Immigration Reform Groundswell

Latino chat rooms, forums and blogs have been abuzzing the past two weeks as Hispanics discuss the potential of real immigration reform in the next 12 months. Univision.com's forum on immigration has seen an increase in activity and traffic. While the Obama administration has been coy about their plans, many political watchers thought the issue would come to light following Obama's visit to Mexico last week prior to the Americas summit.

The web has become a critical tool in uniting political activists, community members and other constituents. As Hispanics have mobilized via the web, their strong networks have given them more political capital. It seems that immigration reform is going to be a key issue that Latinos are interested in investing in. The truth of the matter is that while the economy is just as important to Hispanics, there are personal issues being raised with illegal immigration that affects all Hispanics regardless of legal status. Families are being torn apart, racism and anti-Hispanic sentiment is rising and these negative issues all tie back to immigration reform.

African Americans have historically been the most organized minority group in actualizing and wielding their political capital. However, the web is becoming an equalizer for Hispanics who do not have the same extensive grassroot footprint. Hispanics with their size + the web's ability to unite via the groundswell = political power that is being redistributed every day.

Hispanic Online Banking

Many are surprised to discover that Hispanics participate in online banking. Comscore reports that nearly half (47 percent) of Hispanics looked up bank account balances online. And 12 percent paid their bills online, as opposed to 5 percent of non-Hispanics.

Despite these strong numbers, Latino banking activity still has some growing to do. The challenge: according to Simmons, 52% of Hispanics don't have any bank account at all. On the good side, banks can expect $200 billion in new business over the next few years and Hispanics have the least amount of debt of any ethnicity. However, on the negative side, Hispanics are not fully realizing their financial potential and building their credit history. This impedes their ability to secure better financing on homes and new cars in the future.

Several banks and MasterCard have engaged Latinos for years via financial education campaigns to reduce the number of the unbanked. Prepaid cards have recently been introduced as a stepping stone to building credit history. Similar to prepaid phone cards, a concept that Hispanics are intimately familiar with, is a great way to teach them about the product benefits. However, these efforts have been spotty and certainly have not had the same level of push as other initiatives.

Banks should take note, a financial sleeping giant is starting to wake up. Perhaps more aggressive courting of this key demographic can help pull the industry out of its slump?

Social Media, Pranks & The Law

Over the last few months, I've talked about the power of social media especially amongst multicultural audiences. Social media goes beyond MySpace and Facebook, encompassing any place where groups can commune and share - YouTube, Flikr, etc. But what do companies do when consumers decide to share content they developed around a brand? And what happens if that content is a seemingly innocent prank that is potentially harmful to the brand?

Much has been written about the viral Diet Coke and Mentos experiment. Mentos shined while Diet Coke came down on the creators with a heavy-handed "cease & desist." This was rather harmless and if anything, helped both brands engage their base. In fact, Mentos launched an experiential marketing campaign around the premise and paid the creators to participate.

But today, Domino's is facing a much more daunting challenge. What does it do when two rogue employees upload a video to YouTube of themselves sticking cheese in their nose, waving salami behind their rear and place said items on a subway sandwich? The brand initially was cautious and tried not to feed the media frenzy. But just one day later, the video had been viewed over 1MM times and there was a warrant out for the arrest of the terminated employees. Heavy handed? Perhaps. But, web buzz metrics saw a steep decline in Domino's quality brand image in just one day. These types of precipitous drops are uncommon. Something they built over many years, erased in 24 hours.



The law is unclear on how to proceed. There are clear expectations of free speech on one side, and protection against defamation from the other. Only time will tell if legislators will move quickly enough to address the changing web landscape. One thing is clear, there are no easy answers and a lot of quivering brand managers out there.

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.

Spanish-Language as Cultural Relevance?

Many marketers approach their Hispanic marketing like an equation. How many Hispanics are exposed to their message via general market messaging? Then, they discount a specific percentage of spill that is not understood by the target (effective spill). Then they develop complimentary goals in Spanish-language to meet their communication objectives. Lastly, some translate their spot from English to Spanish and others develop original Spanish-language creative.

The problem with this approach is that Hispanic targeting becomes a function of language not of cultural relevance. Sure, those who create original creative targeted to Hispanics in Spanish are getting at the cultural relevance. But what about the Hispanics reached via effective spill? Are they not worthy of targeted, culturally relevant creative in English?

Certainly with limited resources, the lowest hanging fruit is targeting those not appropriately reached via general efforts. Yet, the Hispanic market is rapidly evolving and it's only a matter of time before it shares many traits with the African American market.

Ask any African American marketing agency and they'll tell you the same thing. They have to fight for every penny and explain why simply relying on general market spill is not effective. Clients on the other hand, point to the heavy usage of television and radio (African Americans spend on average 10 more hours with broadcast media per week than non-blacks.) US Born Hispanics spend 13.5 more hours vs. non-Hispanics, so it seems Hispanic agencies will eventual suffer the same level of scrutiny.

Which goes back to the original point - when language is used as a crutch to justify advertising, you forget about a critical and growing segment of the Hispanic market - US Born Hispanics who spend less time consuming media in Spanish.

Multicultural Gays Online

Since the beginning of the web; lesbians, gays, bisexuals and transgenders (LGBT) have found virtual communities to find support. Sites like Gay Cafe created a place where young and old LGBT's could be themselves and find others like them. Gays of color also found refuge in these chat rooms and later, dating sites.

However, there are few places online that connect or provide resources exclusively for Latino or African American gays. For minorities within the LGBT community, there is an additional stigma to being gay driven by a machismo prevalent in their cultures. This dynamic drives many to live a closeted existence and often makes these groups more susceptible to STDs including HIV.

Thrown in, the LGBT community is also not free of the racism that many Hispanics and African Americans endure. Often, minorities within the gay community find it difficult to connect within a primarily "Abercrombie-obsessed" ideal of beauty. Many Latinos and blacks complain that they are approached by gay white men whose attraction to them could be described as a fetish.

Recently, sites have begun to spring up to address the special concerns of these communities. QV Magazine, an online publication expected to launch in Spring 2009 plans to provide special coverage of issues that impact gay Latino men.

Yet for every QV Magazine, there are still more minority groups within the gay community who do not have a place of their own online. Lesbians of color, African American gay men and trangenders of different ethnic groups still need their own place on the web. With the infinite space available, it's just a matter of time before content is created to address their unique needs.

The New Record Label - You

A group of friends hanging by a river were horsing around when they came up with a song as they were jamming. One of the men in the group pulled out his cell phone and recorded it. Everyone loved it and they forwarded it to eachother as a ringtone. And they forwarded it to friends, and then their friends forwarded it and so on and so on. Within a few months, that song would be uploaded to Youtube and played over a half million times with fans posting their own music videos. The song eventually becomes a Top 10 hit in both the US and Mexico on Billboard's Latin Music List. Sound unlikely?

Well this is real. This scenario happend to an amateur Mexican regional grupero band called Los Picadientes de Caborca (The Caborca teeth-pickers.) This assortment of musical rejects now find themselves on tour and having daily phone interviews with radio DJs while being chased by fans. The best part - they don't have to share any profits from sales of their single, La Cumbia del Rio, with a record company. In fact, record companies are stalking them to get in on the action.

The web's transformative power on the music industry is so prolific that new models of doing business are explored every day. Just two months ago, Cucu Diamantes, a relatively well-known singer and former front woman of a Latin band, Yerba Buena, launched her solo album, Cuculand, exclusively online with the help on iTunes and MySpace. Her video for her single, Mas Fuerte, is now a Top 20 video favorite.

What all this means for Hispanic music lovers is that there will be more options for them and less control on the type of music we gain access to by the music labels. Now our biggest challenge is finding all of this great music, which is a fun problem to have.