Latino ad agencies: understanding the needs of Hispanic users

Latino ad agencies

Did you know that for 41.7% of the 57 Million Hispanics living in the United States, Spanish is their native tongue? This means that despite being born in the USA, Spanish was the first language they learned.

As Euronews confirms, Latino presence is so strong in the US, that there are increasing calls for politicians to normalize the use of the Spanish language, to attract the attention and vote of this community.

Such numbers are reflected in tremendous economic power. According to estimations, published by the San Diego Union Tribune, if Latinos were their own country they would be the eighth most powerful economy in the world.

The close relationship between Latin America and the United States is evident even in the colloquial language of Latinos, which shows the social, political, cultural and economic bond between their peoples. These give birth to the Hispanic identity.

Spanish and English: bringing the US and Latin America closer

The bond between these cultures is ancient, but alive and evolving. Latin American countries use anglicisms daily. There are many words that come from English and have been hispanicized. For example, it is very common to say “OK” instead of “está bien”, as well as “dame chance” instead of “dame una oportunidad” (give me a chance). And what about the colloquial way of expressing “voy a trabajar” (I’m going to work)? The most common expression is “voy a chambear”.

The geographical region where this language mutation takes place explains the close relationship between the Hispanic and the American cultures. A bit of history of “chambear” gives perspective:

The origin of this anglicism dates back to 1940. During the Second World War the United States needed extra labor, and agreed to provide temporary work permits to Mexican laborers. These temporary workers were called “braceros”. Once their contract was over, they needed to visit a Chamber of Commerce to renew it and continue to work in the US.

These workers, who didn’t have any knowledge of English, used to say that they were going to the “chambers”. And as time went by this word mutated until it became “chamba”. The transcendence of this term is very broad, since it has been used in Honduras, Costa Rica, Peru, Guatemala and Mexico.

The verb “chambear” was accepted by the Real Academia Española (RAE) in 2004. RAE (Royal Spanish Academy) is the highest authority of the Spanish language, and it is based in Spain.

This incredible phenomenon provides insight into the strong cultural and economic ties between the USA and the Latin American community.

The importance of Latino presence in the United States

The connection between Spanish-speaking countries and the United States has continued to grow at a consistently high rate. So much so that the Hispanic Council estimates that by 2060 The United States will have the second largest population of Spanish speakers in the world, after Mexico.

The following chart shows estimated US populations of people of Latin American origin:

Source: Statista “Población hispana en Estados Unidos: países de origen”

This study was published in 2022. Mexico has the largest participation, with an estimated 62% of all Latinos in the USA. These numbers are expected to continue growing due to the higher birth rates and greater family cohesion of Hispanic culture.

What does this imply in economic terms? Keep reading to find out!

Latino ad agencies: the impact of Latinos in the US economy

According to the Los Angeles Times, Latinos have the highest birth rate in the United States. This phenomenon is known as the Hispanic population boom.

What is the connection between birth rate and the economy? If you consider that a product’s life cycle is tied to the fluctuations in the demographic group that consumes it, birth rates have a very significant impact on business performance. As an individual, your product preferences as a child, an adolescent, an adult, or an elderly person, can be very different.

In the study La oportunidad latinx , Nielsen estimates that by 2023, the purchasing power of the Hispanic community will reach USD 1.9 billion, up from USD 1.5 billion in 2018.

Simply put, this means opportunity and growth. The best way to capitalize on this opportunity is through relying on the experience of ad agencies that are experts on Hispanics. Work with people who know the identity and relevant cultural aspects of this social group.

Latino ad agencies: Knowing the Latin consumer in United States

Nielsen lists some important facts about the Hispanic consumer in their study called La Oportunidad Latinx.

  •  Latinos spend about 27 hours a week on social media and mobile apps.
  • 95% of Latinos over the age of 2 own a cell phone and use it to surf the Internet.
  • 69% of Latinos over the age of 18 spend a large part of their time on digital platforms, preferring audiovisual content.
  • 71% of US Latinos speak Spanish at home. This cultural factor leads them to search for content that helps them connect with their culture. This exposes them to more Hispanic brands.
  • Meals are very important for Latino families: they see them as a way to bring people together, especially family. This results in 66% of US Spanish-speakers preferring to prepare a meal in the comfort of their own homes, rather than eating out frequently.
  • Latinos create a close bond with all generations in their families–whether older or younger. This has a significant impact on how and what they consume. Almost 80% of Latinos enjoy food products with their relatives. Almost 30% of them live in a multigenerational home.
  • Almost 80% of the Latino community considers that the Internet is a convenient way to purchase products, with food being the most frequent purchase, followed by products for the home, kitchen and children.
  •  Over half of Latino consumers prefer to purchase eco-friendly products, compared to 45% of the general population in the United States.
  •  Almost 40% of Latino consumers like to share their opinions about the products and services they have purchased via the Internet.

The majority of Hispanics are relatively young, with an average age of less than 30 years old. They are very comfortable in digital environments. Brands have an opening to reach them through digital media, and learn about their desires, preferences and expectations. A Hispanic-oriented digital marketing agency can help you succeed at this.

Hispanic consumer trends in the US

Additionally, Nielsen projects that Hispanic consumers, who consider themselves multicultural, will become a majority by 2044. Latino ad agencies, and brands in general, need to pay attention to emerging trends as this significant shift in the US population continues to happen.

Some examples of trends reinforced by Latinos in the United States are the following:

  • Green e-commerce

As mentioned before Latino consumers care about the environment and prefer to consume products from brands that they consider eco-friendly.

  • Metaverse and immersive marketing

According to Hispanicstar: 75% of Spanish-speakers in the United States are highly active in digital media. They most likely will be open to new technologies such as the metaverse as a way of experiencing the brands they enjoy.

  • Self-love and self-affirmation

Self-love and self-affirmation are part of the most relevant trends of the 21st century. And the Hispanic community participates in this trend by standing up for genuine representation of their culture, and breaking free from stereotypes. In the Nielsen study Latino-led Content and Viewers, they found that 56% of Latinos are more likely to continue watching a show on digital platforms when it includes characters they can identify with or relate to, and are affirming their identity as modern US Hispanics.

Sube Agencia Digital: representing Latinos in the USA

The impact of Hispanics in the United States doesn’t end with those Latinos who live in the US. Latin America is also a huge market for consumer products, and every country is slightly different with its own cultural nuances. This is why cultural sensitivity is so important when trying to reach different groups of consumers of Hispanic descent, wherever they live. Multicultural agencies understand these subtle differences and are better able to work with them.

 If you want to know more about this and other related topics, do not hesitate to connect with SUBE Agencia Digital. We are at the forefront of these important demographic changes, ready to provide you with the most qualified multicultural digital marketing services, to help you reach your goals.

Your commitment to succeed is our greatest inspiration!

Sources consulted