It's been a good summer so far for Univision. The Spanish-language network hit the number-one spot in the sought-after demographic of television viewers aged 18 to 49 in July. It beat out channels like Fox, NBC, and CBS. It's the third summer in a row the network has bested its English-language counterparts.
Univision's success comes as little surprise. The Hispanic market continues to grow in importance to the future of American businesses — especially in the domains of advertising and marketing. A compilation of the latest findings we prepared at Smartling shows that the Hispanic population currently accounts for 16.7% of the U.S. population, or 52 million people, and will have $1.5 trillion in purchasing power by 2015.
Plus, the Hispanic market is young. The "youth demographic" is desirable across platforms and brands and generally represents the next generation of customers. By 2050, Hispanics will account for at least 30 percent of the total U.S. population — even if there are sharp declines in immigration.
Advertisers continue to take note. Many companies are changing their strategies to remain competitive and better reflect the ethnic and linguistic realities of this evolving consumer base. Target recently launched a popular bilingual television ad, featuring a version of the song, "If You're Happy and You Know It" in both English and Spanish. Kraft Foods now has an entire Spanish-language site designed specifically for the tastes of Latinos, featuring a noted Latino chef, a range of recipes with familiar ingredients from home, and party planning tips for quinceañeras (birthday celebrations for 15-year-old girls).
Marketers don't necessarily need Spanish to reach all Hispanics — many, especially children of immigrants in the U.S. — are English-dominant. However, most brands prefer to build brand loyalty with Hispanics early — in their home countries and among first-generation immigrants. With that in mind, providing content in Spanish has become a best practice.
The Hispanic advertising industry is now worth more than $5 billion, and is outpacing all other sectors of advertising, with four times the amount of growth. As of June 2012, ad spend growth rates had increased by 20.7% for the Hispanic market compared to just 1.7% in the non-Hispanic market. Companies like Procter & Gamble, McDonald's, AT&T, Verizon, Toyota, General Mills, and General Motors spend tens to hundreds of millions of dollars each year in Hispanic advertising. Savvy advertisers are able to build two-for-one brand loyalty, reaching both customers living in Latin America and Latinos who reside in the United States.
The landscape is changing fast on this issue and there are a few new trends worth watching:
The upscale Hispanic market is booming. Makers of luxury products are beginning to turn their attention to the Hispanic market. Nearly one quarter of all U.S. Hispanic consumers are now defined as "upscale consumers," with an annual income of $75,000 or more. By 2015, their buying power is estimated to be worth $680 billion.
The Hispanic market also matters for marketing to business buyers. B2B advertisers are beginning to turn their attention to the rising number of businesses owned by Hispanics in the U.S. In 2007, Hispanic-owned businesses generated $350.7 billion in sales, a trend that stands to grow with time.
Hispanics are more mobile-savvy than other segments of U.S. consumers. Hispanics are 28% more likely to own a smartphone than non-Hispanic whites. One study showed that 47% of Hispanics used a handheld device to go online, compared to just 28% of non-Hispanic whites.
Every business needs to understand its customers well. As these trends show, it may no longer be a viable option to put off a strategy for marketing to Hispanics until mañana.Go to Source