U.S. Hispanic Population Is Growing and Becoming a Sought-After Consumer Demographic
According to U.S. Census data, Hispanics represent 19.1% of the population, up from 13% in 2000. They accounted for 54% of population growth. Projections for the demographic are that the segment will increase to 28% by 2060.
With increased populations comes more contributions to economic growth and consumer spending. Their buying power will increase to $2.6 trillion by 2025, and the increase is 50% greater than that of white households.
Hispanics are a very attractive target demographic for advertisers, and radio is one of the best ways to reach them. So, how can stations advise their clients on the best ways to create this engagement?
Advertisers Get High ROAS with Hispanic Radio Ads
According to data from a Nielsen report, companies advertising on Hispanic-owned or Hispanic-targeted radio had a 12% higher return on ad spend (ROAS) than those that did not. The report also identified the brand expectations of this audience. They seek out culturally relevant content and are 24% more likely to seek out diverse-owned media outlets.
The data also revealed that ad investments are not keeping pace with the population growth. Only 10% of radio buys fall into this category, which is a small percentage compared to the demographic’s growing population and buying power.
Knowing that Hispanic audiences are loyal to and regularly listen to radio is more evidence that radio stations need to seek out advertisers that want to gain more customers like these. They may favor Hispanic media companies, so they have an advantage. Still, any station with listenership in the demographic can demonstrate how powerful the medium is in engaging with these consumers.
Hispanic Populations and Radio: Keys to Success
In discussing with advertisers the opportunities for Hispanic populations and radio, these are some good points and best practices to share.
- Radio is a way that Hispanic audiences stay connected to their community, so ads that complement this can perform well. Businesses with special events or ties to cultural activities should make that apparent in their spots.
- A poll found that 41% of Hispanics feel there’s not enough content representing them. This is an opportunity for advertisers to be targeted in their ad content, using words that specifically include them.
- Hispanics, like other demographics, have great trust in their favorite radio hosts. Advertisers can leverage the “trust halo”of radio with these personalities performing the reads.
- When suggesting programming for these ad spots, if applicable, Spanish contemporary and pop are good bets, but they also listen to adult contemporary and pop. Don’t limit ads to only those who speak Spanish.
- Unemployment rates for the Hispanic population hit a historic low in 2023, so employers seeking to hire them face a lot of competition. Radio ads that include their peers could pique this demographic’s interest.
- Radio can be a great way to reach Hispanic voters, so it certainly is a tactic for local, state and national political advertising.
Radio Is a Powerful Way to Connect Audiences and Businesses
With these data points and insights, you can make the case for your customers to use radio to reach Hispanic consumers. It’s an effective and impactful medium for any demographic. Radio remains stable and lucrative for advertising. For more great radio revenue-related content, check out these posts:
What’s Radio’s Competitive Edge in 2023? It’s the Local Appeal and Trust
Radio Advertising Delivers Impact Across the Sales Funnel
Data Reveals Radio Listeners Have High Purchase Intent, Proving the Importance of the Channel