Yahoo! researchers reveal key differences across minority groups
With ethnic minorities in the U.S. now representing $2.5 trillion in buying power, brands are becoming increasingly fluent in multicultural marketing. In fact, at a recent ANA Conference, marketers from Pepsico, Home Depot, Miller Coors and Walmart revealed why appealing to ethnic consumers is key to future growth. To help marketers better understand African-American, Asian/Pacific Islander, and Hispanic audiences, Yahoo! and Mindshare partnered with Added Value on a comprehensive study that reveals what matters most to ethnic consumers and how to speak to their interests with an authentic voice.
What defines ethnic identity?
Not surprisingly, 7 in 10 minorities say that ethnicity is a significant part of their identity. Yahoo! researchers dug deeper and found that each ethnicity has a set of unique drivers that shape their ethnic identity. Music emerged as the top ethnic driver for African Americans. Political beliefs topped the list for Hispanics, while eating habits was number one for Asians. Key takeaway: understand what defines the ethnic group you want to connect with.
Content preferences by ethnicity
So why does this matter for marketers? The top drivers of ethnic identity are closely intertwined with online content preferences for each ethnic group. Fifty-two percent of African-Americans look for music content online. Fifty-two percent of Hispanics turn to the Web for news, presumably related to their interest in politics.
Fifty-five percent of Asians seek out restaurant content online. Key takeaway: Align multicultural marketing messages with content different groups visit or create branded content based on their known interests.
Marketing preferences by ethnicity
One key to success for brands is targeting specific ethnicities in the categories that matter most to them. Yahoo! found that ethnic identity doesn't come into play as much, for instance, in automotive, pharma and travel. However, there are other categories where it's critical for ethnic consumers to feel like brands are speaking directly to them.
Sixty-two percent of African-Americans want Health and Beauty products marketed specifically to them. Hispanics (53%) feel ethnicity matters when it comes to CPG, Entertainment, and Clothing. Half of Asians stated that ethnicity is important in Entertainment marketing. Key takeaway: target specific ethnicities in the categories that matter to them.
Tips for advertisers
Our researchers came up with two key tips for advertisers based on the study findings:
Tip #1: For categories where ethnicity isn't much of a factor, feature diversity in your ads: 7 in 10 minorities feel that diversity in ads are the best reflection of the real world. Try to strike the right balance between portraying diversity as mainstream and portraying the unique characteristics of each minority group.
Tip #2: If you know ethnicity is important for a certain category, target specific ethnic groups with authenticity, and avoid stereotypes. Make sure that your ad speaks to them and reflects their ethnic values. Selecting an authentic spokesperson is one of the most critical components in having authentic marketing messages. When multicultural marketing is handled correctly, ethnicities are more likely to notice your brand and talk about it.
For more insights on multicultural marketing, listen to our archived webinar on this topic or visit Yahoo! Advertising Solutions for the full report: Ethnodynamics: Understanding the Principles to Multicultural Marketing.
You can also check out this article about the study on MediaPost: Marketers Advised to Target Ethnic Preferences.