The new American mainstream
Hispanics are forecast to represent 28% of the US population by the year 2060. But although this group is on its way to becoming the second largest in the US — followed by Asians — the investment of the biggest brands in the Hispanic market is not growing at the same pace.
“Not all advertisers understand the financial value that this segment offers their business. Some keep trying to ‘optimise’ their efforts by adapting their general-market messages and the results aren’t always that effective,” says Aldo Quevedo, principal and creative director at Richards/Lerma.
But multicultural markets, especially Hispanics, will continue to evolve. “They are a vital growth area for almost all business categories and remain underleveraged by a majority of marketers,” says Diego Yurkievich, chief creative officer of Conill. “Groups like the ANA’s Alliance for Inclusive and Multicultural Marketing [AIMM] illustrate how leading marketers are carefully examining best practices to realise the fullest potential of multicultural markets.”
Although the panorama has changed, new challenges arise. “Brands now face the challenge to their growth of doing more with less. This represents our biggest opportunity — showing brands that we can help them meet that challenge. It seems to me that agencies specialising in the Hispanic market are positioned to help achieve both goals: we’ve always had to do more with less and our consumers represent growth in the US,” says John Gallegos, CEO of United Collective.
Counting on expansion continues to be the name of the game for Hispanic executives. “We are seeing more brands interested in investing in the segment and some brands that have been historically reducing their Hispanic marketing investments are reversing this trend. Why? Because a one-size-fits-all message translated to Spanish, managed by their GM [general market] agencies, doesn’t work,” says Isaac Mizrahi, co-president and chief operating officer of Alma.
There are many agencies trying to expand their business to include Hispanics, but few do it with any real knowledge of this market. “There’s a huge cultural opportunity that needs to be properly addressed. Our team is composed of a diverse group of Hispanics living in the US. We know the target because we are the target,” says Tanya De Poli, general manager of Ogilvy Miami.
• Read the full article in the Lions Daily News, published here online, and in print throughout the city of Cannes, during the Cannes Lions International Festival of Creativity, from June 16 to 21