Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency
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Integrating Multicultural Capabilities into your Agency Multicultural Marketing in the Digital Age: October 17, 2010
Transcript of Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency
Integrating Multicultural Capabilities into your Agency
Multicultural Marketing in the Digital Age:
October 17, 2010
Overview
• Introduction
• 3 multicultural market forces
• 2 industry trends
• The big [multicultural] takeaway
• Your opportunity and challenge
introduction
a little about me
• I’ve been working in advertising for the last 10 years
• My background :– Economics– Digital technology– Management consulting
• I kind of stumbled into this business…
Jose
… and I’m one of the few people you’ll meet that runs a successful ad agency that never
worked in advertising before.
my story explains a lot
• 1998: I left a consulting career to start a Hispanic-focused dot com
• Since that day, I found myself in the middle of a transformation of the advertising industry
my agency
• I started Sensis in 2000 2 days after shutting down my dot com
• Sensis was started to address a small gap I saw in the ad business during my dot com days
• During the last 10 years I’ve realized that “that little gap” was actually bigger and more transformative than anything I could have ever imagined in 2000
Sensis story
clients I’ve worked with…
agencies I’ve gotten to intimately know…
But everything about me and Sensis always comes back to a simple story:
What happens when digital and multicultural get so big and transformative that they can no longer be nicely packaged
as marketing specialties?
3 market forces
The growth of U.S. multicultural market
let’s start with some definitions
• Multicultural markets = various minority groups
– Hispanic– African American– Asian American– GLBTQ– Other
• Middle Eastern, European, South Asian, Native American, Disabled, …
Minorities makes up over 35% of the U.S. population
65%
16%
12% 5% 2%
WhiteHispanicBlackAsianMultiracial
Multicultural America
Source: U.S. Census Bureau
Multicultural buying power
2008 2013$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$951$1,491
$913
$1,213$269
$429
AsianAfrican-AmericanHispanic
In billions… with a “B”
How did we get here?
• Unprecedented immigration spurt of the 1980s– Similar to that of the early 20th century– Both have fundamentally remade the ethnic
landscape of the U.S.
• 83% of U.S. population growth during last decade came from minorities**
* Source: Professor Jacob Vigdor, Duke University**Source: Brookings Institute
By 2048 the minority will be the majority
Source: U.S. Census Bureau
in 13 years 50% of Americans under 18 will be minorities
Source: U.S. Census Bureau
Multicultural consumers are changing the general
market
They are young
Young consumers that are:
shaping popular culture
color blind
They are shaping the mainstream:
setting trends in food, fashion, and music
Salsa and ketchup
"leading with ethnic insights"
Multicultural consumers are themselves changing
A majority are now U.S. born
Multiracial Americans are now the fastest growing U.S. demographic group (5.3 million)
And digital is changing the game…
Multicultural and digital
• early adopters of new technology• leading consumers of online content• highly receptive audiences for online
advertising
Hispanics and Digital
• 24.6 million consumers – More than half (54%) of U.S. Hispanics use the Internet– Internet access growing at a faster rate (13% since 2004)
than among any other group• Total purchasing power of $900 billion• The mobile device is an important point of Internet
entry for Hispanics– They are heavy “data plan” users – Over-index in advanced mobile usage
• Hispanics spend more time on social media sites than their general market counterparts
African Americans and Digital
• 30 million African-American online– Nearly 80% of all African-Americans are
online• They are also among the early adopters of
the mobile Internet
Asians and Digital
• 14 million Asian Americans online– Internet penetration nearing 80%
• market is complex and difficult to reach, due to the wide range of original nationalities, subcultures and languages.
• Internet provides the greatest opportunity for micro- and macro-targeting consumers in this market.
2 industry trends
Ethnic ad agencies have fallen behind
Ethnic ad agencies are stuck in the analog era.
Digital is passing them by
• Only 5% of all Hispanic media spend goes online
Digital is a division
• Most ethnic ad agencies still treat digital as a division
– “Digital Director”
Lack of sophistication
• Most media spend goes to Top 3 “ethnic” digital platforms– Hispanic:
– African-American:
– Asian:
– GLBTQ:
Large general market agencies are building
multicultural capabilities
In the last 12 months
Draft FCB has formed a multicultural unit
Home Depot has moved their Hispanic business to their general market agency, The
Richards Group
Burger King moved their Hispanic advertising to CP+B
The big [multicultural]
takeaway
My thesis
New definition of “full-service”
Multicultural marketing will become an integrated capability of full service agencies
A disruptive change
Rapid, chaotic change usually means an opportunity for businesses that can see and
exploit it
New business models will emerge
• Remember Napster?– The record industry tried to fight
it
• Apple finally figured out how to exploit it– Tower Records died – iTunes was born
Future advertising will look different
Future advertising will look different
• But if you play close enough attention, you’ll see it’s already out there:
What this means for you
A huge opportunity
Adapt to this new model – embrace and integrate multicultural capabilities
Starting tomorrow
• Leverage what you already have
• Make multicultural understanding and/or background part of your new hire evaluations
Starting next quarter
• Stop outsourcing multicultural work to other agencies
• Make digital your entry point
It’s all about digital
This is where ethnic ad shops are opening the door for you…
Digital Entry Points
• Social– Multicultural over-indexing in social media
• Mobile– Multicultural early-adoption of mobile technologies
• Digital media– Hispanics & African-Americans spend more time
online than with any other medium
A bigger challenge
You need to quickly figure out and make multicultural an integral part of your agency
How quickly?
• Depends on what type of agency you are (and hope to be)
– National?– Regional?– Industry-focused?– Discipline-focused?
