the 2020 african-american market report - claritas

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The 2020 African-American Market Report

The African American Market Report — ©2020 Claritas, LLC.

In celebration of Black History Month, Claritas has dipped into our extensive data lake to create our first African-American Market Report, providing in-depth insights into the changing face of the African-American consumer market.

In this report of the Claritas New American Mainstream series, we’ll explore the Black segment in great detail, including their population growth, household income, media behaviors and consumer spending within key categories.

Currently, more than 42 million Blacks live in the United States. The median age for Black females is 34.3 and 31.2 for Black males. Continue reading to see why you can’t afford to ignore this consumer segment.

Numbering over42 million in 2019, Blacks in the U.S. represent approximately 12% of the population

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Executive Summary

Although, the U.S. ad expenditure in 2019 amounted to over $240 billion, up from $223.7 billion recorded in 2018, new research from Nielsen suggests that advertisers spent a total of 5% less on Black-focused media between 2017 and 2018. This under-representation in media spend for Blacks is rather shocking, especially knowing that this segment commands $1.3 trillion in annual buying power and holds a staggering aggregate spend worth $780 billion.

Moreover, other research suggests that the spend for Blacks, who represent 12.2% of the total U.S. population, accounted for only 1.4% share of targeted U.S. advertising and brand activation spending. In fact, media spend designed to reach Black consumers decreased year-over-year in all areas, including network TV (-13%), digital (-12%) and syndicated TV (-11%). These meager marketing investments targeting the under-valued Black consumer market suggests that corporate America has inadequate knowledge of the value of marketing to Blacks and the effect it may have on their bottom line.

To win in the new, more diverse marketplace of the 21st century and to fully-capitalize on this opportunity, marketing to Blacks must become a part of the overall corporate business strategy. This means replacing assumptions with information, ethnic and social stereotypes with facts and insights, committing to real funding, and establishing a dedicated corporate infrastructure that supports targeted marketing from top to bottom.

With this report, we intend to provide you with in-depth quantitative and qualitative data on U.S. Blacks, including their demographics, economics, cultural insights and buying trends. In summation, this report will give you the understanding needed to genuinely engage this valuable population segment and feel more secure in developing marketing strategies that will help your business gain their share of this large, fast-growing, and influential market. Any organization ignoring the importance, evolution, and influence of this projected trillion-dollar market segment may be losing valuable market share to competitors who have already committed to increasing top line sales by focusing on the Black consumer market.


U.S. Black 2019 Population FactsCurrently, there are 131,815,386 multicultural Americans in the U.S. and they account for 37.5% of the U.S. population. Blacks account for 32.5% of the multicultural segment.

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62.5%

12.2%

5.8%

19.5%

37.5%

Non-Hispanic All OthersNon-Hispanic BlackNon-Hispanic Asian & Pacific IslanderHispanic

Population Growth 1990-2019

10.44% 16.60% 20.61%13.51%

14.56% 12.03%

40.75%

55.77%68.02%

35.30%

13.06%

0%

25%

50%

75%

100%

Growth 1990-2000 Growth 2000-2010 Growth 2010-2019

Non-Hispanic Asian & Pacific Islander Non-Hispanic BlackHispanic All Other Non-Hispanic

Source: U.S. Census Bureau for 1990-2010 and Claritas AMDS 2019

Since 2010, Blacks experienced a 12% growth in population

All Other non-Hispanic: - 0.66%

Source: Claritas AMDS 2019


Percent of the U.S. Population: 1990-2024

Blacks and Hispanics have become a larger portion of our nation’s population. Meanwhile, the Non-Hispanic White population proportion has been declining steadily as a proportion of overall American population.

4

75.8%

69.1%

63.7% 62.6%60.5%

11.8% 12.0% 12.2% 12.2% 12.2%

2.8% 3.7% 4.8% 5.6% 6.1%8.8%

12.5%16.3%

19.6% 21.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1990 2000 2010 2019 2024

N-Hispanic All Others N-H Black N-H Asian & PI Hispanic

In 1990, the U.S. Black population was 29,930,490. By 2019, this population has grown by 40%to more than 42 million

Perc

ent P

opul

atio

n

Source: U.S. Census Bureau for 1990-2010 and Claritas AMDS Projections for 2019-2024.


80.1% 75.2%64.4%

50.5%41.5%

7.6%9.4%

12.0%

12.9%

13.4%

3.8% 5.0%6.0%

8.1%

5.6%

7.8% 9.9%16.1%

25.3%32.1%

0.7% 0.5% 1.5% 3.2%7.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Age 75+ Boomer 1946-65 Gen X 1966-80 Millennial (Gen Y)1981-97

Age 0-4

Perc

ent o

f Tot

al G

ener

atio

n C

ohor

t

Younger age groups are made up from a more diverse population, while older age groups tend to be less diverse. This dramatic trend in ethnicity by generation will have deep implications for marketers in the years and decades to come as they consume products and use and react to media differently, requiring a more personalized approach.

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Source: U.S. Census Bureau for 1990-2010 and Claritas AMDS Projections for 2019-2024.

Generational Population 2024 - Nationwide

Non-Hispanic OtherHispanicNon-Hispanic AsianNon-Hispanic BlackNon-Hispanic White


By 2024, the U.S. Black population will grow to almost 44 million

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2019 U.S. Black Population Distribution by DMA


Where Does the Black Population Live? When looking at the top census region, 60% of the Black population reside in the South. Moreover, when looking at the top census division, 36% of the Black population reside in the South Atlantic. When looking at the top DMA’s by count, New York, Atlanta, Washington DC, Chicago and Philadelphia came out on top. When looking at growth areas, the Black presence is showing significant growth in areas such as Atlanta, Houston, Dallas, Orlando, Tampa and New Orleans. Interestingly, areas seeing additional growth also include states such as Washington, Colorado, Arizona and Wyoming.

Top 20 DMAs By Black Count vs. Growth, 2010-2019

New

York Atlanta

Washington, D

C

Chicago

Philadelphia

Houston

Los Angeles

Dallas-Ft. W

orth

Miam

i-Ft. Lauderdale

Detroit

Raleigh-Durham

Baltimore

Mem

phis

Charlotte

Orlando

Norfolk

Tampa-St.PetersburgC

leveland-Akron

New

Orleans

St. Louis

0

10

20

30

40

50

60

0

2

4

6

8

10%persons, million Black Population, 2019 % Growth, 2010-2019



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$60,194

$70,727

$43,966

$91,414

$51,747

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Total White Black Asian & P.Islander

Hispanic

Annu

al H

H In

com

e (D

olla

rs)

Median Annual Household Income

The Average Black Household Earns $61,376.

Population HHs Median HH Income Mean HH Income Aggregate HH Income

Total 125,018,808 $60,194 $85,710.10 $10,715,375,124,299

White 94,015,753 $70,727 $94,990.84 $8,930,635,153,323

Black 15,506,334 $43,966 $61,376.06 $951,717,660,040

Asian & P.I. 6,230,709 $91,414 $116,319.15 $724,750,796,367

Hispanic 17,589,124 $51,747 $69,468.61 $1,221,892,028,115


In 2019, the average annual income for Black households was 27% lower than the average annual income for total U.S. Households

Sources: Claritas 2019

Black consumers are less likely than average to have a desktop or laptop, and more likely to own a smartphone, specifically an iPhone or a Samsung device. Also, when looking at the top wireless/cell phone carriers by count, Black consumers have more wireless accounts with Verizon Wireless and AT&T, but were more than twice as likely to use Boost Mobile and Metro by T-Mobile as represented by the indices below.

Blacks Are More Likely To Own A Smartphone. In Fact, They’re More Likely To Own A Samsung or iPhone.

13

21

27

16

0

5

10

15

20

25

30

Desktop Laptop Smartphone Tablet

Adul

ts (I

n M

illio

ns)

Computer/Mobile Devices Currently Owned by Blacks

Index 89

Index 96

Index 103

Index 93

3%

26%

2%

15%3%

29%

7%

15%

Wireless Cell Phone Brands Owned by Blacks

Alcatel

iPhone

HTC

LG

Motorola

Samsung

ZTE

Index 82

Index 274

Index 149

Index 226

Index 115

Index 113

Index 115

Index 88

Index 62

Index 154Index 70

8The African American Market Report — ©2020 Claritas, LLC.

Sources: Nielsen Scarborough 2018, Claritas 2019

5,609,429

1,926,262

1,210,539

3,941,922

2,762,975

944,658

3,908,366

920,485

5,661,158

375,311831,629

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

AT&T BoostMobile

Cricket Metro byT-Mobile

Sprint StraightTalk

T-Mobile TracFone VerizonWireless

VirginMobile

None

Adul

ts (I

n M

illio

ns)

Wireless/Cell Phone Carriers Currently Used by Blacks

By count, the top 3 streaming services visited/apps used by Blacks in the past 30 days were YouTube, Netflix and Pandora. The top internet sites visited/apps used were Google, Amazon and Yahoo. The top social media sites used by Blacks were Facebook and Instagram. In contrast, Blacks also over-index for using Groupon, Coupons.com and CareerBuilder.com websites.

Top Internet Sites Visited/Apps Used By Blacks In 2019 Were, YouTube, Netflix, Google, Amazon, Facebook And Instagram.

0

2

4

6

8

10

12

14

16

Adul

ts (I

n M

illio

ns)

Top Streaming Services Visited/Apps Used by Blacks

17,220,235

7,433,3708,715,357

3,659,6655,165,434 5,301,853 4,810,751

91

112103

79 79

92 94

0

20

40

60

80

100

120

02,000,0004,000,0006,000,0008,000,000

10,000,00012,000,00014,000,00016,000,00018,000,000

20,000,000

Facebook Google+ Instagram LinkedIn Pinterest Snapchat Twitter

Adul

ts (I

n M

illio

ns)

Top Social Media Sites Visited/Apps Used by Blacks

Count Index

Index


110121

231

145

0

50

100

150

200

250

0

5

10

15

20

25

Goo

gle

Am

azon

Yah

oo!

eBa

y G

roup

on C

raig

sLis

t E

SPN

CN

N B

ing

FO

XNew

s C

oupo

ns.c

om N

BCN

ews

Yel

p H

uffin

gton

Pos

t R

etai

lMeN

ot C

aree

rBui

lder

AAR

P

Adul

ts (I

n M

illio

ns)

Top Internet Sites Visited/Apps Used by Blacks

Count Index

Index


When Blacks Are On The Internet, They Prefer To Listen To Music, Play Games And Watch/Stream TV.


5%

20%

17%

16%

18%

24%

Hours Spent by Blacks on the Internet in an Average Week

Less than 1 hour

1 - 4 hours

5 - 9 hours

10 - 19 hours

20 hours or more

None

Index 136

Index 109

Index 89

Index 82

Index 82

Index 144

103117

101114 121

105 106

145

123

104 108121 116

100 103

148

116

135123

0

20

40

60

80

100

120

140

160

0

2

4

6

8

10

12

Adul

ts (I

n M

illio

ns)

Top Ways Blacks Used Internet/Apps in the Past 30 Days on Smartphone

Counts Index

Index

51% of Blacks spend 5 hours or more on the Internet in an average week. When looking at social media, we see that 9% of Blacks spend 5 hours or more in an average day on social media sites. Outside of social media, we discovered that when Blacks are on the Internet, they primarily used website to listen to music, play games and watch/stream TV.

24%

24%

14%

9%

29%

Hours Spent by Blacks in an Average Day on Social Media Sites

Less than 1 hour

1 - 2 hours

3 - 4 hours

5 hours or more

None

Index 84

Index 91

Index 116

Index 141

Index 109


When It Comes To Auto And Homeowners/Renters Insurance, GEICO Was The Top Provider For Blacks.


83

99

122107

9483

0

20

40

60

80

100

120

140

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Hou

seho

lds

(In M

illio

ns)

Homeowners/Renters Insurance Provider for Black Households

Count Index

By count, the top auto insurance providers for Blacks in the past 30 days were State Farm and GEICO. The auto insurance providers Blacks over-indexed for were GEICO and Nationwide. When looking at Homeowners/Renters Insurance providers, Blacks also over-indexed for GEICO. From the data below, we can suggest that GEICO has been very successful at attracting Black customers, not just for auto insurance but also for homeowners/renters insurance.

IndexIndex


169

84

118

93 9679 84

119102

57 6581

5947 44

020406080100120140160180

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

10,000,000

Hou

seho

lds

(In M

illio

ns)

Auto Insurance Provider for Black Households

Count Index

12

Black Household Consumer ExpendituresOn average, Black households spend $50,333 annually on goods and services. Selected categories for which Black households spend more than the average U.S. household by amount are skin items, athletic shoes, cosmetics/perfumes and women’s clothing. Selected categories for which Black household spending over-indexed are costume jewelry, women’s business clothing and fine jewelry. In the following sections, we’ll provide a detailed picture of their spending within these categories:


9799 97 95

104110

78 86

112

92

126 123 120

87

64

0

20

40

60

80

100

120

140

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Adul

ts (I

n M

illio

ns)

Items Bought By Blacks in the Past 12 Months

Count Index

APPAREL1

PERSONAL CARE2

FOOD AT HOME3

FOOD AWAY FROM HOME4

ENTERTAINMENT5

Index



202

140153 164

146

0

50

100

150

200

250

0

2

4

6

8

10

12

14

16

Wal

mar

t T

arge

t J

CPe

nney

Mac

y's

Bur

lingt

on O

ld N

avy

Koh

l's R

oss

Dre

ss F

or L

ess

Mar

shal

ls T

J M

axx

Sam

's C

lub

Vic

toria

's Se

cret

For

ever

21

The

Chi

ldre

n's

Plac

e K

mar

t H

&M S

ears

Dill

ard'

s G

ap/G

ap K

ids

Adul

ts (I

n M

illio

ns)

Clothing Stores Where Blacks Bought in the Past 3 Months

Count Index

115

185

102

157

0

20

40

60

80

100

120

140

160

180

200

0

1

2

3

4

5

6

Adul

ts (I

n M

illio

ns)

Sports Apparel With Team Logos Bought by Blacks in the Past 12 Months

Count Index

Black Consumer Spending: ApparelBlack households on average spend approximately $1,900 annually on apparel and related services – 6% less than the average U.S. household.

Even though Blacks spend less on apparel and services on average, there are some subcategories where they spend more than the average U.S. household. For example, Black households on average spend $164 annually on men’s footwear, which is 4% above the national average. They also spend 6% more on boy’s footwear and 6% more on boy’s coats and jackets.

The top clothing store for which Black household spending over-indexed for apparel purchases made in the past 3 months was Burlington. Additionally, NBA sports apparel with team logos was the most popular category by index over the past 12 months. NFL sport apparel with team logos was also very popular among Black consumers.

Index

Index



137

169

202

132

0

50

100

150

200

250

0

1

2

3

4

5

6

7

8

Hou

seho

lds

(In M

illio

ns)

Stores Where Blacks Bought Most of Their Groceries

Count Index

115 135 80 100

020406080100120140160

0

2

4

6

8

10

Agreesomewhat

Agreecompletely

Disagreesomewhat

Disagreecompletely

Adul

ts (

In M

illio

ns)

I Don't Allow Junk Food in my Home

Count Index

106 9192

127

020406080100120140

02468

1012

Agreesomewhat

Agreecompletely

Disagreesomewhat

Disagreecompletely

Adul

ts (I

n M

illio

ns)

I Rarely Eat Frozen Dinners at Home

Count Index

IndexIndex

Black Consumer Spending: Food At Home

Index

Black households on average spend around $3,553 annually on Food at Home – 14% less than the average U.S. household.

Even though Blacks spend less on Food at Home on average, there are some subcategories where they are equal or spend more than the average U.S. household. For example, Black households on average spend 4% more on pork chops, 2% more on fresh fruit juice and equal the national average on poultry, fresh and frozen chicken and fine sugar.

The top store for which Black households bought most of their groceries was Walmart. Blacks also over-indexed for "agreeing that they do not allow junk food in their homes" and that they "rarely eat frozen dinners" at home.



296311

232

0

50

100

150

200

250

300

350

0

1

2

3

4

5

6

McD

onal

d's

Pop

eyes

KFC

Piz

za H

ut W

endy

's T

aco

Bell

Bur

ger K

ing

Litt

le C

aesa

rs S

ubw

ay C

hick

-fil-A

Dom

ino'

s P

apa

John

's Pi

zza

Chu

rch'

s C

hick

en C

hipo

tle Z

axby

's

Adul

ts (I

n M

illio

ns)

QSR's Used by Blacks For Dinner in Past 30 Days

Count Index

260236

360

0

50

100

150

200

250

300

350

400

0

1

2

3

4

5

6

7

8

9

McD

onal

d's

Bur

ger K

ing

Sub

way

Wen

dy's

Chi

ck-fi

l-A T

aco

Bell

Pop

eyes

KFC

Arb

y's

Chi

potle

Pan

era

Brea

d Z

axby

's L

ittle

Cae

sars

Chu

rch'

s C

hick

en P

izza

Hut

Adul

ts (I

n M

illio

ns)

QSR's Used by BlacksFor Lunch in Past 30 Days

Count Index

Index

Index

Black Consumer Spending: Food Away From HomeBlack households on average spend around $2,722 annually on food & non-alcoholic beverages away from home.

Even though Blacks spend less on food & non-alcoholic beverages on average, there are some subcategories where they are close to the national average spend. For example, Black households on average spend only 8% less annually on breakfast away from home.

Blacks also are more likely to "use a quick service restaurant 10 times or more in the past 30 days" and when considering lunch & dinner, the top QSR’s by index for Blacks were Church’s Chicken, Popeyes and Zaxby’s. However by count, McDonald's ranks at the top for lunch and dinner purchases in the past 30 days and sandwich QSR chains are the predominant choice among Blacks for lunch.



101

265

141

182

150163

0

50

100

150

200

250

300

0

1

2

3

4

5

6

7

8

9

10

Adul

ts (I

n M

illio

ns)

Events Attended/Places Visited by Blacks

Count Index

102 104

113

0

20

40

60

80

100

120

0

2

4

6

8

10

12

14

16

18

None 1 time 2 times 3 times 4 timesor more

Adul

ts (I

n M

illio

ns)

No. of Times Blacks Attended Movie Theater in the Past 3 Months

Count Index

Index

Black Consumer Spending: EntertainmentBlack households on average spend more than $2,000 annually on entertainment.

Even though Blacks spend less on entertainment on average, there are some subcategories where they spend at or above the average U.S. household. For example, Black households on average spend equal to the average annual spend on Cable, Communication, and Satellite Services and Dishes. They also spend equal to the average annual spend on Online Entertainment and Games.

Also, by count, the average Black household prefers to attend professional sporting events, and they over-index for attending R&B/Rap/Hip-Hop concerts, Job Fairs and Health/Fitness Expos. When looking at the number of times Blacks attended the movie theater in the past 3 months, they indexed highest at 113 for attending a movie theater 4 times or more in the past 3 months.

Index


To learn more about how to find your next multicultural consumer, visit www.claritas.com or call 800.234.5973.

About ClaritasClaritas helps companies identify customers. Not just any customers–their best customers. We help engage and deliver those customers when and where they want to be engaged. And finally, we help clients optimize those engagements with remarkable transparency and precision in near-real-time.

Our tools and data define who your best customers are, how they behave, and how to connect with them. With powerful original research, trusted data partnerships, and an expert Analytics team, we provide the why behind the buy that is the key to selling smarter and winning bigger.

Targeting the New American MainstreamTo capture multicultural growth opportunities, you must first understand them: their likes, dislikes, preferences, behaviors, etc. These insights let you create personas, tailor messages and promotions specific to their wants and needs. Marketers leverage Claritas’ deep understanding of multicultural segments, using tools, such as CultureCodes across local, national and digital markets for smarter targeting, smarter planning and smarter buying to help drive bigger profits.

Multicultural Insights to Shape a Smarter PlanData from Claritas can be applied to a wide variety of situations and challenges using computerized applications, such as Claritas’ online Geoscape Intelligence System (GIS). Some of the applications are listed below.

• Strategic Planning• Market Potential Assessment• Product Development & Positioning• Database mining & modeling• Retail Site Selection & Distribution• Marketing Communications & Media Planning• Promotions & Direct Response• Market Research: Surveys, Focus Groups, etc.• Industry specific intelligence applications• Sales potential and forecasting• Consumer segmentation and targeting• Customer relationship management• Investment Valuation• Public & Social Services• Budget Allocation• Staffing• In-store experience management• Retail shelf-space planning


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the 2020 african-american market report - claritas

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