The United States Census results generate high expectations; attracting both experienced Hispanic advertisers - the "aficionados" - and newcomers, the "casual fans." Every 10 years, representation in Congress and the distribution of $400 billion each year in federal funds are at stake.
However, for marketers, the Census data has a whole other meaning. And this is even truer for Hispanic marketing, getting everybody riled up, making predictions, and placing bets on what to expect. While changes in population do not happen all at once, the Super Bowl of demographic surveys has been the major event supporting the growing interest in the Latino market. Take ad investment for example. In 2002, the year after the 2000 Census results were released, Hispanic ad investment soared to $3.4 billion, a 27.4 percent growth compared to the 4 percent growth in the previous year.
The Faces That Are Building America
The total U.S. population reached 308,745,538 in 2010, an increase of 8.8 percent versus 2000. Interesting to note, if we eliminate the Hispanic population numbers, America's population growth would have been about half of that: 4.9 percent. And if we do the same exercise, state by state, in some cases when subtracting the growth driven by Hispanics, some states would have shown a decrease in population. Needless to say, if you want to grow your business, you better be targeting Latinos.
Although the final results won't be ready until around March 20, the bits and pieces of Hispanic census data that have already been released are sufficient to describe the new picture of Latinos in America: Hispanics are suspected to grow by 29.2 percent and make up 53.3 percent of the total population growth. Not only are they leading population growth as predicted, Hispanic numbers are exceeding projections.
The New Picture of Latinos in America
Growth is not the only thing that the 2010 Census results will be showing. There are new dynamics going on that will have a huge impact in the way we do marketing to Latinos. Comparing the past three decades, the shift is pretty clear:
Implications for Marketers
For the "aficionados," it might be time to expand their efforts beyond the traditional Hispanic DMAs. Spanish media follows the Hispanic population long before the Census data is released and it's surprising to note that cities such as Kansas City, Little Rock, Minneapolis, Oklahoma City, and Nashville are all fully-equipped with Spanish-language newspaper, radio, and broadcast.
Aficionados also have the unique opportunity of strengthening their marketing efforts in traditional Hispanic DMA targeting bicultural, bilingual Hispanics. U.S.-born Hispanics, while easier for them to navigate both English language and U.S. culture, keep strong connections with their Latino culture and don't follow the same response patterns as a regular American.
For "casual fans," the traditional DMA with a growing second generation with higher use of technology sets the opportunity for very effective and efficient test marketing by leveraging digital and new media.
Both aficionados and newcomers should consider the "new Latino DMAs" as a perfect testing ground that is less costly to operate.
As the consumer base continues to grow, as well as its purchasing power, Hispanics are becoming more sophisticated, educated, and affluent consumers. There is a big opportunity for technology products (mobile phones, tablets, etc.) as well as luxury goods to grow their business by targeting Latinos. The same from an engagement standpoint; we need to go beyond advertising to effectively tap into this mobile, digital, and bicultural consumer.
So, if you really want to become a Latino marketing aficionado, you don't need to wait for the next Super Bowl of demographics. The game of Latino marketing happens every week.
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Gustavo Razzetti is EVP, Managing Director of Lapiz, the Latino shop of Leo Burnett. He has 20+ years of experience in integrated marketing communications in U.S. and Latin American markets.
A change agent, with the expertise of transforming agencies into digital at the core shops, Razzetti has become one of the leading voices when it comes to understanding the new market dynamics of US Latinos.
Former Chief Strategy & Engagement Officer at Grupo Gallegos, president of GlobalHue NY and CEO of Euro RSCG Latino. Razzetti's career is marked by extensive experience working with top consumer brands such as Comcast, Walgreens, Verizon, NestlÃ©, Chivas Regal, General Motors, Coca-Cola, and BBVA, and 200 others. He also served as CEO of Euro RSCG both in Puerto Rico and in Argentina. Prior to that, Gustavo was CEO and founding partner of WhyNet - the no. 1 interactive agency in Argentina.
Strategist by conviction, digital pioneer by choice, leader by evolution; Razzetti has received recognitions that include Effie awards, Gran Prix AMBA, Euro RSCG's CBI Award, and Strategic Planning Director of the Year, McCann Erickson. Many of the campaigns he strategically led won Cannes, Clio, New York Festival, London, and FIAP awards, among others.
On a personal note, Gustavo loves scuba diving, bicycling, gourmet cooking, and fine wines.
December 5, 2013
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December 12, 2013
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