The multicultural media market is becoming an important consumer segment for brand marketers that want to increase their U.S. market share.
Multicultural media spending will record a growth of 6% to reach $28.72 billion in 2020, as per PQ Media’s new US Multicultural Media Forecast. That is the fastest growth rate for the market in nearly ten years. The report revealed that multiethnic consumers, including Hispanic, African, and Asian Americans, constitute the fastest-growing demographic in the country. Multicultural media growth has underperformed the broader U.S. media industry as multicultural consumers comprise nearly 40% of the total U.S. population. As per the report, the multicultural media investments draw only 5.2% of overall U.S. media spending.
The report found that five percent share or $17.94 billion ad dollars of the multicultural spend are going into the Hispanic segment. Meanwhile, the Asian-American segment is seeing the highest spending growth rate at 7% to reach $722 million. Marketers are significantly underspending to reach consumers from multicultural segments. However, they are overspending to reach non-multicultural consumers.
The majority of ad dollars are pumped into TV, which generated just over $7.6 billion in revenues, the report found. Interestingly, marketers are also investing in the relationship and experiential marketing segments. They are focusing on social marketing with influencer and content marketing that recorded an increase of about 11% in 2018, making them the fastest-growing platforms for multicultural spending.
Television advertising was the largest in terms of multicultural media revenue at $7.67 million. Relationship marketing, promotional marketing, experiential marketing, and digital advertising rounded out the top five at $4.62 million, $3.08 million, $2.67 million, and $2.59 million, respectively.
To increase their reach towards multicultural consumers, marketers need to leverage digital advertising. As is clear from the data above, brands need to make a shift from generic market messaging and focus on delivering culturally relevant messages that are consumed by multicultural audiences.