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Unlocking the Power of Hispanic Heritage Month: A Guide for Advertisers

PUBLISH DATE: 13 September 2023
Hispanic Heritage Month

With $2.5 trillion worth of buying power, the Hispanic market is no longer a niche market, but a ‘new majority’.

The Hispanic population currently stands at 62.65 million which is nearly 20% of the U.S. population. Projections suggest it will reach 111.22 million by 2060, playing a major role in U.S. population growth.

The Hispanic audience in the United States is a diverse and affluent group that is quickly becoming one of the most influential markets. However, many advertisers have yet to tap into this market. 

By understanding the diversity of the Hispanic community and what matters most to them, advertisers can connect and engage with this valuable audience. This is an essential strategy for brand growth.

Hispanic Demographics: A Growing Influence

The Hispanic and Latino demographics saw the fastest growth, with 2.4 million households earning over $150k annually, a 13% increase. They also hold a significant presence in the income bracket just below, with 3.6 million households earning between $90k and under $150k, comprising 14% of that category.  

As a group, U.S. Hispanics’ GDP is expanding faster than those of Germany, the U.K., France, and Japan.

Hispanic and Latino Americans hail from a wide array of backgrounds, encompassing countries in Latin America, the Caribbean, and Spain. Within this community, one can find a mosaic of cultures, languages, traditions, and religions. This multifaceted diversity is joyously celebrated throughout the month with a kaleidoscope of festivals, music, dance, art, and cuisine.

However, when it comes to brands and advertisers, there seems to be a common oversight in their approach of targeting them in spite of so much potential.  This overlook could be due to the challenges faced by the advertisers. 

Here are some cultural insights that are effective in increasing enjoyment and engagement with your ads among U.S. Hispanics. 

1. Celebrities and influencers: Charismatic celebrities and influencers can help you introduce your brand or products to Hispanic consumers. When choosing an endorser, make sure they are a good fit for your brand and that their values align with yours.

2. Tap into Music and cultural affinity: Use music and other cultural touchpoints to connect with Hispanic consumers on an emotional level. This could involve using Spanish-language music, featuring Hispanic artists, or incorporating cultural symbols into your marketing materials.

3. Create escapist marketing campaigns: Hispanic consumers are drawn to marketing campaigns that offer a sense of hope, adventure, or nostalgia. This could involve creating a fantasy world, telling a heartwarming story, or tapping into a shared cultural experience. 

4. Family-focused: Family is a central value in Hispanic heritage. When marketing to Hispanic consumers, make sure to highlight the importance of family in your messaging. This could involve showing families spending time together, celebrating holidays, or overcoming challenges.

5. Community: Hispanic consumers are more likely to support brands that are involved in their communities. Get involved in local events, donate to Hispanic charities or sponsor Hispanic-focused organizations.

Challenges and Pitfalls in Multicultural Advertising

Multicultural advertising also presents unique challenges. Here are some common pitfalls and potential obstacles that businesses may encounter, such as –

Overgeneralization – The Hispanic community is a diverse community in itself. While targeting the community advertisers often opt for a “one-size-fits-all” approach and do not acknowledge that individuals within the same Hispanic ethnic group can vary significantly.   This results in an overabundance of cultural touchstones from one country and alienating another country in the process. Or, more drastically, targeting Latinos and calling them Hispanic and vice-versa. 

Language barriers pose a significant challenge when it comes to advertising to the Hispanic community. This is because the community comprises various Spanish dialects, bilingual individuals, nuanced cultural differences, varying levels of acculturation, and flexible language usage. Mere translations may not effectively convey the intended message and can even lead to offensive content.

Understanding the cultural norms, values, and social dynamics of the target audience is essential for creating advertisements that resonate and hold meaning for them.

Additionally, multicultural advertising should prioritize accurate and inclusive representation. This means showcasing a variety of voices, perspectives, and experiences in advertisements.

So, how can advertisers overcome these challenges?

Tailored Solutions to Reach Hispanic Heritage Consumers with Hyper-Contextual Targeting

Even well-crafted creative campaigns targeting the U.S. Hispanic heritage community may falter if they are not strategically placed where the audience can easily access them.

In today’s advertising world, where businesses rely on first-party and contextual data to reach their target audiences, it is important to partner with organizations that have valuable insights into the Hispanic community. These partners should have data on the community’s various segments, individual consumers, and interest trends. They should also have the technology to activate this data and deliver relevant marketing messages to Hispanic consumers. 

Silverpush presents cutting-edge AI technology, Mirrors, which can play a pivotal role in precisely targeting the multicultural audience. The next-gen AI technology is the first-in-video visual and audio key contexts identifying technology that uses a combination of contextual signals to reach your most relevant consumers at the right moment/context. 

The advanced AI technology identifies personas using demos, cultural signals, core values, and content preferences. We analyze 20+ languages and entertainment choices (e.g. Telenovelas, movies) in Spanish & English.  Furthermore, their passion points are identified by analyzing the activities and areas of life of people having deep interest & priority when spending their time, money, and attention. E.g., family, emotions, sports, music, food, and important dates. 

Also Read: Silverpush Paves the Way in Revolutionizing Contextual Advertising with Generative AI Technology

What Does Hyper Contextual Targeting For Multicultural Advertising Do for Your Brand?

Relevant advertising is what users want. They want to see ads that are relevant to their interests and needs at the moment. Inclusive advertising, when done right, can build trust, and loyalty, and drive purchase intent.

multicultural insights

Conclusion

It’s clear that U.S. Hispanic heritage is a massive force, driving the economy and influencing the future. As the fastest-growing adtech company, Silverpush has the products and capabilities to help brands engage with America’s growth engine in culture, language, and across touchpoints. From unparalleled ratings momentum to the recent launch of the biggest Spanish-language streaming brand in the world.

The Power of Multicultural Advertising: Reaching Diverse Audiences

PUBLISH DATE: 24 May 2023
multicultural communities

USA minority groups buying power is expected to rise from 4.2 trillion in 2020 to 7 trillion by 2025. With this significant growth, brands cannot afford to overlook the importance of targeting multicultural communities in their advertising strategies.

In this blog, we will explore why brands should focus on diversity, how they can effectively reach multicultural communities, and the benefits of doing so.

Why is Multicultural Advertising Important?

Brands aspire to capture the hearts of millions and establish a lasting brand recall as their primary objective. Yet they miss out on a larger portion of the audience.

Multiculturalism has played a significant role in this endeavor, showcasing its positive impact on our daily lives. This can be observed through the fusion of diverse cultures in ethnic enclaves found in metropolitan areas and the availability of various ethnic cuisines in supermarkets. One of the driving forces behind the market expansion in the past decade has been the multicultural consumer market, currently valued at over $5 trillion.

The corporate expansion serves as a pivotal factor in this growth, benefiting all brands. As markets expand, more consumers enter the fray, leading to increased consumption and fostering innovation by introducing new products. This, in turn, promotes higher usage and the potential for premium pricing. When executed effectively, this generates greater revenue and income, consequently enhancing purchasing power.

A renowned brand from the FMCG industry had a boost in sales in North America. Interestingly, a larger portion of their sales was accounted for by diverse communities of the region.

US population diversity

What is Multicultural Advertising?

Immigration encompasses more than mere physical mobility; it represents the dynamic exchange and interplay of diverse cultures. Each individual carries the bedrock of their identity, fostering the emergence of vibrant and multicultural communities.

Expanding Horizons: Beyond the LGBTQ+ Community

While many advertisers focus solely on the LGBTQ+ community when it comes to multicultural advertising, it’s essential to remember that diversity encompasses various ethnic groups. In the United States, Black, Hispanic, Asian, Pacific Islander, Native, and Indigenous Americans makeup 40% of the population. It is crucial for brands to recognize and target the entire multicultural communities to maximize their reach and impact.

How can Brands Reach Multicultural Communities?

The advertising arena is under evolution. The phase-out of third-party cookies has inclined advertisers towards contextual advertising. Since cross-culture targeting poses a set of challenges that are hard to overcome with conventional targeting methods, contextual targeting methods can be beneficial.

Some of the challenges are:

1. Cultural Sensitivity: Multicultural communities are sensitive towards their presence. Brands must understand their diverse cultural nuances and sensitivities. They must ensure that their message resonates with the viewer.

2. Language Barrier: Brands need to ensure that their message is tailored well according to the specific group they are targeting. Understanding the intricacies of each culture is crucial for creating effective campaigns that resonate with the target audience.

3. Limited Reach and Targeting: Traditional advertising channels often need to be improved when it comes to reaching specific multicultural audiences. Targeting these communities through one or more channels can be complex as they may cause hindrances in targeting methods.

To overcome these challenges, advertisers can leverage Silverpush’s advanced AI technology, Mirrors. This offers enhanced brand safety and suitability, allowing advertisers to reach their desired audience contextually and through different platforms.

YouTube

To begin with, the best way to reach the audience is through video advertising. Did you know, 82% of the global content consumption is from videos. With contextual video advertising, brands can easily tap into the audience as the AI offers the first in-video detection based on the identification of celebrities, brands, objects, places, actions, on-screen text, and audio for granular targeting.

Open Web

Conventional targeting created voids that further created challenges for brands to reach their desired audience. But by analyzing the page’s content in real-time and combining relevant information, it provides personalized advertising, filling the gaps.

Meta

Sentiment analysis and NLP tools search countless Facebook pages to find the most contextually appropriate video material. Mirrors target high-performing sites by correlating context relevance with engagement metrics (likes, shares, comments, and subscriptions).

Brands can effectively reach their audience while respecting their privacy by utilizing contextual advertising, which capitalizes on the reader’s existing interests and aligns ads with the content they consume. This contrasts with behavioral targeting methods that can leave users feeling monitored and followed.

Conclusion

According to a survey, 64% of consumers agreed that they engaged with a brand after seeing an ad that they considered diverse or inclusive.

Multicultural communities have long-awaited recognition and representation, and they can be found across the globe. One prominent example is the city of New York in the United States. Known as a melting pot of various cultures, people from all over the world call New York home. Its remarkable diversity is one of its greatest strengths and contributes to its status as a leader in creativity and innovation. Similarly, Toronto in Canada and London in Europe are home to diverse communities.

When it comes to advertising, it is crucial to recognize that multicultural communities should not be targeted as a one-time or occasional effort. Instead, brands should strive to engage with these communities consistently throughout the year. These diverse communities represent the future audience, and establishing a meaningful connection with them is essential to staying ahead of the curve in an increasingly diverse world.

By understanding and embracing the multicultural nature of society, brands can tap into new markets, foster inclusivity, and build lasting relationships with diverse audiences.