New survey data from marketing research firm Viant reveals the spending traits of African-American Millennials, who comprise about 26 percent of the total African-American population and 14 percent of all Millennials.
Top retail brands include Amazon and Target while most favored TV networks include FX, ESPN, MTV and BET. And when it comes to the cars they drive, 57 percent of African-American Millennials are “more likely to drive a Cadillac” than other consumers while 40 percent are more likely to get behind the wheel of a Lincoln.
Researchers of the report said while African-American Millennials have “a significant impact on mainstream American culture” they also “have a large and growing spending power of their own.”
“In fact, total African-American spend is projected to reach $1.4 trillion by 2020 — a 275 percent increase since 1990,” Viant stated. “Millennials make up just over a quarter of the African-American population, and will account for a significant percentage of that spending power.”
Regarding retail preferences, African-American Millennials “are fond of Amazon,” Viant noted, adding that this demographic cohort visits Amazon “nearly as often as Target, J.C. Penney and Kohl’s combined.”
Researchers of the report also said a key takeaway from the survey was that as the global color cosmetics industry has swelled to $48.3 billion, African-American Millennials are “heavy buyers” of the segment. “They are 24 percent more likely to be higher spenders on cosmetics and toiletries than other Millennials, and spend an average of $111.82 per quarter at Sephora,” the researchers said.
The report also revealed the importance of cross-device marketing campaigns since African-American Millennials “lead the way in ownership of smartphones and tablets when compared to the total U.S. population, as well as in use of messaging apps, audio streaming services and ideation apps like Instagram and Pinterest.”