AHAA Study Of 18-34 Year Old Hispanics Challenges Companies To Take A New Approach To Advertising.

Hispanics are big business. And, Hispanics age 18-34 are the largest slice of this ever-growing pie. Boasting nearly 12 million consumers, a buying power increasing 14 times the rate of the traditional market, a high propensity to spend, a willingness to try new products, the tendency to be early-adopters of new trends and products and high media consumption, the 18-34 year old Hispanic market is the Holy Grail of advertising.

A new study conducted by the Association of Hispanic Advertising Agencies (AHAA) in conjunction with Simmons Market Research Bureau identifies the psychographic profile, language preference, media usage and buying habits of Hispanics age 18-34. The study reveals that more than half of Hispanic 18-34 year olds (68%) are Spanish-Dominant or bilingual (Spanish being the primary language spoken at home). Some of the reports findings are:

* 18-34 year old Hispanics are consuming Spanish and English broadcast media at nearly equal rates with Spanish-language television and radio outpacing English-language television and radio;

* A greater percentage of young Hispanics shop at more store types than do young non-Hispanic adults;

* Young Hispanics are more likely to be impulsive shoppers. They like to keep up with styles and will spend what they have to look younger – more so than non-Hispanics young adults

* Young Hispanic adults are heavy readers of magazines with lifestyle, entertainment, automotive and sports-focused titles taking the lead;

* 18-34 year old Hispanic consumers are more persuaded by advertising in Spanish and are more loyal to companies with ads in Spanish;

“The research shows that young Hispanics still speak Spanish and respond to Hispanic cultural clues. This comes at a time when corporate marketers are increasingly confused about how to reach these consumers,” said Aida Levitan, Ph.D., president of AHAA. “Because young Hispanics are setting so many trends, smart companies are now using cross-over campaigns by developing their Hispanic market campaigns first and then using these campaigns for the general market. This trend is setting the advertising world on its head. If corporations want to properly target the Hispanic market, the keys for them to have the right advertising partner that can truly understand Hispanics and that knows how to deliver this marketshare.”

Additional findings include:

* 18-34 year old Hispanic consumers like to try new things and have not necessarily developed brand loyalties;

* Young Hispanics are impulsive and like to make purchases on the spur of the moment but they also believe that ads give the true picture of a product or service;

* Staying on top of trends is extremely important to young Hispanic adults. As such, this group is a frequent purchaser of clothing, health and beauty products, food and beverages, entertainment and home furnishings. They are the first to have the latest electronic equipment and are willing to pay full retail value for it.

* Young Hispanics are trendsetters and are frequently the source of information for their friends about the latest styles, technology and trends.

Corporations looking to reach these consumers need to have messages that are not only in English but in Spanish, are to the point and are culturally relevant, use new and contemporary images that speak to the image-conscious nature of this demographic. Further, because young Hispanics consumers are early adopters and often set the trends for other groups, it is strategically important for corporations to target them early in a product life cycle.

Corporations such as Pepsi, Pennzoil, Crest, Altima, Anheuser-Busch, BellSouth and McDonald’s, especially those targeting young market segments, are increasingly using their Hispanic campaigns to appeal to a wider audience and are realizing significant return on investment.

“The one common thread to all of these successful cross-over campaigns is that they all have AHAA agencies,” added Levitan.

For more information at http://www.ahaa.org