Marketers have been focusing largely on baby boomers and millennials, but there’s another group that's on pace to outgrow them both in size and spending power.
Why “Minorities” are really the Majority
By the year 2020, multicultural audiences, consisting of Hispanic, Asian, and African American consumers, will reach 138 million within the US.
If your marketing isn’t focused on reaching this growing, lucrative audience then you will be ignoring 38 percent of the population.
Many reports estimate that multicultural audiences (oftentimes referred to as minorities) will became the majority, surpassing the non-Hispanic Caucasian population by 2040.
If you continue to ignore this group, you will find yourself eventually ignoring a majority of all consumers.
Overcoming Barriers: Making the Case
If you still think that multicultural audiences aren’t worth investing your marketing dollars into, you’re not alone.
- In fact, 36 percent of organizations have indicated that multicultural marketing is a low priority for them. Many marketers cite not having funds or corporate buy in as a main barrier to doing targeted, multicultural campaigns.
- Numerous reports indicate that the buying power of this group has outgrown other segments and will continue to do so, making an even stronger case for investing resources into multicultural marketing.
- Hispanic households, for example, will likely outspend white, non-Hispanic households by $300,000 during their lifetimes while Asian households will likely outspend by a staggering $800,000.
Not One Size Fits All
Once you’ve made the decision to take another look at multicultural marketing, be sure to avoid the “one size fits all” mentality. Multicultural consumers’ buying habits and preferences vary drastically both across and within these core ethnic groups.
Consider using a leading provider of multicultural data to help you fill in the missing gaps needed to paint a realistic picture of your diverse consumers.
A reputable data provider can give you the valuable insights needed to segment and refine your audience profile, including:
- Country of Origin
- Language and
Investing in quality data will likely cost a bit more upfront but ultimately improve your campaign outcomes and return on marketing spend.