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The African-American Marketplace

The African-American Marketplace. Table of Contents. Introduction Slide 3 Demographic & Geographic Trends Slides 4-17 Purchasing Power & Spending Patterns Slides 18-24 Media & Technology Usage Slides 25-28 Advertising to African-Americans Slides 29 -32

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The African-American Marketplace

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  1. The African-American Marketplace

  2. Table of Contents Introduction Slide 3 Demographic & Geographic Trends Slides 4-17 Purchasing Power & Spending Patterns Slides 18-24 Media & Technology Usage Slides 25-28 Advertising to African-Americans Slides 29-32 Marketing and Advertising Slides 33-38

  3. According to the U.S. Census Bureau, the African-American population reached 39.6 million in 2009 (12.9% of the U.S. population), making them the second largest minority group. Source: U.S. Census Bureau Annual Population Estimates 7/09, released 6/10

  4. A Demographic Profile

  5. Key Census Bureau Facts • The African-American population is 52% female to 48% male. • The African-American population is younger with a median age of 31.3 years compared to non-Hispanic whites at 41.2 years. • African-American households are slightly larger than the average non-black households – 2.6 persons vs. 2.5 persons. • The African-American household is slightly more likely to have children under 18 (0.8 persons vs. 0.6 persons for whites and others). • 83% of African-Americans 25 years and older completed high school or a higher level of education in 2009. • 33.8% of African-Americans were enrolled in college in 2009. Source: U.S. Census Bureau, Annual Estimates 7/09; Bureau of Labor Statistics 10/09

  6. African-American Population is Younger than Non-Hispanic White Population Source: U.S. Census Bureau Annual Population Estimates 7/09

  7. Completed 4 Years of College or More: U.S. Total & African-American for Population 25+ 73% More African-American Adults are College Grads in 2008 vs. 1990 Source: U.S Census Bureau, Current Population Survey, 7/09

  8. Educational Attainment Percent of “25 and Over” in African-American Population in 2008 Source: U.S Census Bureau, Current Population Survey, 7/09

  9. Types of Housing • 46% of African-American consumers own their own homes. • There are 32% of African-American homeowners with mortgages. • 14% of African-American homeowners are without mortgages. • 54% of African-American consumers are renters. Source: Average annual expenditures and characteristics, Consumer Expenditure Survey, 2008 (latest data available)

  10. Household Income Percent Distribution of Income for Households in 2007 Source: U.S Census Bureau, Current Population Survey 2008 (latest data available)

  11. Geographic Patterns

  12. The Nation’s New Mix Source: L.A. Times, Based on Census 2000

  13. Five States with the Largest African-American Population • New York 3.35 million • Florida 2.98 million • Texas 2.98 million • Georgia 2.97 million • California 2.45 million Source: U.S. Census Bureau Annual Population Estimates 7/09

  14. Washington, D.C. Has the Largest Percentage of African-Americans in Its Total Population • Washington, DC 54.0% • Mississippi 37.2% • Louisiana 32.1% • Georgia 30.2% • Maryland 29.7% Source: U.S. Census Bureau Annual Population Estimates 7/09

  15. Majority of African-Americans Lived in the South In 2008 Source: US Census Bureau Annual Population Estimates 7/09

  16. Top 25 African-American TV Markets % Total African-American TV HH Cume % African-American TV HH DMA Market African-American TV HH Rank 1 New York 1,256,380 8.9 8.9 2 Atlanta 664,860 4.7 13.6 3 Chicago 589,240 4.2 17.8 4 Washington, DC 571,980 4.1 21.9 5 Philadelphia 551,070 3.9 25.8 6 Los Angeles 475,180 3.4 29.1 7 Detroit 378,730 2.7 31.8 8 Houston 377,960 2.7 34.5 9 Dallas - Ft. Worth 368,640 2.6 37.1 10 Raleigh-Durham 302,670 2.2 39.3 11 Baltimore 297,580 2.1 41.4 12 Miami 297,110 2.1 43.5 Source: Nielsen Media Research DMA and Demographic Rank, January 2011

  17. Top 25 African-American TV Markets % Total African-American TV HH Cume % African-American TV HH DMA Market African-American TV HH Rank 13 Memphis 268,620 1.9 45.5 14 Charlotte 220,560 1.6 47.0 15 Norfolk 219,690 1.6 48.6 16 Cleveland 210,780 1.5 50.1 17 St. Louis 193,670 1.4 51.5 18 Birmingham 180,510 1.3 52.8 19 San Francisco 180,350 1.3 54.0 20 New Orleans 175,000 1.2 55.3 21 Orlando 173,730 1.2 56.5 22 Tampa-St. Pete. 169,960 1.2 57.7 23 Richmond 159,090 1.1 58.9 24 Jackson, MS 148,610 1.1 59.9 25 Columbia, SC 144,170 1.0 60.9 Source: Nielsen Media Research DMA and Demographic Rank, January 2009

  18. Purchasing Power & Spending Patterns

  19. Buying Power of African-Americans According to estimates from the University of Georgia’s Selig Center for Economic Growth: • The nation’s black buying power will rise from $318 billion in 1990, to $910 billion in 2009, to $1.1 trillion in 2014, up by 257% in 24 years. • This overall percentage gain outstrips the 189% increase in white buying power and the 206% increase in total buying power (all races combined). Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  20. Share of Total Buying Power • In 2014, African-Americans’ share of U.S. buying power will be 8.7%, up from 8.5% in 2009 and up from 7.4% in 1990. • Nationally, African-American consumers will account for almost nine cents out of every dollar that is spent. Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  21. Factors Leading to Gains in African-American Buying Power • Population growth is faster than the total population and the African-American population is younger. • From 1990 to 2009, the black population grew by 28.8% compared to 16.8% for the white population and 23% for the total population. • Another factor is African-Americans’ rising levels of education. Census data show that the percentage over 25 who have completed high school or college rose from 66.2% in 1990 to 83% in 2008. • Gains also reflect an increasing number of African-Americans who are starting and expanding their own businesses. • Larger proportions of African-Americans are either entering the workforce for the first time or are moving up from entry-level jobs. Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  22. Top 10 States for African-American Buying Power State Totals in Billions 1 New York $ 86 2 Texas $ 72 3 California $ 62 4 Georgia $ 61 5 Florida $ 61 6 Maryland $ 52 7 Illinois $ 45 8 North Carolina $ 41 9 Virginia $ 38 10 New Jersey $ 35 Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  23. States With Largest Growth in African-American Buying Power State % Increase 2000-2009 1 Montana 311 2 Idaho 261 3 Wyoming 252 4 North Dakota 186 5 South Dakota 183 6 Maine 179 7 Hawaii 156 8 Utah 154 9 Vermont 150 10 New Mexico 143 Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

  24. Top African-American Average Annual Consumer Expenditures Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2008 (Latest information available)

  25. Media Usage/Technology Usage

  26. African-Americans View Almost 40% More TV Than the U.S. Average Weekly Tuning per TV Household (Hours: Minutes) Source: Nielsen Media Research, Television Audience 2009

  27. Cable Plus ADS Hasn’t Increased Since 2007 in African-American TV Households Cable Plus ADS % penetration in TV HH Source: Nielsen Media Research, Television Audience 2009

  28. African-American Internet Usage • eMarketer reported data from an Internet Innovation Alliance study that showed 40% of African-Americans use the Internet regularly, with 19% using it all the time. • Another 27% were considered occasional users. • 21% of African-Americans never use the Internet and 11% said they use it rarely. • African-American respondents were nearly twice as likely as Hispanics to never go online. • The top Internet activities for African-Americans were: keeping in touch with friends and family, education-related activities, accessing information like weather data, and work-related activities like job searching. Source: eMarketer 12/30/09

  29. Advertising Campaigns Targeted to African-Americans

  30. General Mills Increasing Spending in African-American Marketing Programs • In an expansion of the Feeding Dreams program, the new campaign focuses on grassroots efforts, media relations, and an increase in digital outreach. • Feeding Dreams kicked off its second year on August 3rd by honoring local heroes in 4 markets: Memphis, Norfolk, VA, Birmingham, and Charlotte, NC. • The expanded online presence includes: a Web site, Facebook page, Twitter account, and YouTube Channel. • According to Kimberley Bow Sundy, Manager of PR and Multicultural Marketing, “In tough economic times, you have to look at consumer segments who are very brand-loyal and figure out how you can really enhance your dialogue with them.” Source: targetmarketnews.com 7/30/09

  31. Ford Is the Exclusive Automotive Partner of the 2009 Essence Music Festival • Ford sponsored the Essence festival in New Orleans over the July 4th weekend, with Beyonce as the headlined artist. • The Essence festival is the nation’s largest annual gathering of African-American music and culture, and is unique because it includes 3 days of free empowerment seminars. • Unique programs were created for New Orleans, like sponsorship of the Women’s Day Seminar, to vehicle ride and drive opportunities with the 2010 Ford Fusion Hybrid. • Other activities include a Ford-sponsored Steve Harvey Morning Show Live Broadcast and books signing, a Ford Fusion Hybrid Giveaway as part of their Women Driving Progress Program, a special Lincoln-sponsored T.D. Jakes Tribute, and sneak previews of its newest products. Source: targetmarketnews.com 6/11/09

  32. Mandela Day 2009: “Two Hands” • Celebrated for the first time ever on July 18th in New York City. • Advertised through video, print, outdoor and online efforts. • Advocated that New Yorkers volunteer 67 minutes of service to others. • The 67 minutes are representative of the 67 years Mandela dedicated to fighting social justice.

  33. African-American Marketing and Advertising

  34. African-Americans Show Strong Reconnection to Heritage • According to the Yankelovich MONITOR Multicultural Marketing Study 2006, 67% of African Americans say (vs. 43% of Non-Hispanic Whites), “My roots and heritage are more important to me today than they were just five years ago.” • 59% of African Americans (vs. 22% of Non-Hispanic Whites) say they, “make a great effort to become more connected with my heritage.” • “The strong connection and/or reconnection to heritage being observed among African Americans suggest marketers need to pay specific attention to the individual cultures. Marketers need to re-examine how to re-engage with African American consumers and how to best support consumer empowerment,” said McGhee Williams Osse, Co-CEO of Burrell Communications. Source: Business Wire, 8/11/06

  35. Attitudes on Being on the Cutting Edge • Nearly half of African-Americans feel the need to dress in the latest fashions and keep up with the newest styles. • Nearly half also feel the need to keep up with the latest trends in movies, music and TV. • There is also a growing number of early adopters and trendsetters within the African-American community. Source: Don Coleman Advertising/Yankelovich & Partners African-American Monitor

  36. How to Reach this Lucrative Market • Creative executions need to be relevant. • Casting alone does not make an ad or spot targeted toward African-Americans. • Message must be direct, without alienating other consumers who may see it. • Attention to detail is a must, since African-Americans are very perceptive of and attuned to nuances within advertising. Source: Don Coleman Advertising

  37. Best Creative Ads • Don’t assume all African-Americans like rap music. • Don’t assume all African-Americans live in urban areas. • Don’t assume all African-American women are single mothers. • Create ads that are engaging, insightful, respectful of and relevant to the marketplace being targeted. Source: Don Coleman Advertising

  38. Best Creative Ads Include: • Relevant casting • Music • Use of relevant celebrities (actors, musicians, athletes) • Eye contact with the consumer • Advertisements that are aspirational, youthful, and energetic in their tone Source: Don Coleman Advertising

  39. Thank You

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