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Why Digital Ads Are the Way to Reach U.S. Hispanics
 

U.S. Hispanics have about a trillion dollars in purchasing power—and they're far more likely than the general population to buy something after seeing an online ad.

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"There are 46 million U.S. Hispanics, 30 million of who are online," Google Mexico general manager John Farrell told MediaPost.

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U.S. Hispanics are 58 percent more likely to click on search ads than the general population, says a new study from Google and global research firm OTX.
 
In general, U.S Hispanics are more likely to remember online ads—especially video ads—when shopping. And three out of five bought something after seeing online ads while they did research—22 percent more than the national average.
 
The research comes on the heels of a separate study in December from consumer and media research firm Scarborough Research, which found mobile phone usage is increasing faster among U.S. Hispanics than the total population. 

Scarborough found the percentage of Hispanic adults who use a cell phone has jumped 26 percent since 2005, versus 18 percent for all adults. Smartphone growth among Hispanics is also outpacing that of the general population: 19 percent of Hispanic adults live in a household that owns one or more smartphones, versus 5 percent in 2005. Just under a quarter (23 percent) of the general population live in households with smartphones, up from 9 percent in 2005.
 
U.S. Hispanics also are more likely to use their mobile phones for more than just making calls. They text at greater rates than average: 64 percent compared to 56 percent. They're also more likely to use their phones to download music (22 percent compared to 15 percent); play games (19 percent versus 15 percent), and tap into social networks (12 percent compared to 10 percent).

The U.S. Hispanic market is so important that Google has put a special team in place to help advertisers connect with the market, one of Google's fastest growing.

"There are 46 million U.S. Hispanics, 30 million of who are online," Google Mexico general manager John Farrell told MediaPost. "They have about a trillion dollars in purchasing power, making it a customer segment marketers can't ignore."
    
"We've discovered that the digital world is the one that influences Latinos most at the time they make buying decisions and it's something that advertisers should take more into account," Mark Lopez, head of Google's new U.S. Hispanic unit, told Spanish news agency Efe last week.
 
He added: "It's true that we Latinos have a broader family nucleus and group of friends and perhaps that's why we make more use of the social alternatives offered by the Web."
 
According to U.S. Census Bureau figures released in December, Hispanics under 20 years old make up a quarter of the total youth in the U.S. Hispanics are expected to make up a quarter of the total U.S. population by 2050.

Last updated: Jan 31, 2011

Inc. contributing editor COURTNEY RUBIN was for five years a London-based staff writer for People magazine. Rubin, a former senior writer for Washingtonian magazine, has written for the New York Times magazine, Time, Marie Claire, and other publications. She is the author of The Weight-Loss Diaries.




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