The 2016 U.S. Multicultural Report

21

25of the top

most populated counties in the United States

It is imperative for brands and marketers to remember one size does not fit all when engaging diverse consumers. Brands must take a culturally-informed communications marketing approach toward engagement, rooting all efforts in cultural intelligence to connect and engage with diverse audiences.

communications

Brands must take a culturally-informed

marketing approach, toward engagement

Here are five key takeaways from the report. To view the full report, click HERE.

Multicultural consumers are critical to brand growth. The 2050 projected minority-majority population shift has already occurred in 21 of the top 25 most populated counties in the United States, and the purchasing power of the diverse consumer in America is as strong as the GDP of Germany. Additionally, these consumers comprise more than 40% of the coveted millennial target, which makes up 25% of the U.S. population.*

In the current social and political climate, it is essential for brands to build long-lasting connections with multicultural consumers.

Edelman’s first-ever Earned Brand U.S. Multicultural study focuses on examining how the African-American and Latino consumer audiences relate to their favorite brand and what makes them become loyal customers and advocates for a brand. This report also offers additional insights into what really matters to these individuals and identifies the drivers that will strengthen the consumer-brand relationship across seven dimensions:

5 New Insights About Multicultural Consumers

1. Embody a unique character2. Build trust3. Make a mark4. Tell a memorable story5. Listen openly, respond selectively 6. Inspire sharing and invite partnership7. Act with purpose

Multicultural consumers also have a greater willingness to hear from brands. Latinos, for example, use ad-blockers less frequently (56%) when compared to NHW (65%). And when looking for information about brands, both Latinos (61%) and African-Americans (52%) are more likely to access brands’ websites when compared to NHWs (41%). Brands should focus on engaging these consumers with culturally relevant content to help strengthen their connection to their brands.

THEY’RE MORE WILLING TO LISTEN2

66% 71% 55%

LATINOS NHWAFRICAN-AMERICANS

38

Compared to Non-Hispanic White (NHW) consumers, Latinos and African-Americans have a more evolved relationship with the brands they care about, getting closer to the goal of full commitment to their brands. With an EBRI score of 45 (compared to 38 for NHW), both Latino and African-American segments are invested in their favorite brands, meaning that not only are they actively choosing them, and like what they stand for, but they also have a deeper connection to their present and their future – they are in it together. When engaging these consumers, make sure to tap into insights that speak to how they relate to your brand to determine what actions will move them along the relationship continuum.

NEWSARTICLES

magazines

TVRADIO

BLOGS

THEY VALUE YOUR COMMITMENT ABOVE ALL 5

the quality oftheir relationship

and

staying connected with them on social media.

Lastly, when brands are truly committed, these segments notice! Multicultural consumers in aninvested relationship with a brand are in somecases willing to look beyond product quality or competitive pricing if the brand is focused on:

THEY HAVE DEEPER BRAND RELATIONSHIPS1

Latinos use ad-blockers less frequently

LATINOS56%

NHW65%

0 20 40 60 80 100

45Latinos and

African-Americans38

NHW

will not buy from brands that fail to meet societal and community obligations.

Deeperconnectionto presentand future

Activelychoosingthem

Like what they stand for

minorities are the majority in

The Edelman Brand Relationship Index (EBRI) measures a brand’s performance against each of these seven dimensions and offers an overall score that represents the average relationship quality that brands have attained with the multicultural segment.

Compared to the general population, both Latinos andAfrican-Americans are more likely to react negatively against brands not meeting their societal and community engagement expectations. Similarly, while NHWs place meeting obligations directly related to its brand/business at a higher priority (93%) than meeting obligations beyond its own business (75%), African-Americans and Latinos once again show their collectivist culture, placing both meeting obligations directly related to its brand/business and meeting obligations beyond its own business at similar percentages (89% and 84% for Latinos and 86% and 80% for African-Americans). Brands must incorporate diverse consumers’ concerns into their social purpose efforts to ensure their programming will connect with these audiences.

THEY EXPECT YOU TO ENGAGE FULLY4

THEY RESPOND TO EARNED MEDIA3

Traditional media continues to be key for diverse segments in staying informed about their favorite brands—more than 8 in 10 Latinos and African-Americans selected TV, news articles, maga-zines, radio, and blogs as main sources. Compared to NHW, radio for example can be key when engaging Latinos, as they are avid listeners not only for the music, but also to stay connected to and informed about their communities. When looking to engage multicultural audiences, brands should consider a combination of mediums including print, radio and digital.

LATINOS

AFRICAN-AMERICANS

NON-HISPANIC WHITES

61%52%41%

Consumers willing to access a company website 2016 Edelman Brand Relationship Index

Interested7-26

Indifferent0-6

Involved27-43

Invested44-69

Committed70-100

Source: *Nielsen’s 2015 Report: The Multicultural Edge: Rising Super Consumers