Hispanicize Your Marketing Plan

3 easy ways to find out how Hispanics are impacting your brand’s performance

Although Hispanics will account for 75% of U.S. labor force growth from 2010 to 2020 and are already driving new demand for homes, cars and goods for new families, more than half of the Top 500 U.S. advertisers spent less than 1% of their budget on Hispanic media.

Several studies have shown that some marketers do not make the Hispanic market a strategic priority for three main reasons: a belief that Hispanics are being effectively reached through General Market efforts, not having quantified their brands’ Hispanic opportunity and a lack of expertise on how to best engage with Latinos to maximize ROI.

Before deciding that Hispanic-targeted marketing initiatives can wait, use these 3 approaches to assess how Latinos are boosting (or dragging down) your brand’s performance:

  1. Retailer Data

Major retailers have classified their stores into clusters for assortment planning purposes, based on traits such as overall store sales and trade area demographics. For example, 42% of Home Depot stores and 25% of Walmart stores are designated as Hispanic.

Once you know which stores are classified as Hispanic, you can compare a brand’s or display’s average sales per store for Hispanic vs. non-Hispanic stores. Make sure to factor in store size in the analysis. If average sales are significantly lower in Hispanic stores, not engaging with Latinos is dragging down your overall brand performance.

Retailers also look at comp store sales in Hispanic vs. non-Hispanic stores. A brand or retailer that is highly appealing to Latinos generally has higher comps in Hispanic stores since Hispanic population CAGR is estimated at +2.3% from 2014 to 2020 (vs. +0.4% for non-Hispanics).

  1. DMA Sales per Capita Data

If retailer data is unavailable you can use DMA data as a directional measure of your Hispanic sell through. For this approach you will need sales and target market population (total and Hispanic) for each DMA. Make sure to factor in the brand’s distribution strength in the analysis.

Comparing the ratio of sales to population vs. Latinos as a % of the target market across DMAs will reveal whether your sales are leading (or lagging) in highly Hispanic markets.

  1. Social Media Data

With 18.7 million unique Hispanic visitors (or 64% of all Hispanic internet users), Facebook offers a good way to figure out your company’s appeal to Latinos. Facebook has an ethnic affinity cluster for ad targeting that allows you to quantify your estimated audience if you were to promote one of your posts to your Faceboook fans with and without adding the “Hispanic US” targeting option (see image below).

While these numbers are also directional, you will know that your brand is not attracting enough Latinos if they represent less than 11% of all of your Facebook fans. Since Hispanics are twice as likely to either share content or click on shared content as Americans in general, not attracting enough Latinos equals missed opportunities to amplify your content in social media.

Key Takeaway

Whether or not your organization is prepared to launch initiatives to market its products and services to Hispanics, it is important to understand how Hispanics are impacting your business. Using your sales data, market data and social media data will aid you in beginning to determine how critical the U.S. Latino segment is to your company’s top line growth. More importantly, do not let inaction open the opportunity for Hispanic-savvy competitors to leapfrog ahead of you.

Facebook Audience Targeting


I equip executives to increase profits by capitalizing on the growth of U.S. Hispanic, African American and Asian American markets

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Posted in Advertising/PR, Best Practices

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