The third day at Hispanicize 2012, the place where Latinos told the truth, happened in fast motion. Hundreds of professionals were hopping from one conference to another while millions were listening via social media. According to Adrian Carrasquillo, social media manager for NBC Latino, the conversation around #hispz12 generated 30.5 million impressions in the first two days, reaching more than 4 million people.

The Acceleration of Everything

Mark Lopez, head of U.S. Hispanic at Google, started the fire with impactful data about technology adoption. It took 360 days for the iPod to reach 1 million units, 74 days for the iPhone, and only 28 days for the iPad to reach that same goal. It’s clear that screens are fragmenting: still there’s a big audience on TV; the experience should be complemented by timely online content.

The explosion is also evidenced in the Latino population, where search has grown 11 times in the past five years among Hispanics.

“People don’t go to a specific site; they use search to find content and then land on a website,” said Mr. Lopez. “Digital needs to be open and scalable.”

The executive emphasized how Google is working on making sure that ads are more relevant in order to improve the user experience. Video is playing a major role, but with every 10 days a century is uploaded to YouTube, so engaging the audience is becoming more challenging. Creative agencies have 5 seconds to engage consumers before they skip an online video. The upside is that Google doesn’t charge advertisers if a user skips a pre-roll commercial.

Lopez addressed the challenges of using Google for search. “Forget about algorithms; marketers should impact conversations with paid results,” he said. Regarding language, Latinos’ searches happen in English and Spanish, so you need to make it culturally relevant. Talking about content, Google’s 100 new channels will generate 9,000 original TV hours annually across 18 genres.

Later today, Google reported a 24 percent rise in Q1 revenue – clear evidence that when Mark talked about the acceleration of everything, he really meant everything.

The Acceleration of Culture

Our panel on New Generation Latinos generated lots of reactions (both live and on Twitter). David Chitel, founder of the New Generation Latino Consortium (NGLC), shared the new realities of Latinos in America. Bicultural, English-dominant/bilingual, urban, mostly U.S.-born, majority under 40 – these are some of the key descriptors of the NGLC.

Javier Farfan shared PepsiCo’s vision about multicultural marketing. When he joined the organization, his team name changed from multicultural to a more inclusive “cultural branding.” “It’s not about talking to a specific segment or using a specific language, it’s about connecting to human values,” the executive said. A sample of case studies was enough to demonstrate his approach. A partnership with “Machete” star Danny Trejo for Brisk; hiring Sofia Vergara as the spokesperson for Diet Pepsi with commercials that air on English TV; and leveraging David Beckham’s connection with Latinos.

My presentation focused on challenging the Latino marketing community (agencies, clients, and media), asking, “Will we repeat the same mistake?”

Ad agencies and media put the Latino consumer in a cage: they speak Spanish, and consume Spanish media – primarily TV. The realities that Chitel shared didn’t happen in a day. So now that clients are being exposed to this new face of Latinos, we are at risk for putting Latino consumers in another cage: they speak English, consume English media, and are heavy online consumers. This new “stereotype” might prevent companies from doing cultural branding.

Data and consumer behavior shows that Latinos’ reality is more complex, showing a more bilingual behavior when it comes to language and media usage. And this is also true for second-generation Hispanics.

We must learn from the media. As you can see on the chart below, the media is exploring new options, specifically targeting Latinos. Why would NBC or FOX or Google invest millions in creating new media options (either in Spanish or both) if their current English content is already “capturing” Latinos’ preferences?

Technology has redefined acculturation by both accelerating and slowing its process. Consumers can learn how to navigate American culture much faster, but can also stay connected to their original country via Skype, to name an example. Latinos’ unique bicultural expression is about adding new interests rather than replacing it. In the meantime, when it comes to advertising, Latinos don’t feel ads speak to their ethnicity. Latinos don’t want to follow but rather be perceived as influencers. They want to be portrayed as both mainstream and unique when it comes to advertising.

The acceleration of everything has also impacted Latinos. The cage is gone!

Related posts:

1. The Day Latinos Told the Truth
2. SXSW Meets Latino Marketing

Today was the second day of Hispanicize 2012 in Miami. It was a fully packed event with lots of speakers and a very curious audience trying to figure out where Latino marketing is heading.

As Greg Knipp, CEO of Dieste, shared with me, #hispz12 is poised to be one of the most revealing and interesting conferences about Latino marketing. Everyone was looking for answers, and it seemed that today was the day that Latino professionals decided to share some very insightful truths.

Great Ideas or Simply Latino Ideas?

Creatives gathered around an interesting topic: the challenges of selling breakthrough Latino creative.

Sergio Alcocer, president of LatinWorks, started the fire: “Agencies complaining about their clients and clients complaining about their agencies is something unique to our industry.” For him, some clients are not willing to take risks because they don’t want to put their jobs in jeopardy. It’s up to agencies to push back and defend great ideas. If we don’t show our clients that we are willing to lose an account because of our conviction, why would clients take the risk?

Diego Yurkievich, SVP creative director of Alma DDB, discussed the new landscape: “We put the consumer at the center of creativity in order to build conversation,” he said. “Our approach is about providing social creativity.” For Diego, ideas are still ideas; it’s the way you build those ideas that has changed.

Today, creatives need to allow consumers to play a more active role and learn not to be in control.

The panelists agreed that clients tend to ask what’s Latino about a specific idea instead of focusing on if the idea is good or not, pushing agencies to make it more stereotypical.

Educating clients, pushing back, and aligning on what success is for a specific brand is critical. There’s a disconnect between what agencies and clients define as success.

Dangerous Liaisons

When it comes to television and social media, relationships can turn into something dangerous. But that’s good news according to Telemundo’s successful case study around its “Relaciones Peligrosas” (dangerous relationships) show.

By having social media as an integral component since day one, the Latino TV network started to build a deep engagement with its fans.

Personal Twitter accounts were created for each of the main characters, providing them with a BlackBerry and training into social media best practices.

Live streaming of the novella via Facebook allowed viewers to interact with the cast. The night of the launch was critical: Facebook chatting with actors helped kick off the dangerous liaisons, adding 8,000 active users in the first 45 minutes. Scripted thoughts of each character shared in the form of a tweet helped established a personal relationship with the audience.

“We know that our audience is very needy,” shared Karen Comas (@karen_comas), social media manager at Telemundo, “so we need to post more often to keep up with their expectations.”

With more than 20 million impressions on social media on premiere night, the network was able to engage with an audience of 18-34-year-old Latinos. The future is social TV and Telemundo’s goal is to transform its entire digital team into a multi-platform storytelling team, the panelist added.

Creating the Right Connection

There’s a huge opportunity connecting Latin Americans with the U.S. market. BlackBerry decided to seize that opportunity by starting the quest of finding untapped new talent in Latin America that could succeed in the U.S. “We went to favelas in Brazil and barrios in Venezuela,” said David Anon, senior director of marketing at BlackBerry. “Everyone was collaborating via a Blackberry.”

Scouting for a new artist wasn’t the end goal but the starting point for “Q’Viva! The Chosen” platform.

Tapping into a core Latino passion point like music, BlackBerry was able to partner with Marc Anthony and Jennifer Lopez to create a reality TV show to enable participants to thrive. It was less about the competition and more about finding the right talent.

Funny to hear Ms. Lopez sharing how she used the BlackBerry PlayBook as a working tool to watch participants while Marc, according to her, was just playing games on his tablet.

The show was number one on Latam networks and ran in Spanish on Univision as well as on Fox in English (a subtitled version).

Organic integration was critical, both online and in broadcast. BlackBerry supported J.Lo’s new album and Marc Anthony’s concert. It also had a protagonist role on The Ellen DeGeneres Show with an integration focused on Latino content on an English show. Hundreds of PlayBooks were given away to the live audience with packaging specially designed with the Q’Viva look.

The Q’Viva Facebook page reached more than 132,000 fans and 55 million social media impressions. The BlackBerry website benefited from a 3,000 percent increase in traffic since the show launched on Univision.

Truths and Myths on Latinos’ Concerns

There was a very passionate discussion about how to win the Latino vote in the “Coming of Age: The Latino Electorate in 2012.” Verena Sisa, VP of strategic planning at Conill/Saatchi & Saatchi, presented a very insightful study about the current mindset of Latinos living in the U.S. Forty-eight percent of Hispanics believe their culture has created an impact on American culture, especially in food, television, and politics. Political consultants and advisors stressed the importance of the immigration debate as part of their agenda to win Latinos’ votes. The Conill study showed that immigration is not a top priority for Latinos. As with most Americans, job security, price of gas, making ends meet, etc. seemed to be more important. Different agendas? Or simply there’s a gap between truths and myths about Latinos’ mindset? Politicians seem to be disconnected from Latinos’ realities. Hopefully marketers will get the message if they want to win Latinos’ votes.

Related posts:

1. SXSW Meets Latino Marketing
2. Targeting Latinos on LinkedIn

I still remember the day Manny Ruiz asked me to join as a member of the Hispanicize advisory board. 2012 wasn’t simply the third year for the event; it was a major turning point. Manny had a clear vision: “Think South by Southwest meets Latino,” he said. The successful Latino event, previously focused on social media and bloggers, would add marketing and entertainment content. “People think I’m crazy,” he said, “but it’s worth trying.” That was the motivation I needed to say: “I’m in.”

It’s been crazy for both of us since then. For Manny, that meant lots of planning and running an ambitious Latino event. For me, that meant helping to organize the content for the marketing section as well as “recruiting” new speakers for Hispanicize 2012 (#hispz12).

Today, after very dynamic and intensive sessions, I agree with Manny. He is crazy, but he is not the only one. There are more than 700 participants who share this craziness about the new trends of Latino marketing.

Dealing With the Digital Divide

As part of the “Latino Digital Divide” panel, we had an interesting debate with José Marquez-León. He provided an interesting perspective from a community standpoint. His organization, Latinos in Information and Technology Association (LISTA), is encouraging the use of technology for the empowerment of the Latino community to conquer the digital divide.

From a marketing perspective, as I explained in a previous column here at ClickZ, the Latino digital divide no longer exists: Latinos are leading technology adoption. They are over-indexing in everything social and in new device adoption and they are leading the path toward the mobile web. While Google predicts that mobile web traffic will surpass PC traffic in 2013, Latinos are already doing that. So instead of thinking of Latinos as tech laggards, marketers should be using them as a test market for mobile.

I agree with Marquez that there’s still room for increasing technology adoption among certain Hispanic groups. Programs like Comcast “Internet essentials” offering broadband access for $9.95 a month is a great step. I encourage professionals to help support initiatives like this. Brands can really benefit by supporting the community and empower Latinos by helping them satisfy their digital hunger.

Is Social Media a Fad? Let’s Measure That

The third Latino Social Media roundtable took place today as well. I was honored to be part of that conversation with colleagues representing clients, media, marketing, and PR professionals.

There was a general agreement that clients are investing more in building Latino social media platforms. Disney shared how aggressively it is using Facebook and Twitter to engage with Latinos in a very successful fashion. Laura Spencer, social media manager at Disney, shared her approach to sticking to proven successful tools. “Don’t fall in love with cool new stuff like Pinterest” she said.

Borja Perez, SVP, social media at Telemundo shared the long-term commitment that the media company has toward social media while delivering great results: Telemundo’s fan base has almost doubled in the past year. Borja also shared updated stats on how Latinos over-index in digital and was loud and clear regarding the critical piece that the Latino market represents. “By 2015 if you don’t invest in the U.S. Hispanic market there will be no market for you” the media executive said.

From personal experience, I see there’s a growing interest among clients in using digital to engage with Latino consumers. Clients get the numbers. They see the importance. We’ve been successful in educating clients on how Latinos can be a great testing ground. I also shared how CPG companies are building multi-branded platforms targeting online Latinos. Unilever Vivemejor and Comida Kraft are great examples of this trend.

When discussing metrics, we all agreed that we must focus on those that are relevant to a specific business or brand. You can not have a single approach. Perez shared how Telemundo uses a variety of tools like comScore, Adobe’s Omniture, Google Analytics, and Facebook Insights to track its social performance. I shared the approach we use with our clients. First, that everything can be measured doesn’t mean it’s important. Second, we measure social media with the same metrics you apply to regular media: reach, frequency, effectiveness, and efficiency. Third, we measure the engagement level generating a score that, combined with standard media metrics, can be tracked and compared to other clients’ programs.

There was a unanimous consensus about social media delivering great results: everything but a fad.

Engaging Aspiring Celebrities

Blogging was also a major topic discussed during different panels. There’s been an explosion of Latino bloggers in the past years (it increased 10 times versus 2009). There was a big discussion on how to engage with bloggers. Laura Spencer mentioned how Disney deals with a lot of different bloggers to cover different conversation topics as well how important it is to expect from bloggers the same ethical codes that you would expect from The New York Times. Hispanicize CEO Cristy Clavijo-Kish said bloggers need to continue to evolve, also agreeing that should meet the same standards as newspaper writers. The social media expert added that marketers need to understand that bloggers have to be paid for their work. The blogger engages an audience who’s intrigued with the content and that is something very valuable to brands.

My personal take is that bloggers are not necessarily journalists, so we shouldn’t treat them like that. In an era where consumers trust other people more than they trust brands, people are turning into media. Bloggers are like aspiring celebrities. They have their fan base that follows them and trusts them. Celebrities get paid for brand endorsement – people know that. They also know that they need to “enjoy” a pre-roll ad video before accessing “free” content online. It’s the rule of the game. If brands do the proper due diligence in choosing the right “aspiring celebrities” to act as their brand ambassador, paying bloggers will not be an issue.

Latino Marketing in Beta

As I’m getting ready for today, I realize how digital and social media have been impacting just about every aspect of our jobs. Brands must have a long-term commitment if they want to succeed. If not, why lose your time and money? Social media is reshaping the way we do marketing. It’s not a fad. It’s not an add-on. And once you learn to have a beta approach to marketing, there’s no way back. “Are your brands ready for social media? Are you willing to let consumers post negative stuff about your brand in your own Facebook wall?” asked Disney’s Laura Spencer. “Marketers need to learn to live in a world in beta.” That’s also great advice for of all us trying to contribute to the future of Latino marketing.

Related posts:

1. Winning the Mayorship of Latino Marketing
2. The Latino Social Hurricane

Last Friday, I had the privilege to interview David Iudica, director of strategic insights and research at Yahoo, regarding the second phase of Ethnodynamics.

According to the study, developed by Yahoo, Mindshare, and Added Value, marketers must understand the nuances between the two generations of Hispanics, and how acculturation affects their preferences.

Also, it emphasizes the importance of the vast Latino population growth with a projected spend of $1.5 trillion for 2015. I can’t help but think about “Casa de mi Padre,” the latest Will Ferrell movie, which was developed completely in Spanish in a clear attempt to reach Hispanic moviegoers.

The Evolving Latino Consumer

The findings stress the notion of how the majority of the Latino population is second generation, American born, and bilingual/English speaking. My colleague, Giovanni Rodriguez, and I have been discussing this phenomenon. So if you are a regular reader of this column, this might not be new to you.

What’s important is that the study confirms the trend and provides some insights on the role ethnicity plays when targeting this demographic.

Latinos do nurture ethnicity more than other segments. This is manifested through a series of behaviors like exposing their children to their Latino background, trying to get in touch with their Hispanic identity, feeling very comfortable as it relates to their ethnicity, and being part of activities/traditions that celebrate their heritage.

The Generational Latino Gap

When it comes to generation breakdown, there are some differences that marketers need to consider. Let’s take identity and values, for example.

First-generation Latino behavior is much more influenced by ethnicity. Their Latino background plays a major role when it comes to feelings about their individuality, religion, and values. It also affects how they socialize (neighborhoods, close circle of friends, etc.) and other behaviors (eating habits, celebrations, vacations, etc.). For second-generation Latinos, ethnicity is more about outward expression and bicultural in nature.

Content plays an important yet different role. First-generation Hispanics seek content that is in Spanish language and speaks to their ethnicity for topics like news, entertainment, and food. Second-generation Hispanics are more sensitive to how their ethnicity is portrayed in the media.

Second-generation Latinos have a stronger civic commitment. They care about the role Latinos are playing in today’s American society. They are very involved in discussions about Latinos’ role in the elections, immigration debates, etc. They want to play a major (influential) role and want to make sure that they are taken into consideration.

The Common Thread: Authenticity

For both first- and second-generations, ethnicity is an important part of the past and the present. Both segments agreed: it influences “who I am” and both feel very proud of “how I grew up” as well as “my ethnic identity.”

Ethnicity plays a significant part of the Latino identity. As David Iudica, a bicultural Latino himself, said to me: “I have my feet firmly planted in both worlds, it’s an important part of my identity.”

Overall, it seems that marketers have a long way to go in order to better impact Latino audiences. For different reasons, both first- and second-generations feel they aren’t being represented or spoken to in the right way.

This reminds me of a controversy that happened a couple of weeks ago around a proposal to recreate a mural on the walls of the Mission Drive-In Theater in San Antonio, Texas. The images, one of a Mexican sitting asleep against the wall with his sombrero covering his face and another with a stereotypical Mexican posing with a burro, backfired. Sometimes marketers, in trying to connect with Latinos, get hooked with their own stereotypes and generate negative reactions rather than relevance.

The (Right) Approach When Marketing to Latinos

A successful Latino marketing strategy should be built on a common thread: what are the attitudes and behaviors – related to your product category – that bring Latinos together?

A sense of pride, identity, and authenticity (the world I live in) are important for all Latinos.

Authenticity is key. Choosing an authentic Hispanic spokesperson, rather than a well-known spokesperson, is relevant to all Latinos.

Latinos crave ethnic-specific marketing messages, yet portraying an appropriate level of diversity in advertising is critical.

If done right, Hispanics will talk about advertising positively, but they will also be quick to call out negative portrayals.

Messaging should be customized to speak to the individual needs of each generation:

• For first-generation Hispanics: speak in their language and make sure to authentically represent their ethnicity.
• For second-generation Hispanics, you need to portray them as part of a bigger whole: represent diversity in general messaging and show how Latinos are influencing the mainstream. Don’t address them simply as Latinos: talk to their whole bicultural identity.

First-generations want Latino content, second-generations want mainstream content but with a Latino flavor.

Authentic Bobbleheads

Will Ferrell’s “Casa de mi Padre” seemed to connect with the Latino audience and is set to be a box office success. But, when it comes to how brands “talk” to Latinos, not all are successful stories. Think of Jaime Jarrin, a Hall of Fame broadcaster, who has not been included in the Dodger’s 50th-anniversary bobbleheads. Jaime is Latino and broadcasts in Spanish and, according to The Los Angeles Times, that’s why he was left out. As the article says, “Jaime Jarrin’s primary language has always been Dodger. It’s a shame that, in this case, the Dodgers seem to be the only ones who don’t understand.”

Ask second-generation Latinos. See if they find this kind of behavior to be authentic.

Related posts:

1. The Role of Latinos: The Next Marketing Challenge
2. The Fight for Targeting Latinos Online

As I was about to start this column, I opened TweetDeck to look for some inspiration. It was then that I ran into a tweet by @josehuitron about a new piece by @briansolis: “Content and the New Marketing Equation.” The article was about a report with the same name released by Rebecca Lieb, analyst at Altimeter Group. It addresses how marketers must evolve from advertisers into storytellers. Instead of interrupting consumers with messages that are about “me” (brand/product), they need to attract, entertain, and inform. Storytellers are sought and revisited…they often enter into a dialogue with the audience, Lieb says.

And the timing couldn’t have been better. Me jumping from one screen to another while writing an article is a perfect analogy of how consumers multitask today. Rebecca Lieb says it right: marketers need to rethink the way they deal with this empowered consumer (a consumer on steroids).

The Multi-Screen Phenomenon

Multitasking is a universal phenomenon, but Latinos are taking it to the extreme based on the following data.

1. More screens available. More than 45 percent of Latinos have a smartphone and 28 percent of Latinos currently own a tablet (versus 34 percent and 24 percent respectively for non-Hispanic whites).
2. Tablet penetration is growing faster. A 190 percent increase in Hispanic tablet users from February 2011 to December 2011; that’s almost double the increase for the general population.
3. Multitasking frequently. Digital Hispanics spend 42 percent of their media time multitasking; they are more likely than the general population to combine TV viewing with browsing the web.
4. Mobile shopping. Latinos experienced the greatest growth in shopping on mobile devices (August 2011 versus December 2011). According to comScore, they also make up about 25 percent of mobile shoppers in different aspects: checked product availability, found store locations, compared prices, found coupons or deals, etc.

Multi-Enjoying or Multi-Distracting?

Considering the growing multi-screen experience, creating engagement can be challenging for both consumers and marketers. How can we address this? With common sense: trying to understand media multitasking from a consumer perspective.

• Multitasking can be addictive. Forty-seven percent of Latinos are looking at other screens while watching television. Furthermore, young Hispanics spent two hours and 53 minutes watching video, playing games, and listening to music on mobile devices. That’s more than twice the time that whites, who spent one hour and 20 minutes doing the same activities, according to a study by Northwestern University.
• Latinos are struggling with multitasking. Based on observations on qualitative research, consumers have a hard time trying to find a balance. They feel excited about the enhanced experience that another screen offers while watching TV, but also feel stressed and distracted.
• The need to share now. Social media is replacing the office coffee break. Why wait till tomorrow if I can share on the go? That Latino mentality is aligned with the growth of Hispanic mobile Facebook users: currently almost half of Hispanic Facebook users.
• Multitasking occurs more at home. According to Google, search peak time by device is different: during the day is mostly via PC, in the morning is mostly via cell, and tablets play a more important role altogether with PC. Additionally, app usage peaks during TV prime time. Also, tablets are mostly used at home, connected to Wi-Fi. The perfect storm: TV and mobile devices.

From Media Planning to Media Storytelling

The multi-screen experience is putting Latinos on steroids. Is your brand taking advantage of this?

We are all part of this phenomenon (like my personal story at the beginning of this column). Yet, it’s surprising to see how many marketers and advertising agencies continue to approach consumers the usual way. They continue to plan media like in the old days. Yes, they might add mobile or social media to the plan, but they still aren’t shifting from advertisers into storytellers.

Here are some thought-starters:

• Start with the consumer. Understand how the consumers are behaving and build a plan that is consumer focused, not media focused.
• Don’t plan media; plan for an experience. What is your brand trying to tell? What is its story? How do you want to involve the consumer? What’s the overall experience you want to create?
• Plan for a whole experience. Optimizing your web for mobile is not enough. Content and experiences should be part of a whole. Your TV spots and mobile devices should collaborate to create a single scene.
• Think real-time interaction. Your social media strategy should play a key role. How can you leverage what consumers are experiencing on TV and offer a space to enhance that experience with people with the same interests or passions? TV shows are getting better and better at this; brands still have a lot to learn.
• Integrate content and media. It should be a seamless experience. Separation between creative and media agencies isn’t helping. Fortunately, in the Hispanic market, many agencies manage both sides of this storytelling. We have a great opportunity to create successful case studies that can feed industry best practices.
• Search should play a key role. Search sparks curiosity: 78 percent of Latinos have used search engines to find more information on a show they were watching on their TV.
• Simplify. Consumers are overwhelmed by this multitasking experience. Make it simple; they will thank you for that.

There are more thought-starters I would like to share, but sorry…I need to get back to tweeting. The TV show I’m watching while writing this column has increased my desire to multitask.

Related posts:

1. Latinos Leading the Mobile Web
2. Latinos and Coupons: A Tale of Two Worlds

As the Hispanic market continues to evolve, more and more clients are asking about the right approach to the Latino market. How to find the best segmentation model is one of the most frequently asked questions. I always reply with another question: what are you trying to solve?

It’s because a one-size-fits-all solution doesn’t work when it comes to segmentation. Clients must be very careful when being approached by companies trying to sell their own “proprietary Hispanic segmentation” model. Most of these predetermined segmentation models are not based on a specific product or category. Rather, they can be too generic.

The Usual Suspects

Originally, language was the default variable to segment U.S. Latinos. Well, though hard to believe, language still seems to be the first thing many companies think of when it comes to Latino marketing.

Focusing on language preference doesn’t help you understand who the consumer is in terms of identity and behavior. It might definitely have an impact on media selection but it shouldn’t dictate your strategy. It doesn’t make much sense. It’s like, let’s say for a general market campaign you decided to create different messages based on the various English dialects (e.g., lowlanders vs. New Englanders).

Country of origin comes second to language. U.S. Hispanics are not all the same: like Mexicans and Puerto Ricans. But, as marketers, we need to get past those differences and find common threads. For example, if you are a Mexican beer you might think about targeting Mexican Americans. But the realities of Mexicans living in the U.S. are certainly different from those living in Mexico. Do they want to stay connected to their heritage or seek new experiences? And if that’s the case, why limit your sales only to Mexicans? Why not expand your potential market by targeting other Latinos too?

Actually, the marketplace has become more complex and the usual variables might be completely aligned with the Latino population dynamics.

Acculturation, Important but Misleading

In the past few years, acculturation has become one of the most overused variables in the Latino market. This segmentation approach assumes that people within the same level of acculturation (a.k.a. level of adaptation to American culture) will behave the same. I agree that acculturation plays an important role and needs to be considered. But as I discussed in my previous column, acculturation is not a linear process anymore.

Let’s see some examples of how acculturation can be misleading.

Assumption: High-acculturated Latinos earn more money than lower-acculturated Latinos.

Fact: Foreign-born Latinos make up 55 percent of Hispanic households with an annual income of over $100,000.

Assumption: More acculturated Latinos have a very similar behavior to the general population.

Fact: Take sports as an example. More acculturated Hispanics have a higher tendency toward American sports, but that’s in addition to sports from their native countries. They add rather than replace.

Assumption: Differences in acculturation level implies different mindsets.

Fact: There are more similarities than you might think, according to these statements based on Experian Simmons data.

Tell Me How You Behave and I’ll Tell You Who You Are

When I approach Hispanic segmentation for any of our clients, I always stress the importance of behavior on top of other approaches. It’s critical that the model is based on how a consumer behaves specifically to your product category. Attitudes toward religion might not be relevant when it comes to selecting a mobile phone carrier.

How individuals have behaved in the past can be a far more accurate predictor of future behavior than others discussed above. And, at the end of the day, that’s the sole purpose of segmentation: to group people trying to predict how they will respond to a specific marketing effort.

Behavioral segmentation allows you to identify the relationship between different variables (attitudinal, psychographics, interests, technology adoption, media consumption, connection to Latino culture, etc.).

Then, as a second step, you can cross tab segments against the “usual suspects” (language preference, acculturation, country of origin, and other demographics).

I’m not saying just go for behavioral models. What I’m saying is that you should go beyond language and acculturation. Build a specific model for your brand that combines all variables that have an impact on your business. Test and learn.

Questions Your Segmentation Model Should Answer

• Is it relevant? Whatever the approach you decide to use, make sure that the segmentation is based on your specific category and the business challenge you are trying to solve.
• Is it actionable? Segmentation models only works if they can affect/have an impact on strategy, messaging, and media selections.
• Is it predictive? Your model should help anticipate consumer behavior.
• Are segments substantial? Though Latinos have contributed to more than 50 percent of U.S. population growth, they represent 16 percent of the total population for now. Having models that segment Hispanics in seven different groups would make it impractical and difficult to justify the resources needed.
• Does it make sense? At the end of the day, everything is about business smart. If your segmentation model makes strategic sense, go for it.

Related posts:

1. The Fight for Targeting Latinos Online
2. Targeting Latinos on LinkedIn
3. Latinos and the language of media

Related posts:

1. Targeting Latinos on LinkedIn
2. The Unrecognized Star of Latino Marketing

I wasn’t surprised when almost a year ago, Pew Research released a report showing that more people were getting their news online than from print newspapers. Nor was I surprised when last November, Google modified its algorithm to show timelier results, affecting about 35 percent of all searches. A clear response to Facebook and Twitter, whose seconds-old updates were challenging Google’s role as the king of search.

These are clear examples of how the media environment is changing at a dramatic speed. The shift is not linear; consumers are not simply changing their media preferences. This behavior shift also affects what consumers expect from the media, not just which media they use more often.

Newspaper News Is Old News

Latinos are experiencing a media shift of their own. Similar to the general population, there’s a decreasing interest in traditional media (especially newspapers) as a main source of information. Though the Latino shift is more dramatic: only 21 percent of Hispanics read a newspaper most days versus 30 percent of the total population, according to Experian Simmons.

As you can see on the chart below, newspapers are not only losing credibility overall but also in a key area: local news.

It’s clear that the Internet is stealing audience from newspapers. Forty-two percent of Hispanics said that they get more of their news from the Internet.

Radio has also been affected, but interesting to note, TV still plays a key role. Take a look at the media Latinos rely on to keep themselves informed: TV – 42 percent, radio – 27 percent, and newspapers – 23 percent.

Latinos don’t simply like to get facts. They want an interactive news experience. Bloggers and social media feeds have outpaced regular newspapers as a source for news, by offering personalized content with the ability to comment and share.

In Search of Entertainment

When it comes to information overall, the Internet is the main destination for 53 percent of Hispanics. No surprise here. What’s surprising is that more than 40 percent of Hispanics agree that the Internet has increased their desire to learn new things. While we normally think of the Internet as the destination for news and entertainment, for Latinos it’s become the place to learn, expand and improve skills, feed their curiosity, and, of course, share with friends and family. What about entertainment?

When it comes to entertainment, TV (42 percent) is the main destination for Latinos, followed by the Internet (25 percent), and radio (22 percent). Yet, Hispanics spend 37 percent fewer hours watching TV versus non-Hispanic whites.

Radio is still the preferred medium of choice for Spanish-preferred Latinos. More than 50 percent of Hispanics have listened to Spanish radio stations, twice the time they visited Spanish websites or read a Spanish newspaper.

On the other end, young Latinos (18 to 24 years old) are twice as likely to consider the Internet as their main source of entertainment compared to older Latinos.

The imperious need for ubiquity continues to grow. Hispanics are 40 percent more likely than the general population to watch video (or TV) on the Internet or a cellphone versus on a regular television screen. Also, they over-index by 70 percent in watching TV on their smartphones or tablets.

Last but not least, the social factor is key. Latino consumers are more than three times likely to check, via social media networks, what programs their friends are watching.

Advertising Ain’t What It Used to Be

Even though Latinos still have a more positive attitude toward advertising versus the general population, there’s a declining trend as seen on the chart below.

Traditional advertising is losing ground when it comes to influence purchase. Hispanics are relying more on the Internet and mobile. Peer-to-peer recommendation is becoming more and more important as Latinos continue to lead the mobile web. According to Mintel, Latinos are more likely to click on banner ads on video sites compared to any other demographic.

Product placement is still well perceived by Latinos. They are more likely to be influenced by brand/product placement and more prone to buy a brand that they have been exposed to in a TV show. This is true even among bicultural Hispanics.

An interesting trend to watch is the growing penetration of DVR use. It has almost tripled since 2006: 32 percent of Latinos have one. The impact on advertising is critical: 86 percent of Hispanic DVR owners fast forward through the commercials.

Media Moving Forward

What will happen in the future, no one knows. What’s clear is the shift in how Latinos consume media.

Digital newspapers and social influencers are taking over print. Hispanics are willing to dedicate more time to learn, thus decreasing the interest in news overall.

Radio still plays a critical role for Spanish-preferred Latinos both for news and entertainment.

Latinos’ positive attitude toward advertising is decreasing as a consequence of DVR growth.

The Internet and mobile have outpaced traditional advertising in terms of influence. Latinos’ social nature: peer-to-peer influence not only affects purchases but also TV viewing choices.

The Internet continues to redefine media. Latinos are heavily reliant on TV as their entertainment source; the Internet allows enjoyment anytime and anywhere. At the same time, the Internet has created a new space for exploration. Latinos use the Internet to learn and discover new things while feeding their curiosity for new stuff and, of course, sharing it on the go.

Related posts:

1. Latinos and the language of media
2. The Changing Face of Hispanic Media
3. Latinos Leading the Mobile Web

When it comes to Latinos and online shopping, there are still lots of preconceptions. “Hispanics don’t buy online”; “Spanish-dominant Latinos represent no potential for online businesses”; “Latinos don’t want to do their online shopping in Spanish.” These are some examples of the most frequently used reasons of why some companies are still doing barely anything to grow their business among online Latinos.

Understanding the dynamics and challenges facing Latinos and online shopping can help fight these preconceptions and definitely help increase sales.

Latinos are not only buying online, but they are also spending more per transaction. According to Terra and comScore, Hispanics spent more per online transaction than non-Hispanics: $103.19 vs. $90.82, respectively.

The Language of Online Shopping

The notion that low-acculturated or Spanish-dominant Latinos don’t shop online isn’t necessarily true. Neither is the preconception that Latinos don’t want to shop in Spanish. It’s like we’re confusing not having a choice with what consumers really want. If companies aren’t providing the right approach (e.g., full e-commerce in Spanish), why would consumers react positively to it?

When Spanish-language web content ends just before checkout and concludes in English, conversion rates fall off sharply (as much as 90 percent), according to author Joe Kutchera.

Let’s review some facts that show that Spanish-dominant Latinos are actually buying online.

As I said before, Spanish-dominant and/or bilingual Latinos spend more dollars per transaction and per buyer compared to English-dominant Latinos. They also spend more dollars per transaction vs. non-Hispanics. A great example is Best Buy. Users of its Spanish language website spend twice as much time and twice as much money per visit.

The Cultural Challenge

There are some specific cultural nuances that affect Latino behavior and need to be addressed by brands.

Familiarity is key: 42 percent of Latinos only make purchases from online retailers/stores that they’re familiar with.

Transparency and trust are also important: testimonials from other Latino customers showcasing security verification logos (VeriSign, for example), clarity, and simplicity throughout the purchase process help in increasing purchase rates. The need to interact with a person is critical for most Latinos, no matter the level of acculturation. Companies should provide alternative ways of customer support (chat, phone, email, etc.) and make sure that they’re clearly communicated across their website.

Providing personal information is also a sensitive matter among Hispanics. In order to reduce dropout rates, companies need to reduce the amount of information required (e.g., many Latinos don’t want to provide their SSN, so allow using other types of identification).

Credit cards are another barrier to online shopping among Hispanics both from a penetration and trust perspective. Although penetration among Latinos has grown (42 percent), it’s still low compared to non-Hispanics (68 percent). Marketers need to provide alternative solutions to deal both with non-credit cardholders as well as with those Latinos that don’t want to provide their credit card information online. Dish Latino has a great approach to solve this issue: it asks customers upfront if they have/want to provide their credit card information. A wide range of payment methods is offered as an alternative to not having a credit card.

A Hybrid Approach to Shopping

Online shopping is growing among Latinos at a fast rate. Today, 19 percent of Hispanics are regularly shopping online, and 16 percent of Latinos are shopping via their mobile phone (vs. 11 percent for non-Hispanic whites). In order to increase their share among Hispanics, marketers need to develop a hybrid model that combines the best of both worlds: online and offline.

According to Google, 47 percent of Hispanics use the Internet as their primary source for retail-related shopping (vs. 41 percent non-Hispanics). The Internet is playing a critical role in the decision-making process and very few marketers are using it in a smart way to capture the Latino consumer. Companies should provide online tools that help Latinos make their purchase decision: product information, price comparison, evaluating options, and or making the final decision.

If the consumer doesn’t want to complete the whole purchase online, companies could instead be sending more qualified leads to either their call center or stores.

Also, Latinos react very positively to a hand-holding approach. A step-by-step, clear process can help. Or having video tutorials, as Allstate does, that walk the consumer through the process in a very didactic way.

The Importance of Mobile

Latinos are leading the mobile web both by showing the highest smartphone penetration as well as by using it as their primary source of accessing the web. That pattern is also evident when it comes to shopping: over 40 percent of Hispanics compare prices and locate retailers via smartphones, making mobile an important tool for e-commerce.

As you can see in the following chart, Latinos overindex vs. non-Hispanic whites in using their mobile phones throughout the purchase process.

When it comes to Latinos’ online shopping behavior, marketers need to get past the obvious preconceptions. Market dynamics have changed: Hispanics now represent the fastest growing online segment. It’s time to start growing online shopping among Latinos.

Related posts:

1. The Fight for Targeting Latinos Online
2. Latinos Leading the Mobile Web

A couple of weeks ago, a decision by the Academy of Motion Picture Arts and Sciences reignited a discussion on a sensitive matter: Puerto Rico’s identity.

The Oscars rejected the Puerto Rican film “América,” not allowing it to compete in the Foreign Language Film category. The decision was based on Puerto Rico being a U.S. territory, therefore ineligible. Interesting to note is that the category refers to the foreign language film, not foreign country.

This is just another example of the status and identity challenges that Puerto Rico faces.

An Island of Dichotomies

There’s plenty of discussion around Puerto Rico’s (political) status. So I won’t focus on that aspect. At the end of the day, this is a marketing column.

Puerto Rico is a commonwealth and also an unincorporated territory of the U.S. Full of dichotomies; it represents a challenge for marketers as well:

• It is not an independent country nor a U.S. state.
• Puerto Ricans have U.S. citizenship.
• Puerto Ricans living in Puerto Rico cannot vote for the American president, but those who move to the continental U.S. can vote.
• Spanish is the official language in Puerto Rico, though there’s “compulsory” English education in schools.
• For some marketers, Puerto Rico is part of their Latin American region, for others, it is part of their U.S. region.
• Puerto Rico’s population is counted by the U.S. Census Bureau, but is not included as part of the total U.S. population.
• The Puerto Rican population living in the mainland U.S. is greater than that living in Puerto Rico.
• Univision and Telemundo are also the leading networks, but a national media buy on any of those networks will not include Puerto Rico. You need to buy it separately.
• Puerto Rico is the only market worldwide where Burger King outsells McDonald’s.

The American Influx

There are more Puerto Ricans living in Florida than in San Juan. Population mobility goes both ways (from Puerto Rico to the U.S. and vice versa). Puerto Ricans stay in touch with their homes (travel for holidays, money remittance, etc).

Economy and business in Puerto Rico are mostly influenced by the U.S. (actually, it has the same currency – the American dollar).

If you get to see the retail landscape, you will find most of the most important American icons: Kmart, Macy’s, Gap, Walgreens, etc.

Though Puerto Rico’s average income is lower, materialism is at the same level as America. For many retailers, some of their Puerto Rican stores are within their top performing overall U.S. stores.

Puerto Rico is a clear bicultural market, influencing and being influenced by the U.S.

Opportunities for Marketers

When working with clients, I’m surprised that many U.S. companies don’t always include Puerto Rico as part of their U.S. Hispanic efforts. I encourage companies to do so, taking into consideration the following implications:

• Share of Hispanics over total U.S. population becomes 17 percent (versus 16 percent).
• Total U.S. Hispanic population becomes 55.2 million (versus 51.2 without Puerto Ricans living in Puerto Rico).
• Puerto Rico gets to be the third largest Hispanic DMA after LA and New York.

Puerto Rico represents a great opportunity for marketers:

• Provides an incremental growth opportunity for existing Hispanic marketing efforts.
• Can be used as a pilot market for new Latino marketing initiatives.
• Provides the unique advantage to isolate sales (in continental Hispanic DMA, it’s difficult to isolate Hispanic sales from overall sales).
• From a media standpoint, it’s more cost effective.

Will Puerto Rico become the 51st star of the American flag one day? No one knows. What’s for sure is that Puerto Rico deserves the recognition as a star of Latino marketing.

Related posts:

1. Winning the Mayorship of Latino Marketing
2. Facebook: A Latino Love Affair