Top 2023 Multicultural & Inclusive Marketing Learnings to Bring into 2024

As we welcome the new year, we at Santiago Solutions Group (SSG) have reflected on the accomplishments within our industry, the growing insights per consumer segment, and the technological advancements that have taken charge in our business landscape. There have been many unique learnings for all segments – through partnerships with brands and organizations, attendance at numerous industry-wide conferences, and more. Here are 6 key insights we’ve learned throughout the year 2023:

1. 1. Women of color, especially Latinas, drive spending and set new trends in the beauty industry where building brand trust and adapting to a more diverse audience becomes imperative.
      Multicultural segments were expected to reach $4.9 trillion in purchasing power last year[i], which will only increase in the future. With this growing power, they’re more discerning about brands than ever and are loyal to brands they trust. They act as trendsetters, and are responsible for some of the top trends today, especially when it comes to beauty and CPG products. A previous Nielsen report explains that Latinas spend an average of 19% more on beauty than Total US consumers[ii], as Latina consumers take pride in celebrating their culture through their appearance. Millennial and Gen Z Latinas are reshaping the beauty market through brand trust, relying on more inclusive brands like Rare Beauty, Hourglass Cosmetics, and Fenty Beauty which has a wider product range that caters to more skin tones.

1. 1. The power of culturally relevant ads, which also reflect diversity, equity, and inclusion, is clearer than ever, boosting purchase intent by an average of 5 times and trust by 16.
      The Cultural Inclusion Accelerator, co-founded by Carlos Santiago, continues to validate the importance of these attributes in brands’ advertising. Brands can also see up to a 16x lift in brand trust, 11x lift in brand perception, and 5x lift in consumer recommendation recommendation when comparing ads that score in the 4^th Quartile (CIIM™ & DEIT) and the 1^st Quartile (CIIM™ & DEIT). The Cultural Insights Impact Measure™ has surpassed one million ad evaluations, guiding marketers with the most broad-based diagnostic cultural and DEI tool toward ad effectiveness. SSG complements the diagnostic with custom qualitative and quantitative cultural insights discovery research fitting brands’ DNAs.

1. 1. Gen Z pushes music and other media towards greater diversity and inclusion, with 58% of Spotify users saying they like music that’s not in their native language, up from 50% in 2021.
      US Gen Z listens to music on average 40 more minutes a day when compared to the rest of the US population[iii], and streaming (with 3 in 5 Gen Z using Spotify in the last 30 days[iv]) has connected listeners to music from all regions and cultures into mainstream listening. Younger music listeners want to feel more connected and knowledgeable of the world around them, with 85% of US Gen Z Spotify listeners saying they’ve used either music or podcasts as a way to learn about cultures and experiences that differ from their own. Gen Z interest and appreciation for other cultures and languages have helped diversify the music landscape and create a better representation of genres like Reggaeton and K-Pop in Top Music charts, award shows, and music festival lineups. Additionally, 60% of Gen Z also find podcasts more trustworthy than other media because it’s representative of more diverse voices and points of view – further showing that this generation craves authenticity and a wider perspective when consuming their media.

1. 1. TikTok trends create a unique opportunity for brands to connect with Gen Z and younger Millennials, calling for marketers to stay relevant and knowledgeable of consumer desires.
      Social media’s youngest giant will have earned an estimated $13.2 billion in ad revenue at the end of last year.[vi] With more ads and sponsored content on the platform, it is vital that brands stand out if they want to capture their target audience’s attention. TikTok trends’ peak virality may be short-lived, but the impact on consumers can be lasting. Trends like #GirlDinner, creating your own Wes Anderson-style video, and men thinking about the Roman Empire have taken over the social app and allow users to connect with others on a wider scale while giving it a unique and personalized spin. Brands have also joined in on the fun with Popeyes adding a #GirlDinner item to their menu and United Airlines discounting flight prices to Rome. When trends include highlighting users’ favorite products, like #GirlMath and the beauty industry, there’s a powerful opportunity for collaborations and user-generated content that can increase the reach of a brand.

1. 1. 81% of Multicultural & Inclusive consumers believe brands should take stances on DEI. Marketers should research and consult Multicultural experts when dealing with the fear of consumer backlash.
      With a highly polarized society, many brands hesitate to speak out on social issues due to potential consumer backlash and boycotts. A very small but loud minority of anti-LGBTQ/anti-DEI customers attacked several brands, causing the LGBTQ community and their LGBTQ allies, totaling 50% of all consumers, to be upset with brands that cave in and step back from their commitments to the LGBTQ community and their LGBTQ allies, totaling 50% of all consumers, to be upset with brands that cave in and step back from their commitments of equality. However, according to the , Carlos Santiago (CEO) gives a reminder to look at the bigger picture. ‘For every consumer who opposes brands with multicultural and inclusive marketing practices, five consumers are motivated to support the brand.’ For a deeper dive into the study with more recommendations, see the latest from the ANA’s article ‘Equality & Inclusivity Drive Brand Growth and Offset Potential Risk’.
      AIMM-CIA Consumer Sentiment Study, Carlos Santiago (CEO) reminds us to look at the most likely source of revenue impact for brands. ‘For every consumer who opposes brands with multicultural and inclusive marketing practices, five consumers are motivated to support the brand.’ For a deeper dive into the study with more recommendations, see the latest from the ANA’s article ‘Equality & Inclusivity Drive Brand Growth and Offset Potential Risk’.

1. Marketers must account for data bias when adopting new technologies like generative AI.
   As AI and generative AI continue to become more accessible and integrated within business functions, many experts have discussed the hurdles and pain points surrounding the inherent bias AI has, such as machine and availability bias.[vii] Marketers have a responsibility to understand the benefits and limitations with using AI in Multicultural & Inclusive marketing. For more on AI, read the first of our on-going series ‘How Marketers are Utilizing Artificial Intelligence and Accounting for Data Bias’.

In conclusion, successful multicultural marketing hinges on building trust with the growing minority, leveraging cultural relevance, and embracing diversity and inclusion. Gen Z’s demand for diversity and TikTok trends underscore the need for brands to stay current, even when there is fear from potential backlash. The industry continues to change quickly, especially as new technologies gain accessibility, and it is now more important than ever for brands and marketers to have a full understanding of multicultural consumers when creating strategies that bring future growth. SSG has over 20 years of experience and as co-founders of CIIM & AIMM, we continue to guide brands to authentically resonate with consumers and achieve sustainable growth.

Sources:
[i] Affluent-Multicultural-Consumers-for-Newsletter.pdf (nbcuni.com)
[ii] The Hispanic Beauty Consumer, September 2022 | NielsenIQ
[iii] Gen Z in US spend more time with music – High Resolution Audio (hiresaudio.online)
[iv] SSG Analysis of MRI-Simmons Fall 2023 USA
[v] Spotify 2023 Culture Next Report US.pdf
[vi] TikTok Ad Revenue (2021–2025) [May 2023 Update] | Oberlo
[vii] Biases In LLM Generative AI: A Guide To Responsible Implementation (forbes.com)