Researching the Hispanic consumer is an area of specialization for all of us here at Global Media. Whether it be with Spanish-language media or with radio stations with a predominantly Hispanic-focused target, we are drawn to the challenges of researching and extracting valuable, data-driven insights from this important and diverse segment of the US population.
It's no secret that Hispanics represent a sizable part of the US population, currently estimated at 57 million out of the total population of 322 million. By 2050, this figure is predicted to hit 106 million out of a total population of 398 million, according to a special report "America's Hispanics" from this week's Economist. In addition to the sheer size of this demographic, another metric that caught our attention is that the Hispanic American purchasing power is equivalent to that of the world's 16th largest country (that puts it somewhere between Canada and Spain). For those of us in the entertainment industry, this power is especially dominant when it comes to Hispanics and their music. Case in point: Romeo Santos, a Bachata artist who was raised in The Bronx and comes from Dominican/Puerto Rican heritage, is largely unknown to most Anglo consumers; nonetheless, he has sold out Yankee Stadium twice and continues to pack 50,000+ seat auditoriums from Buenos Aires to Mexico City. For media outlets that consistently struggle with declining market share particularly with younger audiences, it's especially encouraging to see that the median age of the Hispanic population is 28 (compared to 42 for whites) and that it drops to 18 with American-born Hispanics. Harnessing this injection of youth and energy is and will be a significant opportunity for any media firm that opts to target Hispanic audiences.
Researching this large and important consumer segment presents its own set of challenges, especially when it comes to music and entertainment. Just getting your arms around the inherent diversity of this demographic is a challenge in and of itself. There is first and foremost the issue of language preference. Nielsen estimates that about 23 million Hispanics are Spanish-dominant, 22 million are English-dominant, and the fastest growing group, 4.5 million, report using both languages equally. Needless to say, targeting these distinct segments requires different approaches. A "one size fits all" strategy is no longer a viable approach. Additionally, a similar customization, one that is rooted in country of origin, is paramount in targeting today's Hispanic population. In its latest findings, The Pew Research Center asserts that 64% of the 57 million Hispanics in the US claim Mexican heritage, 10% hail from Puerto Rico, 9% are from Central America, and 7% are from either Cuba or The Dominican Republic. In our own research with these distinct groups, tastes in music and in other entertainment vary wildly. The best broadcasters realize that success in growing market share results from understanding what each segment wants and using this information to produce and deliver as optimal a product as possible.
We specialize in researching this part of the population because we feel the passion it has for entertainment and clearly see the growth potential that it currently offers and will continue to provide to the American economy.
