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A comprehensive analysis by Newlin

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Their importance cannot be overstated. Born between 1981 and 1996, Millennials are today’s largest cohort, making up 25 percent of the population. The Millennial generation is the largest in U.S. history- even larger than the Baby Boom - consisting of 92 million Millennials. Within that number, 1 in 5 are Hispanic (U.S. Census Bureau 2012).

Hispanic Millennials are essential to companies’ marketing strategies and they are the future of America’s population. Today the Hispanic population accounts for 17 percent of the total U.S. population. By 2050, it is expected to increase 167 percent, making Hispanics the fastest growing subgroup in the American marketplace.

Their sheer size alone commands attention. However, Hispanic Millennials are also active consumers, more so than others in their generation. Hispanic Millennials’ retail spend is 10 percent greater than other Millennials (Nielsen 2013).

As this generation continues to age and grow financially, their significance to marketers will only increase. Knowledge of Hispanic Millennials’ choice of language, media platforms, core values and habits all play an essential part for companies in truly understanding this population to create effective communications.

Which language resonates with them?

When attempting to reach U.S. Hispanic Millennials, one of the first questions and biggest doubts becomes: which language? Hispanic Millennials are different from overall U.S. Hispanics in two fundamental ways: two-thirds are U.S. born and 40 percent are bilingual. This diversity in citizenship and native language creates further subgroups and complexity within the Hispanic subgroup of the Millennial generation. Caught between the cultures of their country of origin and their American identity, Hispanic Millennials are linked to both Spanish and English.

In partnership with Univision, Nielsen recently released a study on how to choose between languages to maximize impact with this emerging population. Their findings revealed the deep emotional ties to Spanish for Hispanic Millennials. Overall, Spanish ads drove emotional engagement more successfully than their English counterparts.

However, during English programming, Spanglish advertising strengthens relevance for bilingual consumers. When Spanglish ads followed English programming, bilingual Hispanic Millennials were highly emotionally engaged at the beginning of the ad.

The simple answer when choosing between Spanish and English? There is no easy answer. Marketers must be able to navigate through the differences in the subgroups of the Hispanic Millennial population to choose the language for their messaging that will resonate best with the level of acculturation of their target audience.

In recent years, there has been a flood of information on Hispanic Millennials. A hot-button issue

among marketers and the companies they represent, Millennials have become the new buzzword in the

marketing circles. But, why are Hispanic Millennials so important? And what makes them different

from their non-Hispanic Millennial counterparts? Newlink America analyzed the latest

studies to create one comprehensive roadmap on how best to connect with

today’s Hispanic Millennial. How do I reach them?

In a word, online.

Hispanic Millennials are highly digitally engaged and differ from both previous generations and their other Millennial counterparts. They over-index on digital and mobile technology usage, and marketers need to be aware of this when strategizing for how to communicate effectively.

This digital engagement translates into opportunities for engaging with Hispanic Millennials via social media. They have two times higher brand engagement through social media, and are two times more interested in receiving ads on mobile phones (Experian 2013). In fact, they expect it. Hispanic Millennials are looking to interact with the brand, and expect a personalized experience where they can share experiences and recommendations.

Online shopping is another field in which Hispanic Millennials’ digital habits exceed those of other Millennials. They are much more likely to shop online than their non-Hispanic cohorts. 33 percent of Hispanic Millennials report going online to make local purchases compared to just 26 percent of non-Hispanic Millennials (BIA/Kelsey Consumer Commerce Monitor Study 2013).

Surprisingly, Hispanic Millennials are also highly engaged with radio. They spend more than 11.5 hours each week tuning in, and the percentage of Hispanic Millennials using the medium is an unexpected 93.6 percent.

What do they value?

The importance of family takes the forefront of the Hispanic Millennial value system, with the majority of the population living in multigenerational households with close ties to their parents. They consume more meals at home, and are more likely to live with children in the home than non-Hispanics.

Hispanic Millennials value their health. They rate their overall health more positively compared to non-Hispanic Millennials, and are more in favor of the Affordable Care Act. Not surprisingly, Hispanic Millennials are also more likely to adopt technology into their health maintenance.

The importance of religion is falling off with the younger generation of Hispanics. Although both Hispanic Millennials and Millennials overall say they have no particular religion or are atheist or agnostic, there is a notable difference between Hispanic Millennials and the previous generation. Hispanic Millennials are less likely to attend religious services, and there is a gap between Hispanic Millennials and Hispanics overall when it comes to how many say religion is “very important” in their lives.

Connecting with the U.S. Hispanic Millennial Population

Companies have an enormous opportunity to market to this unique population, but Hispanic Millennials’ habits and values must be understood to successfully reach and engage them. Hispanic Millennials are an emerging population of great significance for marketers, but they require a strategic approach that differs from efforts toward the overall Millennial population and previous Hispanic generations.

We can help.

Communicating with the Hispanic Millennial population is a challenge that requires a deep understanding of its nuances and diversity. We are here to help clients forge stronger relationships with this emerging market by establishing meaningful connections and effectively engaging with Hispanic Millennials through culturally competent communications.

33%

92 MILLION MILLENNIALS

IN THE U.S.

1 5

26%

OF HISPANIC MILLENNIALS

OF NON-HISPANIC MILLENNIALS

VS.

report going onl ine to make local purchases .

report going onl ine to make local purchases .

INOF ALL MILLENNIALS ARE

HISPANIC

32

Larger than the Baby Boom generation, Millennials are today’s largest cohort.

In key markets like LOS ANGELES MIAMI HOUSTON NEW YORK CHICAGO

Hispanic Millennials represent

25%

25-50%

1981-1996

DEMOGRAPHICS

MEDIA USAGE

HISPANIC MILLENNIALS

THEY MAKE UP

BORN BETWEEN

OF THE POPULATION

1 IN 5 MILLENNIALS ARE HISPANIC

OF ALL MILLENNIALS

KEY FACTS AND FIGURES

Hispanic Millennials are highly digitally engaged, and lead other subgroups in digital usage and digital media consumption.

HISPANIC MILLENNIALS

REST OF MILLENNIALS

VS.

REPORT GOING ONLINE TO MAKE LOCAL PURCHASES

REPORT CHECKING INTO LOCAL BUSINESS IN THE PAST 6 MONTHS

THEY SPEND MORE THAN

OF HISPANIC MILLENNIALS USE THE RADIO

EACH WEEK LISTENING TO RADIO

26% 58%

33% 76%

93.6%

11.5 HOURS

LIFESTYLE AND CULTURE

FAMILY

RELIGION

FINANCIAL

Close family ties are an important characteristic of the Hispanic Millennial that sets them apart from their generation.

Hispanic Millennials align closely with U.S. Millennials in their views towards religion. However, this viewpoint has separated them from their parents’ generation, illustrating the differences in reaching U.S. Hispanics depending on age and acculturation.

Say they have no particular religion or are atheist or agnostic.

In the last decade alone, the number of Hispanic Millennial-led households earning between

Hispanic Millennials’ retail spend

Young Hispanics between the ages of 20 and 29 carry around

An increase of

(Nielsen Hispanic Retail 360)(Nielsen 2013) (PNC Bank study)

5

Hispanic Millennials praying outside of services

Say they attend religious services at least weekly.

Say religion is “very important” in their lives.

Hispanic Millennials are growing in purchasing power and lead their generation in willingness to spend.

22%

31%9%

NON-HISPANICS

HISPANICS

NON-HISPANICMILLENIALS

HISPANICS

HISPANICS MILLENNIALS

HISPANICMILLENNIALS

34%

39%

28%

31%

22%

THEY HAVE CHILDREN AT THE AGE OF

HAVE CHILDREN IN THE HOUSEHOLD

MILLENNIALS LIVING WITH THEIR PARENTS OR FAMILY

HELP WITH FAMILY FINANCES

28 YRS 23 YRS $

$

48% vs. 67%

R E L I G I O N

31%

46%

$50,000 10

%

$100,000

$10,000 LESS

89%

47%29%

56%

60%

DEBT

4

1 IN 3 OF ALL HISPANICS ARE MILLENNIALS

Please visit

WWW.NEWLINKAMERICA.COMto connect with Newlink America’s team of Hispanic market communications experts.