African American
Direct Marketing
Presented by:
Verdia E. Johnson
President, Footsteps
February 2005
Overall African American
Market Highlights
African American Buying Power
Buying Power $ (in billions)
$964.6
Over the past 14
years, buying power
$723.1
$584.9
$318.3
has increased 127%
and is projected to
increase 203% by
1990
2000
2004
2009
Growth from 1990 by Percentage (%)
203.0%
2009
140.0%
127.1%
83.7%
2000
89.4%
58.4%
2004
African-Americans
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
2009
Non-Hispanic Whites
African American Buying Power
States with the Highest Concentration of AA
Buying Power by Percentage (% )
Virginia
Delaware
North Carolina
Alabama
South Carolina
Georgia
Louisiana
Maryland
Mississippi
District of Columbia
13.3%
14.1%
14.4%
17.1%
18.6%
20.2%
20.2%
21.9%
23.6%
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
35.8%
African American Population
Population (in millions)
30.0
1990
2000
34.6
2004
36.5
38.9
2009
Growth from 1990 by Percentage (%)
29.7%
21.7%
The population continues
to grow and outpace
Non-Hispanic Whites
15.3%
5.9%
2000
12.1%
8.5%
2004
African-Americans
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
2009
Non-Hispanic Whites
African American Population by Region
9.6%
South (19.5 million)
17.8%
Midwest (6.8 million)
Northeast (6.6 million)
53.5%
West (3.5 million)
18.6%
African American Population by Age
6.6%
Under 15
7.9%
27.4%
11.5%
15-24 (50/50 male-female)
25-34
35-44
45-54
15.6%
16.0%
14.7%
55-64
65+
 48 % Male
*Source: U.S. Census Bureau, Census 2000 Summary File 1

52 % Female
Household Size
Women are more prominent
in AA households vs. general
market households
1
person
17%
48.2% of AA households
2
people
28%
are headed by women vs.
27.6% of non-Hispanic White
households
AA women bring in almost
half (48.9%) of total income in
AA pop. vs.1/3 of the total
income for other racial/ethnic
groups
5+
people
17%
Source: 2004 MRI DOUBLEBASE, Packaged Facts, Marketing to Women, 2004
3-4
people
38%
African American Education Attainment
14.6%
College Graduate
21.6%
African Americans 18+
36.9%
Some College
Persons 18+
36.6%
85.3%
High School Graduate
89.9%
0%
10%
20%
30%
40%
Source: Scarborough USA+ Release 1, 2003, 12 month data, 2004 Arbitron, Inc.
50%
60%
70%
80%
90%
100%
African American Residential Status
68.9%
50.0% 50.0%
27.8%
African American
General Market
52.9%
Own
49.7%
Rent
36.1%
29.5%
African American
MSA Central City
Source: 2004 MRI DOUBLEBASE STUDY
General Market
MSA Suburban
African African Youth
Market
Demographic/Psychographic Profile
Target Population Profile
Demographics:
 Age 16-21
 Population - Roughly 5.5 million people
 Geographic location
-
South - 58.7
Midwest -16.9
Northeast - 14.3
West - 10.1
 Majority live at home
 Education
- 70.2 % graduated from high school
-
32.7% attend(ed) college
Source: 2004 MRI DOUBLEBASE STUDY
Target Population Profile
Psychographics:
They appreciate…
 Speed: Live for the moment – they acquire information and
move on, always multitasking
 Individuality: It is essential that they retain individuality within a
group environment and have the freedom to express
themselves and their uniqueness (hip-hop)
 Trendsetting: Recognizing the power of being first, they
constantly seek the opportunity for newness
 Technology: Using technology, to multitask, retain speed and,
gather information; is an integral part of their lives
 Entertainment: Part of the absorption mentality - in order to get
their attention, it has to be engaging
Target Population Profile
Psychographics: African Americans are…




Source: MRI Twelveplus 2004
Fashion Forward
- Spend significantly on clothes and shoes
Hip & Savvy – Internet Activity in last 30 days
- Visited chat room - 339 Index
- Sports/News & Current Events - Index
- Played games online - 207 Index
Financially Independent
- Employed - 63.4%
- Acquired Savings Account in own name - 157 Index
Vigorous – Sports Played in Last 12 Months
- Football - 237 Index
- Basketball - 215 Index
- Volleyball - 186 Index
- Baseball - 174 Index
- Softball - 157 Index
- Soccer - 150 Index
Hip-Hop is the lifestyle…
Rap is the music…
Urban is the mindset.
The Hip-Hop Universe
Hip-Hop. . .
. . . is a lifestyle of youth that originates from the African
American culture
. . . has inspired an entire youth group to embrace its
language, fashion and lifestyle
. . . cuts across a rich cultural spectrum encompassing
AAs, Whites, Hispanics and Asian
Hence, today’s clothing, sneakers, electronics and entertainment have all
been heavily influenced by Hip-Hop music and its artists
According to a study by Edison Media Research, 12-24 year olds prefer
Hip-Hop and Rap to any other style of music by an overwhelming margin
Source:“Is Hi-Hop The Future of Rock?” Radio and Records, May 25, 2001
The Hip-Hop Universe
Listener Profile:
Based on USA Today’s radio airplay chart, more than a quarter
of the most-heard songs of 2003 were by Hip-Hop artists…
12-17 years
7%
18-24 years
5%
26%
15%
25-34 years
50% between
12-24 years
35-44 years
45-54 years
22%
55+ years
25%
Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003
The Hip-Hop Universe
Listener Profile:
Other
29%
Ethnic Composition
African
American
46%
Gender
Hispanic
25%
46%
54%
Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003


The Hip-Hop Universe
 Television, movies, magazines, and even video games have all
attempted to capture the Hip-Hop magic
 Television networks like BET, UPN and MTV actively target the
Hip-Hop audience
 In movie theatres, films starring rappers and Hip-Hop stars have
begun to cause major bounces in box office receipts
 New book genres like Street Life have shown tremendous
growth and are introducing a brand new audience to book
publishing
 Urban magazines like The Source, Vibe, Blaze, XXL and
Rides are some of the fastest growing titles in the industry
 Even video games are using Hip-Hop music and stars both on
soundtrack and as major characters in storylines
The Hip-Hop Universe
Community Involvement:
 Hip-Hop stars, DJs and radio stations play very active roles in their
communities
 Some of the charities and community programs these personalities
are associated with are:
- African American Leadership Council – Doug Banks (ABC Radio
Personality
- The Ludacris Foundation – benefiting children
- SHINE – P.Diddy/Russell Simmons – empowering young people to
promote diversity and end youth violence
- Jes Us 4 Jackie – Nelly – benefits leukemia research
- Save A Life Foundation – Snoop Dogg
- C.A.U.S.E. – Eminem – helping underprivileged children and families
- The Hip-Hop Summit Action Network – education and societal
advocacy for at-risk youth
The Hip-Hop Universe
 Hip-Hop fans are extremely loyal individuals
 Hip-Hop carries with it a street credibility that young consumers are
highly tuned to
 Music plays a key part in their lives and they connect to the total
lifestyle
 That is what makes Hip-Hop music and Hip-Hop stars very effective
as advertising vehicles
 Fans buy almost anything the Hip-Hop lifestyle endorses
 Therefore, strong Hip-Hop marketing can earn sincere brand
loyalty from a notoriously fickle consumer group
The Hip-Hop Universe
Today’s role models have changed from athletes to
Hip-Hop stars and they promote many products.
The Gap – LLCool J, Missy Elliot
Right Guard – Method Man, Redman
Heineken – Jay-Z
Coors Light – Dr. Dre
Reebok – Jay-Z, Fifty Cent
Cadillac – Snoop Dogg
Coca Cola – Common Sense, Mya
Twix – Usher
Verizon – Tweet
Lugz – Funkmaster Flex
Cover Girl – Queen Latifah
Got Milk? – Nelly
Pepsi – Beyonce Knowles
Dr. Pepper – LL Cool J, B2K
Success Stories
 S. Carter Collection (Jay-Z) sold out in a few hours the
first weekend it was in stores, making it the fastest
selling shoe in Reebok’s history
 When Western Union started using the urban format to
promote money transfers, transactions increased 100%
 Gillette saw a 14% increase in market share after
advertising on Hip-Hop radio in Memphis
 After Sprite launched an ad campaign with Hip-Hop stars,
Time magazine reported that people who said Sprite was
their favorite soda quadrupled
Source: The Mercury News, March 2003
African Americans and
Direct Marketing
Direct Marketing Overview

It is estimated that only 30.5% of African Americans are exposed to
direct mail

However, more than 75% of this segment read the direct mail received

Historically, the distribution of relevant direct mail has been hindered by
a lack of lists that are accurate and reliable

However, today’s technologies allow the extraction of knowledge from
general data bases and rented lists in order to identify people by race
and ethnicity as well as provide other attributes

There is also a growing number of opt-in lists available

Based on the limitations of direct mail, the most successful direct
marketing campaigns in the African American market and among this
young target audience are integrated and focused on…
- their interests
- the media that they consume most often
Source: Targetonline.com, Target Marketing Tipline, September 2003, Geospace International
Relevant Communications Vehicles

Television:
-

Good vehicle for broad reach and complete brand communication
Sight, sound and motion provides high visibility and excitement and
accommodates direct response mechanism
Cable, network and syndicated TV provide a range of programming for
the youth target audience
Ability to extend message with promo announcement at the end of
specific programs
Limitations include limited interaction and short format
Spot Radio:
-
-
Strong frequency medium that is good for message reinforcement
Deep penetration into communities via local area promotions,
sometimes in conjunction with high profile organizations
Best medium in a local area for forming an allegiance with the
potential customer; DJs have celebrity status and can hype a product
campaign
Delivers local market ratings similar to general market television
activity in most markets
Relevant Communications Vehicles

National Magazines:
- Visual message allows for clear registration of products, services and
call to action
- Format can accommodate complex message
- Efficient in delivering the target
- Good selection of titles for youth market
- Work with publications to distribute information to their subscribers
- Limitations - not very accomplished in delivering regional market
needs
 Internet:
-
Sight, sound and motion makes message impactful
Interactive (Chat room, etc.)
Can accommodate long format message
Can cross promote with publishing and broadcast vehicles
Can track results daily
Relevant Communications Vehicles
 Events:
- One-on-one conversation with consumers that blend fun and
exciting activities
- Interactive
- Collect data base
BET’s “Rap It Up” Campaign
 BET partnered with the Kaiser Family Foundation to develop a
public education and awareness campaign about HIV/AIDS
 The objective of the campaign was to get information into the hands
of young people
 The campaign included television and online components that
included AIDS related programming, public service announcements
with a toll free hotline and website with AIDS-related information
 The campaign also had grassroots components which included:
- Teen forums hosted by BET talent
- Partners from the local public health departments for on-site testing
- “Classroom Connection” curriculum based on the BET documentary
series – The Naked Truth
BET’s “Rap It Up” Campaign (cont.)
 Results were good; as of May 2004:
- More than 85% of AAs in the 16-24 age group were aware of the
program
- 900,000 people called the hot line
- 300,000 people received sexual health information
- 11,000 participated in on-site tests and forums
Direct Response Programs
XXL magazine ads
featuring urban-todirect video movies
generated $170K in
sales for every $100K
of ads
A client’s
response rate in
Vibe was 10% on
an insert card
AOL CD insert in Complex
magazine generated a
15% response
Other Relevant Communications Vehicles
 Short film in movie theatre
 Internet videos
 CDs inserted in print media
 Message on DVDs
Recruiting Insights
Environment Change
Peace
Life
War
Death
Recruiting Issues
 Majority of African Americans are against the war in Iraq and have
been against the war from the beginning
- Some AAs feel that they (in addition to Hispanics and poor
whites) are bearing most of the burden for fighting and dying in
the war
 Also, politically, a majority of AAs feel that the current
administration is oblivious to its concerns, and the war in Iraq has
reinforced this perception
 From a youth perspective, perceptions are no different
 Hip-Hop artists continue to organize and speak out against the war
in Iraq
Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004
Recruiting Issues
 Some of these artists (role models) are:
R.Kelly
OutKast
XZIBIT
Mos Def
Jay-Z
Fat Joe
Missy Elliott
P. Diddy
Tweet
Busta Rhymes
Nas
Eminem
 Some of these artists have lyrics and comedy routines expressing
views against the war (i.e. XZIBIT, R. Kelly and Eminem), while
others formed a United Against The War Coalition
Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004
Recruiting Issues
The most vocal rapper
recently is Eminem
with lyrics and a video
about his views from
his song called
“Mosh”
Historical Recruiting Continuum
Prospect …
Becomes
Aware
Becomes
Intrigued
Seeks
Info
Seeks out
Dialogue
Wants to
Join
Affirms
Decision
TV
Print
Radio
Online Media
Direct Mail
DRTV - respond
Events - get brochures
Website
Call 800 Number
Recruiter Materials
Recruiter Support
New Paradigm
With a different environment and recruitment issues,
prospects will critically evaluate the message and the
medium, therefore, the following should be examined:
 Message impact in the context of the new environment
 Message delivery based on the barriers that exist
 Immediately engaging vs. informing/intriguing a prospect
 Market segmentation based on profile and geography
Strategic Approach
 Focus on Influencers
- Parents, coaches, teachers, clergy, directors of
recreation centers, trade schools, GED classes,
etc.
 Explore long message formats
- Facilitates a more complex message
New Recruiting Paradigm
More human support at all stages …
Influencers
Become
Aware
Influencers
Seek
Info
Influencers
Engage
Prospect
Prospects
Seek Info
& Dialogue
Prospects
Decide to
Join
Prospects
Affirm
Decision
Print
Direct Mail
Online Media
Community Outreach
Online Media
Radio
Website
800 Number
Recruiter Materials
Recruiter Support
Conclusion
 The majority of the target audience (16-21 year old
AAs) participates in or is influenced by the Hip-Hop
lifestyle
 Because of this influence, the Hip-Hop community’s
negative views about the war in Iraq are also
influencing their thinking on this subject
 As a result, there is a need for the military to enlist
other influencers and employ the best direct
marketing vehicles to engage prospects and help
counteract this view
Thanks!
Any Questions?