Newsletter

Hispanic Marketing

Hispanic Consumers More Positive, Receptive to Marketing

Source: The Center For Media Research

According to custom week-by-week data from Experian Simmons, reported by Univision Communications, 34% of Hispanics are optimistic about their finances in the coming year vs. 25% of non-Hispanics, and 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics. The report reveals consumers' reaction to today's economic climate from a total market and Hispanic consumer perspective.

Ceril Shagrin, Executive Vice President, Corporate Research, Univision Communications, observes that "The volatility of the current recessionary economy has created a need for more current week-by-week data...(to) capture changes in consumer behavior and purchasing patterns..." allowing marketers to take an in-depth look at real-time information... for a better understanding of the impact on consumers.

The results from the past 65 weeks, says the report, indicates that while the overall consumer mindset is increasingly negative, Hispanics are more optimistic in the period following the "meltdown," versus prior to September 29th, 2008:

  • 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics
  • Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and has remained constant since 2005, while non-Hispanics confidence rating has declined

Study results show contributing factors to why Hispanics are less affected by today's economic climate:

  • Only 45% of Hispanics have/use credit cards vs. 71% of non-Hispanics
  • Hispanics are 44% more likely to use cash to pay bills than non-Hispanics
  • Hispanics are almost 2x as likely to rent their home as non-Hispanics (44% vs 23%), and are less likely to be impacted by the high percent of mortgage foreclosures

The findings highlight Hispanics as a key target consumer for advertisers, says the report:

  • Hispanics are consistently more frequent shoppers than non-Hispanics (34% vs 29%)
  • Twice as many Hispanics are willing to pay for branded prescriptions as non-Hispanics (31% vs 15%)
  • Hispanics are 38% more likely to buy from an advertiser than non-Hispanics

Mediaweek says that advertising carries a lot of weight with Hispanics, who enjoy TV spots and remember touted products when shopping. Hispanics are 38% more likely to buy from an advertiser than non-Hispanics, seeing it as a source of information, not a nuisance. Univision notes that one casual dining space advertiser saw a sales lift of 23% by targeting Hispanics.