The study analyzed the top 500 US advertisers between 2006 and 2010, and for CPG brands found a strong correlation between share of marketing resources dedicated to the Hispanic segment, and overall revenue growth. Hispanics now make up 16% of the US population and the US census suggests that the demographic could increase 34% from 2010 to 2020.
Dr. Cristina Garcia, professor of statistics at USC, who oversaw the methodology of the study said: “The study found evidence that the proportion of resources a company, irrelevant of market category, puts behind Hispanic consumers is an essential driver for sustainable growth performance."
In particular, the AHAA said the benefits for marketers in targeting Hispanics include the larger average size of Hispanic households, at 3.8 people, compared to 2.5 people in non-Hispanic white households, and more time and money spent per trip to the grocery store.
“This new information is compelling because the data indicates that the Hispanic market can be a big determinant in corporate success," said chair of AHAA and CEO of Acento Advertising Roberto Orci. "CPG companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors – investing in Hispanic marketing is a clear strategy in achieving that two-fold objective."
Previous market research has also underlined the growing influence of Hispanic consumers in the US. According to research organization the NPD Group, Hispanic consumers’ eating habits have begun to influence overall US food preferences, particularly in terms of side dishes and overall dining traditions.
Packaged Facts has predicted that sales in the Hispanic food and beverage sector will hit $9.5bn by 2014.