Don't underestimate the importance of ethnicity when targeting second-generation Latinos.
Last Friday, I had the privilege to interview David Iudica, director of strategic insights and research at Yahoo, regarding the second phase of Ethnodynamics.
According to the study, developed by Yahoo, Mindshare, and Added Value, marketers must understand the nuances between the two generations of Hispanics, and how acculturation affects their preferences.
Also, it emphasizes the importance of the vast Latino population growth with a projected spend of $1.5 trillion for 2015. I can't help but think about "Casa de mi Padre," the latest Will Ferrell movie, which was developed completely in Spanish in a clear attempt to reach Hispanic moviegoers.
The Evolving Latino Consumer
The findings stress the notion of how the majority of the Latino population is second generation, American born, and bilingual/English speaking. My colleague, Giovanni Rodriguez, and I have been discussing this phenomenon. So if you are a regular reader of this column, this might not be new to you.
What's important is that the study confirms the trend and provides some insights on the role ethnicity plays when targeting this demographic.
Latinos do nurture ethnicity more than other segments. This is manifested through a series of behaviors like exposing their children to their Latino background, trying to get in touch with their Hispanic identity, feeling very comfortable as it relates to their ethnicity, and being part of activities/traditions that celebrate their heritage.
The Generational Latino Gap
When it comes to generation breakdown, there are some differences that marketers need to consider. Let's take identity and values, for example.
First-generation Latino behavior is much more influenced by ethnicity. Their Latino background plays a major role when it comes to feelings about their individuality, religion, and values. It also affects how they socialize (neighborhoods, close circle of friends, etc.) and other behaviors (eating habits, celebrations, vacations, etc.). For second-generation Latinos, ethnicity is more about outward expression and bicultural in nature.
Content plays an important yet different role. First-generation Hispanics seek content that is in Spanish language and speaks to their ethnicity for topics like news, entertainment, and food. Second-generation Hispanics are more sensitive to how their ethnicity is portrayed in the media.
Second-generation Latinos have a stronger civic commitment. They care about the role Latinos are playing in today's American society. They are very involved in discussions about Latinos' role in the elections, immigration debates, etc. They want to play a major (influential) role and want to make sure that they are taken into consideration.
The Common Thread: Authenticity
For both first- and second-generations, ethnicity is an important part of the past and the present. Both segments agreed: it influences "who I am" and both feel very proud of "how I grew up" as well as "my ethnic identity."
Ethnicity plays a significant part of the Latino identity. As David Iudica, a bicultural Latino himself, said to me: "I have my feet firmly planted in both worlds, it's an important part of my identity."
Overall, it seems that marketers have a long way to go in order to better impact Latino audiences. For different reasons, both first- and second-generations feel they aren't being represented or spoken to in the right way.
This reminds me of a controversy that happened a couple of weeks ago around a proposal to recreate a mural on the walls of the Mission Drive-In Theater in San Antonio, Texas. The images, one of a Mexican sitting asleep against the wall with his sombrero covering his face and another with a stereotypical Mexican posing with a burro, backfired. Sometimes marketers, in trying to connect with Latinos, get hooked with their own stereotypes and generate negative reactions rather than relevance.
The (Right) Approach When Marketing to Latinos
A successful Latino marketing strategy should be built on a common thread: what are the attitudes and behaviors - related to your product category - that bring Latinos together?
A sense of pride, identity, and authenticity (the world I live in) are important for all Latinos.
Authenticity is key. Choosing an authentic Hispanic spokesperson, rather than a well-known spokesperson, is relevant to all Latinos.
Latinos crave ethnic-specific marketing messages, yet portraying an appropriate level of diversity in advertising is critical.
If done right, Hispanics will talk about advertising positively, but they will also be quick to call out negative portrayals.
Messaging should be customized to speak to the individual needs of each generation:
First-generations want Latino content, second-generations want mainstream content but with a Latino flavor.
Will Ferrell's "Casa de mi Padre" seemed to connect with the Latino audience and is set to be a box office success. But, when it comes to how brands "talk" to Latinos, not all are successful stories. Think of Jaime Jarrin, a Hall of Fame broadcaster, who has not been included in the Dodger's 50th-anniversary bobbleheads. Jaime is Latino and broadcasts in Spanish and, according to The Los Angeles Times, that's why he was left out. As the article says, "Jaime Jarrin's primary language has always been Dodger. It's a shame that, in this case, the Dodgers seem to be the only ones who don't understand."
Ask second-generation Latinos. See if they find this kind of behavior to be authentic.
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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.
Hong Kong, May 5-6, 2015
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