Reaching the Latinx Market Involves Buy-In at Senior Levels

(L-R) Scott Rothkopf (Whitney Museum of American Art), Rebeca Vargas (Wells Fargo), Vanessa Perdomo (Bloomberg), Javier Farfan (National Football League), Brianna O’Brien Lowndes (Whitney Museum), Kyle O’Brien (Adweek), Mike Valdes-Fauli (Chemistry Cultura), and Ramiro Cavazos (U.S. Hispanic Chamber of Commerce). Chemistry

By Kyle O’Brien

The Latinx market is already booming, but marketers are still playing catch-up trying to reach this potentially lucrative segment. The reasons why are many, from not taking the demographic seriously enough, not knowing how to talk to the Latinx and Hispanic population in the U.S., bad Spanish translations and systemic bias.

But some brands and industries are finally recognizing the power of the Latinx consumer. The U.S. Hispanic Chamber of Commerce (USHCC), America’s leading small business advocacy group, and Chemistry Cultura, a minority-certified marketing agency, recently unveiled a jointly commissioned study called The Latino Mosaic. The survey polled 1,427 U.S. Hispanic adults across the country, and the results deliver the latest snapshot of the Latino community, currently representing one-in-five Americans.

Some of the findings include:

• Hispanic and Latinx Gen Z are highly active on TikTok.
• Television is still unmatched in the broader Latinx marketplace.
• There is a growth of Spanglish in media and households.
• There is loyalty built from brands that show respect for heritage.

Adweek talked with brand and agency representatives at the Latino Mosaic panel about how brands can better reach the still burgeoning Latinx market through sports, banking, media, music and news outlets and why having buy-in at the top levels is key to success.

Some demographic background

Ramiro Cavazos, president and CEO of the USHCC, pointed out that Latinos number 62.5 million people, or 20% of the U.S. population, and that 86% of the jobs filled in the last 10 years were filled by Latinos, and 84% of new companies started in the last 10 years were by Latinos.

“This is a juggernaut that is coming in a very good way to lead this nation,” said Cavazos. “We represent many corporations who realize that the future of the economy is the fastest growing consumer.”

Cavazos pointed to a telling statement by Joaquin Blaya, who was the CEO of Univision and Telemundo during the late ’80s and early ’90s. “’Being Latino is a state of mind. It’s not a race. It’s an ethnicity.’ We’re white, we’re Asian, we’re Jewish, we’re Afro Latino; we’re different religions; it is a big part of who we represent in this economy,” he said.

Cavazos doesn’t know why brands and advertisers aren’t jumping at the chance to work with Latinx businesses. Those who haven’t started the ball rolling are already behind, he noted, because those who got in 15 or 20 years ago are already taking advantage of that economic power.

“If we capitalize these businesses, if we do business with them and hire those companies, if we hire people in the C-suites, put them on corporate boards, we would generate an additional $4 trillion to the U.S. economy that is untapped right now,” said Cavazos.

How to reach the burgeoning Hispanic market

“I would start by doing your homework. As obvious as that might sound, it is counterproductive to do the bare minimum,” said Mike Valdes-Fauli, president of Chemistry Cultura.

Valdes-Fauli went on to say that using Google Translate on an English-speaking TV spot will not only not work, but it will do more harm than good. He advises either staying out altogether or doing the homework needed to lead with cultural nuance and sensitivity.

“The brands that do that will benefit from disproportionate brand loyalty and capture that market, but you have to invest time and resources,” said Valdes-Fauli.

Insights from The New Latino Mosaic study from Chemistry Cultura and the USHCC.Chemistry Cultura

Getting buy-in at senior levels

The ones who can help clear the barriers to changing the marketing culture for the Latinx community are in the C-suite.

“You need to have the buy-in at the top of the house, in any corporation, for that corporation to truly invest in the Latino community and truly invest in Hispanic market,” said Rebeca Vargas, head of marketing for diverse, affluent, student and emerging segments at Wells Fargo.

Vargas said that if the CEO is not fully committed, nothing is going to happen. The lack of Latinos at senior levels with authority will stall marketing efforts.

Another major barrier is the budget. The C-suite controls the budget, so if those at the top don’t see the economic importance of marketing to Latinos, that budget will not be allocated.

“The growth of [Wells Fargo] really depends on the Hispanic segment, and has for years … we know that if we don’t get it right, we will not grow,” said Vargas.