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.

Burger King Faces Ethical Dilemma

Burger King is facing an ethical dilemma as they suffer under a firestorm brought on by millions of Mexicans across the globe. The web played a major role in helping to bring to light an ad campaign running in the UK and Spain. The ad and accompanying print work (see above) are for the new Texican Whopper - a fushion of Texas angus beef and Mexican spices, get it?

The advertisements depict Mexicans in a negative light - referring to the barely 5 foot tall, luchador mask wearing Mexican character as "El Cachito" (the little morsel). While the TV spot doesn't include the Mexican flag's eagle, the accompanying print work does. This is concerning as Mexican law strictly forbids its desicration in any way.



Burger King and their agency, Crispin, Porter & Bogusky, are now in an ethical quandary (and business one). Do they continue to push ahead driven by creative freedom or do they respect the desire of millions of Mexicans to have this poor interpretation stricken from the public's view?

Spurred on by the Mexican Ambassador to Spain, Jorge Zermeño, it seems that Burger King is bowing to pressure and is planning to pull the work. It may not be because they see the light, but rather, understand the importance of Mexicans to their business. The US Hispanic market is a lucrative one and Mexico is arguably their second largest after the US. Ethical or not, Burger King understands that not reacting quickly in today's web based world, can really hurt the bottom line.

Multicultural Center of Excellence

During this recession, corporations are likely reevaluating the personnel they appoint to manage their multicultural efforts. Efficiencies influence whether a company designates an internal diversity marketing professional or integrates those duties within the general market. Businesses who value their sales performance should avoid the perils of the latter option.

Employing sophisticated, fully integrated and effective marketing efforts against multicultural consumers requires a center of excellence. A center of excellence (COE) is a person (or team) armed with consumer and cultural insights. The COE understands the benefits that his/her company provides multicultural audiences and can translate those benefits in terms the audience can comprehend. The COE does not translate or adapt general market work exclusively for the sake of integration. He/she does so because that work contains universal truths that transcend culture. And when that work does not translate pan-culturally, the COE makes a case for the development of relevant work. The COE has the power and stature within the organization to influence change. The COE also treats his multicultural agency like a partner and empowers them to do good work; supporting their efforts within his organization. The COE does these things not to stroke his/her own ego, but because it’s right for the business.

Marketers without a multicultural center of excellence will often fail to understand the difference between ethno-centricity/stereotypes and cultural relevance. Bogged down with other priorities, these “integrated” efforts result in a flowchart where diversity is a line item. Creative assets are adapted to minimize resources regardless of whether the creative works or not. Cultural relevance? Who cares, so long as these consumers know the price is $9.99. If creative targeted to these ethnic segments is required by senior management, the marketer responsible for these efforts evaluates the cultural relevance based on the number of stereotypes inserted in a :30 spot. Family with abuelita – check. Sombrero – check. Fast salsa music – check. As for reaching acculturating Hispanics or African Americans – why bother? They are already covered by your general market plans. Who cares if you can customize these efforts to be more persuasive? As for multicultural agencies - they are just annoying vendors. Life would be easier if you only had to work with one agency, right?

No doubt there are companies who hire dedicated multicultural marketing professionals who do bad work. They hired the wrong person. And I’m sure that there are companies out there who do good work without a center of excellence. They got lucky! But by and large, I continue to believe that companies who invest in true multicultural expertise and develop a center of excellence are those who are most successful. Make an assessment of your company or your client’s company. Who manages their multicultural efforts? Is it a center of excellence or is it “integrated?”

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.