Unlock the Power of Hispanic Consumers: Insights for Marketers

Many brands are missing the mark with Hispanic consumers. Marketing budget allocation is often low, Many brands are missing the mark with Hispanic consumers. Marketing budget allocation is often low, authentic representation is often lacking, and targeting strategies are often ineffective. 

In fact, according to Ad Age, only 4% of U.S. marketing budgets are devoted to Hispanic-targeted initiatives. Yet, nearly 1 out of 5 people in the U.S. are Hispanic and it’s the fastest growing population segment. This discrepancy in targeted ad spend is big, and it could be costing you in brand loyalty and profit.

Research from Magid’s AD.VANTAGE and SubScape data tools offer compelling evidence that there is substantial, untapped potential for marketers to connect authentically with Hispanic consumers.

Hispanic Consumers are power spenders, emotionally engaged, and digitally connected.

Hispanic consumers outpace non-Hispanic consumers in spending more across several major economic categories, from groceries to video games to travel. For example, AD.VANTAGE data shows that Hispanics are spending +10% more on streaming services than non-Hispanics.

Magid AD.VANTAGE surveys 2,000 consumers each month asking key questions about consumer sentiment, behavior, and perspective. Learn more here.

SubScape peels back another layer on this behavior, revealing that Hispanics not only spend more on streaming services (SVOD, vMVPDs, and free streaming platforms) but are also less likely to have cable. This trend is even stronger when looking at Hispanic parents with children in their household, where usage stats for platforms like Netflix, Disney+, and YouTube Premium soar far above the total audience averages.

Magid SubScape uses predictive analytics to anticipate market changes and subscriber behaviors. Learn more here.

This higher usage trend holds up across much of the digital arena, with Hispanics using many social platforms at a much higher rate than non-Hispanics. If you’re not strategically marketing to Hispanic consumers on digital and OTT platforms, you’re missing a big opportunity.

Hispanic Consumers are social amplifiers.

Not only do Hispanics report higher usage of several digital platforms, but they also report being more influenced by digital content. When asked, “How much does seeing content on these platforms affect your decision to buy or recommend a product, service, or brand?” Hispanic respondents report a significantly higher impact than non-Hispanics.

To leverage this influence, marketers should develop a robust digital presence, utilize targeted ads, and collaborate with content creators in ways that are reflective of Hispanic cultural values. Efforts like these that align with the audiences’ behavior can facilitate more meaningful connections, foster brand loyalty, and drive purchasing decisions. 

As marketers know, organic marketers are prized customers. Failing to engage with Hispanic consumers on digital or streaming platforms means missing out on just that: valuable organic marketing. When Hispanic consumers enjoy a piece of content, they are more likely than others to share it via word of mouth and social media.

This sharing creates ripple effects, helping your content reach secondary audiences through shares, engagement, and discussions.We 

Another good idea: tapping into a positive emotional state. ​​AD.VANTAGE data highlights that Hispanic consumers report higher levels of positive emotions than non-Hispanic consumers (with 60% reporting feelings like confidence, contentment, and engagement). Create digital campaigns that focus on enriching quality of life, and showcasing how your products or services can contribute to a happier or more fulfilled lifestyle.

Cultural authenticity is critical.

The path to winning Hispanics as loyal consumers doesn’t end with emotional engagement and platform presence—it requires authenticity. There is a +47% net brand lift in likelihood to engage with brands authentically reflecting Hispanic culture, compared to a -4% net decrease when cultural depictions miss the mark. Meaning, not only does accurate reflection help with brand engagement, but inaccurate representation actually drives Hispanic audiences away from your brand.

Marketing efforts should depict positive portrayals of Hispanic communities, avoid stereotypes, and accurately reflect the beliefs, customs, and traditions of this culture. Consumers also note that language compatibility, plus relatability to storylines and characters help make ads stand out.

By focusing on these nuanced qualities and avoiding outdated stereotypes, brands can engender trust, foster loyalty, and build meaningful connections.

Embrace cultural awareness year-round.

By embracing a strategic marketing approach that prioritizes authenticity and meaningful representation, brands can unlock the vast potential of the Hispanic consumer market. 

As the Hispanic demographic continues to grow and exert significant economic influence, companies that are proactive and culturally aware will be well-positioned to thrive. Now is the time to leverage these insights, champion diversity, and harness the power of Hispanic consumers to drive innovation and success in the marketplace.

Magid data tools like AD.VANTAGE and SubScape allow our researchers to paint a comprehensive view of a nuanced cultural trend, economic pattern, or consumer type. If you’re looking for an in-depth, 360-degree dive into cultural or industry trends, let’s talk. We’ll give you a personal demo of our data product suite.