This year, Amazon made headlines with its purchase of Whole Foods. Very. Big. Headline.
Smaller headline: A Spanish-language version of Amazon.com.
Talk about burying the lead!
About 18% of the U.S. population is of Hispanic origin, and more than 38 million speak Spanish at home.
Nielsen data shows that Hispanic buying power is expected to reach $1.8 trillion by 2021, and it continues to rise in the fast-moving consumer goods (FMCG) market.
So why the modest headline?
We wondered if a lot can be attributed to today’s political climate and the current immigration debate, but some of us thought it might have something to do with brick-and-mortar.
Yup, you read that correctly.
Fierce competition from online grocers and on-demand delivery services have been capturing a lot of the attention lately, but there’s an equal amount of neighborhood supermarkets that are connecting the dots for Hispanic consumers.
Several supermarket strongholds already cater to the Hispanic community, like Mi Pueblo and Cardenas, both started by immigrants. Publix Sabor and Kroger are also innovating to meet the demand for multicultural foods.
German grocery stores Aldi and Lidl view the U.S. market as ready for penetration and expansion. Aldi, a sister company of Trader Joe’s, is set to expand its number of stores to 2,500 by 2022. Lidl opened the first of 100 stores this year, with plans to reach 600, according to Business Insider. Both chains are penetrating markets with solid and emerging Hispanic populations, and they’re pricing competitively. In May, Lidl said it would price products up to 50% lower than rivals.
To compete with Amazon, these supermarkets will have to “deliver” on what really matters to Hispanic grocery shoppers, increased access to products that reflect their culture and tastes as well as the ability to shop online grocery shelves.
Hispanics and Mobile: Always Connected
We only have one word for reaching Hispanics: Mobile.
Hispanics are considered early adopters in Ecommerce and plan to outpace Non-Hispanics in online shopping for grocery purchases. According to an IRI study, “Hispanics tend to shop online more than non-Hispanics in several critical categories, including cosmetics, fragrances and beauty, and general household products.”
While the growth rate of the Hispanic population in the United States has leveled over the past few years, the Hispanic population is projected to reach a record 58.6 million in 2017, according to the latest estimates from the Census Bureau.
Today’s political climate is sure to generate a change in Hispanic immigration, as well as a fundamental shift in the overall Hispanic market. Most growth within the segment will come from U.S.-born births, resulting in more acculturation.
How does this all relate to your digital marketing strategy?
Reaching, engaging, and meeting the diverse needs of the Hispanic consumer is essential for your brand, so you better reach for your cellphone. Hispanics are mobile-first.
(Hey, that’s cool. So is our DSP!)
The U.S. Hispanic population is reliant on a smartphone for internet access. Sixty percent of US Hispanics access the internet primarily on their phone. According to the “Mobile Fact Sheet” from the Pew Research Center, 23% of Hispanics do not use broadband at home, but own a smartphone.
Thirty-eight percent of Latina Millennial moms who consider their household “Spanish-preferred” are smartphone dependent, and 71% seek parenting advice online weekly or more often.
Think with Google found in a research study with Ipsos MediaCT that:
83% of Hispanic consumers who access the internet on a mobile device use it while in a store to inform a purchase in real time.
66% of U.S. Hispanics say they pay attention to online ads—almost 20 percentage points more than the general online population.
Whether “English-dominant,” “Spanish-dominant,” or fully Bilingual, the majority of Latinos feel that brands should reach out in both English and Spanish. This is important to consider when planning a wider multi-channel digital strategy that may include social, advertising, content and influencers.
To kick-start things, we asked our platform gurus for some tips to apply these statistics to your mobile strategy.
Here are a few digital strategies to help you reach and engage the Hispanic shopper:
- A/B test Spanish language creatives in high-indexing Hispanic geo-locations, focusing on zip codes, cities, or geo-fenced areas.
- Test Spanish-language devices versus those high-indexing locations.
- Assure that on top of being user-friendly, your mobile landing page is translated properly into Spanish and you have proper landing pages for dialects. The same goes for your social media advertising. Don’t rely on auto-translation tools.
- Seriously consider Video. Latinos over-index on video. A lot of that video watching happens on mobile, as smartphones are becoming the “first screen.”
- Focus on your visuals, and be sure they are culturally relevant and seamless across your omni-channel.
- Think multi-channel. Include a search strategy with any display activity. Search is one of the top means for finding information and reviews.
- Include Audio in your mix. Hispanics over-index in online radio listening, with Millennials garnering the highest consumption. (See our article on audio for more.)
- Include Behaviorial targeting to increase ad effectiveness and get a deeper understanding of your potential consumers so you can deliver what interests them the most.
- Be engaging in your social media communication and advertising, so you spark some activity that will drive recommendations from Hispanic users.
- Develop an in-app strategy for mobile native display ads. Apps are very popular within the Hispanic community, specifically messaging apps for keeping in touch with family and friends.
Get in touch with us to learn more about our multicultural digital strategies.