Andy Checo

You’ve likely heard it before: the U.S. Hispanic market is a vital segment for brands to engage. But in a landscape crowded with data and competing priorities, it's easy for even the most critical opportunities to become background noise.

That’s why it’s essential to revisit this conversation with fresh eyes and understand what’s at stake. The Hispanic market is a dynamic force where cultural relevance directly translates to ROI. It’s not just about reaching a demographic; it’s about truly connecting with a vibrant community eager to see itself represented.

The U.S. Hispanic market has become an economic powerhouse that brands cannot afford to ignore. Yet, some companies mistakenly believe that targeted marketing to this demographic is unnecessary, relying on one-size-fits-all campaigns. This approach overlooks the unique cultural nuances, preferences, and behaviors that distinguish Hispanic consumers. Data strongly supports the need for targeted outreach that resonates specifically with this group, making it essential for brands seeking long-term economic success.

The Growing Influence of the U.S. Hispanic Market

Hispanics are driving U.S. population growth, responsible for 71% of the increase between 2022 and 2023, according to the U.S. Census Bureau. As the second-largest ethnic group in the country, their purchasing power has reached an impressive $3 trillion, as reported by the Latino Donor Collaborative. With the Hispanic population expected to reach 111 million by 2060, comprising 28% of the U.S. population, this market is one of the most significant consumer segments in the nation.

Despite these numbers, many brands fail to connect effectively with Hispanic consumers. A study by the Hispanic Marketing Council found that 77% of U.S. Hispanics feel that brands do not understand or resonate with their culture. This disconnect is a missed opportunity, as culturally relevant marketing has a proven impact on consumer behavior.

Hispanics' influence extends beyond numbers, significantly shaping popular culture through music, food, and sports:

? Artists like Bad Bunny, Maluma, and Shakira have achieved massive global reach, exemplifying this cultural impact. Most recently, Bad Bunny became the first Latin artist to have over 15 songs with over 1 billion streams on Spotify.

? Traditional brands like Tajín are increasingly sought after as partners by iconic American companies such as Pop-Tarts, Slim Jim, Bud Light, and Hellmann’s to gain relevance among this consumer segment. According to market research firm Circana, revenue from ethnic food aisles reached $8.84 billion for the 52 weeks ending June 16, 2024.

? Hispanic fans are driving new trends in sports, with international soccer viewership surging. According to Nielsen, this year’s Copa América and UEFA Euro 2024 Finals drew some of the highest U.S. viewership in history. The growth extends across major events, including the Super Bowl, NBA Finals, and Women’s NCAA Championship, which saw a 354% increase in Hispanic viewership between 2021 and 2024.

The Power of Cultural Relevance

Cultural relevance is crucial for effective marketing to the Hispanic community. While Hispanics in the U.S. hail from diverse backgrounds, they share a strong sense of cultural pride and a desire to see their identity reflected in the brands they support.

Brands that invest in culturally tailored campaigns see substantial returns. Nielsen reports that companies with culturally relevant advertising experience a 3x increase in brand trust among Hispanic consumers. This trust fosters brand loyalty, with 54% of Hispanic consumers more likely to purchase from brands that understand their culture.

Misconceptions About Assimilation

Some argue that assimilation into mainstream American culture reduces the need for targeted Hispanic marketing. However, data suggests otherwise. While many Hispanics are bilingual and bicultural, they maintain strong ties to their heritage. Pew Research Center found that 85% of U.S. Hispanics feel a strong connection to their cultural roots, and 78% believe it is important to preserve their culture for future generations.

Language is a key aspect of this cultural connection. Although many Hispanics fluently speak more than one language, Spanish remains a vital part of their identity. In fact, 72% of Hispanics say that speaking Spanish is essential to their Hispanic identity.

The Competitive Advantage

Brands that ignore the Hispanic market risk falling behind competitors who prioritize this demographic. Companies like PepsiCo, McDonald's, and Procter & Gamble have long recognized the value of culturally relevant marketing and have reaped the rewards. For instance, McDonald's consistently engages with the Hispanic community through Spanish-language advertising and sponsorship of cultural events, leading to strong brand loyalty and increased sales.

In contrast, brands that fail to connect with the Hispanic market may struggle to stay relevant in an increasingly diverse marketplace. The cost of ignoring this segment goes beyond lost sales; it can also damage brand reputation. In today’s socially conscious environment, consumers quickly call out brands that fail to reflect their values or acknowledge their identity.

The Path Forward

The evidence is clear: targeted outreach to the U.S. Hispanic market is necessary and highly effective. Brands that understand, consistently invest, and avoid taking shortcuts to connect with Hispanic consumers on a cultural level will see significant returns in brand trust, loyalty, and sales.

As the U.S. Hispanic population continues to grow and influence the market, the importance of culturally relevant marketing will only increase. Brands that want to stay ahead of the curve must recognize that the Hispanic market is not a niche but a central component of the American consumer landscape. Embracing this reality and tailoring marketing strategies accordingly is not just a smart business move—it’s essential for long-term success.

In closing, let’s not overlook the significance of the U.S. Hispanic market. Instead, let’s explore how your brand can authentically and effectively engage with a more influential and essential segment than ever.

***

Andy Checo is Managing Director of Public Relations and Social Media at New York-based full-service agency d expósito & Partners and a Board Member of the Hispanic Public Relations Association.