Understanding multicultural audiences requires more than just a general statement of inclusion. Marketers need to embrace the shift and begin examining how to reach more diverse groups of people through their marketing.
The demographics of the U.S. continue to change and grow more diverse. Brands must understand diversity and inclusion to better empathize with multicultural audiences—and to increase their brand awareness and consideration from the demographic. Today, 40% of the U.S. population is multicultural, yet marketers continue to underspend on multicultural advertising and neglect to understand multicultural groups’ paths to purchase.
The three major multicultural groups in the United States are African Americans, Hispanics, and Asian Americans. Together, this market segment holds $4 trillion worth of buying power, and it offers an opportunity for businesses to diversify and cater to multiple ethnicities.
As with nearly all consumers, it’s clear that these groups want to share their purchasing history with friends and family. If marketers want to be effective, they need to be attuned to the cultural influences that determine why people in these multicultural groups buy certain products and why they’re loyal to certain brands.
Consumers know they have a nearly infinite number of choices on the market today. So many categories are saturated with new players just trying to get their foot in the door. To stand out from the pack, marketers need to craft a consistent message that audiences will actually hear and respond to. Marketers who want to truly resonate with their audience need to dig deeper into these multicultural groups and consider spending habits, age, geographic location, and more.
Reaching Your Audience
A well-balanced omnichannel approach is essential when advertising a brand. Marketers must understand the impact of each media channel and how it resonates with each multicultural target group.
The median age of the Hispanic population in the United States is 30, making it the youngest ethnic and racial group in the country. This group spends over 14 hours a week on their smartphones and devotes 50% more time watching subscription videos and listening to streaming radio than the general population. The takeaway: digital ads play a large role when reaching Hispanic audiences.
When focused on Asian American audiences, target heavy media users by overexposing in multiple channels rather than focusing on a single channel. This market segment embodies a high awareness, low consideration model unlike most other ethnic groups. Nielsen’s Auto Path-to-purchase survey suggests brand consideration among Asian American audiences does not improve until they spend at least six hours a day online. With today’s digital technology, increasing frequency with a properly targeted message can earn long-time loyalty purchases from Asian American audiences.
The Future Is Multicultural
In 2023, the spending power of the Asian American population is projected to reach $1.3 trillion, and the Hispanic population is projected to reach $1.9 trillion. African American, Asian American, and Hispanic populations are expected to make up the majority of the U.S. population by 2045.
Multicultural groups are also relatively young groups. As marketers consider current and future strategies, they have to think about how consumers interact with technology and media today. Some people are more likely to watch TV, whereas others are more comfortable consuming social media.
Multicultural marketing encompasses countless factors, but the core is the same as any type of marketing: every company needs to align its brand with the people that they most want to serve. Demand Local has both the resources and marketing know-how to design multicultural marketing campaigns that reach their targets. Getting people to listen today isn’t easy, but we know how to rise above the noise so your customers will actually hear your message. Talk to our experts today and let us help you expand your customer base and reach new markets.