OFM_AA_Final
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![Page 1: OFM_AA_Final](https://reader035.fdocuments.in/reader035/viewer/2022062904/5879fef71a28ab70298b7e35/html5/thumbnails/1.jpg)
An Untapped Segment: African-Americans
By: Jeremy DivinityMarch 12th, 2015
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Never before has reaching the African-American (AA) consumer been so critical for marketers, the AA consumer market is a thriving, growing segment – and one that spends well for what it wants and needs
Why target African-Americans(AA)?
Growth rate outpaces the total population by almost 30% As their influence continues to grow, partner with them as
market leaders Data shows they are incredibly brand loyal – much more than the general market – and they place a high value on brands Source: http://brandedcontent.adage.com/pdf/CABblackconsumer.pdf
The AA market represents tremendous growth opportunity that can make a difference in your ability to not only win, but win big in a new diverse 21st century
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Demographic Profile
• Increasing Purchase Power • Highly influential and ad-receptive• Collectively spend $156.9 billion annually on non-essentials• Largely image-conscious and brand focused Source: Experian
African-Americans are less likely to be influeced by friends for purchase decisions and instead are more likely to be influenced by advertising
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Brand Champions
For marketers of luxury goods, automobiles, entertainment and household products, goods and services, this suggests that the AA market is a growth segment worth investing in
AA consumers are brand champions who can influence the general market
Ranging from cars to packaged goods, the AA propensity for buying branded, high-ticket and high-margin items makes them more loyal and profitable customers than any other consumer segment
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Money Talks
“We know that there is a significant business opportunity in reaching African-American consumers, who comprise 13 percent of the population and have a spending power of over $949 billion,” — NY Times: Media Decoder; A Site to Help Marketers Appeal to African Americans, 2011
The spending power of the AA demographic will increase 25% by 2015, increasing from $957 billion to $1.2 trillion – making the demographic a priority audience for brands to reach Source: Media Post: African-American Demos Express Ethnic Identity Differently, 2012
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Millennial Influencers
The majority of African-Americans are under 30 years old (47%)
Millennial African-Americans continue to play a significant role in defining emerging and pop culture, which is often adopted by the broader consumer market
Millennial African-Americans are critical to engage and connect with as their disposable income grows in the next decade
African-American Millennials are:• Key Influencers• Early Innovators• Trend Setters• Style Leaders
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Industry Opportunities
“Black consumers are more likely to plan to buy or lease a car or truck within the next six months (27.4 percent) than all adults 18 and older (16 percent).” —BIGinsights
With improving socio-economic status, the AA market represents a major untapped customer acquisition opportunity
“Black consumers spend an average of $12.55 on fast food each visit compared with non-Black consumers, who spend an average of $11.47 per visit.” —BIGinsights
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OUTFRONT Opportunities
With sizable numbers and favorable responses to advertising, engage and reach this “always-on” audience with relevant messages using OUTFRONT MEDIA
OUTFRONT Media offers outstanding value and a variety of formats that can effectively reach the sizeable, increasingly mobile, and active AA consumer market
AA consumers are more likely than the average American to consider a range of advertising types as purchase influencers, while being less likely to rely on word-of-mouth - Experian Marketing Services (2013)
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Key Areas of Coverage
Despite African-Americans’ sizable numbers and favorable response to advertising, just 3% of major media ad spending is targeted to them, according to a recent study from Nielsen (2014)
Prime Areas of Coverage:Blue Collar– Harlem, Washington Heights, Bronx, Staten Island
Mass Affluent – Brooklyn, Lower Manhattan, Queens
Aspirational Leaders– Long Island, Upper Eastside
The New York Metro AA population is the largest of any city in the United States
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New York City Media Coverage
Reach this ad receptive audience by partnering with OUTFRONT Media, as our coverage will deliver a simple direct message that cannot be turned off or put down unlike TV, radio, or print
Bus – Drive your message to potential customers with this highly visible medium that circulates in and around AA communities, easily seen by both pedestrians and commuters
Posters – Reach highly mobile AA pedestrians as well as those in autos with this “mini-billboard”
Billboards – African American’s are more receptive than the general market to billboards. Raise awareness, provide information, and broaden your influence using billboards placed in key areas throughout the city
Walls – Provides large-impact message capability in and around AA neighborhoods
Subway – Up close and personal advertising format(s) that offer the ability to delivery tremendous stopping power, eye catching ability, and providing info in a relevant and convenient manner
Urban Panels – Increase brand familiarity and awareness with eye level placements located on key street intersections around NYC