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Cross-Cultural Marketing in the US

Summary

Analyzing the impact of ethnicity on attitudes and

digital behaviors

GWI Q3 2014

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As the demographic composition of the American population has continued to shift and evolve, the task of identifying, and successfully responding to, attitudinal or behavioral differences between key ethnic groups has been elevated in importance. But just how different are the digital profiles of White non-Hispanic, Black/African, Hispanic and Asian Americans? Where does each group really stand apart, and where do their behaviors show little if any divergence from the average?

In the full version of this report, GlobalWebIndex draws on its extensive quarterly data from the US to offer a uniquely detailed perspective on cross-cultural marketing – covering everything from activities on social networks and cell phones to the ways in which American consumers engage with brands, purchase products and perceive their own attitudes. In this summary version, we present some of the key headlines and figures.

INTRODUCTION

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Each year, GlobalWebIndex surveys more than 30,000 American internet users across four separate waves. In this

report, we draw on data from our Q1 and Q2 2014 waves (which had sample sizes of 7,573 and 7,521 respectively).

GWI respondents complete an online questionnaire that uses stratified sampling techniques to ensure that they are

representative of the internet population aged 16 to 64 in each country (with correct proportions in terms of gender,

age and educational attainment).

If we break this down by self-reported ethnic background, each of the groups has the following sample sizes:

GWI Sample Size (Q1-Q2 2014)

GWI %(Q1-Q2 2014)

US Census Bureau % (2013 estimate)

White/Caucasian non-Hispanic 10,995 73% 63%

Black/African American 1,334 9% 13%

Hispanic 1,247 8% 17%

Asian/Pacific Islander 909 6% 5%

Other 236 2% 2%

Native American 149 1% 1%

I’d rather not say 224 1%

Comparing this data to the 2013 population estimates from the US Census Bureau shows that GWI’s sample

contains a higher percentage of White non-Hispanic Americans together with lower percentages of Black/African

and Hispanic Americans. This is a direct result of GlobalWebIndex surveying internet users aged 16-64. Not only is

internet usage highest among the White non-Hispanic demographic, but the Hispanic and Black/African American

populations within the US have comparatively young age profiles with higher than average numbers aged below 16.

Please note: In all of the tables featured in this report, the term “White American” corresponds to “White/Caucasian

non-Hispanic” while “Asian American” is the same as “Asian/Pacific Islander”.

NOTES ON METHODOLOGY

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THE DEMOGRAPHICS OF AMERICA’S ONLINE POPULATION CONTINUE TO EVOLVE

• Each year, the composition of the online adult population in America continues to shift, with 2014 marking the first time that the percentage of White non-Hispanic Americans has dipped below the three-quarter mark. The cross-cultural audience is thus growing quickly.

• The age profile of Black/African, Hispanic and Asian American internet users is much younger than the equivalent for White non-Hispanics. This is most pronounced in the older groups: just 5% of Hispanic internet users are aged 55-64, compared to 22% of White non-Hispanics. Corresponding attitudes and digital behaviors are influenced by this accordingly; White non-Hispanics are often behind the other groups due to their older average age.

INTERNET USERS BY ETHNIC BACKGROUND

Question: How would you describe your ethnic group? /// Source: GlobalWebIndex Q2-Q4 2012 and Q1-Q2 2014 /// Base: Internet Users aged 16-64 in the US

KEY DEMOGRAPHICS BY ETHNIC BACKGROUND

Source: GlobalWebIndex Q1-Q2 2014 /// Base: 15,094 Internet Users aged 16-64 in the US

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FACEBOOK STILL THE TOP SOCIAL PLATFORM, BUT YOUTUBE RULES IN THE MOBILE SPACE

• Facebook remains the clear number one in the social networking space; more than three quarters of internet users of all backgrounds have an account on the service.

• Google+ is in second place overall, although membership is much lower among White Americans (42%) than in the other three groups (57% for Black/African Americans and 61% for both Hispanic and Asian Americans). A similar pattern is in evidence for third-placed Twitter, with White Americans being the least likely of all to have an account. In contrast, they are some of the most likely to be a member of Pinterest.

• If we turn our attention to active usage of social networks – that is, people who say they have actively used or contributed to a particular service within the last month – Facebook remains top of the pile (with more than twice the number of active users as any other network). However, it is White non-Hispanics who are the most active of all (55% – more than 10 percentage points ahead of Black/African Americans). • Within the mobile space, YouTube has achieved a rare feat: among Black/African, Hispanic and Asian Americans, higher percentages are using its app each month than Facebook’s. Certainly, the gaps are very small – but that more than two thirds of mobile internet users in each group say that they used the YouTube app last month is impressive nonetheless. In contrast, Facebook is the clear favorite among White non-Hispanics (73%, vs 60% for YouTube).

• Usage of messaging apps is also strong among the non-Caucasian groups, indicating that a lot of the conversations that used to be taking place inside social networks proper have now shifted to messaging channels.

SOCIAL NETWORKING

Question: Which of the following services have you used or contributed to in the past month using any type of device? e.g. PC/Laptop, Mobile phone, tablet, etc. /// Source: GlobalWebIndex Q1-Q2 2014 /// Base: 15,094 Internet Users aged 16-64 in the US

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SOCIAL APPS

Question: Which of the following mobile / tablet applications have you used in the past month? (on any device) /// Source: GlobalWebIndex Q1-Q2 2014 /// Base: Mobile internet users among 15,094 Internet Users aged 16-64 in the US

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HISPANIC AMERICANS EMBRACE THE MOBILE INTERNET

• Mobile internet usage is highest among Hispanic Americans, having climbed to 69% in 2014 from just 47% in 2012. This group is also the most likely to be second-screening.

• White non-Hispanic Americans remain the most attached to PCs/laptops, but figures here are trending downwards gently across all groups.

• Hispanic Americans are the most likely to be sharing mobiles and tablets with other users; if we take mobiles as an example, only 1 in 5 White non-Hispanics share them with other people, compared to just under a third of Hispanics. This creates an obvious challenge in terms of understanding who is using a device at any given time.

• About a quarter of Asian Americans says that they have used a VPN or Proxy Server to access the internet, with the search for better online entertainment content being the biggest motivation. This has the potential to distort the geographic breakdown of visitors to websites.

DEVICES USED TO ACCESS THE INTERNET

Question: In the past month, from which of the following devices have you accessed the internet either through a web browser or an application? /// Source: GlobalWebIndex Q2-Q4 2012 and Q1-Q2 2014 /// Base: Internet Users aged 16-64 in the US

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WORD-OF-MOUTH RECOMMENDATIONS MATTER FOR WHITE NON-HISPANICS

• When we ask consumers how they typically discover new brands, products or services, the importance of personal recommendations is abundantly clear: across nearly all ethnicities, this is the biggest discovery source. Figures peak at 51% among White non-Hispanic Americans, putting them ten percentage points ahead of the next closest group. Only among Black/African Americans are recommendations displaced to second position (with TV shows and films moving to top place, with 43%).

• Across all four groups, it is a reward – whether financial or in the form of a physical gift – which is the biggest driver of recommendations and promotion. This is especially influential for White non-Hispanics (64%).

• Just under half (48%) of Americans say that they have reviewed a product or brand online within the last month; this behavior is most common of all among Hispanic Americans (56%) but slightly less pronounced for White non-Hispanics (46%). This pattern finds further reflection in the numbers who say they’ve posted online opinions about specific products or topics within the last month; on average, Hispanic Americans are the most vocal, while White non-Hispanics are the least likely to be sharing their views – giving a clear indication of which group is the most likely to act as online brand ambassadors.

ONLINE OPINIONS

Question: Which of the following products, services or topics have you posted an opinion online in the past month? /// Source: GlobalWebIndex Q1-Q2 2014 /// Base: 15,094 Internet Users aged 16-64 in the US

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www.globalwebindex.net

Jason ManderHead of Trends

E: jason@globalwebindex.net /// T: +44 20 7731 1614A: GlobalWebIndex, Bedford House, 69-79 Fulham High

Street, London, SW6 3JW, England