iProceed's 3Es of advertising: Traditional advertising is in danger
Disturbing trends emerge for advertising targeting 18-34 males
The niche approach in television advertising
We have traditionally thought of television as less targeted than websites. The two platforms are just quite different. However, the demographic trends (particularly with the speed at which consumers are moving away from television to Internet and video games) are forcing television and media companies to launch more niche-focused stations and programming.
Hispanic youth: An attractive marketing and advertising niche
If you think all Hispanics shop only in Wal-Mart and watch Spanish novellas (or soap operas), then you probably live in the Stone Age. Here are some interesting statistics from the Bureau of Economic Analysis (and data crunched by HispanTelligence®):
- U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as much as $1 trillion by 2010.
- U.S. Hispanic purchasing power posted a compound annual growth rate of 7.7%. The rate of growth is nearly three times the overall national rate of the past decade.
- Higher paying managerial and professional jobs are the fastest-growing occupational categories for Hispanics.
- California and Texas account for more than 34 percent of all Hispanic purchasing power and nearly half of the entire U.S. Hispanic population.
Latest developments in marketing and advertising to Hispanic youth
According to the Census Bureau, the 18-34 Hispanic segment is approximately 12 million, ready to spend the money that they are now earning as young professionals. No wonder that it is attracting a lot of attention from businesses. Believe it or not, Hispanic youth is also perfectly bilingual and bicultural. So they not only like to watch an occasional soap opera from Mexico, they also love watching English language programming that is customized for their taste and interests. In a push to provide marketing and advertising opportunities to large number of businesses that want to reach this rapidly growing 18-34 segment (which many of them already do through advertising on Telemundo and Univision channels), two new television channels are here. SiTV is already operational and VOY Network is coming in Fall 2004.
How can you reach Hispanic youth through marketing and advertising?
- Please don't be cheap by simply translating your English copy into Spanish and using the same visuals/film. If you want to do it right, leave the English advertising for the English audience and develop new ones for the Hispanic audience. Also, work with a Hispanic advertising agency that knows this market well.
- Follow iProceed's 3Es (entertainment, education, and embedment) of marketing and advertising. This target segment watches a lot of television and is fairly savvy in Internet use as well. So don't think that they will watch some dumb ads on television simply because they are Hispanized.
- Develop a completely new strategy to reach Hispanics. As I said above, just tweaking your Anglo-consumer strategy will not suffice. You will need to start from scratch.