Multicultural Marketing Investments Expected To Grow In 2022

By Isaac Mizrahi – Co-President of ALMA

As we start a new year, there’s a sense of optimism regarding the expectations around multicultural marketing investments. Before the holiday break, I connected with a few industry leaders representing different segments and discussed the trends for 2022.

Here’s an edited version of my conversations with Albert Rodriguez, President and COO of SBS – Spanish Broadcasting System, one of the country’s leading Hispanic radio networks, Nita Song, President IW Group, a leading AAPI focused advertising agency, John Kozack, Executive Vice President Multimedia Sales at Univision and Michael Roca, Managing Director, DE&I Investment, Omnicom Media Group.

1 – Do you see 2022 with a higher demand for Multicultural media/creative services?

Michael Roca – Yes – I see it for Hispanic, Black, AAPI, and LGBTQ+ communities. We will see typical spikes of increased culturally relevant creative during the heritage month celebrations (February for Black History, May for AAPI Heritage, etc), but with the stronger potential of expanding into more moments throughout the year.

Nita Song – Yes, I believe there will be increasing demand for Multicultural creative and media in 2022. We have seen that this past year, and we also see increased multicultural casting in “general market” creative, which I predict will also continue to grow. A key question will be: Will clients effectively support the growth of both strategies?

Albert Rodriguez – It’s fascinating that many advertisers seek innovative, culturally engaging media campaigns/creatives that truly speak to the multicultural audience. As it relates to the Hispanic community, the fingerprints of our culture can be found across all forms of media. Whether through bilingual audio campaigns, the rise of Latin music, and the growth of diverse talent representation within the general market and Hispanic campaigns – nuestra gente, our people are everywhere. The message couldn’t be clearer, especially with the latest census results, the minority community is on the rise, and if you’re not growing with them, you’re hurting your business.

John Kozack – Yes, I do. In fact, we already have more new business clients laid in with our Upfront than ever before. Advertisers are seeing that running a generic spot on English language is not enough to deliver meaningful results to truly connect and build affinity with this audience. The simple fact is that in-language and in-culture creative drives higher recall and return on ad spend for advertisers. Combine that with the fact that brands know what a powerful growth segment Hispanic consumers are, and it’s hard to overlook Hispanic-targeted media.

2 – Why do you see the above trend?

Roca – The progressive cultural narrative is pushing all brand decision-makers to be more inclusive, and the reason behind this is because they are now accountable from Wall Street to their C-Suite.

Song – The racial and social justice issues of the pandemic required brands to take a critical look at their DE&I strategies and impact and prioritize their efforts. Additionally, the 2020 Census results confirmed the growth of multicultural populations. And finally, I believe the pandemic moved brands to focus on future-proofing strategies, including Gen Z, the most racially and ethnically diverse.

Rodriguez – It’s a combination of many factors: the social justice movement, the growing minority population, and their spending power; the influence Black, Hispanics, and Asian-Americans have on mainstream culture and their ability to tell if brands are making a concerted effort to foster a deep, meaningful connection. Frankly, the higher demand for multicultural media shouldn’t be considered a trend but a necessity.

Kozack – This is two-fold. First, the recognition by brands and marketers for the need to be more inclusive in their marketing plans. There has been a real effort over the past year to invest in minority-targeted media to reach multicultural audiences authentically. Second, with the demo shifts and new census data, marketers are waking up to the fact that not only is minority media investment the right thing to do, but it’s also an investment in their future growth.

3 – Is this driven by existing brands, “comeback brands” (decreased or canceled past multicultural plans due to Total Market and now are back), or new entries?

Roca – It’s from all brands, the multicultural heavy hitters, the brands who have been dormant, as well as newcomers who are now dipping their toes in the waters.

Song – Both. Brands that have come back stronger, and new brands/categories including pharma, streaming services, and entertainment.

Rodriguez – We’re seeing existing, major brands step up and take the lead through powerful multicultural campaigns that address real issues that impact all people of color at the forefront. They are changing the game and are forcing other brands to follow. While it’s become quite the domino effect, and we see the results in our year-over-year revenue growth, there is still a lot of work to be done. Brands need to do more than multicultural marketing; they must also invest in the community and businesses.

Kozack – It’s a combination of both. We’ve seen brands come back because they saw their business results suffer after deemphasizing our audience. On the other hand, our new business pipeline with new entries into the market has never been stronger. In fact, categories like pharma and direct-to-consumer brands have stepped up and are seeing meaningful business results.

4 – Do you have any other comments about your expectations for 2022?

Roca – Many marketing plans are riding the DE&I wave, so we need to make sure we continue to educate brand decision-makers on the difference between multicultural marketing and DE&I; they both need each other but have very different swim lanes.

Song – I anticipate 2022 will be another wild ride, but we’ll all be stronger than ever, given what we’ve all gone through in the past two years. We’ll all be figuring out post-pandemic life, community/society will be more important than ever, and we’ll all need to stay fluid during this “great reshuffle” of talent.

Rodriguez – We embraced the challenges of 2020 and 2021 with ingenuity and innovation. Our passion for propelling through the tough times has set our foundation for 2022. We’re open for business and working closely with brands on developing innovative cultural marketing solutions that reach our loyal audience.

Kozack – I expect this trend to continue and accelerate in 2022. Brands and agencies will want to continue to make sure that they are delivering on their promises to reach underserved audiences. And the acceleration will come from advertisers realizing first-hand how their investments pay off, especially when it comes to building their brands and driving affinity and consideration with growing, loyal, and spending consumer groups.

While the higher level of investment in multicultural marketing is good news, marketers should understand that investments alone may not deliver the expected results if other steps are not taken, like for instance:

• Make sure you have an adequate level of investments, based on segment size and growth expectations.
• That any investment in multicultural media is part of a comprehensive multicultural business plan.
• From a communication standpoint, the creative messages are based on relevant segment insights and authentic messages instead of generic versions that follow a “one-size-fits-all” approach.
• Surround yourself with true segment experts.

In 2022 and for years to come, diverse segments will become increasingly important for marketers looking for growth, and this will also impact the level of sophistication and attention dedicated to multicultural marketing. It’s an exciting time to work with this segment, but it’s also time to develop better, deeper, and stronger capabilities in the multicultural ecosystem.