Gyro and Univision teamed up to speak at the annual Life Insurance Council Annual Marketing Conference in late January, addressing life insurance CEOs and senior management from around the country to discuss the importance of engaging Hispanics through marketing.
Enough cannot be said about the importance of engaging the largest and fastest growing demographic in the United States in B-to-B and B-to-C advertising – especially the financial brands whose products will be in demand (think: life insurance, retirement products and financial advice) by this demographic.
Big overarching statements on growth may not be appealing, but simple math should: Essentially 1 out of 6 people in the U.S. are of Hispanic origin, marking a 58 percent population growth rate since 2000. In fact, every 30 seconds two non-Hispanics hit retirement and a Hispanic turns 18. In the insurance category alone, Hispanics will spend $17 billion in 2015*. What do these numbers mean to financial brands? It means that a playbook today with little to no Hispanic targeted advertising is not sustainable for the future.
Here are four points financial brands should consider when looking to engage Hispanics:
1. Make a cultural connection. Be seen as part of the team and have your brand truly integrate themselves in a relevant way. The best way to turn off this demographic is to be completely tone deaf to cultural nuances.
2. Tap into key passions. This goes back to the first point. Tapping into key passions such as family (featuring multiple generations) and fútbol (not football) provides a cultural connection and shows that you understand the passion points of this demographic.
3. Spanish is important. As Hispanics move between cultures, Spanish continues to be a key part of identity. Today’s generation is proudly Hispanic, speaks Spanish and celebrates cultures and traditions. Financial brands should address this audience in the language they connect with emotionally.
4. Education. Education in financial products is key to tapping into the market. Yes, there’s a demand for financial products, but there is a lack of knowledge and it can be overwhelming to plan for a financial future. Hispanics are increasingly becoming more affluent. In fact, the number of Hispanic households earning $75,000 or more increased threefold in the past 15 years. With this increase of affluence goes the increase of purchasing financial products to protect their futures and loved ones. Often times, today’s generation of Hispanics are the first in their families to have employee-sponsored benefits. Financial education should be the bedrock of your Hispanic marketing plan.
Hispanics are game changers in the financial industry. From population growth, affluence and consumer spending, it is no longer acceptable to just “tack on” a Hispanic marketing strategy, but rather it should be part of the overall marketing strategy.
*Source: IHS Global Insight 2013 Hispanic Market Monitor