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| Andy Czech |
You’ve probably heard it before: the US Hispanic market is an important segment for brands to engage with. But in a landscape full of data and competing priorities, it’s easy for even the most important opportunities to become background noise.
That’s why it’s important to revisit this conversation with fresh eyes and understand what’s at stake. The Hispanic market is a dynamic force where cultural relevance translates directly into ROI. It’s not just about reaching a demographic; it’s about truly connecting with a vibrant community eager to see itself represented.
The US Hispanic market has become an economic powerhouse that brands cannot afford to ignore. However, some companies make the mistake of believing that targeted marketing to this demographic is unnecessary, relying on one-size-fits-all campaigns. This approach overlooks the unique cultural nuances, preferences, and behaviors that characterize Hispanic consumers. The data strongly supports the need for targeted outreach that specifically addresses this group, making it essential for brands seeking long-term economic success.
The Growing Influence of the US Hispanic Market
Hispanics are driving US population growth, responsible for 71% of the increase between 2022 and 2023, according to the US Census Bureau. As the second largest ethnic group in the country, their purchasing power reaches an impressive $3 trillion, as reported by the Latino Donor Collaborative. With the Hispanic population expected to reach 111 million by 2060, comprising 28% of the US population, this market is one of the most important consumer segments in the country.
Despite these numbers, many brands fail to connect effectively with Hispanic consumers. A study by the Hispanic Marketing Council found that 77% of US Hispanics feel that brands do not understand or resonate with their culture. This disconnect is a missed opportunity, as culturally relevant marketing has a proven impact on consumer behavior.
The influence of Hispanics goes beyond numbers, significantly shaping popular culture through music, food, and sports:
● Artists such as Bad Bunny, Maluma, and Shakira have achieved a wide global reach, reflecting the impact this culture has had. Recently, Bad Bunny became the first Latin artist to have over 15 songs with over 1 billion streams on Spotify.
● Traditional brands such as Tajín are increasingly sought after as partners by iconic American companies such as Pop-Tarts, Slim Jim, Bud Light, and Hellmann’s to gain relevance in this consumer segment. According to market research firm Circana, revenue from ethnic food aisles reached $8.84 billion for the 52 weeks ending June 16, 2024.
● Hispanic fans are driving new trends in sports, with international soccer viewership on the rise. According to Nielsen, this year’s Copa América and UEFA Euro 2024 Finals drew some of the highest US viewership in history. Growth extends to major events, including the Super Bowl, NBA Finals, and Women’s NCAA Championship, which saw a 354% increase in Hispanic viewership between 2021 and 2024.
The Power of Cultural Relevance
Cultural relevance is essential for effective marketing to the Hispanic community. Although Hispanics in the US come from diverse backgrounds, they have a strong sense of cultural pride and a desire to see their identity reflected in the brands they support.
Brands that invest in culturally tailored campaigns are seeing huge returns. Nielsen reports that companies with culturally relevant advertising experience a 3x increase in brand trust among Hispanic consumers. This trust fuels brand loyalty, with 54% of Hispanic consumers more likely to buy from brands that understand their culture.
Misconceptions About Assimilation
Some argue that assimilation into mainstream American culture reduces the need for targeted Hispanic marketing. However, the data suggest otherwise. Although many Hispanics are bilingual and bicultural, they maintain strong ties to their heritage. The Pew Research Center found that 85% of US Hispanics feel a strong connection to their cultural roots, and 78% believe it is important to preserve their culture for future generations.
Language is an important aspect of this cultural connection. Although many Hispanics are fluent in more than one language, Spanish remains an important part of their identity. In fact, 72% of Hispanics say that speaking Spanish is important to their Hispanic identity.
The Competitive Advantage
Brands that ignore the Hispanic market risk falling behind competitors that prioritize this demographic. Companies like PepsiCo, McDonald’s, and Procter & Gamble have long recognized the value of culturally relevant marketing and reaped the rewards. For example, McDonald’s continues to engage with the Hispanic community through Spanish-language advertising and sponsoring cultural events, leading to strong brand loyalty and increased sales.
Conversely, brands that fail to connect with the Hispanic market may struggle to stay relevant in an increasingly diverse marketplace. The cost of ignoring this segment is more than just lost sales; it can also damage the brand’s reputation. In today’s socially conscious environment, consumers are quick to call out brands that do not reflect their values or recognize their identity.
The Path Forward
The evidence is clear: targeted outreach to the US Hispanic market is necessary and highly effective. Brands that understand, consistently invest, and avoid shortcuts to connect with Hispanic consumers on a cultural level will see significant returns in brand trust, loyalty, and sales.
As the US Hispanic population continues to grow and influence the market, the importance of culturally relevant marketing will only increase. Brands that want to stay ahead of the curve must recognize that the Hispanic market is not a niche but a core part of the American consumer landscape. Accepting this fact and adapting marketing strategies accordingly isn’t just a smart business move—it’s essential for long-term success.
In conclusion, let’s not overlook the importance of the US Hispanic market. Instead, let’s explore how your brand can truly and effectively engage with a more influential and important segment than ever before.
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Andy Checo is Managing Director of Public Relations and Social Media at New York-based full-service agency d expósito & Partners and a Board Member of the Hispanic Public Relations Association.
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