OFM_AA_Final
-
Upload
jeremy-divinity -
Category
Documents
-
view
154 -
download
1
Transcript of OFM_AA_Final
An Untapped Segment: African-Americans
By: Jeremy DivinityMarch 12th, 2015
Never before has reaching the African-American (AA) consumer been so critical for marketers, the AA consumer market is a thriving, growing segment – and one that spends well for what it wants and needs
Why target African-Americans(AA)?
Growth rate outpaces the total population by almost 30% As their influence continues to grow, partner with them as
market leaders Data shows they are incredibly brand loyal – much more than the general market – and they place a high value on brands Source: http://brandedcontent.adage.com/pdf/CABblackconsumer.pdf
The AA market represents tremendous growth opportunity that can make a difference in your ability to not only win, but win big in a new diverse 21st century
Demographic Profile
• Increasing Purchase Power • Highly influential and ad-receptive• Collectively spend $156.9 billion annually on non-essentials• Largely image-conscious and brand focused Source: Experian
African-Americans are less likely to be influeced by friends for purchase decisions and instead are more likely to be influenced by advertising
Brand Champions
For marketers of luxury goods, automobiles, entertainment and household products, goods and services, this suggests that the AA market is a growth segment worth investing in
AA consumers are brand champions who can influence the general market
Ranging from cars to packaged goods, the AA propensity for buying branded, high-ticket and high-margin items makes them more loyal and profitable customers than any other consumer segment
Money Talks
“We know that there is a significant business opportunity in reaching African-American consumers, who comprise 13 percent of the population and have a spending power of over $949 billion,” — NY Times: Media Decoder; A Site to Help Marketers Appeal to African Americans, 2011
The spending power of the AA demographic will increase 25% by 2015, increasing from $957 billion to $1.2 trillion – making the demographic a priority audience for brands to reach Source: Media Post: African-American Demos Express Ethnic Identity Differently, 2012
Millennial Influencers
The majority of African-Americans are under 30 years old (47%)
Millennial African-Americans continue to play a significant role in defining emerging and pop culture, which is often adopted by the broader consumer market
Millennial African-Americans are critical to engage and connect with as their disposable income grows in the next decade
African-American Millennials are:• Key Influencers• Early Innovators• Trend Setters• Style Leaders
Industry Opportunities
“Black consumers are more likely to plan to buy or lease a car or truck within the next six months (27.4 percent) than all adults 18 and older (16 percent).” —BIGinsights
With improving socio-economic status, the AA market represents a major untapped customer acquisition opportunity
“Black consumers spend an average of $12.55 on fast food each visit compared with non-Black consumers, who spend an average of $11.47 per visit.” —BIGinsights
OUTFRONT Opportunities
With sizable numbers and favorable responses to advertising, engage and reach this “always-on” audience with relevant messages using OUTFRONT MEDIA
OUTFRONT Media offers outstanding value and a variety of formats that can effectively reach the sizeable, increasingly mobile, and active AA consumer market
AA consumers are more likely than the average American to consider a range of advertising types as purchase influencers, while being less likely to rely on word-of-mouth - Experian Marketing Services (2013)
Key Areas of Coverage
Despite African-Americans’ sizable numbers and favorable response to advertising, just 3% of major media ad spending is targeted to them, according to a recent study from Nielsen (2014)
Prime Areas of Coverage:Blue Collar– Harlem, Washington Heights, Bronx, Staten Island
Mass Affluent – Brooklyn, Lower Manhattan, Queens
Aspirational Leaders– Long Island, Upper Eastside
The New York Metro AA population is the largest of any city in the United States
New York City Media Coverage
Reach this ad receptive audience by partnering with OUTFRONT Media, as our coverage will deliver a simple direct message that cannot be turned off or put down unlike TV, radio, or print
Bus – Drive your message to potential customers with this highly visible medium that circulates in and around AA communities, easily seen by both pedestrians and commuters
Posters – Reach highly mobile AA pedestrians as well as those in autos with this “mini-billboard”
Billboards – African American’s are more receptive than the general market to billboards. Raise awareness, provide information, and broaden your influence using billboards placed in key areas throughout the city
Walls – Provides large-impact message capability in and around AA neighborhoods
Subway – Up close and personal advertising format(s) that offer the ability to delivery tremendous stopping power, eye catching ability, and providing info in a relevant and convenient manner
Urban Panels – Increase brand familiarity and awareness with eye level placements located on key street intersections around NYC