Multicultural Marketing Communications Agency Market Relevancy Hispanics and Social Media viva partnership about us viva fast facts • Full service Total Market & Multicultural Marketing agency • viva is comprised of 5 divisions: viva integrated marketing services, viva digital, viva promotions, viva research and viva media – Profound understanding of the various ethnicities, language proficiencies, geographical and generational differences, and cultural variances – Significant experience in retail, beer & spirits, health & beauty, financial and automotive categories • 14 years in business • Offices in Miami and San Antonio Copyright 2011 ViVA Partnership. All rights reserved. CONFIDENTIAL 3 viva fast facts • Experts in multicultural brand insight generation • We are minority owned, certified and managed. • viva is independently owned and operated. • A proud member of ICOM A mid-size agency where partners & senior staff are highly involved in ensuring the success of our clients. A Sampling of Our Brand Experience 5 Copyright 2011ViVA Partnership. All rights reserved. CONFIDENTIAL Agency Services • Brand Insight Generation & Strategy • Brand Positioning & Integration • • • • • • • – Proprietary Strategic Marketing Tools Creative and Production Interactive Strategy/Digital Marketing Consumer Promotions Direct Marketing Database Marketing Community and Public Relations Media Planning & Buying – Online & Offline • Grass Roots Marketing • Consumer/Category Market Research • Shopper Marketing Copyright 2011 ViVA Partnership. All rights reserved. CONFIDENTIAL 6 Demographics and Culture USA Demographic Shifts • The average age of the Hispanic population is 27.1 years. – The average U.S. head of household – – is now nearly 50 years old. The average U.S. head of household is now nearly 50 years old. The average age of the general market is 38. 2007 U.S. Race and Ethnicity W/in Age Groups -65+ 81% White 09% Black 07% Hispanic 45-64 74% White 11% Black 10% Hispanic 25-44 62% White 18% Hispanic 13% Black 18-24 61% White 17% Hispanic 15% Black <18 57% White 21% Hispanic 15% Black • There are over 50 million Hispanics in the USA! • • • That’s more than the population of Canada, Norway, Iceland, Ireland… Combined! Hispanics currently represent 15.1% of the U.S. population. • Latinos account for half of U.S. Population Growth Since 2000. • More than 1 in 6 people in America is Hispanic. Today, 1 of every 5 kids is Hispanic • 1 in every 2 teens in Los Angeles is Hispanic. • 22% increase for Hispanic youth vs. white youth 5% decrease. • • Hispanics are the fastest growing population in America. Non-Hispanic projected growth is 1% • Hispanic projected growth is 167% • • Hispanics disposable income is over $900 Billion and expected to hit the $1 Trillion mark in 2010. But already the 18th largest economy in the world! Hispanics outspend non-Hispanics on electronics, movies, clothing, beauty, video games, CD’s, groceries. • Hispanics make up a significant percentage of the U.S. urban population • • • Over 65% of kids 2-11 in Los Angeles are Hispanic. Over 50% of adults 18-34 in Miami DMA are Hispanic • Miami Dade County is 79% Hispanic! Of San Antonio teens 12-17, 63% are Hispanic. • Not just transforming states, but they are also transforming culture: • • • • • Salsa outsells ketchup Gloria Estefan outsells Fergie Dora the Explorer outsells Barney Enrique Iglesias outsells Jay Z Tortillas outsell bread • And now, Girl Scouts are also on the Latino highway… with a new cookie flavor, Dulce de Leche Girl Scout cookies! Communicating and Marketing to Hispanics Language & Culture Relevance is Key • Now and in the Future: • Hispanic marketing will evolve from a language-focused approach to a cultural/language approach. American Hero Hispanic Hero American Day of Bad Luck Hispanic Day of Bad Luck American Cats have 9 lives Hispanic Cats have only 7 lives American image of beauty Ultra Thin Hispanic image of beauty Ultra Curvy Hispanics and Social Media Internet penetration • • • According to comScore, the U.S. Hispanic online population reached a record 20.3 million visitors in February 2009 – up 6 percent from a year earlier. Estimated to be 25 Million by 2010 The Pew Hispanic Center projected in December 2009 that an estimated 24 million Latinos are online. ComScore’s 2009 study found that the Hispanic online demographic is growing at a U.S. Hispanic online growth rate PASSED mainstream 25 million visitors Hispanics over-index in downloading digital content 48% of Hispanics have a social network profile vs. 31% of white adults Hispanic teens represent 16% of the U.S. teen population online Internet usage: Narrowing the gap • For Hispanics, the increase in internet use has been fueled in large part by increases in internet use among groups that have typically had very low rates of internet use. • Latinos with household incomes of less than $30,000 experienced particularly large increases in internet use. SOURCE: Pew Hispanic Center - Latinos Online, 2006-2008: Narrowing the Gap (December 2009) Internet usage SOURCE: Ad Age Fact Pack 2009 Internet usage SOURCE: Ad Age Fact Pack 2009 Major Factors Affecting Hispanic Internet Usage Education –> completion of H.S., college degree • • 10% of Latinos have a college degree, and of that small group, 89% are online 50% of Latinos have finished high school, and of those, 70% use the internet Language –> English vs. Spanish dominant • 78% of English dominant & 76% of bilingual Latinos use the internet, compared to 32% of Spanish-dominant Latinos Younger Latino demographic • • 67% of Latinos age 18-29 use the internet Latinos are a young population with nearly twice as large a share of adults under 40 than whites SOURCE: Pew Hispanic Center (December 2009) Major Factors Affecting Hispanic Internet Usage Socioeconomic status –> income • • • 9 in 10 (88%) Hispanics with an income greater than $50,000 are online 72% making between $30,000 & $49,999 39% making less than $30,000 Nativity/Generation —> 2nd & 3rd generation • • 76% of U.S. born Latinos use the internet versus 43% of foreign-born Latinos 2nd generation Latinos are the most likely group to go online. 80% of 2nd gen. Latinos use the internet SOURCE: Pew Hispanic Center (December 2009) Social Media Facts • Ethnic minorities visit social networking site more often than nonHispanic whites. • Younger people are more likely to adopt new technologies, especially those encouraging social connectivity. • Hispanics tend to hold more collectivistic values and look to one another for help in making decisions • According to the 2009 Ad Age Hispanic Fact Pack, 41% of online Hispanics visit both Facebook and MySpace regularly. • 88% of U.S. Hispanics cited as having profiles in online networking sites Social Media Facts • Ethnic minorities visit social networking site more often than nonHispanic whites. 58% (14.7 Million U.S. Hispanics) 9% (2.2 Million U.S. Hispanics) 80% (20.3 Million U.S. Hispanics) 23% (5.8 Million U.S. Hispanics) Social Media Facts SOURCE: Ad Age fact Pack 2009 Participation: Hispanics are far ahead Hispanics Non Hispanics 40 % 12 % 39 % 15 % 27 % 11 % 40 % 19 % 69 % 42 % 23 % 51 % SOURCE: Forrester Research (2008) Ready to influence: Proud & Loud SOURCE: Forrester Research (2008) 24 hours online per week SOURCE: AOL Cyberstudy (2010) Connected 24/7 • More than any other minority, Hispanics value communication technology that can easily access online content like the iPhone, Blackberry and other devices with wireless capabilities. • According to MultiMedia Intelligence, Hispanic teens ages 12-17 represent 2.5 million wireless subscribers and this is highly because of their attention and participation in online world via Social Networking sites. • Hispanic teens want to be “connected 24/7.” SOURCE: Multimedia Intelligence (October 2008) Hispanic-fluentials • An estimated 20% of Hispanics that are online are considered Hispanic-fluentials spending an average of 30 hours per week interacting online vs 25 hours per week cited by the American population. • Hispanic-fluentials routinely pass their review/comments along to family, friends and colleagues and are also more likely to pass on or share negative opinions online with them. • They go online for entertainment including music, sports and fashion, but more importantly they turn to online articles and reviews to form opinions about what they are thinking of purchasing. SOURCE: Boden PR Industry experts quotes “…a large percentage of Hispanics consume Spanish sites here and from their country of origin.” Marta Martinez, the CEO of StarMedia "Digital technologies have made it much easier to stay in touch with friends and family from wherever they may be; however, I tend to look at acculturation as a choice…” Christopher Stanley, CEO of Alcance Media Group “The beauty of social media in a cross-border context is that it can actually help immigrants develop more of a bicultural existence.” Tamara Barber, analyst at Forrester "The implications of the 2010 Census are huge. Marketers don’t necessarily know the spending power of the U.S. Hispanic population. Their purchasing power makes them equivalent to the 15th-largest consumer marketplace in the world.” (via Adweek, Noreen O’Leary) Key takeaways • Hispanics are influencing the mainstream Online Hispanics have proven to be tech-savvy media trendsetters. • Life stage is key Your language/media mix should be based on the life stage of your consumer • Tailor your message to their experience Hispanics prefer messaging that takes into account their backgrounds and experiences. SOURCE: AOL’s Hispanic Cyberstudy: Marketing to the web’s most rapidly growing population (January 2010)