As world markets slide into the brink of a global recession, this issue of Smart Marketer will reference the recently released 2007 American Community Survey (ACS) by the US Census Bureau to gauge the degree of preparation among US Hispanics to weather an economic downturn. This storm will be recurring, “By one count, financial crises are twice as prevalent now as they were 100 years ago.” 1 Total population vs. Hispanic will be compared and contrasted for total as well as digital audiences. ACS is the source for total audience metrics (online and offline populations) unless otherwise specified. Common hypotheses will be tested, as well as a few revelations of note for marketers.

Hispanics Skew Young & Highly Motivated for Career Success

While 33.8% of Hispanics are under 18 years old, only 24.6% of the total population is such resulting in a difference of 9.2%. This slant towards youth pushes the median age of Hispanics to be 27.5 years old vs. 36.7 years old for total population, again resulting in a 9.2 year difference. Youth follows digital, as 26.7% of Hispanic Internet Users are under 18 years old in comparison to 20% of General Market online 17 years old or younger. 2

One would expect that Hispanics may have lower incomes and less of an education not necessarily because of lack of effort, ability, or access, but simply due to the fact that they may not have yet reached the point in their lives to have graduated or grow into their careers.

Indeed, median HHI is $50,740 for total population and $40,766 for the Hispanic population. Also, while Hispanics over index for elementary school enrollment (47.2%) versus General Market (40.5%), only 12.5% of Hispanics have attained a bachelor’s degree or higher while 27.5% of the total population claims to have done so.

While our educational and earnings hypotheses hold true, a flip of the switch to digital shows that the Hispanic Internet User, while still skewing young with median age of 28 years old actually is the cream of the crop: median HHI is $50,600 and only 17% have not had some college or higher. 3 Average HHI among Hispanic Internet Users varies by market, and the New York DMA has the highest at $56,952 vs. Miami, Chicago, Houston and LA. 4

Also, interestingly enough, while 17.7% of Hispanics hold management or professional occupations vs. 34.6% of total population, Hispanics are more likely to participate in the labor force (67.8% vs. 64.8% respectively) which should bode well for them during this time of record unemployment levels. On a related note, 83.7% of Hispanics are class of worker ‘private wage and salary’ which is higher than that of total population (78.6%). As a Terra shout out, 56% of Terra.com’s visitors are employed full-time vs. 52% of online Hispanics.

Friendly reminder that it may not be due to lack of competence that Hispanics fall behind total population in management or professional occupations, but rather a large portion of their population is simply too young to do so. Since births by Hispanics now outpace immigration according to the US Census Bureau, it is just a matter of time that this generation of Hispanics will become even more integrated within the fabric of our society and meet or exceed total population in higher education and career status.

According to Chart #1, Hispanic Internet Users are highly motivated to succeed in their careers. A call to action for marketers is to help them do so. If creative and messaging helps to answer how acquiring or using a product will help enhance image or frankly directly help in career advancement, it would be of high interest to the Hispanic Internet User. Of note, 67% agree to find it easy to meet expectations of the corporate world which is commendable considering that the English language may not be their first or primary language. It is apparent from the strong agreement demarcated in Chart #1 in yellow that nothing is stopping the Hispanic Internet User from both setting and attaining career goals: ‘I am a hard worker’ 84% in agreement, ‘I am very results-oriented at work 78% in agreement, ‘I am very motivated to succeed in my career’ – 77% in agreement.

Chart 1
Professional Values – Hispanic Internet Users 5

On Family & Housing – Greater HH Size and Home Value

Many claim that the source of financial woes has much to do with the high foreclosure rate due to the predatory practices of sub prime lending, and sadly there exist many reports that Hispanics were unjustly targeted possibly to take advantage of language gap issues. However, refreshingly ACS paints a story of success for Hispanic households. While Hispanic housing tenure is slightly more owner-occupied than renter occupied, 49.9% vs. 50.1% respectively, the median value of their home is actually higher than that of total population ($215,500 vs. $194,300 respectively). Also, Hispanics embrace modernity, as they are on par with total population on the year the structure was built as being 2000 or later (11.9% vs. 12% respectively).

Among renters, perhaps the reason why the gross rent among Hispanics is higher than total population, $827 vs. $789 respectively is because they have larger households. The average household size for Hispanic households is 3.5 versus 2.6 for total population. This explains why 24.9% of Hispanic households have 5+ units in their home structure vs. 16.6% among total population.

Yet another distinctive characteristic of Hispanic households is that they can be multigenerational. Among base audience age 30+, 7% of Hispanics live with their grandchildren vs. 3.5% for total population. Yet, Hispanics enjoy the best of both worlds in that only 33.1% claim that they are responsible for their grandchildren vs. 40.5% for total population, base age 30+.

Greater household size is important for marketers as winning one consumer can conquer all by leveraging word of mouth. Hispanic Internet Users excel in this arena and are a prime target audience due to their acumen as influencers.

Chart 2:
Q: “I Influence Family & Friends in their Purchase Decisions” 6

Across all age groups and language preferences, Hispanic Internet Users are in agreement as a majority that they are influencers and as such effect the purchase decisions of their friends and family. Their recommendations and insights are passed along with care, as 73% of Hispanic Internet Users agree that they are very family oriented, rising to 86% among Terra.com’s audience. 7

There are plenty of opportunities to interact with family and friends outside of the home, from dining out to going to a party. Below are top leisure activities among Hispanic Internet Users for which they have personally participated within the last 6 months by age group.

Chart 3:
Incidence of Participating in Leisure Activities among Hispanic Internet Users 8

Be a Smart Marketer. While economic news is indeed dire and grim, ACS exposes special considerations faced by Hispanics such as: 1) larger homes to fit their larger household sizes, 2) lower levels of education and career status possibly due to their much younger population parlayed into quite positive financial success: 1) median home value is greater than total population, 2) more likely to be in labor force vs. total population. The Hispanic Internet User, in particular, is an ideal target due to their role as influencer combined with above average household sizes as a powerful combination.

Family plays a strong role among Hispanics which may be one cause for their drive towards career success to be able to provide for their household. Align your campaign to the goals and values of Hispanics while simultaneously understanding their unique predicaments such as their high index of youth.

All in all, Hispanics are prepared as can be for an economic maelstrom in several cases more so than total population. The question by now is rather where this new Hispanic generation whose births in the US outpace immigration take us, and what will be their marks of success as the bar has clearly been raised by their predecessors?

1.) Brooks, David. The Testing Time. New York Times. Oct 7, 2008

2.) comScore Media Metrix. Demographic Report. General Market & US Hispanic Services. Aug 08

3.) Terra.com Hispanic Syndicated Study by comScore for Terra Networks USA 2008

4.) Terra.com Hispanic Syndicated Study by comScore for Terra Networks USA 2008

5.) Terra.com Hispanic Syndicated Study by comScore for Terra Networks USA 2008

6.) Terra.com Hispanic Syndicated Study by comScore for Terra Networks USA 2008

7.) Terra.com Hispanic Syndicated Study & Visitor Study by comScore for Terra Networks USA 2008

8.) Terra.com Hispanic Syndicated Study by comScore for Terra Networks USA 2008

By Natasha Funk
Published: November 2008.