multicultural marketing in the digital age: integrating multicultural capabilities into your agency
TRANSCRIPT
![Page 1: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/1.jpg)
Integrating Multicultural Capabilities into your Agency
Multicultural Marketing in the Digital Age:
October 17, 2010
![Page 2: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/2.jpg)
Overview
• Introduction
• 3 multicultural market forces
• 2 industry trends
• The big [multicultural] takeaway
• Your opportunity and challenge
![Page 3: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/3.jpg)
introduction
![Page 4: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/4.jpg)
a little about me
![Page 5: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/5.jpg)
• I’ve been working in advertising for the last 10 years
• My background :– Economics– Digital technology– Management consulting
• I kind of stumbled into this business…
Jose
![Page 6: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/6.jpg)
… and I’m one of the few people you’ll meet that runs a successful ad agency that never
worked in advertising before.
![Page 7: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/7.jpg)
my story explains a lot
• 1998: I left a consulting career to start a Hispanic-focused dot com
• Since that day, I found myself in the middle of a transformation of the advertising industry
![Page 8: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/8.jpg)
my agency
• I started Sensis in 2000 2 days after shutting down my dot com
• Sensis was started to address a small gap I saw in the ad business during my dot com days
• During the last 10 years I’ve realized that “that little gap” was actually bigger and more transformative than anything I could have ever imagined in 2000
![Page 9: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/9.jpg)
Sensis story
![Page 10: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/10.jpg)
clients I’ve worked with…
![Page 11: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/11.jpg)
agencies I’ve gotten to intimately know…
![Page 12: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/12.jpg)
But everything about me and Sensis always comes back to a simple story:
What happens when digital and multicultural get so big and transformative that they can no longer be nicely packaged
as marketing specialties?
![Page 13: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/13.jpg)
3 market forces
![Page 14: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/14.jpg)
The growth of U.S. multicultural market
![Page 15: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/15.jpg)
let’s start with some definitions
• Multicultural markets = various minority groups
– Hispanic– African American– Asian American– GLBTQ– Other
• Middle Eastern, European, South Asian, Native American, Disabled, …
![Page 16: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/16.jpg)
Minorities makes up over 35% of the U.S. population
![Page 17: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/17.jpg)
65%
16%
12% 5% 2%
WhiteHispanicBlackAsianMultiracial
Multicultural America
Source: U.S. Census Bureau
![Page 18: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/18.jpg)
Multicultural buying power
2008 2013$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$951$1,491
$913
$1,213$269
$429
AsianAfrican-AmericanHispanic
In billions… with a “B”
![Page 19: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/19.jpg)
How did we get here?
• Unprecedented immigration spurt of the 1980s– Similar to that of the early 20th century– Both have fundamentally remade the ethnic
landscape of the U.S.
• 83% of U.S. population growth during last decade came from minorities**
* Source: Professor Jacob Vigdor, Duke University**Source: Brookings Institute
![Page 20: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/20.jpg)
By 2048 the minority will be the majority
Source: U.S. Census Bureau
![Page 21: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/21.jpg)
![Page 22: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/22.jpg)
in 13 years 50% of Americans under 18 will be minorities
Source: U.S. Census Bureau
![Page 23: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/23.jpg)
Multicultural consumers are changing the general
market
![Page 24: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/24.jpg)
They are young
![Page 25: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/25.jpg)
Young consumers that are:
shaping popular culture
color blind
![Page 26: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/26.jpg)
They are shaping the mainstream:
setting trends in food, fashion, and music
![Page 27: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/27.jpg)
Salsa and ketchup
![Page 28: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/28.jpg)
"leading with ethnic insights"
![Page 29: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/29.jpg)
Multicultural consumers are themselves changing
![Page 30: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/30.jpg)
A majority are now U.S. born
![Page 31: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/31.jpg)
Multiracial Americans are now the fastest growing U.S. demographic group (5.3 million)
![Page 32: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/32.jpg)
And digital is changing the game…
![Page 33: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/33.jpg)
Multicultural and digital
• early adopters of new technology• leading consumers of online content• highly receptive audiences for online
advertising
![Page 34: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/34.jpg)
Hispanics and Digital
• 24.6 million consumers – More than half (54%) of U.S. Hispanics use the Internet– Internet access growing at a faster rate (13% since 2004)
than among any other group• Total purchasing power of $900 billion• The mobile device is an important point of Internet
entry for Hispanics– They are heavy “data plan” users – Over-index in advanced mobile usage
• Hispanics spend more time on social media sites than their general market counterparts
![Page 35: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/35.jpg)
African Americans and Digital
• 30 million African-American online– Nearly 80% of all African-Americans are
online• They are also among the early adopters of
the mobile Internet
![Page 36: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/36.jpg)
Asians and Digital
• 14 million Asian Americans online– Internet penetration nearing 80%
• market is complex and difficult to reach, due to the wide range of original nationalities, subcultures and languages.
• Internet provides the greatest opportunity for micro- and macro-targeting consumers in this market.
![Page 37: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/37.jpg)
2 industry trends
![Page 38: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/38.jpg)
Ethnic ad agencies have fallen behind
![Page 39: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/39.jpg)
Ethnic ad agencies are stuck in the analog era.
![Page 40: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/40.jpg)
Digital is passing them by
• Only 5% of all Hispanic media spend goes online
![Page 41: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/41.jpg)
Digital is a division
• Most ethnic ad agencies still treat digital as a division
– “Digital Director”
![Page 42: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/42.jpg)
Lack of sophistication
• Most media spend goes to Top 3 “ethnic” digital platforms– Hispanic:
– African-American:
– Asian:
– GLBTQ:
![Page 43: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/43.jpg)
Large general market agencies are building
multicultural capabilities
![Page 44: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/44.jpg)
In the last 12 months
![Page 45: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/45.jpg)
Draft FCB has formed a multicultural unit
![Page 46: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/46.jpg)
Home Depot has moved their Hispanic business to their general market agency, The
Richards Group
![Page 47: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/47.jpg)
Burger King moved their Hispanic advertising to CP+B
![Page 48: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/48.jpg)
The big [multicultural]
takeaway
![Page 49: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/49.jpg)
My thesis
![Page 50: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/50.jpg)
New definition of “full-service”
![Page 51: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/51.jpg)
Multicultural marketing will become an integrated capability of full service agencies
![Page 52: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/52.jpg)
A disruptive change
![Page 53: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/53.jpg)
Rapid, chaotic change usually means an opportunity for businesses that can see and
exploit it
![Page 54: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/54.jpg)
New business models will emerge
• Remember Napster?– The record industry tried to fight
it
• Apple finally figured out how to exploit it– Tower Records died – iTunes was born
![Page 55: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/55.jpg)
Future advertising will look different
![Page 56: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/56.jpg)
Future advertising will look different
• But if you play close enough attention, you’ll see it’s already out there:
![Page 57: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/57.jpg)
![Page 58: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/58.jpg)
![Page 59: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/59.jpg)
![Page 60: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/60.jpg)
What this means for you
![Page 61: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/61.jpg)
A huge opportunity
![Page 62: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/62.jpg)
Adapt to this new model – embrace and integrate multicultural capabilities
![Page 63: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/63.jpg)
Starting tomorrow
• Leverage what you already have
• Make multicultural understanding and/or background part of your new hire evaluations
![Page 64: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/64.jpg)
Starting next quarter
• Stop outsourcing multicultural work to other agencies
• Make digital your entry point
![Page 65: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/65.jpg)
It’s all about digital
![Page 66: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/66.jpg)
This is where ethnic ad shops are opening the door for you…
![Page 67: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/67.jpg)
Digital Entry Points
• Social– Multicultural over-indexing in social media
• Mobile– Multicultural early-adoption of mobile technologies
• Digital media– Hispanics & African-Americans spend more time
online than with any other medium
![Page 68: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/68.jpg)
A bigger challenge
![Page 69: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/69.jpg)
You need to quickly figure out and make multicultural an integral part of your agency
![Page 70: Multicultural marketing in the digital age: Integrating Multicultural Capabilities into your Agency](https://reader035.vdocuments.site/reader035/viewer/2022081604/58e7b3291a28abbb4e8b4f9b/html5/thumbnails/70.jpg)
How quickly?
• Depends on what type of agency you are (and hope to be)
– National?– Regional?– Industry-focused?– Discipline-focused?