64% Increase In Searches For Ad Agencies With Multi-Cultural Expertise.
October 22, 2004
AdForum.com experienced a 64% increase in searches for advertising agencies and marketing communication companies that have an expertise in multi-cultural marketing. The increase occurred from the three month period ending October 31st 2004 compared to the three month period that ended July 31st 2004. Over that same period, searches for full service advertising agencies increased 31%.
“We believe it’s a clear sign that advertisers are looking to target specific cultural groups for marketing their products and services to and they want to work with agencies that have a proven expertise in doing so.”, commented Christopher Wynne, president and CEO of AdForum.com. “The fact that we’re seeing searches for agencies with experience in multi-cultural marketing growing more than twice as fast as full service agency searches is significant.” Above average growth was seen across all cultural groups with the Hispanic American category experiencing the largest percentage increase at 71%. It was also the most searched multi-cultural group representing one out of every four searches made during that period.
Hispanic American – 71%
Asian American – 69%
African American – 59%
Other Multi-Cultural – 61%
A Santiago Solutions Group Study stated that Hispanic Americans represented over $650 billion in purchasing power in 2003. “Advertisers and agencies alike have recognized the vitality and spending power of multicultural consumers,” said O. Burtch Drake, president and CEO of the American Association of Advertising Agencies. “The ability to effectively reach diverse consumers is a must for agency businesses in order to be competitive and address consumer needs.”
The majority of the large national networks have specifically developed agencies to handle multi-cultural accounts. In addition, a number of independent agencies have been created across the country to handle the growing demand of advertisers to market specifically to these multi-cultural groups. “Corporate America is beginning to recognize the size and strength of the Hispanic market and the advertising dollars are beginning to follow,” said Manuel E. Machado, president, Association of Hispanic Advertising Agencies. “To fully capitalize on the potential of this market, advertisers need to partner with the right agency who understands the nuances of the market.” As of November 15th, the AdForum.com agency directory included over 500 agencies in the U.S. with multi-cultural experience.
