Hispanic Agencies: It's time to invest

With the US Census in full swing - Hispanic media and marketing agencies are salivating at the potential boondoggle of new clients and a surge in spending from existing players. Yet, I ask myself: is the Hispanic market resting on its laurels? What innovations have been made in the past decade?

The days of saying, "trust us, we are experts," is over. The industry needs to invest in tools. Here are three that the industry desperately needs:

1) Multidimensional segmentation w/ overlay of acculturation
We need to stop treating the US Hispanic market like one big segment. We are all different - just like the general market. We need to leverage those differences and customize messages to the "right" audience. We also need to understand how acculturation impacts Hispanics interaction with different categories. What role then does language play in this mix and how can we use different channels (both Hispanic-targeted and general market placements) to reach this more qualified audience.

2) Channel-Neutral Planning Tools
If I see one more media plan with 100% TV - I'm going to shoot myself. The general market multicultural "experts" are the biggest offenders, but there are several Hispanic agencies that do the same. There is this thing called the internet and Hispanics are totally flocking to it. Crazy idea - perhaps you should include it in your next channel mix? Think about it. A channel neutral tool would help justify these investments if it is properly calibrated with actual data.

3) Culture-O-Meter
This one is related to #1. We constantly talk about the need for "cultural relevance" in order to effectively reach the US Hispanic market. But, we all know that there are cultural insights and then there are just bad stereotypes. Shy away from the latter. Cultural insights should represent how cultural heritage impacts how a person interacts with a specific category. But, all too often - we let clients bully us into a sombrero or a "upbeat" salsa rhythm. Develop a qualitative tool that demonstrates how culture impacts their business. Then leverage that nuance in communications....but spare us the sombrero unless of course you are selling sombreros.

I look forward to seeing how the industry evolves - hoping that it starts investing in its future before the general market agencies do.

Multicultural Consumer Confidence

A new report entitled Yankelovich Multicultural Marketing Study (there's a lot of cool research out this week) evaluated the current mindset of African American and Hispanics in the United States. The study sheds some light on the challenges that both ethnic groups are facing in light of greater empowerment. This is defined not only by political strength, but by consumer buying power in the United States.

Both African Americans and Hispanics note that they feel greater optimism for their personal future as a result of Barack Obama's presidency (87% and 79%, respectively compared to only 55% for non-Hispanic whites.) Yet, in light of the economic crisis, 54% of African Americans and 65% of Hispanics say they feel moderate to high anxiety about their current prospects. That compares to 43% of non-Hispanic whites.

With both African American and Hispanic unemployment reaching the 10% mark compared to the national average of 8%, it's no surprise that multicultural consumers are feeling the economic crisis like no one else. Add into the mix that both ethnic groups were disproportionately affected by the sub-prime mortgage mess and you have a recipe for disaster.

But despite these challenges, African Americans and Hispanics are critical consumer segments for marketers. They continue to grow economically (both approaching $1 trillion in buying power) and politically, (African Americans and Hispanics were critical to Obama's success.) As a result, advertisers should avoid the temptation to walk away from multicultural marketing during this recession. Neither group is genetically predisposed to brand loyalty and one brand's loss, is another one's gain.

The Future of Digital Strategists

In this job climate, there are few employment opportunities available in advertising. In fact, most agencies are laying people off. Yet, a quick perusal of recruitment sites like Monster and Careerbuilder revealed that there are digital strategist opportunities available. I started thinking, in today's climate, shouldn't we all be digital strategists?

Ten years ago when digital marketing hit critical mass, digital strategists were essential. There was a major learning curve to understand the new marketing technologies. But as time progressed, the silos continued. Today, most clients are shifting resources to the web and mobile. But, in order to make that assessment, client's need to evaluate concurrent media usage of offline and digital channels - together.

If you don't understand all channels, then you are missing an opportunity to connect with consumers the way they are experiencing media - seamlessly. Consumers follow content - the channels they choose to gain access to that content is secondary.

While I do believe there is a role for specialists, the reality of the matter is that if we aren't all well versed in digital, than we aren't doing our job as marketers.