Trends to Watch in the U.S. Hispanic Marketplace

By Kathi Moore

The growing influence and importance of the U.S. Hispanic community is undeniable.

In 2008, Hispanic spending power in the United States is projected to exceed $800 billion. Of the 43.5 million U.S. Hispanics, over 30 million are adults. Half of these are Spanish-language dominant. What does this mean for marketers looking to capitalize on this audience? Some trends to watch include:

• The increasingly sophisticated consumer - While growing in number, U.S. Hispanics are becoming increasingly sophisticated consumers--and more critical shoppers than they were just a decade ago. Marketers are recognizing the importance of speaking to the U.S. Hispanic market through culturally targeted Spanish-language messages and creative specifically tailored to that audience. In turn, this more sophisticated targeting has helped the Hispanic consumer become better informed and, therefore, more scrutinizing when considering a purchase.
• Diversity within the segment - Just like the general market, the Hispanic market is equally diverse and segmented in terms of demographics, psychographics and geographical differences. To be effective, marketers must develop unique approaches that are relevant and meaningful to these different segments, just as they would for most general market campaigns. Extensive research during the media-planning phase is critical in order to identify these niches, so that consumers' media consumption and buying behaviors are well understood and media is targeted effectively.
• Technology usage - Today, the Hispanic consumer is increasingly embracing telecommunications and emerging technologies. A recent study by Vertis Communications shows that 33 percent of Hispanics plan to use text messaging in the next 12 months, compared to 26 percent of non-Hispanic adults. Hispanics are gradually using digital communication on a daily basis, which represents another untapped area of potential for those seeking to reach this audience.
• Credit card usage - Direct marketers who are transacting sales via phone or the web have discovered that more and more Hispanics possess credit cards, and are willing to use them. Credit card penetration has increased significantly in recent years, and Hispanics are as likely as non-Hispanics to be comfortable revealing financial information online or over the phone while making purchases.
• Coupon usage - Coupon usage is dominant in the market, with 69 percent of non-Mexican Hispanics and 56 percent of Mexican Hispanics indicating they've used coupons within the past 30 days.

Taken together, these trends point to opportunity for direct response advertisers. Through our own research, we have found that Hispanics are increasingly reading and responding to direct response advertising via print, direct mail and electronic media--but only when highly targeted and focused. Our experience has also shown just how important targeted, multichannel advertising can be when looking to connect effectively with the Hispanic consumer.

Kathi Moore is senior vice president at Quigley-Simpson Multi-Cultural in Los Angeles. She can be reached at (310) 996-5850, or via e-mail at kathim@quigleysimpson.com.