The African-American Marketplace - Television Bureau of Advertising

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The African-American
Marketplace
1
Table of Contents
Introduction
Slide 3
Demographic & Geographic Trends
Slides 4-17
Purchasing Power & Spending Patterns
Slides 18-24
Media & Technology Usage
Slides 25-28
Advertising to African-Americans
Slides 29-32
Marketing and Advertising
Slides 33-38
2
According to the U.S. Census Bureau, the
African-American population reached
39.6 million in 2009 (12.9% of the
U.S. population), making them
the second largest minority group.
Source: U.S. Census Bureau Annual Population Estimates 7/09, released 6/10
3
A Demographic Profile
4
Key Census Bureau Facts






The African-American population is 52% female to 48% male.
The African-American population is younger with a median age
of 31.3 years compared to non-Hispanic whites at 41.2 years.
African-American households are slightly larger than the
average non-black households – 2.6 persons vs. 2.5 persons.
The African-American household is slightly more likely to have
children under 18 (0.8 persons vs. 0.6 persons for whites and
others).
83% of African-Americans 25 years and older completed high
school or a higher level of education in 2009.
33.8% of African-Americans were enrolled in college in 2009.
Source: U.S. Census Bureau, Annual Estimates 7/09; Bureau of Labor Statistics 10/09
5
African-American Population is Younger
than Non-Hispanic White Population
Source: U.S. Census Bureau Annual Population Estimates 7/09
6
Completed 4 Years of College or More: U.S.
Total & African-American for Population 25+
73% More African-American Adults are College Grads in 2008 vs. 1990
1990
2000
2006
2008
11.3
21.3
16.5
African-American
25.6
Total U.S.
18.5
28.0
19.6
Source: U.S Census Bureau, Current Population Survey, 7/09
29.4
7
Educational Attainment
Percent of “25 and Over” in African-American Population in 2008
Less Than
High School
Grad
17.0
8.5
35.1
High School
Grad.
Some College
Bachelor's
Degree+
31.6
19.5
African-American
17.9
Non-Hispanic White
19.6
Source: U.S Census Bureau, Current Population Survey, 7/09
32.6
8
Types of Housing




46% of African-American consumers own their own
homes.
There are 32% of African-American homeowners with
mortgages.
14% of African-American homeowners are without
mortgages.
54% of African-American consumers are renters.
Source: Average annual expenditures and characteristics, Consumer Expenditure Survey, 2008 (latest data available)
9
Household Income
Percent Distribution of Income for Households in 2007
$100,000+
$75,000-99,999
$50,000-74,999
$25,000-49,999
Less than $25,000
9.8
20.2
8.3
11.9
African-American
16.2
Total U.S.
18.2
27.3
24.9
38.3
24.9
Source: U.S Census Bureau, Current Population Survey 2008 (latest data available)
10
Geographic Patterns
11
The Nation’s New Mix
Source: L.A. Times, Based on Census 2000
12
Five States with the Largest
African-American Population


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
New York
Florida
Texas
Georgia
California
Source: U.S. Census Bureau Annual Population Estimates 7/09
3.35
2.98
2.98
2.97
2.45
million
million
million
million
million
13
Washington, D.C. Has the Largest Percentage of
African-Americans in Its Total Population

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Washington, DC
Mississippi
Louisiana
Georgia
Maryland
Source: U.S. Census Bureau Annual Population Estimates 7/09
54.0%
37.2%
32.1%
30.2%
29.7%
14
Majority of African-Americans Lived in
the South In 2008
55.3%
17.6%
17.7%
9.4%
Northeast
South
Source: US Census Bureau Annual Population Estimates 7/09
Midwest
West
15
Top 25 African-American TV Markets
Rank
1
2
3
4
5
6
7
8
9
10
11
12
DMA
Market
New York
Atlanta
Chicago
Washington, DC
Philadelphia
Los Angeles
Detroit
Houston
Dallas - Ft. Worth
Raleigh-Durham
Baltimore
Miami
African-American
TV HH
1,256,380
664,860
589,240
571,980
551,070
475,180
378,730
377,960
368,640
302,670
297,580
297,110
Source: Nielsen Media Research DMA and Demographic Rank, January 2011
% Total
African-American
TV HH
Cume %
African-American
TV HH
8.9
4.7
4.2
4.1
3.9
3.4
2.7
2.7
2.6
2.2
2.1
2.1
8.9
13.6
17.8
21.9
25.8
29.1
31.8
34.5
37.1
39.3
41.4
43.5
16
Top 25 African-American TV Markets
Rank
13
14
15
16
17
18
19
20
21
22
23
24
25
DMA
Market
Memphis
Charlotte
Norfolk
Cleveland
St. Louis
Birmingham
San Francisco
New Orleans
Orlando
Tampa-St. Pete.
Richmond
Jackson, MS
Columbia, SC
African-American
TV HH
% Total
African-American
TV HH
Cume %
African-American
TV HH
268,620
220,560
219,690
210,780
193,670
180,510
180,350
175,000
173,730
169,960
159,090
148,610
144,170
1.9
1.6
1.6
1.5
1.4
1.3
1.3
1.2
1.2
1.2
1.1
1.1
1.0
45.5
47.0
48.6
50.1
51.5
52.8
54.0
55.3
56.5
57.7
58.9
59.9
60.9
Source: Nielsen Media Research DMA and Demographic Rank, January 2009
17
Purchasing Power &
Spending Patterns
18
Buying Power of African-Americans
According to estimates from the University of Georgia’s
Selig Center for Economic Growth:


The nation’s black buying power will rise from $318
billion in 1990, to $910 billion in 2009, to $1.1 trillion in
2014, up by 257% in 24 years.
This overall percentage gain outstrips the 189% increase
in white buying power and the 206% increase in total
buying power (all races combined).
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
19
Share of Total Buying Power


In 2014, African-Americans’ share of U.S. buying power
will be 8.7%, up from 8.5% in 2009 and up from 7.4%
in 1990.
Nationally, African-American consumers will account for
almost nine cents out of every dollar that is spent.
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
20
Factors Leading to Gains in
African-American Buying Power
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Population growth is faster than the total population and the
African-American population is younger.
From 1990 to 2009, the black population grew by 28.8%
compared to 16.8% for the white population and 23% for the
total population.
Another factor is African-Americans’ rising levels of education.
Census data show that the percentage over 25 who have
completed high school or college rose from 66.2% in 1990 to
83% in 2008.
Gains also reflect an increasing number of African-Americans
who are starting and expanding their own businesses.
Larger proportions of African-Americans are either entering the
workforce for the first time or are moving up from entry-level
jobs.
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
21
Top 10 States for African-American
Buying Power
State
1
2
3
4
5
6
7
8
9
10
New York
Texas
California
Georgia
Florida
Maryland
Illinois
North Carolina
Virginia
New Jersey
Totals in Billions
$ 86
$ 72
$ 62
$ 61
$ 61
$ 52
$ 45
$ 41
$ 38
$ 35
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
22
States With Largest Growth in
African-American Buying Power
State
1
2
3
4
5
6
7
8
9
10
Montana
Idaho
Wyoming
North Dakota
South Dakota
Maine
Hawaii
Utah
Vermont
New Mexico
% Increase 2000-2009
311
261
252
186
183
179
156
154
150
143
Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009
23
Top African-American Average
Annual Consumer Expenditures
Product/Service
Dollars
Housing and Related Charges
$13,770
Transportation
6,520
Food
4,594
Personal Insurance & Pensions
3,532
Utilities, Fuels and Public Services
3,598
Apparel & Services
1,983
Healthcare
1,595
Entertainment
1,478
Cash Contributions
1,171
Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2008 (Latest information available)
24
Media Usage/Technology Usage
25
African-Americans View Almost 40%
More TV Than the U.S. Average
Weekly Tuning per TV Household (Hours: Minutes)
Source: Nielsen Media Research, Television Audience 2009
26
Cable Plus ADS Hasn’t Increased Since 2007 in
African-American TV Households
Cable Plus ADS % penetration in TV HH
67
2000
76
80
85
2005
2006
82
86
2007
84
86
2008
84
87
2009
84
88
Source: Nielsen Media Research, Television Audience 2009
African-American
Total U.S.
27
African-American Internet Usage
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eMarketer reported data from an Internet Innovation
Alliance study that showed 40% of African-Americans
use the Internet regularly, with 19% using it all the time.
Another 27% were considered occasional users.
21% of African-Americans never use the Internet and
11% said they use it rarely.
African-American respondents were nearly twice as likely
as Hispanics to never go online.
The top Internet activities for African-Americans were:
keeping in touch with friends and family, educationrelated activities, accessing information like weather
data, and work-related activities like job searching.
28
Source: eMarketer 12/30/09
Advertising Campaigns Targeted
to African-Americans
29
General Mills Increasing Spending in
African-American Marketing Programs
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In an expansion of the Feeding Dreams program, the new
campaign focuses on grassroots efforts, media relations, and
an increase in digital outreach.
Feeding Dreams kicked off its second year on August 3rd by
honoring local heroes in 4 markets: Memphis, Norfolk, VA,
Birmingham, and Charlotte, NC.
The expanded online presence includes: a Web site, Facebook
page, Twitter account, and YouTube Channel.
According to Kimberley Bow Sundy, Manager of PR and
Multicultural Marketing, “In tough economic times, you have
to look at consumer segments who are very brand-loyal and
figure out how you can really enhance your dialogue with
them.”
Source: targetmarketnews.com 7/30/09
30
Ford Is the Exclusive Automotive Partner of
the 2009 Essence Music Festival

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Ford sponsored the Essence festival in New Orleans over the
July 4th weekend, with Beyonce as the headlined artist.
The Essence festival is the nation’s largest annual gathering
of African-American music and culture, and is unique because
it includes 3 days of free empowerment seminars.
Unique programs were created for New Orleans, like
sponsorship of the Women’s Day Seminar, to vehicle ride and
drive opportunities with the 2010 Ford Fusion Hybrid.
Other activities include a Ford-sponsored Steve Harvey
Morning Show Live Broadcast and books signing, a Ford
Fusion Hybrid Giveaway as part of their Women Driving
Progress Program, a special Lincoln-sponsored T.D. Jakes
Tribute, and sneak previews of its newest products.
Source: targetmarketnews.com 6/11/09
31
Mandela Day 2009: “Two Hands”

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Celebrated for the first time ever on July 18th in New
York City.
Advertised through video, print, outdoor and online
efforts.
Advocated that New Yorkers volunteer 67 minutes of
service to others.
The 67 minutes are representative of the 67 years
Mandela dedicated to fighting social justice.
32
African-American
Marketing and Advertising
33
African-Americans Show Strong
Reconnection to Heritage
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According to the Yankelovich MONITOR Multicultural Marketing
Study 2006, 67% of African Americans say (vs. 43% of NonHispanic Whites), “My roots and heritage are more important to
me today than they were just five
years ago.”
59% of African Americans (vs. 22% of Non-Hispanic Whites) say
they, “make a great effort to become more connected with my
heritage.”
“The strong connection and/or reconnection to heritage being
observed among African Americans suggest marketers need to
pay specific attention to the individual cultures. Marketers need
to re-examine how to re-engage with African American
consumers and how to best support consumer empowerment,”
said McGhee Williams Osse, Co-CEO of Burrell Communications.
Source: Business Wire, 8/11/06
34
Attitudes on Being on the Cutting Edge

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Nearly half of African-Americans feel the need to dress in
the latest fashions and keep up with the newest styles.
Nearly half also feel the need to keep up with the latest
trends in movies, music and TV.
There is also a growing number of early adopters and
trendsetters within the African-American community.
Source: Don Coleman Advertising/Yankelovich & Partners African-American Monitor
35
How to Reach this Lucrative Market
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Creative executions need to be relevant.
Casting alone does not make an ad or spot targeted
toward African-Americans.
Message must be direct, without alienating other
consumers who may see it.
Attention to detail is a must, since African-Americans are
very perceptive of and attuned to nuances within
advertising.
Source: Don Coleman Advertising
36
Best Creative Ads
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Don’t assume all African-Americans like rap music.

Don’t assume all African-Americans live in urban areas.

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Don’t assume all African-American women are single
mothers.
Create ads that are engaging, insightful, respectful of
and relevant to the marketplace being targeted.
Source: Don Coleman Advertising
37
Best Creative Ads Include:

Relevant casting

Music

Use of relevant celebrities (actors, musicians, athletes)

Eye contact with the consumer

Advertisements that are aspirational, youthful, and
energetic in their tone
Source: Don Coleman Advertising
38
Thank You
39
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