Are you trying to reach Hispanic customers domestically or internationally online?
Young Latinos as a targeted demo have fallen through the cracks in the general marketing arena. Simply, there is an enormous opportunity to market to them given that their population numbers are too big to ignore and their purchasing power so significant.
Stated Antoinette Zel, senior executive vice president, Network Strategy at Telemundo.
Are you targeting Latinos online?
Recent studies show that almost 25 Million Hispanics are online. This is more than half of the Latino population in the US. And this number as a percentage, is even larger if we segment this market by “acculturation”.
With the acculturated Hispanic population, Internet usage goes up to 78%.
The Hispanic population is online, browsing for products and services, and with a buying power of $800 billion, can you afford not to target them?
Here’s a fact, to the Latino population, what’s most important is content, not language.
In the past, the value proposition offered by Hispanic media companies was primarily the language, but this barrier is breaking.
Yes, a bilingual interface is optimal, but culturally relevant content also will get the attention of Latino users.
Spanish or English?
A recent study conducted by AOL segmented the market into 3 groups:
- 15% Mostly Acculturated
- 66% Partially Acculturated
- 19% Relatively Unacculturated
Curiously, research has shown that English-dominant Hispanics have more blogs than any other group in the U.S. while Spanish-dominant Hispanics have more websites than any other. The latter is due to the cultural tendency of trying to be connected, to try to have relationships and connections.
Yet, language is secondary to content appeal and cultural relevance.
Hispanics online at a glance
A recent study by the Pew Hispanic Center shows that 75% of the growth among Hispanic consumers will come from U.S. born persons as opposed to immigrants. The vast majority of the market place is American-born and the future of the growth will come from them.
Also English language adoption among Latinos is happening at a fast rate. The U.S. Latino population is becoming predominantly English-dominant. However, the Spanish language, culturally, is very important for the Hispanic community.
The Hispanic population is strong and growing.
Advertising to Hispanics and Latinos is evolving.
Companies who have not advertised to Latinos are starting to do so. And companies that have traditionally advertised on Hispanic Television, are now broadening their efforts towards digital marketing, be it Search Engine Optimization in Spanish (SEO), or PPC in Spanish, or social media.
Media Economics Group tracks advertising activity targeted to multicultural markets. They have been tracking online Hispanic advertising for more than 5 years. Their president, Carlos Pelay, has seen a notable increase in activity in terms of the number of active brands advertising to Latinos online. The major advertisers are present on the major portals. In terms of campaigns, Univision.com ranks number one, then AOL Latino, MSN Latino, Que Pasa, Batanga, Yahoo Telemundo, and StarMedia.
There are still a lot more advertisers that should be opening their eyes to Latinos online. There is a lot of economic action amongst Latino consumers that is making the cost barrier to enter the web significantly lower than what it was even two or three years ago.
The numbers are even more staggering if your company is targeting the Hispanic Teens. The Hispanic demographic segment, according to studies represents a purchasing power of $25 billion dollars per year. In fact, today, Latino youth stands for 20 percent of the total U.S. teen population with studies showing that they will reach 62 percent by 2020, increasingly becoming a very lucrative segment of the economy.