A study presented during this year's AHAA (Association of Hispanic Advertising Agencies) Annual Conference makes the case for marketing to an often forgotten segment of the Hispanic population: those 45 years or older. "Targeting the Best Hispanic Consumer: A Generational and Cultural Orientation Study", dives into the differences in buying behavior of Hispanics across: three different generations, as well as how they compare to their general market counterparts.
One of the study's findings is that older Hispanics (Hispanic Baby Boomers) are 22%more likely than Hispanic Millennials to travel outside the U.S. Perhaps not surprisingly, due to the nature of the product, Hispanic Baby Boomers are 73% more likely than their Hispanic Millennial counterparts to have life insurance policies. Another insight is that Hispanic consumers are more likely to travel abroad than non Hispanics.
The study underwritten by AARP, used Scarborough USA+ (2012) to measure product usage and DoublebaseGfK and MRI (2012) to measure attitudes and conducted a broad field study that tied the findings to key cultural metrics. reveals that Hispanic Boomers, Gen Xers and have significant differences in their consumer behavior.
Marketers that leverage cultural cues by generational segments can create a competitive advantage compared to those who treat all Hispanics as one monolithic segment.
“The study shows us that marketers that leverage relevant cultural cues to its target audience by generational segments can create a competitive advantage compared to those who treat all Hispanics from Boomers to Millennials as one monolithic segment,” said Roberto Orci, Chair of AHAA and CEO of Acento Advertising. “Understanding the degree of cultural duality will particularly help marketers tailor brand messages more effectively.”
In addition to generational differences, the study shows that cultural orientation – how oriented one is to Hispanic culture or to Anglo culture – also has an impact on Hispanics’ buying behavior. There have been significant demographic changes since 1980. Sixty percent of all Hispanics are U.S. born, and there are record numbers of multigenerational and multiracial households in the U.S. Understanding the differences and similarities of each segment of Hispanic consumers can be used to better plan how to reach them with broad reach media as well as more targeted ways to deepen their engagement with brands.
“As millions of Latinos expand across all life stages and more opportunities abound, it requires a mix of broader strategies and tactics to reach them,” said AARP Executive Vice President Lorraine Cortes-Vazquez “. At AARP we aim to make all of our materials and resources culturally relevant to Hispanics over the age of 50.”
New findings on Hispanic buying patterns and behaviors
1. Wireless – All generational segments are 77% more likely to plan to switch wireless plans than their Non-Hispanic counterparts.
2. Entertainment – Hispanic Millennials are 40% more likely than non-Hispanic Millennials to attend opening weekend.
3. Home – Hispanics in total are 40% more likely than Non-Hispanics across all generational segments to purchase furniture.
4. Travel– 26%of Hispanics in total are more likely than Non-Hispanics to travel internationally, especially among Latino Boomers (50%).
5. Family– Latinos over index on purchasing children’s clothing for their families, especially among older Millennials and GenXers.