Download MULTICULTURAL MARKETING INDUSTRY SURVEY RESULTS

MULTICULTURAL
MARKETING
INDUSTRY
SURVEY
RESULTS
sept.
2014
EXECUTIVE SUMMARY
Joinville created the multicultural marketing industry’s first survey
on trends and demographics on the marketers moving this industry
forward. 234 respondents were collected from multicultural
marketing professionals in North America, Europe and Asia Pacific
inside the global multicultural marketing industry.
A typical multicultural marketer is
male, 35-44 years of age with a postgraduate degree and who has worked
aprox.10 years in the industry.
Media buying trends include social media advertising (Facebook/
Twitter) targeting multicultural audiences – the majority of the
marketers plan to increase the digital spend 2014 (68%) followed by
an increase in ethnic event marketing activities (40%).
Marketers have very different views on TV advertising and its impact
on multicultural marketing campaign performance – it’s close to a
50/50 split between marketers considering TV the most important
vehicle and the ones who do not consider it that important for
successful multicultural campaigns.
Multicultural Marketing Industry Survey - Results
2
sept.
2014
INTRODUCTION
“Multicultural marketing has been a distinct area of marketing
for the last 30 years but very little is known on the people driving
this industry forward. As the industry grows in importance and
volume, Joinville created an Industry survey with the aim to establish
multicultural marketing industry benchmarks and see the industry
trends and demographic profiles of professionals in the sector.
The data was collected during June-August 2014 from invited
respondents anonymously.”
- Niklas Nikolaidis
Multicultural Marketing Industry Survey - Results
3
sept.
2014
PART 1: WHO WORKS WITH IT?
Q20: WHAT IS YOUR CURRENT COUNTRY OF RESIDENCY?
With the survey language being English, it’s not that surprising that
the overwhelming majority of respondents are from the US 54.14%),
Canada (24.06%) and UK (7.52%) followed by Australia and France.
Q19: WHAT IS YOUR GENDER?
More than 63% of the respondents were men, 36% women.
Q18: WHAT IS YOUR AGE?
Age intervals were 18-65 (and older) with age ranges divided into 5
groups in between the extremes. The largest age group was 35-44
year-olds followed by 45-54 year-olds. The smallest age group was
18-25 year-olds (if we don’t take into account people aged 65 years
and older but since many people retire before this age is considered
out-of-scope for this survey).
Multicultural Marketing Industry Survey - Results
4
sept.
2014
PART 1: WHO WORKS WITH IT?
Q22: WHAT IS YOUR EDUCATION LEVEL?
Multicultural marketers have high academic degrees – 35% have a
post-graduate degree and 34% have a graduate degree of at least 5
years.
Q3: WHAT IS THE TYPE OF ORG./COMPANY YOU WORK FOR?
Being asked what type of organization they worked for, over 58% are
multicultural Agency people, followed by people working for Brands
(10%) and Multicultural Publishers (6%). Other answers included
Consultancy firms, Insurance Services and Research companies.
Q4: WHAT IS THE LEVEL OF THE YOUR CURRENT POSITION?
Multicultural marketing executives mostly hold a mid-senior level
position (24%) or higher. 34% are Directors.
Multicultural Marketing Industry Survey - Results
5
sept.
2014
PART 1: WHO WORKS WITH IT?
Q5: HOW MANY YEARS OF EXPERIENCE DO
YOU HAVE WORKING WITH MULTICULTURAL
MARKETING?
The majority of the respondents have worked
with multicultural marketing more than 10 years
(52%) or 5-10 years (30%).
CONCLUSION
• Male, around 40 years old, most probably
resides in US
• Works with multicultural marketing full time
in an agency
• Mid-to senior level executive
• Received at least a graduate degree and has
about 10 years of experience
Multicultural Marketing Industry Survey - Results
6
sept.
2014
PART 2: INDUSTRY TRENDS
Q8: WHICH ETHNIC AUDIENCES DOES YOUR COMPANY TRY TO
REACH USING MULTICULTURAL MARKETING TOOLS?
Top 5 most attractive ethnic audiences are:
• Hispanic (32%)
• South Asian (25%)
• Asian (18%)
• African American (12%)
• Arabic (4%).
Multicultural Marketing Industry Survey - Results
7
sept.
2014
PART 2: INDUSTRY TRENDS
Q6: HOW MUCH OF THE ANNUAL MEDIA BUDGET DOES YOUR
COMPANY SPEND ON MULTICULTURAL MARKETING?
24% of the companies spend between 80-100% of the media budget
on multicultural marketing, 9.5% spend 60-80%. Worth noticing is
that 22% of the companies only spend between 0-20%!!!
Brands are spending the least – 47% only spend between 0-20% of
their media budget on the multicultural segment. Agencies spend
36% of their media budget on multicultural media (the answers do
not reveal if this is agency money or client money).
Q9: WHAT IS THE MOST IMPORTANT FOCUS WHEN YOU WORK ON
MULTICULTURAL MARKETING CAMPAIGNS?
Sales Performance came in as the top focus for multicultural
marketing campaigns (49%) while Brand awareness came in at 35%.
Multicultural Marketing Industry Survey - Results
8
sept.
2014
PART 2: INDUSTRY TRENDS
Q16: WHAT KIND OF MARKETING WILL YOU INCREASE IN 2014?
The marketing activities with the highest budget increase in 2014 will
be the following:
• Digital (68%)
• Event Marketing (40%)
• Sponsorships (28%)
Multicultural Marketing Industry Survey - Results
9
sept.
2014
PART 2: INDUSTRY TRENDS
Q17: PLEASE EVALUATE FROM 1 TO 7, TO WHAT EXTENT DO YOU
AGREE WITH THE GIVEN STATEMENTS.
When asked with if they agree with the statement that “TV
commercials are the most important vehicle for multicultural marketing.”
there was a spread between the answers and an even split between
marketers agreeing and others not agreeing (average rating
was 3.87 where 7 was full agreement and 1 no agreement at all).
When asked about the statement “Only large brands benefit from
multicultural marketing.” The average rating was 1.79 out of 7 and
multicultural marketers clearly think all types of brands benefit from
multicultural marketing.
Multicultural Marketing Industry Survey - Results
10
sept.
2014
PART 2: INDUSTRY TRENDS
A cloud of the respondent’s anonymous quotes:
“It amazes me how companies completely ignore the Multicultural market
even they are seeing the growth and the potential. It is not politically correct
to do it is a business decision that will bring benefits in the near future.”
“Multicultural marketing may be integrated in regular marketing activities
based on different ethnicity scenario in different countries. Integration than
isolation.”
“Multicultural is very important since it truly is about speaking to the
audience with their cultural fluency. However, in the US alone we are slowly
turning into a fully integrated society where there are pockets of cultures
that need to be spoken to and such messaging is going to flip. Meaning the
general market will be the minority sooner then we believe.”
“A person being called upon either by another person or a brand would like
to hear or rather would respond (emotionally) better if addressed in their
ethnic language…”
“In the future, when diversity becomes inclusion, multicultural marketing will
disappear...”
Multicultural Marketing Industry Survey - Results
11
sept.
2014
PART 3: MULTICULTURAL MEDIA
Q10: WHAT ARE THE MOST IMPORTANT METRICS TO EVALUATE
PERFORMANCE?
The most important multicultural marketing metrics are Return-onInvestment (ROI) at 63%, Brand Awareness (58%) and Conversions
(Sales/Signups) at 57.6%.
Q11: DO YOU BUY DIGITAL/ONLINE (DISPLAY, SOCIAL, VIDEO,
SEARCH, MOBILE, ETC.) MEDIA?
Over 70% of multicultural marketers buy online media vs. 29% that
don’t.
Multicultural Marketing Industry Survey - Results
12
sept.
2014
PART 3: MULTICULTURAL MEDIA
Q12: WHAT KIND OF DIGITAL/ONLINE MEDIA DO YOU BUY?
Social media buys are the most common media buy for multicultural
marketers (80%) followed by Display (74%) and Search (62%). The
least common is Email at 40%.
Q13: WHICH SOCIAL MEDIA CHANNELS DO YOU USE FOR
MULTICULTURAL MARKETING PURPOSES?
Top of the social media list is, not surprisingly, Facebook (84%) and
Twitter (54%) and last on the lists is Pinterest at 17%. Other social
media networks include Weibo, WeChat and QQ (Chinese), Youtube
and Vine.
Multicultural Marketing Industry Survey - Results
13
sept.
2014
PART 3: MULTICULTURAL MEDIA
Q14: HOW MUCH OF THE ANNUAL MULTICULTURAL MARKETING
BUDGET IS SPENT ONLINE?
Online seems so far to be the cheapest media option as 27% said 0-20%
is being spent there, 23% said 20-40% is spent and 17% said 40-60%
of the budget is spent there. If we drill down and look at differences
between the company types, we see that Agencies and multicultural
Publishers spend the least amount of media budget online – 20% of
Publishers spend 0-20% of the budget online while 19.1% for agencies.
Multicultural brands have an unclear picture on online spend and 17.6%
did not know about their multicultural budget for online spend %.
Q15: WHAT (OTHER THAN DIGITAL/ONLINE) KIND OF MEDIA DO
YOU BUY?
When asked about non-digital media buys, it was a very close race
between Print (62.6%), Event Marketing (61.9%), Sponsorships
(61.2%), TV (57%) and Radio (57%).
Multicultural Marketing Industry Survey - Results
14
sept.
2014
CONCLUSIONS
#1. As expected, the leading multicultural marketing audience
is the Hispanic group (due to the considerable opportunity and US
purchasing power), followed by South Asian, East Asian, African
American and Arabic audiences. These results are valid across
North America and Europe mostly. We were surprised that Hispanic
targeting was not higher than 32% of the respondents and that Asian
American was number 2 on the top audiences targeted.
#2. While importance of a focused multicultural marketing
targeting ethnic niched audience is traditionally strongly recognized
in the industry, it’s becoming more and more viewed as an integral
part of a company’s marketing activities inside a Total Marketing
framework in the US. This discussion is not yet present in countries
like Canada, Australia or UK but will most likely emerge the years to
come.
Moreover, multicultural marketing isn’t viewed anymore as beneficial
to large brands only. Very often specific, narrow niche products and
brands are successfully promoted using multicultural marketing
tools and techniques.
Multicultural Marketing Industry Survey - Results
15
sept.
2014
CONCLUSIONS
#3. Despite TV commercials importance in the advertising
industry, its significance is subject to a fierce discussion among
multicultural practitioners. Digital channels are viewed as the future
of multicultural advertising with Digital leading the way with 68%
of the multicultural marketers increasing spend in 2014. 2/3 of the
respondents are confident in a spend increase in digital advertising
in the following year budget, which is mostly display and social
advertising, such as Facebook, but also Twitter and LinkedIn.
#4. Although most of the respondents believe brands benefit from
multicultural marketing, the results show that most brands spend
less than 20% of their budget on multicultural marketing.
According to the study results, US, Canada and UK share a similar
multicultural marketing landscape where 1/3 participants spend less
than 40% budget on multicultural marketing and 2/3 spend more
than 40% of the budget.
Multicultural Marketing Industry Survey - Results
16