The growth in Hispanic purchasing power between ’00 and ’07 was 80% greater than that of non-Hispanics. It’s a growing list of drool-worthy stats like those that have an increasing number of marketers honing in on the group.
Eclipse Marketing just launched a Hispanic Marketing Division specifically to assist cable ops and program nets. Leading the group is MTVN/Univision vet Karen Habib. Univision teamed with Experian Simmons for extensive data on Latinos to present to advertisers.
What Univision and Experian Simmons found is that while many American consumers are feeling glum about the economy and reining in spending, Hispanics are more optimistic. 29% are more positive about the US economy in the coming 12 months (vs 21% non-Hispanic), 34% are optimistic about their finances in the coming year (vs 25% non-Hispanic); and the Hispanic average consumer confidence rating is 11% higher than non-Hispanics, and has remained constant since ’05, while the non-Hispanic rating has declined.
So why the disparity? Chalk some of it up to less plastic (thus less debt burden). Hispanics are 44% more likely to use cash to pay bills than non-Hispanics. There’s also less stress about potential home foreclosures as the group is almost twice as likely to rent their home as non-Hispanics (44% vs 23%). Following the economic meltdown, Hispanics have rebounded stronger. And many are now looking to buy a new home, or their first home. Experian found that following the economic crash, 7% of Hispanics still plan on buying a home in the next 12 months. Only 3% of their non-Hispanic counterparts said the same.
A few other findings to keep in mind as companies approach advertisers:
· Hispanics are consistently more frequent shoppers than non-Hispanics (34% vs 29%)
· Twice as many Hispanics are willing to pay for branded prescriptions as non-Hispanics (31% vs 15%)
· Hispanics are 38% more likely to buy from an advertiser than non-Hispanics