Elements welcomes our Hispanic marketing partner — and long-time friend — Wilson Camelo for his insight on multicultural marketing.
It should be no surprise by now to any marketer that demographics in the United States are changing. We already see the realities of the ‘new America’ as Hispanics and non-Whites are now a majority of people under age 16, according to figures released in June by the U.S. Census Bureau. In Connecticut, nearly 45% of kids under 5 are of a non-White ethnic / racial group.
This rapid demographic change is being led largely by the Hispanic population, which doubled in the U.S. between 2000–2010, and is expected to double again when results of the 2020 Census are released early next year.
This transformation isn’t relegated solely to population shifts; the combined purchasing power of minorities stands at nearly $4 trillion, according to the University of Georgia’s Selig Center for Economic Growth.
While these seismic shifts in population and purchasing power are undeniable, marketing / advertising spending directed to these customer segments is not following suit. For example:
- Hispanics make up 18% of the population, but only 3.6% of advertising dollars are allocated to reaching them
- Blacks make up 13.4% of the population, but only 1.4% of advertising dollars are allocated to reaching them
- Asian make up 5.8% of the population, but only 0.1% of advertising dollars are allocated to reaching them
Reaching vs. Connecting with Customers
The question then is: why are brands and companies allocating such small percentages to the customer segments that are representing the fastest growth today, and for the future?
Some reasons may be systemic, such as the fact only 12% of Chief Marketing Officers identify as either Hispanic, Black or Asian. Others may be agencies convincing their clients they are “reaching” multicultural segments through general market advertising and marketing initiatives. After all, minorities consume English-language media, right?
While this is true, as marketers we need to understand the difference between reaching a target audience and connecting with them. A true connection with a customer comes from understanding them — and in the case of minorities, how they may differ culturally — and integrating those insights into our marketing communication.
This process is called transcreation and it differs greatly from translation in that it’s not focused on what language to communicate in, but rather, on key insights and determining cultural relevancy of your message so it resonates with them.
Adapting to the New Demographic Landscape
How can brands and companies begin to adapt for the ‘new America’ where Whites will be the minority? Here are a few tips:
Eliminate preconceived notions: Start by recognizing marketing to minorities is as involved as marketing to the general market. Recognize that changes need to take place within your organization to prepare for the ‘new America’. Evaluate where you may need to supplement your capabilities by collaborating or subcontracting an agency that specializes in multicultural marketing
Transcreate, don’t translate: Effective multicultural marketing is not as superficial as simply translating messages developed with insights of the general market for use in multicultural marketing, or just swapping out images to include people of color. Culture plays a significant role in how any group decides to purchase or consume a product or service. This is as true as the difference between marketing to Whites and Hispanics as it is in marketing to men and women, straight and LGBTQ+, young and old, etc. In many ways, all marketing is cultural.
Reassess your customer: Now may be a perfect time to take a fresh look at your customer and potential customer market. Chances are who you thought your customer is has shifted with the population, and your customer base is more multicultural than you think. This is especially true for brands that are looking to reach younger populations since the younger the audience segment, the more multicultural it is.
Allocate budgets to your audience: Many companies think they don’t have a budget for multicultural marketing. Rather than spending all your budget to reach general market audiences, begin to allocate some to reaching your changing potential customer base, which is becoming more and more multicultural.
Walk before you run: If you are not ready to take a full plunge, start by conducting a test in a market segment, a geography or across one product line. Since the minority population and purchasing power is driven largely by the Hispanic market, Hispanic marketing is the best place to begin.
Don’t be afraid of making mistakes: In today’s climate of racial justice, many brands are paralyzed by fear of mistakes and potential backlash. However, if efforts are genuine and transcreated, the chances for success are high. Again, consider collaborating with experts in multicultural marketing that can help you navigate the path forward.
Don’t expect overnight success; building a strong and trusting relationship with new customer segments takes time. The good news is chances are your competitor is still on the sideline — start soon and stay ahead!
— Wilson
Wilson Camelo is a marketing and public relations expert who specializes in the Hispanic customer segment. His years of experience have helped a wide variety of brands / companies reach diverse audiences and grow their followings in our changing demographic landscape.
