Understanding the hispanic Consumer The Hispanic population is exploding! As a younger population with ever-increasing affluence—and presence—Hispanics have become highly sought consumers and a powerful financial force. Their media preference? Radio.
The Impact of the Hispanic/Latino Market Population: Estimated to grow 126.4% from 1990 to 2011. 45.5 million Hispanics in 2007.
Age: Skews younger than rest of U.S. population with median age at 27.2 compared to 36.4. In fact, half fall in the 20–49 age bracket.
Purchasing power: Estimated to have reached $798 billion in 2006.
Increasing affluence: Hispanics are moving into the middle class (earning at least $40,000) at a higher percentage than the U.S. average. In addition, Hispanic households with an income of $100,000+ have increased by 126%.
Spending power: Expected to reach $1.2 trillion in 2011, exceeding the $212 billion reported in 1990 by 457%. Language preference: Based on TNS statistics, 69% of Hispanics prefer their media/ entertainment be delivered in Spanish.
Pan-Latino identity: Bound by common language (Spanish) and/or common immigrant experiences.
Projected U.S. Hispanic Population Versus Total U.S. Population
Language Usage by Hispanic Adults
Total Population Total U.S. Hispanic (of any race) Numerical Change Total U.S. Hispanic (of any race) Percent Change Total U.S. Hispanic (of any race) Percent of Total Population Total U.S. Hispanic (of any race)
Spanish English Both No Answer
2000 2010 2020 2030 2040 2050 282,125 308,936 335,805 363,584 391,946 419,854 35,622 47,756 59,756 73,055 87,585 102,560 ’00-’50 ’00-’10 ’10-’20 ’20-’30 ’30-’40 ’40-’50 137,729 26,811 26,869 27,779 28,362 27,908 66,938 12,134 12,000 13,299 14,530 14,975 ’00-’50 ’00-’10 ’10-’20 ’20-’30 ’30-’40 ’40-’50 49 10 9 8 8 7 188 34 25 22 20 17 2000 2010 2020 2030 2040 2050 100 100 100 100 100 100 13 15 18 20 22 24
Speaking at Home 56% 18% 26% 0%
Speaking at Work 31% 51% 15% 3%
Source: Synovate U.S. Diversity Markets Report 2006
Source: U.S. Census Bureau. Population in thousands
Hispanic/Latino Median AGE United States Hispanics/Latinos Mexicans Puerto Ricans Central Americans Dominicans South Americans Spaniards Cubans
Hispanic/Latino Median Household Income 36.4 27.2 25.5 29.2 28.9 28.6 33.5 35.6 40.5
Source: U.S. Census Bureau, American Community Survey, August 2006
United States Hispanic/Latino
2003 $43,318 $33,103
Source: U.S. Census Bureau, American Community Survey, August 2006
2006 $46,326 $35,967
Percent Change 6.9% 8.7%
Hispanics Choose Radio over TV and Print Hispanics still represent untapped potential for the radio advertising market, according to a study by Arbitron. According to the report, titled “Power of Hispanic Consumers,” Hispanics are heavier users of radio than newspapers or TV, spending half their radio time listening to Spanish-language formats. They also listen to radio longer than their non-Hispanic counterparts, averaging 22 hours and 30 minutes per week, versus 19 hours per week for Anglos.
Media Consumption Average number of hours per week Hispanics spend doing the following: Surfing the internet Watching TV
ZERO
Listening to the radio Reading magazines
LESS THAN 1 HOUR
Reading newspapers 1 TO 2 HOURS
3 TO 6 HOURS
7 TO 13 HOURS
MORE THAN 13 HOURS 0
8.75
17.50
26.25
35%
Source: Terra.com Hispanic Syndicated Study, conducted by comScore for Terra Networks USA (Jan. 31–Feb. 28, 2008)
top 10 advertising categories Hispanic Media General Media Rank Dollars Percent of Rank Dollars Percent of (millions) Media Share (millions) Media Share Government, Politics and Organizations 1 Automotive, Automotive Accessories and Equipment 2 Direct Response Companies 3 Communications 4 Audio and Video Equipment and Supplies 5 Retail 6 Restaurants 7 Miscellaneous Services and Amusements 8 Media and Advertising 9 Financial 10 Total of Top Ten Categories Total of All Categories
617.1 502.9 493.8 349.5 334.1 308.8 221.8 187.4 165.1 132.8 3,313.3 4,851.9
12.7% 13 10.4 1 10.2 8 7.2 4 6.9 17 6.4 2 4.6 12 3.9 7 3.4 3 2.7 5 68.3 100.0
Source: TNS Media Intelligence 2007. Hispanic media includes Spanish language network TV (3 networks); and Spanish language cable (1 network); Spanish language spot TV (43 stations); Hispanic magazines (42 publications); and Hispanic newspapers (81 publications)
3,790.0 13,709.7 5,483.3 7,690.3 1,918.0 12,262.0 4,532.6 6,579.2 8,858.4 7,507.9 72,331.5 132,277.3
2.9% 10.4 4.1 5.8 1.4 9.3 3.4 5.0 6.7 5.7 54.7 100.0
Targeting the Hispanic Baseball Fan As the only major-league sport growing its fan base, baseball reigns supreme as America’s pastime. And support and enthusiasm from Hispanic players and fans alike is thriving—at rates even higher than the general population. “Every morning sports pages and websites tell of the accomplishments of Latino athletes. Once a modest presence in U.S. sports, Latinos are now a force, affecting not only the scores and the record books but also the way games are played, consumed, and marketed.” “In baseball, there have never been more Rodriguezes and Garcias on the backs of jerseys and at the tops of All-Star ballots. In fact, those two names now rank eighth and ninth, respectively, among the most common surnames in the U.S.—the first time two Hispanic names have broken into the top 10.” From Sports Illustrated
LEAGUE FAN PERCENTAGES
LEAGUE TICKET PRICES
MLB has witnessed a 12% increase in its total fan base, the only major sports league to see that kind of growth over the last 10 years.
For fans, MLB is by far the most affordable stadium experience when comparing the four major sports leagues.
Total Fans % Change 1995–2005 MLB +12% NFL -.1% NBA -14% NHL -26%
League Average Ticket Prices MLB $21.17 NFL $54.75 NBA $45.28 NHL $43.57
Source: ESPN Sports Poll
Source: ESPN Sports Poll
baseball’s hispanic fan base • 62% of all U.S. Hispanics are Major League Baseball fans, compared to 59% of the total population, while 21% of U.S. Hispanics are avid fans of MLB versus 15% of the total population. • Since 1986, MLB is the only league in professional sports to maintain or grow both its total and avid Hispanic fan base.
• U.S. Hispanics are 6% more likely to be MLB fans than the average population, 27% more likely to be avid baseball fans, and 33% more likely to attend Major League Baseball games.
• According to ESPN Sports Poll, 6 out of 10 Hispanic fans indicated that they plan to follow more MLB games in the future.
• Hispanic MLB fans root for many “hometown heroes.” Approximately 30% of MLB rosters are made up of players born in Spanish-speaking countries, including some of the game’s biggest stars. Source: ESPN Sports Poll
Hispanics Comprise an Increasing Percentage of the MLB Fan BasE • MLB fans are more likely than the overall population to be Hispanic, and the portion of the MLB fanbase that is Hispanic has increased 13% over the past 5 years.
hispanic percent composition % of MLB Fans
15.0%
% of U.S. Population 14.0% 13.3% 13.0%
12.0%
11.0%
10.0%
11.7%
2002
MLB
NHL
12.6%
2004
2005
12.9%
11.0%
2003
Hispanics attend more MLB games than those of the other major sports leagues combined.
4.35
1.59
1.26
NASCAR
12.6% 12.1%
hispanic attendees—Past year (millions) Fans attended any game/event in the past year
NFL
12.7%
12.6%
Source: ESPN Sports Poll, Fans- those interested in MLB
NBA
12.9%
0.60
0.36 Source: Scarborough Research Multi-Market Release 1 2006 - Base Adults 18+
2006
hispanic Product Consumption and PURCHASE Habits Each year, major corporations across all industries invest billions to reach Hispanic consumers, whose growing financial strength makes them an increasingly attractive target. Hispanic male sports fans, in particular, spend even more.
Banks/Financial Services Used Interest checking account Wired money Debit cards 11 – 20 each month Credit card average monthly expenditure 90 – 110 Debit cards owned – 2
Male Sports Fans 18-54 129 127 136 121 106
Lifestyle Choices Hispanic Male Sports Fans 18-54 154 192 156 119 142
Purchase Intent — Very Likely Buy a house Buy life insurance Vacation in the Caribbean Vacation in Mexico Buy a new vehicle Buy a pre-owned vehicle Buy a home theater system Buy a flat screen/plasma TV Buy a digital video camera Buy a desktop computer Buy a laptop computer
Source: 2008 MRI Spring
Male Sports Fans 18-54 118 112 107 93 116 127 120 115 126 121 114
Male Sports Fans 18-54 Start/Buy a business 122 Attend movies within past 6 months 114 Attend movies 2-3 times a month 131 Have a PDA 153 Purchased cell/PDA within last year 112 Cell phone in households 130 4 or more cell phones in households 133 Play video games 188 Play baseball within past 12 months 209 Play softball within past 12 months 186 Pay-Per-View within past 12 months 137 Pay-Per-View sports events 3 or more times in past 12 months 200
Hispanic Male Sports Fans 18-54 189 119 199 139 115 140 143 171 201 162 138 358
Retail/Dept Stores/Clothing/Specialty Stores Shopped in Last 6 Months Hispanic Male Sports Fans 18-54 161 113 162 146 147 153 211 153 232 195 164
Famous Footwear Finish Line Foot Locker Payless The Disney Store Old Navy Sears Toys R Us Target
Male Sports Fans 18-54 93 165 145 76 95 90 97 108 93
Hispanic Male Sports Fans 18-54 109 220 220 115 178 101 102 138 100
Frequent Restaurants/Fast Food Denny’s Hooters Western Sizzler Burger King Carl’s Jr. Chipotle Del Taco El Pollo Loco Jack in the Box Kentucky Fried Chicken Little Caesars McDonald’s Pizza Hut Popeyes Chicken Taco Bell Whataburger
Male Sports Fans 18-54 102 158 98 120 130 130 124 109 119 104 118 110 118 123 121 120
Alcohol/Beer/Spirits Hispanic Male Sports Fans 18-54 159 182 194 110 257 124 220 307 185 113 143 107 125 123 122 170
Any alcohol beverage Any beer/ale Drank beer/ale in last 6 months Drank 9 or more beers/ales in last 7 days Drank tequila in last 6 months
Male Sports Fans 18-54 121 149 149 192 137
Hispanic Male Sports Fans 18-54 118 150 151 214 185
Beverages — Non Alcoholic Regular cola drinks in last 6 months 9 or more colas in last 7 days Other carbonated beverages, 9 or more in last 7 days
Male Sports Fans 18-54 123 155 150
Hispanic Male Sports Fans 18-54 139 209 196
Source: 2008 MRI Spring
Top Advertisers in Hispanic Media By measured U.S. media spending Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Marketer 2007 Ad Spending %CHG Lexicon Marketing Corp. $218,108.2 24.4 Procter & Gamble Co. 163,078.1 -4.3 AT&T 119,320.6 -10.0 General Motors Corp. 100,848.6 -2.7 Broadcasting Media Partners (Univision) 91,273.3 -14.8 McDonald’s Corp. 89,676.7 6.6 Toyota Motor Corp. 80,687.6 16.9 Sears Holdings Corp. 79,568.9 -4.5 Verizon Communications 79,277.8 -12.8 Johnson & Johnson 76,791.4 -3.6 Ford Motor Co. 73,406.0 -0.3 Walt Disney Co. 67,025.2 3.8 Cerberus Capital Management (incl. Chrysler) 66,109.7 1.9 Nissan Motor Co. 61,314.9 82.7 Wal-Mart Stores 59,890.3 -10.3 TVAtlas.com 55,071.6 14.8 Hyundai Corp. 53,945.2 -12.8 America Directo 52,466.3 14.2 Sprint Nextel Corp. 51,752.2 98.3 Deutsche Telekom 50,085.0 15.4 Allstate Corp. 46,979.9 26.4 Olympia 43,158.0 NA Unilever 42,791.4 -4.6 SABMiller 41,957.2 -8.7 L’Oreal 41,713.3 -10.5
Rank 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Marketer 2007 Ad Spending %CHG J.C. Penney Co. $41,197.1 26.0 PepsiCo 41,054.7 -29.9 Home Depot 39,551.8 -18.7 U.S. Government 39,093.4 30.2 Kraft Foods 38,520.5 34.2 Grupo Televisa 37,759.7 -24.6 Computacion Sin Barreras 36,488.2 NA State Farm Mutual Auto Insurance Co. 36,070.7 91.1 Yum Brands 35,357.6 12.7 Target Corp. 33,232.8 5.3 Anheuser-Busch Cos. 33,200.9 -20.5 Honda Motor Co. 30,846.9 9.1 Time Warner 30,513.7 -10.0 Lowe’s Cos. 29,607.9 8.0 Filtramax 29,337.2 66.4 Clorox Co. 29,273.5 -3.8 Macy’s 27,027.2 10.9 Coca-Cola Co. 26,990.8 -47.7 Wendy’s International 25,514.2 25.6 Visa 25,463.6 11.1 General Electric Co. 25,309.9 7.8 News Corp. 24,822.5 30.3 Children International 24,232.1 NA Bally Total Fitness Holdings Corp. 23,575.5 4.0 Guthy-Renker Corp. 23,521.5 84.2
Dollars in thousands. Media from TNS Media Intelligence and represent the sum of broadcast TV networks, Galavision (cable), Spanish-language magazines (including four PIB-monitored Spanish-language magazines), Spanish-language newspapers, Spanish-language spot TV, and Spanish-language websites. Percent change is computed from 2006 data