13 Million U.S. Hispanics Log On Each Month - Marketers May Be Overlooking Key Segments of this Target

-Over 5 Million Log On from Work and School
-10 Million Are Bilingual and English Preferred Users
-Vast majority visit culturally relevant sites in Spanish in the US as well as in their Country of Origin


As the Hispanic market online usage mushrooms, advertisers are recognizing the value in reaching this segment. In an era where return on investment is a must, it is essential that online audience measurement be as thorough as possible. Advertisers need to take a step back to evaluate the whole picture.

Terra.com invites you to take a closer look at some important metrics that often go uncounted, and can greatly impact a marketing plan.

Internet Usage at Work and School

It is a known fact that Internet usage at work is significant and growing. In the general market, that number represents 33% of users and the U.S. Hispanic market mirrors general market behaviors when it comes to the Internet. This dynamic makes for a potential four million Hispanic users with the vast majority of them (93%) on a broadband connection, having a richer Internet experience. In this scenario, the advertiser has access to a captive user viewing emotive, commercial like ads.

The “at school/university” user represents 7% or nearly 1 million Latino Internet users. When combined, the "at-work" and "at-school" user accounts for 40% of the Internet audience, or five million Hispanic users. The bottom line -- nearly half of the market is overlooked when we don’t measure this “at work” and “at school” user.

Research indicates that 80% of all on-line ads are consumed by broadband users. In the vast majority broadband users are consuming at work and represent a typically white collar, higher income user. This highly sought-after, higher earning user can also be targeted with day part advertising, which has proven to be highly targeted and cost-effective. In fact, research indicates that 35% of online shopping takes place at work.

Source: Online Publishers Association, January 2003
UCLA Internet Report, “Surveying the Digital Future: Year Three”
EMarketer – “North America Online Usage”, February 2003

Segmentation by Country of Origin

The duality of the U.S. Hispanic user is such that they use U.S. sites as well as sites from their country of origin. This behavior represents an excellent opportunity for learning in-depth data of the user and a very specific segmentation approach can be taken in marketing campaigns. Trends in online behavior indicate that more than half of U.S. Hispanics online visit sites in their country of origin regularly.

Our network of 15 Latin American in-country portals offers an excellent opportunity for segmented campaigns. Southwestern Bell (now SBC) came to Terra.com when seeking the business of Mexican-Americans who call Mexico. Through the strength of the Terra network, we were able to pinpoint, geo-target and serve SBC advertising to Terra users who logged on to Terra from a Texas locale and then visited Terra’s portal in Mexico. Mexicana Airlines ran a similar campaign targeting Mexican-American U.S. Hispanics who travel to Mexico.

Language Preference – Bilingual vs. BiCultural

There are 3.4 million or 28% of Hispanics online who are bilingual and visit sites in Spanish. There is a larger segment of English preferred Hispanics, 6.5 million or 52% , who visit Spanish language sites. Altogether, almost 10 million or 80% of U.S. Hispanics Internet users are either Bilingual or English Preferred. Yet research shows that Spanish language advertising has a higher impact (4 ½ times more persuasive) than English advertising even for bilingual and English preferred consumers. Hence it is of the utmost importance to track these users as they surf the Internet in Spanish language sites.

Source: comScore Hispanic Panel, Sept. 2003

Online U.S. Hispanic Purchasing Power

In 2003 Hispanic purchasing power reached nearly $600 billion. Over 2 million “bilingual” U.S. Hispanics online have a household income of $40,000 plus. Over 4 million “English preferred” U.S. Hispanics online have a household income of $40,000 plus. There are 1.2 million “Spanish preferred” users with a household income of greater than $40,000. All combined, this means that more than half the Latinos online are in the $40,000 plus income category.

Source: comScore Hispanic Panel 2003, U.S. Census Bureau

What this means for the advertiser

As this research shows, aside from being one of the fastest growing minority groups, Hispanics have quickly taken their place on the Internet which is jam packed with marketing potential. Recognizing the tremendous impact of the outlined differences in Internet usage is key for advertisers. It isn’t enough for marketers to realize that the Internet is as important an advertising medium to reach this market as Spanish-language television, radio and print. What is important is to realize how diverse this group is, culturally and linguistically, and to understand that by not looking at the full picture, a growing segment of U.S. Hispanics are not being optimized in campaigns.

To effectively put advertising dollars to good use, the advertiser must be aware of these trends:

• By having access to broadband Internet connections at work and at school, Hispanics enjoy a richer Internet experience and the advertiser has an opportunity to use emotive, commercial-like ad campaigns;
• With 35% of online shopping taking place at work, it’s critical to understand the habits of this higher income U.S. Hispanic, and target this niche directly, more cost-effectively.
• Because U.S. Hispanics frequently visit sites from their country of origin along with U.S. sites, highly targeted, segmented campaigns can be successful.
• Although there is a high number of bilingual and English preferred U.S. Hispanics online users, research also shows that Spanish-language advertising is 4 ½ times more persuasive than English-language ads.

Will U.S. Hispanic consumers pass you by as they surf the Internet? Be a smart marketer. Make the most of your advertising dollars and don’t overlook these trends.

 

Will Healey
Terra Networks
Direct: (212) 898 6653
Mobile: (646) 418 4225
E-mail: will.healey@corp.terralycos.com