Go to any television news channel, newspaper or magazine and the headlines will read “Economic Crisis,” or “Consumer Confidence Down.”
According to Fortune’s March 24, 2008 article “Bad news for Big Media,” the “media industry watchers are no longer debating whether the United States is in recession.” As marketers we must ask ourselves not only ‘how we can get more bang for our buck’ but how much worse will it get – and how can I help my client or brand pull ahead in these tough economic times? Let’s face it ad spending is being cut, but an innovative intelligent marketer can still turn things to their advantage.
According to Pricewaterhouse Coopers’ latest forecasts, 2008 ad spend will decrease from $298.8 billion to $290.3 billion. Increases in spend will be seen online, particularly within social networking sites – but keep in mind these are emerging mediums that can only see their numbers go up as they increase in popularity. Yet as marketers, we know that we cannot limit ourselves to these now popular channels. These sites are flooded by a younger demographic that do not retain the largest buying power or perhaps the niche opportunity we are looking for. So, what does?
Global Advertising Strategies was recently invited to speak to national retailers and developers at the ICSC’s Mid-Atlantic Idea Exchange in Washington DC. Joining us in a panel discussion titled “Retail Market Segmentation: From Boomers to Generation Y, Learn What Retailers and Developers Are Doing to Address Shifting Demographic Trends in the Mid Atlantic Region,” were industry leaders from Home Depot, Fresh Market, Cold Water Creek and the Washington based Economic Research Associates (ERA.) The hot topic of the day for retailers was the growing and untapped immigrant markets. According to Patrick Phillips, President & CEO of ERA, “these markets represent the best growth opportunity for retailers today, and ethnicity is what we need to be paying attention to.”
In these tough times, we all need to begin to think outside of the box and lead the trend – following only makes us fall behind. This means going beyond traditional multicultural marketing to Hispanic and African American groups. According to the 2005 U.S. Census Community Survey – of the 4.27 million increase in the U.S. population from 2000 to 2004, 2.08 million can be attributed to South Asian and Asian Americans. They are also the fastest growing segment in the state of New Jersey, and 36% of the people in San Francisco County are of this ethnicity.
According to Mr. Phillips, “Dallas, Chicago, Minneapolis, New York and Boston owe almost all of their recent growth in population to various immigrant groups. From 1990 to 2000, Dallas saw a population growth of 18.1% of which over 16% are immigrants.” Both Houston and Dallas have seen a high percentage growth of immigrants from South Asia, one of the fastest growing and most affluent ethnic groups in the United States today.
According to the 2006 Census Figures, the median household income of the South Asian population is $78,315, the Filipino is $72,548 and that of the Russian population is $67,181. These numbers are rather elevated in comparison to the mainstream white population, which is estimated at $51,429.
All of these diverse ethnic groups represent large opportunities for every marketer and every brand. In particular, many of the country’s leading insurance, banking and retailers such as Wal-Mart have been growing their investment in the non-Hispanic immigrant markets through both the bust and boom economic cycles.
Like many, the multicultural consumer wants the highest quality product for their dollar, but unlike the mainstream ‘white’ consumer, they do not view the same media. A young gentleman named Dhanesh met and spoke with me at the Mid-Atlantic Retail Conference. He is a young and intelligent South Asian who explained to me that he loved his Bollywood movies and that he would pay more attention to a brand if marketers tried to reach him on Zee TV, or through other South Asian channels, particularly if they are culturally sensitive. According to Dhanesh, some of the best examples come from the insurance industry.
These multicultural mediums whether they be print, television, radio or online have been proven effective and they provide marketers with greater returns on investment. It is important to recognize that although Asians may pick up the Wall Street Journal or New York Times, they much prefer to spend their free time reading the leading Chinese publication, The World Journal. The Chinese reader will more likely pay attention to an ad placement in this outlet than they would in the Wall Street Journal or the New York Times. Just think of how often we as marketers may not pay attention to an advertisement unless it is our own.
Also, imagine a South Asian’s surprise to see a brand’s full-page ad in their ethnic media, such as India Abroad. Isn’t the element of surprise in itself most effective? Keep in mind as well that the New York Times will charge anywhere from $50,000 to $100,000 for an ad placement whereas a South Asian print outlet will demand anywhere from $700 to $1700. How much more could a marketer increase its brand’s visibility? These immigrant groups are also brand loyal and once arriving in the U.S. present an opportunity for marketers to tap into their market.
The multicultural marketing 2.0 era is changing how we need to achieve our business goals. The current economic slowdown provides us not with a negative but with new opportunities to increase our brand’s awareness through new mediums within untapped markets. These groups are actually much more simple to reach than many think and marketers should not feel daunted by the unknown. The diversity of our marketplace is growing. Even Mayor Bloomberg of New York has recognized this and has proclaimed Thursday, April 24, 2008, to be “Diversity in Advertising / PR Career Day.”
Now let’s go back and ask ourselves, “how can we effectively grow our brands in an environment of economic insecurity?” It is really not that difficult. In an ever-shrinking global market, the opportunities are only ever increasing. One just needs to know what to look for within these emerging marketing channels, and to be courageous enough to lead the trend. Only then can the possibilities can become endless.
