Marketers Increase Digital Media Spend for Multicultural Outreach - eMarketer
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Marketers Increase Digital Media Spend for Multicultural Outreach

Funds are coming from traditional marketing and incremental budgets

October 17, 2012

As both digital media and multicultural outreach become more popular marketing techniques, US marketers are beginning to combine the two efforts.

In its “2012 Multicultural Marketing and Newer Media Survey Results,” the Association of National Advertisers (ANA) found that this year, more than half of US marketers (60%) will spend more on new media efforts, such as social media or mobile outreach, specifically to reach multicultural segments. An additional 24% will spend the same as they did in 2011.

When it comes to which customer segments these marketers are targeting, the greatest number, 88%, said they were reaching out to Hispanics. That was followed by targeting black consumers (54%), Asian consumers (37%) and LGBT consumers (11%).

Customer Segments US Marketers Are Targeting via Digital Media Platforms, July 2012 (% of respondents)

This focus on Hispanic consumers makes sense given that they are the most populous and fastest-growing minority group, increasing by 3.1% since 2010, according to the US Census. But even though Hispanics are growing in number, and the LGBT community in particular is growing in influence, digital budgets for multicultural outreach remain mostly on the low end.

More than half of these US marketers (54%) had less than 5% of their multicultural media budget allocated to digital media platforms for 2012. However, the percentage of marketers spending more than 20% of their multicultural media budget on digital increased from 4% in 2010 to 13% in 2012.

Percent of Multicultural Media Budget Allocated to Digital Media Platforms According to US Marketers, 2010 & 2012 (% of respondents)

As with all budget shifts, many marketers must pull funds from other areas of marketing, and 56% of respondents told the ANA that the funds for this digital multicultural outreach were shifted from the traditional media and marketing communications budget. Additionally, 28% said they were able to increase multicultural digital budgets thanks to their incremental budget.

Areas Where Marketing Budgets Are Shifted from to Fund Use of Digital Media Platforms to Reach Multicultural Customers According to US Marketers, July 2012 (% of respondents)

As these two elements—multicultural and digital—are integrated more into overall marketing strategies, marketers will need to focus more time and resources on the technology-savvy Asian, Hispanic and black customer segments.

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Check out today’s other articles, “Consumers Readily Adopt New Mobile Banking Tools” and “Social Network, Facebook Base in Latin America Smaller than Expected.”

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