 |
|
|
 Technology News | December 2005 
Hispanic Consumers are Moving from Spanish to English to the Internet
 Jesus Chavarria - Hispanic Business
Media Markets Report shows the Hispanic market simultaneously confronting two profound shifts: Hispanic consumers are moving from Spanish to English, and at the same time from traditional media to the Internet. The double crossover has caused confusion about the direction of the market on both Madison Avenue and Wall Street.
The two trends originate from the same underlying demographics. Hispanics' progress in education, income, English-language usage, and product sophistication makes the conventional Spanish-only media strategy of the past 30 years seem inadequate. Growth of the second and third generation means young Hispanic consumers have more English-language skills and less connection to a country-of-origin culture. In that context, the slowing growth of Spanish-language ad spending since 2003 looks like a rational response to changes in the market.
But since 2002, online ad spending to reach Hispanics has grown 900 percent, according to the Internet Advertising Bureau. Online expenditures now total an estimated $100 million. That's more than several traditional media categories, including out-of-home and magazines. And clearly the Spanish-English shift fuels the traditional-to-online media shift: More than three quarters (79 percent) of U.S. Hispanic Web visitors express a preference for English or bilingual Web sites, according to comScore Media Metrix.
The way the two trends have occurred simultaneously demonstrates the market's rapid development. Minority populations often lag behind the general market's front edge, but in this case the Hispanic market has kept pace. The U.S. general market is suffering from the same dislocation of advertising and media – as Google, Yahoo!, and other sites take dollars and audience away from national broadcasters and newspaper chains.
So far, Hispanic marketers and media outlets have struggled to adapt to the shifts, with varying degrees of success. Attempts at bilingual media such as Mun2 and some local newspapers haven't produced any high-profile successes. Univision has developed a Web portal, but without providing any English-language content. Many Hispanic media outlets have decided to stick with "businesses that are slowing due to new media," in the words of Kit Spring, an analyst at Stifel, Nicolaus & Co.
Hispanics on Internet More Affluent Than General Population
In the 80 plus metropolitan markets surveyed regularly by The Media Audit, 46.0 percent of adult Hispanics or 8.5 million access the Internet regularly and 19 percent or 3.5 million are heavy users (430 minutes per week or more) of the Internet.
Bob Jordan, president of International Demographics, notes that "Hispanic adults (age 18 plus) who frequent the Internet are considerably more affluent than other Hispanics and adults in the general population."
According to the survey data, 51 percent of Hispanics who accessed the Internet at least once during the previous 30 days have a household income of $50,000 or more. In the general adult population of the metropolitan markets surveyed, only 44.9 percent have household incomes of $50,000 or more. Of all Hispanics in the general adult population, just 31.8 percent have household incomes of $50,000 or more.
"Hispanics are still lagging the general population in Internet use, 45.9 percent versus 61.2 percent, but in affluence they are much closer," says Jordan.
Approximately 49.0 percent of Hispanics between the ages of 18 to 54 access the Internet on a monthly basis. In the general population approximately 69.0 percent of that same age group frequents the Internet on a monthly basis.
"Beyond age 54 Internet use among Hispanics drops off pretty dramatically," says Jordan, "Approximately 33.0 percent of Hispanics between the ages of 55 to 64 use the Internet and 22.7 percent of those between the ages of 65 and 74 use the Internet" In the general population, approximately 57.0 percent of those 55 to 64 use the Internet, and use among those 65 to 74 has increased to almost 36.0 percent.
"The educational differences between Hispanics on the Internet and the Hispanic population in general are dramatic," says Jordan, "While 27 percent of all Hispanic adults in the 80 markets we survey have less than a high school education, just 8.8 percent of Hispanics who frequent the Internet are lacking a high school education. Among those who are heavy users of the Internet that figure drops further to 6.4 percent." |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us