Cross-cultural Digital Marketing Effectively reaching Hispanic, African-American, & Asian communities Digitally Multicultural Marketing Conference Saint Paul, MN

2013 March 26,

2 Overview • Introduction • Multicultural Marketing Models

– Multicultural Marketing Defined – 3 Types of Multicultural Marketers – 3 Approaches to Multicultural Marketing

• Overview of Multicultural Digital Market – Hispanic Digital Marketing – African-American Digital Marketing – Asian Digital Marketing

• How to Approach Multicultural Digital • Sensis Vision: Cross-cultural with Digital at it’s core

Introduction

4 A little about me

5 I’ve been working in advertising for the last 13 years

My background : – Economics – Digital technology – Management consulting

I kind of stumbled into this business…

Jose

6 … and I’m one of the few people you’ll meet that runs a successful ad agency that never

worked in advertising before.

7 my story explains a lot

• 1998: I left a consulting career to start a Hispanic-focused

dot com

• Since that day, I found myself in the middle of a transformation of the advertising industry

8 Sensis • I started Sensis in 2000, a couple of

days after shutting down my dot com.

• Sensis was started to address a small gap I saw in the ad business during my dot com days.

• During the last 13 years I’ve realized that “the little gap” was actually bigger and more transformative than anything I could have ever imagined in 2000.

9 Agency Profile

• Advertising & digital agency • 37 employees • $12 million in revenue (2012) • Offices locations:

– Los Angeles, CA – Washington, DC – Mexico City, Mexico

• 15 years in business • Independent, minority-owned

Multicultural Marketing Models

11 Multicultural marketing defined

12 let’s start with some definitions Multicultural markets = various minority groups

• Hispanic • African American • Asian American • GLBTQ • Other

– Middle Eastern, European, South Asian, Native American, Disabled, …

13 “General Market”

• Caucasians + minorities

• An amalgamation of all ethnic groups, including Whites, Hispanics, Blacks, Asians and everybody else

14 3 States of Multicultural Marketing

15 3 states of multicultural marketing

Active multicultural

marketers

Inactives Past

multicultural marketers

Newbies new entrants

into multicultural

markets

16 3 Models of Multicultural Marketing

17 No efforts aimed at multicultural

audiences or integration of multicultural programs

Model 0: Irrelevance

18 84% of all U.S. population growth

from 2000-2010 came from Hispanics, African-Americans and Asians

19 38% of 18-34 year olds are

multicultural

20 Lead with “general market”

distinct and separate multicultural programs

Model 1: Traditional

21 Traditional Model of Multicultural Marketing

22

Toyota “somos muchos latinos”

23 Integrate multicultural into general

market; Program extensions into specific ethnic

(sub) segments

Model 2: Cross-cultural

24 The new way – “Cross-cultural”

25

Taco Bell “Live mas”

Multicultural Digital Market

27 Hispanic Digital

28 65% of Hispanics access the Internet*

29 Hispanic Internet Penetration

30 Largest Social Networking Sites Among Hispanics

Source: comScore, December 2012

31 Mobile Phone Usage Among Hispanics

Source: comScore, December 2012

45%

34%

Hispanic General Market

Hispanics over-index in smartphone usage

Source: Sensis Hispanic Mobile Report, April 2012

33 Hispanic Mobile Profile

Source: Sensis Hispanic Mobile Report, December 2011

34 Smartphones as Computer

Source: Sensis Hispanic Mobile Report, April 2012

35 Top Online Activities for Hispanic Consumers

Hispanics are more likely to read or write

movie reviews, download

videos/music, and watch TV shows

online than general population

Source: Sensis Hispanic Mobile Report, April 2012

36 Hispanic Consumers Research Online Before They Buy

Source: Sensis Hispanic Mobile Report, April 2012

37 The behavioral basics What most people know

• Price sensitivity / deals ethic • More social in key activities (e.g. shopping)

Source: Sensis Hispanic Mobile Report, April 2012

38 Lesser known digital behavioral What most are not aware of…

• Many Hispanics are early technology adopters • Many Hispanics are influencers

• Some misconceptions – Use of social media --- very different than general market – Digital divide still exists

39 How Hispanics use digital media?

• Hispanic consumers are diverse, so blanket generalizations don’t usually hold across a market of 35-40 million online users

• Our Hispanic Persona Project identified 4 distinct “behavioral” segments across the Hispanic digital consumer landscape

– Only 2 could be described as “heavy” digital media consumers, particularly when it comes to digital music

Source: Sensis Hispanic Persona Project, April 2011

40

41 Hispanic In-store Mobile Experience

Innovative research on Hispanic in-store mobile use

www.HispanicMobileReport.com

Source: Sensis Hispanic Mobile Report, April 2012

Top activities while shopping at a store

Chart page 11

Top Activities While Shopping at a Store

Source: Sensis Hispanic Mobile Report, April 2012

It’s all about the best deal

• Care more about finding the best deals

• Use anonymous mobile product reviews far less

Source: Sensis Hispanic Mobile Report, April 2012

44 In-store price-checking is not about Amazon… it’s about the store across town

Source: Sensis Hispanic Mobile Report, April 2012

45 Hispanic Mobile

• Shopping is a social affair • Deals ethic • No showrooming

Source: Sensis Hispanic Mobile Report, April 2012

46 Some insights from the trenches

47 Hispanic Digital Experience

48 Some Insights

• Heavy mobile users – mobile ads have very high response rates

• In some categories, English is key to reaching them --- portrays legitimacy

• Tablet adoption is driving Internet access among older, Spanish-dominant and less acculturated cohorts

• Complex info best presented in anecdotal, story format

49 Some Insights Younger Hispanics

• Important of authenticity to younger, acculturated segment • Looking to “connect” with their culture, even if they don’t

speak Spanish

50 African American Digital

51 5 truths of the digital African American consumer

• They are ahead of the digital curve – utilizing video, mobile, and other platforms to interact online

• They are vocal – Digital is their microphone

• They are avid searchers • They are more thorough

– In their pre-purchase research

• They are more receptive – To digital marketing

Source: Nielsen African American Consumers 2012 Report

52 African American Geography and Generational Distribution

Source: Nielsen African American Consumers 2012 Report

53 Average Time Spent with Media

Average Time (Hours) Spent Per Day… TOTAL AFRICAN

AMERICAN AA/TOTAL

DIFFERENCE Avg Time Spent on Internet on Home Comp per day 3.1 3.3 0.2 Avg Time Spent using IM per day 2.0 2.2 0.2 Avg Time Spent Texting on Cell Phone per day 1.6 2.0 0.4 Avg Time Spent Watching Videos online per day 1.8 1.9 0.1 Avg Time Spent Eating per day 1.3 1.5 0.1 Avg Time Spent Using Internet on Tablet per day 1.2 1.4 0.2 Avg Time Spent Listening to Music online per day 0.9 1.2 0.3 Avg Time Spent on Computer Video Games per day 0.9 1.1 0.1

Avg Time Spent Playing Video Games on Tablet per day 0.8 1.1 0.2 Avg Time Spent Emailing per day 1.0 1.0 0.0 Avg Time on Internet on Cell Phone per day 0.9 1.0 0.1 Avg Time Spent Reading E-books per day 0.9 0.9 0.1

Source: comScore, February 2013

54 Media Consumption

Source: Nielsen African American Consumers 2012 Report

55 Effective Advertising

Source: Nielsen African American Consumers 2012 Report

56 Mobile

• 54% of African-Americans own smartphones

Source: Nielsen African American Consumers 2012 Report

57 Top Advertisers & Media Spend

Source: Nielsen African American Consumers 2012 Report

58 Online

Source: Nielsen African American Consumers 2012 Report

59 Social Media

Source: Nielsen African American Consumers 2012 Report

60 African-Americans Use of Search Engines

• 72% of African Americans use search daily • 2% feel that their searches are successful • They notice search ads more often than the representative

population we surveyed, click on them and find them more useful.

http://www.google.com/think/research-studies/five-truths-of-the-digital-african-american-consumer-video.html

Source: Google

61 16% of African Americans cannot live without a computer with internet access, significantly lower than the total population at 22%

Source: Google

62 Asian Digital

63 China, India, Philippines, Vietnam, Korea and Japan comprise 86% of the total Asian population.

65 Asian Americans skew younger than the total U.S. population (41 years vs. 45 years) Household size slightly larger than the total U.S. population (3.1 vs. 2.6).

Source: U.S. Census Bureau

66 Highest growth rate since 2000

200% Growth States • Florida • Georgia • Texas • Minnesota • Ohio • Iowa • Indiana • Arizona • Nevada

3 out of 4 Asian Americans are foreign-born

Source: U.S. Census Bureau

68 28% higher than the total U.S. median income.

69 Digitally connected

70 60% of Asian TV Households reside in the top 10 DMAs

71 Online Video

Asians spend twice as much as time watching Web videos social media and

mobile devices

Weekly Web Series • Produced in English, targeting young

Asian Americans • Korean soap opera format (very

dramatic) • 10 million views & 4,700 comments on

outcome of story!

72 Popular Websites

73 Pay TV & Telecommunications

Money Transfer

74 Insurance

Financial

Auto

75 Fast Food/Beverage Wine & Spirit

Hotels/ Casinos

How to Approach Multicultural Digital

77 How does digital fit into an effective multicultural marketing effort? Depends on your situation and model.

78 Active multicultural

marketers

Newbies & Inactives

79 “Newbies” and “Inactives” Digital as a test, learn and scale (TLC) tool

• Can help determine what model to adopt

• Can help figure out how to message and approach the

multicultural markets

• Hyper-targeting

80 “Actives” Expand into Digital Direct Response

• Paid Search – Targeting ethnic audiences using a variety of techniques (browser language,

keywords, geography, etc.)

• Behavioral Targeting

– Retargeting – Network activity

81 “Actives” Opportunity to expand, evolve your multicultural marketing

• Test & Learn Model 2 cross-cultural approach

• Evolve into more digital-centric, oriented multicultural marketing program to focus on:

– Utility – Content – Native advertising – Community building

Our Vision: Cross-cultural with Digital at it’s Core

83 50% of babies born today in the

U.S. are not white

84 Multicultural consumers are changing the

general market

85 Cross-cultural Strategic Territory Framework 5 Cross-cultural Marketing Approaches

Cultural Community • Participating in long-standing

community-based cultural events & programs

Cultural Currency • Partnership with talent or a

prominent figure within the community

Cultural Authenticity • Connecting with new GenMkt

based on insights driven inward (multicultural) to outward (gen mkt), or vice-versa

Cultural Confluence • Turning a segment’s cultural

values into attributes relevant to what’s considered the general market

The Cultural Loop • Linking a brand with a social

cause or purpose

86 Cross-cultural Strategic Territory Framework Our Cross-cultural Approach

Cultural Community • Participating in long-standing

community-based cultural events & programs

Cultural Currency • Partnership with talent or a

prominent figure within the community

Cultural Authenticity • Connecting with new GenMkt

based on insights driven inward (multicultural) to outward (gen mkt), or vice-versa

Cultural Confluence • Turning a segment’s cultural

values into attributes relevant to what’s considered the general market

The Cultural Loop • Linking a brand with a social

cause or purpose

87 Digital-centric advertising

88 Website Social Media Mobile

Digital Advertising

Email Content [Marketing]

Analytics E-commerce

8 Components of Digital Strategy

89 Balanced POEM Model • A balanced POEM model involves

using Paid, Owned and Earned media in concert to deliver the most cost-effective and impactful results possible.

• The focus shifts from Paid Media as emphasis and Earned Media as the purview of PR to balancing all 3

• Each type of media plays a key role: catalyst, portability, result

90 Content

Utility

91 Community building

Native Advertising

92

@jrvilla

www.linkedin.com/in/josevilla

www.thinkmulticultural.com

Thank you