An Untapped Segment: African-Americans

By: Jeremy DivinityMarch 12th, 2015

Never before has reaching the African-American (AA) consumer been so critical for marketers, the AA consumer market is a thriving, growing segment – and one that spends well for what it wants and needs

Why target African-Americans(AA)?

Growth rate outpaces the total population by almost 30% As their influence continues to grow, partner with them as

market leaders Data shows they are incredibly brand loyal – much more than the general market – and they place a high value on brands Source: http://brandedcontent.adage.com/pdf/CABblackconsumer.pdf

The AA market represents tremendous growth opportunity that can make a difference in your ability to not only win, but win big in a new diverse 21st century

Demographic Profile

• Increasing Purchase Power • Highly influential and ad-receptive• Collectively spend $156.9 billion annually on non-essentials• Largely image-conscious and brand focused Source: Experian

African-Americans are less likely to be influeced by friends for purchase decisions and instead are more likely to be influenced by advertising

Brand Champions

For marketers of luxury goods, automobiles, entertainment and household products, goods and services, this suggests that the AA market is a growth segment worth investing in

AA consumers are brand champions who can influence the general market

Ranging from cars to packaged goods, the AA propensity for buying branded, high-ticket and high-margin items makes them more loyal and profitable customers than any other consumer segment

Money Talks

“We know that there is a significant business opportunity in reaching African-American consumers, who comprise 13 percent of the population and have a spending power of over $949 billion,” — NY Times: Media Decoder; A Site to Help Marketers Appeal to African Americans, 2011

The spending power of the AA demographic will increase 25% by 2015, increasing from $957 billion to $1.2 trillion – making the demographic a priority audience for brands to reach Source: Media Post: African-American Demos Express Ethnic Identity Differently, 2012

Millennial Influencers

The majority of African-Americans are under 30 years old (47%) 

Millennial African-Americans continue to play a significant role in defining emerging and pop culture, which is often adopted by the broader consumer market

Millennial African-Americans are critical to engage and connect with as their disposable income grows in the next decade

African-American Millennials are:• Key Influencers• Early Innovators• Trend Setters• Style Leaders

Industry Opportunities

 “Black consumers are more likely to plan to buy or lease a car or truck within the next six months (27.4 percent) than all adults 18 and older (16 percent).” —BIGinsights

With improving socio-economic status, the AA market represents a major untapped customer acquisition opportunity

“Black consumers spend an average of $12.55 on fast food each visit compared with non-Black consumers, who spend an average of $11.47 per visit.” —BIGinsights

OUTFRONT Opportunities

With sizable numbers and favorable responses to advertising, engage and reach this “always-on” audience with relevant messages using OUTFRONT MEDIA

OUTFRONT Media offers outstanding value and a variety of formats that can effectively reach the sizeable, increasingly mobile, and active AA consumer market

AA consumers are more likely than the average American to consider a range of advertising types as purchase influencers, while being less likely to rely on word-of-mouth - Experian Marketing Services (2013)

Key Areas of Coverage

Despite African-Americans’ sizable numbers and favorable response to advertising, just 3% of major media ad spending is targeted to them, according to a recent study from Nielsen (2014)

Prime Areas of Coverage:Blue Collar– Harlem, Washington Heights, Bronx, Staten Island

Mass Affluent – Brooklyn, Lower Manhattan, Queens

Aspirational Leaders– Long Island, Upper Eastside

The New York Metro AA population is the largest of any city in the United States

New York City Media Coverage

Reach this ad receptive audience by partnering with OUTFRONT Media, as our coverage will deliver a simple direct message that cannot be turned off or put down unlike TV, radio, or print

Bus – Drive your message to potential customers with this highly visible medium that circulates in and around AA communities, easily seen by both pedestrians and commuters

Posters – Reach highly mobile AA pedestrians as well as those in autos with this “mini-billboard”

Billboards – African American’s are more receptive than the general market to billboards. Raise awareness, provide information, and broaden your influence using billboards placed in key areas throughout the city

Walls – Provides large-impact message capability in and around AA neighborhoods

Subway – Up close and personal advertising format(s) that offer the ability to delivery tremendous stopping power, eye catching ability, and providing info in a relevant and convenient manner

Urban Panels – Increase brand familiarity and awareness with eye level placements located on key street intersections around NYC