reaching hispanics in the digital (new)world presentation to july 2015
TRANSCRIPT
Reaching Hispanics In The Digital (new)World
PRESENTATION TO
JULY 2015
HISPANICS ARE NO LONGER A NICHE MARKET
At 57 million in 2015, Hispanics account for 17.7% of the U.S. population today. Much of this growth since 2000 has come from the births of Hispanics in the U.S. rather than the arrival of new immigrants. As a result, English use among Hispanic adults is on the rise. Today, about six-in-ten U.S. adult Hispanics (62%)speak English or are Bilingual.
• Latinos are a fundamental component to business success, and not a passing niche on the sidelines.• Rapid Latino population growth will persist, even if immigration is completely halted.• Latinos have amassed significant buying power, despite perceptions to the contrary.• Hispanics are the largest immigrant group to exhibit significant culture sustainability and are not disappearing into the American melting pot.• Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics. • Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market.• Latino spendable income is reaching $2 trillion
TODAYS HISPANIC POPULATION
GROWTH OVER THE NEXT 38 YEARS
By 2050, the nation’s racial and ethnic mix will look quite different than it does now. Non-Hispanic whites, who made up 67% of the population in 2005, will be 47% in 2050. Hispanics will rise from 14% of the population in 2005 to 29% in 2050.
GROWTH IN REAL NUMBERS
Origin Percent Numbers
Mexican 63 35,910,000
Puerto Rican 9.5 5,415,000
Salvadoran 3.8 2,166,000
Cuban 3.6 2,052,000
Dominican 2.9 1,653,000
Guatemalan 2.3 1,311,000
Colombian 1.9 1,083,000
Spaniard 1.4 798,000
Honduran 1.4 798,000
Ecuadorian 1.2 684,000
Peruvian 1.1 627,000
Nicaraguan 0.8 456,000
Venezuela 0.5 285,000
Argentinean 0.5 285,000
SEGMENTATION BY COUNTRY OF ORIGIN
Millennials outnumber baby boomers; most young children now minorities; new U.S. census estimates
.The growing Hispanic population in America is reflected by the fact that 25% of all children under the age of 18 in America are Latino, up from only 9% in 1980.
Hispanic consumers. The retail spending of Hispanic consumers will nearly double over the next ten years and account for almost one-fifth of total retail spending. McKinsey analysis based on data from the US Bureau of Economic Analysis, the US Bureau of Labor Statistics, and the US Census Bureau. Importantly, Hispanics spend money differently from other consumers—for example, they spend at least one and a half times more on children’s apparel, footwear, and fresh food than non-Hispanic consumers do—and retailers will have to account for this accordingly.
YOUR FUTURE CONSUMER
A new report from Nielsen delves into the mobile and social behavior of U.S. Hispanic consumers, finding they’re highly engaged in their usage of smartphones, online video, social networking and other types of entertainment. According to the study, Hispanics outpace all other ethnic groups in mobile downloads of music and photos, and are more likely to watch video online and on their mobile phones than others. Specifically, Nielsen says that Hispanic video viewers are 68% more likely than non-Hispanic White viewers to watch video on the internet, and 20% more likely to watch video on their mobile phone.
SOCIAL BEHAVIOR
REACH HISPANICS ACROSS ALL MOBILE MEDIA
While we can establish that increasingly more US Hispanics are likely to own a smart/cell phone, we can also see that Latinos are more likely to use their mobile technology to access the internet. Increasingly, it is more likely that companies looking to measure their mobile analytics will find that the Hispanic market accessing their information shows a tendency to over index. We can see this via multiple sources and avenues. Beginning with mobile video, we see that Hispanics over index there with 10 million Latino Americans watching video on their mobile phones. This likely also acts as a partial reason that mobile data use is approximately 16% higher than the national average.
THE WAY US HISPANICS UTILIZE THEIR MOBILE TECHNOLOGY
US Hispanics Mobile Users - (Hispanic Origin)
March 2013 comScore
US Hispanics Mobile Users - (Gender)
U.S. HISPANIC MOBILE AUDIENCE BREAKDOWN
93% of U.S. Hispanics use a
mobile phone regularly
45% of U.S. Hispanic mobile
phone users have smartphones
compared to 34% of general
market
87% of U.S. Hispanic mobile
phone users have contract
plans and only 8% have pre-
paid plans
12% of U.S Hispanic mobile
users use social networks on
their mobile vs. 10% general
market. Nielsen Company - February 2011
U.S. HISPANICS MOBILE ONLINE
MULTIPLE CHANNELS
CELL PHONES VS COMPUTER
CELL PHONES VS TV
TRADE AREA TARGETING AROUND STORES
Time-Sensitive DealsSpecial OccasionsExclusive OffersContests
Competitive IntelligenceTrackingBrandingTesting
Know Your CustomerWhere Are They FromWhat’s Their InterestHow Did They Find YouBehavior
RetentionAcquisitionExpansionProfitability
From re-targeting based on multivariable consumer behavior to language-based and acculturation-level targeting, to environmental targeting based on geography, demographics, day and time, and more.
FIND THE RIGHT CUSTOMERS, SAY THE RIGHT THINGS
DYNAMIC PUBLISHINGDevelop flexible, tailor-made communications for your key audience segments and publish dynamic versions of your banner and landing pages in real time.
ADVANCED ANALYTICSEvaluate and fine-tune your next online advertising experience with in-depth, ROI driven analytics {Dashboard}
AUDIENCE MANAGEMENTUse current technology to precisely identify and reach Hispanic audience segments across the web and capture specific audience segments that are unique to your campaign, products or services.
GROW YOUR BUSINESS
Being able to get advice from friends is more important to shoppers than having access to product reviews. Just 38% of Hispanic mobile shoppers in this survey said that they had accessed product reviews on their smartphones. That’s a very small number, given that 68% of all U.S. mobile shoppers say that they have done this.Overall, Hispanics are more likely to use the mobile web than the general market mobile consumer and are also more likely to own smartphones in the first place. Currently, however, most mobile shopping apps don’t really address the way these users shop. Because of this, the study recommends that these apps start adding more social features like automatically alerting friends when you scan a QR code inside a store.
INSIDE YOUR STORE
NORTHGATE GROCERY STORE USE OF A WEBSITE
DEPARTMENTS
STORE LOCATOR
ANNOUNCEMENTS
SPECIALS
COUPONS
ADVERTISEMENTS
Northgate Market is one of the largest Hispanic Grocery Supermarkets serving Southern California. Download this App to learn about exclusive new promotions and exciting money saving events. Users will also gain access to videos, recipes, cooking classes and many other tips that will help you prepare the authentic Hispanic dishes you know and love. Key features include Store Locator, Ad Specials, Exclusive Promotion Information and of course Meal Solutions of all kinds!
NORTHGATE GROCERY STORE USE OF AN APP
CAMPAIGN SUMMARY
Objective: Brand Awareness
and purchase intent
Targeting: US Hispanics 18+
Materials: Display and Video
Ad Formats: Standard IAB,
Video, Mobile Web Standard
IAB, Mobile App 300x50 Click
to Play
Platform: Smartphone (IOs,
Android)
The GoalDrive awareness and in-store purchase intent of several products.
SolutionThe campaign started running a Display Custom Channel combined with In-banner Video. Thanks to a proprietary Media Audience Management platform it was discovered that over 30% of the clickers were using a smartphone. Based on this insight the Client assigned a test budget to Mobile and incorporated 2 more lines: Mobile Web and Mobile Video
The Results
>Hit the Client’s initial goals: CTR (Click Through Rate) for display and
completion rate for video>Exceeded Client’s expectations providing valuable insights on Mobile
Consumption>Exceeded Client’s mobile goals doubling CTR and completions rates>Delivered engaged viewers across both desktop and mobile>After the test was run, the client keeps working with testing all new products
and solutions
CASE STUDYNorthgate Markets
The retail environment is as dynamic today as it has ever been. Competition is intensifying and shifting to new arenas, and consumers are rapidly evolving their approach to purchase decisions. We believe the trends that will most affect the industry’s future are evident, and the imperatives are clear. The time to act is now. Retailers that do will be the winners when the next chapter of retailing history is written.
THE FUTURE
Drawing on our research and experience working with companies across the North American retail sector, we believe that five trends will have a significant impact on the industry: demographic changes, multichannel and mobile commerce, personalized marketing, the distribution revolution, and emerging retail business models. Each trend is powerful on its own, and collectively they will redefine what it takes to be a successful retailer.
THE TRENDS THAT WILL MATTER MOST
THANKS!Joe Benites
THE BENITES GROUP, INC. 8941 Haskell AvenueNorth Hills, CA 91343
Tel: 661-294-8904Cell/Off: 213-716-0620
E-Mail: [email protected]