Fact: Asians are the fastest growing ethnicity in the U.S.
Fact: Hispanics spending power grew by 50% over the past 5 years
Fact: African Americans will spend close to $1.3 trillion dollars on consumer goods in the next year, yet only 2% of the media spend goes towards the Black consumer
Fact: Millennials will over take Baby Boomers in being the largest living generation this year (2015) and are the most diverse generation ( more than 40% are non-white) in history when it comes to race relations
Fact: 1/3 of Latino and Black consumers almost always choose brands because they come from companies that support causes they believe in, compared to 1/5 whites.
The above are just a few facts that support why you should consider hiring a multicultural agency to assist with your branding and marketing endeavors. However, understanding these facts, so many companies still hire general-market (predominately white ran) agencies to handle there creative and communication needs, which if you look purely at the numbers that is not a smart business move. Why?
This past Friday I had business meeting with a company who is interested in hiring my agency to handle a brand awareness campaign for them. The overwhelming reason why they are entertaining us is simply because we are a multicultural agency. Their biggest pain point was hiring general agencies in the past, who delivered great content, but totally missed the mark in making the content relevant to their intended audience, which was the Black community. They lost a lot of money investing in a "one-size-fits-most" approach, ignoring the shift in communication needed to make a message relevant.
Many general market agencies speak to diversity, culture, and inclusion. They haphazardly throw around this jargon created a few years back in Ad World called "Total Market". Very few of these generalist demonstrate diversity. All you have to do is search the top advertising agencies or design shops, and you will see the lack of diversity within their ranks.
How can you engage a "Total Market" when your creative lens and understanding is one dimensional? Did you know that 79% of Latino and 84% of Black agreed that companies that make sincere efforts to be part of their communities deserved their loyalty? However, 62% Latinos and 68% Blacks agreed that very few brands and companies genuinely cared about the state of their communities.
This "Total Market" approach is a great concept, but it will require a huge shift internally at both the agency level as well as the companies they serve. General-market agency's need to partner with multicultural agencies and ethnicity agencies. We offer more than just consulting or language translation. Bring us on to lead projects, not sit in the background and provide insight. Treat us as equals and allocate appropriate budgets.
Next time your company is thinking of launching a new campaign, I encourage you to consider hiring a multicultural agency and give a fair shot.
Many liberal minded people say they don't see color anymore, but there is nothing wrong with seeing color. It is our differences that make us all unique, so we should embrace the fact.
If you are interested in talking about how our diverse approach can help you build a broader brand experience contact us!