Marketers Reach Out to Hispanics - A Multidimensional Segment

It seems that U.S. marketers have finally discovered the Hispanic market. Not that it hasn’t been here for some time; it has. And not that it isn’t of substantial size; it is. So what has suddenly woken Madison Avenue to the potential in this market? A number of things.

First, consider the size of the Hispanic market—35.3 million people. Second, consider the growth rate—58 percent in the past decade (four times that of the overall population). Third, throw in the estimated $400 billion in buying power, which “seems impervious to the Nasdaq’s swoons” according to Marci McDonald of U.S. News & World Report. The end result is an extremely attractive market. And, unlike the case in the past, this market has finally attracted the attention of some big time marketers.

CBS has noticed. Hoping that the Hispanic market will help reverse the downward trend in the size of its soap opera audience, the network has introduced a Spanish simulcast of The Bold and the Beautiful titled Belleza y Poder (“Beauty and Power”). Liz Claiborne Cosmetics introduced its new perfume, Mambo, with a $20 million campaign targeting Latinos (among others), and the American Association of Retired Persons (AARP) has more specifically targeted the over-50 Hispanic market with a $3 million campaign. Among the other firms now increasing their efforts in this market are MasterCard International, Reader’s Digest, and Tillamook Cheese.

Even though there has been a significant increase in spending in the Hispanic market, Spanish-language and bilingual campaigns still account for only about one percent of the $200 billion advertisers spend yearly on broadcast media(another $250 million goes to magazines and newspapers). While some companies already spend heavily to attract this segment (e.g., Sears and AT&T has targeted this market for over 10 years), most have simply ignored the segment—until now. The fact that young Hispanics has become the largest ethnic youth population in the United States has made more marketers take notice.

Refining Hispanic Market Segmentation through Cluster Analysis

Reaching this segment may not be as easy as it seems, however. Roberto Ramos, president of the Ruido Group, a Hispanic-youth-focused communication agency in New York, notes: “One of the biggest misconceptions about Hispanic youth is that they are a homogeneous group. Puerto Ricans, Colombians and Cubans are not all the same. What works to attract one group may not work for another.” Erasmo Arteaga, a Sears store manager in West Covina, California, adds: “People think Hispanic means one thing… But it’s different from Miami to Southern California. And here in California, it’s not just Mexicans; it’s Guatemalans, Salvadorans, and other people from Central America.” Arteaga notes that two Hispanic-designated stores in Los Angeles only 20 miles apart reflect very different buying motives. While this segment is certainly a challenging market, there is no doubt among many marketers that Hispanics are worth the effort.

With the segment’s strong growth rates in population and in spending power, you can be sure that many more will join in. The question is, will they take the time and effort required to understand the diversity of this market, or will they simply attempt to reach Hispanics through the appeals and media they employ for other ethnic groups. One thing is sure: If they pursue the latter strategy, they won’t be in the Hispanic market for very long.

For more information, please complete this Hispanic Market Advisors contact form

Related article you might like: Hispanic Advertising Agencies at a Glance

Drive Bilingual Websites with User Research

Small and medium-sized companies that have operations in Spanish speaking countries rely heavily on bilingual websites to drive local business. In order for these websites to be effective, they must be localized in order to appeal to the core demographics of each local community. Many companies make the mistake of simply translating their English website copy into Spanish and find that their sites are not well received by the communities they are attempting to reach. Extensive user research must be coupled with proper translation in order to create bilingual websites that are effective at driving local Hispanic business.

Where to Begin

Before beginning the website design process, small and medium-sized companies would be wise to perform field studies and cultural probes into the communities they wish to reach with their company message. This user research will enable the creation of bilingual websites that are able to resonate with the customs and culture of your local Hispanic audience. When small and medium-sized companies rush into site construction without the necessary understanding of the local culture to which they are attempting to appeal, they suffer the consequences of a website that falls flat and does not generate the additional business activity they had hoped to achieve.

Research is the foundation on which quality bilingual websites are built and accurate information on the various cultures to which you are marketing, will enable your business to create vibrant and relevant online content that is highly likely to increase your sales base within any given region.

User Research

Many small and medium sized companies do not have the manpower necessary to conduct the listening labs and usability tests that are necessary in order to produce relevant bilingual websites. Their overseas communication strategy must therefore include hiring a marketing team that specializes in user research among Hispanic populations. It is important that the marketing company with which you choose to do business understands the nuances of Hispanic culture. This is important because it will ensure that they are using the right marketing tests for the market within each of the local Hispanic communities to which your company would like to appeal.

Continual Learning

Communities evolve over time and it is therefore imperative that your user research continues past the creation of your website. Ongoing learning will keep your website on the cutting edge of any new trends that spring up within your target Hispanic audiences in various communities. This knowledge and understanding will in turn enable your company to keep your website relevant and appealing to your target markets. The time and money invested into the research that will make your company website relevant, will be returned to you in the form of favor with your local market and increased sales potential.

For more information, please complete this Hispanic Market Advisors contact form

Related article you might like:
Small Business Tip:How to Operate a Bilingual Site in the US

Tapping into Hispanic Internet Users

Check out this SlideShare Presentation:

Tapping into Hispanic Internet Users

View more presentations from HispanicMarketAdvisors.