Contributor: Bo Bandy, GM Digital Technology/SVP Marketing, Marketron
Segmenting audiences has long been a way for advertisers to create more personalized and relevant promotions. It’s possible to do this in many ways, such as location, interests and demographics. In looking at the demographic angle, one population is becoming more attractive to local businesses every day — Hispanics.
According to Census data, this fast-growing part of the U.S. population represents 19.1% of the country. Further, the Latino Policy & Politics Institute reported that Hispanics accounted for 54% of population growth, with projections that the segment will grow to 28% of the population by 2060.
With the growth in numbers also comes greater buying power, estimated to reach $2.6 trillion by 2025, per Insider Intelligence. It represents a 50% greater increase than that of white households.
These reasons make Hispanics a sought-after demographic for advertisers, and they can reach them with integrated campaigns that include radio and digital.
Hispanic Consumers Love Radio
In a previous post on Hispanic radio listeners, RAB provided some insights on their listening habits, including their higher usage of broadcast radio in the car. We also know more about their radio habits from Nielsen data, including:
- Radio reaches 97% of Hispanics monthly.
- Radio generates a 64% incremental reach when added to audio marketing plans.
- Hispanic-owned stations reach 9 million Latinos every month.
- Companies advertising on Hispanic-owned or Hispanic-targeted radio have a 12% higher return on ad spend (ROAS) than those that don’t.
This data makes the case for using radio’s unmatchable reach to capture listeners’ attention. It’s the obvious starting point when discussing advertising options with companies that are eager to target Hispanics.
Adding Digital to Linear in One Campaign Improves Performance
Creating an integrated campaign to reach Hispanic audiences should include adding digital to the mix. Research and data already support the lift radio gives to digital, and it’s also applicable here.
Targeting options in digital allow you to hone in on the demographic. You can focus more on other attributes beyond ethnicity, including defining the audience as Spanish-speaking only and aligning with interests that resonate with the population, from soccer/football to Latino-focused or hosted podcasts.
In determining what tactics to recommend, you can look at podcast consumption growth from Edison Research:
- Monthly podcast listenership among U.S. Latinos has increased 52% since 2020, compared to 14% among the total U.S. population.
- Forty-nine percent of Latino podcast listeners have purchased a products or service after hearing a podcast sponsorship or ad.
In addition to this data, conversations with your customers should include where they’ve previously seen high engagement in digital advertising. Looking at the market-specific considerations for digital ad tactics is crucial to designing an ad mix that delivers results.
The discussion then shifts to ad content.
Hispanics Lament Lack of Representation in Ads
Hispanics don’t see or hear themselves in many ads. In fact, a Nielsen poll found that 41% of the group said they feel underrepresented. When advertising does feature people they can identify with, it affects buying decisions. Over half (55%) said they are more likely to buy from brands that use creative that reflects them.
Any consumer wants to be “seen” in media, so the development of ad content is critical to performance. It should be authentic, avoiding stereotypes. It also needs to be diverse. While the collective group is those with origins from Spanish-speaking countries, there are many nuances. These subsets of the Hispanic demographic matter in representation. Your region likely has concentrations of specific Hispanic groups. Understanding the makeup of the population will guide the imagery, video and copy for ads.
Another aspect of this is looking at language.
Don’t Limit Ad Placement or Content to Spanish Only
Traditionally, advertisers desiring to reach Hispanic audiences have spent most of their budgets on Spanish-language programming. They’ve also used the language in the ads. It’s not that they shouldn’t do these things, but expanding the perspective on this is important when you look at the data courtesy of Pew Research:
- Most Hispanics are bilingual, with 72% speaking English proficiently and 68% using Spanish at home.
- 75% of Hispanics speak Spanish, and it’s important to note that not all have any proficiency with the language.
- 63% of Hispanics report using Spanglish — a combination of English and Spanish.
How they speak and use language also matters in defining how they consume media. Insider Intelligence reported that the majority view or listen to Spanish and English equally. Spanish-only had the lowest percentage.
With these insights in mind, you should consult with advertisers about using Spanish and English programming and ad content in campaigns. This way, you aren’t leaving anyone out and are aligning advertising strategies to behaviors. Why advertise in just one language when that’s not the reality of the situation?
Bring Data and Ideas to the Table
The data cited above defines the opportunity and guides how to create a linear and digital ad mix to reach Hispanic audiences. Along with data, you should also be ready for ideas on how to capitalize on it. Share thoughts on what radio programming is best for spots and tactics that will drive engagement. Be a partner when discussing content based on representation and this demographic’s needs regarding their products and services.
With a well-thought-out strategy, your advertisers can win the hearts and business of Hispanic consumers.
This post was originally published on Radio Matters.