I recently came across an article by System1 from September 2022 that brings to light the essential aspects and methods to connect genuinely with the Hispanic demographic in the United States. This post aims to unpack their insights and consider the broader implications for brands, focusing on performance marketing and best practices.
The Rising Significance of the Hispanic Demographic
System1 clearly defines the Hispanic community’s place in the American social and economic fabric. With Hispanics accounting for 1 in 5 Americans and holding significant buying power, brands have an evident opportunity. The figure they provided of the group accounting for 12% of U.S. buying power by 2025 resonates with the insights shared in a previous blog on the “U.S. Latino Buying Power: Brands‘ Untapped Potential.” This underscores the importance of understanding the Latino community’s unique needs and preferences.
Authenticity in Hispanic Marketing
Authenticity is non-negotiable. System1 highlights the concern from the Hispanic Marketing Council (HMC) that over half of the individuals aged 13 to 49 have abandoned a culturally insensitive brand. Brands cannot afford to misstep here, especially given the value and loyalty inherent within the Hispanic community.By the light of the now brilliant moons I saw that he was but a shadow of his former self, and as he turned from my caress and commenced greedily to devour the dead carcass at my feet I realized that the poor fellow was more than half starved. I, myself, was in but little better plight but I could not bring myself to eat the uncooked flesh and I had no means of making a fire. When Woola had finished his meal I again took up my weary and seemingly endless wandering in quest of the elusive waterway.
Diversity, Equity, and Inclusion in Advertising
The ‘Feeling Seen USA‘ report, part of System1 Hispanic Advertising Analysis, offers a fresh perspective on DE&I in advertising. Assessing diverse ads and their performance among audiences provides a comprehensive understanding of representation in media. The average 4-Star rating among the general population for ads showcasing Hispanic stories is telling. But what’s more striking is the “diversity dividend” noted when these ads were shown to a custom sample of Hispanics. This uptick in ratings among the diverse audience speaks to the emotional resonance of such ads, reinforcing that representation matters.
The Power of Storytelling
System1’s mention of McDonald’s “First Customer” ad is a testament to the impact of heartfelt, genuine storytelling. Centered around a Hispanic character, this ad highlights the universality of human emotions – pride, embarrassment, and happiness. A performance marketer would note the high ratings among the general public and Hispanics and realize the potential of such content in driving engagement and conversion.
Investment Discrepancies
Despite the impressive buying power and significant demographic representation of Hispanics in the U.S., the disparity in ad investment is alarming. System1 points out that the HMC highlights a discrepancy: 18% of the U.S. population is Hispanic, but only 6% of overall industry investment targets this community. These numbers are a clear call to action for brands. Investing wisely here isn’t just about representation; it’s a strategic move toward a broader, more engaged audience.
Celebrating Cultural Nuances
Understanding that the Hispanic community isn’t monolithic is vital. This group is a rich tapestry of Mexicans, Puerto Ricans, Dominicans, Colombians, Cubans, Peruvians, and more. For a performance marketer, this diversity is an opportunity. Crafting tailored campaigns that resonate with specific sub-demographics can drive higher engagement rates, improved CTRs, and ultimately, better ROAS and ROI.
Multicultural Agencies: A Strategic Choice
System1’s emphasis on working with multicultural agencies resonates deeply. Such agencies, equipped with historical and contemporary insights about various groups, can guide brands in crafting effective, culturally sensitive campaigns. In performance marketing, where metrics and engagement rates reign supreme, collaborations with these agencies can differentiate between a campaign’s success and failure.
In Conclusion:
Reflecting on the System1 Hispanic Advertising Analysis, when viewed through a performance marketing lens, brands are presented with a roadmap to navigate the Hispanic advertising landscape successfully. The Hispanic community has undeniable potential for growth, engagement, and loyalty. The key lies in authentic representation, strategic investment, and genuine storytelling. In a world where advertising is often the first touchpoint between a brand and its audience, getting it right for this community isn’t just a social imperative; it’s a strategic one.
