Why Target Multicultural Markets?

The Multicultural Market Wields Tremendous Buying Power

Not only do today's African American, Hispanic and Asian populations show strength in numbers, but these groups are also active consumers with considerable buying power.

Total minority buying power is estimated at $1.3 trillion or 18.5 percent of all U.S. buying power. The 102.8 percent increase in minority buying power since 1990 far outpaces the 67.4 percent increase for the White population during the same time period.

Minority Buying Power by Race/Hispanic Origin

			1990 Buying Power ($billion)		2001 Buying Power ($billion)		1990-2001 Percent Change		1990 Market Share		2001 Market Share
	Total Minority1		$647.4		$1,313.0		102.8%		15.6%		18.5%
	African American		$307.8		$572.1		85.9%		7.4%		8.1%
	Hispanic		$207.5		$452.4		118.0%		5.0%		6.4%
	Asian		$112.9		$253.8		124.8%		2.7%		3.6%

Source: Selig Center for Economic Research, Terry College of Business, University of Georgia
1 Includes African American, American Indian, Asian and Hispanic

The Multicultural Market is Not Effectively Reached by General Market Media
Evidence shows that ethnic populations are not effectively reached by advertising placed with traditional, "general market" media. The Los Angeles Times' estimated Hispanic readership of 778,181 reaches only 12 percent of the 6.5 million Hispanics in the Los Angeles DMA. Nielsen Media Research shows that only one top ten general market program, NFL Monday Night Football, is among the top ten for African American homes.

Even when general market advertising does reach ethnic audiences, the advertising messages often miss the mark. They're viewed by many minorities as "not for them." Multicultural audiences feel that mainstream media do not understand them, for the most part, and do not speak directly to them.

Targeted media, however, cater their messages to their communities. Ethnic newspapers contain editorial focused on the news and issues directly affecting their readership. Spanish-language radio stations, among the top rated stations in many markets, feature music catering to Hispanic heritage and tastes. And cable outlets such as BET and The International Channel draw diverse ethnic audiences with their focused programming.