Why Brands Should Celebrate Hispanic Marketing Post-COVID
Despite the undeniable impact of COVID, I feel that we have many reasons to toast as we enter the final quarter of this year, both as a country, an industry, and as individuals. I for one am raising a glass to good health, the future, and to the 20 year anniversary of Captura Group, a pioneering Hispanic and digital-first marketing agency. I am proud to be in the company of a great team, doing outstanding work for great clients.
As a country, we have made great strides against COVID and I am optimistic that these gains will continue. The marketing industry also has plenty to celebrate as the economy has remained resilient and new pockets of opportunity for growth are emerging. One clear opportunity that brands must embrace for growth post-COVID is the Hispanic market. Although Hispanic Americans were disproportionately impacted by COVID from a health and economic perspective, Hispanics are culturally resilient and making a remarkable comeback from COVID. Here are reasons to be optimistic about Hispanic marketing as we look ahead.
Hispanic Buying Power is Massive and Growing: Between 2010 and 2019 Hispanic buying power rose 71% to $1.9 Trillion, and Hispanic real consumption grew 123 percent faster than Non-Hispanics. The sheer magnitude of Hispanic economic potential is reason enough to celebrate.
Hispanic Employment is Back: In September, unemployment of Hispanics was 6.3%, nearing pre-pandemic levels. This increase in employment levels is impressive given that Hispanic unemployment spiked to 18.9% at the beginning of the pandemic.
Hispanic Spend is Up: The proof is in the pudding. Across numerous industries, Hispanics are celebrating with their pocketbooks. Consider these notable examples.
- Automotive: During the pandemic, according to Polk data, vehicle sales to Hispanics grew 42%. That compares to 20% growth for the total market.
- Homes: The Urban Institute recently forecast that Latino home buyers will comprise 70% of home ownership growth from 2020 to 2040, serving as the growth engine of American home buying.
Hispanics are Celebrating Again: And as we approach the New Year, here is one category that is particularly relevant – Alcoholic Beverages. Sales of spirits to Hispanics grew 8% in 2020 at the height of the pandemic, and they are expected to grow even faster post-pandemic. This is great news for beverage marketers looking to enter the Hispanic market in time for the holidays, so we can all raise a glass together.
According to a recent study from H-Code, Hispanic consumption of alcoholic beverages before and after COVID-19 has remained strong. Hispanic drinkers are unique in that:
- They identify as social drinkers, mostly drinking with others for fun, and especially on weekends.
- The market potential is huge. Not only has the category been growing faster for Latinos than non-Hispanics, the opportunities cover most adult age groups, income groups and language subsegments.
- While beer and wine are preferred, Hispanics are open to discovery as they consume a broad array of drink types and brands including vodka, gin, rum, whiskey, scotch and other spirits.
- They are mixologists, with nearly two-thirds of Hispanics interested in creating new cocktails that they learn about from online ads, family and friends.
Best in Class Hispanic Measurement Tools: As marketers have become more and more data and results driven, we can thank my colleagues at the ANA’s Alliance for Inclusive and Multicultural Marketing (AIMM) for developing best-in-class tools to measure Hispanic marketing. Brands now have tools that demonstrate conclusively that reflecting the target segments’ culture in advertising content increases purchase intent three-fold and drives higher sales. Furthermore, the team at AIMM is making strong gains by partnering with data providers to accurately attribute sales growth to segment advertising.
Hispanics Are Culturally Resilient: Hispanics overcome adversity through positive attitudes, perseverance, ambition, and entrepreneurship. The capability to flourish, despite challenging events, is seen in individuals, families and, more broadly, the community because of their commitment to and emotional support of one another. Hispanic resilience has been well documented by the American Psychological Association, the Interamerican Journal of Psychology, and many others. Equally well documented are difficult journeys from home countries to the U.S. to strive for the American Dream. It explains how this population segment inevitably bounces back after major setbacks like recessions and, more recently, the consequences of COVID. This ability to flourish is what makes them ideal targets for marketers.
About Roberto Orci
Roberto is EVP, Strategic Growth at Captura Group – a Hispanic and digital-first agency with omnichannel capabilities across paid and social media, shopper marketing, influencers, linear advertising, and more. He is a marketing and advertising leader with extensive experience across numerous industries and a leading voice in diversity and inclusion as a business imperative. He can be reached at email@example.com