Author: Annette Malave, SVP/Insights, RAB
$1.5 trillion. That is the buying power of the Hispanic consumer – the largest minority market in the U.S. According to the Selig Center for Economic Growth, this group’s economic clout has grown 203% since 2000, which makes it one of the fastest growing consumer markets here in the U.S. This group represents nearly 18% of the country’s population.
Advertising to ethnic audiences was once considered an afterthought. However, as the buying power of Hispanic consumers continued to increase, its importance as a target audience for advertisers grew.
Among Hispanics, there are passion points or connections that align with the culture – family, music and food. Perhaps that is why Grocery is one of the top categories where Hispanics are more apt to spend their money, according to the Selig Center. Additional categories that capture this segment’s spending are clothing, cellphone services and vehicle financing.
When it comes to media usage, radio is the top medium to reach this group, tuned in to by 42.3 million Hispanics weekly – and used more than any other media option.
Among those categories that Hispanics focus more of their dollars on, according to Scarborough radio reaches Hispanics 18+:
- Who spent $200+ on groceries in the past week – 92%.
- Who purchased any children’s, men’s or women’s clothing this past year – 93%.
- Who plan on purchasing a wireless/cellphone service this year – 92%.
- Whose household plans to buy a new vehicle or currently has an auto loan – 92%.
Today, the environment in which the ad runs is just as important as the message within the ad. Hispanic radio listeners use radio for both their mood and information, which makes for the perfect option for any advertiser’s communication. So what do Hispanic radio listeners think about radio? According to GfK MRI data:
- 48% state that radio puts them in a good mood.
- 45% tune in to radio for relaxation.
- 40% use radio to stay informed and up to date.
- 38% tune in for just pure entertainment.
- 35% see radio as a way to escape.
- Connecting with consumers is important to all advertisers. Connecting with Hispanic consumers with a buying power of $1.5 trillion is even more important. As a truly mobile medium, broadcast radio can help drive that all-important connection.