Thinking outside the “LA-New York-Miami” Hispanic Box

Apr03

Posted by Jose Villa

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I’ve talked a lot about the growing importance of non-traditional, emerging Hispanic markets like Atlanta, Charlotte, N.C. and Washington, D.C. A lot of focus has been on population growth. However, there is something bigger going on with these markets. I believe their emergence is a game-changer for Hispanic marketing.

First off, they are the ideal Hispanic test markets. We all know Hispanic marketing activity is still “test” driven outside committed categories like CPG, QSR, and telecom. The long tail of newer entrants are perpetually testing, driving a significant amount of activity in Hispanic marketing. Many of the non-traditional Hispanic markets are a perfect fit for these “test” Hispanic marketers, checking off all the key criteria of an optimal test market:

• Similarity to eventual desired markets – with Hispanics making up 17 percent of the total U.S. population, markets like DC (14 percent), Milwaukee (15 percent), Oklahoma City (16 percent) and Atlanta (12 percent) have similar Hispanic population percentages
• Geographic isolation – a good test market isolates variables, particularly exposure to advertising. Markets like Atlanta, Seattle, Minneapolis, and OKC fit the bill.
• Affordable advertising media – Avoiding large expensive markets like LA and New York is important. Spanish language media options in markets like Raleigh, N.C., Seattle, and Milwaukee are relatively lower cost and can achieve high impression levels with modest spend.

These markets are also big in their own right. When you add up the Hispanic population of the 15 fastest growing markets, you get close to 8 million Hispanics representing over 13 percent of the entire U.S. Hispanic market. These markets are often overlooked or cut out of limited Hispanic marketing budgets. This creates a low level of competition in many categories. When you factor back in the affordability of advertising in these markets, you have a results-driven recipe for Hispanic market success.Hispanic EmergingMarkets Table_0414

Putting growth aside, the demographic makeup of their growing Hispanic community and their relationship to the broader population of their cities makes them attractive. Growth in these markets is from Hispanic immigrants who are younger and largely Spanish speaking. Spanish-dominant and Spanish-preferring make up significant percentages of Hispanics in markets like Raleigh (39 percent), Atlanta (39 percent), and Milwaukee (38 percent). They are still decidedly “minorities,” providing a “separate and distinct” market opportunity well suited for Hispanic-targeted marketing initiatives. This is different from the Hispanic population in mega-markets like LA and Miami, which is largely growing via native-born Hispanics who are leading the creation of a more nuanced “new mainstream.” Moreover, it will be a while until Hispanics represent 30 percent to 50 percent of the population in Raleigh (11 percent) and Kansas City, Mo. (10 percent), like they do in Houston and Dallas.

Finally, these non-traditional markets provide interesting opportunities to A-B test the various multicultural marketing models being debated, particularly “Total Market” versus the “multicultural” ethnic-specific approach. Borrowing a concept from the digital marketing handbook, you can look at the 10 Hispanic “Mega Markets” (where Hispanic make up ~ 30 percent or more of the population) as the places to test the Total Market approach and the “emerging 10” as markets to run Hispanic-specific multicultural programs and see how they do.

Hispanic MegaMarkets Table_0414

If you’re still using the 7-Market Hispanic Marketing Model, you’re missing out on a big opportunity today and potentially the future of the market.

An edited version of this article originally ran on MediaPost Engage:Hispanic on April 3, 2014.

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The Hispanic Millennial Project

Mar06

Posted by Jose Villa

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In a past article I introduced the Hispanic millennial segment as potentially one of the most important and misunderstood consumer segments in the U.S. As with millennials in general, they are deservedly drawing the attention of marketers because of their size, lifetime value, and significant cultural impact. They are also drawing a lot of attention from brands [...]

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The “Measured Life”: A Belief Worth Counting?

Feb07

Posted by Daniel

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  There was a time when the idea of everyone having a personal computer seemed out of this world.  Everyone knows that perception was proven wrong and shortly following, tablets were doubted as well to replace the  desktop computer.  Oh… how times have changed.  Haven’t consumers learned their lesson yet to  never sell technology short? [...]

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Why the Future of Advertising (and America) is Cross-Cultural

Feb06

Posted by Jose Villa

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The last year has been filled with talk about the virtues and the issues with the concept of total market advertising. In a recent article I posited that there are essentially three different models for multicultural marketing. Although the terms are being used interchangeably, the result is a great deal of confusion in the multicultural marketing world. [...]

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Nontraditional Hispanic Markets Emerge

Jan02

Posted by Jose Villa

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I often say, the Hispanic market in the U.S. has been changing as quickly as it’s been growing the last 15 years. One of the biggest ways it has changed is geographic distribution. One only has to take a quick glimpse at the following heat map to understand how the Hispanic population is spreading to [...]

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How easy is Government Contracting?

Dec17

Posted by RobynL

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Is government contracting as easy as Small Business Offices  (http://www.acq.osd.mil/osbp/sb/dod.shtml) make it out to be? Let’s take DoD for example. Everyone seems to want to do business with them. Who wouldn’t? With a budget of $526.6 billion for FY 2014, more companies are turning to DOD for a share of the work. According to DoD, [...]

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Is Total Market Approach a Threat to Multicultural Marketers?

Dec13

Posted by Jose Villa

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Pepper Miller of the Hunter-Miller Group writes an interested rebuttal of the total market approach in AdAge titled “‘Total Market’ Gets Lots of Buzz, but Multicultural Agencies Will Suffer Badly.” Her provocative post states that “the underlying premise [of the total market approach] is that ethnic agencies are largely unneeded, that the current multicultural marketing model — [...]

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QR Codes for Advertisers: Creative & Interactive or Old News & Useless? // by Maya Kosover

Dec05

Posted by RobynL

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Somebody in the advertising business recently handed me his card with a fairly large QR code on the front. I wandered around the office, trying to get somebody to scan it for me to see where it led – probably a LinkedIn page, or maybe an About Me site. Unfortunately, nobody in the office had [...]

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Hispanic Millennials: Opportunity amidst the Hype?

Dec05

Posted by Jose Villa

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As in the general market, more and more Hispanic marketing attention is focused on the “coming of age” generational cohort known as Millennials. Hispanic Millennials generally refers to U.S. Hispanics born between 1981-2000 [1] or 1980-1995 [2] (ages 13-32 or 18-35). There are many variations of the definition used by market researchers and pundits. As [...]

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The Collision Between Technology & Corporate Marketing

Nov21

Posted by Daniel

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In today’s modern business world, there is a collision taking place which is causing tension between the marketing & technology professions. With that said, the definition of the marketing manager is being re-defined, triggering an identity crisis for many conventional “Marketing Managers”. It’s not surprising that in a recent business survey among CEO’s,  21% answered [...]

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