Here are some key takeaways:

• Hispanics are more optimistic about their spending, but less optimistic about jobs than the general market.
• Hispanics are less conservative with financial issues than they were in 2009, suggesting that the lessons learned from the recession may be short-lived when/if the economy makes a full recovery.
• Hispanics are more likely than general market consumers to be in the market for big ticket purchases (TVs, computers, travel) in the next 6 months.
• BIGResearch found that Hispanic women plan on spending more in the next 90 days than general market women in nearly every category (online, health/beauty, electronics, etc.). However, the percentage of Hispanic women planning to spend more is still very small (less than 20% for online shopping which was the top category).
• The greatest difference in spending per month between Hispanics and the general market is the amount Hispanics spend on children’s clothing. On average, Hispanics spend $21 more a month, most likely because they have larger households. These bigger families also tend to be younger.

Communicating Value Through Digital is Key
As the economy begins to move forward, there are some interesting implications to consider for Hispanic consumers, particularly in digital communications. Value is of great importance to Hispanics. According to BIGResearch, Hispanics do more comparative shopping online than the general market and do more online shopping, overall. Value-focused digital communications are a good way to connect with these consumers.

 By Natalie Dalton, Empower MediaMarketing Director

Hispanic Growth
To illustrate how massive this group is, there are presently twelve million more Hispanics in the U.S. than ALL of the people in Canada!  The current U.S. Hispanic population is quite large at 45 million people, and will swell to 57 million people over the next six years.  Hispanic households are forming at four times the rate of non-Hispanic households, and each household contains an average of 3.7 persons, vs. 2.7 persons for non-Hispanic households.

Hispanic buying power is also growing at an accelerated pace.  Their collective buying power is currently at $860 billion dollars in disposable income, and is projected to grow to a whopping $1.6 trillion by 2015.  Some key buying categories for Hispanics are Automotive, Produce, Beverages, Meat, Shoes and Clothing, Beauty, and Electronics.

Ancestry
Mexicans are the largest Hispanic group, representing 60% of Hispanics in the U.S., with a significant presence in major U.S. cities.   Puerto Ricans follow with 10%, and Cubans at 3%.

Puerto Ricans are mostly concentrated in the northeast (New York, New Jersey, Boston, Philadelphia), in central and southern Florida (Orlando, Ft. Lauderdale, Miami), and smaller pockets of Texas and California.  Cubans are mainly found in south Florida, as well as in New York and New Jersey.

There are pronounced and significant cultural differences from group to group.  The three most overt differences are food, music and jargon.

U.S. Hispanic City Populations
Mostly concentrated in urban areas, Hispanics have a large presence in major U.S. cities.  Many of these cities follow the 80/20 or 70/30 rule of “80% of all Hispanics live in 20% of the zip codes.”

Growth in the California and Texas markets are fueled primarily by Mexicans due to the proximity to Mexico.  In general, the major U.S. cities draw more Hispanics simply because a heavy population of Hispanics already exists, thus allowing them a level of comfort they could not find elsewhere.

There are plenty of emerging Hispanic markets as well.  Places such as Georgia, North Carolina, and Nevada show projected increases of around 250,000 Hispanics from 2007 through 2012.

Acculturation vs. Assimilation
Since Hispanics are acculturating (the process of adapting a second culture on top of their primary and original culture) and not assimilating, (the process of replacing one’s original culture with a second or host culture) each passing day makes Hispanic new arrivals more comfortable with U.S. products and processes.  Present day new arrivals are acculturating at a far faster pace than earlier generations due to the large numbers of already established and bi-cultural Hispanics that can easily and readily show the new guys the ropes.   Hispanics are adopting and living the American dream within the framework of their Hispanic culture.  They are sharing their culture openly and proudly with non-Hispanics.

Allowing Consumer Insights to Drive the Message
Spanish is here to stay and it is the glue that binds all Hispanics together.   Thirty-two million, or 78% of all Hispanics, ages 5+ speak Spanish at home.  U.S. Hispanics will continue to speak Spanish for a number of reasons, primarily because:

•    approximately 60% of U.S. Hispanic adults were born outside the U.S.
•    continued immigration
•    cultural preservation
•    geographic concentration
•    ease of travel and telecommunications

A common pitfall in advertising is merely translating the message from English to Spanish instead of adapting the message.    Hispanics in general are more receptive to messages that are “warm and fuzzy” as opposed to drilling away at cold hard facts.   The product or service must be placed into a context or situation that will be familiar or receptive to Hispanics, as opposed to simply naming topline benefits.  It is very important that when reaching out to a particular group of Hispanics, one understands the nuances of that group.  If not executed correctly, a campaign designed to befriend and reach the group could actually end up being insulting, thus alienating them.
At Empower, we’ve used consumer insights to drive product usage with Hispanics; creating media plans that utilize traditional media as well as grassroots mobile kitchen tours.  There has never been a better time to target Hispanics.  This group represents significant buying power, media costs are low, and the environment is less cluttered due to limited advertisers.  The critical key is in the message which must start with a consumer insight.  For Empower, the Hispanic target is not considered a niche initiative; rather it’s a lucrative opportunity to maximize the media plan.