Forecast: Multicultural media spending to push $28b next year
The growth rate for 2019 is expected to come in at just over 4%, to reach $27 billion despite the fact that there weren’t an abundance of national or global events where brands could place their ad dollars.
“The multicultural media market is fast becoming a critical consumer segment for brand marketers that want to accelerate growth and increase overall U.S. market share, as multiethnic consumers, including Hispanic, African and Asian Americans, constitute the fastest growing demographic in the country. Nevertheless, multicultural media growth has slightly underperformed the broader U.S. media industry and it still accounts for a mere sliver of the American pie,” said PQ Media President & CEO Patrick Quinn. “To put this into context, consider that multicultural consumers comprise nearly 40% of the total U.S. population, yet multicultural media investments draw only 5.2% of overall U.S. media spending.”
The bulk of the multicultural spend is going into the Hispanic segment (5% share or $17.94 billion ad dollars), but the Asian American segment is seeing the highest spending growth rate (7% to reach $722 million).
Where are the ad dollars flowing? The majority continue to go into TV, which generated just over $7.6 billion in revenues (2018 spending), but marketers are pushing dollars into relationship and experiential marketing segments, as well. Meanwhile, social marketing efforts, including influencer and content marketing each increased by about 11% in 2018, making them the fastest-growing platforms for multicultural spending.