If multicultural audiences aren’t among your client’s targeted segments, they’re missing out on a huge chunk of potential sales. The good (and simultaneously tragic) news is that spending on ads targeting these audiences is practically nonexistent. So, this is your client’s chance to tap into a vastly underrepresented consumer base.

Targeted Segments: Advertisers Must Increase Focus on Multicultural Audiences

Multicultural Populations Are Vastly Underrepresented in the U.S.

According to a study by PQ Media, the U.S. is divided into the following ethnicities:

Hispanic: 19.3% of the U.S. population falls into this category
Black: 13.5%
Asian American: 6.5%
All Others: 60.6%

And yet, U.S. advertising and marketing spend divided by these targeted segments is:

All Others: 94.7%
Hispanic: 3.6%
Black: 1.5%
Asian American: 0.2%

The Hispanic, Black and Asian American segments make up a significant portion of the U.S. population today. PQ Media says multiethnic consumers “constitute the fastest growing demographic in the country.”

So, how does their lack of advertising representation and related funds make any sense? It doesn’t.

Hispanic Audiences

In this blog post, let’s focus on the largest of these multicultural targeted segments: Hispanic consumers.

Buying Power

Overlooking Hispanic consumers in advertising strategies is costing brands trillions, according to an article by AdExchanger. The purchasing power of Hispanic and Latinx populations in the U.S. is expected to reach $2.6 trillion in 2025. And that purchasing power will only grow in the future.

Hispanic and Latinx consumers make up 25% of the millennial and Gen Z population in the U.S. As they continue to enter and advance in the workforce, their purchasing power will multiply.

One big problem advertisers have when strategizing around targeted segments is a lack of information about them. So, here’s some data you can work with.

What They’re Looking for

According to a study by Refuel, first and foremost, Hispanic consumers view shopping as a relaxing experience. They want to wander stores or websites in search of something new and interesting.

These consumers are also on the hunt for deals. According to Refuel:

Their top goal when shopping is to save as much money as possible: 77% of this consumer group agrees
They usually shop at their favorite stores because they know those stores offer prices they like: 66%
They’ll shop at new stores to check out a sale: 53%

Your client can also appeal to Hispanic consumers’ Earth-conscious side by promoting:

Natural products: 59% of Hispanic consumers buy natural products because they’re concerned about their family’s health
Environmentally conscious products: 56% are willing to pay more for a product that’s safe for the environment
Environmentally conscious practices: 55% are more likely to make purchases from brands that are committed to reducing their environmental impact

What Types of Ads to Use

According to Refuel, the top sources of information Hispanic consumers prefer and use are:

The Internet: 91.6% of consumers are most likely to look for information on future purchases here
Social Media: 81%
TV Ads: 77.8%
Newspapers and Magazines: 65.9%
Billboards: 64.1%
Radio: 58.1%
Podcasts: 51.4%

Be sure to make ads inclusive. Especially if Hispanic consumers are among the targeted segments your client is interested in, make these ads inclusive.

Utilize Hispanic and General Channels Equally

Also, don’t just advertise to Hispanic consumers on Hispanic and Spanish-speaking channels. Refuel’s research shows that Hispanic consumers consume essentially as much general content as they do Hispanic:

TV: 53% watch general TV and 53% watch Hispanic TV
Radio: 51% vs. 52%
Websites: 48% vs. 50%
Influencers: 44% vs. 44%

So, try not to favor general or Hispanic media over the other.

Want to learn more information on where to reach targeted segments like Spanish Speaker(s) and Spanish Language TV Viewers? Check out their profiles on AudienceSCAN on AdMall by SalesFuel.

Photo by: Christina @ wocintechchat.com