There are more than 50 million Hispanics living in the United States, making them the single largest ethnic group, according to the U.S. Census Bureau. If U.S. Hispanics were a country, they would rank as the 12th largest global economy, somewhere between Mexico and Australia, commanding more than $1 trillion in purchasing power. The fact that U.S. Hispanics represent more than half (56%) of net population growth from 2000 to 2010 and are projected to contribute 100 percent of the population growth between the ages of 18-49, is game changing.

By 2050, Hispanics are projected to account for more than 30 percent of the U.S. population – a significant growth driver that marketers can no longer overlook. But the questions for many remain:

• How do I reach and successfully engage Hispanics?
• Will general market campaigns capture enough of the Hispanic demographic?
• Is online relevant?
• Should I consider mobile in my market mix?

To answer these questions, Nielsen breaks down the prevailing myths surrounding Hispanic interaction with today’s media.

Myth #1: Bilingual Hispanics don’t watch Spanish television

There is a belief that once Hispanics learn to speak English well and become bilingual, they become “acculturated” and use English as their primary language. However, acculturation is a process rather than an absolute classification whereby Hispanics adopt American customs while still guarding their culture, heritage and traditions. While 77 percent of U.S. Hispanics speak English well, according to current American Community Survey estimates, 61 percent of Hispanics aged 18+ tell Nielsen they prefer to speak Spanish in their homes versus only 17 percent who say they speak only English. Spanish language remains a core component of the Hispanic home long after English proficiency is gained. Language spoken at home rather than English ability tends to be a better indicator of TV viewing behavior.

While there is general consensus that Spanish-language-dominant homes (speak mostly or only Spanish) predominately watch Spanish-language TV, there is debate about viewing patterns in multi-language homes (where English and Spanish are spoken equally). The viewing breakdown during the 2009-2010 TV season for persons 18-49 is as follows:

• Spanish-language-dominant homes viewed 78 percent of TV in Spanish.
• Multi-language homes viewed about 50 percent Spanish-language TV.
• English-language-dominant homes (speak mostly or only English) spent only three percent of time viewing Spanish-language TV.

Digging deeper into a multi-language home reveals that English- and Spanish-dominant members primarily watch TV in their preferred language, but as expected, the time spent viewing in English and Spanish language eases towards the middle. English-dominant Hispanics in multi-language homes spend 80 percent of viewing on average in English and 20 percent in Spanish versus English-dominant-homes where the split is about 97 percent English and three percent Spanish.

The same movement toward the middle is seen with Spanish-dominant members in a multi-language home where 65 percent of viewing is in Spanish versus 77 percent for a Spanish-dominant home. Despite the variability across the different Hispanic language groups, in 2010, the top ten broadcast shows for the Hispanic demographic were all Spanish-language programs. The fact that the majority of Hispanics aged 18+ prefer to speak Spanish at home underscores the growing need for advertisers to better connect with Hispanics in the native language.

Myth #2: I can reach Hispanics through my general market campaigns; Spanish-Language advertising is an expendable part of my budget

In 2010,Nielsen reports that only 75 percent of the top 200 advertisers spent money on Spanish-language cable or broadcast, and those that did only spent about eight percent of the total advertising budget on Spanish-language TV.

For English-language television, Hispanic viewing time is dispersed over a large number of networks, while Spanish-language viewing is more concentrated. A brand advertised across all English-language national broadcast networks in primetime would only reach about 40 percent of all Hispanics aged 18-49, while a Spanish-language broadcast would reach 53 percent. However, when looking into Hispanics 18-49 who are Spanish-language dominant, the gap widens substantially. An English-language broadcast campaign in primetime only reaches 19 percent of Spanish-language dominant Hispanics versus a Spanish-language campaign that reaches 85 percent of Spanish-language dominant Hispanics over a month. That’s a difference of 5.6 million Spanish-language-dominant Hispanics 18-49 or roughly 60 percent of the demographic. A primetime English-language-focused broadcast campaign effectively leaves out Spanish-dominant Hispanics.

Besides providing access to a unique audience, Spanish-language advertising is generally more effective than English-language advertising for Hispanics. Nielsen’s advertising effectiveness studies show that advertisers who translate English ads into Spanish receive an increase in general recall among Hispanics when compared to general market English-language commercials. However, original Spanish ads (ads that do not have an English counterpart or that are based on existing ads by modifying the narrative and soundtrack) see a 15 percent general recall lift from English-dominant Hispanics and a 69 percent general recall increase from Spanish-dominant Hispanics. Two reasons for this effect are that Spanish ads create a deeper personal connection to Hispanic consumers and Hispanics are less likely to time shift Spanish-language programming.

While only 30 percent of Hispanic homes have DVRs compared with 38 percent for the general market, the format in Spanish-language television programming (i.e., daily novellas) make it less likely to be time shifted than English-language TV. As an example, during 2010, English-dominant Hispanics were twice as likely to time shift programs in English as in Spanish while Spanish-dominant Hispanics were three times more likely to do so.

Myth #3: Hispanics are late adopters of technology, so using online and mobile campaigns is unnecessary

According to Nielsen 2010 universe estimates, approximately 30 million Hispanics (62%) have access to the Internet at home. Include the number of Hispanics who have online access via work, school or in other public places and Internet penetration rises to about 88 percent. And mobile Internet access closes this gap even further, since Hispanics are more likely to have a video and Internet enabled cell phone than the general market (44% vs. 35%). While Hispanics spend 20 percent less time online than non-Hispanics, they stream twice as much video online, accounting for almost 30 percent of their online activity.

New studies are finding that Hispanics are equally, if not more involved in emerging technologies than the general market. A recent look at Nielsen’s national people meter panel reveals that Hispanics are just as likely as non-Hispanics to own an HDTV (69% vs.66%). And Nielsen’s 2010 Q4 mobile insights survey of more than 50,000 people and more than 8,000 Hispanics reveals that Hispanics are not only more likely to own a smartphone, but also they are part of the most valuable mobile consumer segments, carrying an average monthly bill that is 14 percent higher than the market average. Hispanics also lead all ethnic groups with an average of 40 percent more calls made per day and are the most likely ethnic group to use text messaging, mobile Internet and e-mail. They are also more likely to download pictures or music on mobile devices.

The Hispanic consumer represents the greatest potential for sustained growth in the U.S. today. At the current rate of expansion, Hispanics will drive population growth and, in turn, consumption in America for the next generation. Reaching Hispanics effectively should be at the top of every marketer’s to-do list. Hispanics actively embrace new technologies and platforms, while keeping close ties to their roots, especially language. And while Hispanics do consume English-language media, Spanish-language media holds the key to connecting with the greatest number of Hispanic consumers most effectively.

Download related Nielsen information about Hispanic and media.

Download the Hispanic Media Usage fact sheet.

The dollar shift accompanies a rise in audience size for Univision and Telemundo, which garnered 11 percent more viewers last year.  But audience size is only part of the story: ads that are developed specifically for the Hispanic audience (versus those that are simply lifted or translated from general market TV spots) are received more favorably among Latinos and earn higher brand and message recall. 

Read the full story about how language holds the key for marketers trying to reach the burgeoning Latino market in the current edition of Consumer Insight.

Ruth Behr, Director of Client Consulting and Reny Diaz, Client Solutions Associate, The Nielsen Company

SUMMARY: Hispanics comprise a growing 15% of today’s American moviegoers and amounted to over 128 million of U.S. box office admissions in 2008. Latinos not only represent an opportunity to positively impact overall box office success, but they are an influential segment with the power to build brand awareness.

Denied her golden ticket to stardom, then obscure Margarita Cansino’s dreams were crushed when she found herself replaced by blond bombshell Loretta Young as the lead in Fox’s remake of the 1928 blockbuster Ramona. Cansino’s ethnic name and Latin features had evidently designated her impractical. It wasn’t until two years later, when Columbia Pictures changed Rita’s last name to Hayworth and dyed her dark hair to auburn, that she ever stood a chance of being noticed in Hollywood.

Today, the movie industry’s attitudes toward Latinidad are quite the contrary: Though Latinos comprise an exponential 15% of the U.S. population, they represent an overwhelming 28% of today’s heavy moviegoers—a substantial contribution to any feature film’s box office success.

A growing audience
About 26 million of today’s American moviegoers are Hispanic, most commonly between the ages of 12 and 34. Almost half of these young Latinos watch 11 or more movies in theaters every year, making them 100% more likely than the national average to be considered “frequent moviegoers”. Half of all Hispanics prefer to see a movie within the first 10 days of a film’s opening. Understanding Latino consumption and entertainment habits can help studios and agencies maximize the success of a feature with this valuable segment of the movie-going population.

Language lessons
For Hispanics, in-home language preference—categorized as either English-dominant, Spanish-dominant or bilingual—plays a smaller role in the movie-going experience than might be expected. While language differences often exist among Hispanic families, the ability to participate in an activity as a family unit supersedes individual language preference.

Hispanics are 77% more likely to take turns picking films within their movie-going party. For example, although one-third of Hispanic moviegoers in Spanish-dominant homes see movies with Spanish dubbing or subtitles in theaters, less than half prefer this format to a standard English-language experience.

And just as the majority of Spanish-dominants sit through—and presumably enjoy—English-only films, 18% of their English-dominant counterparts have seen a Spanish-dubbed or subtitled film in theaters¹. The familial bent in Hispanic movie-going translates to greater instances of ticket and concession purchases per party, as Hispanic households are generally larger and more extended compared to the average movie-going family.

The main attraction
Hispanics are worth an estimated $1 billion to the U.S. movie industry, representing 30% of moviegoers who see 10 or more summer movies in theaters. Summer is the most important season for the industry, often accounting for 40% of the year’s box office revenue.

The Family, Horror/Thriller, Romantic Comedy and Action Adventure genres attract the greatest interest from Hispanic moviegoers². Family films, in particular, provide entertainment that crosses the generation and language preferences of Hispanic families. This is mainly evident with attendance to animated movies, as Hispanics can comprise over one-quarter of these audiences. Animated movies may cross language dominances better than other genres because not only can they be understood with varying degrees of English comprehension, but abuela is likely attending with her grandchildren as well.

Overall, Hispanics command the highest share of audience in the Horror/Thriller and Romantic Comedy genres. Their highest headcount contributions—in Action Adventure and Family—correspond to the highest-grossing genres in the U.S. market.

With regard to the 800 million DVD units sold in the U.S. last year, Hispanic households are 24% more likely to purchase them compared to the average American household. In fact, almost 79% of Hispanic moviegoers bought at least one DVD in 2008.

TV ads engage and captivate
As important contributors of movie-going audiences, Spanish-language and Hispanic-heavy English networks would be wise to not overlook their fair share of studio spend. On average, 1.5% of prime-time Spanish broadcast was time-shifted by moviegoers—7% less than the English-language counterpart’s average. This trend contributes to the boost in live commercial ratings for the average Hispanophone program, making Spanish-language television particularly effective in targeting Hispanic moviegoers.

In addition to spending TV time differently, Hispanic moviegoers also internalize movie advertising more positively. Almost two-thirds of Hispanic moviegoers consider movie ads on television as “informative and eye-catching”, making them 7% more likely to think so compared to the average movie-going population³.

Many Hispanic moviegoers still consider current amounts of movie advertising on Spanish television as “not enough”. In 2008, movie studios spent an estimated $103 million on Spanish-language network and cable television. This amount equates to 3% of reported spending for the motion picture category—a 13% increase from 2007 movie spending on Spanish-language TV. For a medium that tends to over-deliver the moviegoer target, Spanish television represents an opportunity to target moviegoers who may otherwise be inaccessible.

An analysis of Universal’s Fast and Furious television campaign demonstrates the added reach Spanish programming can provide. With an opening weekend audience worth $72.5 million—46% of which was reported Hispanic—the brand tapped Hispanic moviegoers for part of its success. Fully 11.3% of moviegoers saw spots on Spanish broadcast and cable—almost half of which would never have been reached with the rest of Universal’s campaign.

But Hispanic moviegoers don’t just watch Spanish television. While Univision elicits 20% of Hispanic moviegoer’s broadcast and cable viewing minutes, English-broadcast networks ABC, CBS, the CW, FOX and NBC together command over 15%. Networks ESPN, NICK, TBS, TNT and USA rule cable for Hispanic moviegoers, comprising 10% combined. English-language programming often occupies the majority of Hispanic moviegoers’ time spent on broadcast and ad-supported cable.

Synchronized sensibilities
Considering that Hispanics comprise one-quarter of the most frequent moviegoers, Hollywood’s reversion from Hayworth back to Cansino is reflective of an era where Hispanic moviegoers are valued for precisely that which Rita Hayworth felt obliged to alter—cultural sensibility. Understanding the unique consumption habits of Hispanics will help the movie industry tailor a portion of its advertising to a box office constituency that can build brand awareness and success for movie features to come.

¹ 2007 Nielsen NRG moviegoer benchmark.

² 2007 Nielsen NRG moviegoer benchmark.

³ 2007 Nielsen NRG moviegoer benchmark.

To take advantage of this burgeoning online Hispanic population, Telemundo will begin delivering its programming on websites and mobile phones globally, the Herald noted. 

The move reveals the growing importance of digital media in the Hispanic market, Peter Blacker, executive vice president Digital Media and Emerging Businesses, Telemundo, told the Herald.

“The audience is demanding it,” Blacker noted.  “Our audience wants to consume content wherever and however they can get their hands on it, so we need to make our content available to them whether you live in Latin America and are watching a novela or are looking at your cellphone and you want to see last night’s episode.”

That’s a 3% increase over the $5.63 billion spent on Spanish-language media in 2006.  Overall in 2007, U.S. advertising spending rose 0.6% over 2006.

Broadcast Media Partners Inc. (Univision’s parent company), which spent $205.9 million on advertising in 2007, was the largest advertiser across all Spanish-language media.  Lexicon marketing, which increased its ad spending by 38% from 2006 to 2007, showed the largest percentage increase.

The Automotive category, which spent just over $659.4 million advertising in Spanish-language media, had by far the most spending last year — more than doubling the dollar amount spent by the number two category, Wireless Telephone Services ($313.6 million).  Among the top ten categories, the Wireless category showed the largest percentage increase (+35%).

Read the full report.