CPG/Retailers Hispanic Media Allocation Trends 2010-14 & Impact on Total Market Revenue Growth

CPG/Retailers Hispanic Dedicated Media (Spanish/Bilingual/English) skyrocketed between 2010 and 2014. This giant category, spending over $2Bn in Hispanic-centric Media in 2014, outpaced Top 500 advertisers’ peers in Hispanic Media allocation increases shifting 4% of English Ad Spend to Hispanic Media over the period. The study found that a principal reward of shifts from English Media to Hispanic Media comes in the form of increased Total Market topline revenue acceleration. There is a strong direct correlation (@ 99.9% confidence level) between companies’ shifts to Hispanic Media and overall U.S. revenue growth acceleration. Moreover, for every 5 points of shift from English to Hispanic media, companies on average experience a 1.75 points boost in annual revenue growth in the U.S.

The Multicultural Economy: 2015 Mid-year Report

In 2015, 9 in 10 of job entrants have been from Multicultural segments (vs. 8% WNH) adding 84% of the US incremental personal income. For every 1 WNH job entrant since 2010 there were 11 Multicultural job entrants. The US Civilian Labor Force (CLF) is now 35% Multicultural. The entire CLF expansion since 2010 came from Multicultural segments while WNH continued to exit the CLF. The 60% of all US job growth came from the Top 10 Total Market states

Where Is the Baby Boom Coming From? [INFOGRAPHIC]

The U.S. is seeing its first Baby Boom since the Great Recession started. The 2014 Baby Boom is different than what the US has seen previously as it is driven by older moms, it is increasingly Hispanic and Asian American. This Boom is also concentrated in 10 states where the vast majority of Boom babies are Multicultural. Yet, this Boom is a newborn and fertility rates among younger Millennials, especially Latina Millennials, are yet to improve.

Segmented Approaches May Go The Extra Mile For Wellness Opportunities in CPGs [INFOGRAPHIC]

“Healthier-outlook” consumers of different cultures differ in shopping preferences –their perceptions of “healthy” brands are so different that there are no commonalities among the top 5 breakfast Brands across segments. They also choose to shop in different retailers beyond Whole Foods & Trader Joe’s.
Segmenting by Wellness Segments & Scores based on healthy attitudes & good behaviors is a valuable growth planning tool, as Brands with higher Wellness Scores experience higher growth rates than brands with lower Wellness Scores.

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We guide clients to focus their resources toward the highest ROI growth opportunities by using advanced research techniques, sizing opportunity projectable of US segments, applying innovative statistical modeling and predictive analytics, which distinguish similarities, nuances and insignificances.

Leveraging client-side experience and consulting, we arm you with intelligence, drivers to purchase, and strategic pathways aligned with the highest ROI options for Total Market success.

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“Better for You” – Better for All of Us

While most Americans are chasing diets and making healthier lifestyle choices, Multicultural consumers are most likely to be generating faster growth for “Better-For-You” products. Yet, since cuisine and taste preferences are so embedded in our formative culture, ‘wellness’ is in the eyes of the beholder. In fact, the ‘healthier’ brands that are growing most rapidly are extremely different between Multicultural & White-Non-Hispanic segments. ♦ Presented @ Multicultural R360 ... Read More

Multicultural Millennial Digital Decision Journey [INFOGRAPHIC]

Millennials are intense users of digital & mobile in their Path-To-Purchase journey. Hispanics over-index Total Market in digital Evaluation actions but lag a little In-Store while African Americans especially over-index in the Experience phase.

Hispanic AdSpend Allocation Soars

The top 500 U.S. advertisers increased Hispanic media spend by $3Bn or 63% since 2010 jumping from $4.3B to $7.1B vs. only a 3% increase in English media Ad Spend. Consequently, the share of ad spend allocated to Hispanic dedicated efforts increased to an all-time high of 8.4% of U.S. top 500 marketers’ expenditures in TV, Radio, Print and FSIs vs. 5.5% in 2010.

Exploding Growth in Food: “Healthier With Tasty Hispanic Flair”

Brands that innovate by combining “Better for You” alternatives combined with some ethnic flair tend to achieve 3 to 5 times faster buyer growth than the mere Total Market (TM) 0.3% average. In other words, Healthy-minded consumers want to join in on the fun, and innovative brands are helping them bake the cake and eat it too…literally! The three big high buyer growth, high wellness score winners for Total Market are: Organic everything, Ready-to-serve dips, and Ethnic Ready to Eat. What this means is that growth will not come from just adding a jalapeño flavor to your product, but it MUST also be good for you (Organic Spicy Nachos Chips….please!).

The New Multicultural Economy: 2014-2015 Trends

The fuel behind the American Economy has changed as Multicultural segments continue to drive the growth of overall U.S. employment while White Non-Hispanics drop off the labor rosters. In fact, over a third of the U.S. labor force is now Multicultural, but more importantly, the entire increase in U.S. employment rosters since 2007 pre-recession levels has been generated by Multicultural segments. And, the future gets even more dynamic when one considers that the labor force participation rate for White Non-Hispanics is the only whose decline has accelerated in the last 3 years while that among Hispanics and African Americans has stabilized. Why does this matter to marketers?