TOTAL MARKET APPROACH
The notion of the “Total Market” is one of the most important and hotly debated recent developments in multicultural marketing. According to a recent AHAA (the Association of Hispanic Ad Agencies ) benchmark study, approximately 54% of advertisers have adopted the Total Market strategy to some degree, including market leaders like Walmart, McDonald’s, Pepsi and Toyota. The Total Market approach involves integrating multicultural into every facet of a brand’s marketing and business practices, in acknowledgement of the highly diverse ethnic and cultural makeup of the U.S. consumer base as a whole.
Total Market leverages universal truths and insights that span across segments, and is inclusive of Caucasian, Hispanic, African American, Asian American and LGBT audiences. This broad strategy can lead to significant efficiencies: a single budget is used to reach all segments; the same creative idea is adapted to different audiences; and some believe that a single language—English—suffices to reach all audiences. Critics of the Total Market approach contend that the brand connection may be lost in diluting the brand message to the lowest common denominator. What do YOU think?
In 2013, global mobile subscribers surpassed the six billion mark, sales of smartphones surpassed feature phones for the first time, and data traffic grew by 80%. Mobile appears to be the device that defines our time.
In the United States, Hispanics are at the epicenter of this trend. Young, tech-savvy Hispanics 18-25 are the single most likely U.S. segment to use and purchase a new mobile device. In fact, bilingual Hispanic mobile users are 39% more likely to own a smartphone than the average user(1). And they are using their mobile devices, more than any other segment, to access the Internet –over 76% of Hispanic Internet users accessed the web on mobile devices, vs. 60% of whites(3).
Advertisers are starting to catch on. While only 21% of advertisers in a recent AdAge survey cited mobile advertising as a marketing priority in 2013, a full 47% did so in early 2014. Programmatic digital advertising should help drive and accelerate this trend. RadiumOne, an advertising software company, projects that Mobile advertising will exceed analysts’ estimates to represent 30% of the entire digital spend in 2014.
FIFA WORLD CUP™ 2014
According to the publisher of Spanish-language newspaper Al Dia in Texas, “The World Cup is… the Superbowl, Final Four, World Series and NBA Finals, all in one(4).” The FIFA World Cup™ is indeed the largest sporting event in the world, watched by nearly half the globe’s population in 2010. In the United States, due largely to Hispanic population growth, fútbol has emerged from sporting subset to mainstream phenomenon, overtaking hockey as the 4th most popular sport in the nation.
With nearly four billion global TV viewers expected to tune in to Rio 2014, the World Cup is a monumental opportunity for brand exposure. FIFA sponsors Adidas, Coca Cola, Visa, Continental and McDonalds have invested in a shared total rights package worth nearly U.S. $9 Billion. But there is plenty of opportunity for the smaller brands as well, particularly in the burgeoning digital, mobile and social media space. Is your company leveraging the World Cup action?
Programmatic digital media buying, or computerized trading of digital advertising, is rapidly gaining traction in the U.S. According to a 2013 Magna Global study, “43% of total online display advertising will be traded through programmatic mechanisms (or exchanges) in the U.S. by 2017”, up from 23.3% in 2013(5). Another forecast from RadiumOne estimates that programmatic will represent a full 60% of the total 2014 digital ad spend(6). It’s all evolving rapidly, driven greatly by mobile growth.
We predict that Programmatic digital advertising is a promising tool in solving the issue of scalability in digital advertising. Working much like computerized securities trading on Wall Street, programmatic trading can be very efficient, and useful in targeting demographic segments like Latinos. With Hispanics leading the way in digital and technology consumption, there is much growth opportunity in Hispanic-targeted video, social media, and mobile. Companies like Batanga, Alcance Media, Pulpo Media, Videology, Yume and other Hispanic players are leading the charge in exploring the potential of programmatic advertising models in the Hispanic space. Programmatic will continue to be a buzz word in 2014 and beyond.
The growth of digital video has been explosive, and the sky seems to be the limit. Video saw the greatest increase in ad spending among all digital ad formats in the U.S. between 2012 and 2013. eMarketer projected video spending to surpass $4.14 billion at year end 2013–more than doubling 2011 spending! And, video spending is projected to double yet again in 2017 to over $9 billion. According to a recent eMarketer survey, 75% of brands and agencies find video to be equally or more effective than TV(7).
Much of this growth is coming from mobile, a tide that’s lifting many ships. Facebook, Twitter, Instagram and YouTube all have an expanding mobile presence.They are all supporting video ads in content feeds; and increasingly, they’re targeting Latinos, avid consumers of mobile phones and digital video. As long as hand-held devices with screens continue to flourish, the possibilities for video marketing are seemingly endless.
Together, these five exciting trends in multicultural marketing make up the perfect storm. The Total Market represents a diverse population, growing in size and in purchasing power. With the explosion of mobile and tablets, there’s a large and growing number of screens out there, plus a growing trend toward screen agnosticism. Producing video material is now easier, more inexpensive, and more accessible than ever before. It’s no wonder digital video is skyrocketing! And we’re seeing the digital ad models follow the money with programmatic and other digital advancements. All this forms the perfect backdrop for the 2014 FIFA World Cup™ to kick off—and be seen on many, many screens across the globe.
Interested in learning more? Give us a call at 1-800-837-4648 or email us at email@example.com.Sources: (1) Ad Age Hispanic Fact Pack 2013. (2) 2012 Hispanic Mobile Consumer Trends Study, Zpryme Research & Consulting. (3) Pew Hispanic Center, “Closing the digital divide: Latinos and Technology Adoption”, March 7, 2013. (4) Portada, 7 key growth Drivers that will propel 2014 Hispanic Marketing 1/6/14. (5) Portada, Will Programmatic Trading also lead in the Hispanic digital media market? 3/20/13. (6) HispanicBusiness.com, RadiumOne Lists Top 5 Advertising and Marketing Trends for 2014, 12/30/13. (7) BrightRoll blog, 2013 US Video Advertising Report: Digital Video is Firmly Rooted and Growing, 4/30/13.