Hispanics are a Winning Strategy
In this challenging social and economic environment, it’s easy to become pessimistic. However, despite our shared problems, we also have reasons to be optimistic, particularly as D2C Hispanic marketers.
Yes, Hispanics and communities of color are bearing the brunt of both the coronavirus and the economic downturn, but the grit that characterizes this group expresses itself in many ways, not the least of which is its resilience in the face of adversity. For example, remittances to Mexico and Central America, which given the economic decline, should have declined, have in fact risen year-to-year. Mexican remittances have grown by 11% in 2020 vs 2019.
It is this resilience, this grit, this drive to succeed that makes the Hispanic consumer market so attractive, and so essential. And marketers who address Hispanics directly and authentically are rewarded financially and with loyalty. Two of the biggest advertisers in the Hispanic market – Walmart and Target – just reported hugely successful Q2 results.
Today, there are many more advertisers actively targeting Hispanics, in Spanish and through multiple media and screens. While it is true that advertising investment, as a percentage of the total, still lags at about 6-8% directed at Hispanics – despite representing about 20% of the population – the total amount invested continues to grow as advertisers realize the impact their message has within this highly responsive demographic.
Thus begins the investment growth. We often tell our clients that the first dollar they invest in the Latino market works much harder than the last dollar they spent in the general market. We see evidence of this day in and day out in our clients’ continuous business growth thanks to their Spanish-language campaigns.
Advertising investment growth also manifests itself in the financial resilience of Spanish-language media. The challenges posed by the coronavirus hit all media outlets, which saw major cancellations in the 2nd quarter of 2020 across several categories, led by the hospitality and travel sectors and followed by automotive, entertainment and a host of other categories. Until then, advertising sales had been growing at a rapid pace, thanks both to new advertisers as well as budget increases from long-standing players.
Spanish-language media strength is further demonstrated by the consistent audience growth that Univision has drawn to their networks this summer, especially as all other TV networks have seen declines in audience vs. last summer. Univision has seen a 10% increase in the key demo of A18-49 compared to the same time last year, at a time when all other networks have seen serious audience losses, ranging from a low of 23% (CW) to as high as 50% (ABC). This is a media company growing successfully thanks to its Spanish-preferring audience.
This is significant because Univision brings a unique viewer and consumer to its advertisers: its large and loyal Spanish-speaking following. Young and old, male and female, Univision viewers, primarily immigrants and 1st generation Americans, are eager and work to succeed in their new home. One of the reasons that Latinos are so responsive to advertising messaging is related to the fact that they are either starting or are in the early stage of the American consumer journey.
While it’s too early to know what changes the pandemic will bring as it continues to evolve, one thing is clear – marketers who either establish or grow, and then nurture strong Hispanic consumer relationships, will certainly emerge in a stronger position. As resilient and as enduring as the engine that continues to help drive the growth of the American economy: U.S. Hispanic consumers.
Patricia Testa – Managing Partner – D2H Partners, LLC – 2020