Hispanic Cyberstudy - AOL Advertising
Hispanic Cyberstudy - AOL Advertising
Hispanic Cyberstudy - AOL Advertising
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<strong>Hispanic</strong><br />
<strong>Cyberstudy</strong><br />
Marketing to the web’s<br />
most rapidly growing population
<strong>Hispanic</strong> <strong>Cyberstudy</strong><br />
Marketing to the web’s most rapidly growing population<br />
A study by <strong>AOL</strong> <strong>Advertising</strong> & Cheskin:<br />
Why and how are <strong>Hispanic</strong>s using the internet<br />
in their daily lives?<br />
Quantitative Methodology<br />
Telephone Survey:<br />
717 <strong>Hispanic</strong> households across the US<br />
(90 via cell phone)<br />
Online Survey:<br />
616 <strong>Hispanic</strong> households across the US<br />
634 General Market across the US<br />
For years, marketers have struggled with the complexities of the<br />
<strong>Hispanic</strong> market. Given the blistering growth of their population and<br />
subsequent rise in purchasing power, <strong>AOL</strong> wants to help marketers<br />
and agencies understand the changing <strong>Hispanic</strong> market, and improve<br />
their advertising performance with this segment.<br />
To stay ahead of market trends, <strong>AOL</strong> <strong>Advertising</strong> commissioned<br />
Cheskin Added Value to conduct research about Online <strong>Hispanic</strong>s.<br />
This is a continuation of a study <strong>AOL</strong> began in 2004.
The basics
America, the diversified<br />
A forecast of the 2010 Census<br />
50 Million <strong>Hispanic</strong>s will be<br />
living in the US<br />
Nearly one in six US residents<br />
will be <strong>Hispanic</strong><br />
Los Angeles County is expected<br />
to be home to the largest<br />
<strong>Hispanic</strong> population in the US –<br />
exceeding that of Costa Rica<br />
Experts anticipate that the US will be more diverse<br />
than ever, with only 22% of households expected<br />
to be the iconic American family of mom, dad and<br />
kids. The <strong>Hispanic</strong> population is expected to be<br />
much younger compared to other racial groups.<br />
SOURCE: Francese, Peter. (2009). 2010 America: What the 2010 Census means for Marketing and <strong>Advertising</strong>. <strong>Advertising</strong> Age.<br />
Retrieved from http://adage.com/
The American Yardstick<br />
Market segmentation of Online <strong>Hispanic</strong>s based on acculturation<br />
23%<br />
<strong>Hispanic</strong> Dominant<br />
• Predominantly speak<br />
Spanish at home<br />
• Most media consumption<br />
in Spanish<br />
• Foreign-born<br />
• Mean age 40<br />
• Lived in the US seven<br />
years average<br />
31%<br />
Biculturals<br />
• Speak both languages<br />
at home<br />
• Most media consumption<br />
in English<br />
• Foreign and US-born<br />
• Mean age 34<br />
• Lived in the US 22 years<br />
average<br />
46%<br />
US Dominant<br />
• Speak English at home<br />
• Most media consumption<br />
in English<br />
• US-born<br />
• Mean age 37<br />
• Lived in the US 36 years<br />
average<br />
Currently, marketers tend to divide <strong>Hispanic</strong>s into three different categories: <strong>Hispanic</strong> Dominant,<br />
Bicultural and US Dominant. Offline, the sizing of these groups is reversed, with <strong>Hispanic</strong> Dominants<br />
representing 52% of the segment, Biculturals 19% and US Dominants 28%.
A Different Measure<br />
Segmenting by life stage group<br />
Young and Free<br />
Young Family<br />
Mature Family<br />
Prime of Life<br />
Empty Nester<br />
17%<br />
23%<br />
18%<br />
13%<br />
30%<br />
2 Kids (0-11)<br />
Average 33 YO<br />
Married<br />
2 Kids (12-17)<br />
Average 40 YO<br />
Married<br />
No Kids<br />
Average 41 YO<br />
Married<br />
Kids 18+<br />
Average 57 YO<br />
Married<br />
No Kids<br />
Average 26 YO<br />
Single<br />
Segmentation by life stage provides another way to understand the values and interests of<br />
<strong>Hispanic</strong>s, based on their preferences and behaviors, which are not necessarily unique to their<br />
cultural background or acculturation level.
Pursuing<br />
passions online
“Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut<br />
labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris<br />
nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate
Entering the mainstream<br />
Internet usage among <strong>Hispanic</strong>s is catching up to the general population<br />
75%<br />
65%<br />
55%<br />
45%<br />
35%<br />
2002 2009<br />
57<br />
41<br />
<strong>Hispanic</strong> General Market<br />
Since our first study in 2002, the number of <strong>Hispanic</strong>s online has grown significantly – faster, in fact,<br />
than the total US online population. The online adoption gap between <strong>Hispanic</strong>s and the General<br />
Market has narrowed to 13 points over the past few years.<br />
*Note: General Market data provided by PEW Research Center in July 2008; <strong>Hispanic</strong> data provided by <strong>AOL</strong> <strong>Advertising</strong> Cyber Study in July 2008.<br />
71<br />
58
Who are they?<br />
<strong>Hispanic</strong>s vs. General Market users<br />
<strong>Hispanic</strong><br />
AGE: 37<br />
HOUSEHOLD INCOME: $50K+<br />
CHILDREN: YES! Sandra 6 and Danny 5<br />
General<br />
Market<br />
AGE: 46<br />
HOUSEHOLD INCOME: $75K+<br />
CHILDREN: YES! Stephanie, 22<br />
Both offline and online <strong>Hispanic</strong>s are much younger than the general population, with larger<br />
households and younger children. 46% of Online <strong>Hispanic</strong>s are under 35 years old, compared to<br />
just 28% of the US internet population. Meanwhile, 30% of the General Market online population<br />
are empty nesters – only 13% of <strong>Hispanic</strong>s fall into this group.
Young <strong>Hispanic</strong>s log on most<br />
Online Offline<br />
23<br />
77<br />
34<br />
66<br />
44 40 67<br />
56<br />
60<br />
33<br />
Young and Free Young Family Mature Family Prime of Life Empty Nesters<br />
Online <strong>Hispanic</strong>s are younger than their offline counterparts,<br />
who are also more likely to be empty nesters.<br />
100%<br />
50%<br />
0%
<strong>Hispanic</strong>s love and<br />
trust the internet<br />
<strong>Hispanic</strong>s are more enthusiastic about the benefits of the internet than<br />
the General Market – so much so that they have more confidence in<br />
online product ratings than the opinions of their friends.<br />
28%<br />
Friends’ Opinions<br />
72%<br />
Product Rating Sites<br />
“Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut<br />
labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris<br />
nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate
They view the internet as<br />
a place of discovery<br />
and connection<br />
64 51 57 43 44 25 36 30 27 15<br />
The best place<br />
to keep up with<br />
current events<br />
Always go to<br />
the internet to<br />
find deals<br />
Use the internet<br />
to keep up with<br />
pop culture<br />
<strong>Hispanic</strong> General Market<br />
Internet is an<br />
important tool<br />
for building a<br />
better life<br />
<strong>Hispanic</strong>s have a high regard for the internet as a medium for information and socialization. Fully<br />
one-third of all <strong>Hispanic</strong>s, regardless of acculturation and life stage, view the internet as a key<br />
component in building a better life.<br />
A great place<br />
to meet people<br />
with similar<br />
views
The internet informs their purchase process<br />
90%<br />
85%<br />
80%<br />
75%<br />
70%<br />
Start<br />
learning<br />
process<br />
<strong>Hispanic</strong> General Market<br />
Learn about<br />
brands<br />
Learn about<br />
features<br />
Get advice<br />
on what to<br />
buy<br />
Where to<br />
buy<br />
Compare<br />
prices<br />
<strong>Hispanic</strong> consumers view the internet as a very important information source in the purchase<br />
decision-making process. They look to the internet to learn about products, brands, features,<br />
stores and pricing.<br />
Make final<br />
decision
Not only are they technology leaders...<br />
<strong>Hispanic</strong> vs. the General Market:<br />
How they access the internet<br />
100% vs 100% 18% vs 11%<br />
32% vs 20%<br />
Compared to the General Market, <strong>Hispanic</strong>s are more sophisticated technology users. Their use of<br />
a wide range of devices (e.g. smartphones and gaming devices) to access the internet illustrates a<br />
high level of comfort with and willingness to try new technologies.
...<strong>Hispanic</strong>s are early adopters<br />
<strong>Hispanic</strong> General Market<br />
“Online <strong>Hispanic</strong>s are eager<br />
and adventurous.”<br />
27 13 36 22 33 24<br />
Early adopters Considered tech expert<br />
by friends and family<br />
Keep up with the<br />
latest technology<br />
Compared to General Market users, Online <strong>Hispanic</strong>s are more adventurous and eager to try new<br />
media communication formats and technologies. They also keep up with the latest tech news, and<br />
like to help friends and family with their purchases.
Everything you know is wrong<br />
Acculturation doesn’t equate with technological sophistication<br />
PC access<br />
Keep up with the<br />
latest technology<br />
Considered tech<br />
expert by friends<br />
and family<br />
Early adopter<br />
<strong>Hispanic</strong> Dominant Bicultural<br />
US Dominant<br />
100% 100% 100%<br />
29% 35% 34%<br />
41% 40% 31%<br />
41% 25% 22%<br />
<strong>Hispanic</strong>s are universally embracing new technologies regardless of their acculturation level.<br />
Furthermore, contrary to common stereotypes, the most acculturated <strong>Hispanic</strong>s are not necessarily<br />
the most technologically savvy. In fact, less acculturated <strong>Hispanic</strong>s tend to be early adopters,<br />
evaluating new formats and spreading the word in their communities.
A look at the<br />
future
The <strong>Hispanic</strong> power user<br />
AGE: 34<br />
GENDER: Male<br />
EMPLOYMENt: Full-time<br />
FAMILY StAtUS: Married<br />
with young kids<br />
HOURS ONLINE:<br />
24 hrs/week<br />
One-fifth of Online <strong>Hispanic</strong>s are power users who give us a glimpse of future adoption by mainstream<br />
users. This group spends over 24 hours per week on the web, connecting over half the time via<br />
mobile (57%) or other devices (47%). They also view themselves as innovators, keeping up with the<br />
latest technology (100%), serving as tech experts to friends and family (100%) and adopting new<br />
technologies first (100%).
Catching the viral bug<br />
Via email<br />
(message or link)<br />
Over the phone/<br />
in-person<br />
IM to friends/<br />
family<br />
Write a blog<br />
Social networking<br />
site<br />
Write a review on a<br />
review site<br />
Traditional Viral<br />
Power User Mainstream <strong>Hispanic</strong>s<br />
79%<br />
38%<br />
64%<br />
52%<br />
68%<br />
28%<br />
91%<br />
55%<br />
51%<br />
21%<br />
55%<br />
6%<br />
Power users are also highly influential in their communities, spreading the word about deals (91%)<br />
or the latest entertainment news (87%). They are content creators and use the web to broadcast their<br />
point of view, while mainstream <strong>Hispanic</strong>s are more traditional in how they communicate with others.
Connecting<br />
through life<br />
stages
The old view<br />
traditional marketing to Online <strong>Hispanic</strong>s<br />
<strong>Hispanic</strong><br />
Dominant<br />
Bicultural<br />
US<br />
Dominant<br />
0 20 40 60 80 100<br />
10 30 50 70 90<br />
12<br />
1<br />
25<br />
Spanish English<br />
75<br />
88<br />
99<br />
To date, messaging for the <strong>Hispanic</strong> community has been organized around acculturation and language.<br />
While 75% of <strong>Hispanic</strong> Dominants prefer product marketing information in Spanish, there is an<br />
overwhelming preference among Bicultural and US Dominants for marketing in English.
A new perspective<br />
the importance of life stages<br />
Spanish English<br />
96.8<br />
3.2<br />
71.6<br />
28.4<br />
65.6 56.9 81.2<br />
34.4<br />
43.1 18.8<br />
Young and Free Young Family Mature Family Prime of Life Empty Nesters<br />
Marketers should always take their target audience’s life stage<br />
into account before determining the language/media mix.<br />
If we look at the language preference for websites by life stage, English marketing messages are<br />
favored by virtually all of the youngest <strong>Hispanic</strong>s and most of the other market segments. This<br />
has important implications for marketers, who should always take into consideration their target<br />
segment’s needs and passions before determining the appropriate language/media mix.<br />
100%<br />
50%<br />
0%
Can you say it in English?<br />
Can’t do all the same things<br />
on Spanish site<br />
The English site is better /<br />
more comprehensive<br />
English site has more detail<br />
than the Spanish Site<br />
English site has more<br />
useful information<br />
English site has better<br />
deals than the Spanish<br />
8.8%<br />
17.9%<br />
25.3%<br />
23.1%<br />
21.1%<br />
In general, <strong>Hispanic</strong>s recognize the disparity between the availability of English and Spanish language<br />
content. They perceive English sites as more comprehensive, detailed and useful than Spanishlanguage<br />
counterparts. This belief is prevalent across all levels of acculturation and life stages.
Biculturals and US Dominants are younger<br />
<strong>Hispanic</strong> Dominant<br />
21<br />
5<br />
39<br />
21<br />
14<br />
Bicultural<br />
21<br />
9<br />
27<br />
18<br />
25<br />
US Dominant<br />
20<br />
6<br />
32<br />
15<br />
27<br />
Young and Free Young Family Mature Family Prime of Life Empty Nester<br />
The preference for English among the younger segments is also influenced by the demographic<br />
composition of Bicultural and US Dominant <strong>Hispanic</strong>s, who tend to be younger and more engaged<br />
in the digital lifestyle – making them the sweet spot for most advertisers.<br />
100%<br />
50%<br />
0%
A closer look:<br />
Audience<br />
perspective
Media consumption<br />
Online <strong>Hispanic</strong>s prefer English language online media<br />
14.36 9.3<br />
<strong>Hispanic</strong> dominant<br />
12.42 2.5<br />
Bicultural<br />
Hours Online in English Hours Online in Spanish<br />
Most <strong>Hispanic</strong>s consume online media in English – even <strong>Hispanic</strong> Dominants. This reflects the<br />
greater availability of English language sites. This is not unexpected, as 27.6% of web content is<br />
created in English, with Chinese second at 22.1% and Spanish a distant third at 7.9%.<br />
Source: Internet World Stats. (2009). Top 3 Internet Languages. Retrieved December 8, 2009 from www.internetworldstats.com/languages.htm<br />
20 3<br />
US dominant
A tie between tongues<br />
Online <strong>Hispanic</strong>s seek out the best experience<br />
60<br />
45<br />
% Consume content<br />
in English multiple<br />
times per week<br />
30<br />
15<br />
0 0 15 30 45 60<br />
% Consume content in Spanish multiple times per week<br />
The chart above shows the language consumption patterns among consumers who prefer Spanish.<br />
Clearly, they will consume similar types of content in both languages. This suggests that Online<br />
<strong>Hispanic</strong>s are not opting for one language over the other. Rather, they’re looking for the best online<br />
experience regardless of language.<br />
Keep Up With Home<br />
Country News<br />
Entertainment<br />
News<br />
Follow Passions<br />
& Hobbies<br />
Keep Up With<br />
US News<br />
Financial<br />
Information<br />
Research<br />
Purchases
Quality matters<br />
<strong>Hispanic</strong>s distrustful of Spanish language sites<br />
I trust the Spanish Site More<br />
3.1%<br />
Spanish site has more useful information<br />
2.8%<br />
One of the reasons why so many <strong>Hispanic</strong>s prefer English content is their mistrust of sites<br />
in Spanish, which often are little more than literal translations of English content. Only 3% of<br />
respondents found Spanish language sites more trustworthy and useful than those in English,<br />
leaving an important percentage of the <strong>Hispanic</strong> segment feeling underserved.
When Spanish is preferred…<br />
Do it well<br />
It’s more important than just straight translation<br />
It takes into account my ties to home country<br />
24 75<br />
It reflects my experience in the US<br />
51.9 47<br />
44 56<br />
0 20 40 60 80 100<br />
% Consume content in Spanish multiple times per week<br />
It Matters Very Important<br />
Those who prefer Spanish marketing find that tailored content makes them feel closer to home.<br />
They also favor a meaningful transcreation over a literal translation of an English site.
When English is preferred...<br />
Don’t generalize – be relevant<br />
It takes into account my ties to home country<br />
36<br />
It reflects my experience in the US<br />
33<br />
0 20 40 60 80 100<br />
% Consume content in English multiple times per week<br />
It Matters Very Important<br />
33<br />
33<br />
Even where there is a high preference for English content and marketing – particularly among<br />
young <strong>Hispanic</strong>s – a remarkable 66% of the audience finds it important that content takes into<br />
account their home country and their experience in the US.
Appearance counts<br />
Be respectful with creative executions, images<br />
It has pictures of people who look like me<br />
For those who prefer Spanish marketing<br />
40.8%<br />
For those who prefer English marketing<br />
57%<br />
0 20 40 60 80 100<br />
Media representation issues become more important for more acculturated and younger <strong>Hispanic</strong>s.<br />
Imagery should be carefully selected to provide positive identification with culture without stereotyping.
Summary<br />
<strong>Hispanic</strong>s are influencing<br />
the mainstream<br />
Online <strong>Hispanic</strong>s have<br />
proven to be tech-savvy<br />
media trendsetters.<br />
Life stage is key<br />
Your language/media mix<br />
should be based on the life stage<br />
of your consumer.<br />
tailor your message to<br />
their experience<br />
<strong>Hispanic</strong>s prefer messaging<br />
that takes into account their<br />
backgrounds and experiences.<br />
For more information, please send your request to research.team@corp.aol.com
Notes
the team<br />
Liz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick<br />
Special thanks to the 360 Creative Team at <strong>AOL</strong> for producing this booklet, Guy Garcia for his<br />
feedback and time, Rebecca Abravanel for answering all of our questions, and Olivia Maloney,<br />
Miguel Ferrer and Edgar Ochoa for sharing their <strong>Hispanic</strong> expertise.