You may already know the numbers: the Latino market in the U.S. is projected to grow 163 percent by 2050. There are 56 million Latinos currently in the U.S., representing 17.6 percent of the population. By 2060, Latinos will represent 29.3 percent of the population. It’s a market that businesses ignore at their peril. The opportunity is enormous, but we’ve found there is are lot of ignorance and myths surrounding how to reach this market. Let’s tackle the top 5.
Myth #1: Latinos are poor.
No way. The Spanish market is estimated to enjoy $1.5 trillion in purchasing power, a staggering 50 percent growth since 2010. Enough said.
Myth #2: The Latino market is simple and monolithic.
Couldn’t be further from the truth. There are multiple cultures and subcultures within the Latino market. Nations with immigrants in the U.S. include Mexico, of course, but also every Central and South American country. They have different culture and communication preferences. There are also differences between the
generations of Latino customers. Even those who speak English may be more influenced by Latino sensitive messages.
Myth #3: Latinos are low tech.
Not true. In fact Latinos were early adopters of mobile technology, partly because landline phone service was often poor or absent in their countries of origin. And 86 percent of Latinos use their mobile devices to browse the Internet, and they are 17 percent more likely to access the web through their phone than non Latinos. Google reports that searches in Spanish have doubled since 2011.
Myth #4: I just need to translate my English marketing materials into Spanish, right?
Wrong. As mentioned above, the Latino market has many submarkets and subcultures. If online marketing has taught us anything it is that marketing content must be carefully crafted to specific buyer personas, and absolutely must be culturally relevant. Perhaps in the past translation was all it took to reach Latinos because the customers had fewer choices. Today, if you’re not tailoring your marketing to specific customer groups, you’re competitors are.
Myth #5: Latino men control the family budget.
A Nielsen survey of households found that 86 percent of respondents said that Latinas control spending. This means women control the bulk of that $1.5 trillion in buying power. For example, another study found that Latinas are responsible for a fifth of the total women’s fashion footwear market, representing about one out of every five dollars spent on shoes. In 2013, Latinas spent a total $3.3 billion on footwear.
The Latino market is economically healthy, tech savvy, growing fast and spending money. It is also extremely diverse. To learn more, download our white paper, Advertising to the Latino Market.