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Hispanics' embrace of social media holds opportunity for businesses [Austin American-Statesman]
[September 21, 2014]

Hispanics' embrace of social media holds opportunity for businesses [Austin American-Statesman]


(Austin American-Statesman (TX) Via Acquire Media NewsEdge) Sept. 20--These days, Austin-based Hispanic advertising agency LatinWorks manages social media operations for six brands, including Lowes Home Improvement, Budweiser and Pepsi.

A year ago, the agency managed probably half that total, said Christy Kranik, senior vice president and managing director for the firm.

Hispanics have adopted social media in record numbers, according to research, and while the financial impacts aren't yet fully known, experts say that businesses are well-served to follow them online.

"I think brands are going to have to figure out how to win in the social media space in order to truly connect their brands to this Latino consumer," Kranik said.

Hispanics are the most active group on social media networking sites, according to a 2013 Pew report. According to the survey, 80 percent of Hispanic adults in the U.S. use social media, which is more than whites (70 percent) and African Americans (75 percent).



What's more, the survey shows an increase from 72 percent of Hispanics in 2012 to 80 percent now.

Two-thirds (68 percent) of Hispanic internet users say they use Facebook, Twitter or other social networking sites, according to the Pew Hispanic Center survey. By comparison, 58 percent of all U.S. internet users say they use Facebook, Twitter or other social networking sites.


And Hispanics continue to be the youngest and fastest-growing demographic in the United States, which makes them particularly attractive to advertisers.

Washington, D.C.-based marketing group Latinum Network puts Hispanic buying power at upwards of $1.2 trillion annually, based on U.S. Census and Commerce Department statistics.

This year, more than 1,200 journalists, bloggers, filmmakers and marketers met in Miami for the fifth annual "Hispanicize" event, focusing on how best to reach this demographic. Five years ago, the conference drew a few hundred people.

What's driving the social media adoption, experts say, is smartphones. A majority of Hispanics (60 percent) access online content through smartphones, Kranik said, compared to 27 percent of the general market.

"They're running businesses off of their smartphones, that is socially how they're connected," Kranik said. "So when you're talking about Hispanics and social media, you're talking about the mobile device." In 2009, LatinWorks created the first Spanish-language Facebook page for the Budweiser/Bud Light beer brands. Now "we do that for many clients," she said.

A number of studies show that U.S. Hispanics lead the general population in social media, mobile and e-commerce adoption. One such report, BIA/Kelsey's Consumer Commerce Monitor Study, found that Hispanic consumers are more likely to use social media for local shopping, at least on some platforms, according to trade publication MediaPost.

Overall, 17.7 percent of Hispanics surveyed said they use YouTube for local shopping, compared to 10.3 percent of non-Hispanics, while 16.8 percent of Hispanics use Yahoo for the same purpose, compared to 16.3 percent of non-Hispanics. 11.1 percent of Hispanics use Twitter, compared to 6.7 percent of non-Hispanics.

Aside from smartphones, a couple of factors are driving the use of social media among Hispanics, Kranik said.

"In terms of Latinos, just in general, they're extremely social beings," she said. "And I think, one, social media is free. Two, it is worldwide, so they can connect back with their families in their country of origin. It makes them stay connected (and) feel like they're still part of that culture, which is something that this consumer wants to do." Social media's ability to make it more efficient to connect with family and loved ones also taps into deeply held cultural values, said Mark Madrid, president and CEO of the Greater Austin Hispanic Chamber of Commerce.

"We love to connect, we love to communicate, we love to share," Madrid said. "It's in our DNA." Hispanics also rely heavily on recommendations from friends and family to select products and brands -- even to buy into trends, Madrid said.

"I think all that, coupled with the cultural aspect of family and sharing, results in a business argument that has to be listened to and can't be ignored," he said.

Madrid says he increasingly hears from local businesses wondering about how to connect with users via social media platforms. His group provides initiatives for small business owners who might not have resources for a full-time marketing or social media employee.

"I think everybody knows that it's here," said Madrid, referring to social media. "From an entrepreneurial or small business standpoint, it's here. It's how do we internally figure out that magical formula?" About 81 percent of Hispanic Facebook users are on Facebook every day, Kranik said. And social media is empowering to Hispanic consumers because it allows them to talk directly with the brands, she said.

"We encourage all of the brands that we work on to have a social media component for their brand," she said. "And really, it's because that's where the consumers are." Additional material from the Associated Press.

------ Growing Austin Growing Austin is an occasional series examining the impact of growth. This fall, the series is focusing on the area's growing Hispanic population. In coming weeks, stories will explore changes ahead for politics, education, health, culture and other aspects of Central Texas life affected by this demographic shift.

Hispanics and social media Smartphones 60 percent of Hispanics access online content through smartphones, compared to 27 percent of the general market.

Facebook 68 percent of Hispanic internet users say they use Facebook or other social networking sites, compared to 58 percent of all U.S. internet users Twitter 11.1 percent of Hispanics use Twitter, compared to 6.7 percent of non-Hispanics YouTube 17.7 percent of Hispanics surveyed said they use YouTube for local shopping, compared to 10.3 percent of non-Hispanics Source: Pew Hispanic Center survey ___ (c)2014 Austin American-Statesman, Texas Visit Austin American-Statesman, Texas at www.statesman.com Distributed by MCT Information Services

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