A new study conducted by Time Inc. property, Viant Technology reviewed consumer behavior of U.S.-based, Hispanic Millennials. In order to collate the results, Viant analyzed and compared the overarching perspective and habits of Hispanic and non-Hispanic Millennials.
The research centered predominately focused on comparisons between two million Hispanic Millennials and 13 million non-Hispanic Millennials spanning Q4 2016. The findings were collected in the report “The Marketer’s Guide to Hispanic Millennials” that sheds insight into the market and how to best appeal to a core segment of the Millennial demographic.
The better understanding of the sub-set, the bigger the pay-off for brands. “Millennials are one of the most inherently multicultural consumers in the U.S. In fact, of the 75 million Millennials in the U.S. today, more than 42 percent are multicultural,” said the report. “The U.S. Hispanic population is comprised of 59 million people, with purchasing power north of $1.5 trillion a year. When it comes to the generational breakdown of Hispanic Americans, more than 40 percent are Millennial. Hispanic Millennials are no longer a small sub-segment of the U.S. economy, they are a driving force.”
Despite their magnitude, Hispanic Millennials continue to trail non-Hispanic cohorts in earnings. “Hispanic Millennials still fall slightly behind non-Hispanic Millennials in all income categories, and are 27 percent less likely to have an income greater than $125k,” said the report. All Millennials love a deal — brands that deploy loyalty and special deal programs will satisfy all groups — but particularly Hispanics, the report suggested.
“Eighty-one percent decide where to shop based on whether they can use a smartphone or store card coupons. If you take into account that Hispanic Millennials are heavy users of both mobile and social, marketers have a great opportunity to engage this group with deals delivered to the device closest to them,” the report said. Optimizing mobile activations geared specific to deal-hungry Millennials will motivate spending and develop loyalty to boot.
Socially speaking, Hispanic Millennials are some of the heaviest social media users of the generation, the research found. According to the report, 44 percent of Hispanic Millennials use Twitter — 37 percent of non-Hispanic Millennials use the platform. “Given Hispanic Millennials’ affinity for social media and mobile usage, brands who want to connect with this audience should look to these platforms to promote their message,” said the report.
The preferred platforms? The study found that 49 percent of Hispanic Millennials frequent Instagram compared to 37 percent of non-Hispanic Millennials.
According to the report, Hispanic-Millennials are more than twice as likely to carry a Starbucks drink than brew coffee at home. However not all caffeine was created equal. The report said, “Hispanic Millennials are roughly 15 percent less likely to drink Coke and Pepsi, and a whopping 5.5 times less likely to drink Mountain Dew.”
What they’re not spending on soda, they might be spending on Amazon or various department stores. The research found that the average quarterly spend for Hispanic Millennials is $207 at Amazon, $148 at J.C. Penney and $132 at Macy’s.
“They spend the most money at J.C. Penney, outspending non-Hispanic Millennials by roughly 10 percent,” the report said. “Given that Hispanics are a much more social, multigenerational cultural group, retail stores could experiment with changes in store layout to accommodate larger groups or facilitate social shopping experiences.”
What’s more, the research discovered that non-Hispanic Millennials outspend Hispanic Millennials in CPG and department stores — but Hispanic Millennials outspend them on mobile carriers signaling their need for larger data plans to support social perusing.
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