The difference between achieving your company’s goals and realizing its ultimate potential lies in your ability to scale. Growing a business is quite a challenge. However, scaling is a much bigger undertaking that requires original strategies, new avenues of marketing, and large, untapped target audiences.
Potential target audiences are sometimes overlooked because they are simply misunderstood.
Latinos, or Hispanics, account for 51.1 percent of the country’s population growth. In 2010, they were 50.5 million in number and represented 16.3 percent of the national population. The 2020 census showed that a decade later, they represented 18.7 percent of the U.S. population.
The US Hispanic market has a purchasing power of 2T dollars. Hundreds of advertisers, agencies, and trading desks in the U.S. are actively seeking to reach these audiences. Last year alone, they invested more than nine billion dollars in this outreach, of which two billion dollars went to digital advertising. And yet, very few businesses seem to successfully cater to this community, which is projected to reach 71 million ( 20% of the total US population) by 2025.
“Hundreds of companies still lack what we call ‘Latino Readiness.”
A new alliance between L2L and Digo, two Hispanic marketing powerhouses, may provide a new, synergetic pathway to these masses. and help brands truly reach this large audience. “Our strategy not only recognizes the cultural nuances and language needs, it also debunks the multiple myths most companies have when it comes to Hispanics,” says Arminda Figueroa, CEO & Founder, of Latin2Latin Marketing. “We build and execute a data-based go-to-market plan based on the true principles and values of the Hispanic communities.”
With over 30 years of experience working with Fortune 500 companies in the US, Puerto Rico native Figueroa has seen the tremendous progress made in marketing to Latinos. “Nonetheless, hundreds of companies still lack what we call ‘Latino Readiness,’ which we measure using the Latin Ready Assessment® (LRA) tool that we designed to help companies engage with the Latino market and understand their market potential.”
“It’s critical to review a company’s Spanish-speaking and bilingual sales force and customer service … [+]
She realized it’s not about the product fit or the lack of capital invested in these communities but rather about cultural sensitivity. “We learned through LRA assessments conducted in the past decade that many C-level managers make basic errors because of stereotypes or myths about Hispanics.”
According to Arminda, the three typical myths on which brands base their go-to-market strategy when approaching the Hispanic markets are:
All Hispanics are Mexicans: “False. Hispanics come from 23 different nationalities and countries.”
Hispanics only speak Spanish: “False. The language spectrum consists of Spanish Dominant/Preferred, Bilinguals, and English Dominant/Preferred.”
All Hispanics are foreign-born: “False. Most Hispanics are US born while only 18% are foreign-born.
These are common myths, she explains. “Understanding the Hispanic market is not rocket science and no different than learning about generational segments like Millennials. Gen X or Baby Boomers.”
Using LRA, the new alliance evaluates a company in three areas and provides a solid snapshot of their “Latino Readiness,” while identifying key areas for improvement and growth.
“We assess sales and revenue. A CEO must understand the relationship between a product or a service and the Hispanic market, “says Arminda. “Most C level executives who were interviewed using the LRA assessment tool do not have this critical information.”
In this process, they also assess the potential revenue impact of the Hispanic market on the bottom line of the company.
Marketing And Communications
“We work to assess what top services or products Hispanics purchase from the company, the geographic segmentation of the consumers, and the marketing assets and communications in language in culture thus far.”
“It’s critical to review a company’s Spanish-speaking and bilingual sales force and customer service and make sure it caters to the needs of the customers. By surveying key internal team members of the corporation, we can assess their level of Latin Readiness and develop a quick “go to market” plan to meet the needs of the rapidly growing Latino market and other multicultural segments.”
This L2L/Digo alliance reflects the fruitful collaboration of two companies catering to this very specific market and involves a combination of strategies, pure data, and innovative tech.
“Technology is an equalizer,” says Augusto Romano, CEO, Digo Hispanic Media. “Digital data allows us to identify digital personas and trends, understand behaviors, and craft specific communications for the Hispanic communities.” In contrast, communication through traditional media outlets can be limiting and can create disparities if not integrated into the overall strategy.
“An opportunity to reach and connect with a true premium U.S. Hispanic audience through a culturally … [+]
“Programmatic advertising is here to stay and we can enable any campaign with powerful tools for programmatic buying, thereby taking the digital strategy to new heights. We leverage our premium content and offer an opportunity to reach and connect with a true premium U.S. Hispanic audience through a culturally relevant and reliable network. We have developed a risk-free publisher-centric model that offers more value and better monetization of our affiliates’ U.S. inventory,” Romano notes.
“One of the first companies to use our collaborative force discovered, through our data, that it was investing all its efforts in the Spanish-dominant customers, who only represent 23% of the total Hispanic population and generate only $16M of the total Hispanic annual revenue,” adds Figueroa. “By neglecting to address the bilingual and English-dominant Hispanics that represent 77% of the Hispanic population, the company was missing an opportunity for volume growth. This led to a new tailored communications strategy for the rest of the untapped Hispanic audiences.”
Given that we live in a multicultural society that celebrates cultural differences and promotes equal opportunities, isn’t it about time that our marketing methods reflect these values also?