The Latino Influence Project Dr. Max Kilger, Chief Behavioral Scientist, Experian Marketing Services Holly McGavock, Director of Planning, Wing ©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Today’s Discussion Holly McGavock ► Director of Planning, Wing Dr. Max Kilger ► Chief Behavioral Scientist, Experian Marketing Services Agenda Hispanic consumer trends Latino Influence Project overview Key Findings What does it mean? Join us after the webinar for a TweetChat ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Tweet using the hashtag #LatinoInfluence 2 Hispanic population The Hispanic population continues to grow Already the largest ethnic/racial group in the United states, 16% of Americans age six and older identified as Hispanic or Latino in 2012, up from 14% in 2006. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 3 Hispanic population Young Americans much more likely to be Hispanic Nearly a quarter of Americans age 6 to 34 today are Hispanic compared with less than 10% among those age 50 and older. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 4 Discretionary Spending Spending on non-essentials Hispanic households control 10% of spending on non-essentials nationwide, but control 17% of discretionary spending in the Western U.S. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 5 Discretionary Spending Spending on non-essentials Hispanic households control fully 60% of all discretionary spending in the San Antonio Designated Market Area and 37% in Miami, but only 6% in Washington, D.C. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 6 Growth Markets Hispanic population growing coast to coast The Hispanic population is growing nationwide from Utah to Illinois to Florida ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 7 Experian Consumer Expectations Index Hispanic consumers consistently more optimistic Even during the recession, Hispanic consumers are 5% more optimistic than non-Hispanics, on average. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 8 Language preference by generation 3/4 of Hispanics prefer to speak at least some Spanish While first generation Hispanics are predominantly Spanish-dominant, second generation Hispanics are predominantly English-dominant, though many still speak some Spanish. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 9 Attitudes towards advertising Spanish ads matter, even among English-dominant Hispanics, even many English-dominant Hispanics, still have emotional ties to the Spanish language that carry over to companies that advertise in Spanish. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 10 Top indexing Shopping sites Tech sites, among others, skew to Spanish-inclined Companies like these may enjoy greater loyalty and respect from the Hispanic population—English- and Spanish-dominant alike—by providing visitors the option to experience their sites in Spanish. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 11 Social Media Downstream Traffic Latinos are influenced through social media Hispanic adults are more likely to follow their favorite brands and media on social networking sites. Below are some brands that are effectively leveraging social to capture an oversized share of downstream traffic from Spanish-inclined adults. JustFab 1.2 million fans ShoeDazzle 2 million fans Macy’s 9.3 million fans Best Buy 6.5 million fans ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. LEGO Worlds 3.1 million fans Barbie 6 million fans Aeropostale 8.3 million fans Toys “R” Us 3.4 million fans Party City 1.8 million fans Hollister 9.8 million fans 12 The Latino Influence Project ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 13 The Latino Influence Project: Move beyond anecdotes ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 14 Methodology The study uses Simmons data to measure over 48,000 respondents across 60,000 variables, including language preference, brand use, attitudes, lifestyles and even political outlook. The methodology utilized three sets of regression analyses using statistical software and Generalized Linear Model (GLM) logistic regressions on the subset of non-Hispanic residents. Within each regression the coefficient of the mean Hispanic density was tested for significance. The study ruled out the effect of additional variables that may lead to influence such as age, geography, income and presence of children at home. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 15 What we found Latinos are influencing the non-Latinos around them in many areas: Food, drink, sports and music Fashion/Appearance What we expected to find Cooking Technology Environment Health Travel Some surprises Advertising Work and Success ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 16 Some of our findings ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 17 Hispanics and Food, drink, sports and music ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 18 Findings: Food, drink, sports and music Non-Latinos living in high-density Hispanic areas are: 14.2 times more likely to eat enchiladas 8 times more likely to play soccer ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 5.5 times more likely to eat jalapeños 6 times more likely to listen to salsa & merengue 19 Food, drink, sports and music: Food for thought Sports and music-related events that are typically targeted to Hispanics might be an opportunity to connect with nonHispanics Mexican food is so mainstream that it is not even considered ethnic anymore. Could the same trend happen for other regional specialties and products? ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 20 Hispanics and fashion/appearance ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 21 Findings: Fashion and appearance Non-Latinos living in high-density Hispanic areas are: 84% more likely to say they are usually the first among their friends to try new clothing styles 94% more likely to say they no longer wear a lot of the clothes they wore a year ago because they have gone out of style 200% more likely to say they like to stand out in a crowd 46% more likely to say they like to make a unique fashion statement ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 22 Fashion and appearance: Food for thought Non-Latinos in Hispanic-dense areas may care more about how they dress and look. ► Beyond the beauty industry, this impacts health and wellness, education, and other areas. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 23 Hispanics and technology, mobile and internet When it comes to technology, Latinos: Lead the way in smartphone and tablet adoption Spend more time watching video online Over-index in most social media sites (Facebook, twitter, etc.) Why? A younger population Staying connected Price Innovator status ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 24 Findings: Technology, mobile and internet Non-Latinos living in high-density Hispanic areas are: 2.3 times more likely to use their cell phones to get the information they need. 71% more likely to keep up with developments in technology. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 2 times as likely to say texting is just as meaningful as an actual conversation. 2 times more likely to say the internet has become their primary source of entertainment. 25 Technology, mobile and internet: Food for thought Online and mobile should be considered as key communication channels when targeting Hispanics and the non-Hispanics living among them Consider ways to provide these consumers the information they are searching for, but also entertainment via mobile/online channels ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 26 Hispanics and the environment When it comes to the environment, Latinos: Are more likely to say they are concerned with the environment than their non-Hispanic counterparts Come from a tradition of reducing, reusing and recycling Why? Economic necessity Relationship with nature/collectivism Children learning about recycling in school ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 27 Findings: The environment Non-Latinos living in high-density Hispanic areas are: 3.6 times more likely to say they make a conscious effort to recycle. ● 2.1 times more likely to say they are worried about pollution and congestion caused by cars. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 2 times more likely to say all products that pollute the environment should be banned. 2 times more likely to say they buy paper products that are recycled. 28 Environment: Food for thought Green packaging efforts, an area of key importance for Hispanics and the non-Hispanics living around them, should be a priority for brands trying to position themselves as green-friendly. Consider leveraging the ways Hispanics have been reducing, reusing, and recycling as education and inspiration for non-Hispanics ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 29 Findings: Hispanics and health/nutrition When it comes to health, Latinos: See good health as a balance between spiritual, physical, and emotional worlds Are more likely to turn to alternative medicines such as home remedies or herbs Look to informal sources of advice for medical information Why? Relationship with nature/spirituality History of folk medicine Distrust in the scientific/prescription medicines ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 30 Findings: Health and nutrition Non-Latinos living in high-density Hispanic areas are: 2.1 times more likely to prefer alternative medicine to standard practices. 2.2 times more likely to trust homeopathic medicine. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 2 times as likely to say their friends ask for their advice about health and nutrition. 81% more likely to believe that vitamins/minerals should be taken for long-term benefits. 31 Health and nutrition: Food for thought Health and wellness providers and marketers should keep in mind that non-Latinos living in Latino-dense areas may be looking for and expecting a more holistic approach to health. Consider messages that reflect this mindset, which may be more relevant than messages that use a more scientific approach. ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 32 The Latino Influence Project: Cultural Diffusion Cultural diffusion can occur when two cultures live in close proximity to each other (e.g. propinquity) Traditionally marketers have thought in terms of Hispanics adopting cultural elements from their U.S. host culture But cultural diffusion is a two way social process…and the significant growth in the Hispanic population means more non-Hispanics are living in higher density Hispanic neighborhoods When non-Hispanics live in higher density Hispanic neighborhoods, Hispanic cultural values and consumer consumption patterns including media, products, brands, music diffuse to these non-Hispanics ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 33 The Latino Influence Project: What does it all mean? The Hispanic market is growing, and their influence will only increase Rethink what we mean when we talk about a “general market” campaign Reconsider who your “influencers” are Focus on Hispanic markets as hotbeds for cultural activity ► The next big Hispanic market may be in a place we don’t typically think of as Hispanic ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 34 Question & Answer ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 35 Taking it Further Key links and contacts www.experian.com/simmons www.latinoinfluenceproject.com John Fetto, Senior Marketing Manager 212-749-3162 [email protected] Andrew Speyer, Managing Director 212-500-9430 [email protected] ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 36 Join the Conversation! TweetChat Join us for a short TweetChat directly following this webinar Follow these simple steps: Go to http://www.TweetChat.com Use the hashtag #LatinoInfluence Log into your twitter account Participate in the conversation ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 37 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 38
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