The Growing Hispanic Market and Why They Are Important to Advertisers and Your Stations
July 25, 2013
Hispanics continue to be the fastest-growing segment of the total U.S. population, and the influence of this segment of the population is being seen in all aspects of the culture. Reaching these consumers is becoming an important aspect of many media buys.
Many of the top metros have experienced a significant influx of Hispanics migrating to their areas. The Hispanic population percentage increases have skyrocketed to double-digit growth in recent years. The 2010 Census counted 50.5 million Hispanics in the United States, making up 16.3% of the total population. The nation’s Latino population, which was 35.3 million in 2000, grew 43% over the decade. In 2012, Hispanics made up 53.1 million/16.9% of the U.S. population, according to U.S. Census Bureau: State and County QuickFacts.
The spending power of Hispanics in the U.S. has reached tremendous proportions. Companies (including high-end ones) need to pay attention to this growing population due to the growth in the upscale Hispanic consumer. Hispanics’ estimated purchasing power was $1.2 trillion in 2012, according to the Selig Center for Economic Growth. It is expected to reach $1.3 trillion by 2013, which is up more than 6 times the number ($212 billion) from 1990.
Radio Reaches Nearly ALL Hispanics
According to Arbitron’s recently released Hispanic Radio Today – 2013 Edition, about 95% of Hispanic consumers in the U.S. tune to the radio in an average week, underscoring a strong relationship with an important and growing listener segment.
As the Hispanic population grew in the U.S., the Radio market saw a need to provide various types of Hispanic formats/music in order to fit the different tastes of Hispanics, not only because of age and/or gender, but also because of their different origins. The formats have grown from for example, Mexican Regional to now include Spanish Contemporary, Tejano, and now the growing Spanish Sports stations. And, typically, the larger the Hispanic population in a market, the more Spanish language stations one can listen to. Because of this important need being met, Radio continues to be a valuable source of news and entertainment for Hispanics throughout the U.S.
Hispanics Are Loyal Listeners to Radio
Hispanics are heavy users of Radio and are extremely loyal to the stations that they listen to. Overall, Hispanic Persons 12+ in the U.S. spend an average of 13 hours and 10 minutes tuning to Radio each week (Arbitron, Hispanic Radio Today – 2013 Edition).
There is still a segment of the population in which the value of Hispanics needs to be proven. With an estimated 53.1 million Hispanics in the U.S., think about how much that equates to in a particular market. For example, in 2006 there were 443,600/10.7% Hispanics in the Washington, DC metro. In 2013, that number has grown 70% to 752,500/14.9%.
How could a company/advertiser want to ignore this important group (that also happens to be highly educated and affluent) to not only capture, but build brand loyalty with. For example, in 2012 a record seven-in-ten (69%) Hispanic high school graduates in the class of 2012 enrolled in college that fall, up from 49% in 2000, according to a Pew Research Center analysis of new data from the U.S. Census Bureau.
Getting Them to Advertise/Getting on the Buy
Hispanic Formatted Stations
It is a given that you will be capturing the Hispanic market, therefore your stations’ goal should be to prove to advertisers: 1. Why they should be marketing to Hispanics (if they are not already)? 2. Why your station? In your metro and/or a specific county show:
- The tremendous growth of Hispanics in terms of population percentage and raw numbers.
- There is a large reach of Hispanics who are tuning in to Radio.
- Hispanics are extremely loyal to Radio by presenting the TSL or AWTE.
- A large percentage of affluent Hispanics in terms of college-educated and residing in high-income households.
- Hispanics have a desirable qualitative lifestyle (i.e., buying cars and homes, attending events, purchasing groceries).
- Your station is a market leader and is strong in many of the components listed above.
For Non-Hispanic Formatted Stations
Here, it is a given that the buy is in play. Although you are not a Hispanic formatted station, there is still an approach your station(s) can take in order to prove you will also be valuable for the buy. It is found, but not limited to, that stations such as CHR, Adult Contemporary, Country and Classic Rock are very strong for attracting Hispanic listeners. For your station you will show that your station(s):
- Reach a large percentage of Hispanics in the metro.
- Rank among the top Hispanic formatted stations with Hispanic demographic groups.
- Not only reach Hispanics, but also reach a large percentage of Hispanic listeners who reside in English-Dominant households and that they rank as a top station in that category.
Hispanics Are a Valuable Consumer Group
While you read this, hundreds of thousands if not millions of the Hispanic consumers in your market are considering their purchasing options. According to a variety of sources (including U.S. Census Bureau, Selig Center and others) Hispanics tend to spend more on telephone services, men’s and boy’s clothing, children’s clothing, and footwear than other groups. And, Hispanics also tend to spend a higher proportion of their money on food, housing, utilities and transportation. They are tuning to radio. They are loyal to radio. And, they have the spending power. Your goal should be to influence advertisers (and those who have yet to advertise) to consider the Hispanic market and your radio station properties.
ALWAYS remember that Radio continues to be strong. Radio continues to grow or at least is still very consistent for reaching consumers and especially Hispanic consumers in the U.S. The reliable facts prove it. Now go WOW!!! your prospects by showing them how powerful Radio is for capturing a highly important segment of the population and why your station(s) reach them.
-Kathryn Boxill, Radio Sales Research Manager