Univision: What the Growing Affluence of Hispanic Consumers Means for Financial Marketers | Industry Insights | All MKC Content | ANA

What the Growing Affluence of Hispanic Consumers Means for Financial Marketers

The five key steps brands should follow to reach a growing demographic

Share        

PARTNER CONTENT

Montri Thipsorn/Shutterstock.com

Over the past few years the financial industry has upped its engagement with Hispanic consumers, investing $135 million in Spanish-language TV in 2017, according to Nielsen Ad Intel. That's a 20 percent increase over the previous year. To help marketers in the financial industry further improve or jumpstart their Hispanic outreach, Univision Communications Inc. partnered with the Harris Poll on a research study to explore Hispanic consumers' financial attitudes and behaviors.

The research, released in 2017, reveals five key steps marketers in the financial industry can follow to better engage Hispanic consumers.

 

1. Recognize the Power of U.S. Hispanics

Speaking at Univision's 2017 Leading the Change forum, J. Walker Smith, executive chairman of Kantar Futures, noted that the problem businesses currently face is how to achieve growth. "The answer is the Hispanic marketplace — an economic juggernaut that is the keystone to growth in the future," he said. "In order to grow, brands must embrace the inclusivity imperative — marketing to everybody, Hispanics in particular." Indeed, at 60 million strong, the Hispanic population represents one out of five people in the U.S. today, according to the U.S. Census Bureau. When looking ahead at the next 10 years, the Census projects that Hispanics will drive more than half of the total population growth.

Financial brands searching for growth will need to engage this increasingly important consumer who, according to the Univision/Harris Poll study, is looking for financial guidance.

 

2. Take Note of Their Financial Viability

While most marketers may acknowledge U.S. Hispanic population growth, arguably few in the financial sector have recognized the financial viability of this consumer. According to Geoscape projections, affluence among Hispanics is on a sharp rise. Hispanic households earning $100,000 or more have grown 313 percent since 2001, compared to an increase of just 137 percent among households that are not Hispanic. In addition, the Selig Center for Economic Growth has found that Hispanics represent more than $1.4 trillion in consumer buying power.

With increased wealth comes greater use of financial services and products. Data from GfK MRI shows Hispanic use of top financial products has grown by double digits over the past five years, outpacing that of non-Hispanics. In fact, for mortgages, Hispanics drove 50 percent of the growth between 2012 and 2017 — one out of every two new mortgages was issued to a Hispanic adult.

The Univision/Harris Poll study found that not only are Hispanics currently using financial services, but they are also significantly more likely than non-Hispanics to be very interested in learning how financial services/products can help them achieve their financial goals.

 

3. Understand the Need for Information

Overall, Hispanics are more likely than non-Hispanics to be dissatisfied with the financial information currently available to them. They are also more likely to lack awareness of what services are right for them. Despite that, 74 percent are interested in tools to set financial goals and to educate themselves on finance, compared to only 55 percent of non-Hispanics, according to the Univision/Harris Poll study.

The good news for marketers is that the need for more information has spurred Hispanic consumers to action, with two-thirds (67 percent) actively seeking information about financial products and services. Moreover, 68 percent are always looking for new ways of getting information on financial products and services — 10 points higher than non-Hispanics. It's up to financial marketers to provide the guidance and outreach that Hispanics crave.

 

4. Learn How to Engage Hispanics

To effectively engage Hispanics, financial marketers must understand where they're looking for information. In today's fragmented world, it's no surprise that, like non-Hispanics, Hispanics turn to a variety of sources. Where these two groups differ has to do with their media preferences, the Univision/Harris Poll study reveals.

Hispanics are more likely than non-Hispanics to use TV ads, TV shows, and social media for information gathering. They're also twice as likely to find financial ads "interesting." Combined, all of these insights mean Hispanics are looking for — and open to — brand messaging.

 

5. Speak Their Language

When companies do start reaching out to Hispanic consumers, it's important for their messages to be in-culture and in-language. According to Kantar Futures' 2017 U.S. Monitor, the large majority of Hispanics (87 percent) appreciate businesses that communicate with them in Spanish. What's more, a slightly larger majority (88 percent) say that companies that make sincere efforts to be part of (or invest in) their communities deserve their loyalty.

Specifically within the financial sector, two-thirds of Hispanics say they feel more of an emotional connection to a financial services company when it advertises in Spanish. This sentiment holds true even for bilingual Hispanics. As one participant in the Univision/Harris Poll study stated, "I speak English just fine. But my husband and some other family members don't. These decisions involve us all, so it's important that we all understand what we're signing up for."

It's not surprising, then, that when analyzing actual TV ad performance, Nielsen TV Brand Effect data proves that financial ads on Spanish-language TV outperform those on English-language programs across ad memorability, brand memorability, message memorability, and likability. These memorability and likability metrics matter because Hispanics are more likely to prefer to use a well-known brand for their financial needs and believe that brand familiarity is important when choosing a financial services company.

For brands looking to truly engage this integral consumer group, understanding these distinct behaviors and mindsets will allow them to telegraph that their organizations respect and value Hispanics and want their business. Financial companies that make sincere efforts to engage Hispanics are rewarded with loyal customers who will deliver growth.

Jack Randall (@UCI_Insights) is EVP of business development at Univision Communications Inc. You can email him at jrandall@univision.net.


 

 

Share