8 Crucial Facts to be Aware of When Considering Monumental Development and Transformation Within the Hispanic Market
2014's Hispanic market rundowns, and predictions for the future have been published; and finding have gone toward educating the general public on trends and campaigns that have been most receptive and successful within the general and Hispanic market.
Yet, little attention has been paid to the tectonic transformations in Hispanic marketing that occurred in 2014 or the monumental developments in Hispanic engagement that will likely take place in years to come.
There are eight changes to be aware of:
1. The U.S. Hispanic population projections, despite growth estimated for the population, have lowered. By 2050, nearly 30 million Hispanics were said to dwell in the U.S., according to the U.S. Census. But Hispanic immigration has lowered significantly, while the U.S. birth of Hispanics will be the primary driving force in the future.
2. The demise of the TV/cable bundle package is upon us. This is evident by the fact that HBO, CBS, ESPN and DirecTV launched independent subscription services, which will likely undermine the longstanding pay-for-TV model. And likely, other programmers will follow in their footsteps, and sever the cord. How does this relate to the Hispanic consumer? While Hispanic consumers have traditionally lagged behind the general market when it comes to switching their methods for media consumption to other digital platforms or streaming, DirecTV's decision to launch Yaveo, a service targeting U.S. Hispanics, signifies a likelihood that Hispanic consumers will stray from traditional pay services alongside the masses, or perhaps before. And when they do, they will seek curated programming.
3. The Hispanic market will emerge in unexpected places. Atlanta and Charlotte, North Carolina, topped in 2014, and other states that don't historically have a Hispanic immigration population. Mexicans immigrants are migrating to the Southeast and Midwest -- Georgia, North Carolina, Ohio, Wisconsin, Nebraska, etc. And less Mexican immigrants are going to border states and the Southwest.
4. When it comes to the college enrollment rate, Hispanic youth (18-to-24 years old) surpassed whites in 2012 by 49 percent and 47 percent. College enrollment for Hispanics age 18-to-24 years old tripled (240 percent increase) from 1996 to 2012, outpacing increases among blacks (72 percent) and whites (12 percent). That said, the high school dropout rates among Hispanics remain higher than blacks and whites, but those number are plummeting. This shows that higher education has great importance to Hispanics.
5. ESPN, Target, Hyundai, Corona and Dish Network incorporated Spanish into their general market advertising. The "Total Market" approach, which was utilized by major brands during the 2014 World Cup advertising campaigns, was thought to be an anomaly. That's until big brands realized that inclusive marketing is invaluable -- yet, very valuable.
6. Poverty rates are down among Hispanics, and they're the only racial/ethnic group to experience a decline, according to the Census Bureau. In 2013, the poverty rate among Hispanics dropped from 25.6 percent in 2012 to 23.5 percent in 2013. The socio-economic shift can be attributed to a number of demographic trends, such as immigration status, education, etc.
7. YouTube and Hispanics have been experiencing a longstanding romance for quite some time. In 2014, Google communicated that YouTube views for top U.S. Hispanic channels increase 125 percent per year. MiTú, the bilingual multicultural network, has grown to possess 36 million subscribers. And new content channels and "networks," like Hulu and Yaveo, could gain more numbers that Telemundo and Univision (earning 10 million viewers during primetime) within the coming year, showing the pivot toward mobile content consumption.
8. Twenty percent of Kindergartners in one-third of U.S. States are Hispanic, according to the Pew Research Center. There are 17 states, including Kansas, Nebraska and Idaho, where Latino children make up at least 20 percent of the public school kindergarten population. In California and Texas, and states with similar Hispanic populations, Hispanics represent the majority of kindergartners.