Hispanic Cyberstudy
Marketing to the web’s most rapidly growing population
Hispanic CyberstudyMarketing to the web’s most rapidly growing population
A study by AOL Advertising & Cheskin:Why and how are Hispanics using the internet in their daily lives?
Quantitative MethodologyTelephone Survey:717 Hispanic households across the US (90 via cell phone)
Online Survey:616 Hispanic households across the US634 General Market across the US
For years, marketers have struggled with the complexities of the Hispanic market. Given the blistering growth of their population and subsequent rise in purchasing power, AOL wants to help marketers and agencies understand the changing Hispanic market, and improve their advertising performance with this segment.
To stay ahead of market trends, AOL Advertising commissioned Cheskin Added Value to conduct research about Online Hispanics. This is a continuation of a study AOL began in 2004.
The basics
Experts anticipate that the US will be more diverse than ever, with only 22% of households expected to be the iconic American family of mom, dad and kids. The Hispanic population is expected to be much younger compared to other racial groups.
America, the diversifiedA forecast of the 2010 Census
50 Million Hispanics will be living in the US
Nearly one in six US residents will be Hispanic
Los Angeles County is expected to be home to the largest Hispanic population in the US – exceeding that of Costa Rica
SOURCE: Francese, Peter. (2009). 2010 America: What the 2010 Census means for Marketing and Advertising. Advertising Age. Retrieved from http://adage.com/
• Predominantly speak Spanish at home
• Most media consumption in Spanish
• Foreign-born
• Mean age 40
• Lived in the US seven years average
Hispanic Dominant• Speak both languages
at home
• Most media consumption in English
• Foreign and US-born
• Mean age 34
• Lived in the US 22 years average
Biculturals• Speak English at home
• Most media consumption in English
• US-born
• Mean age 37
• Lived in the US 36 years average
US Dominant
Currently, marketers tend to divide Hispanics into three different categories: Hispanic Dominant, Bicultural and US Dominant. Offline, the sizing of these groups is reversed, with Hispanic Dominants representing 52% of the segment, Biculturals 19% and US Dominants 28%.
The American Yardstick Market segmentation of Online Hispanics based on acculturation
46%31%23%
A Different MeasureSegmenting by life stage group
Segmentation by life stage provides another way to understand the values and interests of Hispanics, based on their preferences and behaviors, which are not necessarily unique to their cultural background or acculturation level.
Young and Free
Young Family
Mature Family
Prime of Life
Empty Nester
2 Kids (0-11)Average 33 YOMarried
2 Kids (12-17)Average 40 YOMarried
No KidsAverage 41 YOMarried
Kids 18+Average 57 YOMarried
30%
17%
23%
18%
13%
No KidsAverage 26 YOSingle
Pursuing passions online
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Since our first study in 2002, the number of Hispanics online has grown significantly – faster, in fact, than the total US online population. The online adoption gap between Hispanics and the General Market has narrowed to 13 points over the past few years.
Entering the mainstreamInternet usage among Hispanics is catching up to the general population
*Note: General Market data provided by PEW Research Center in July 2008; Hispanic data provided by AOL Advertising Cyber Study in July 2008.
2002 200975%
65%
45%
55%
35%
71
58
Hispanic General Market
41
57
Both offline and online Hispanics are much younger than the general population, with larger households and younger children. 46% of Online Hispanics are under 35 years old, compared to just 28% of the US internet population. Meanwhile, 30% of the General Market online population are empty nesters – only 13% of Hispanics fall into this group.
Who are they?Hispanics vs. General Market users
AGE: 37HOUSEHOLD INCOME: $50K+CHILDREN: YES! Sandra 6 and Danny 5
AGE: 46HOUSEHOLD INCOME: $75K+CHILDREN: YES! Stephanie, 22
Hispanic General Market
Young Hispanics log on most
100%
50%
0%
7766
56
44 40 673423
60
33
Young and Free Young Family Mature Family Prime of Life Empty Nesters
Online Offline
Online Hispanics are younger than their offline counterparts, who are also more likely to be empty nesters.
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Hispanics are more enthusiastic about the benefits of the internet than the General Market – so much so that they have more confidence in
online product ratings than the opinions of their friends.
Hispanics love and trust the internet
Friends’ Opinions
28%Product Rating Sites
72%
64 51 57 43 27 1544 25 36 30The best place to keep up with current events
Always go to the internet to find deals
Use the internet to keep up with pop culture
Internet is an important tool for building a better life
A great place to meet people with similar views
Hispanic General Market
They view the internet as a place of discovery and connection
Hispanics have a high regard for the internet as a medium for information and socialization. Fully one-third of all Hispanics, regardless of acculturation and life stage, view the internet as a key component in building a better life.
The internet informs their purchase process
Hispanic consumers view the internet as a very important information source in the purchase decision-making process. They look to the internet to learn about products, brands, features, stores and pricing.
90%
85%
80%
75%
70%
Hispanic General Market
Start learning process
Learn about brands
Learn about features
Get advice on what to
buy
Where to buy
Compare prices
Make final decision
100% vs 100% 18% vs 11%
Not only are they technology leaders...
Compared to the General Market, Hispanics are more sophisticated technology users. Their use of a wide range of devices (e.g. smartphones and gaming devices) to access the internet illustrates a high level of comfort with and willingness to try new technologies.
32% vs 20%
Hispanic vs. the General Market:How they access the internet
27 13 36 22 33 24Early adopters Considered tech expert
by friends and familyKeep up with the latest technology
Compared to General Market users, Online Hispanics are more adventurous and eager to try new media communication formats and technologies. They also keep up with the latest tech news, and like to help friends and family with their purchases.
...Hispanics are early adoptersHispanic General Market
“Online Hispanics are eager and adventurous.”
Hispanics are universally embracing new technologies regardless of their acculturation level. Furthermore, contrary to common stereotypes, the most acculturated Hispanics are not necessarily the most technologically savvy. In fact, less acculturated Hispanics tend to be early adopters, evaluating new formats and spreading the word in their communities.
Everything you know is wrongAcculturation doesn’t equate with technological sophistication
29% 35% 34%
41% 40% 31%
41% 25% 22%
PC access
Keep up with the latest technology
Considered tech expert by friends
and family
Early adopter
100% 100% 100%
Hispanic Dominant US DominantBicultural
A look at the future
One-fifth of Online Hispanics are power users who give us a glimpse of future adoption by mainstream users. This group spends over 24 hours per week on the web, connecting over half the time via mobile (57%) or other devices (47%). They also view themselves as innovators, keeping up with the latest technology (100%), serving as tech experts to friends and family (100%) and adopting new technologies first (100%).
The Hispanic power user
AGE: 34GENDER: MaleEMPLOYMENt: Full-timeFAMILY StAtUS: Married with young kidsHOURS ONLINE: 24 hrs/week
Power users are also highly influential in their communities, spreading the word about deals (91%) or the latest entertainment news (87%). They are content creators and use the web to broadcast their point of view, while mainstream Hispanics are more traditional in how they communicate with others.
Catching the viral bug
Traditional Viral
Via email (message or link)
Over the phone/in-person
IM to friends/ family
Write a blog
Social networking site
Write a review on a review site
Power User Mainstream Hispanics
79%
64%
52%
68%
28%
38%
91%
51%
21%
55%
6%
55%
Connecting through life stages
To date, messaging for the Hispanic community has been organized around acculturation and language. While 75% of Hispanic Dominants prefer product marketing information in Spanish, there is an overwhelming preference among Bicultural and US Dominants for marketing in English.
The old viewtraditional marketing to Online Hispanics
99
8812
25
75
1
HispanicDominant
US Dominant
Bicultural
0 20 40 60 80 10010 30 50 70 90
Spanish English
If we look at the language preference for websites by life stage, English marketing messages are favored by virtually all of the youngest Hispanics and most of the other market segments. This has important implications for marketers, who should always take into consideration their target segment’s needs and passions before determining the appropriate language/media mix.
A new perspectivethe importance of life stages
Spanish English
100%
0%
50%
65.6 56.9 81.271.696.8
43.1 18.8Young and Free Young Family Mature Family Prime of Life Empty Nesters
Marketers should always take their target audience’s life stage into account before determining the language/media mix.
34.428.43.2
Can you say it in English?
Can’t do all the same things on Spanish site
The English site is better / more comprehensive
English site has more detail than the Spanish Site
English site has more useful information
English site has better deals than the Spanish
25.3%
23.1%
21.1%
17.9%
8.8%
In general, Hispanics recognize the disparity between the availability of English and Spanish language content. They perceive English sites as more comprehensive, detailed and useful than Spanish-language counterparts. This belief is prevalent across all levels of acculturation and life stages.
The preference for English among the younger segments is also influenced by the demographic composition of Bicultural and US Dominant Hispanics, who tend to be younger and more engaged in the digital lifestyle – making them the sweet spot for most advertisers.
Biculturals and US Dominants are younger
14
21
39
215
Hispanic Dominant100%
50%
0%
Bicultural
25
18
27
9
21
US Dominant
27
15
32
620
Young and Free Young Family Mature Family Prime of Life Empty Nester
A closer look: Audience perspective
Media consumptionOnline Hispanics prefer English language online media
Source: Internet World Stats. (2009). Top 3 Internet Languages. Retrieved December 8, 2009 from www.internetworldstats.com/languages.htm
Hours Online in English Hours Online in Spanish
Most Hispanics consume online media in English – even Hispanic Dominants. This reflects the greater availability of English language sites. This is not unexpected, as 27.6% of web content is created in English, with Chinese second at 22.1% and Spanish a distant third at 7.9%.
Hispanic dominant
14.36 9.3Bicultural
12.42 2.5US dominant
20 3
The chart above shows the language consumption patterns among consumers who prefer Spanish. Clearly, they will consume similar types of content in both languages. This suggests that Online Hispanics are not opting for one language over the other. Rather, they’re looking for the best online experience regardless of language.
A tie between tonguesOnline Hispanics seek out the best experience
% Consume content in English multiple times per week
% Consume content in Spanish multiple times per week
60
45
30
15
00 15 30 45 60
Keep Up With Home Country News
Keep Up With US News
Entertainment News
Financial Information
Follow Passions & Hobbies
Research Purchases
One of the reasons why so many Hispanics prefer English content is their mistrust of sites in Spanish, which often are little more than literal translations of English content. Only 3% of respondents found Spanish language sites more trustworthy and useful than those in English, leaving an important percentage of the Hispanic segment feeling underserved.
Quality mattersHispanics distrustful of Spanish language sites
2.8%
3.1%
I trust the Spanish Site More
Spanish site has more useful information
When Spanish is preferred…Do it well
44 56
It reflects my experience in the US
24 75
It takes into account my ties to home country
It’s more important than just straight translation
51.9 47
% Consume content in Spanish multiple times per week
It Matters Very Important
Those who prefer Spanish marketing find that tailored content makes them feel closer to home. They also favor a meaningful transcreation over a literal translation of an English site.
0 20 40 60 80 100
Even where there is a high preference for English content and marketing – particularly among young Hispanics – a remarkable 66% of the audience finds it important that content takes into account their home country and their experience in the US.
When English is preferred...Don’t generalize – be relevant
% Consume content in English multiple times per week
0 20 40 60 80 100
It Matters Very Important
It reflects my experience in the US
3333
It takes into account my ties to home country
3336
Appearance countsBe respectful with creative executions, images
Media representation issues become more important for more acculturated and younger Hispanics. Imagery should be carefully selected to provide positive identification with culture without stereotyping.
0 20 40 60 80 100
It has pictures of people who look like me
For those who prefer Spanish marketing
40.8%For those who prefer English marketing
57%
For more information, please send your request to [email protected]
Summary
Hispanics are influencing the mainstreamOnline Hispanics have
proven to be tech-savvy media trendsetters.
Life stage is keyYour language/media mix
should be based on the life stage of your consumer.
tailor your message to their experience
Hispanics prefer messaging that takes into account their
backgrounds and experiences.
Notes
the teamLiz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick
Special thanks to the 360 Creative Team at AOL for producing this booklet, Guy Garcia for his feedback and time, Rebecca Abravanel for answering all of our questions, and Olivia Maloney, Miguel Ferrer and Edgar Ochoa for sharing their Hispanic expertise.