, and may actually offend some middle and upper class Hispanics who might view advertisements with a sharp eye looking for any form of stereotyping. This is decidedly different than the Latin American market(s) where most countries have a very sharp delineation between classes and don’t have much reason to look for stereotyping as a general rule.

Another common misconception is that the US Hispanic market isn’t internet savvy. A 2004 study by eMarketer concluded that Latin-Americans would comprise 8.4% of all US web surfers by 2007. The combination of affordable computers and inexpensive internet access available in virtually every city and town in America makes is hard to understand why any marketer wouldn’t believe that a group would be online based solely upon their ethnicity. Failing to realize this fact alone can cause a company to appear less Hispanic-friendly. Again, this is a sharp contrast to most Latin American markets where Internet usage and computers aren’t nearly as prevalent as they are in the United States.

Don’t get the impression that there is nothing to take away from lessons learned in the Latin American market when it comes to the addressing needs and wants of Latin-Americans. For example, the vast bulk of the current US Hispanic market still shows a strong focus on family values and tradition. These are consistent with those of the Latin American market on the whole, and parallels between the two may prove useful during brainstorming sessions. Don’t, however, assume that what is a good advertisement or campaign for one market will automatically work for both.

Related articles you might like:
*Cultural Nuances in Latin American Countries
*Latin American Communities in Central and South America


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