Hispanic consumers over-index on cause-related purchases, Nielsen finds

Dive Brief:

More than half (57%) of Hispanic consumers say they are more likely to purchase from brands that support causes that they care about, over-indexing non-Hispanic white consumers by 9%, according to new Nielsen research. Forty-three percent say they expect the brands they buy to support social causes, over-indexing by 26%.
Among Hispanics, 52% spend at least one hour per day on social media, compared to 38% of non-Hispanic whites. Twenty-four percent of Hispanics spend three or more hours per day on social media versus 13% of non-Hispanic whites. Hispanics also share social media content five times more often. Eighty-two percent of Hispanics say that the internet is one of the best ways to gather product and service information, and 78% say the internet is a great way to make purchases. Hispanics are also more likely to read online reviews before buying a product, and 38% like reviewing and rating products online.
Fifty-three percent of U.S. Hispanics say they prefer products that offer the latest technology, and 36% report having several gadgets, compared to non-Hispanic whites at 32%. Younger generations tend to influence older generations, as 27% of Hispanics live in multigenerational households. Hispanics age 50 and older over-index by 36% for their preference for a lot of gadgets.

Dive Insight:

Nielsen’s new research highlights a number of behaviors among Hispanics that can help marketers with future digital campaigns targeting the demographic. The U.S. Hispanic population continues to grow and reached 58 million in 2016, according to MediaPost. Yet, marketers often aren't going far enough to directly target Hispanics.

One key finding in the Nielsen research is that the average age of Hispanic consumers is 27 versus 42 for non-Hispanic whites. Most of these consumers, or 60%, were born or grew up in the digital age, and technology is an important part of their shopping, communications and media consumption.

This is in contrast to general Gen Z consumers, a group research has shown to have a complex relationship with technology and social media, despite being "digital natives." While most Gen Zers own smartphones, just 22% use the devices to make purchases, with most preferring to interact with brands in person, a recent study by UNiDAYS and Ad Age Studio 30 found.

Marketers should note the finding that a majority of Hispanic consumers prefer to purchase from brands that support a cause. Taking a stance on a social or political issues can be good for business, as brands with a purpose grow two-times faster than others, Kantar Consulting research found. Incorporating more diversity in campaigns could also help marketers better reach Hispanic consumers.

Mazda is one brand that has been working to build brand awareness with Hispanics. Last year, the company extended its Driving Matters campaign with a digital-first effort targeting Hispanic audiences. Internal research by the automaker found that more than 12 million Hispanics in the U.S. identified with its brand philosophy but weren't familiar with the brand itself. Mazda also attempted to tap into the affinity for Japanese-made products and worked with Hispanic media outlets, like Telemundo and Univision.