Now representing over 20% of the U.S. population, the Hispanic market is uniquely complex to engage with given its cultural diversity.
Immigrants from Mexico, Cuba, and many other Spanish-speaking countries, as well as U.S. citizens from Puerto Rico are included. Perhaps more than you might expect, dialects, cultures, behaviors, interests and values vary among Hispanics. Despite the variances, Claritas’ annual Hispanic Market Report uncovers several insights financial brand marketers should make note of to serve and optimize engagement with the booming market.
Last month, Claritas released the annual Hispanic Market Report, a deep dive into the demographics, behaviors and preferences of the most rapidly growing segment of the US population. This year’s key findings:
The Hispanic Market is Burgeoning in Size and Strength
Hispanics now represent over 20% of the U.S. population, with projections showing continuous growth over the next five years. By 2030, more than 75.8 million Hispanic people will live in the U.S.
This demographic’s influence is further accentuated by their exceptional spending power, which now approaches $2.5 million in remaining lifetime value for the average Hispanic household. Standing at nearly 68.5 million, the Hispanic population has been a significant contributor to the nation’s population growth, accounting for more than 62% since 2010. In stark contrast, the non-Hispanic white population has seen a decrease of almost 5% within the same timeframe.
Demographic growth: The U.S. Hispanic population has almost doubled in size since the 2000 Census and is projected to increase by another 7.4 million by 2030.
Consumer influence: Hispanic households’ remaining lifetime spending is estimated to approach $2.5 million, significantly impacting various sectors such as retail, housing, education, and technology.
Income growth: Households with incomes above $200,000 are expected to spike by over 10% from 2023 to 2024, highlighting a growing affluent segment within the Hispanic community.
Cord-Cutting Warrants a Mobile-First Approach
Hispanic households, already known for their tendency to forego telephone landlines in favor of smartphones, are outpacing their non-Hispanic counterparts for cord-cutting in the cable/satellite TV space as well. Most Hispanic adults (79%) report watching less than 1 hour of live TV per day.
We note a trend toward the use of mobile service providers as the primary Internet provider in the home, especially in Hispanic households where bundling mobile, Internet & TV services is becoming more popular.
One of the important themes of this report is that brands should be considering a “mobile-first” approach to the Hispanic market. This is certainly the case in the financial services industry. Hispanics are significantly more likely to prefer to interact with financial institutions via their mobile devices.
Dig deeper into demographic marketing:
- The Great Wealth Transfer: How Banks Win the Next Generation of Business Owners
- Language Arbitrage: How Bank Brands Speak to New Markets
- The Great Checking Account Migration: How Marketers Grab Growth in 2024
More Time Spent on Social Media, Streaming Content and Web Browsing
Social media ads: With 31.3% of Hispanics spending 1-2 hours and 27.4% spending 3-5 hours weekly on social media, platforms like Facebook, Instagram, and TikTok offer prime opportunities for targeted ads. Advertisers should prioritize visually engaging, mobile-optimized content to capture attention on these highly engaging platforms.
Streaming content: With 31.7% of Hispanics spending 1-2 hours and 27.7% spending 3-5 hours on streaming platforms like YouTube, there is a strong opportunity to engage users through video ads and sponsored content during their viewing sessions.
General web browsing: With 29.6% of Hispanics dedicating 3-5 hours to web browsing, Google’s paid search and display ads provide an excellent opportunity to capture interest. Advertisers can focus on search engine marketing (SEM) and display ad retargeting to reach Hispanic consumers across their browsing journeys. By leveraging these kinds of digital advertising, brands can optimize their reach and engagement with a tech-savvy and mobile-first Hispanic audience.
They Have a Strong Preference for Mobile Interactions with Financial Institutions
Hispanic consumers have a strong preference for mobile interactions with
financial institutions, with 45% using their mobile device to access accounts, and 30% preferring to interact through mobile channels. This contrasts with the higher reliance on laptop/desktop interactions seen among non-Hispanics (26%).
Customer service is more frequently used by Hispanics (23.3%) compared to nonHispanics (19.7%), indicating that a more personalized, service-oriented (inlanguage) approach could yield strong results.
The Impact of Influencers, Value and Preferences for In-Person and Social Standout in Retail
To capture the full potential of Hispanic consumers, it’s essential to provide a seamless, value-oriented shopping experience.
Preferences for Value and Convenience are Consistent in the Auto Category
The Hispanic market gravitates towards discount retailers like Discount Tire Co., Costco, and Walmart. They also favor well-known auto parts stores such as AutoZone and O’Reilly Auto Parts for their competitive prices and product variety. Conversely, there is a lower preference for auto dealerships and specialized stores, indicating that Hispanics may perceive these options as less advantageous in terms of value and convenience
The implications of this year’s findings are many and detailed throughout the report. Most importantly, they point to one major requirement for success. As the Hispanic population continues to grow while increasing in spending power and lifetime value, marketers across all categories need to develop the right strategies to engage these audiences or they will be left behind.
With over 35 years of experience working with market research, segmentation, analytics, digital marketing and geographic information systems, Ron Cohen is senior vice president, practice leadership at Claritas. Ron has worked for Claritas in the U.S. for 10 years designing and developing marketing information products and services for the retail, financial services, telecommunications, media, automotive, pharmaceutical and consumer packaged goods industries. Prior to joining Claritas, Ron worked at Geoscape and was responsible for research, analytics and international products including their technology platforms. His experience also includes several years in the financial services industry as well as 3 years with Commodore Business Machines.