Food for Thought: Ethnic Buying Power in the U.S

With the 2010 Census now in full swing, you're starting to hear buzz words like: buying power, African Americans spending is in the Trillions, Hispanics are leading, diversify your brand, etc. We've been talking about it on our radio show, The Greenlight Project and we talk about it with our clients who are intentionally looking to diversify their marketing and branding.

What's all this talk about buying power and what does it mean to the now 'ethnic majority' in the United States? The growth of Ethnic minorities in America has been phenomenal. Since 1980, the Asian American population has almost tripled, Hispanic American more than doubled, Native American increased 62%, and African American increased 31%, while the non-ethnic population has remained almost the same.

This is a trend that is expected to continue. The latest estimates by the U.S. Census Bureau predict that the minority population will comprise fully half the U.S. population by the year 2050.

Let's illustrate this: TV Basics: Ethnic Buying Power
Hispanic, African-American and Asian target markets have made substantial gains in buying power* over the last decade. As these groups increase in number and purchasing power, their growing shares of the U.S. consumer market are drawing attention from all types and classes of advertisers.

Compared to the total U.S., African-Americans spend more on:

• Telephone Services
• Electricity
• Groceries
• Natural Gas

In 2013, Hispanics will account for 9.9% of all U.S. buying power, up from 5.0% in 1990.

Compared to the total U.S., Hispanics spend more on:

• Groceries
• Telephone Services
• Housing
• Clothing

In 2013, Asians will account for 5.4% of all U.S. buying power, up from 2.7% in 1990.

Compared to the average U.S. household, Asians spend more on:

• Food
• Housing
• Telecom Services
• Education

Please click here to read more about: Top States for African-American Buying Power, Top States for Hispanic Buying Power, and the Top States for Asian Buying Power

How can you use this information to empower yourself to choose better how you spend your dollars and with whom? Or as a marketer, how can you use this information to re-position your brand and align better with the spending power in the U.S.? Sound off; let us know what you're thinking.

*Television Bureau of Advertising "2008 Media Comparisons Study" Retrieved March 20, 2010 from the website http://www.tvb.org/nav/build_frameset.aspx.

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