Date post: | 05-Apr-2018 |
Category: |
Documents |
Upload: | glendagill |
View: | 219 times |
Download: | 0 times |
of 31
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
1/31
S I G H T
I N P L A I N
The Black ConsumerOpportunity
SUPPLEMENT TO ADVERTISING AGE
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
2/31
WE WROTETHE GAME,
AND WE AREREWRITING IT
EVERY DAY.
burre l l . com
2012 Burrell Communications Group, LLC.
For over 40 years, Burrell has earned the trust of leading brands and connected them to what we know
best: the African-American consumer. With over a trillion dollars in spending power, the African-American
consumer market is still one of the fastest growing economic powers in the world. You dont just stumble
into success, you earn it. To learn all the reasons why you should get in the black, visit burrell.com/trillion.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
3/31
Supplement to AdvertiSing A
Sometimes the best opportunity is right there in ront o you, but you dont see its truevalue because its too amiliar. You think you already know what its about, and you have a stan-
dard way o dealing with it.
These pages will open your eyes to the major brand-building opportunity thats in plain sight:he Black consumer market.
All advertisers want to minimize their targeting assumptions and maximize their targeting as-
urances. In these pages, we break down the prevailing assumptions and practices used or reach-
ing Black consumers to reveal an assured targeting opportu-
nityincreasingly inuential, educated, entrepreneurial and
mobile, but also decidedly culturally distinct.
U.S. Census Director Dr. Robert Graves says, The deliver-
ing o a message about a product or a service is best done when
the advertiser understands the lens through which a consumer
is viewing both the culture theyre in and how their own ex-
periences map onto it. This market-frst collection o the most
in-depth Black consumer research draws rom a wide range ohighly respected industry experts and research organizations.
It spells out the cultural distinctions and provides a wealth o
insights or credibly customizing the advertisers pitch to this
pivotal group o product purchasers.
We knew now was the time to bring you this package o
actionable insights; while our Reaching Black Consumers website launched only fve months ago,
he volume o inquiries rom interested marketers compelled us to distribute In Plain Sight as
widely as possible.
Many elite U.S. marketers are already all in on the Black consumer investment, recognizing
he value o these inuencers to overall brand perormance. Inside youll hear rom McDonalds,
Coca-Cola, State Farm, Procter & Gamble, General Mills and Ford about their successes in turn-
ng the Black consumer opportunity into big impact on their sales.The opportunity detailed within these pages becomes both a sel-evident sales win and a pow-
rul rebuke to the Well get Blacks along with everybody else thinking and practice. Black-
pecifc, culturally relevant marketing is the clear way orward.
Sa Cha Cyha pks-rbs
President Vice President,
Cabletelevision Advertising Bureau Multicultural and Emerging Markets
April 23, 2012
THE BLACKCONSUMER
INSIDE5 In Plain Sight
6 Buying Power
7 Spending Trends
8 Black Afuents
9 Hot Households
10 Generation Gaps
12 Loyalty Limits
14 Trading Spaces
15 Key Markets
16 Songs in the Key o Lie
18 The Great Debate
20 Marketer Insights
21 Fords Jim Farley
22 General Mills Mark Addicks
23 Coca-Colas Kimberly Paige
24 State Farms Pam El
25 P&Gs Alexandra Vegas
26 McDonalds Neil Golden
27 Content Is King
30 Getting Real
Cover: iStockphoto.com/(left to right) DRB Images, JonyIan McDonnell, DOUGBERRY, Hart Creations, Kali9, Kali9,DRB Images, Camrocker
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
4/31
Why do we use the term Black instead of African American?
Although Arican Americans are the majority at 89 percent, the U.S. Black population is representative o
he entire Black diaspora, including Black Hispanics, Caribbean and Arican immigrants and those who
dentiy as a combination o Black and another race.
Many Black Caribbean immigrants, along with Canadians or Europeans o Arican descent, eel exclud-d by the term Arican Americanor believe that it does not accurately reect their cultural background.
In most cases, the use o either term is acceptable today and, as in this publication, they are oten used
nterchangeably.
What is buying power ?
Simply defned, buying power is the total personal income o residents that is available, ater taxes, or
pending on virtually everything they buy. It does not include money that was borrowed or that was saved
n previous years. Total buying power or 1990, 2000 and 2010 equals disposable personal income as re-
ported in the National Income and Product Accounts tables by the U.S. Department o Commerce, Bureau
o Economic Analysis, Regional Economic Inormation System.
Based on the data provided by the Commerce Department, the Selig Center prepared projections o total
buying power or 2011-17. It should also be emphasized that buying power estimates are not equivalent toaggregate consumer expenditures as reported in the Consumer Expenditure Survey conducted each year by
he U.S. Bureau o Labor Statistics. For more inormation on Buying Power, visit www.terry.uga.edu/selig/.
s there a Black middle class?
Despite the many stories about the disappearing middle class, the reality is that the Arican-American popu-
ation is decidedly middle class and growing. Most working-age Blacks have college experience, and Black
households with two or more earners have above-average incomes. Black workers are more likely to be
managers and proessionals than service workers. Among Black householders age 45 and older, most are
homeowners.
The auent class is covered in this supplement. For more inormation on other socio-economic groups,
please visit our website, ReachingBlackConsumers.com.
What is ReachingBlackConsumers.com?
ReachingBlackConsumers.com is a groundbreaking new website that synthesizes expert data on todays
Black consumer in one convenient place. A team o industry experts and top research companies share
elevant, timely insights needed to reach this dynamic consumer segment.
ReachingBlackConsumers.com is designed to deliver targeted data and efective strategies to help
you and your brands connect with all segments o the Black consumer market.
Visit ReachingBlackConsumers.com today and register or ull access.
4 APRIL 23, 201
Editors
NotEs
Sean B. Cunningham
President & CEOCabletelevision Advertising Bureau (CAB
EXECUTIVE EDITOR
Cynthia Perkins-Roberts
VP, Multicultural Marketing, [email protected]
MANAGING EDITORS
Charles N. Jamison Jr., Ph.D.
Brand Strategy Director, Footsteps GroupJacklynn Topping
Business Strategist, JTopping AssociatesSUPPLEMENT EDITED BY
Anne Torpey
ARTICLE CONTRIBUTORS
Christine Bunish
Peter Francese
Founder, American Demographics Magaz
Carol Hillsman Sagers
Principal Consultant,CHS Marketing ConsultantsJeffrey Humphreys
Director, Selig Center, Univ. o Georgia
Julie Liesse
Kalil Vicioso
Strategic Director, Added Value CheskinAaron Walton
Founding Partner, Walton IsaacsonEdwin Wong
Sr. Director, B2B Strategic Insights, Yaho
EDITORIAL CONSULTANTS
Pepper Miller
President, Hunter-Miller GroupDerrick Walker
Owner, browner & browner adv.DEMOGRAPHY
Cheryl Russell
Editorial Director, New Strategist
INFOGRAPHIC DESIGNER
Column Five
www.columnfve.com
ASSOCIATE PUBLISHER
Jackie [email protected]
EDITORIAL DIRECTOR
Karen Egolf
ASSOCIATE EDITOR
Richard K. Skews
COPY EDITOR
Nancy Dietz
Barbara Knoll
ART DIRECTOR
Gregory Cohane
PRODUCTION
MANAGER
Kate Nelson
ReachingBlackConsumers.com is owned by
Cabletelevision Advertising Bureau
830 Third Ave., New York, N.Y. 10022, 212-508-1200, www.thecab.tv
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
5/31
Supplement to AdvertiSing A
Fluere is Latin or fow, and its at the core o three concepts ev-
ry marketer should understand to build a meaningul and measur-
able relationship with Americas Black consumer segments: uency,
auence and inuence. Understanding these concepts puts the Black
onsumer market opportunity in plain sight.
Fluency is oten connected only to language uency and thereore
oten overlooked as a critical part o the conversation surrounding
marketing to Black consumers. Yet cultural uency is ar more valuablehan language when it comes to making a deeper and longer-lasting
onnection with consumers rom a variety o ethnic, racial and soci-
tal segments. Cultural uency enables a brand to navigate the value
ystems o a consumer segment, and shared values are the most potent
o cultural currencies in terms o establishing brand afnity and ac-
eptance. Contrary to the progressive notion o a color-blind society,
Blacks want to remain culturally distinct. Advertisers that make the e-
ort to become more uent in this regard will reap big benefts.
Auence is an understated part o the Arican-American consumer
tory, as the spotlight is oten ocused on the mass market at best and
negative stereotypes at worst. Additionally, there is oten a mistaken
perception that auence negates cultural retention, that auent Blackonsumers and auent White consumers are more similar than dier-
nt and that culture is disposable among those who have arrived. Not
o, as the Black Auents article on Page 8 explains.
Perhaps most compelling about the Black consumer market is its
ncreasing inuence on the general market, not just by Black auents
but also by urban youth and other grassroots community members.
Arican Americans rom all walks o lie have successully penetrated
ociety at large through their trendsetting impact on ashion, music
and social media. Other consumers look to them to be on the inside
rack o whats current, whats next and whats not. They gravitate to
Blacks sense o style, innovation, originality, authenticity, desirability,
uniqueness and confdencein short, to whats cool and relevant.Leading marketers are capitalizing on this inuential aspect o
he Arican-American market. Just look at the shared insights start-
ng on Page 20 rom the CMOs o McDonalds and General Mills,
both o whom have quantifed the ROI generated rom total-market
ampaigns in which cultural insights led both strategy and execution.
Their defnition o ROI is as much about a return on insights as it is a
eturn on investment.
While marketers like these are leading a gradual shit in thinking,
ar too many marketers that know Arican Americans are an integral
and inuential part o the consumer dynamic still exclude them rom
erious marketing conversations. The reasons vary, but the end result is
the same: a missed opportunity on many levels.
Are you still marketing rom your comort zone and avoiding t
tough questions?
When your company thinks about Black consumers, does it:
n Consider the minimal use o Arican-American perormers a
models to be sufcient or, even worse, progressive?
n Limit the ocus to making sure youre not oending them athrowing together a ew ads around Black History Month?
n Conclude that a handul o Arican Americans in a predominan
White consumer ocus group have voiced all the insights youll need
n Consider that an Arican-American measurement sample is su
cient merely by reaching a numeric quota, with no consideration giv
to age, gender, economic and other variables?
n Create pro orma budgets without careul analysis o the Black co
sumer opportunity?
If your company works with cultural specialists, do you:
n Invite them to sit at the table with the agency youve assigned to yo
mainstream advertising? I so, are they invited at a point in the procwhere they cant really impact anything?
nConsider your specialized agency or new opportunities that have
to be assigned to your mainstream agency?
nGive your multicultural specialists, both internal and external, som
thing meaningul to do beyond making sure that the company is ave
ing a PR crisis?
Integrating the Black consumer opportunity into all discussio
does not negate the importance o highly targeted marketing eo
directed to this community. Black advertising or Black consumers
strategically smart and deserves recognition and respect. The relevan
and resonance o culturally targeted media such as BET and TV O
Black Enterprise, Essence, Ebony and Uptown can never be deniedduplicated.
With this white paper, the Cabletelevision Advertising Bure
hopes to answer some questions or marketers, shining a light on
oten misunderstood and undervalued market. Its time to advocate
courageous conversations about race and culture, discrimination a
dierence. When these conversations come out o the shadows, it w
be much easier or everyone to understand that the Black consum
opportunity is ar-reaching, powerul and proftable; and that its n
only in plain sight, but also steeped in insights that will elevate yo
brands total-market perormance. Which brings us back tofuere
owwith an unstoppable, replenishing return on investment.
April 23, 2012
IN PLAIN SIGHT
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
6/31
Despite the severe impact o the Great Recession, the economiclout o Black consumers continues to energize the U.S. consumer mar-
ket. The University o Georgias Selig Center or Economic Growth es-
imates that the nations Black buying power is rising, rom $316 billionn 1990 to $1.038 trillion in 2012 and projected $1.307 trillion in 2017.
The 2000-12 gain o 73 percent in Black spending outstrips the 60
percent increase in White buying power and the 67 percent increase
n buying power o all consumers. In 2012, Black consumers share o
otal buying power is projected to be 8.5 percent, up rom 8.2 percent
n 2000 and 7.5 percent in 1990. That is expected to rise to 8.7 percent
n 2017almost nine cents out o every dollar spent.
The gains in Black buying power reect much more than just popu-
ation growth and ination. O the many diverse supporting orces, one
o the most important is Blacks starting and expanding their own busi-
nesses. The 2007 Survey o Business Owners, released by the U.S. Census
Bureau in June 2011, shows that the number o Black-owned companieswas 61 percent higher in 2007 than in 2002more than three times the
8 percent gain in the number o all U.S. companies. Between 2002 and
2007, the receipts o Black-owned companies grew by 55 percent com-
pared with a 34 percent increase in the receipts o all U.S. companies.
Still another positive actor pushing up the groups buying power
s that Arican Americans continue to experience rising education
evels, which should allow proportionally more Blacks to enter oc-
upations with higher average salaries. Census data show that the
percentage o Blacks 25 years and older who have completed hi
school or college rose rom 66 percent in 1990 to 84 percent in 201
Also, the 2010 Current Population Survey indicates that 20 perce
o Blacks had a bachelor, graduate or proessional degree.Favorable demographic trends also boost buying power. The Bla
population continues to grow more rapidly than the total U.S. popu
tion. From 2000 to 2012, the nations Black population grew by 16 perce
compared with 7.6 percent or the White population and 12.2 percent
the total population. From 2012 to 2017, the nations Black population
projected to grow by 6.9 percent, compared with the 5.7 percent grow
estimated or the total U.S. population. Also, the Black population
younger. The 2010 Current Population Survey estimates the median a
o Blacks is 31.4 years compared with 38.2 years or the White populati
and 36.7 years or the total population. Compared with the older Wh
population, larger proportions o Blacks will be entering the workor
or the frst time or will be moving up rom entry-level jobs. For examp30.9 percent o Blacks are 15 to 34 years old, compared with 26.6 perce
o Whites and 27.4 percent o the total population. This will provide
extra push to the groups overall buying power.
Conversely, smaller proportions o Blacks have reached their care
pinnacles, where the annual percentage increases in wage and salar
oten begin to decelerate, or are o traditional retirement age. In 20
only 8.6 percent o Blacks were 65 years and older, compared with 13
percent o Whites and 12.7 percent o the total population.
Because the Black population is so much younger, Arican-Americ
consumers increasingly are setting trends or youth (and young adul
o every background. This isnt surprising, given that 29.4 percent o t
Black population is younger than 18, compared with 23.3 percent o tWhite population and 24.6 percent o the total population.
This youthul profle does have its downside. Young people, regar
less o race, are more exposed to job losses in economic downturns.
this regard, Black buying power is vulnerable to the eects o recessio
but over time the above-average growth o Black buying power h
more than compensated or that cyclical exposure.
The Opportunity:As Arican Americans share o the nations tobuying power expands, business-to-consumer companies will bene
rom devoting more resources toward developing and marketing produ
that meet the needs and match the preerences o Black consumers.
APRIL 23, 20
BUYING POWERAssumption: More negatively aected by the recession than other population segmentsBlack buying power has been fattened.
BLACK SPENDING POWER 2012: $1.038 TRILLION (+73% SINCE 2000)
iStockphoto.c
om/WDStock
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
7/31
SUPPLEMENT TO ADVERTISING A
APRIL 23, 2012
While marketers have been busy creating strategies to mitigatehe effects of the recent economic downturn, theyve missed oppor-
unities in the African-American market. A closer look at spending
tatistics during this period might have helped some brands ride outhe recession in better shape.
The Bureau of Labor Statistics annually surveys more than
5,000 households nationwide and estimates total consumer spend-
ng by age, race and other demographic characteristics. In its most
ecent survey, with data for 2010, a comparison of Black household
pending over the past five and 10 years shows that Black house-
holds increased their real inflation-adjusted spending since 2005
despite the recession. Their increase in consumer expenditures out-
paced the average for all households both over the past five years and
he past 10 years.
The 2010 BLS survey estimated that 14.8 million Black consumer
units, or households, spent an average of $35,863 each, or a total of$531.5 billion, on a variety of consumer goods and services. Even
after adjusting for inflation over the past five years, that figure was
percent above the total of $515.1 billion for 2005. It was also 12.7
percent above the $471.6 billion in 2000, expressed in 2010 dollars.
By comparison, all U.S. household spending as measured in those
BLS surveys rose 10.6 percent from 2000 to 2010 in constant 2010
dollars, but actually declined 4.2 percent from 2005 to 2010 in con-
tant 2010 dollars.
Black spending exceeds general market in key categories
The BLS 2010 Consumer Expenditure Survey shows that after-tax
ncome of Black consumer units (CUs) was on average equal to 75percent of the after-tax income of all U.S. households, and their
overall spending was, as expected, 75 percent of that for all U.S.
households. But in several categories, Black household spending ac-
ounted for far more than 75 percent.
The Opportunity:Despite lower income levels, Black households spend
nearly as much as the average U.S. household for certain products and
ervices, and in some cases even more. Marketers should target this con-
umer segment understanding that they spend disproportionately to
heir incomes and comparatively to the spending levels of other popula-
ion segments.
SPENDING TRENDS
AVERAGE ANNUAL BLACK CUS NON-BLACK CUS BLACK CUS AS A %EXPENDITURES OF NON-BLACK CUS
Personal CareProducts/Services
525 590 89.0
Housing 14,102 16,899 83.4
Apparel andRelated Services 1,429 1,737 82.3
Cash Contributions 1,334 1,675 79.6
Food 4,796 6,314 76.0
Transportation 5,724 7,950 72.0
Miscellaneous 549 891 61.6
Tobacco Products,
Smoking Supplies
231 380 60.8
Personal Insuranceand Pensions 3,401 5,647 60.2
Health Care 1,734 3,355 51.7
Entertainment 1,352 2,665 50.7
Alcoholic Beverages 203 441 46.0
Gifts for Peoplein Other Households 490 1,105 44.3
Reading 41 108 38.0
Education 441 $1,163 37.9
Personal Taxes 407 1,959 20.8
SUMMARY OF HOUSEHOLD EXPENDITURES BY CATEGORY,
BLACK CONSUMER UNITS VS. NON-BLACK CONSUMER UNITS 20
Source: Bureau of Labor Statistics, 2010 Consumer Expenditure Surveys;New Strategist Publications.
Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2010.
Assumption: Black household spending dropped during the recession at the same rateas the general market.
BLACK CONSUMER UNIT EXPENDITURES AS A PERCENTAGE OFNON-BLACK EXPENDITURES, 2010
Phone services (landline and cellular) ............................................... 10
Auto insurance ................................................................................... 9
Personal care products and services ................................................... 8
Food at home ...................................................................................... 8
Apparel ............................................................................................... 8
Childrens (age 215) apparel ............................................................. 9
Footwear .......................................................................................... 10
Charitable contributions ..................................................................... 8
CATEGORY % OF NON-BLACK SPENDING
525
14,102
1,429
1,334
4,796
5,724
549
231
3,401
1,734
1,352
203
490
41
441
407
590
16,899
1,737
1,675
6,314
7,950
891
380
5,647
3,355
2,665
441
1,105
108
$1,163
1,959
89.0
83.4
82.3
79.6
76.0
72.0
61.6
60.8
60.2
51.7
50.7
46.0
44.3
38.0
37.9
20.8
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
8/31
APRIL 23, 201
Marketers have long held that the auent in the United Statesre more like each other than they are like members o their own eth-
nic groups. From that, they reason that upper-class ($100,000-plus
ncome) Blacks, who make up about 10 percent o the Black popula-
ion, will adhere to the values o their socioeconomic group rather than
hose o their ethnic heritage.
According to data rom the 2011 Mendelsohn Auent Survey, con-
ducted by Ipsos MediaCT, 74 percent o Black auents agreed that my
ultural or ethnic heritage is a very important part o my lie, a sharp
ontrast to the 34 percent o White auents.
Black culture in full effect
Family and religion are pillars o Black culture and are quite rele-
vant to Black auents. Being around amily members and enjoying
hem is a high priority or Black auents. Overall, they are an op-
imistic and happy group, which could be a result o their spiritual
grounding.
enjoy spending time with my amily ................................................86%
My amily is my top priority in lie .....................................................82%
am a very happy person.................................................................. 77%
My cultural or ethnic heritage is a very important part o my lie ........ 74%
am a spiritual person ...................................................................... 73%
am an optimistic person ................................................................. 72%
Being the boss
While they think o themselves as creative people, Black auents are
reative in a disciplined way; they work hard at what they know. That
ort, along with out-o-the-box thinking, makes more than hal o
Black auents sure o themselves as leaders and helpers.
think o mysel as a creative person ................................................59%
spend time researching products and services beore purchasing...........57%
tend to take the lead in decision making .........................................53%
like to oer advice to others ........................................................... 53%
consider mysel an opinion leader ...................................................50%
ts all about the Benjamins
While they are satisfed with how well they are doing fnancially, Black
uents keep their noses to the grindstone to make sure they keep do-
ing well now and or the uture. While they have adjusted their spend
ing because o recent economic conditions, Black auents haven
stopped rewarding themselves or their accomplishments.
I am actively involved in the management o my personal fnances .... 79%
A person is responsible or his/her fnancial security in retirement ...... 68%
Sometimes I treat mysel to something, even though I dont need it... 67%
Though the recession is over, I am still spending cautiously................ 62%
I still have some money let over or a little indulgence ......................60%
I am very worried about the state o the economy .............................60%
I am satisfed with my standard o living ...........................................56%
It is important to me that I make as much money as possible ............ 55%
Image and style
One way Black auents reward themselves is by purchasing qualit
products. This not only brings them pleasure but also defnes wh
they are. Image and ashion are important or Black auents.
I dress to please mysel, not others....................................................81%
When it comes to quality, I believe you get what you pay or ............. 80%
Good value or the money is more important than price ....................70%
Being well dressed is important to me ..............................................64%
My ashion represents who I am as a person .....................................58%
Owning good quality things brings me enjoyment .............................58%
I have an excellent sense o style ......................................................53%
Base: 413 Black adults with household incomes o $100,000 or more.
Mendelsohn Auent Survey, conducted by Ipsos MediaCT.
Insights
In their quest to defne themselves by their style and image, to cel
ebrate lie and to live a spiritual existence, Black auents afrm thei
connection to the basic tenets o Arican-American culture despit
their economic privileges. They are Black frst and auent second.
The Opportunity:Making a powerul connection with this auen
market should include the use o Black cultural flters. Those who continu
to believe that Black auents will respond to general-market advertisin
just like everybody else will miss a key opportunity to engage brand
loyal consumers who enjoy spending substantial amounts o money o
quality products and rewarding themselves and their amilies.
BLACK AFFLUENTSAssumption: Afuent Blacks will adhere to the values o their socioeconomic grouprather than those o their ethnic heritage.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
9/31
Since the release of the 2010 U.S. census, much has been writtenabout the growing numbers of Hispanics and Asians. But what has got-
en lost in the story about Americas multicultural makeup is that the
African-American segment remains an important growth opportunity
or many marketers. A closer analysis of household formation revealsnsights that marketers should consider during planning season.
Household numbers
According to the 2010 census there are 82.3 million non-Hispanic
White households; 14.1 million Black households; 13.5 million His-
panic households; and 4.6 million Asian households out of a total
16.7 million households nationwide. This 2010 census count of
households by race reveals two important considerations about
African-American consumers comparison growth and the absolute
numbers vs. other multicultural segments:
Black household growth has outpaced that of total households in
he U.S. in the last decade (17 percent and 11 percent, respectively). Although Hispanics are the largest minority population segment,
here are actually more African-American households in the U.S.
han any other minority group.
For marketers of household products, goods and services, this
uggests that the African-American market is a growth segment
worth investing in. In that same vein, it is just as interesting how the
omposition of Black households is evolving in terms of size and
ormation.
Household size
While Black households became smaller over the past decade, they
are still slightly larger than the average for total households.Average household size among African Americans was 2.74, ac-
ording to the 2000 census, compared with 2.63 in the 2010 census.
For total households, the numbers were 2.59 in 2000 and 2.58 in 2010.
Some reasons for smaller household size over the past decade
have been the growth in Black married households and the decline
n Black married couples with children. These changes in household
omposition reveal trends that marketers of household products,
urnishings and appliances would be wise to note.
Household formation
A greater percentage of Black households are in their peak household
formation and spending years than are all U.S. households. A so
44 percent of Black households are either Millennials or Gen Xe
compared with 38 percent of all households. The same percentageseach (40 percent) are Baby Boomers, where income peaks. They re
resent a strong block of prime shoppers for various types of produc
The Opportunity:Understanding the census data on African-Am
ican household size, composition and formation outlined above allo
savvy marketers to see trends and growth opportunities as they evolve.
The smaller household size and increase in households without ch
dren translate into more per capita income per household and grea
amounts of discretionary income for goods and services.
The large number of Black households reflects a portrait of evolutio
providing marketers with a pathway toward growth.
APRIL 23, 2012
HOT HOUSEHOLDS
Source: U.S. Census Bureau, 2010 census.
CHARACTERISTICS OF U.S. HOUSEHOLDS, 20002010
Assumption: Black population trends do not represent growth opportunities.
BLACK HOUSEHOLDS ALL U.S. HOUSEHOLD
#HHLDS %TOTAL %CHANGE %TOTAL %CHANG
All households 14.1m 100% 17% 100% 11%
Married w/ children
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
10/310 APRIL 23, 20
be more inclusive and view race as less divisive. This trend towa
inclusiveness is the reason more biracial Millennials are acknow
edging all acets o their identity.
At the same time, similarities exist among Arican America
across generational lines as well because some values speak to ra
more powerully than to age. The generational distinctions amainly the degree to which they hold these values.
Black consumers o all generations have more confdence in
the economy
Black consumers have been more condent about the econom
since the 2008 presidential election. At the time o the election, Bla
Millennials were the most condent generation. Fueled by Bara
Obamas message o hope and change, they believed the electi
meant that race no longer mattered.
Older generations, especially those o the Civil Rights era, re
ized that President Obama was an ally and a champion who ga
The shared connection o Black history, culture and experienceorms a uniying bond that spans all age groups among Arican Amer-
cans, but major social, political, economic and technological changeshave impacted the worldview o each generation o Blacks, and mar-
keting messages must refect this to be eective.
The pre- and post-Civil Rights mind-set
Some generational dierences transcend race. For example, all Mil-
ennials grew up in a more technologically advanced society com-
pared with their Baby Boomer parents. They were exposed to an
ver-expanding variety o media at a much earlier age and to a sig-
nicantly greater degree. Among Arican Americans, there is also a
notable dierence in viewpoint on race and on society at large be-
ween those born beore the Civil Rights Movement (prior to 1964)
and those born ater. Black Boomers are the last generation o A-ican Americans to have personally experienced legal segregation.
By the time Black Gen Xers reached school age, many o the gains
o the Civil Rights Movement were in place. School segregation was
virtually over. There were Black mayors and members o Congress,
and Black college enrollment was climbing. Post-Civil Rights Black
women have also beneted rom the gains made by the womens
movement, such as increased access to managerial and executive-
evel positions in the corporate world.
Growing up in an era o reedom rom the oppressive impact o
im Crow laws in the South or the more subtle segregation and at-
itudes o the Northeast and Midwest granted both Black Gen Xers
and Millennials a level o inclusion and access previously unheard o,and gave them a dierent view o their place in the world as a result.
Author and researcher Pepper Miller highlights signicant dier-
nces in attitudes and belies between pre- and post-Civil Rights Ari-
an Americans (see table).
Both generation and race provide important insights
Generational dierences in attitudes and belies among Arican
Americans can be as signicant as the variations o acculturation in
he Hispanic market. For example, while pre-Civil Rights era Arican
Americans tend to be more race-ocused in their interpretation o
world and national events, the post-Civil Rights generation tends to
GENERATION GAPS
Politically aware; largest group o
political activists
Moderate to high desire or instant
gratifcation
Race and racism very top o mind
Strongly against Arican-American
stereotypes in the media
All-Black cast very important, very top
o mind
Involvement in political process
becoming more importantcelebr
involvement may be a actor
Highest propensity or instant grati
fcation
Higher propensity or inclusion; larg
est segment o sel-described bi rac
Most likely to fnd some Arican-
American stereotypes humorous or
nonthreatening
All-Black cast important but least t
o mind
Pre-Civil Rights(born 19401960)
High hopes or another Dr. King
Maintaining culture is most important
Post-Civil Rights(born 1960present)
Dr. Martin Luther King Jr., who?
Culture is important; liestyle is also
important
Assumption:The African-American population is homogeneous, and age does notmatter in marketing to these consumers.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
11/31
hem hope that things would get better. Their confidence has grown
based on events outside themselves, such as the resurgence of the
auto industry and new health care laws.
By 2012, Black Millennials had the lowest level of confidenceamong Blacks. Now faced with high unemployment, student loan
debt and a divided political environment, some Black Millennials have
become discouraged. While job prospects for many are bleak, disap-
pointment among Millennials may be somewhat reflective of unreal-
stic (or uninformed) expectations of the presidents ability to effect
hange rather than disillusionment with the man himself.
Although Black Millennials have the lowest level of confidence
among Black generations, it is still significantly higher than that of
he general population.
Black Millennials still plan to spend
Black consumers are more likely to make big-ticket expenditures inhe next six months compared with non-Black consumers regardless
of generation. Black Millennials and Gen Xers are most likely to plan
a major purchase within the next six months, even though Millennials
had the lowest level of consumer confidence. Higher purchase intent
of big-ticket household items among the younger cohorts is attribut-
able to first-time household formation, while lower levels of purchase
ntent among Black Boomers reflects the fact that they already own
urniture, appliances, electronics and computers.
Aspiration
Black adults 18 and older are more likely to view aspiring to get
ahead and having material possessions, a lot of money as very im-
APRIL 23, 2012
CONFIDENCE AMONG CONSUMERS, 2008 VS. 2012
ource: BIGinsight Monthly Consumer Survey, November 2008 and January 2012.
NOVEMBER 2008 JANUARY 2012
BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS
Generation Y63.9 38.2 54.2 39.3(Millennials)
Generation X 47.2 25.1 60.0 32.4
Baby Boomers 41.8 16.7 54.9 25.3
Silent Generation 29.6 16.1 58.7 25.9
MAJOR PURCHASE PLANS IN THE NEXT 6 MONTHS (PERCENTAGE BY GENERATION)
ource: BIGinsight Monthly Consumer Survey, January 2012.
portant compared with non-Black adults regardless of age group. A
cording to research conducted by GfK MRI in 2011, although mo
Black Millennials than Black Boomers value aspiring to get ahead
Millennials values are actually more in line with non-Blacks in th
own generation (a 3.7 percentage point difference). By contrast, Bla
Boomers believe that aspiring to get ahead is very important at a s
nificantly higher rate than non-Black Boomers (14.4 percentage po
difference and 13.3 percentage points for the Silent Generation).
Despite these differences, messages targeted to the African-Ame
can market that focus on aspirational themes will be successful acro
all generations.
In general, however, it is important for programmers and markers to put some thought into messages intended to appeal to the ent
segment. While an all-Black cast in a TV show or commercial may
important to Boomers, a Black cast alone probably wont be enou
to engage a Gen Xer or Millennial. A commercial or program that u
race-based humor may not raise the eyebrows of most Black Gen X
but could infuriate Black Boomers.
The opportunity:Black attitudes and beliefs vary widely between
generations in many cases. Although Black audiences share cultural a
historical insights, it is vital when targeting African Americans to dete
mine if generational differences in attitude could impact the effectiven
of advertising messages or programming appeal.
COMPUTER MOBILE DEVICE TELEVISION FURNITURE HOME APPLIANCES
BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULT
Generation Y 27.4 21.8 24.2 14.4 23.5 15.6 22.1 14.6 16.2 10.1(Millennials)
Generation X 28.4 20.0 15.7 10.2 22.9 14.8 25.4 15.8 16.5 10.8
Baby Boomers 18.1 12.5 9.0 4.0 13.8 10.5 12.2 8.5 9.9 6.6
Silent Generation 13.7 9.3 6.8 1.4 9.1 6.2 14.8 4.6 6.9 4.5
BASE: 52,027 adults, 18+, weighted to population (000).Source: 2011 GfK Roper Values.
BABY SILENTMILLENNIALS GENERATION X BOOMERS GENERATIO
ASPIRATIONAL VALUES OF ADULTS 18+, BLACK VS. NON-BLACK, 2011
COMPARISON OF VALUES RANKED VERY IMPORTANT
NON- NON- NON- NONBLACK BLACK BLACK BLACK BLACK BLACK BLACK BLAC
% % % % % % % %
Aspiring to getahead
Having materialpossessions,a lot of money
NON-BLACK BLACK
% %
NON-BLACK BLACK
% %
NON-BLACK BLACK
% %
NONBLACK BLAC
% %
73.0 69.3 68.1 62.3 65.1 50.7 51.8 38.
49.5 38.9 45.6 37.1 44.8 34.0 38.1 27.
SUPPLEMENT TO ADVERTISING A
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
12/31
2 APRIL 23, 20
Many marketers have consistently thought o the Black consumeras ercely quality-conscious and subsequently brand loyal. From this,
heyve reasoned that i a brand could make inroads into the segment,
hen it could count on having customers or lie. On the other hand,Arican Americans also have been acknowledged as early adopters o
brands and trends in many product categories. Add to that the nd-
ngs that the Black consumer is price-conscious, and the resulting
quation produces a conundrum: How can a consumer be loyal to
quality brands yet also be an early adopter when something new and
nteresting comes along, all the while looking or the best deal? What
xactly is the Black consumer market loyal to?
According to researcher and author Pepper Miller, president o the
Hunter-Miller Group, Arican Americans have identity-shaping rela-
ionships with brands. In Ipsos Mendelsohns 2011 study about afu-
nts, 58 percent o afuent Blacks agreed with the statement, My ash-
on represents who I am as a person. Similarly, in the 2011 AmericanPantry Study: The New Rules o the Shopping Game, a CPG study by
Deloitte and Harrison Group, 53 percent o Blacks said brands can say
a lot about who they are (vs. 39 percent o total shoppers). Even during
he recession, when consumers were tightening their belts, the Eects
o the Recession on Brand Loyalty and Buy-Down Behavior study
by comScore (October 2011) ound 54 percent o Arican-American
women saying they buy the brand that I want most, compared with
42 percent o White women.
Brand names equal quality
These higher levels o anity with brands are seen across all Black
generations when compared with non-Blacks. GK MRI data revealhat Black consumers are 24 percent more likely than all consumers
o agree that I would pay extra or a product that is consistent with
he image I want to convey, and that Blacks are 17 percent more likely
o agree that Brand name is the best indication o quality. For many
Blacks, brand names not only ensure a higher level o quality but also
make a statement about the person who buys them. Black consumers
are invested in quality brands that represent the type o image they
want to project to the world. In other words, Black consumers are not
oyal to a brand per se, but rather to the image o a brand that they
nd compatible; thus, it is the relationship that inspires their loyalty.
The Burrell: Project 40 study conducted by the Futures Co. notes,
Arican-American values uel purchase decisions. Black consum
look or products that strengthen and refect their core cultural valu
pride, legacy, perseverance, originality, independence, sel-esteem, c
ebration o lie and responsibility.
Blacks as trendsetters
So what happens when another brand comes along with an ima
that is more compatible with a Black consumers sel-image? In t
2005 book Whats Black About It? Insights to Increase Your Share
a Changing Arican-American Market, co-authors Pepper Miller a
the late Herb Kemp review Black consumer market data rom a nu
ber o categories and conclude, Arican Americans are more lik
than Whites to be among the rst to set new trends and to considthemselves on the cutting edge. This clearly indicates that market
should not take Black consumer loyalty or granted, as Arican Ame
cans are inclined to adopt new trends and switch brands.
According to MRI, the Black consumer market is 36 percent mo
likely than the general consumer market to change brands oten
the sake o variety and novelty, perhaps wanting to align with an im
age that better refects who they are. For example, an Ipsos OTX stu
commissioned by Google with GlobalHue, called Five Truths o t
Digital Arican-American Consumer, notes, Arican Americans
early adopters [o digital] and are more likely to watch video onli
and to access online content via smartphones and other alternat
LOYALTY LIMITSAssumption: If a brand can make inroads into the segment, then it can count on havingthese customers for life.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
13/31
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
14/31
Smart marketers make sure their brands are available where con-umers are, so when the customer moves, the brands follow. The 2010
ensus confirms that multicultural segments are on the move, and the
Black consumer segment is making two big shifts.
First move: A return to the South
Perhaps the largest internal migration in American history was the
arly 20th century movement of African Americans from the rural
South to the urban Northeast and Midwest. The 2010 Census con-
firms that in many respects that migration has been reversing. Over
he past decade, Blacks have been moving from the urban Northeast
and Midwest to the suburban South and West.
Black households have been increasing far faster in the South and
lightly faster in the West than in the other two regions. Nationwide
here were 2 million more Black households in 2010 compared with
2000, and two-thirds of those new Black households (1.4 million)were created in the South.
This movement of Black households to the South is a strong indi-
ator of both present and future income growth for these households.ob growth is higher in the metropolitan areas of Southern states, and
he cost of living is less than in the Northeast and Midwest.
Second move: From urban to suburban
ust as important as the regions Blacks have moved to in the past de-
ade is that not all Black consumer growth is occurring in metropoli-
an areas. Importantly, two-thirds (67 percent) of that metropolitan
growth in Black households and adults occurred in the suburbs.
This movement to the suburbs by Black households is significant
or a number of reasons. The most important is that a typical sub-
urban Black familys median income is 41 percent higher than that
of a Black family living in the city and 76 percent higher than f
a typical Black family living outside a metro area, according to t2010 American Community Survey.
A second reason this is significant is that in the suburbs, a majo
ity (52 percent) of Black households own their homes, while in cit
just 36 percent are homeowners. Between 2000 and 2010, Black hom
owners in suburban areas rose 35 percent compared with a 4 perce
increase in cities and a 15 percent drop in nonmetro areas.
A third reason is that suburban Black households are more likely
be married couples, the vast majority with two income earners. In m
ro suburban areas, 36 percent of Black households are married coup
compared with 23 percent in cities and 29 percent in nonmetro are
The Opportunity:As Black consumers trade urban for suburban, topens opportunities for marketers in a number of categories.
Transportation: Many urban dwellers traditionally did not have c
and instead used public transportation. In suburban surroundings, a c
is a necessity.
Home furnishings/appliances/electronics: The move into new hom
or even apartments larger than their previous urban dwellings establish
a need for furniture, appliances and, of course, electronics.
Supermarkets/food warehouses/clubs: Consumers living in urb
areas typically do not have access to large supermarkets and food clu
The shift to the suburbs allows Black consumers the opportunity to shop
these stores and subsequently buy more.
TRADING PLACES
4 APRIL 23, 20
Change
2000 to 2010 # mm % # mm % # mm %
Black adults 1.5m +12.0% 3.0m +38.3% 0.2m 6.0%
Black hhlds 0.7m +10.9% 1.5m +37.7% 0.1m 6.5%
METRO CITIES METRO SUBURBS NON-METRO AREA
Number of Black adults 19.48 million 15.21 million 4.24 million
(2010 Census)
Number of
Black households 7.37 million 5.30 million 1.45 million(2010 Census)
MOVES BY BLACK CONSUMERS 2000 TO 2010
Assumption: Blacks are only located in urban areas, so marketers should concentratetheir efforts there.
Source: 2000 and 2010 Census.
mm
3.0m +38.3%
1.5m +37.7%
CHANGES IN BLACK HOUSEHOLDS BY REGION, 20002010OTAL BLACK HOUSEHOLDS IN THE U.S.: 14.13 MILLION
ource: 2000 and 2010 Census.
NORTHEAST MIDWEST SOUTH WEST
Hhlds. millions 2.33 2.57 7.98 1.25
Number (000)
and increase 227 10.8% 285 12.5% 1,400 21.3% 163 15.1%
2.33
227 10.8%
7.98
1,400 21.3%
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
15/31
SUPPLEMENT TO ADVERTISING A
U.S. Metro Areas With the Largest Black Populations
The list of the top metro areas with the largest Black populations
over time shows the reascendance of the South. New York continued
o hold its top ranking due to its long history as a magnet for Blacks,
despite Black out-migration in recent decades.
For the first time, metropolitan Atlanta registers the countrysecond-largest Black population, up from No. 4 in 2000 and No. 7 in
990. This shift is as symbolic as it is real, since Chicago was the cel-
brated destination of Southern Blacks for much of the great migra-
ion period early in the last century. Miami, Houston and Dallas also
APRIL 23, 2012
KEY MARKETS
moved up the rank in 2000.
Shifts in the metro areas experiencing the largest gains in Bla
population also point southward. Atlanta holds the top spot in bo
decades, gaining more Blacks from 2000 to 2010 than the secon
and third-ranking metro areas (Dallas and Houston) combined.
three New South metro areas underscore the draw of economicaprosperous areas. Charlotte, N.C., and Orlando, Fla., also mov
into the top seven metro areas for Black population gains. Minn
apolis-St. Paul ranks No. 9, partly by virtue of its role as a growi
resettlement and population center for immigrant Somalis.
METRO AREAS WITH THE LARGEST BLACK POPULATIONS INCREASE OF BLACK POPULATIONS IN METRO AREAS
1 1 Atlanta ........................................................473,49
2 5 Dallas ...........................................................233,89
3 7 Houston .......................................................214,92
4 3 Miami .........................................................191,65
5 4 Washington, D.C. ................. .................. .......155,648
6 15 Charlotte .....................................................121,52
7 11 Orlando ........................................................100,60
8 8 Philadelphia ..................................................93,16
9 16 Minneapolis ..................................................83,46
10 28 Phoenix .........................................................80,31
RANK RANKIN 2010 IN 2000 METRO AREA BLACKS 2010
RANK RANKIN 2000S IN 1990 METRO AREA TOTAL CHANGE, 2000-201
ource: Brookings Institute. Source: Brookings Institute.
2 5 Dallas ................ .................. .................. ....... 33,89
3 Miami ......................................................... ,
15 Charlotte ..................................................... ,
8 Philadelphia .................................................. ,
ource: UGA Selig Center.
TOTAL SHARE OF BLACK BUYING POWER IN 2012ARGEST U.S. MARKETS BY BLACK SPENDING POWER
1 New York .............................................. .......................... ....$94.9
2 Texas ....................................................................................$85.7
3 California .............................................................................$76.7
4 Florida .................................................................................$74.4
5 Georgia ...............................................................................$73.4
6 Maryland .............................................................................$63.4
7 North Carolina ....................................................................$48.1
8 Illinois .................................................................................$46.6
9 Virginia ...............................................................................$44.9
10 New Jersey ..........................................................................$40.0
RANK STATE DOLLARS (IN BILLIONS)
Texas ....................................................................................$85.7
4 Florida .................................................................................$74.4
Maryland .............................................................................$63.4
Illinois .................................................................................$46.6
10 New Jersey ..........................................................................$40.0
District of Columbia ..............................................................................26.1
Mississippi ............................................................................................23.5
Maryland ..............................................................................................23.1
Georgia ................................................................................................21.8
Louisiana ..............................................................................................19.7
South Carolina ......................................................................................17.7
Alabama ...............................................................................................17.4
Delaware ..............................................................................................15.3
North Carolina ......................................................................................14.6
Virginia .................................................................................................12.9
STATE PERCENTAGE
Source: UGA Selig Center.
Mississippi ............................................................................................23.5
Georgia ................................................................................................21.8
South Carolina ......................................................................................17.7
Delaware ..............................................................................................15.3
Virginia .................................................................................................12.9
10 28 Phoenix ......................................................... ,
1 1 New York .................. ................... ........... 3,044,096
2 4 Atlanta .....................................................1,679,979
3 2 Chicago....................................................1,613,644
4 3 Washington, D.C .....................................1,409,473
5 5 Philadelphia ............................................1,204,303
6 8 Miami .....................................................1,096,536
7 9 Houston .................. .................. .................. 998,883
8 6 Detroit ................. .................. ................... .. 972,689
9 10 Dallas .................. .................. ................... .. 941,695
10 7 Los Angeles .................. ................... ........... 859,086
The widespread African-American market
One characteristic that sets the African-American consumer market
apart from the Hispanic and Asian markets is that it is not concentrat-
d in a handful of states. This vibrant consumer market is widespread,
and therefore is an attractive customer segment in many states.
In 2012, of 10 states with the largest African-American mark
(listed above), Maryland, North Carolina and Georgia are the on
ones that did not rank among the top 10 markets for all consume
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
16/31
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
17/31
Supplement to AdvertiSing A
8 April 23, 20
s America today a melting pot, where dierences are blendednto one homogeneous soup, or a tossed salad, where dierent veg-
tables maintain their individual color, avor and texture, but coex-
st deliciously? Thats at the core o the current debate over a mul-
icultural vs. cross-cultural marketing-communications approach.But when you compare these conicting segmentation strategies,
you fnd the debate really comes down to the signifcance o culture
as a major demographic actor and a driver o decision making:
n The multicultural approach distinguishes consumer segments by
ultural actors in addition to other segmentation actors. It sug-
gests that cultural dierences aect consumer decision making and
onsumption behavior, so the marketing stimulus should be de-
igned to leverage cultural insights to eectively motivate consumer
behavior.
n The cross-cultural strategy suggests combining cultures within a
egment, as opposed to separating by culture. It increases the diver-
ity within segments, reduces the number o segments and suggestshat leveraging unique cultural insights is not as eective in motivat-
ng consumers.
For advertisers, the cross-cultural strategy gives permission to
adopt a cost-efcient, one-size-fts-all marketing-communications
approach. But while it might seem to oer better reach metrics, it
wont be eective or connecting with targets whose identities are
losely tied to a specifc culture or race; they may even view such
an approach as personally diminishing and politically incorrect. A-
ican Americans are clearly this kind o target group, as race and
ulture defne who they are and strongly aect their behavior. Con-
rary to the idealized notion that we should aspire to a more ho-
mogeneous society, a new study by Burrell Communications showsArican Americans remain culturally distinct at the deepest, most
mportant levels and this distinction aects how they view the
worldwho they trustwhat organizations they belong towhat
hey buy, read, record, save, sur, connect with.
Can you blend the Black?
Arican Americans bear a visible dierence that loudly announces a
unique history, experience and cultural behavior. The U.S. govern-
ment recognized this proound distinction when President George
W. Bush signed into law the establishment o a National Museum
o Arican American History and Culture. Black culture cannot be
blended with other cultures because o the massive distinctions ro
the American majority. Arican Americans view the world throug
historical and cultural lens that reinorces them as culturally di
ent citizens and consumers.
With dierences that are visible, historical, social, geographic aexperiential, the insights that motivate and aect behavior are al
distinctive. Considering the magnitude o these dierences, cro
cultural attempts to blend the Black are at best challenging and
worst utile.
These additional Burrell: Project 40 fndings reinorce the d
tinction o being Black in America:
n 73 percent o Arican Americans age 16 to 24 agree that their ro
and heritage are more important to them now vs. fve years ago.
n 88 percent o Arican Americans agree that discrimination is s
part o their day-to-day lives.
n 85 percent agree that being part o the Black community is e
tremely important to them.Cultural and racial dierences cant be erasedand shouldnt
dismissed by marketers hoping or expedient solutions. With a str
egy segmenting people by culture, advertisers can leverage cultu
insights to create more engaging messaging or any given target.
At the same time, segmentation in marketing does not sugg
that dierent cultures dont interact. The prolieration, popular
and acceptance o dierent cultures in the U.S. are visible in the
creasingly wide range o ethnic eateries, music, popular media a
entertainment.
The growth trends in diverse ood, music, entertainment a
media consumption punctuate increasing cultural dierences
the general population; the more variety, the better. It seems thincreasing desire or and general acceptance o diversity is drivi
growth in these various areas. So why are we debating the impo
tance o culture in marketing segmentation?
The Opportunity:Segmentation is an effective strategy when it
lows the advertiser to have a more insightful, more relevant, mo
meaningful connection to target consumers. For certain consum
segments, culture is a huge part of their identity. To ignore distin
tive cultures is commensurate with not recognizing those consume
This is the case for African Americans. Culture is too important to
ignored.
THE GREAT DEBATEAssumption: The fewer cultural segments, the better in multicultural marketing.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
18/31
Introducing ASPIRE, a new television
network created by legendary athlete
and entrepreneur, Earvin Magic Johnson.
ASPIRE celebrates the African Americanexperience. Its a channel that creates
opportunity for new voices, new vision
and the next generation of ground-breakers
and game-changers.
Our past. Our now. Our next.
This is ASPIRE.
DIFFERENT
STARTSNOW
Comi
ngTo
Telev
ision
Summer20
12
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
19/31
Never before has reaching the Black consumer been so critical
or marketers. In 2011, advertisers spent $2.114 billion to reach the
African-American audience through targeted media, according to
Nielsen Co., a 4.9 percent increase over 2010 spending.Some companies stand out for their efforts in advertising to the
Black consumer and inspiring confidence and loyaltyincluding
Coca-Cola Co., Ford Motor Co., General Mills, McDonalds Corp.,
Procter & Gamble Co. and State Farm.
On the following pages, top marketers from these leading com-
panies talk about why the African-American market is so important
o their brands. They offer lessons theyve learned about reaching
his key audience, including the value of understanding their cul-
ural touch points and relating to Black consumers specifically. In
addition, they talk about campaigns that have worked and why
and how these efforts have gone on to win over the general market as
well, demonstrating the expanding cultural influence of the African-American audience.
In addition, each consumer category includes a list of the top 10
advertisers by spending to the Black audience in that category, offer-
ng an insight on which companies are working to reach this market.
The Black consumer market is a thriving, growing segmentand
one that spends well for what it wants and needs. Marketers that
heed the advice of the experts have much to gain, as the following
figures demonstrate:
0 APRIL 23, 20
MARKETERINSIGHTS
Total Household Consumer Expenditures ....................................$1,381,480Apparel..............................................................................................65,083
Automotive (Purchases/Repairs) ........................................................84,469
Beverages at Home ..............................................................................8,903
Entertainment ....................................................................................53,925
Food & Beverage at Fast Food Restaurants .........................................40,466
Food at Home ....................................................................................99,915
Insurance .............................................................................................9,141
Personal Care Products & Services......................................................20,501
Transportation..................................................................................230,429
Vehicle Insurance ...............................................................................34,193
CATEGORY SPENDING PER HH
ource: Geoscape Consumer Spending Dynamix.
Apparel..............................................................................................65,083
everages at ome ....................... ......................... .......................... ....8,903
Food & Beverage at Fast Food Restaurants .........................................40,466
Insurance .............................................................................................9,141
Transportation .................................................................................230,429
BLACK HOUSEHOLDS LIFETIME CUMULATIVE SPENDING
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
20/31
Supplement to AdvertiSing A
April 23, 2012
AUTOMOTIVE
MARKETER INSIGHTS
Arican Americans have traditionally been an
important source o sales or our truck products
and, more recently, our cars. They overindex on
vehicle purchases, and weve spent incremen-
tal marketing resources to reach out to them.
Weve had an Arican-American agency partner
or more than 20 years.
But theres more to it than that. The Arican-American community has
een a big part o Ford or a long time. Weve been very inclusive as aompany, starting in the 1920s and 30s when we expanded our hourly
workorce and many people moved rom the South to the Midwest to build
nd engineer our products. So the Arican-American market is more than
math to us. Its part o the abric o Ford, part o our DNA. During the fnan-
ial crisis o 200809, many o our competitors walked away rom discrete
dvertising to the Arican-American community, but Ford never wavered.
Our marketing to Arican Americans in recent years has really been in-
ovative; it has tried new things that have since moved into the general
market. Traditionally, Ford has not really ocused on celebrity spokespeople.
But our relationships with Tom Joyner and Steve Harvey have worked a new
muscle or us: Theyre very authentic to the Arican-American audience, and
hats part o the appeal o Ford. Working with them has taught us a lot,nd now were applying those lessons learned in the general market.
The most important tip I can give advertisers is to be authentic. Authen-
city is the currency o eective communications. You need to develop a gen-
ine relationship with the consumer. You cant take a cookie-cutter approach.
hose who have, have ailed miserably.
In the last three or our years whats been dierent about our market-
ng eorts to Arican Americans are the digital and experiential activities. A
ersonal avorite campaign o mine is one we did at the BET Awards last
une. Consumers registered ahead o time and were notifed via Twitter o
special hashtag to use during the ceremony or a chance to win a Ford
ocus. It was crazy popular and showed that we understood how highly en-
gaged the community was with this marquee event and with social med
One o our most popular campaigns with dealers and consumers wa
TV commercial or the new Ford Explorer with comedian Kevin Hart. It w
developed or Arican-American audiences, but [then] we used it or t
general marketit was one o our key ads or the Explorer launch.
Our new launch o Ford Escape had initially not been part o the Arica
American marketing mix; then we decided to add Arican-American cultutouch points such as the BET Awards, the Essence Music Festival and t
Steve Harvey Hoodie Awards. Everything we do with our agency now go
through the flter o being culturally relevant.
We use a number o third-party resources to measure the eectiv
ness o campaigns and ROI, and we have a Ford Arican-American quarte
tracking study with consumers. Whats more important, though, is our su
port or historically Black colleges and universities and or Steve Harve
Hoodie Awards, now in its 10th year o recognizing neighborhood lead
across the United States.
Its that kind o handshake, not the graph or the data, that I care abo
Its what makes Ford dierent.
Leading automotive advertisers
spending to BLack consumers (using targeted media)
General Motors Corp. . .............................................$19,206.344
Fiat ..........................................................................$17,734.568
Toyota Motor Corp. .................................................$16,224.727
Ford Motor Co. ........................................................$15,104.724
Nissan Motor Co. ......................................................$6,844.588
Hyundai Motor Co. .....................................................$4,212.570
Kia Motors Corp. .......................................................$3,343.556
Bayerische Motoren Werke AG ..................................$2,369.749Honda Motor Co. .......................................................$2,252.698
Volkswagen AG .........................................................$1,716.044
Source: The Nielsen Co.
Bl lly l by l w x x (27.4 ) ll l 18 l (16 ). Big
Parent ComPany 2011 $(000J Fly
Group VP-Marketing, Sales & Service
Ford Motor Co.
Lessons From the Leaders: Ford
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
21/31
2 APRIL 23, 20
FOOD
MARKETER INSIGHTS
Its hard to imagine the American cultural land-
scape without the inuence and impact o A-
rican Americans. They represent all the iconic
cultural markers o our society: business, music,
entertainment, ashion, sports, government,
education. In every aspect theyre seen as cul-
ural thought leaders.
Marketing to Arican Americans will only increase because demograph-
cs show that they continue to grow as part o the American mosaic. Andheir inuence continues to grow, too. We want to partner with them as
market leaders.
Data show that Arican Americans are incredibly brand loyalmuch
more so than the general marketand they place a high value on brands.
hey use brands more as a badge than other market segments.
We were doing dedicated Arican-American market ads or Cheerios
when I managed that brand some 15 years ago. We did a amous spot,
Quiz, where an Arican-American kindergartner was learning the state
apitals with his mom and dad. We started out thinking it would be a tar-
eted ad but tried it in the general market at the same time, and it proved
o be a great spot or the entire brand. It was a unique ft or Cheerios:
imple and undamental. Since then we have been doing dedicated radiond TV or Hamburger Helper and have been very hands-on in the com-
munity and on TV or Honey Nut Cheerios, a brand that has resonated with
Arican Americans.
My advice to marketers seeking to connect with Arican-American con-
umers is to think o them as lead consumers to inuence your market. You
can start to market their ideas to the general market; they can inuen
an entire campaign i you get close to them. Although they represent
percent to 13 percent o consumers, their inuence on consumption canmuch bigger than that. You can do brand campaigns with Arican Ame
cans at their heart that can drive the entire business.
The Yoplait Light Curves spot we did with Burrell Communicatio
that targeted Arican-American women was rooted in cultural perspectiv
it was less about being an ideal size and more about celebrating me and
unique inner and outer beauty. It also did well in the general market. W
doesnt want that kind o personal afrmation?
Burrell also helped us launch Pillsbury Grands! Biscuit Sandwiches w
Arican-American consumers as the brand champions who could inuen
the general market. The campaign eatured custom music by gospel gro
Mary Mary and a lot o digital and social media aspects, including a s
prise event at Chicagos Union Station, integrations on Wendy Williamin-store activities and an activation at Steve Harveys Hoodie Awards, wh
recognizes businesses and proessionals across the nation that serve th
communities.
Sometimes we have very specifc campaigns within broader progra
like Box Tops or Education to target the Arican-American community, su
as our recent Education Town Hall at Morehouse College in Atlanta, host
by Steve Harvey and Susan L. Taylor.
We believe that i you root yoursel in the Arican-American culture a
understand and value those rituals, customs and institutions, you can u
that knowledge to help tell your brand story and engage consumers.
We do metrics, as most big advertisers do. But i youre close to t
community, especially with social media, you see comments about yowork show up right away i its relevant and it resonates. Even beore d
tal and social media, with Cheerios Quiz spot, we immediately hea
Arican-American key inuencers mention how afrmative and positive
was. Besides the numbers, that told us it was a good ft or the brand. W
knew it was working.
Black a m likly c a fz f ba a ba I u(50 pc) a all aul 18 a l (44.4 pc). BIGiig
Mak Aick
CMO
General Mills
Lessons FroM the LeAders: GenerAL MILLs
We believe that if you root yourself in the African-American culture andunderstand and value those rituals, customs and institutions, you can use thatknowledge to help tell your brand story and engage consumers.
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
22/31
Supplement to AdvertiSing A
April 23, 2012
BEVERAGE
MARKETER INSIGHTS
The Coca-Cola Co. has been marketing to Ari-
can Americans since the 1930s. Its amazing to
see the eorts and leadership marketing cam-
paigns that were executed in the 40s and 50s.
From our partnerships with Arican-American
business and entertainment icons to our pres-
nce and support o historically Black colleges and universities, Coca-Cola
Co., and, specically, Brand Coke, has always been about optimism and
onnection, and that has played true in relation to Arican Americans ormany years.
Arican-American consumers are important to us or a variety o rea-
ons. The growth in population trends along with their current contribution
nd uture expected growth across our sparkling and still brand porto-
o make them an important and viable consumer segment. In addition,
Arican-American consumers continue to play a signicant role in dening
merging and pop culture, which is oten adopted by the broader consumer
market. To that end, were always mindul o their infuence and look to
hem or trends, especially or youth and the Millennial consumer.
We like to think o ROI as return on infuence. I your brand is truly
dopted by Arican-American consumers, the trajectory o the brand in ap-
ealing to a broader audience will advance above and beyond any invest-ment you can make in the marketplace.
Our key strategy in reaching Arican-American consumers has been a
wo-pronged approach. The rst prong is breadthidentiying the univer-
al insights and values that connect and resonate with all consumers. The
econd prong is depthbeing very surgical and precise to connect with
Arican-American consumers based on a unique cohort insight or passion.
We call this The And Eectyouve got to go broad and deep to build
dvocacy with consumers.
Were proud o the smartwater campaign we launched eaturing British
ctor and Golden Globe winner Idris Elba. He embodies all the characteris-
cs o the smartwater brand. The eedback and level o consumer engage-
ment have been signicant.
We also launched our Pay It Forward campaign as part o Black His
ry Month. Built on a simple premise, that we all are responsible or adva
ing the next generation, our Pay It Forward campaign provides deserv
youth with an opportunity to experience a summer apprenticeship with
current celebrity or business leader and encourages others to do the sam
We have very disciplined metrics and measurement tools that give insight on whats working and not working. But the best way to know
youre successul is to listen to consumers. I theres a lot o social co
mentary, we listen to thatits real time, and i were not connecting we
able to make adjustments.
Its an exciting time to be in this industry. There have been so ma
shits in the consumer landscape and in consumer thinkingconsum
are much more engaged with brands today. But things are moving so
that just when you think you understand Arican-American consumers, y
dont. You cant be ormulaic when targeting Arican Americans or a
other consumers; you need to relentlessly seek to understand and purs
them. You have to always assume that things are going to change.
Leading ood & beverage advertisers
spending to bLack consumers (using targeted media)
Hershey Co. .............................................................$21,291.060
General Mills ...........................................................$16,003.483
Pepsico Inc. .............................................................$12,573.061
Kraft Foods ..............................................................$10,816.035
Nestl .....................................................................$10,296.800
Procter & Gamble Co. ................................................$9,776.444
Coca-Cola Co. ............................................................$9,187.597
Mars Inc. ...................................................................$8,790.566Kellogg Co. ................................................................$8,352.461
Dr Pepper Snapple Group ..........................................$6,074.247
Source: The Nielsen Co.
bl lly l f w (73.9 ) w -bl (56 ). big
Parent ComPany 2011 $(000kly p
Assistant VP-African-American Marketing
Coca-Cola Co.
Lessons rom the Leaders: coca-coLa
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
23/31
4 APRIL 23, 20
INSURANCE
MARKETER INSIGHTS
State Farm is a 90-year-old company that has
been serving Arican-American consumers or
90 yearsour products and services are de-
signed or all markets. Multicultural consumers
are growing in numbers across the country and
are very important to us. We take pride in having
gents o all ethnicities who make sure customers needs are met in insur-
nce and fnancial services. It helps that our agents are culturally relevant to
he communities they live in and serve: Theyre members o the churches theirustomers attend. Their kids attend the same schools.
The Arican-American community is a very loyal one. I you get an A-
can-American customer, hes likely to stay with you, and his children and
randchildren will do business with you. So its a long-term relationship
were building.
To do that, we try to relate and connect to consumers in the commu-
ities we serve. We align ourselves with the needs and passions o the
ommunity. We sponsored the initiative The 50 Million Pound Challenge,
bout losing weight and getting healthier, and 26 Seconds, about how
ne student drops out o high school every 26 secondsmany o them
n urban areas, which means a lot in Arican-American communities. We
ponsor the Essence Music Festival in New Orleans over the Fourth o July.Currently, our corporate theme is Get to a better state through improve-
ments in health, education and fnanceand thats being put into practice
y our agents in every community.
My advice to advertisers is to know the market and understand the
ultural cues and passion points o the market. But you must be authen-
cpeople will recognize a ake. Customers in every ethnic community
now and see their State Farm agents all the time, so that authenticity is
here or us.
Our 26 Seconds campaign is not directly targeted to Arican Ameri-
ans, but it certainly is resonating with them across TV, print and a large on-
ne presence at 26seconds.com. Since its targeted to high-risk kids in high
school, a lot tend to come rom multicultural communities. When we run t
commercials, we see a great amount o activity on the website; organiz
tions get in touch wanting to be involved and helpthey see this campai
making a dierence and want to get on board. Ace Metrix told us that o
Wake Up commercial or 26 Seconds was the second-best-perormi
ad we rolled out in 2011second only to our Sept. 11 tribute ad, which w
rated best in the insurance category last year.We try to make sure that our message goes beyond any one commun
you might believe its designed to touch on the surace. We may deve
a commercial with Arican-American, Latino, Asian or Caucasian talent th
resonates across dierent groups.
Our State o Nostalgia (Thanks Hank) lie insurance spot eatures
Arican-American husband and wie, but is intended or all audiences a
cultures. The concept o the spot appeals to dierent communities based
their needs, not their ethnicity.
State Farm enjoys a very strong and positive perception among Arica
American consumers, partly because we have served this market lovin
and genuinely with agents in the community or 90 years.
Source: The Nielsen Co.
O x o, Bl o (38 ) 31.9 o lily o i ig o wi o-Bl o (28.8 ). BIGiig
LeadInG Insurance and fInancIaL advertIsers
spendInG tO BLack cOnsumers (usInG tarGeted medIa)
State Farm Mutual Automobile Ins. Co. ...................$17,444.926
Berkshire Hathaway .................................................$17,416.279
Allstate Corp. ...........................................................$16,667.888
Nationwide Mutual Insurance Co. ...........................$13,472.113
Progressive Corp. ....................................................$12,410.182
Zurich Financial Services Group ................................$7,504.814
PGC Holding Corp. ....................................................$7,103.813
Wells Fargo & Co. ......................................................$6,891.170JLL Partners ...............................................................$6,758.813
JPMorgan Chase & Co. ..............................................$6,669.077
Parent ComPany 2011 $(000p el
VP-Marketing
State Farm
LessOns frOm the Leaders: state farm
8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer
24/31
Supplement to AdvertiSing A
April 23, 2012
PERSONAL CARE
MARKETER INSIGHTS
At P&G, the African-American consumer is criti-
cal to delivering our growth targets in the U.S.
and therefore globally. Theres a myth that its
hard to grow in developed regions, but if you fo-
cus on the right consumersand African Amer-
icans are one of those groupsyou can grow
n the U.S. Our shares among African Americans are in line with our general
market shares, and thats our ultimate goal: to grow at that same rate.
Some marketers seem to have just discovered that African-American con-umers exist. But Tide has done African American-targeted advertising for
more than 30 years; Pantene, for over a decade; and Gain, pretty much all of
ts product life.
The consumer is at the center of everything we do at P&G, and its no
ifferent with African-American consumers. We take the same approach with
his group as with every consumer segment: Invest in a lot of research and un-
erstand their practices, habits, motivators and needs, and how they evolve.
We take three different approaches to the African-American market.
ometimes we develop African American-exclusive marketing within a big-
icture brand message. Take Pantene and its overall message of healthy hair,
which means different things to an African American, a Hispanic, an Anglo.
antene has developed different products to deliver on that promise, and weave developed different communications and marketing plans to bring cred-
bility to those products.
Sometimes marketing is driven by universal insights, and we focus on a
ig idea across the board: We invest our dollars to reach more consumers in
more places.
Some brands lead with African Americans and make that marketing work
cross the total general market. Certain brand segmentations tend not to be
ased on culture or ethnicity, but on attitudes and behavior. A