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Tuesday, February 16, 2010

Births vs. Immigration: The New Hispanic Marketing Challenge

A review of the US Bureau of the Census data shows that the increase of the US Hispanic population is now highly driven by births rather than immigration contrary to past patterns. The following table contains data from the 2008 American Community Survey of the US Bureau of the Census. It documents the nativity of US Hispanics by sex and age:
             


United States
Estimate
Margin of Error
Total:
46,891,456
+/-9,624
Male:
24,212,122
+/-16,057
Under 18 years:
8,220,903
+/-13,936
Native
7,490,109
+/-19,984
Foreign born
730,794
+/-16,404
18 years and over:
15,991,219
+/-15,020
Native
7,176,917
+/-46,524
Foreign born
8,814,302
+/-45,693
Female:
22,679,334
+/-14,633
Under 18 years:
7,830,965
+/-13,884
Native
7,153,178
+/-17,166
Foreign born
677,787
+/-13,499
18 years and over:
14,848,369
+/-9,444
Native
7,260,473
+/-37,848
Foreign born
7,587,896
+/-39,217
Source: U.S. Census Bureau, 2008 American Community Survey

While the above figures are unlikely to include all undocumented individuals, it provides directional guidance as to the developments in US Hispanic growth. All Latinos in the US under 18, males and females were at the time of the study 34% of the population, an impressive proportion that further emphasizes the youth of this market. 

Within those under 18 years of age, a staggering 91% were native born, and that provides a good indication of what type of growth to expect in the near future. Sixty-six percent were those 18 years of age and older. Among that older segment 53% were foreign born. While foreign born are still the adult majority, the obvious likelihood is that they will suffer further declines in favor of their native born counterparts. 

Marketing implications include:

- Young people will become more influential in purchase decision for the household as these US born kids have more experience with US products and services and the overall consumer landscape.

- These young people will claim a new identity that marketers will need to understand if they are to touch their feelings and thoughts. This new identity will be the product of roots from Latin America, influences from the US, and the synergy of living a Latino life in the United States.

- These overwhelming changes in population trends should compel media content producers, advertisers, and marketers to better cater to a new emergent way of being.

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