On September 19th, Claritas released our annual Hispanic Market Report, a comprehensive study of the demographics, behaviors, and preferences of the fastest-growing segment of the US population.
What makes the Hispanic market uniquely complex to engage with is its linguistic dominance and cultural diversity. Immigrants from Mexico, Cuba, and many other Spanish-speaking countries and U.S. citizens from Puerto Rico are included. This means the dialects, cultures, behaviors, interests, and values can vary among Hispanics, perhaps more than you might expect. Despite the variances, this year’s report uncovers several insights that marketers should make note of to serve and optimize engagement with the booming market.
Hispanic Market Report
The Hispanic Market is Burgeoning in Size and Strength
Hispanics now represent over 20% of the U.S. population, with projections showing continuous growth over the next five years. By 2030, more than 75.8MM Hispanics will live in the U.S. This demographic’s influence is further accentuated by their exceptional spending power, which now approaches $2.5 million in remaining lifetime value for the average Hispanic household. Standing at nearly 68.5 million, the Hispanic population has been a significant contributor to the nation’s population growth, accounting for more than 62% since 2010. In stark contrast, the non-Hispanic White population has seen a decrease of almost 5% within the same timeframe.
Demographic Growth: The U.S. Hispanic population has almost doubled in size since the 2000 Census and is projected to increase by another 7.4 million by 2030.
Consumer Influence: Hispanic households’ remaining lifetime spending is estimated to approach $2.5 million, significantly impacting various sectors such as retail, housing, education, and technology.
Income Growth: Households with incomes above $200,000 are expected to spike by over 10% from 2023 to 2024, highlighting a growing affluent segment within the Hispanic community.
Cord-Cutting Warrants a Mobile-First Approach
Hispanic households, already known for their tendency to forego telephone landlines in favor of their smartphones, are outpacing their non-Hispanic counterparts for cord-cutting in the cable/satellite TV space as well. Most Hispanic adults (79%) report watching less than 1 hour of live TV per day. We note a trend toward the use of mobile service providers as the primary Internet provider in the home, especially in Hispanic households where bundling mobile, Internet & TV services is becoming more popular. One of the important themes of this report is that brands should be considering a “mobile-first” approach to the Hispanic market. This is certainly the case in the financial services industry. Hispanics are significantly more likely to prefer to interact with financial institutions via their mobile devices.
More Time Spent on Social Media, Streaming Content, and Web Browsing Invites Multiple Avenues for Reaching This Active Audience
Social Media Ads: With 31.3% of Hispanics spending 1-2 hours and 27.4% spending 3-5 hours weekly on social media, platforms like Facebook, Instagram, and TikTok offer prime opportunities for targeted ads. Advertisers should prioritize visually engaging, mobile-optimized content to capture attention on these highly engaging platforms.
Streaming Content: With 31.7% of Hispanics spending 1-2 hours and 27.7% spending 3-5 hours on streaming platforms like YouTube, there is a strong opportunity to engage users through video ads and sponsored content during their viewing sessions.
General Web Browsing: With 29.6% of Hispanics dedicating 3-5 hours to web browsing, Google’s paid search and display ads provide an excellent opportunity to capture interest. Advertisers can focus on search engine marketing (SEM) and display ad retargeting to reach Hispanic consumers across their browsing journeys. By leveraging these kinds of digital advertising, brands can optimize their reach and engagement with a tech-savvy and mobile-first Hispanic audience.
A Strong Preference for Mobile Interactions with Financial institutions is a Clear Opportunity for Financial Brands to Optimize Mobile Banking Platforms to Cater to the Hispanic Market
Hispanic consumers strongly prefer mobile interactions with financial institutions. 45% use their mobile devices to access accounts, and 30% prefer interacting through mobile channels. This contrasts with the higher reliance on laptop/desktop interactions among non-Hispanics (26%).
Customer service is more frequently used by Hispanics (23.3%) than by non-Hispanics (19.7%), indicating that a more personalized, service-oriented (in language) approach could yield substantial results.
The Impact of Influencers, Value, and Preferences for In-Person and Social Standout in Retail
Providing a seamless, value-oriented shopping experience is essential to capturing the full potential of Hispanic consumers.
Preferences for Value and Convenience are Consistent in the Auto Category
The Hispanic market gravitates toward discount retailers like Discount Tire Co., Costco, and Walmart. They also favor well-known auto parts stores such as AutoZone and O’Reilly Auto Parts for their competitive prices and product variety. Conversely, there is a lower preference for auto dealerships and specialized stores, indicating that Hispanics may perceive these options as less advantageous in terms of value and convenience
The implications of this year’s findings are many and detailed throughout the report are many. Most importantly, they point to one major requirement for success. As the Hispanic population continues to grow while increasing in spending power and lifetime value, marketers across all categories need to develop the right strategies to engage these audiences or they will be left behind.
Download the Hispanic Market Report
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Originally Published on Martech Zone: As the US Hispanic Population Eclipses 68 Million Mark, Dynamic Shifts in Offer Unique Marketing Opportunities for 2024