The Hispanic and Latino Market: America’s Silent Economic Powerhouse
The Hispanic market has emerged as one of the most culturally influential and economically engaged subgroups in American society. With a surge in popularity of Latin music, a multitude of social media trends originating from Hispanic creators, and a range of products designed specifically for this market, U.S. Hispanics are poised to become the next prominent target audience for marketers.
It is no surprise that this segment is gaining such recognition and influence, given how they are leading the way into a multicultural majority in America. According to the U.S. Census, the Hispanic/Latino population in the U.S. has grown from 35.3 million in 2000 to 62.1 million in 2020, accounting for 19% of the U.S. population and making it the country's second-largest ethnic group. This growth is rapidly positioning them as one of the most influential and affluent consumer segments.
In 2020, the total economic output of Latinos in the U.S. reached a remarkable $2.8 trillion, marking a steady increase from previous years. This growth, notable not only for its magnitude but also its rapidity, meant the U.S. Latino GDP experienced an annual growth rate of 3.1% from 2010 to 2020, outpacing the broader U.S. economy.
However, many advertisers have yet to fully recognize the immense potential of this market. There's an exceptional opportunity for brands to authentically connect with the U.S. Hispanic community by embracing its diversity, amplifying their voices, and truly understanding their values and priorities.
As interest in this market grows, so do the unique challenges that marketers and advertisers must navigate. For Hispanics, their language, culture, and historical ties within the U.S. are integral to their identities. Respecting this diversity and understanding that Hispanics are not a monolithic group is the key to effectively targeting this audience.
One critical aspect advertisers should consider when targeting Latinos is the community's desire to consume media and support brands that align with their cultural values. According to the Hispanic Marketing Council, 89% of U.S. Hispanics actively seek out content in Spanish, and 49% prefer to buy from brands that advertise in inclusive content.
As the marketing and advertising landscape continues to grow into a cross-cultural model that emphasizes inclusivity and representation, so does the competition for audience attention. With Latino’s growing appetite for effective media that represent them, brands must take the time to delve into what truly matters to Latinos and the cultural insights that resonate with them.
Moreover, celebrating culture and emphasizing the common threads that bind us together is essential. Featuring central characters from underrepresented groups without their identity being the sole focus of the story can help create more relatable and inclusive content. To succeed, it's imperative to listen to the voices of diverse communities and pay attention to content creators from these backgrounds to authentically reflect their realities.
Overall, recognizing the incredible potential of a market, with the fifth largest GDP and representing a whopping 20% of the population, highlights the importance of making a real connection. American and international brands advertising in the United States should genuinely embrace Hispanic-centric strategies and allocate substantial budgets for marketing and advertising efforts. It's all about working closely with Hispanic specialists to create messages that resonate and deliver them through the right channels, consistently over time. Always remember that it's not a one-and-done effort; it's an ongoing commitment to better serving this vibrant and influential audience.