The only thing growing at a more explosive rate these days than the U.S. Hispanic population is perhaps the interest marketers, media companies and agencies have in tapping into this highly desirable market.
Annual measured spending on Hispanic media already reaches $3.4 billion as more marketers enter this hot space for the first time, add new brands and increase existing budgets. There is an explosive array of media choices, including new cable channels and newspaper launches in the under-served Hispanic print market. Forecasts call for 15% revenue growth in 2004 for Spanish-language TV alone.
There are 40 million U.S. Hispanics, representing about 13% of the population. And they are a diverse group. One in three are under 18.Two in five are foreign-born. Two-thirds are of Mexican descent. Over half watch English-language TV. Sixteen million are eligible to vote.
Their purchasing power is a stunning $581 billion. In 2003, advertisers allocated 5.2% of their budgets to the Hispanic market, according to a study by the Association of Hispanic Advertising Agencies. The two biggest ad categories, for both the Hispanic and the general market, are package goods and automobiles. Marketers of pharmaceuticals and financial services have been slower to target Latinos, spending just 0.9% and 2.1% of their budgets, respectively, on Hispanic media, according to a recent study.
Still, marketing to Hispanics is by far the most active multicultural effort, and Hispanic agency revenue growth outpaces that of traditional agencies. In a recent study by the Association of National Advertisers' multicultural marketing committee, 70% of respondents said they market to Hispanics, compared to 59% for African-Americans and 27% for Asian-Americans.