Ad Age Supplement 4-24-12 Cab Black Consumer

8/2/2019 Ad Age Supplement 4-24-12 Cab Black Consumer

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S I G H T

I N P L A I N

The Black ConsumerOpportunity

SUPPLEMENT TO ADVERTISING AGE


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WE WROTETHE GAME,

AND WE AREREWRITING IT

EVERY DAY.

burre l l . com

2012 Burrell Communications Group, LLC.

For over 40 years, Burrell has earned the trust of leading brands and connected them to what we know

best: the African-American consumer. With over a trillion dollars in spending power, the African-American

consumer market is still one of the fastest growing economic powers in the world. You dont just stumble

into success, you earn it. To learn all the reasons why you should get in the black, visit burrell.com/trillion.


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Supplement to AdvertiSing A

Sometimes the best opportunity is right there in ront o you, but you dont see its truevalue because its too amiliar. You think you already know what its about, and you have a stan-

dard way o dealing with it.

These pages will open your eyes to the major brand-building opportunity thats in plain sight:he Black consumer market.

All advertisers want to minimize their targeting assumptions and maximize their targeting as-

urances. In these pages, we break down the prevailing assumptions and practices used or reach-

ing Black consumers to reveal an assured targeting opportu-

nityincreasingly inuential, educated, entrepreneurial and

mobile, but also decidedly culturally distinct.

U.S. Census Director Dr. Robert Graves says, The deliver-

ing o a message about a product or a service is best done when

the advertiser understands the lens through which a consumer

is viewing both the culture theyre in and how their own ex-

periences map onto it. This market-frst collection o the most

in-depth Black consumer research draws rom a wide range ohighly respected industry experts and research organizations.

It spells out the cultural distinctions and provides a wealth o

insights or credibly customizing the advertisers pitch to this

pivotal group o product purchasers.

We knew now was the time to bring you this package o

actionable insights; while our Reaching Black Consumers website launched only fve months ago,

he volume o inquiries rom interested marketers compelled us to distribute In Plain Sight as

widely as possible.

Many elite U.S. marketers are already all in on the Black consumer investment, recognizing

he value o these inuencers to overall brand perormance. Inside youll hear rom McDonalds,

Coca-Cola, State Farm, Procter & Gamble, General Mills and Ford about their successes in turn-

ng the Black consumer opportunity into big impact on their sales.The opportunity detailed within these pages becomes both a sel-evident sales win and a pow-

rul rebuke to the Well get Blacks along with everybody else thinking and practice. Black-

pecifc, culturally relevant marketing is the clear way orward.

Sa Cha Cyha pks-rbs

President Vice President,

Cabletelevision Advertising Bureau Multicultural and Emerging Markets

April 23, 2012

THE BLACKCONSUMER

INSIDE5 In Plain Sight

6 Buying Power

7 Spending Trends

8 Black Afuents

9 Hot Households

10 Generation Gaps

12 Loyalty Limits

14 Trading Spaces

15 Key Markets

16 Songs in the Key o Lie

18 The Great Debate

20 Marketer Insights

21 Fords Jim Farley

22 General Mills Mark Addicks

23 Coca-Colas Kimberly Paige

24 State Farms Pam El

25 P&Gs Alexandra Vegas

26 McDonalds Neil Golden

27 Content Is King

30 Getting Real

Cover: iStockphoto.com/(left to right) DRB Images, JonyIan McDonnell, DOUGBERRY, Hart Creations, Kali9, Kali9,DRB Images, Camrocker


4/31

Why do we use the term Black instead of African American?

Although Arican Americans are the majority at 89 percent, the U.S. Black population is representative o

he entire Black diaspora, including Black Hispanics, Caribbean and Arican immigrants and those who

dentiy as a combination o Black and another race.

Many Black Caribbean immigrants, along with Canadians or Europeans o Arican descent, eel exclud-d by the term Arican Americanor believe that it does not accurately reect their cultural background.

In most cases, the use o either term is acceptable today and, as in this publication, they are oten used

nterchangeably.

What is buying power ?

Simply defned, buying power is the total personal income o residents that is available, ater taxes, or

pending on virtually everything they buy. It does not include money that was borrowed or that was saved

n previous years. Total buying power or 1990, 2000 and 2010 equals disposable personal income as re-

ported in the National Income and Product Accounts tables by the U.S. Department o Commerce, Bureau

o Economic Analysis, Regional Economic Inormation System.

Based on the data provided by the Commerce Department, the Selig Center prepared projections o total

buying power or 2011-17. It should also be emphasized that buying power estimates are not equivalent toaggregate consumer expenditures as reported in the Consumer Expenditure Survey conducted each year by

he U.S. Bureau o Labor Statistics. For more inormation on Buying Power, visit www.terry.uga.edu/selig/.

s there a Black middle class?

Despite the many stories about the disappearing middle class, the reality is that the Arican-American popu-

ation is decidedly middle class and growing. Most working-age Blacks have college experience, and Black

households with two or more earners have above-average incomes. Black workers are more likely to be

managers and proessionals than service workers. Among Black householders age 45 and older, most are

homeowners.

The auent class is covered in this supplement. For more inormation on other socio-economic groups,

please visit our website, ReachingBlackConsumers.com.

What is ReachingBlackConsumers.com?

ReachingBlackConsumers.com is a groundbreaking new website that synthesizes expert data on todays

Black consumer in one convenient place. A team o industry experts and top research companies share

elevant, timely insights needed to reach this dynamic consumer segment.

ReachingBlackConsumers.com is designed to deliver targeted data and efective strategies to help

you and your brands connect with all segments o the Black consumer market.

Visit ReachingBlackConsumers.com today and register or ull access.

4 APRIL 23, 201

Editors

NotEs

Sean B. Cunningham

President & CEOCabletelevision Advertising Bureau (CAB

EXECUTIVE EDITOR

Cynthia Perkins-Roberts

VP, Multicultural Marketing, [email protected]

MANAGING EDITORS

Charles N. Jamison Jr., Ph.D.

Brand Strategy Director, Footsteps GroupJacklynn Topping

Business Strategist, JTopping AssociatesSUPPLEMENT EDITED BY

Anne Torpey

ARTICLE CONTRIBUTORS

Christine Bunish

Peter Francese

Founder, American Demographics Magaz

Carol Hillsman Sagers

Principal Consultant,CHS Marketing ConsultantsJeffrey Humphreys

Director, Selig Center, Univ. o Georgia

Julie Liesse

Kalil Vicioso

Strategic Director, Added Value CheskinAaron Walton

Founding Partner, Walton IsaacsonEdwin Wong

Sr. Director, B2B Strategic Insights, Yaho

EDITORIAL CONSULTANTS

Pepper Miller

President, Hunter-Miller GroupDerrick Walker

Owner, browner & browner adv.DEMOGRAPHY

Cheryl Russell

Editorial Director, New Strategist

INFOGRAPHIC DESIGNER

Column Five

www.columnfve.com

ASSOCIATE PUBLISHER

Jackie [email protected]

EDITORIAL DIRECTOR

Karen Egolf

ASSOCIATE EDITOR

Richard K. Skews

COPY EDITOR

Nancy Dietz

Barbara Knoll

ART DIRECTOR

Gregory Cohane

PRODUCTION

MANAGER

Kate Nelson

ReachingBlackConsumers.com is owned by

Cabletelevision Advertising Bureau

830 Third Ave., New York, N.Y. 10022, 212-508-1200, www.thecab.tv


5/31


Fluere is Latin or fow, and its at the core o three concepts ev-

ry marketer should understand to build a meaningul and measur-

able relationship with Americas Black consumer segments: uency,

auence and inuence. Understanding these concepts puts the Black

onsumer market opportunity in plain sight.

Fluency is oten connected only to language uency and thereore

oten overlooked as a critical part o the conversation surrounding

marketing to Black consumers. Yet cultural uency is ar more valuablehan language when it comes to making a deeper and longer-lasting

onnection with consumers rom a variety o ethnic, racial and soci-

tal segments. Cultural uency enables a brand to navigate the value

ystems o a consumer segment, and shared values are the most potent

o cultural currencies in terms o establishing brand afnity and ac-

eptance. Contrary to the progressive notion o a color-blind society,

Blacks want to remain culturally distinct. Advertisers that make the e-

ort to become more uent in this regard will reap big benefts.

Auence is an understated part o the Arican-American consumer

tory, as the spotlight is oten ocused on the mass market at best and

negative stereotypes at worst. Additionally, there is oten a mistaken

perception that auence negates cultural retention, that auent Blackonsumers and auent White consumers are more similar than dier-

nt and that culture is disposable among those who have arrived. Not

o, as the Black Auents article on Page 8 explains.

Perhaps most compelling about the Black consumer market is its

ncreasing inuence on the general market, not just by Black auents

but also by urban youth and other grassroots community members.

Arican Americans rom all walks o lie have successully penetrated

ociety at large through their trendsetting impact on ashion, music

and social media. Other consumers look to them to be on the inside

rack o whats current, whats next and whats not. They gravitate to

Blacks sense o style, innovation, originality, authenticity, desirability,

uniqueness and confdencein short, to whats cool and relevant.Leading marketers are capitalizing on this inuential aspect o

he Arican-American market. Just look at the shared insights start-

ng on Page 20 rom the CMOs o McDonalds and General Mills,

both o whom have quantifed the ROI generated rom total-market

ampaigns in which cultural insights led both strategy and execution.

Their defnition o ROI is as much about a return on insights as it is a

eturn on investment.

While marketers like these are leading a gradual shit in thinking,

ar too many marketers that know Arican Americans are an integral

and inuential part o the consumer dynamic still exclude them rom

erious marketing conversations. The reasons vary, but the end result is

the same: a missed opportunity on many levels.

Are you still marketing rom your comort zone and avoiding t

tough questions?

When your company thinks about Black consumers, does it:

n Consider the minimal use o Arican-American perormers a

models to be sufcient or, even worse, progressive?

n Limit the ocus to making sure youre not oending them athrowing together a ew ads around Black History Month?

n Conclude that a handul o Arican Americans in a predominan

White consumer ocus group have voiced all the insights youll need

n Consider that an Arican-American measurement sample is su

cient merely by reaching a numeric quota, with no consideration giv

to age, gender, economic and other variables?

n Create pro orma budgets without careul analysis o the Black co

sumer opportunity?

If your company works with cultural specialists, do you:

n Invite them to sit at the table with the agency youve assigned to yo

mainstream advertising? I so, are they invited at a point in the procwhere they cant really impact anything?

nConsider your specialized agency or new opportunities that have

to be assigned to your mainstream agency?

nGive your multicultural specialists, both internal and external, som

thing meaningul to do beyond making sure that the company is ave

ing a PR crisis?

Integrating the Black consumer opportunity into all discussio

does not negate the importance o highly targeted marketing eo

directed to this community. Black advertising or Black consumers

strategically smart and deserves recognition and respect. The relevan

and resonance o culturally targeted media such as BET and TV O

Black Enterprise, Essence, Ebony and Uptown can never be deniedduplicated.

With this white paper, the Cabletelevision Advertising Bure

hopes to answer some questions or marketers, shining a light on

oten misunderstood and undervalued market. Its time to advocate

courageous conversations about race and culture, discrimination a

dierence. When these conversations come out o the shadows, it w

be much easier or everyone to understand that the Black consum

opportunity is ar-reaching, powerul and proftable; and that its n

only in plain sight, but also steeped in insights that will elevate yo

brands total-market perormance. Which brings us back tofuere

owwith an unstoppable, replenishing return on investment.

April 23, 2012

IN PLAIN SIGHT


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Despite the severe impact o the Great Recession, the economiclout o Black consumers continues to energize the U.S. consumer mar-

ket. The University o Georgias Selig Center or Economic Growth es-

imates that the nations Black buying power is rising, rom $316 billionn 1990 to $1.038 trillion in 2012 and projected $1.307 trillion in 2017.

The 2000-12 gain o 73 percent in Black spending outstrips the 60

percent increase in White buying power and the 67 percent increase

n buying power o all consumers. In 2012, Black consumers share o

otal buying power is projected to be 8.5 percent, up rom 8.2 percent

n 2000 and 7.5 percent in 1990. That is expected to rise to 8.7 percent

n 2017almost nine cents out o every dollar spent.

The gains in Black buying power reect much more than just popu-

ation growth and ination. O the many diverse supporting orces, one

o the most important is Blacks starting and expanding their own busi-

nesses. The 2007 Survey o Business Owners, released by the U.S. Census

Bureau in June 2011, shows that the number o Black-owned companieswas 61 percent higher in 2007 than in 2002more than three times the

8 percent gain in the number o all U.S. companies. Between 2002 and

2007, the receipts o Black-owned companies grew by 55 percent com-

pared with a 34 percent increase in the receipts o all U.S. companies.

Still another positive actor pushing up the groups buying power

s that Arican Americans continue to experience rising education

evels, which should allow proportionally more Blacks to enter oc-

upations with higher average salaries. Census data show that the

percentage o Blacks 25 years and older who have completed hi

school or college rose rom 66 percent in 1990 to 84 percent in 201

Also, the 2010 Current Population Survey indicates that 20 perce

o Blacks had a bachelor, graduate or proessional degree.Favorable demographic trends also boost buying power. The Bla

population continues to grow more rapidly than the total U.S. popu

tion. From 2000 to 2012, the nations Black population grew by 16 perce

compared with 7.6 percent or the White population and 12.2 percent

the total population. From 2012 to 2017, the nations Black population

projected to grow by 6.9 percent, compared with the 5.7 percent grow

estimated or the total U.S. population. Also, the Black population

younger. The 2010 Current Population Survey estimates the median a

o Blacks is 31.4 years compared with 38.2 years or the White populati

and 36.7 years or the total population. Compared with the older Wh

population, larger proportions o Blacks will be entering the workor

or the frst time or will be moving up rom entry-level jobs. For examp30.9 percent o Blacks are 15 to 34 years old, compared with 26.6 perce

o Whites and 27.4 percent o the total population. This will provide

extra push to the groups overall buying power.

Conversely, smaller proportions o Blacks have reached their care

pinnacles, where the annual percentage increases in wage and salar

oten begin to decelerate, or are o traditional retirement age. In 20

only 8.6 percent o Blacks were 65 years and older, compared with 13

percent o Whites and 12.7 percent o the total population.

Because the Black population is so much younger, Arican-Americ

consumers increasingly are setting trends or youth (and young adul

o every background. This isnt surprising, given that 29.4 percent o t

Black population is younger than 18, compared with 23.3 percent o tWhite population and 24.6 percent o the total population.

This youthul profle does have its downside. Young people, regar

less o race, are more exposed to job losses in economic downturns.

this regard, Black buying power is vulnerable to the eects o recessio

but over time the above-average growth o Black buying power h

more than compensated or that cyclical exposure.

The Opportunity:As Arican Americans share o the nations tobuying power expands, business-to-consumer companies will bene

rom devoting more resources toward developing and marketing produ

that meet the needs and match the preerences o Black consumers.

APRIL 23, 20

BUYING POWERAssumption: More negatively aected by the recession than other population segmentsBlack buying power has been fattened.

BLACK SPENDING POWER 2012: $1.038 TRILLION (+73% SINCE 2000)

iStockphoto.c

om/WDStock


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SUPPLEMENT TO ADVERTISING A

APRIL 23, 2012

While marketers have been busy creating strategies to mitigatehe effects of the recent economic downturn, theyve missed oppor-

unities in the African-American market. A closer look at spending

tatistics during this period might have helped some brands ride outhe recession in better shape.

The Bureau of Labor Statistics annually surveys more than

5,000 households nationwide and estimates total consumer spend-

ng by age, race and other demographic characteristics. In its most

ecent survey, with data for 2010, a comparison of Black household

pending over the past five and 10 years shows that Black house-

holds increased their real inflation-adjusted spending since 2005

despite the recession. Their increase in consumer expenditures out-

paced the average for all households both over the past five years and

he past 10 years.

The 2010 BLS survey estimated that 14.8 million Black consumer

units, or households, spent an average of $35,863 each, or a total of$531.5 billion, on a variety of consumer goods and services. Even

after adjusting for inflation over the past five years, that figure was

percent above the total of $515.1 billion for 2005. It was also 12.7

percent above the $471.6 billion in 2000, expressed in 2010 dollars.

By comparison, all U.S. household spending as measured in those

BLS surveys rose 10.6 percent from 2000 to 2010 in constant 2010

dollars, but actually declined 4.2 percent from 2005 to 2010 in con-

tant 2010 dollars.

Black spending exceeds general market in key categories

The BLS 2010 Consumer Expenditure Survey shows that after-tax

ncome of Black consumer units (CUs) was on average equal to 75percent of the after-tax income of all U.S. households, and their

overall spending was, as expected, 75 percent of that for all U.S.

households. But in several categories, Black household spending ac-

ounted for far more than 75 percent.

The Opportunity:Despite lower income levels, Black households spend

nearly as much as the average U.S. household for certain products and

ervices, and in some cases even more. Marketers should target this con-

umer segment understanding that they spend disproportionately to

heir incomes and comparatively to the spending levels of other popula-

ion segments.

SPENDING TRENDS

AVERAGE ANNUAL BLACK CUS NON-BLACK CUS BLACK CUS AS A %EXPENDITURES OF NON-BLACK CUS

Personal CareProducts/Services

525 590 89.0

Housing 14,102 16,899 83.4

Apparel andRelated Services 1,429 1,737 82.3

Cash Contributions 1,334 1,675 79.6

Food 4,796 6,314 76.0

Transportation 5,724 7,950 72.0

Miscellaneous 549 891 61.6

Tobacco Products,

Smoking Supplies

231 380 60.8

Personal Insuranceand Pensions 3,401 5,647 60.2

Health Care 1,734 3,355 51.7

Entertainment 1,352 2,665 50.7

Alcoholic Beverages 203 441 46.0

Gifts for Peoplein Other Households 490 1,105 44.3

Reading 41 108 38.0

Education 441 $1,163 37.9

Personal Taxes 407 1,959 20.8

SUMMARY OF HOUSEHOLD EXPENDITURES BY CATEGORY,

BLACK CONSUMER UNITS VS. NON-BLACK CONSUMER UNITS 20

Source: Bureau of Labor Statistics, 2010 Consumer Expenditure Surveys;New Strategist Publications.

Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2010.

Assumption: Black household spending dropped during the recession at the same rateas the general market.

BLACK CONSUMER UNIT EXPENDITURES AS A PERCENTAGE OFNON-BLACK EXPENDITURES, 2010

Phone services (landline and cellular) ............................................... 10

Auto insurance ................................................................................... 9

Personal care products and services ................................................... 8

Food at home ...................................................................................... 8

Apparel ............................................................................................... 8

Childrens (age 215) apparel ............................................................. 9

Footwear .......................................................................................... 10

Charitable contributions ..................................................................... 8

CATEGORY % OF NON-BLACK SPENDING

525

14,102

1,429

1,334

4,796

5,724

549

231

3,401

1,734

1,352

203

490

41

441

407

590

16,899

1,737

1,675

6,314

7,950

891

380

5,647

3,355

2,665

441

1,105

108

$1,163

1,959

89.0

83.4

82.3

79.6

76.0

72.0

61.6

60.8

60.2

51.7

50.7

46.0

44.3

38.0

37.9

20.8


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APRIL 23, 201

Marketers have long held that the auent in the United Statesre more like each other than they are like members o their own eth-

nic groups. From that, they reason that upper-class ($100,000-plus

ncome) Blacks, who make up about 10 percent o the Black popula-

ion, will adhere to the values o their socioeconomic group rather than

hose o their ethnic heritage.

According to data rom the 2011 Mendelsohn Auent Survey, con-

ducted by Ipsos MediaCT, 74 percent o Black auents agreed that my

ultural or ethnic heritage is a very important part o my lie, a sharp

ontrast to the 34 percent o White auents.

Black culture in full effect

Family and religion are pillars o Black culture and are quite rele-

vant to Black auents. Being around amily members and enjoying

hem is a high priority or Black auents. Overall, they are an op-

imistic and happy group, which could be a result o their spiritual

grounding.

enjoy spending time with my amily ................................................86%

My amily is my top priority in lie .....................................................82%

am a very happy person.................................................................. 77%

My cultural or ethnic heritage is a very important part o my lie ........ 74%

am a spiritual person ...................................................................... 73%

am an optimistic person ................................................................. 72%

Being the boss

While they think o themselves as creative people, Black auents are

reative in a disciplined way; they work hard at what they know. That

ort, along with out-o-the-box thinking, makes more than hal o

Black auents sure o themselves as leaders and helpers.

think o mysel as a creative person ................................................59%

spend time researching products and services beore purchasing...........57%

tend to take the lead in decision making .........................................53%

like to oer advice to others ........................................................... 53%

consider mysel an opinion leader ...................................................50%

ts all about the Benjamins

While they are satisfed with how well they are doing fnancially, Black

uents keep their noses to the grindstone to make sure they keep do-

ing well now and or the uture. While they have adjusted their spend

ing because o recent economic conditions, Black auents haven

stopped rewarding themselves or their accomplishments.

I am actively involved in the management o my personal fnances .... 79%

A person is responsible or his/her fnancial security in retirement ...... 68%

Sometimes I treat mysel to something, even though I dont need it... 67%

Though the recession is over, I am still spending cautiously................ 62%

I still have some money let over or a little indulgence ......................60%

I am very worried about the state o the economy .............................60%

I am satisfed with my standard o living ...........................................56%

It is important to me that I make as much money as possible ............ 55%

Image and style

One way Black auents reward themselves is by purchasing qualit

products. This not only brings them pleasure but also defnes wh

they are. Image and ashion are important or Black auents.

I dress to please mysel, not others....................................................81%

When it comes to quality, I believe you get what you pay or ............. 80%

Good value or the money is more important than price ....................70%

Being well dressed is important to me ..............................................64%

My ashion represents who I am as a person .....................................58%

Owning good quality things brings me enjoyment .............................58%

I have an excellent sense o style ......................................................53%

Base: 413 Black adults with household incomes o $100,000 or more.

Mendelsohn Auent Survey, conducted by Ipsos MediaCT.

Insights

In their quest to defne themselves by their style and image, to cel

ebrate lie and to live a spiritual existence, Black auents afrm thei

connection to the basic tenets o Arican-American culture despit

their economic privileges. They are Black frst and auent second.

The Opportunity:Making a powerul connection with this auen

market should include the use o Black cultural flters. Those who continu

to believe that Black auents will respond to general-market advertisin

just like everybody else will miss a key opportunity to engage brand

loyal consumers who enjoy spending substantial amounts o money o

quality products and rewarding themselves and their amilies.

BLACK AFFLUENTSAssumption: Afuent Blacks will adhere to the values o their socioeconomic grouprather than those o their ethnic heritage.


9/31

Since the release of the 2010 U.S. census, much has been writtenabout the growing numbers of Hispanics and Asians. But what has got-

en lost in the story about Americas multicultural makeup is that the

African-American segment remains an important growth opportunity

or many marketers. A closer analysis of household formation revealsnsights that marketers should consider during planning season.

Household numbers

According to the 2010 census there are 82.3 million non-Hispanic

White households; 14.1 million Black households; 13.5 million His-

panic households; and 4.6 million Asian households out of a total

16.7 million households nationwide. This 2010 census count of

households by race reveals two important considerations about

African-American consumers comparison growth and the absolute

numbers vs. other multicultural segments:

Black household growth has outpaced that of total households in

he U.S. in the last decade (17 percent and 11 percent, respectively). Although Hispanics are the largest minority population segment,

here are actually more African-American households in the U.S.

han any other minority group.

For marketers of household products, goods and services, this

uggests that the African-American market is a growth segment

worth investing in. In that same vein, it is just as interesting how the

omposition of Black households is evolving in terms of size and

ormation.

Household size

While Black households became smaller over the past decade, they

are still slightly larger than the average for total households.Average household size among African Americans was 2.74, ac-

ording to the 2000 census, compared with 2.63 in the 2010 census.

For total households, the numbers were 2.59 in 2000 and 2.58 in 2010.

Some reasons for smaller household size over the past decade

have been the growth in Black married households and the decline

n Black married couples with children. These changes in household

omposition reveal trends that marketers of household products,

urnishings and appliances would be wise to note.

Household formation

A greater percentage of Black households are in their peak household

formation and spending years than are all U.S. households. A so

44 percent of Black households are either Millennials or Gen Xe

compared with 38 percent of all households. The same percentageseach (40 percent) are Baby Boomers, where income peaks. They re

resent a strong block of prime shoppers for various types of produc

The Opportunity:Understanding the census data on African-Am

ican household size, composition and formation outlined above allo

savvy marketers to see trends and growth opportunities as they evolve.

The smaller household size and increase in households without ch

dren translate into more per capita income per household and grea

amounts of discretionary income for goods and services.

The large number of Black households reflects a portrait of evolutio

providing marketers with a pathway toward growth.

APRIL 23, 2012

HOT HOUSEHOLDS

Source: U.S. Census Bureau, 2010 census.

CHARACTERISTICS OF U.S. HOUSEHOLDS, 20002010

Assumption: Black population trends do not represent growth opportunities.

BLACK HOUSEHOLDS ALL U.S. HOUSEHOLD

#HHLDS %TOTAL %CHANGE %TOTAL %CHANG

All households 14.1m 100% 17% 100% 11%

Married w/ children


10/310 APRIL 23, 20

be more inclusive and view race as less divisive. This trend towa

inclusiveness is the reason more biracial Millennials are acknow

edging all acets o their identity.

At the same time, similarities exist among Arican America

across generational lines as well because some values speak to ra

more powerully than to age. The generational distinctions amainly the degree to which they hold these values.

Black consumers o all generations have more confdence in

the economy

Black consumers have been more condent about the econom

since the 2008 presidential election. At the time o the election, Bla

Millennials were the most condent generation. Fueled by Bara

Obamas message o hope and change, they believed the electi

meant that race no longer mattered.

Older generations, especially those o the Civil Rights era, re

ized that President Obama was an ally and a champion who ga

The shared connection o Black history, culture and experienceorms a uniying bond that spans all age groups among Arican Amer-

cans, but major social, political, economic and technological changeshave impacted the worldview o each generation o Blacks, and mar-

keting messages must refect this to be eective.

The pre- and post-Civil Rights mind-set

Some generational dierences transcend race. For example, all Mil-

ennials grew up in a more technologically advanced society com-

pared with their Baby Boomer parents. They were exposed to an

ver-expanding variety o media at a much earlier age and to a sig-

nicantly greater degree. Among Arican Americans, there is also a

notable dierence in viewpoint on race and on society at large be-

ween those born beore the Civil Rights Movement (prior to 1964)

and those born ater. Black Boomers are the last generation o A-ican Americans to have personally experienced legal segregation.

By the time Black Gen Xers reached school age, many o the gains

o the Civil Rights Movement were in place. School segregation was

virtually over. There were Black mayors and members o Congress,

and Black college enrollment was climbing. Post-Civil Rights Black

women have also beneted rom the gains made by the womens

movement, such as increased access to managerial and executive-

evel positions in the corporate world.

Growing up in an era o reedom rom the oppressive impact o

im Crow laws in the South or the more subtle segregation and at-

itudes o the Northeast and Midwest granted both Black Gen Xers

and Millennials a level o inclusion and access previously unheard o,and gave them a dierent view o their place in the world as a result.

Author and researcher Pepper Miller highlights signicant dier-

nces in attitudes and belies between pre- and post-Civil Rights Ari-

an Americans (see table).

Both generation and race provide important insights

Generational dierences in attitudes and belies among Arican

Americans can be as signicant as the variations o acculturation in

he Hispanic market. For example, while pre-Civil Rights era Arican

Americans tend to be more race-ocused in their interpretation o

world and national events, the post-Civil Rights generation tends to

GENERATION GAPS

Politically aware; largest group o

political activists

Moderate to high desire or instant

gratifcation

Race and racism very top o mind

Strongly against Arican-American

stereotypes in the media

All-Black cast very important, very top

o mind

Involvement in political process

becoming more importantcelebr

involvement may be a actor

Highest propensity or instant grati

fcation

Higher propensity or inclusion; larg

est segment o sel-described bi rac

Most likely to fnd some Arican-

American stereotypes humorous or

nonthreatening

All-Black cast important but least t

o mind

Pre-Civil Rights(born 19401960)

High hopes or another Dr. King

Maintaining culture is most important

Post-Civil Rights(born 1960present)

Dr. Martin Luther King Jr., who?

Culture is important; liestyle is also

important

Assumption:The African-American population is homogeneous, and age does notmatter in marketing to these consumers.


11/31

hem hope that things would get better. Their confidence has grown

based on events outside themselves, such as the resurgence of the

auto industry and new health care laws.

By 2012, Black Millennials had the lowest level of confidenceamong Blacks. Now faced with high unemployment, student loan

debt and a divided political environment, some Black Millennials have

become discouraged. While job prospects for many are bleak, disap-

pointment among Millennials may be somewhat reflective of unreal-

stic (or uninformed) expectations of the presidents ability to effect

hange rather than disillusionment with the man himself.

Although Black Millennials have the lowest level of confidence

among Black generations, it is still significantly higher than that of

he general population.

Black Millennials still plan to spend

Black consumers are more likely to make big-ticket expenditures inhe next six months compared with non-Black consumers regardless

of generation. Black Millennials and Gen Xers are most likely to plan

a major purchase within the next six months, even though Millennials

had the lowest level of consumer confidence. Higher purchase intent

of big-ticket household items among the younger cohorts is attribut-

able to first-time household formation, while lower levels of purchase

ntent among Black Boomers reflects the fact that they already own

urniture, appliances, electronics and computers.

Aspiration

Black adults 18 and older are more likely to view aspiring to get

ahead and having material possessions, a lot of money as very im-

APRIL 23, 2012

CONFIDENCE AMONG CONSUMERS, 2008 VS. 2012

ource: BIGinsight Monthly Consumer Survey, November 2008 and January 2012.

NOVEMBER 2008 JANUARY 2012

BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS

Generation Y63.9 38.2 54.2 39.3(Millennials)

Generation X 47.2 25.1 60.0 32.4

Baby Boomers 41.8 16.7 54.9 25.3

Silent Generation 29.6 16.1 58.7 25.9

MAJOR PURCHASE PLANS IN THE NEXT 6 MONTHS (PERCENTAGE BY GENERATION)

ource: BIGinsight Monthly Consumer Survey, January 2012.

portant compared with non-Black adults regardless of age group. A

cording to research conducted by GfK MRI in 2011, although mo

Black Millennials than Black Boomers value aspiring to get ahead

Millennials values are actually more in line with non-Blacks in th

own generation (a 3.7 percentage point difference). By contrast, Bla

Boomers believe that aspiring to get ahead is very important at a s

nificantly higher rate than non-Black Boomers (14.4 percentage po

difference and 13.3 percentage points for the Silent Generation).

Despite these differences, messages targeted to the African-Ame

can market that focus on aspirational themes will be successful acro

all generations.

In general, however, it is important for programmers and markers to put some thought into messages intended to appeal to the ent

segment. While an all-Black cast in a TV show or commercial may

important to Boomers, a Black cast alone probably wont be enou

to engage a Gen Xer or Millennial. A commercial or program that u

race-based humor may not raise the eyebrows of most Black Gen X

but could infuriate Black Boomers.

The opportunity:Black attitudes and beliefs vary widely between

generations in many cases. Although Black audiences share cultural a

historical insights, it is vital when targeting African Americans to dete

mine if generational differences in attitude could impact the effectiven

of advertising messages or programming appeal.

COMPUTER MOBILE DEVICE TELEVISION FURNITURE HOME APPLIANCES

BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULTS BLACK ADULTS ALL ADULT

Generation Y 27.4 21.8 24.2 14.4 23.5 15.6 22.1 14.6 16.2 10.1(Millennials)

Generation X 28.4 20.0 15.7 10.2 22.9 14.8 25.4 15.8 16.5 10.8

Baby Boomers 18.1 12.5 9.0 4.0 13.8 10.5 12.2 8.5 9.9 6.6

Silent Generation 13.7 9.3 6.8 1.4 9.1 6.2 14.8 4.6 6.9 4.5

BASE: 52,027 adults, 18+, weighted to population (000).Source: 2011 GfK Roper Values.

BABY SILENTMILLENNIALS GENERATION X BOOMERS GENERATIO

ASPIRATIONAL VALUES OF ADULTS 18+, BLACK VS. NON-BLACK, 2011

COMPARISON OF VALUES RANKED VERY IMPORTANT

NON- NON- NON- NONBLACK BLACK BLACK BLACK BLACK BLACK BLACK BLAC

% % % % % % % %

Aspiring to getahead

Having materialpossessions,a lot of money

NON-BLACK BLACK

% %

NON-BLACK BLACK

% %

NON-BLACK BLACK

% %

NONBLACK BLAC

% %

73.0 69.3 68.1 62.3 65.1 50.7 51.8 38.

49.5 38.9 45.6 37.1 44.8 34.0 38.1 27.



12/31

2 APRIL 23, 20

Many marketers have consistently thought o the Black consumeras ercely quality-conscious and subsequently brand loyal. From this,

heyve reasoned that i a brand could make inroads into the segment,

hen it could count on having customers or lie. On the other hand,Arican Americans also have been acknowledged as early adopters o

brands and trends in many product categories. Add to that the nd-

ngs that the Black consumer is price-conscious, and the resulting

quation produces a conundrum: How can a consumer be loyal to

quality brands yet also be an early adopter when something new and

nteresting comes along, all the while looking or the best deal? What

xactly is the Black consumer market loyal to?

According to researcher and author Pepper Miller, president o the

Hunter-Miller Group, Arican Americans have identity-shaping rela-

ionships with brands. In Ipsos Mendelsohns 2011 study about afu-

nts, 58 percent o afuent Blacks agreed with the statement, My ash-

on represents who I am as a person. Similarly, in the 2011 AmericanPantry Study: The New Rules o the Shopping Game, a CPG study by

Deloitte and Harrison Group, 53 percent o Blacks said brands can say

a lot about who they are (vs. 39 percent o total shoppers). Even during

he recession, when consumers were tightening their belts, the Eects

o the Recession on Brand Loyalty and Buy-Down Behavior study

by comScore (October 2011) ound 54 percent o Arican-American

women saying they buy the brand that I want most, compared with

42 percent o White women.

Brand names equal quality

These higher levels o anity with brands are seen across all Black

generations when compared with non-Blacks. GK MRI data revealhat Black consumers are 24 percent more likely than all consumers

o agree that I would pay extra or a product that is consistent with

he image I want to convey, and that Blacks are 17 percent more likely

o agree that Brand name is the best indication o quality. For many

Blacks, brand names not only ensure a higher level o quality but also

make a statement about the person who buys them. Black consumers

are invested in quality brands that represent the type o image they

want to project to the world. In other words, Black consumers are not

oyal to a brand per se, but rather to the image o a brand that they

nd compatible; thus, it is the relationship that inspires their loyalty.

The Burrell: Project 40 study conducted by the Futures Co. notes,

Arican-American values uel purchase decisions. Black consum

look or products that strengthen and refect their core cultural valu

pride, legacy, perseverance, originality, independence, sel-esteem, c

ebration o lie and responsibility.

Blacks as trendsetters

So what happens when another brand comes along with an ima

that is more compatible with a Black consumers sel-image? In t

2005 book Whats Black About It? Insights to Increase Your Share

a Changing Arican-American Market, co-authors Pepper Miller a

the late Herb Kemp review Black consumer market data rom a nu

ber o categories and conclude, Arican Americans are more lik

than Whites to be among the rst to set new trends and to considthemselves on the cutting edge. This clearly indicates that market

should not take Black consumer loyalty or granted, as Arican Ame

cans are inclined to adopt new trends and switch brands.

According to MRI, the Black consumer market is 36 percent mo

likely than the general consumer market to change brands oten

the sake o variety and novelty, perhaps wanting to align with an im

age that better refects who they are. For example, an Ipsos OTX stu

commissioned by Google with GlobalHue, called Five Truths o t

Digital Arican-American Consumer, notes, Arican Americans

early adopters [o digital] and are more likely to watch video onli

and to access online content via smartphones and other alternat

LOYALTY LIMITSAssumption: If a brand can make inroads into the segment, then it can count on havingthese customers for life.


13/31


14/31

Smart marketers make sure their brands are available where con-umers are, so when the customer moves, the brands follow. The 2010

ensus confirms that multicultural segments are on the move, and the

Black consumer segment is making two big shifts.

First move: A return to the South

Perhaps the largest internal migration in American history was the

arly 20th century movement of African Americans from the rural

South to the urban Northeast and Midwest. The 2010 Census con-

firms that in many respects that migration has been reversing. Over

he past decade, Blacks have been moving from the urban Northeast

and Midwest to the suburban South and West.

Black households have been increasing far faster in the South and

lightly faster in the West than in the other two regions. Nationwide

here were 2 million more Black households in 2010 compared with

2000, and two-thirds of those new Black households (1.4 million)were created in the South.

This movement of Black households to the South is a strong indi-

ator of both present and future income growth for these households.ob growth is higher in the metropolitan areas of Southern states, and

he cost of living is less than in the Northeast and Midwest.

Second move: From urban to suburban

ust as important as the regions Blacks have moved to in the past de-

ade is that not all Black consumer growth is occurring in metropoli-

an areas. Importantly, two-thirds (67 percent) of that metropolitan

growth in Black households and adults occurred in the suburbs.

This movement to the suburbs by Black households is significant

or a number of reasons. The most important is that a typical sub-

urban Black familys median income is 41 percent higher than that

of a Black family living in the city and 76 percent higher than f

a typical Black family living outside a metro area, according to t2010 American Community Survey.

A second reason this is significant is that in the suburbs, a majo

ity (52 percent) of Black households own their homes, while in cit

just 36 percent are homeowners. Between 2000 and 2010, Black hom

owners in suburban areas rose 35 percent compared with a 4 perce

increase in cities and a 15 percent drop in nonmetro areas.

A third reason is that suburban Black households are more likely

be married couples, the vast majority with two income earners. In m

ro suburban areas, 36 percent of Black households are married coup

compared with 23 percent in cities and 29 percent in nonmetro are

The Opportunity:As Black consumers trade urban for suburban, topens opportunities for marketers in a number of categories.

Transportation: Many urban dwellers traditionally did not have c

and instead used public transportation. In suburban surroundings, a c

is a necessity.

Home furnishings/appliances/electronics: The move into new hom

or even apartments larger than their previous urban dwellings establish

a need for furniture, appliances and, of course, electronics.

Supermarkets/food warehouses/clubs: Consumers living in urb

areas typically do not have access to large supermarkets and food clu

The shift to the suburbs allows Black consumers the opportunity to shop

these stores and subsequently buy more.

TRADING PLACES

4 APRIL 23, 20

Change

2000 to 2010 # mm % # mm % # mm %

Black adults 1.5m +12.0% 3.0m +38.3% 0.2m 6.0%

Black hhlds 0.7m +10.9% 1.5m +37.7% 0.1m 6.5%

METRO CITIES METRO SUBURBS NON-METRO AREA

Number of Black adults 19.48 million 15.21 million 4.24 million

(2010 Census)

Number of

Black households 7.37 million 5.30 million 1.45 million(2010 Census)

MOVES BY BLACK CONSUMERS 2000 TO 2010

Assumption: Blacks are only located in urban areas, so marketers should concentratetheir efforts there.

Source: 2000 and 2010 Census.

mm

3.0m +38.3%

1.5m +37.7%

CHANGES IN BLACK HOUSEHOLDS BY REGION, 20002010OTAL BLACK HOUSEHOLDS IN THE U.S.: 14.13 MILLION

ource: 2000 and 2010 Census.

NORTHEAST MIDWEST SOUTH WEST

Hhlds. millions 2.33 2.57 7.98 1.25

Number (000)

and increase 227 10.8% 285 12.5% 1,400 21.3% 163 15.1%

2.33

227 10.8%

7.98

1,400 21.3%


15/31


U.S. Metro Areas With the Largest Black Populations

The list of the top metro areas with the largest Black populations

over time shows the reascendance of the South. New York continued

o hold its top ranking due to its long history as a magnet for Blacks,

despite Black out-migration in recent decades.

For the first time, metropolitan Atlanta registers the countrysecond-largest Black population, up from No. 4 in 2000 and No. 7 in

990. This shift is as symbolic as it is real, since Chicago was the cel-

brated destination of Southern Blacks for much of the great migra-

ion period early in the last century. Miami, Houston and Dallas also

APRIL 23, 2012

KEY MARKETS

moved up the rank in 2000.

Shifts in the metro areas experiencing the largest gains in Bla

population also point southward. Atlanta holds the top spot in bo

decades, gaining more Blacks from 2000 to 2010 than the secon

and third-ranking metro areas (Dallas and Houston) combined.

three New South metro areas underscore the draw of economicaprosperous areas. Charlotte, N.C., and Orlando, Fla., also mov

into the top seven metro areas for Black population gains. Minn

apolis-St. Paul ranks No. 9, partly by virtue of its role as a growi

resettlement and population center for immigrant Somalis.

METRO AREAS WITH THE LARGEST BLACK POPULATIONS INCREASE OF BLACK POPULATIONS IN METRO AREAS

1 1 Atlanta ........................................................473,49

2 5 Dallas ...........................................................233,89

3 7 Houston .......................................................214,92

4 3 Miami .........................................................191,65

5 4 Washington, D.C. ................. .................. .......155,648

6 15 Charlotte .....................................................121,52

7 11 Orlando ........................................................100,60

8 8 Philadelphia ..................................................93,16

9 16 Minneapolis ..................................................83,46

10 28 Phoenix .........................................................80,31

RANK RANKIN 2010 IN 2000 METRO AREA BLACKS 2010

RANK RANKIN 2000S IN 1990 METRO AREA TOTAL CHANGE, 2000-201

ource: Brookings Institute. Source: Brookings Institute.

2 5 Dallas ................ .................. .................. ....... 33,89

3 Miami ......................................................... ,

15 Charlotte ..................................................... ,

8 Philadelphia .................................................. ,

ource: UGA Selig Center.

TOTAL SHARE OF BLACK BUYING POWER IN 2012ARGEST U.S. MARKETS BY BLACK SPENDING POWER

1 New York .............................................. .......................... ....$94.9

2 Texas ....................................................................................$85.7

3 California .............................................................................$76.7

4 Florida .................................................................................$74.4

5 Georgia ...............................................................................$73.4

6 Maryland .............................................................................$63.4

7 North Carolina ....................................................................$48.1

8 Illinois .................................................................................$46.6

9 Virginia ...............................................................................$44.9

10 New Jersey ..........................................................................$40.0

RANK STATE DOLLARS (IN BILLIONS)

Texas ....................................................................................$85.7

4 Florida .................................................................................$74.4

Maryland .............................................................................$63.4

Illinois .................................................................................$46.6

10 New Jersey ..........................................................................$40.0

District of Columbia ..............................................................................26.1

Mississippi ............................................................................................23.5

Maryland ..............................................................................................23.1

Georgia ................................................................................................21.8

Louisiana ..............................................................................................19.7

South Carolina ......................................................................................17.7

Alabama ...............................................................................................17.4

Delaware ..............................................................................................15.3

North Carolina ......................................................................................14.6

Virginia .................................................................................................12.9

STATE PERCENTAGE

Source: UGA Selig Center.

Mississippi ............................................................................................23.5

Georgia ................................................................................................21.8

South Carolina ......................................................................................17.7

Delaware ..............................................................................................15.3

Virginia .................................................................................................12.9

10 28 Phoenix ......................................................... ,

1 1 New York .................. ................... ........... 3,044,096

2 4 Atlanta .....................................................1,679,979

3 2 Chicago....................................................1,613,644

4 3 Washington, D.C .....................................1,409,473

5 5 Philadelphia ............................................1,204,303

6 8 Miami .....................................................1,096,536

7 9 Houston .................. .................. .................. 998,883

8 6 Detroit ................. .................. ................... .. 972,689

9 10 Dallas .................. .................. ................... .. 941,695

10 7 Los Angeles .................. ................... ........... 859,086

The widespread African-American market

One characteristic that sets the African-American consumer market

apart from the Hispanic and Asian markets is that it is not concentrat-

d in a handful of states. This vibrant consumer market is widespread,

and therefore is an attractive customer segment in many states.

In 2012, of 10 states with the largest African-American mark

(listed above), Maryland, North Carolina and Georgia are the on

ones that did not rank among the top 10 markets for all consume


16/31


17/31


8 April 23, 20

s America today a melting pot, where dierences are blendednto one homogeneous soup, or a tossed salad, where dierent veg-

tables maintain their individual color, avor and texture, but coex-

st deliciously? Thats at the core o the current debate over a mul-

icultural vs. cross-cultural marketing-communications approach.But when you compare these conicting segmentation strategies,

you fnd the debate really comes down to the signifcance o culture

as a major demographic actor and a driver o decision making:

n The multicultural approach distinguishes consumer segments by

ultural actors in addition to other segmentation actors. It sug-

gests that cultural dierences aect consumer decision making and

onsumption behavior, so the marketing stimulus should be de-

igned to leverage cultural insights to eectively motivate consumer

behavior.

n The cross-cultural strategy suggests combining cultures within a

egment, as opposed to separating by culture. It increases the diver-

ity within segments, reduces the number o segments and suggestshat leveraging unique cultural insights is not as eective in motivat-

ng consumers.

For advertisers, the cross-cultural strategy gives permission to

adopt a cost-efcient, one-size-fts-all marketing-communications

approach. But while it might seem to oer better reach metrics, it

wont be eective or connecting with targets whose identities are

losely tied to a specifc culture or race; they may even view such

an approach as personally diminishing and politically incorrect. A-

ican Americans are clearly this kind o target group, as race and

ulture defne who they are and strongly aect their behavior. Con-

rary to the idealized notion that we should aspire to a more ho-

mogeneous society, a new study by Burrell Communications showsArican Americans remain culturally distinct at the deepest, most

mportant levels and this distinction aects how they view the

worldwho they trustwhat organizations they belong towhat

hey buy, read, record, save, sur, connect with.

Can you blend the Black?

Arican Americans bear a visible dierence that loudly announces a

unique history, experience and cultural behavior. The U.S. govern-

ment recognized this proound distinction when President George

W. Bush signed into law the establishment o a National Museum

o Arican American History and Culture. Black culture cannot be

blended with other cultures because o the massive distinctions ro

the American majority. Arican Americans view the world throug

historical and cultural lens that reinorces them as culturally di

ent citizens and consumers.

With dierences that are visible, historical, social, geographic aexperiential, the insights that motivate and aect behavior are al

distinctive. Considering the magnitude o these dierences, cro

cultural attempts to blend the Black are at best challenging and

worst utile.

These additional Burrell: Project 40 fndings reinorce the d

tinction o being Black in America:

n 73 percent o Arican Americans age 16 to 24 agree that their ro

and heritage are more important to them now vs. fve years ago.

n 88 percent o Arican Americans agree that discrimination is s

part o their day-to-day lives.

n 85 percent agree that being part o the Black community is e

tremely important to them.Cultural and racial dierences cant be erasedand shouldnt

dismissed by marketers hoping or expedient solutions. With a str

egy segmenting people by culture, advertisers can leverage cultu

insights to create more engaging messaging or any given target.

At the same time, segmentation in marketing does not sugg

that dierent cultures dont interact. The prolieration, popular

and acceptance o dierent cultures in the U.S. are visible in the

creasingly wide range o ethnic eateries, music, popular media a

entertainment.

The growth trends in diverse ood, music, entertainment a

media consumption punctuate increasing cultural dierences

the general population; the more variety, the better. It seems thincreasing desire or and general acceptance o diversity is drivi

growth in these various areas. So why are we debating the impo

tance o culture in marketing segmentation?

The Opportunity:Segmentation is an effective strategy when it

lows the advertiser to have a more insightful, more relevant, mo

meaningful connection to target consumers. For certain consum

segments, culture is a huge part of their identity. To ignore distin

tive cultures is commensurate with not recognizing those consume

This is the case for African Americans. Culture is too important to

ignored.

THE GREAT DEBATEAssumption: The fewer cultural segments, the better in multicultural marketing.


18/31

Introducing ASPIRE, a new television

network created by legendary athlete

and entrepreneur, Earvin Magic Johnson.

ASPIRE celebrates the African Americanexperience. Its a channel that creates

opportunity for new voices, new vision

and the next generation of ground-breakers

and game-changers.

Our past. Our now. Our next.

This is ASPIRE.

DIFFERENT

STARTSNOW

Comi

ngTo

Telev

ision

Summer20

12


19/31

Never before has reaching the Black consumer been so critical

or marketers. In 2011, advertisers spent $2.114 billion to reach the

African-American audience through targeted media, according to

Nielsen Co., a 4.9 percent increase over 2010 spending.Some companies stand out for their efforts in advertising to the

Black consumer and inspiring confidence and loyaltyincluding

Coca-Cola Co., Ford Motor Co., General Mills, McDonalds Corp.,

Procter & Gamble Co. and State Farm.

On the following pages, top marketers from these leading com-

panies talk about why the African-American market is so important

o their brands. They offer lessons theyve learned about reaching

his key audience, including the value of understanding their cul-

ural touch points and relating to Black consumers specifically. In

addition, they talk about campaigns that have worked and why

and how these efforts have gone on to win over the general market as

well, demonstrating the expanding cultural influence of the African-American audience.

In addition, each consumer category includes a list of the top 10

advertisers by spending to the Black audience in that category, offer-

ng an insight on which companies are working to reach this market.

The Black consumer market is a thriving, growing segmentand

one that spends well for what it wants and needs. Marketers that

heed the advice of the experts have much to gain, as the following

figures demonstrate:

0 APRIL 23, 20

MARKETERINSIGHTS

Total Household Consumer Expenditures ....................................$1,381,480Apparel..............................................................................................65,083

Automotive (Purchases/Repairs) ........................................................84,469

Beverages at Home ..............................................................................8,903

Entertainment ....................................................................................53,925

Food & Beverage at Fast Food Restaurants .........................................40,466

Food at Home ....................................................................................99,915

Insurance .............................................................................................9,141

Personal Care Products & Services......................................................20,501

Transportation..................................................................................230,429

Vehicle Insurance ...............................................................................34,193

CATEGORY SPENDING PER HH

ource: Geoscape Consumer Spending Dynamix.

Apparel..............................................................................................65,083

everages at ome ....................... ......................... .......................... ....8,903

Food & Beverage at Fast Food Restaurants .........................................40,466

Insurance .............................................................................................9,141

Transportation .................................................................................230,429

BLACK HOUSEHOLDS LIFETIME CUMULATIVE SPENDING


20/31


April 23, 2012

AUTOMOTIVE

MARKETER INSIGHTS

Arican Americans have traditionally been an

important source o sales or our truck products

and, more recently, our cars. They overindex on

vehicle purchases, and weve spent incremen-

tal marketing resources to reach out to them.

Weve had an Arican-American agency partner

or more than 20 years.

But theres more to it than that. The Arican-American community has

een a big part o Ford or a long time. Weve been very inclusive as aompany, starting in the 1920s and 30s when we expanded our hourly

workorce and many people moved rom the South to the Midwest to build

nd engineer our products. So the Arican-American market is more than

math to us. Its part o the abric o Ford, part o our DNA. During the fnan-

ial crisis o 200809, many o our competitors walked away rom discrete

dvertising to the Arican-American community, but Ford never wavered.

Our marketing to Arican Americans in recent years has really been in-

ovative; it has tried new things that have since moved into the general

market. Traditionally, Ford has not really ocused on celebrity spokespeople.

But our relationships with Tom Joyner and Steve Harvey have worked a new

muscle or us: Theyre very authentic to the Arican-American audience, and

hats part o the appeal o Ford. Working with them has taught us a lot,nd now were applying those lessons learned in the general market.

The most important tip I can give advertisers is to be authentic. Authen-

city is the currency o eective communications. You need to develop a gen-

ine relationship with the consumer. You cant take a cookie-cutter approach.

hose who have, have ailed miserably.

In the last three or our years whats been dierent about our market-

ng eorts to Arican Americans are the digital and experiential activities. A

ersonal avorite campaign o mine is one we did at the BET Awards last

une. Consumers registered ahead o time and were notifed via Twitter o

special hashtag to use during the ceremony or a chance to win a Ford

ocus. It was crazy popular and showed that we understood how highly en-

gaged the community was with this marquee event and with social med

One o our most popular campaigns with dealers and consumers wa

TV commercial or the new Ford Explorer with comedian Kevin Hart. It w

developed or Arican-American audiences, but [then] we used it or t

general marketit was one o our key ads or the Explorer launch.

Our new launch o Ford Escape had initially not been part o the Arica

American marketing mix; then we decided to add Arican-American cultutouch points such as the BET Awards, the Essence Music Festival and t

Steve Harvey Hoodie Awards. Everything we do with our agency now go

through the flter o being culturally relevant.

We use a number o third-party resources to measure the eectiv

ness o campaigns and ROI, and we have a Ford Arican-American quarte

tracking study with consumers. Whats more important, though, is our su

port or historically Black colleges and universities and or Steve Harve

Hoodie Awards, now in its 10th year o recognizing neighborhood lead

across the United States.

Its that kind o handshake, not the graph or the data, that I care abo

Its what makes Ford dierent.

Leading automotive advertisers

spending to BLack consumers (using targeted media)

General Motors Corp. . .............................................$19,206.344

Fiat ..........................................................................$17,734.568

Toyota Motor Corp. .................................................$16,224.727

Ford Motor Co. ........................................................$15,104.724

Nissan Motor Co. ......................................................$6,844.588

Hyundai Motor Co. .....................................................$4,212.570

Kia Motors Corp. .......................................................$3,343.556

Bayerische Motoren Werke AG ..................................$2,369.749Honda Motor Co. .......................................................$2,252.698

Volkswagen AG .........................................................$1,716.044

Source: The Nielsen Co.

Bl lly l by l w x x (27.4 ) ll l 18 l (16 ). Big

Parent ComPany 2011 $(000J Fly

Group VP-Marketing, Sales & Service

Ford Motor Co.

Lessons From the Leaders: Ford


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2 APRIL 23, 20

FOOD

MARKETER INSIGHTS

Its hard to imagine the American cultural land-

scape without the inuence and impact o A-

rican Americans. They represent all the iconic

cultural markers o our society: business, music,

entertainment, ashion, sports, government,

education. In every aspect theyre seen as cul-

ural thought leaders.

Marketing to Arican Americans will only increase because demograph-

cs show that they continue to grow as part o the American mosaic. Andheir inuence continues to grow, too. We want to partner with them as

market leaders.

Data show that Arican Americans are incredibly brand loyalmuch

more so than the general marketand they place a high value on brands.

hey use brands more as a badge than other market segments.

We were doing dedicated Arican-American market ads or Cheerios

when I managed that brand some 15 years ago. We did a amous spot,

Quiz, where an Arican-American kindergartner was learning the state

apitals with his mom and dad. We started out thinking it would be a tar-

eted ad but tried it in the general market at the same time, and it proved

o be a great spot or the entire brand. It was a unique ft or Cheerios:

imple and undamental. Since then we have been doing dedicated radiond TV or Hamburger Helper and have been very hands-on in the com-

munity and on TV or Honey Nut Cheerios, a brand that has resonated with

Arican Americans.

My advice to marketers seeking to connect with Arican-American con-

umers is to think o them as lead consumers to inuence your market. You

can start to market their ideas to the general market; they can inuen

an entire campaign i you get close to them. Although they represent

percent to 13 percent o consumers, their inuence on consumption canmuch bigger than that. You can do brand campaigns with Arican Ame

cans at their heart that can drive the entire business.

The Yoplait Light Curves spot we did with Burrell Communicatio

that targeted Arican-American women was rooted in cultural perspectiv

it was less about being an ideal size and more about celebrating me and

unique inner and outer beauty. It also did well in the general market. W

doesnt want that kind o personal afrmation?

Burrell also helped us launch Pillsbury Grands! Biscuit Sandwiches w

Arican-American consumers as the brand champions who could inuen

the general market. The campaign eatured custom music by gospel gro

Mary Mary and a lot o digital and social media aspects, including a s

prise event at Chicagos Union Station, integrations on Wendy Williamin-store activities and an activation at Steve Harveys Hoodie Awards, wh

recognizes businesses and proessionals across the nation that serve th

communities.

Sometimes we have very specifc campaigns within broader progra

like Box Tops or Education to target the Arican-American community, su

as our recent Education Town Hall at Morehouse College in Atlanta, host

by Steve Harvey and Susan L. Taylor.

We believe that i you root yoursel in the Arican-American culture a

understand and value those rituals, customs and institutions, you can u

that knowledge to help tell your brand story and engage consumers.

We do metrics, as most big advertisers do. But i youre close to t

community, especially with social media, you see comments about yowork show up right away i its relevant and it resonates. Even beore d

tal and social media, with Cheerios Quiz spot, we immediately hea

Arican-American key inuencers mention how afrmative and positive

was. Besides the numbers, that told us it was a good ft or the brand. W

knew it was working.

Black a m likly c a fz f ba a ba I u(50 pc) a all aul 18 a l (44.4 pc). BIGiig

Mak Aick

CMO

General Mills

Lessons FroM the LeAders: GenerAL MILLs

We believe that if you root yourself in the African-American culture andunderstand and value those rituals, customs and institutions, you can use thatknowledge to help tell your brand story and engage consumers.


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April 23, 2012

BEVERAGE

MARKETER INSIGHTS

The Coca-Cola Co. has been marketing to Ari-

can Americans since the 1930s. Its amazing to

see the eorts and leadership marketing cam-

paigns that were executed in the 40s and 50s.

From our partnerships with Arican-American

business and entertainment icons to our pres-

nce and support o historically Black colleges and universities, Coca-Cola

Co., and, specically, Brand Coke, has always been about optimism and

onnection, and that has played true in relation to Arican Americans ormany years.

Arican-American consumers are important to us or a variety o rea-

ons. The growth in population trends along with their current contribution

nd uture expected growth across our sparkling and still brand porto-

o make them an important and viable consumer segment. In addition,

Arican-American consumers continue to play a signicant role in dening

merging and pop culture, which is oten adopted by the broader consumer

market. To that end, were always mindul o their infuence and look to

hem or trends, especially or youth and the Millennial consumer.

We like to think o ROI as return on infuence. I your brand is truly

dopted by Arican-American consumers, the trajectory o the brand in ap-

ealing to a broader audience will advance above and beyond any invest-ment you can make in the marketplace.

Our key strategy in reaching Arican-American consumers has been a

wo-pronged approach. The rst prong is breadthidentiying the univer-

al insights and values that connect and resonate with all consumers. The

econd prong is depthbeing very surgical and precise to connect with

Arican-American consumers based on a unique cohort insight or passion.

We call this The And Eectyouve got to go broad and deep to build

dvocacy with consumers.

Were proud o the smartwater campaign we launched eaturing British

ctor and Golden Globe winner Idris Elba. He embodies all the characteris-

cs o the smartwater brand. The eedback and level o consumer engage-

ment have been signicant.

We also launched our Pay It Forward campaign as part o Black His

ry Month. Built on a simple premise, that we all are responsible or adva

ing the next generation, our Pay It Forward campaign provides deserv

youth with an opportunity to experience a summer apprenticeship with

current celebrity or business leader and encourages others to do the sam

We have very disciplined metrics and measurement tools that give insight on whats working and not working. But the best way to know

youre successul is to listen to consumers. I theres a lot o social co

mentary, we listen to thatits real time, and i were not connecting we

able to make adjustments.

Its an exciting time to be in this industry. There have been so ma

shits in the consumer landscape and in consumer thinkingconsum

are much more engaged with brands today. But things are moving so

that just when you think you understand Arican-American consumers, y

dont. You cant be ormulaic when targeting Arican Americans or a

other consumers; you need to relentlessly seek to understand and purs

them. You have to always assume that things are going to change.

Leading ood & beverage advertisers

spending to bLack consumers (using targeted media)

Hershey Co. .............................................................$21,291.060

General Mills ...........................................................$16,003.483

Pepsico Inc. .............................................................$12,573.061

Kraft Foods ..............................................................$10,816.035

Nestl .....................................................................$10,296.800

Procter & Gamble Co. ................................................$9,776.444

Coca-Cola Co. ............................................................$9,187.597

Mars Inc. ...................................................................$8,790.566Kellogg Co. ................................................................$8,352.461

Dr Pepper Snapple Group ..........................................$6,074.247


bl lly l f w (73.9 ) w -bl (56 ). big

Parent ComPany 2011 $(000kly p

Assistant VP-African-American Marketing

Coca-Cola Co.

Lessons rom the Leaders: coca-coLa


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4 APRIL 23, 20

INSURANCE

MARKETER INSIGHTS

State Farm is a 90-year-old company that has

been serving Arican-American consumers or

90 yearsour products and services are de-

signed or all markets. Multicultural consumers

are growing in numbers across the country and

are very important to us. We take pride in having

gents o all ethnicities who make sure customers needs are met in insur-

nce and fnancial services. It helps that our agents are culturally relevant to

he communities they live in and serve: Theyre members o the churches theirustomers attend. Their kids attend the same schools.

The Arican-American community is a very loyal one. I you get an A-

can-American customer, hes likely to stay with you, and his children and

randchildren will do business with you. So its a long-term relationship

were building.

To do that, we try to relate and connect to consumers in the commu-

ities we serve. We align ourselves with the needs and passions o the

ommunity. We sponsored the initiative The 50 Million Pound Challenge,

bout losing weight and getting healthier, and 26 Seconds, about how

ne student drops out o high school every 26 secondsmany o them

n urban areas, which means a lot in Arican-American communities. We

ponsor the Essence Music Festival in New Orleans over the Fourth o July.Currently, our corporate theme is Get to a better state through improve-

ments in health, education and fnanceand thats being put into practice

y our agents in every community.

My advice to advertisers is to know the market and understand the

ultural cues and passion points o the market. But you must be authen-

cpeople will recognize a ake. Customers in every ethnic community

now and see their State Farm agents all the time, so that authenticity is

here or us.

Our 26 Seconds campaign is not directly targeted to Arican Ameri-

ans, but it certainly is resonating with them across TV, print and a large on-

ne presence at 26seconds.com. Since its targeted to high-risk kids in high

school, a lot tend to come rom multicultural communities. When we run t

commercials, we see a great amount o activity on the website; organiz

tions get in touch wanting to be involved and helpthey see this campai

making a dierence and want to get on board. Ace Metrix told us that o

Wake Up commercial or 26 Seconds was the second-best-perormi

ad we rolled out in 2011second only to our Sept. 11 tribute ad, which w

rated best in the insurance category last year.We try to make sure that our message goes beyond any one commun

you might believe its designed to touch on the surace. We may deve

a commercial with Arican-American, Latino, Asian or Caucasian talent th

resonates across dierent groups.

Our State o Nostalgia (Thanks Hank) lie insurance spot eatures

Arican-American husband and wie, but is intended or all audiences a

cultures. The concept o the spot appeals to dierent communities based

their needs, not their ethnicity.

State Farm enjoys a very strong and positive perception among Arica

American consumers, partly because we have served this market lovin

and genuinely with agents in the community or 90 years.


O x o, Bl o (38 ) 31.9 o lily o i ig o wi o-Bl o (28.8 ). BIGiig

LeadInG Insurance and fInancIaL advertIsers

spendInG tO BLack cOnsumers (usInG tarGeted medIa)

State Farm Mutual Automobile Ins. Co. ...................$17,444.926

Berkshire Hathaway .................................................$17,416.279

Allstate Corp. ...........................................................$16,667.888

Nationwide Mutual Insurance Co. ...........................$13,472.113

Progressive Corp. ....................................................$12,410.182

Zurich Financial Services Group ................................$7,504.814

PGC Holding Corp. ....................................................$7,103.813

Wells Fargo & Co. ......................................................$6,891.170JLL Partners ...............................................................$6,758.813

JPMorgan Chase & Co. ..............................................$6,669.077

Parent ComPany 2011 $(000p el

VP-Marketing

State Farm

LessOns frOm the Leaders: state farm


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April 23, 2012

PERSONAL CARE

MARKETER INSIGHTS

At P&G, the African-American consumer is criti-

cal to delivering our growth targets in the U.S.

and therefore globally. Theres a myth that its

hard to grow in developed regions, but if you fo-

cus on the right consumersand African Amer-

icans are one of those groupsyou can grow

n the U.S. Our shares among African Americans are in line with our general

market shares, and thats our ultimate goal: to grow at that same rate.

Some marketers seem to have just discovered that African-American con-umers exist. But Tide has done African American-targeted advertising for

more than 30 years; Pantene, for over a decade; and Gain, pretty much all of

ts product life.

The consumer is at the center of everything we do at P&G, and its no

ifferent with African-American consumers. We take the same approach with

his group as with every consumer segment: Invest in a lot of research and un-

erstand their practices, habits, motivators and needs, and how they evolve.

We take three different approaches to the African-American market.

ometimes we develop African American-exclusive marketing within a big-

icture brand message. Take Pantene and its overall message of healthy hair,

which means different things to an African American, a Hispanic, an Anglo.

antene has developed different products to deliver on that promise, and weave developed different communications and marketing plans to bring cred-

bility to those products.

Sometimes marketing is driven by universal insights, and we focus on a

ig idea across the board: We invest our dollars to reach more consumers in

more places.

Some brands lead with African Americans and make that marketing work

cross the total general market. Certain brand segmentations tend not to be

ased on culture or ethnicity, but on attitudes and behavior. A

Ad Age Supplement 4-24-12 Cab Black Consumer

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