Hispanics: A Market of Today and Tomorrow

The Many Faces of Hispanics Today

This is due to the fact that Mexicans, Puerto Ricans and Cubans, in that order, are the three largest segment groups of the Hispanic population. However, we shouldn’t forget that there are other residents of Latin American origin that also should be considered Hispanic.

The term “Hispanic” is generally used in a business context to describe the largest minority group and the largest, still untapped marketing opportunity in the United States today.

The term “Latino,” on the other hand, is used almost as often (although not as much in a business context) as the term “Hispanic” is and, depending on the geographic area, one may be used more frequently than the other.

Whatever term is used, the bottom line is that there is no bottom line. Even within the Hispanic community, there is no consensus as to how to refer to this group collectively.

The sheer size of the group, its diversity and specific idiosyncrasies make it an incredible task when it comes to finding the right strategies and tools to effectively market them.

Hispanics identify themselves mainly by their countries of origin, even those born and raised in the United States.

Learning these differences is essential to developing effective marketing strategies, especially when trying to capitalize on regional or niche markets. They are also as important as learning about the similarities that exist among all Hispanics.

Among the many similarities of all Hispanics, the one that stands out most is language. Especially for recent immigrants, and for a great percentage of those first generation Hispanic Americans, Spanish is the preferred language of use.

Most Hispanic marketing efforts today are geared towards the Spanish-speaking, recent immigrant Hispanic. Not that this is not important; on the contrary. Statistics show that about 65% of all Hispanics in the United States speak mostly Spanish and prefer to be marketed to in this language.

The problem is, what about the other 35% - the second or later generation, fully bilingual Hispanics or highly educated first generation Hispanic, who conducts most of their business and daily activities in English.

Those who watch TV in English, work in a corporate environment where English is the “official” language and have acquired some of the behavior of the US mainstream consumer?

There is no doubt that Spanish will continue to be used by many Hispanics for generations to come. But those who have slowly assimilated, or have been using English as prominently as Spanish, seem to be a lost sub-segment of the Hispanic demographic.

Very few companies seem to be targeting this group. The vast majority of the advertising to Hispanics is done in Spanish.

Those who prefer to read US Today or watch more ABC and CBS than Telemundo or Univision simply slip through the cracks.

For those Hispanics who have been acculturated, the strategies need to be refined or perhaps modified more significantly.

The statistics mentioned above prove that the use of Spanish is not a matter of necessity, but of preference. Studies show that English-speaking Latinos want to be marketed to in English as well, but are not.

Most of the marketing efforts geared towards Latinos are done in Spanish and on Spanish-language media. By ignoring this segment of the Hispanic population, advertisers are missing an opportunity they can’t afford to miss.

Why spending millions of dollars in Hispanic marketing, when you may not reach half of those that are, in fact, Hispanics?

Generalizations with regard to race and education also lead to ineffective Hispanic marketing. While it is true that the level of education of Hispanics in the US is lower than that of their white or black counterparts, statistics show that the number of educated Hispanic professionals is larger than it was 10 years ago.

Moreover, recent Latino immigrants often move to the United States to complete or further develop their education. Regardless, the stereotype of poor, uneducated Hispanics persists.

Marketers seem to be trying to find a look that is representative of all Hispanics. That, of course, is impossible.

Stop believing that it is possible to reach all Hispanics by presenting women looking like Sofia Vergara. Misleading images are just a waste of money.

Hence, not only the budgetary approach needs to be reexamined but also the cultural aspects and idiosyncrasies of this market segment. American corporations spend far less than 5% of their marketing budgets into targeting a group that is already spending $600 billion dollars a year.

Statistics also show that Hispanics have larger families than non-ethnic whites and that growth in Hispanic population will be about 80% in the next 25 years versus about 5% that the white non-Hispanic population will grow.

As Hispanic families grow, so will their purchasing power. This information should be vital for corporations as they come to terms with the market trends, size and specific characteristics and make marketing decisions that can and will affect their products’ performance in the marketplace.

While it is hard for Hispanics to acculturate and/or completely assimilate into US society (remember that some of the migration trends into the US were perpetuated by socio/political circumstances sometimes triggered by the US government involvement, occupation or continued intervention in Latin American countries), advertisers must start thinking about those who are closer in this process and target them using both the characteristics that make them unique and different from the mainstream market and those similarities that they have with the average white or African-American doctor, teacher, friend, business associate, etc.

It may not be a bad thing after all to be constantly reminded that Hispanics are different. They are as different as the average mainstream consumer can be. And, just as the mainstream market, Hispanics have similarities that make them unique and easier to group.

The key is finding a common ground where the two can co-exist and be used effectively.

Foreign-born Latinos will always be an important part of US society, and as they continue their education, second and third generation Latinos will retain the bi-lingual traits that enrich both their personal and professional lives.

Marketing to Latinos is mostly focused on this group. Hispanic marketing and advertising agencies have been flooded in the last few years by corporate clients trying to capitalize on the rapidly growing Hispanic market.

But while some progress has been made, Corporate America still seems to have a lot to learn about the complexity of this market. The marketing trends are often set by staff with little or no knowledge of the intricacies that make US Hispanics, well… Hispanics.

Hispanic agencies and marketers have tried with little success to serve as bridges between the different backgrounds and nationalities within the Hispanic population and the American corporations trying to reach them.

These marketers usually position themselves as experts in both worlds, but are rarely seen as such by mainstream corporations.

They seem to be often ignored once the initial research is done and the main stages of the marketing campaigns are reached. This results in campaigns that are more tailored to mainstream American often mistaken point of views of Hispanics, a market that feels unrepresented, and corporations wondering what went wrong.

If we select the whitest, most affluent parts of the Hispanic population, we will miss and forget about the majority middle class Hispanic that is part of this huge purchasing power. If we assume that there is no middle class among Hispanics, we will also be missing a key segment of this population.

All are making money, and all are consuming, even those who have to hold three jobs to purchase things. All are worthy of advertising and the American corporations cannot cover their eyes to these realities or will be left behind while their competitors succeed.