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En Español: Accelerating Business Growth Using Hispanic Insights

1 Aug, 2013 By: Denira Borrero Response

As the biggest and fastest growing ethnic population in the U.S., more and more companies are looking at the Hispanic segment as their most promising opportunity for incremental growth during the next five to 10 years. You don’t have to look far for good case studies of marketers who have successfully courted this segment and continue to invest a growing amount of ad dollars in it — such as Wal-Mart, Procter & Gamble, McDonald’s, State Farm, AT&T and more.

The key across most successful campaigns is the ability to garner insights from unique cultural behavior for any given product or category consumption, and customize advertising creative — as well as media channel strategies — based on those insights.

Multiple studies and cases show that speaking to this market directly and in their own language and cultural cues work best. Hispanics watch both English and Spanish advertising, but they like ads 51-percent more if viewed in Spanish — and utilizing Spanish-speaking talent resonates 30-percent better for this audience according to a recent Nielsen report. From our own study of short-form Spanish DR campaigns, we see three-to-five-times the likelihood of success if original scripting and Spanish talent are used versus voice over, and that number is even higher for long-form.

It’s also important to acknowledge that, in many ways, Hispanic shopping behavior can differ significantly from the general market. Particularly for over-indexed categories, understanding what drives them to want and buy a particular product or service prior to developing a marketing campaign is a key success factor for growth. If done right, an effective Hispanic campaign can not only accelerate sales within the segment but also influence general market adoption of a product.

There are certain categories that are particularly important for marketers to garner insights from Hispanics when developing both English- and Spanish-language campaigns:

  • Health and beauty: Both Hispanic women and men spend more money on grooming, hair care and beauty products than non-Hispanics. A recent Univision study on Latina beauty showed that 69 percent of Hispanic women are concerned with looking good (and wearing make-up) compared with 46 percent of the general population. Culturally, for both men and women, an outer sense of attractiveness is associated with pride and confidence. Both Hispanic men and women spend more money for hair products, moisturizers, anti-aging creams, fragrances and bath products. They are also more likely to buy branded products in this category than the general market.
  • Baby/children’s products: One in four babies (one in two for Texas and California) born in the U.S. today are Hispanic. Hispanic families are more likely to have young children living in the household and are up to three times more likely to buy baby and nutritional products for their household.
  • Telecommunications: Hispanics have the highest technology penetration of all ethnic groups in the U.S. With 57-percent smartphone penetration, they are 20 percent more likely to own one compared to their non-Hispanic counterpart. Multiple studies have confirmed that, on average, they spend twice as much as the average household on wireless services and exhibit above-average consumption of mobile content.
  • Entertainment: Hispanics have more people in each household (3.4 vs. 2.2) but they also have bigger extended families that they socialize with often. Products that facilitate group entertainment, large food serving preparation, and overall family fun are particularly appealing to this market.

Other categories such as sports, nutraceuticals, financial services, and household appliances are also among the top categories to watch for this segment. With the right insights and campaign strategies, making Latinos a strategic focal point can prove to drive overall business growth across the board in multiple categories and will be increasingly important in the coming years. ■

About the Author: Denira Borrero

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