The online coupon company rolls out a Hispanic marketing program to tap into a growing demographic.
Online coupon company CoolSavings on Tuesday announced the launch of a marketing program designed to target Hispanics, hoping itself to attract marketers trying to reach that increasingly important demographic.
By the end of the year, the Chicago-based company expects to identify and sign up more than 500,000 Hispanic customers for the program, which will allow marketers to tailor their messages for the group.
"There's an opportunity through the net and this self-selecting service to build a clean one-to-one database that you can target for ethnic-specific marketing," said Ken Treske, chief marketing officer at CoolSavings.
CoolSavings delivers email offers in the form of 17 industry-specific newsletters to consumers who sign up on its Web site. Since its launch in 1997, CoolSavings has registered 26.5 million consumers, who on average choose five newsletters and receive about a dozen email offers per month.
Treske said internal research estimated that about 7 percent of CoolSavings' customer base is Hispanic. According to comScore Media Metrix, 12.4 million Hispanics have Internet access.
The site now asks new customers if they wish to receive offers associated with Hispanic, black or Asian ethnic groups. Armed with this data, marketers can pitch ethnic-specific products or tap into a growing but under-penetrated demographic.
As an example, Treske pointed to research by the Association of Hispanic Advertising Agencies that shows Hispanic families spend twice the amount the average U.S. household spends on diapers. A diaper manufacturer could tap into CoolSavings' Hispanic database to offer discounts.
"The CPG [consumer package goods] area has been a strong proponent of targeting," Treske said. "This is really an opportunity for CPGs to build their relationships with these growing families today."
Marketers have zeroed in on Hispanics as a key consumer demographic as the group has grown in size. In January, the U.S. Census Bureau released population estimates that showed for the first time Hispanics outnumbered blacks in the United States. With 37 million people, Hispanics ranked as the top minority in the country. Hispanic consumers are estimated to have a combined annual purchasing power of $450 billion, according to DRI/McGraw Hill.
On top of that, Hispanics, while lagging the overall population in Internet use, tend to be more receptive to Internet marketing offers, according to a survey completed by AOL and pollster RoperASW.
Treske said that while marketers try to reach Hispanics, most media options are inefficient. Marketers have already saturated Hispanic-focused television and magazines, and online coupons will give them a chance to precisely target a self-selected audience, he said.
"They're able to eliminate a huge amount of waste they might incur in any other medium," Treske said.
What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.
December 9, 2014
1:00pm ET/10:00am PT