Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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Selling to Hispanics
Hispanics and African Americans are generally brand loyal, but they are increasingly willing 
to try new or different brands on occasion, according to the 2005 Yankelovich "MONITOR 
Multicultural Marketing Study." 

While 62% of African Americans and 58% of Hispanics agree that "it's risky to buy a brand 
you are not familiar with," 80% of African Americans and 73% of Hispanics say they "like to 
try different brands once in a while."

Additionally, Hispanic consumers are about evenly split on which language they prefer to use 
in every situation. Nearly 40% prefer Spanish; 41% prefer English; and 20% prefer both; 
while 65% feel "my native language is an important aspect of my culture and traditions that is 
important to preserve." The study revealed that many Hispanics also share a common optimism 
about life - despite suffering turmoil in their native countries, many respondents said they are 
simply happy to be alive. 

The study did identify warning signs for marketers if they do not appeal to and understand 
Hispanic and African American consumers in meaningful ways. Both Hispanics and African 
Americans have begun to show signs of frustration with traditional marketing techniques, 
which may lead to future resistance. Nearly 70% of African Americans and just over half 
(53%) of Hispanics say they are "extremely concerned about the practices and motives of 
marketers and advertisers," while 50% in both groups agree that "very little, if any, of the 
marketing and advertising I see has any relevance to me." 

This is supported by study findings in which: 
-- 72% of Hispanics agree "there should be more television or other commercials directed 
specifically to Hispanic consumers."

-- 91% of African Americans and 88% of Hispanics "wish more financial institutions would 
offer products and services with me in mind."

-- 87% of African Americans and 86% of Hispanics "would like to participate in more 
activities that celebrate my heritage."

"The Spanish language is extremely important to Hispanics and they feel a need to preserve it; 
but, they also recognize the need to master English in order to succeed and enjoy life in the 
U.S. ," said Sonya Suarez-Hammond, director of Yankelovich. "Hispanics are using both 
Spanish and English language media and communicating in both languages. Marketers need to 
use both languages in order to establish cultural and personal relevancy with the Hispanic 
consumer. That said, it is also important to note that Spanish is the language of the heart and 
provides communication intimacy in brand messaging."

Source: Yankelovich MONITOR 7/6/05

Advertising in Spanish means loyalty
The results of the fourth annual People en Espanol's Hispanic Opinion Tracker (Hot) finds that 
the Spanish language is very much alive among U.S. Hispanics. According to the report, 75% 
of all Hispanics feel loyalty to retailers who advertise to them in Spanish; while 65% of Hispanics 
indicate that Spanish language is more important to them than it was five years ago.

In addition, the report finds that Spanish-dominant Hispanics (21% of the total Hispanic population) 
are consuming more Spanish-language media than they did three years ago. In the 2002 HOT 
survey, 20% of total Hispanic media consumption was in Spanish and 80% in English. In the 
2005 survey, 27% of media consumption was in Spanish.

The survey finds that Hispanic consumers are more likely to go shopping and are less likely to use 
credit cards than the general market. At the same time, Hispanics tend to spend almost twice as 
much on clothing and accessories. Survey participants said they spent $1,992 in the last 12 months, 
compared to the $1,153 the general market consumer spent on clothing and accessories.

Source: People en Espanol; AdAge.com 7/18/05

Use of Spanish expected to increase
A study released by Hispanic U.S.A. challenges the assumption that the use of Spanish will decrease 
in coming years. In study, "The Future Use of the Spanish Language in the USA " Projected to 2015 
and 2025," finds that the number of Spanish-dominant and bilingual Latinos will increase by 45% 
over the next two decades -- adding 12.4 million speakers to the current population.

And it's not just because of continuing immigration. Unlike other immigrant groups, even third-generation 
Hispanics - those born of Latino parents who themselves were born in the United States - will continue 
to speak Spanish in extraordinarily large numbers.

The study, conducted by Roslow Research Group on behalf of Hispanic U.S.A., is based on an analysis 
of census data and national research by multiple institutions, which projects the use of the Spanish 
Language through the year 2025. 

Among other findings: By 2025, the number of Spanish-speaking Latinos in the U.S. will reach 
40.2 million, up from 27.8 million today; Two-thirds of Hispanics 5 and older will speak Spanish 20 years 
from now; On average, 35 percent of third-generation Latinos in the United States speak Spanish; The 
18-and-older Spanish-speaking population will increase by 53 percent, to 15.2 million by 2025; The 
key 18-to-49-year-old demographic will grow by 7.5 million, and will include 59 percent of all the 
Spanish speakers.

Source: HispanicAd.com, 7/25/05 

Hispanics and Housing
As a result of the rapid population growth and the youth of the Hispanic population, 30% of the growth in 
U.S. households between 1990 and 2003 is attributable to Hispanics, according to the study, "The Roof 
Over Our Heads," by Esperanza USA. During the same period, Hispanics accounted for one-fifth of the 
country's growth in owner-occupied household and three-quarters of the growth in rental homes, 
according to the 2003 American Housing Survey (AHS).

In 1981 only 1.28 million home loans were made in the U.S.; however, by 2003, 
41.56 million loans were made to U.S. homeowners, with 12% of all mortgage loans going to Hispanic 
applicants and 8% to African-American applicants (Using Federal Financial Institutions Examination 
Council (FFIEC) 2004 figures). Between 1993 and 2003, the number of mortgage loans made to 
Hispanic homebuyers rose 236% in just 10 years from 157,434 to 528,529, according to FFIEC figures.

The nationıs Hispanic population is disproportionately concentrated in urban housing markets; however, 
the median Hispanic income is lower than Whites. As a result, Hispanics tend to spend more of their 
income on housing. Hispanics nationwide, spend, on average, 26% of their income on housing, compared 
to 19% for Whites. 

Source: HispanicAd.com, 7/25/05 

Births
A new analysis of birth records by the Center for Immigration Studies finds that immigrants (both legal and 
undocumented) accounted for a larger share of births in 2002 than in 1910, during the peak of the last great 
wave of immigration. 

The report finds that in 2002, 23% of all U.S. births were to all immigrant mothers, compared to 1%% in 
1990, 9% in 1980 and 6% in 1970. 

The Center estimates that 383,000, or 42%, of births to immigrants are to undocumented mothers. This 
translates into nearly one out of 10 births in the United States. The top country for immigrant births, Mexico, 
increased from 24% of births in 1970 to 45% in 2002.

The Center, which favors restricted immigration, compiled the data from birth records collected by the 
National Center for Health Statistics. The records do not include where a childıs father was born.

Source: Center for Immigration Studies 7/5/05 

Internet Usage

More U.S. Hispanics use the internet to make final decisions about brands than their general market counter 
parts, according to the third annual AOL/Roper Hispanic Cyberstudy. 

In this year's survey, 69% of respondents said they go on line to learn about features and benefits on specific 
brands before making a purchase. That's up from 61% in the last survey. 63% of Hispanics surveyed use the 
internet for information to help them decide which brand to buy, compared to 52% of the online, general population.

The study indicates that Hispanics are rapidly catching up with the general market and are surpassing 
non-Hispanics in areas like listening to and downloading music and instant messaging.

The survey telephone was conducted of online subscribers.

Source: Center for Immigration Studies 7/5/05 

All in the Family

Banking on the success of "Dora the Explorer," Nick Jr. will spin off Dora's popular cousin Diego to his own 
action-adventure series! The animated preschool show "Go, Diego, Go!" will debut in primetime featuring Diego, 
a bilingual animal rescuer and nature expert, embarking on interactive journeys and adventures with viewers on 
Nickelodeon.

Source: Nickelodeon, 6/15/05 
Want to reach Hispanics? Here's two advertising guides to help you do it.

Advertising- Hispanic/Latino Market Advertising Guide

Advertising- Hispanic/Latino Market Advertising Guide- Master Series
(Mention this ad and get the Master Guide at half price.)

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