Brands can’t afford

to ignore this large,

young—and
heterogeneous—
demographic

Hispanic marketing
report 2023
Sponsor content
Custom white paper
Hispanic marketing
report 2023
Hispanic households represent 13% of discretionary
spending in the U.S. Brands ignore this large, young—and
heterogeneous—demographic at their own peril
In just 30 seconds, one 2022 holiday sea-
son commercial from T-Mobile said a lot
about today’s Hispanic market. Produced by
UnGroupe (Conill/Saatchi), the spot features
two abuelitas competing for the praise of their
granddaughter, bragging about their home-
made specialties at a holiday spread.
The family dinner is a familiar setting for
Hispanic market commercials. But in this ad,
the two abuelitas have prepared dishes from
their countries of origin—one serving Mexican
enchiladas, the other South American arepas.
It’s a subtle but clear acknowledgment of the
diversity within today’s Hispanic families, and
the U.S. Hispanic population overall.
The dialogue is in Spanish, but with English
references. They’re discussing a mobile
phone, and at the center of the action is the
granddaughter: a young, bilingual, bicultural
American woman representing the growing
center of the Hispanic population. Not simply
a translation of a mainstream commercial,
the ad hits all the important buttons, with the
nuanced, culturally relevant perspective that
experts say is critical to connect with Hispanic
consumers.
“Simply translating an ad or marketing
campaign is not enough to resonate with
Hispanic consumers today, who have unique
cultural experiences, values and prefer-
ences,” said Augusto Romano, CEO of Digo.
“Creating ads from the start that are aimed at
Hispanics requires a deep understanding of the
Hispanic market.”
2 The Business of Brands
And marketing to Hispanics is more import-
ant than ever, Romano noted: “Understanding
and targeting U.S. Hispanics is essential for
brands that want to succeed in today’s market.
With the rapid growth of the Hispanic popula-
tion in the U.S. and its increasing purchasing
power, brands that ignore this market seg-
ment risk missing out on significant revenue
opportunities.”
The numbers are powerful: According to the
2020 U.S. Census, the Hispanic population was
62.1 million, or 18.7% of the total U.S. popula-
tion, up from 50.5 million in 2010. Consider
that just 50 years ago, the Hispanic population
was only 9.6 million. Hispanics also represent
a continually increasing percentage of the U.S.
According to market research company MRI-
Simmons, 18.1% of Americans ages 6 and older
identify as Hispanic, compared with 16.9% in
2016. Hispanics accounted for more than half of
total U.S. population growth from 2010 to 2019,
with about 1 million Hispanic babies born in the
U.S. each year during the decade.1
That translates into not only a large but
also a young group of people. While 10% of
Americans age 50 and older are Hispanic, nearly
COV ER: S HU TT ERST OCK ; COURTESY DIGO
one-quarter of Americans between the ages of 6
and 34 are of Hispanic or Latin origin.
“Trendwise, it’s about total growth in num-
bers, both now and in the foreseeable future,”
said Diego Osuna, Hispanic marketing strat-
egy lead for T-Mobile. “In terms of labor force
participation, the numbers for Hispanics are
the highest percentage of any group. Hispanics’
Ad Age May 2023
Hispanic marketing report 2023
educational achievement is on the fast track.
Altogether, it creates a picture of a growing,
young population with rapid income growth
and an even bigger role to play in the consumer
marketplace.”
Growing fast, increasingly complex
“It’s important to note that U.S. Hispanics are
not a monolithic group,” Romano said. “They
have different preferences and behaviors,
depending on factors like country of origin,
acculturation level and language preference.
Brands that take the time to understand these
nuances and tailor their marketing strategies
accordingly will be more successful in engaging
with this market segment.”
He pointed out, for instance, that the prod-
uct preferences and values of consumers with
roots in Puerto Rico may differ from those with
origins in the Dominican Republic.
Sebastian Yoffe, managing director of Latin
America and U.S. Hispanics for global technology
company Lotame, put it this way: “Would you
consider all Europeans, Asians or Africans as a
For brands seeking to connect, Spanish matters
Taking the time to create an ad in Spanish is viewed as a mark of respect—not only by
Spanish-dominant consumers, but also by second- and third-generation Hispanics who
primarily speak English.
When a product or service is
advertised in Spanish, I am more
likely to pay attention to the
advertisement and remember it later.
Advertisements in Spanish are the
best source of information when I’m
purchasing products or services.
I believe that companies who
advertise in Spanish respect my
culture and want my business.
I am more likely to be loyal to a
company that makes an effort to
advertise in Spanish.
source: MRI-Simmons USA, Spring 2022
3 The Business of Brands
single demo? That’s a quick recipe for failure.
U.S. Hispanics are no different in this regard.
These 62 million people come from more than
26 Spanish-speaking countries. Even those who
speak Spanish don’t always speak the same
Spanish; there are many dialects to consider as
well as unique cultural idiosyncrasies, customs,
beliefs, etc.”
Hispanics’ language preferences illustrate
that complexity. Overall, about half of Hispanics
say they prefer to speak mostly or only in
English at home, and half prefer Spanish. But
while 75% of first-generation (i.e., foreign-born)
Hispanics say they prefer to speak mostly or
only Spanish at home, 84% of third-generation
Hispanics (those born in the U.S. to American-
born parents) told MRI-Simmons they prefer to
speak only or mostly English at home.
But even among English-dominant
Hispanics, targeted advertising—in Spanish—
matters. Nearly two-thirds of English-dominant
Hispanics agree with the statement, “I believe
that companies who advertise in Spanish
respect my culture and want my business,”
Spanish dominant English dominant
70%
38%
53%
26%
77%
61%
66%
48%
Ad Age May 2023
Hispanic marketing report 2023

according to MRI-Simmons, and 48% agreed
that “I am more likely to be loyal to a company
that makes an effort to advertise in Spanish.”2
However, T-Mobile’s Osuna noted that it’s
not just about language. “It’s about the right
content,” he said. “Whether it’s in Spanish,
English or a combination, the message must be
relevant. For instance, the younger generation
doesn’t want to see themselves only as Latinos.
They’re proud of their heritage—they just don’t
want that to define them completely or in a
stereotypical way. Our “abuelitas” ad was a fun
way to acknowledge that: We’re different, but
we’re connected at the same time.”
The increased complexity is also seen in
Hispanics’ countries of origin. Although more
than 60% of U.S. Hispanics have roots in Mexico,
that share is steadily declining as the Hispanic
population becomes more diverse. For exam-
ple, Pew Research Center reported more than a
30% growth in the population of Hispanics with
roots in the Dominican Republic and Guatemala
from 2010 to 2017, and a 20% increase in Puerto
Ricans living in the mainland U.S.
At the same time, according to MRI-
Simmons, two-thirds of Hispanics are bicul-
tural to some extent, and 28 million Hispanics
identified themselves as multiracial in the
2020 U.S. Census.3 The Hispanic population has
become more geographically dispersed within
the U.S. In 1980, 68% of the country’s 14.6 million
Hispanics were concentrated in 47 counties,
mostly in expected locations like Florida, Texas
and California, as well as in such metro areas as
Los Angeles, Houston and Miami.
Compare that with 2020, when 112 counties
were home to 70% of the Hispanic population,
according to Pew. That includes significant
pockets of Hispanics, everywhere from Colorado,
Utah and Washington to North Carolina, Georgia
and Michigan. And although it’s still small in
absolute terms, the number of Hispanics more
than doubled in North Dakota from 2010 to 2020,
and was up 87% in South Dakota.

6 in 10 Americans say they are very Black and Hispanic adults feel more
familiar with their origins connected to roots than white adults
Percentage saying they are… Percentage saying they ______ with the cultural
origin of their family

Very familiar with their origins Feel a strong connection

Not too familar with their origins Do not feel a strong connection

77% 71%
Hispanic Hispanic
19% 27%

59% 61%
Black Black
36% 33%

54% 36%
White White
44% 62%

All
60% All 46%
adults adults
36% 50%

NOTE: White and Black adults include those who report being only one race and are not Hispanic. Hispanics are of any race. Share of respondents who
didn’t offer an answer not shown. SOURCE: Survey of U.S. adults conducted Jan. 3-13, 2020. “Black and Hispanic Americans See Their Origins as Central
to Who They Are, Less So for White Adults.” Pew Research Center.

4 The Business of Brands Ad Age May 2023

Hispanic marketing report 2023

Connected to their culture Hispanic adults connect with brands

No matter which language they prefer or where on social media
they live, Hispanics remain keenly aware of and Compared with the overall U.S. population,
closely connected to their origins, according to Hispanic adults are more likely to agree
Pew. Some 77% of Hispanics said they feel very with the following statement:
familiar with their origins, and 71% said they
I like to follow my favorite brands
feel a strong connection to their cultural origin, or companies on social media.
compared with just 54% and 36% among
white Americans.
33%
“Hispanics have a very strong pride and
identity,” said Risa Becker, senior VP of research
methods for MRI-Simmons. “Maybe first-gen-
I am more likely to purchase products I see
eration Americans are more connected to their advertised on social media.
origin countries, but in general all Hispanics feel
very proud of their origin stories. That’s one rea-
49%
son it makes sense to market to them directly.”
Romano agreed: “Brands need to understand
that U.S. Hispanics maintain strong connections
I enjoy content posted by my favorite
to their countries of origin, including cultural brands on social media.
traditions, language and media consumption
habits. These connections play a critical role in
32%
shaping Hispanic consumers’ preferences, val-
ues and behaviors and can significantly impact
their purchasing decisions.”
Advertising on social media is interesting and
Because of that cultural identity, T-Mobile’s gives me something to talk about.
Osuna pointed out, broad identity terms such
as Hispanic are less meaningful to many. “Most
52%
of us say, ‘I’m Dominican American,’ or ‘I’m
Venezuelan.’ The reality is that these are our real
segment terms. That’s our real self-identifica-
Advertising on social media provides me with
tion,” he said. Because of those strong national useful information about bargains.
identities, Hispanics connect with TV shows,
music and news from their countries of origin.
41%
Romano noted that while Spanish-language
TV networks like Univision and Telemundo are
popular and provide more general content from
Latin America, Hispanics also seek content from source: MRI-Simmons USA, Fall 2022

“Maybe first-generation Americans are more

connected to their origin countries, but in general all
Hispanics feel very proud of their origin stories. That’s
one reason it makes sense to market to them directly.”
Risa Becker, senior VP of research methods, MRI-Simmons

5 The Business of Brands Ad Age May 2023

Hispanic marketing report 2023

U.S. Hispanic measured media According to a July 2022 Nielsen Npower

Dollars in millions. report, 43.6% of Hispanics’ TV time is spent on
streaming video, more than broadcast and cable
Media 2022 2021 %change
combined.
Spanish-language $1,682 $1,858 -9.5 But for brands looking to connect with
network TV
Hispanic consumers, said MRI-Simmons’
Spanish-language 1,384 1,273 8.7 Becker, “social media really stands out. In terms
spot TV
of media usage, Hispanic adults have an affinity
Local radio 489 276 76.9
for social media, with higher usage among all
Mobile 315 347 -9.2 Hispanic adults, no matter what age.” MRI-
Cable TV network 192 201 -4.7 Simmons data shows that all Hispanics—first,
Internet display 72 113 -36.4 second and third generation—significantly
overindex in terms of time spent on social
Newspaper 38 33 13.2
media, compared with the general population.
Online video 31 40 -22.2
Magazine 14 48 -70.7 Hispanics as consumers
Total $4,216 $4,189 0.6 Becker also pointed out that Hispanics’ affinity
for social media extends to brands
source: 2022 Vivvix
and advertising. “Not only do Hispanics
spend more time on social media and are
their home countries through online streaming more engaged—in terms of things like posting
services, news sites or social media platforms. comments and content—but they index more
highly in their engagement with brand content
Hispanics as media users and advertising on social media,” she said.
Hispanics are consumers of media. Sports, For brands, reaching these consumers is
movies and music are priorities, whether on TV becoming more important as Hispanic purchas-
or digital platforms. No matter what the metric, ing power—projected to reach $2.3 trillion by
Hispanics overindex on media use. Consider 2023, representing a 17% increase from 2018—
that they spend three hours a day online on grows. Hispanic households now represent 13%
their phones, 50% more than the typical non- of all discretionary spending in the U.S., with
Hispanic American. Hispanics also spend more spending on nonessential purchases rising
than 26 hours per month watching video on dramatically over the past decade, from $163.4
their smartphones, seven hours more than the billion in 2013 to $235 billion in 2022.
U.S. average, according to PwC.4 Not surprisingly, the Hispanic market’s pur-
Hispanics also are mobile-first, with higher chasing power is growing faster than that of the
smartphone use than the average American. general population. According to a report by the
More than 80% of Hispanic households have Selig Center for Economic Growth, the Hispanic
at least one mobile phone, and only 26% have market’s purchasing power grew at annual rate
a landline (compared with 37.5% of the total of 5.2% from 2000 to 2018, compared with the
U.S. population), according to Claritas’ 2022 total U.S. annual growth rate of 4.2% during the
Hispanic Market Report.5 And two-thirds of same period. Because Hispanics as a group are
Hispanic households say they watch TV on their significantly younger than white Americans,
phones, compared with 42% for the total U.S. their lifetime purchasing power is also signifi-
In addition, 54% of Hispanic Americans don’t cantly greater.7
subscribe to a cable or satellite service, and are As consumers, Hispanics, again, are not a
10% more likely to be cordless than the average monolithic group. Some 37% of Hispanic con-
American, according to MRI-Simmons.6 Perhaps sumers are what MRI-Simmons calls “swayable
because they have fewer conventional cable shopaholics”—impulse buyers who are willing
subscriptions, they also have high consumption to pay extra for image-enhancing products and
of streaming music and TV services like Netflix. who switch brands for variety. On the flip side,

6 The Business of Brands Ad Age May 2023

Hispanic marketing report 2023
23% are designated as “penny-pinchers,” judg-
ing all products by a single criterion: price.
Best practices for marketing to
Hispanic consumers
Hispanic consumers are young, engaged and
have increasing purchasing power. Here are key
suggestions for reaching this growing audience.
1. Advertise in Spanish. “Many Hispanic
consumers are bilingual and consume both
Spanish and English-language media,”
Romano said. “Brands should consider using
both languages in their advertising cam-
paigns to reach the broadest possible audi-
ence.” And remember: Spanish-language
ads make an impact even on English-first
Hispanics, who tell researchers they appre-
ciate brands that respect Hispanic culture.
2. Do your homework. The right homework
includes researching both cultural mes-
saging and media choices. Lotame’s Yoffe
put it this way: “It’s not hard to reach U.S.
Hispanics, but they are discriminating con-
sumers, so ensure your creative and services
matter to them.” As an example, he pointed
to footwear client Dr. Martens, a regular
Hispanic advertiser, which needed to intro-
duce its new Spanish-language website to
those consumers.
“They did everything right,” Yoffe said.
“They found trusted partners who knew
the market well and had proven expe-
rience delivering the results they were
looking for. They did the work to analyze
and understand the vast U.S. Hispanic
market using high-quality data sources
and worked to ensure delivery reached the
intended targets.”
3. Mobile and social media first.
“Remembering that Hispanic consumers
are heavy users of social media and mobile
devices, brands should develop campaigns
that can be easily shared and accessed
on social media platforms and optimized
for mobile devices,” Romano said. MRI-
Simmons’ Becker agreed: “Pay attention to
social media as a key way to reach Hispanics.
7 The Business of Brands
These consumers use social media not just
to connect with family and friends, but for
brands and product information, too.”
4. Be culturally relevant and entertaining.
Hispanics are passionate about music and
sports, and Osuna recommended both as
important ways brands can connect with
this audience. T-Mobile has partnered with
popular musicians such as J Balvin, Shakira
and Prince Royce in ads and promotions
and launched creative featuring Mexican
National Team star Carlos Vela during the
2022 World Cup. The company has recently
deepened its relationship with LigaMX
through its Metro by T-Mobile prepaid
brand. “Use those moments of culture that
are important to Latinos,” Osuna said.
5. Loyalty matters. Osuna says it’s important
to put forth consistent effort in connecting
with the Hispanic market. “You don’t want
to be the brand that jumps in and out,”
he said. He also discouraged brands from
waiting until they have a perfect Hispanic
strategy: “The idea that you must be great at
the start is flawed. Many companies fear the
potential ramifications if they don’t show up
with authenticity and relevance. While that
is the right sensitivity, sometimes you have
to test and learn in order to learn from small
mistakes. You can’t let analysis paralysis
stop your brand from engaging.”
6. Engage with the community. “Hispanic
consumers value brands that are actively
involved in their communities and support
social causes that are important to them,”
Romano said. He suggested that brands
consider sponsoring community events and
partnering with local organizations to build
credibility and trust within the Hispanic
community. Osuna echoed that idea. Nearly
a third of T-Mobile employees are Hispanic,
and he said their frontline employees serve
as unofficial but important brand ambas-
sadors in both large urban cities and small
towns. “Marketing can only get you so far.
We really rely on our employees being an
integral part of the community,” he said.
Ad Age May 2023
Hispanic marketing report 2023
Brands should always keep in mind an over-
arching reason why it’s important to talk to this
group of Americans, Becker added.
“No matter what the age group or gener-
ation, Hispanics overindex on the idea that
Hispanic voting trends don’t hew to any specific line
Many in the U.S. tend to refer to Hispanics
as one monolithic demographic group in
terms of attitudes and values. But after the
last two national elections it seems clear
that Hispanics don’t view themselves—or
act—that way.
Augusto Romano, CEO of Digo, said
voting trends offer lessons for brands inter-
ested in marketing to Hispanics.
“The discussion around Hispanic voter
choices and behavior in the past two national
elections reflects broader changes in the
Hispanic population, including demographic
shifts, changing levels of political engage-
ment and evolving cultural attitudes,”
he said.
Key trends and patterns in voter behav-
ior echo broader shifts in the Hispanic popu-
lation. That includes the growing influence
of younger Hispanic voters, who are more
likely to be U.S.-born and have different
attitudes and priorities than previous gen-
erations of Hispanic voters. “These younger
voters tend to be more politically engaged,
with higher levels of voter turnout and more
active participation in political campaigns
and movements,” Romano said.
National election results also have high-
lighted the increasing geographic diversity
within the Hispanic population, and the
distinct political views and priorities of
subgroups from different countries of ori-
gin. Florida’s Cuban Americans have voted
FOOTNOTES 1. “The State of the Hispanic American Consumer 2022,” MRI-Simmons. 2. “The State of the Hispanic American Consumer
2022,” MRI-Simmons. 3. “The State of the Hispanic American Consumer 2022,” MRI-Simmons. 4. “Always Connected: US-Based Hispanic
Consumers Dominate Mobile,Entertainment, and Beyond,” PricewaterhouseCoopers. 5. “The 2022 Hispanic Market Report: The New American
Mainstream,” Claritas. 6. “The State of the Hispanic American Consumer 2022,” MRI-Simmons. 7. “Hispanic Buying Power 2000-2024,” Selig
Center for Economic Growth, University of Georgia.
8 The Business of Brands
‘family is important to me,’” she said. “Brands
should really appreciate that feeling of identity
and ethnic pride. If you’re speaking to that,
you’re speaking to Hispanics.”
for more conservative candidates, while
Mexican Americans and Puerto Ricans in
California, New Mexico and New York have
tilted toward liberal choices.
Nationally, 64% of Hispanics said they
voted for a Democrat in the 2022 races for
the U.S. House of Representatives, and 33%
said they voted for a Republican candi-
date, according to the 2022 AARC Midterm
Election Voter Poll. But while 66% of Mexican
American voters and 70% of Puerto Ricans
said they voted for a Democratic candidate,
Cuban Americans were split nearly 50-50
between Democrats and Republicans.
“There are several lessons that market-
ers can take from the discussion around
Hispanic voter behavior,” Romano noted.
“First, it is important to recognize the diver-
sity within the Hispanic population and to
develop targeted campaigns that resonate
with different subgroups.” In 2020, Digo
worked with the Biden-Harris campaign on
an effort targeting Hispanic voters broadly
but also focused on Puerto Rican citizens.
Added Romano, “Second, marketers
should recognize the growing influence of
younger Hispanic consumers, who are more
likely to be bilingual and digitally savvy.
Brands that can effectively engage with this
demographic on digital platforms can create
more personalized and targeted campaigns
that resonate with this audience and
drive growth.”
Ad Age May 2023
Ad Age Studio 30
Ad Age Studio 30 helps your brand
connect with an influential audience
actively seeking new partners, solutions
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events, research, webcasts, white
papers, infographics and more, our end-
to-end solutions help your content reach
and resonate.
Studio30@adage.com
Staff
Writer Julie Liesse
Design Director Jennifer Chiu
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Editor Christopher Hosford
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About Digo
Digo is a U.S. Hispanic Audience Network
of handpicked premium, reputable and
well-established Spanish-language
publishers from Latin America and
Spain. These premium publishers are
the first point of reference for Hispanics
in the U.S. who have the need of staying
connected to the news of what’s
happening in their country of origin.
Visit https://digohispanicmedia.com
for more information.

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