Wednesday, March 16, 2011

California 2011: The Growing Latino Marketplace

The US Census Bureau just released data from the 2010 Census and it contains some interesting stuff.

Overall, California's population grew 10% to 37.3 million — just above the national rate of 9.7% and below the 1990s pace of 13.8%.  This growth is the slowest rise in the state’s history.  And for the first time since California became a state in 1850, it will not gain a Congressional seat. (The slowing in growth would seem to be due to the ailing California economy and an improving Mexican economy.  Fewer people moved North, and those Mexicans in Cal moved back South; reverse immigration.)

Ethnic Make-up
California still has more White people than any other racial type: 40% of the total, compared with 38% Latino and 13% Asian. Yet, since 2000, the Asian American population grew 31%, the Latino population grew by 28%, the second-fastest, the white population grew by a comparatively paltry 6.4%, and African Americans at an even slower 1.6%.

What's amazing is to look at the projections of ethnicity in California.  By 2040, the projections indicate that the population will be 50% Latino and 25% White.  The projection was done in 2004 and possibly did not account for the unexpected jump in the Asian population.  So it is possible that the Asian population will be more in the 15-20% range.

Notably, the direction of the trends in California are similar to the US as a whole, though greatly accelerated.  It is projected that the White and Latino populations will not approximate each other in the US until 2100.

Country of Origin
Nearly two-thirds of Hispanics in the United States self-identify as being of Mexican origin (Source: Pew Hispanic Center).  Data from 2004, indicates that California is closer to 84% Mexican, about 8% Salvadoran, and 2%  Guatemalan.

Geographic Movement
The population of the most-populous state continued to shift eastward, with inland Southern California counties showing the most explosive growth. In Riverside County, the population grew by 42 percent, and in San Bernardino, a sprawling county just to the north, it is up 19 percent. The counties make up what is known as the Inland Empire, an area that has gone from orange groves to exurbia with a population in excess of four million — more than the city of Los Angeles.

The five most populous incorporated places in Cal and their 2010 Census counts are:
  • Los Angeles, 3,792,621, which grew by 2.6 percent since the 2000 Census;
  • San Diego, 1,307,402, 6.9% growth;
  • San Jose, 945,942, 5.7%;
  • San Francisco, 805,235, 3.7%; and
  • Fresno, 494,665, 15.7%

Interestingly, the 2010 US Census included changes designed to more clearly distinguish Hispanic ethnicity as not being a race. That includes adding the sentence: "For this census, Hispanic origins are not races."

While the terms Hispanic and Latino are used interchangeably, they do have different connotations. The Latino National Survey found that 35% of respondents preferred the term “Hispanic,” whereas 13.4% preferred the term “Latino.”

Hispanic or Latino does not include Brazilian Americans and specifically refers to "Spanish culture or origin"; Brazilian Americans appear as a separate ancestry group.

The 28 Hispanic or Latino American groups in the Census Bureau's reports are the following: Mexican, Puerto Rican, Cuban, Dominican Republic; Central American: Costa Rican, Guatemalan, Honduran, Nicaraguan, Panamanian, Salvadoran, Other Central American; South American: Argentinian, Bolivian, Chilean, Colombian, Ecuadorian, Paraguayan, Peruvian, Uruguayan, Venezuelan, Other South American; Other Hispanic or Latino: Spaniard, Spanish, Spanish American, All other Hispanic.

Language Preference
The American Community Survey and the U.S. Census have amply measured language proficiency.
Data for 2008 reveals that only 63% of all Hispanics are proficient in English.  However, language preference varies depending upon where it is spoken (home, away) and by generation.

This is important because language preference (and hence acculturation) links to attitudes towards products, brands, social mores, etc. (See: "Garcia Trujillo Hispanic Consumer Insight Survey: Latinos’ Emotional Connection with Companies and Brands," 2011 and Nielsen's "Below The Topline: U.S. Hispanics and Acculturation," 2009.)

Hispanics Media Usage (from "The State of Spanish Language Media Industries: A Summary of Spanish Language Advertising 2010")
Overall, advertising revenue in Spanish language media declined 4.7% for 2009, according to Nielsen. A total of $5.4 billion was spent on advertising in Spanish language media in 2009, a decrease of $270 million from 2008. Declines in television, radio, magazines and newspapers were offset by a 32% increase in spending on Spanish language cable television. The majority of spending within Hispanic media remains in Spanish language TV, with Spanish language newspapers and magazines accounting for the majority of ad spending declines in 2009.

Total Hispanic Net Ad Spending by Year in Billions

A national survey of U.S. Hispanics, conducted by Nielsen, Univision and the Associated Press, examining media consumption indicates that Hispanics are still consuming Spanish language media, but they are also consuming increasing levels of English language or general market media. The study divided respondents into various levels of Hispanic acculturation based on primary language spoken in the home and frequency of Spanish language TV viewing. The study reported that overall, 66% of Hispanics watch some Spanish language TV and 86% watch some English language TV, across all acculturation levels.

Respondents in the lowest acculturation levels reported spending the most time with Spanish language media each day. The vast majority of Spanish dominant respondents (90%) watch Spanish language television and three fourths listen to Spanish language radio. Among English dominant Hispanics, 40% reported spending some time with Spanish language television and/or radio.

For online usage, across all acculturation levels, 47% reported spending time with Spanish language Internet sites each day, which was defined as using email, watching video or listening to music, while 39% spent time on English language Internet sites. Initial findings from the ComScore research study, "A Closer Look at the U.S. Hispanic Online Audience," found that about half (52%) of U.S. online Hispanics prefer English as their primary language, with 26% choosing bilingual and 22% preferring Spanish as their primary language. In regards to advertising, approximately 50% of Hispanic online consumers prefer Hispanic-targeted advertisements to be in English, while 28% have no language preference. Results suggest that Hispanics are less jaded and more receptive to advertising on the Internet, but online Hispanics expect to be entertained with advertising and content is more important than language ("That’s Entertainment; The Hispanic Expectation of Online Advertising, 2010").

Latino Marketing
Even as the 2010 Census data release found an increase in the U.S. Hispanic population, many marketers say they have no plans for increasing Hispanic targeted media budgets. In a Hispanic marketing trends survey of 9,300 senior marketing and advertising executives in February 2010, commissioned by Hispanic advertising agency Orci, the study found that 51% of respondents do not currently market to Hispanics and 82% of advertisers have no plans to increase existing efforts in the next year. Although the majority of advertisers (more than 8 out of 10) in the study agree that Latino Americans will have an impact on U.S. product and services in the next five years, they have not planned to increase Spanish language media budgets.  The survey also found that 78% of respondents do not use social media to engage Latinos despite the fact that Hispanics are the heaviest users of wireless access through mobile phones and laptops than any other ethnic group. (See: "Latinos and
Digital Technology, 2010".)

Latino AdvertisingImportantly, advertising intended for Hispanic consumers should be written in Spanish, not translated to Spanish from English.  In fact, you need to translate your message culturally, as well as linguistically, in order for it to be meaningful and effective.

A 2011 survey from Garcia Trujillo found that only 52% of Hispanics believe that US companies respect them.
This is not surprising given the lack of direct focus on the Hispanic market and the number of ad gaffes that have taken place.  A classic Spanish translation blunder from the past: When “translated” into Spanish, the “Got Milk?” campaign asked Latino consumers “Are you Lactating?”

Rather than "Exit Only" in-store signage from Starbucks reads, Exito Aqui" or "success here." (Actually not a bad mistake.)

A Brooklyn Spanish teacher lambasted Corona for its poor ad translation, the ad invites drinkers to "Más una fría que beer," which literally translates to "More one cold what beer."

Clearly marketers need to do a better job at genuinely focusing on this growing market, especially here in California.

Good Hispanic Marketing Websites


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