Carat USA and Aegis Media - Multi-Cultural Marketing released the finding of their new Hispanic Consumer Connections research study that according to them reveals that 90 percent of Hispanic media budgets are working hardest against targeting only 20 percent of the Latino population, due to old assumptions, outdated information and approaches — missing the opportunity to drive significant business value among 80 percent of the Hispanic market.
First, Bull Shit
Second, Bull Shit and this appears in Media Post magazine online where as I have stated before US Hispanic demise pundits have a platform that allows for the dissemination of “Bull Shit” without being challenged.
Third, Bull Shit and the whole methodology for this study is based on: It originated with a custom survey questionnaire administered to a total of 2,019 Hispanic adults ages 18 and older, with 1,519 administered online to a random set of respondents and 500 collected via a telephone re-contact methodology. The telephone re-contact sample was randomly selected among prior respondents to the Experian Simmons NCS/NHCS survey and included Spanish dominant Hispanics and English dominant/bilingual Hispanics. Responses were then modeled against Simmons NCS/NHCS survey of nearly 7,000 consumers.
That’s right, an online study that projects that we are DOOMED and got it all wrong.
To read the release see below:
CARAT STUDY REVEALS 90 PERCENT OF U.S. ADVERTISERS’ HISPANIC MARKETING DOLLARS PREDOMINANTLY TARGETING ONLY 20 PERCENT OF HISPANIC MARKET
NEW RESEARCH UNCOVERS DRAMATIC SHIFTS IN FASTEST GROWING SEGMENT OF U.S. POPULATION
New York, New York, Oct. 18, 2011 — Carat USA, a global independent media network and an Aegis Media Company, today announced surprising results from its proprietary Consumer Connections research study, which examined the media consumption and purchasing habits of the fast growing Hispanic consumer segment — revealing many unexpected shifts in behavior that have significant implications for marketers. In the most surprising twist, the data showed that 90 percent of Hispanic media budgets are working hardest against targeting only 20 percent of the Latino population, due to old assumptions, outdated information and approaches — missing the opportunity to drive significant business value among 80 percent of the Hispanic market.
According to the U.S. 2010 Census, there are 50.5 million Latinos in the U.S., an increase from 35.3 million in 2002, including a thirteen percent jump from 2007 to 2010. The 20 percent of the Hispanic population that marketers currently target (which represents only 11M of the 50.5M) are typically segmented based on language and acculturation levels. The remaining 80 percent (38+M people) is comprised of multiple segments, which are as complex, multifaceted and nuanced as their general market counterparts. Carat’s industry leading proprietary research, which studies the preferences and behaviors of thousands of Hispanic consumers, reveals deep analytical insight across a variety of segments of U.S. Latino consumers, including: current patterns of spending, financial beliefs, marketing influence, and media consumption.
“A one size fits all model approach to U.S. Hispanic consumers does not work anymore,” said Laura Hernandez, director of Multi-Cultural Marketing, Aegis Media. “Today, acculturation is no longer a sole predictor for media and overall behavior. In many ways, Hispanics are demonstrating behaviors that are much more multi-faceted, with motivations and decisions driven by factors beyond language and culture, reflected in the media they consume. Marketers can no longer make one or two media buys and say their Hispanic marketing is done; they need to take into account all of the many nuances to this group and realign their marketing strategies accordingly.”
Carat Research Uncovers Five Major Shifts in Hispanic Market:
1. A significant decrease in traditional word of mouth level of influence from friends and family
· Today, grassroots marketing has given way to a rise in the influence of digital and social content (i.e. ratings & reviews, blogs, editor’s choices) and social commerce --all of which now sway the majority of Hispanic purchasing decisions. Previously, children had higher influence in purchases made by parents, whereby marketers would seek to tap into this influence. Today 50 percent of U.S. Hispanic consumers indicate they no longer shop with their children, opening up a significant opportunity to directly market to the individual through social media channels
2. Motivations around purchase behavior vary widely, making it insufficient to talk to Latinos in ‘one voice’
· Impulse purchases and self-indulgence are rising as a mindset among U.S. Hispanics. Nearly 60 percent of Latinos indicated they no longer wait for things to go on sale before purchasing them. More than half of Latinos now make purchases to keep up with the latest fashions. And nearly 40 percent of Latinos now make purchasing decisions based on if they believe the product or service is environmentally-friendly
3. There is a new and emerging US Latino/multicultural identity, replacing the emphasis solely on acculturation — acculturation is now only one of many factors that define this consumer
· Today, English language Latino-oriented networks help validate Hispanic identity in the U.S. as the media programming has grown to reflect their lifestyle, evolution and expanding numbers. There has been an explosion in online content and cable programming specifically created for Hispanics, reflecting the influence of the growing population. More than 60 percent of Latinos make up the top watchers of Spanish language cable programming; today there are significantly more choices --Latinos can pick or choose if/when they watch in Spanish or English
4. There is a shift towards a need for self-actualization
· Nearly 60 percent of Latinos prefer to enjoy life versus feeling a sense they have to place duty ahead of personal goals and fulfillment. Personal passions tend to be more indulged versus previously when needs of the family were seen as the foremost driver of behavior
5. The majority of Latinos admit they turn to media to escape from day to day reality and to acquire social currency
· In a break from how the general market behaves, Latinos today see media consumption as a way to escape stresses of day to day life, driving a need/desire for “escapist” type content; The mobile web is quickly growing to become a preferred way to get this content
“Some in the industry have predicted that Hispanic marketing is dead; on the contrary, not only is it not dead, but it’s now emerging as a very rich opportunity for brands willing to throw out their old assumptions and look with fresh eyes at this fast growing consumer market,” said Doug Ray, President of Carat USA. “Our research shows there is an immediate opportunity for marketers to maximize their media value and use their dollars more efficiently and effectively by embracing this tremendous cultural shift. Advertisers can now tap into a more current set of passions and motivations, some of which are entirely different from those typically identified with Hispanic shoppers, even as recently as five years ago.”
Key Marketing Implications
· Ensure social media activities are designed to be inclusive of Hispanic audiences via a Total Market approach
· Increase associations with curation of pop culture content (e.g. increased investment in Spanish language cable)
Understand how U.S. Hispanics align within overall audience segments to craft Total Market communication platforms
· Campaigns need to incorporate activation via social media and digital content including: ratings, reviews, blogs, and photos
· There isn’t only one segment that behaves the same way; the increase of U.S. Hispanic birth rates is driving the need to look at the full spectrum which has different shades of gray when it comes to motivations for purchasing
· Spanish Language media is still highly relevant when approached in a more targeted format, tapping into the current passion points
· Music, style, fashion and sports are key drivers of evolving Latino’s identity
· Marketers need to map motivations to the content in order to satisfy different segments, while incorporating the nuances of Hispanic consumer behavior
· Consider program genres like travel, adventure, celebrity gossip, sensationalist type content, and dramatic situations
About the Study & Methodology
The Carat Hispanic Consumer Connection Study, referred to as CCS Latino, is a proprietary study to measure Hispanic's lifestyles, attitudes, passions, media use including digital, social and mobile as well as overall advertising receptivity. It originated with a custom survey questionnaire administered to a total of 2,019 Hispanic adults ages 18 and older, with 1,519 administered online to a random set of respondents and 500 collected via a telephone re-contact methodology. The telephone re-contact sample was randomly selected among prior respondents to the Experian Simmons NCS/NHCS survey and included Spanish dominant Hispanics and English dominant/bilingual Hispanics. Responses were then modeled against Simmons NCS/NHCS survey of nearly 7,000 consumers.
What do you think?
Bull Shit or NOT?