DRMA White Paper — Emerging Networks: Multicultural Direct Response Advertising: The Savvy Marketer's Best-Kept Secret

Q: What do Amazon, Facebook, Google, Instagram, and Kickstarter.com all have in common (aside from being mega-successful brands and industry leaders)?

A: You won’t see any brand advertising from any of them any time soon! 

These uber-successful companies immediately saw and expanded the limits of direct-to-consumer advertising and transformed the way America shops. They are the leaders, but not the pioneers. Rather, what they have clearly shown is that traditional direct response advertising remains the most powerful, most flexible, and most cost-effective form of advertising. The best part is that you don’t need a budget the size of Google’s to see immediate results. In fact, a brand-new generation of brands are breaking new ground in direct response, shaking up the industry, and displaying explosive growth.

Q: Where is this growth coming from? 

A: Multicultural direct response advertising.

Because direct response marketing is focused on solving problems for its audience, it is also a highly ethical way of selling. It is one way for a small- to mid-sized business to affordably reach – and touch – the emotions of a prospect in a culturally relevant way. It’s also an extremely accountable way to run marketing for a small business, specifically because it is focused on return on investment.

No market segment has been a more perfect fit for direct response advertising than the U.S. multicultural market. More than 300 different DR accounts have seen healthy returns by connecting with multicultural consumers – consumers who, coincidentally, significantly over-index the national average for household income, education, and occupation.

In the past, “multicultural” was synonymous with “Hispanic” in the minds of many marketers – but that is no longer the case. There are literally dozens of ethnic segments making up the multicultural mosaic in the U.S. In addition, a great number of them (most notably the Asian, South Asian, and Arabic communities) greatly over-index in virtually every imaginable economic criterion an advertiser could ask for. 

These consumers have proven to be superior direct marketing customers across a broad spectrum of categories. Since so many of them are not consuming mainstream media, these campaigns are delivering exclusive and extended reach. 

Best of all, these consumers are being reached by the same creative that advertisers are currently running on mainstream media – thus eliminating one of the largest and most costly barriers to entry for most advertisers.

Here are some current examples of multicultural DR success:

  • An online automotive pricing website started with one network and 40 spots per week in October 2014 and has grown to eight networks and more than 400 spots per week today.
  • An online dating service launched with one network in May 2017 and grew to 15 networks and more than 1,000 spots per week by first-quarter 2018.
  • A major home mortgage company began with three networks and 105 spots per week in 2015. It is currently running more than 400 spots per week across 12 different networks.
  • A major hair restoration company tested five networks in 2015. It is currently active on 16 different networks in 2018, which represent the No. 1 lead-generation platform for this advertiser.
  • A major non-profit organization launched its initial effort on seven networks in third-quarter 2017. Its investment doubled less than six months later, leading to new non-profit testing.
  • A major home health product is now spending more than 50 percent of its response budget on these multicultural networks. It has tripled its weekly spend in less than a year.

The target demos for these clients range from adults 18-34 to adults 55-plus – and virtually everything in between! The keys to success for all of these clients and dozens of others is simple:

  • Significantly more affluent consumers
  • Less commercial clutter
  • Exclusive audience and extended reach
  • Aggregated cluster network delivery and efficiency
  • Low out-of-pocket cost

Our niche multicultural networks have proven one thing to these and many of the 300-plus direct response advertisers: size doesn’t always matter! Although these niche multicultural networks are in limited universes, qualified leads are generated and, more importantly, conversion rates are higher.

We have seen conversion rates from these aforementioned advertisers – as well as other categories, including health-and-beauty products, financial investments, insurance of all types, and others – range from 28 percent to as high as 68 percent. At the end of the day, it all comes down to converting leads to sales. Perhaps it’s time for more direct response marketers to take a harder look at these niche multicultural consumer markets to grow their sales to the next level. 

In a world of ever-shrinking budget and ever-growing demand for greater ROI, tapping into this lucrative market is remarkably easy and comparatively inexpensive. Emerging Networks, the leader in multicultural media marketing, provides a seamless one-stop shop, delivering millions of affluent consumers with a combined annual buying power of more than $500 billion.