Editor's note: Natalia Infante Caylor is president and CEO of Hola Insights. She can be reached at natalia@holainsights.com.
As the U.S. becomes even more diverse, Hispanic consumers represent a growing force with $3.2 trillion of economic output (2023 U.S. Latino GDP Report) that brands cannot afford to ignore. This youthful segment is the largest minority in the U.S. and is projected to pass the 111 million mark (Statista, 2024) by 2060. As the white population ages and the Hispanic population increases (U.S. Census, 2024), brands that fail to recognize this shift risk being left behind in the race for market relevance.
Companies need to rethink their marketing efforts and understand that what works for the general market won’t work for Hispanic consumers. Rather, marketers must engage with consumers in a genuine, culturally relevant and respectful way. And remember: The Hispanic market is not a monolith. Even though they all share the same native language, these consumers come from 20 countries and represent a range of dialects and unique regional nuances.
Understanding your audience
First-generation Hispanics are those born outside of the U.S., second-generation Hispanics were born in the U.S. but have parents who were born abroad and third-generation Hispanics are those with two U.S.-native parents (U.S. Census, 2021). Usually, the more acculturated they are, the more they assimilate into the American culture and the English language. But that does not mean that a marketing campaign would resonate with all of them the same way.
For instance, a first-generation unacculturated Argentinean speaks a Rioplatense Spanish whereas a first-generation unacculturated Cuban speaks a Spanish with a Caribbean influence or dialect. There are slight variations among each of their versions of Spanish such as the vocabulary, tonality and accent that are important to recognize. Keeping this mind can help brands better understand their audience.
Diversity of country
While most Hispanics living in the U.S. are Mexicans or of Mexican descent, other areas of the U.S. reflect the influences of Hispanics from different Spanish-speaking countries and therefore their behavior and needs as consumers might be different. For instance, the southern part of Florida has been known for having a heavy presence of Cubans and Puerto Ricans. However, with the changing demographics we are also seeing more Colombians, Venezuelans and other Hispanic groups.
Advertising and marketing
Do you go with hola or hello? What is a Hispanic consumer’s language of preference when it comes to marketing? They may be comfortable speaking English but perhaps seeing a Spanish word or two might help them feel more connected. No matter what, making sure ad copy is accurately translated and culturally relevant for the target audience is critical to showing that you respect the Hispanic culture. The last thing you need is for your brand to convey the wrong message.
Beyond advertising, engaging with the Hispanic community through sponsorships, event hosting and supporting celebrations (such as National Hispanic Heritage Month, local Hispanic festivals, etc.) is a good way to gain visibility for your brand or organization.
Another way to connect with Hispanics is to become familiar with their important cultural traditions. For example, did you know that most Latinos eat 12 grapes at midnight on New Year’s Eve? Each grape represents one month of the coming year and by eating one grape at a time and making a wish it is believed to set the year into a positive start.
I am a native speaker of Spanish and prior to becoming a market researcher I was a professor of multiculturalism and Spanish languages and cultures at several universities in Colorado. I remember living in northern Colorado, trying to track down grapes for New Year’s and having to visit a couple of supermarkets to do so – not fun during cold, icy weather. About three years ago, my husband and I decided to finally escape the Colorado winter and celebrate the new year in South Florida. What a difference! We spent a few days near Calle Ocho, in Little Havana, well-known for its Cuban neighborhoods. The Latino population and diversity there compared to northern Colorado was pretty impressive of course and I had no issues finding grapes at the supermarket or any other type of Latino products to receive the new year!
Grapes are not the only solution: Other Latin Americans also eat lentils for New Year’s as a tradition to symbolize prosperity and good fortune. It just takes getting to know your Hispanic audience to successfully integrate your marketing in a culturally sensitive way.
One more thing about translation and language to keep in mind is that we have formal Spanish used in professional or respectful contexts and informal Spanish used in casual or familiar settings. I have seen marketing campaigns in Spanish where the formal and informal Spanish were used interchangeably. As always, there’s a place for everything but when it comes to marketing communication, keep in mind that a poor translation reflects back on your brand
New peaks
By delving into and embracing a cultural perspective, you can unlock new opportunities for growth and connection with Hispanic consumers. It is time for brands to reconsider their strategy and explore how these insights can drive their brand to new peaks. Embrace this $3.2 trillion of economic might by discovering the transformative power of the Hispanic culture for your brand today.