Us Hispanics Online Demographics

Executive Summary: In 2008, eMarketer estimates there are 23 million Hispanics online, about 52% of the USHispanic population. By 2012, more than 29 million will be online, increasing Internet penetration to 58.6%.

095064

Growth within this population—both online and offline—willcome from native-born Hispanics rather than immigrants.This group of young Latinos is bilingual and proud of itsHispanic origins. Marketers should not assume that their mass-market, English-language campaigns are reaching thisaudience effectively.

The paradox is that the larger this market grows, the morefragmented it becomes. People with heritages and traditionsextending to Latin America often do not share the sameculture or even the same language.

The challenge for marketers is to create relevant messagesthat speak to those traditions and use appropriate references.As noted in previous eMarketer reports, the answer may meancreating multiple executions and strategies.

Key Questions■ How many Hispanics are using the Internet?

■ What language do Hispanics prefer to use online?

■ What do Hispanics shop for online?

■ How do Hispanics use new media?

US Hispanics Online:Demographics

July 2008

Lisa E. Phillips,Senior [email protected]

The First Place to Look Copyright ©2008 eMarketer, Inc. All rights reserved.

US Hispanic Internet Users, 2007-2012 (millions and %of total Internet users)

2007 21.4 (11.4%)

2008 23.0 (11.9%)

2009 24.6 (12.3%)

2010 26.2 (12.7%)

2011 27.8 (13.1%)

2012 29.4 (13.5%)

Note: eMarketer defines an Internet user as any person who uses theInternet from any location at least once per month; Hispanics can be ofany raceSource: eMarketer, May 2008

095064 www.eMarketer.com

The eMarketer View 2Demographic Dynamics 3Online Activities 10Conclusion 15Endnotes 16Related Information and Links 17

US Hispanics Online 2

The eMarketer View

096600

What does “Hispanic” mean?

According to the US Census Bureau, Hispanic-Americans,also called Latinos, are those who came to the US fromMexico, Puerto Rico, Cuba, or Central or South America.Hispanic-Americans can be of any race.

Offline demographics for the US Hispanic population are impressive.The most recent data shows the total Hispanic population increasedby 3.3% to 45.5 million people as of July 1, 2007, according to the US Census Bureau.As the fastest-growing segment of the USpopulation, Hispanics are projected to make up 29% of the total in2050, from 15.1% in 2007.

Growth within this population was responsible for one-half of theUS population gains between 2000 and 2007. Since 1990, thenumber of Hispanics in the US has increased by 85%, comparedwith just an 18% growth rate overall, according to the Selig Centerfor Economic Growth.

The source of growth has changed, however.While immigrationcaused the Hispanic population to swell in the 1990s, native birthsaccount for the recent surge and will remain the catalyst through2050, according to the Census Bureau. In 2006, native-bornHispanics made up about 56% of the Hispanic population,compared with 44% who were foreign-born, according the PewHispanic Center.

Economic growth is expected to occur in tandem. By 2012,Hispanic consumers will spend $1.2 trillion of the total $13 trillionprojected by the Selig Center for Economic Growth at theUniversity of Georgia’s Terry College of Business.

086882

“The Hispanic population has taken on amomentum of its own. If you close theborders tomorrow, there is still going to be alarge Hispanic increase.” —Kenneth Johnson,seniordemographer at the University of New Hampshire’s CarseyInstitute,quoted in The Wall Street Journal,May 1,2008

The online Hispanic population will be growing, too—from 21.4 million in 2007 to 29.4 million in 2012, eMarketer projects.Internet penetration will rise from about 52% this year to almost59% in 2012. Between 2007 and 2012, the compound annualgrowth rate for Hispanic Internet users is projected to be 6.6%.

However, Internet penetration within the Hispanic population stilllags that of other groups. For example, 68.6% of non-Hispanicwhites were Internet users last year, as were 74.8% of Asian-Americans and 53.8% of African-Americans.

Yet Hispanics do not constitute a homogeneous market. Languageand degrees of acculturation and assimilation vary by circumstancesof age,nationality,education and income.Second- and third-generation Hispanics who have at least one parent or grandparentborn in another country may have high levels of acculturation (thatis, the modification of a group based on its contact with anothergroup),but they themselves may have not fully assimilated into theculture (that is, fully adopted US customs and attitudes).

Key eMarketer Numbers — Hispanics Online

29.4 million US Hispanic Internet users in 2012, up from 21.4million in 2007

58.6% US Hispanic Internet users % of total US Hispanicpopulation in 2012, up from 50.0% in 2007

13.5% US Hispanic Internet users % of total US Internetusers in 2012, up from 11.4% in 2007

Note: eMarketer defines an Internet user as anyone who uses theInternet from any location at least once per month; Hispanics can be ofany raceSource: eMarketer, July 2008

US Consumer Spending, by Race/Ethnicity, 2007 &2012 (billions)

Hispanic

$860

$1,200

African-American

$845

$1,100

Asian

$459

$670

American Indian

$57

$77

2007 2012

Source: Selig Center for Economic Growth, "The Multicultural Economy2007: Minority Buying Power in the New Century" as cited in press release,July 31, 2007



The eMarketer View

These psychographic characteristics are spelled out in manymarket research reports and correlate to Internet and media use.For example, a major study by Terra.com and comScoreconducted in February 2008 examined the attitudes and mediahabits of 3,573 Hispanics based on their degree of acculturation. Ingeneral, they found that Hispanics with strong positive feelingsabout their heritage tended to speak Spanish in family settings butpreferred to speak English in outside work and social settings, aswell as online.These respondents embraced technology, ownedmore electronic devices and were more likely to consider theirmobile phone their primary phone.

Young Latinos are predominantly bilingual and proud of theirheritage, according to the Latino Intelligence Report recentlypublished by The Intelligence Group.When a group of 14-to-34-year-old Hispanics was asked what percent of the US theybelieved to be Hispanic, the average response was 40% (15% is theactual figure). Nearly 60% said they had a strong connection withLatino culture.

To reach Hispanic consumers online, marketers must take a morenuanced approach, going beyond language preference to targetniches within this demographic. Marketers should be aware thatpeople of Mexican heritage respond to different cultural cues thando Peruvians or Colombians, for example.Where they live now—from Miami to Minneapolis—also shapes attitudinal differences.Online campaigns that target local markets with local referenceswill resonate more than a one-size-fits-all approach.

“It’s not so much about the language. It’sabout being relevant. Online consumers arecapable of navigating sites in English andSpanish.” —Fernando Rodriquez, CEO,Terra.com, in aninterview with eMarketer, June 26, 2008

Demographic Dynamics

The Hispanic market today is young and growing.

For young Hispanics especially, their brand loyalties are beingformed as marketers attempt to reach them through English- andSpanish-language Websites.

The older Hispanic population (ages 55 and older) dips in and outof the Internet, not staying perhaps because most online retailersand marketers do not offer Spanish-language content.This is amarket that begs to be tapped now. Even as these Internet usersage, they are building the same legacies online that otherdemographic groups do—via e-mail, photo-sharing and onlineshopping activities.

There were 45.5 million people claiming Hispanic origin in the USin 2007, making up 15.1% of the total population, according to thelatest Census Bureau estimates.The figures show Hispanicsremain the fastest-growing minority group, increasing almost 28%between 2000 and 2007.

096216

US Population, by Race/Ethnicity, July 2000 & July2007

White

Hispanic

Black

Asian

American Indian or Alaska Native

Native Hawaiian or other PacificIslander

Total

July 1, 2000

231,980,517

35,648,985

37,231,316

12,121,675

4,236,189

910,595

282,194,308

July 1, 2007

245,373,882

45,504,311

40,744,132

15,165,186

4,536,857

1,019,301

301,621,157

% change

5.8%

27.6%

9.4%

25.1%

7.1%

11.9%

6.9%

Note: numbers do not add up to total because categories include eachrace alone or in combination with othersSource: US Census Bureau, Population Division, "Annual Estimates of thePopulation by Sex, Race and Hispanic Origin for the United States," May 1,2008; eMarketer calculations, July 2008




The Hispanic population now exceeds 500,000 in 16 states, led byCalifornia with 13.2 million,Texas (8.6 million) and Florida (3.8 million).Those of Mexican descent hold a clear majority of the US Hispanicpopulation,at 65.5% in 2006, the Census Bureau estimates.

096598

Males outnumber females in the Hispanic population, contrary tothe ratio in the general population. In 2007, the Census Bureaureported 23.5 million Hispanic males to nearly 22 million females,or 107 Hispanic males per 100 Hispanic females. By contrast, theoverall population had 97 males for every 100 females.

096225

The same gender dominance occurs within the Hispanic Internetpopulation. Some 64% of male Hispanics used the Internet in early2007, compared with just 59% of Hispanic female respondents,according to the Yankelovich “2007/2008 MONITOR MulticulturalMarketing Study.”

088658

Hispanic male consumers were more likely to go online everyday—27% of male respondents to the Yankelovich survey did socompared with only 17% of female respondents.

Males were also less likely to say they had never used the Internet,at 34%, compared with 38% of females.

088657

US Hispanics, by National Origin, 2006 (% of total)

Mexican 65.5%

Puerto Rican 8.6%

Central American 8.2%

Cuban 8.2%

Other Hispanic 8.0%

South American 6.0%

Source: US Census Bureau, "Current Population Survey, Annual Social andEconomic Supplement," 2006


US Hispanics*, by Gender, July 2000 & July 2007(millions)

July 1, 2000

18.35

17.30

July 1, 2007

23.52

21.98

Male Female

Note: numbers may not add up to total due to rounding; *alone or incombination with other racesSource: US Census Bureau, Population Division, "Annual Estimates of theHispanic Population by Age and Sex for the United States," May 1, 2008


US Internet Users, by Race/Ethnicity and Gender,March-April 2007 (% of respondents in each group)

Male

65%

64%

82%

Female

67%

59%

79%

African-American Hispanic Non-Hispanic white

Note: n=1,575 African-American, 1,249 Hispanic and 1,115 non-Hispanicwhite; ages 16+; numbers may not add up to 100% due to roundingSource: Yankelovich, "2007/2008 MONITOR Multicultural Marketing Study,"provided to eMarketer, September 17, 2007


Frequency of Internet Use Among US HispanicConsumers, by Gender, March-April 2007 (% ofrespondents in each group)

Every day

27%

17%

Almost every day

11%

15%

Weekly

9%

7%

A few times a month

8%

8%

Almost never

8%

12%

Never

34%

38%

Don't know/no answer

2%

3%

Male Female

Note: n=642 male and 607 female; ages 16+; numbers may not add up to100% due to roundingSource: Yankelovich, "2007/2008 MONITOR Multicultural Marketing Study,"provided to eMarketer, September 17, 2007




In fact, males are more heavily engaged online than are females,according to the Terra/comScore survey.They make up 57% of the“heavy online engagement” segment, and females just 43%.Thegender breakdown on medium engagement is an even split, whilemore females fall into the “light online engagement” segment.(Terra worked with comScore to develop an algorithm based onquestions about online activity with weighted responses.) Heavyonline engagement implies almost constant Internet access, whilemedium engagement implies an almost-daily connection. Lightonline engagement is characterized by less than daily or weeklyInternet access.

096602

For additional information on the above chart, seeEndnote 096602 096605 in the Endnotes section.

Hispanics are much younger than the US population as a whole—the median age is 27.6 years, compared with 36.6 years for thegeneral US population.Almost 34% are under age 18, comparedwith 25% of the non-Hispanic population.Another 33% ofHispanics are between ages 25 and 44.

096224

Likewise, the Hispanic Internet population skews young.TheTerra/comScore survey showed 45% of heavy online users wereunder age 25, as were 46% of medium online users and 37% oflight online users.The median age of heavy online users was 27years, compared with 26 years for medium and 33 years for lightengagement online.

096605


Level of Online Engagement Among US HispanicInternet Users, by Gender, February 2008 (% ofrespondents)

Heavy online engagement

57%

43%

Medium online engagement

50%

51%

Light online engagement

40%

60%

Male Female

Note: numbers may not add up to 100% due to roundingSource: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008


US Hispanics*, by Age, July 2000 & July 2007 (millionsand % change)

July 1, 2000

July 1, 2007

% change

<5 3.70 4.92 32.97%

5-13 6.24 7.40 18.59%

14-17 2.44 3.10 27.05%

18-24 4.78 5.12 7.11%

25-44 11.77 15.01 27.53%

45-64 4.92 7.44 51.22%

65+ 1.76 2.51 42.61%

Total 35.65 45.50 27.63%

Note: numbers may not add up to total due to rounding; *alone or incombination with other racesSource: US Census Bureau, Population Division, "Annual Estimates of theHispanic Population by Age and Sex for the United States," May 1, 2008;eMarketer calculations, July 2008


Level of Online Engagement Among US HispanicInternet Users, by Age, February 2008 (% ofrespondents)

<25 25-34 35-44 45-54 55+

Heavy online engagement 45% 26% 19% 8% 2%

Medium online engagement 46% 22% 19% 11% 3%

Light online engagement 37% 15% 25% 14% 9%





Internet AccessThe National Telecommunications and Information Administration(NTIA) counted 72.7 million US households with Internet access in2007. Of that total, 5.9 million US Hispanic households, 43.4% of allHispanic households, had Internet access.The majority of thoseconnections—81%—were made via broadband.

092649

Broken out by language preference, the percentages tell adifferent story.A survey from the Center for Hispanic MarketingCommunication at Florida State University (FSU) gave respondentsthe choice to participate in either English or Spanish.

The results showed that 71% of Hispanic respondents who optedto participate in English had broadband and another 15% plannedto get it. Only 47% of the respondents who chose Spanish wereusing broadband, although 34% said they were planning to switchwithin the next year.

093678

In the same survey, 66% of the respondents interviewed inSpanish had dial-up access, far more than any other group.Asian-American respondents were a distant second, at 48%.About 39%of the Hispanic participants who responded in English were usingdial-up access at the time of the survey.

093677

US Internet Households and Penetration, byRace/Ethnicity and Access Technology, October 2007(thousands and % of total households)

Internet households (thousands)

% of total households

Broadband 59,847 50.8%

White 45,742 54.9%

Black 5,200 36.4%

Hispanic 4,792 35.2%

Asian 3,093 69.1%

American Indian/Alaska Native 192 29.8%

Dial-up 12,575 10.7%

White 9,787 11.8%

Black 1,205 8.4%

Hispanic 1,094 8.0%

Asian 271 6.1%

American Indian/Alaska Native 72 11.2%

Total 72,721 61.7%

Note: total households for 2007=117,840,000; numbers may not add up tototal due to roundingSource: US Census Bureau, "Current Population Survey" as cited by theNational Telecommunications and Information Administration (NTIA),"Networked Nation: Broadband in America 2007," January 31, 2008


US Adult Internet Users Who Have BroadbandInternet Access, by Race/Ethnicity and Language,March 2007 (% of respondents in each group)

Have Plan to have*

Don't have and don't plan to*

Non-Hispanic white 72.9% 12.5% 14.6%

Asian-American 72.1% 16.9% 11.0%

African-American 71.3% 17.4% 11.3%

Hispanic (interviewed in English) 71.2% 15.0% 13.8%

Hispanic (interviewed in Spanish) 47.2% 33.6% 19.2%

Total 67.6% 18.6% 13.8%

Note: n=564 African-American, 502 Asian-American, 493 Hispanicinterviewed in English, 428 Hispanic interviewed in Spanish, 513non-Hispanic white; numbers may not add up to total due to rounding;*within the next yearSource: Center for Hispanic Marketing Communication at Florida StateUniversity and DMS, "The Multicultural Marketing Equation Study 2007:Report #2," March 2008


US Adult Internet Users Who Have Dial-Up InternetAccess, by Race/Ethnicity and Language, March 2007(% of respondents in each group)

Have Plan to have*







Total 44.3% 1.9% 53.8%





Wireless Internet connections were more common amongEnglish-preferring Hispanic respondents than among those who preferred Spanish. Far fewer Spanish-language respondentshad wireless access, at 16.6%, compared with the 36.3% ofEnglish-preferring Hispanics who had already gone wireless at thetime of the survey.

093679

The FSU survey team surmised that affluence was a keydeterminant of Internet access technology.They noted, however,that despite income differences,Asian-Americans and Hispanicsinterviewed in English were more eager to adopt broadband thanothers. Hispanics interviewed in Spanish were more likely thanother groups to want high-speed Internet and wireless accesswithin the next year.

Language OnlineAs the US Hispanic population grows through native births,language preference becomes a matter of personal choice, notnecessarily a foregone conclusion. Many first- and second-generation Hispanics speak Spanish in some settings and Englishin others.

Findings from comScore’s “Young Latinos Online” report, cited bySi TV, summed up the dilemma: 52% of online Hispanics preferredEnglish-language content, while just 22% preferred Spanish and27% listed both languages as their preference. Forrester Researchclaimed 51% of online Hispanics preferred Spanish-languageWebsites and 23% required Spanish online.

Major online publishers and marketers are taking notice, and aremoving from Spanish- or English-only content to a more bilingualapproach. In January,The Wall Street Journal reported thatMicrosoft’s MSN Latino, a Spanish-language site, began offering anad service that targets second-generation Hispanics—those withat least one immigrant parent.The English-dominant ads mix withSpanish-language spots from companies such as General Motors,AT&T and Procter & Gamble.

In June, the Spanish portal Terra, owned by Spain’s phoneconglomerate Telefónica, announced it would add English on itsSpanish-language site and chose the US market to launch anEnglish-language social video bookmarking site, Kazivu.

Terra is heeding its own research. For online transactions, generalbrowsing or reading online ads, the vast majority of onlineHispanics—85% to 89%—preferred English, according to theTerra/comScore study. Only 8% to 12% said they would conductthese online activities in either language, and a mere 3% said theywould prefer Spanish.

094800

Choice of language can depend on the situation or setting,Terra/comScore data shows.Although 40% of online Hispanicadults surveyed said they spoke Spanish exclusively as a child,69% said their personal preference now was to speak English atwork, and 55% said they spoke English in social situations.Anadditional 19% said they “usually” preferred English at work and insocial situations.

“It’s not necessarily about language. It’s moreabout cultural nuances.” —Monica Gadsby, CEO ofStarcom Mediavest’s multicultural group, quoted in TheWall Street Journal, January 8, 2008

US Hispanic Internet Users' Language PreferenceDuring Select Online Situations, February 2008 (% ofrespondents)

Spanish only

Usually Spanish

Spanish & English

Usually English

English only

E-commercetransactions

2% 1% 8% 15% 74%

Surfing theInternet

2% 1% 9% 17% 72%

Viewingonline ads

2% 1% 12% 14% 71%

Note: ages 12+; numbers may not add up to 100% due to roundingSource: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008


US Adult Internet Users Who Have Wi-Fi InternetAccess, by Race/Ethnicity and Language, March 2007(% of respondents in each group)

Have Plan to have*







Total 30.4% 17.9% 51.7%





Language choice relates to levels of acculturation and assimilationbut is not a rock-solid indicator of those personal levels.TheYankelovich survey delved into psychographic characteristics ofits respondents regarding Internet use and found that higherpercentages of respondents in the bicultural and relativelyassimilated categories were Internet users (79% and 74%,respectively), while respondents who self-identified aspredominantly Spanish-speaking were online in fewer numbers(44% and 51%, respectively).

088681


Yankelovich defined its segmentation as:

■ Spanish-oriented/high cultural affinity: 35% of US Hispanics;more fluent in Spanish than English; 89% foreign-born; strongattachment to Hispanic culture

■ Spanish-oriented/low cultural affinity: 15% of US Hispanics;more fluent in Spanish than English; 86% foreign-born; relativelyweak attachment to Hispanic culture

■ Bicultural: 26% of US Hispanics; fluent in English but havestrong understanding of Spanish; 24% foreign-born; strongattachment to Hispanic culture

■ Relatively assimilated: 24% of US Hispanics; more fluent inEnglish than Spanish; 9% foreign-born; relatively weakattachment to Hispanic culture

Frequency of Internet use correlated to cultural characteristics.Spanish-oriented Hispanics with high and low cultural affinitieswere much less likely to go online every day than their bicultural orassimilated counterparts,Yankelovich found.They were also mostlikely to say they never went online at all—45% and 52%,respectively—compared with Hispanic consumers rated biculturalor relatively assimilated (20% and 24%, respectively).

088683


However, the four groups appear much closer when the twoextremes—“every day” and “never”—are taken away. Spanish-speakers, English-speakers, and people with high and low culturalaffinities all went online “weekly,” “a few times a month” and“almost never” in similar percentages.

Spanish-speaking consumers may be underserved by what theyfind—or fail to find—online. In April 2007, Forrester estimated that7.1 million Hispanics were being ignored by companies andpublishers offering English-only content. Its 2007 telephone surveyof 3,000 US Hispanic adults, together with its review of Internet sitesof 100 different brands, found that Dell had 1.5 million customerswho preferred Spanish online, while Best Buy had 2.8 millionSpanish-preferring customers and Bank of America, 1.3 million.

Forrester did not discuss cultural affinity in the context of itsresearch. But determining that millions of consumers findSpanish-language content more attractive is a strong indicationthat other companies would benefit from adding such content.

Frequency of Internet Use Among US HispanicConsumers, by Acculturation Level, March-April 2007(% of respondents in each group)

Every day

Almost every day

Weekly

A few times amonth

Almost never

Never

Don't know/noanswer

Spanish-oriented/

highculturalaffinity

8%

10%

8%

6%

12%

52%

4%

Spanish-oriented/

lowculturalaffinity

17%

11%

6%

10%

8%

45%

4%

Bi-cultural

34%

17%

8%

12%

8%

20%

1%

Relativelyassim-ilated

34%

14%

9%

6%

11%

24%

1%

Total Hispanics

22%

13%

8%

8%

10%

36%

3%

Note: n=1,249 ages 16+Source: Yankelovich, "2007/2008 MONITOR Multicultural Marketing Study,"provided to eMarketer, September 17, 2007


US Hispanic Internet Users, by Acculturation Level,March-April 2007 (% of respondents in each group)

Spanish-oriented/high cultural affinity

44%

Spanish-oriented/low cultural affinity

51%

Bicultural

79%

Relatively assimilated

74%

Total Hispanics

61%





Appealing to Spanish-speaking consumers has potential payoffsin brand loyalty among future generations.As Hispanics becomemore acculturated, there is less evidence of brand loyalty,according Nielsen Homescan research published in September2007. Nielsen found that 70% of Spanish-preferring homespurchased a certain brand of carbonated beverage, while just 33%of English-preferred Hispanic homes stocked the same brand.

The same holds true among Hispanic Internet users in the Forrestersurvey.Those preferring Spanish were slightly more brand-loyal(71%) than English-preferring Hispanics (62%). However, individualswho chose Spanish were more sensitive to price than brand names(51%) compared with those who chose English (39%), and they weremore influenced by recommendations from family and friendswhen making purchases.

087457

This Forrester data illustrates yet again that consumers who preferSpanish content are underserved online—53% agreed with thestatement, “I would research more products on the Internet if Icould do it in Spanish,” while just 5% of English-preferringHispanics said the same.And 42% said they would buy moreproducts online if they could do it in Spanish, compared with 3% oftheir English-preferring counterparts.

“When it comes to brand loyalty and theHispanic consumer, the key learning formarketers is understanding the importanceof building a brand relationship during theinitial stages of acculturation andmaintaining this connection as Hispanics’integration to American life increases.”—Tim Kregor, president, Nielsen Consumer Panel Services,in a press release, September 24, 2007

Online Consumer Behavior of US Hispanic AdultInternet Users, by Website Language Preference, Q12007 (% of respondents)

When I find a brand I like I stick to it

67%

62%

71%

Price is more important to me than brand names

45%

39%

51%

I rely a lot on recommendations from friends or family whenmaking purchases

34%

29%

39%

I would research more products on the Internet if I could do it inSpanish

30%

5%

53%

I would purchase more products on the Internet if I could do it inSpanish

23%

3%

42%

Total English-preferring Spanish-preferring

Note: ages 18+; respondents answered 4 or 5 on a scale of 1 (disagreecompletely) to 5 (agree completely)Source: Forrester Research, "Hispanic Technographics ConsumerTechnology and Marketing Phone Survey, Q1 2007" as cited in ForresterResearch, "Teleconference: Making the Case for a Spanish-Language WebSite," May 23, 2007



Online Activities

The online activities of Hispanic Internet users

match those of the general US Internet

population, albeit in lower numbers. E-mail and

communication are top priorities; entertainment

such as music and movies rank highly, as do

gathering information and shopping.

Nearly nine out of 10 online Hispanics used e-mail, according to theTerra/comScore study.Online banking ranked second (72%),followed by online shopping (69%).Social media activities such asvisiting social networks,blogging, streaming video and using photo-sharing services were on the low end (at 39% or fewer respondents).Other research studies show that younger Hispanic Internet usersare more engaged in these activities than older ones.

094806

The Terra/comScore survey showed high levels of interaction withe-mail across all age groups, the highest being among 25-to-34-year-olds.A full 86% said they checked their e-mail either“constantly” or “several times” a day.

094808

Online Activities* of US Hispanic Internet Users,February 2008 (% of respondents)Read/send e-mail 87%

Online banking 72%

Online shopping 69%

Read news and online magazines 65%

Research products 62%

Online coupons/incentives/rewards 59%

Instant messaging 58%

Play games 57%

Information resources (directories/yellow pages) 55%

Download music 53%

Research travel 50%

Career search 40%

Social networking 39%

Download video 37%

Stream video 37%

Photo printing/sharing services 37%

Stream music 36%

Online auctions 34%

Stream radio 34%

Purchase travel-related products 28%

Discussion boards 25%

Maintain a personal Webpage 24%

Blogging 22%

Online invitations 21%

Podcast 18%

Download a widget 12%

Online trading 10%

Personal dating 9%

Other 2%

None of the above 2%

Note: n=3,511 ages 12+; *conducted in past six monthsSource: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008


Frequency of E-Mail Usage Among US HispanicInternet Users, by Age, February 2008 (% ofrespondents)

12-24 (n= 343)

25-34 (n=

1,495)

35-44 (n= 918)

45+ (n= 717)

Total (n=

3,473)

Constantlythroughout theday

36% 46% 34% 31% 37%

Several timesthroughout theday

47% 40% 47% 46% 45%

About once aday

15% 14% 16% 20% 16%

Less than once aday/not on aregular basis

2% 1% 2% 3% 2%




Online Activities

Hispanic adults who consider themselves influential among theirfriends and families are a source of viral e-mails, more so thangeneral online influentials, according to a Burson-Marstellersurvey.They are the most likely to forward e-mails regardinginteresting Websites they have found, product recommendationsand invitations to events.They send out more stories about news,product warnings and recalls, and information on products,services, political causes and petitions.

094367

However, e-mail did not show up among the leading onlineactivities of Hispanic Internet users in BIGresearch’s “SimultaneousMedia Usage Study (SIMM11)” report, most likely because it wasnot offered as a choice. Instead, information about movies, music,television, sports, weather and social activities ranked in the top 10.Online shopping ranked second in this survey.

095591

Online Shopping Online shopping by all minority groups has increased dramaticallybetween 2003 and 2008, according to The Media Audit.AmongHispanic Internet users, 41.8% are shopping online this year,compared with 27.7% five years ago; 23.5% make five or morepurchases in a year.

In addition, JupiterResearch predicts Hispanic online shoppers willspend $12.8 billion in 2008.That is expected to grow to $21.6 billionin 2011, about 13% of the total that will be spent on e-commercethat year.

Still, some data shows Hispanics are not avid online buyers.Arecent Synovate survey found that 57% of general onlineconsumers had made a recent purchase online, while only 42% ofonline African-Americans and just 25% of online Hispanics haddone so.

English-speaking Hispanics represented 10% of all online buyers in2007, yet 18% of all Internet users who had not purchased anythingonline. In its recent “Online Shopping” report, the Pew Internet &American Life Project noted that the data does not support somehypotheses about online shopping, including the idea thatbroadband connections are a great boost to purchase decisions.

Types of E-Mail Forwarded by US Hispanic vs. TotalAdult E-Fluentials*, 2008 (% of respondents in eachgroup)

Hispanic e-fluentials

Total e-fuentials

Personal e-mails 79% 76%

E-mails with attachments 76% 70%

Links to interesting Websites 69% 67%

Product recommendations 66% 28%

Invites to events 64% 35%

News stories 63% 54%

Warnings/recalls 58% 42%

Information on products/services 56% 45%

Information on causes/petitions 56% 24%

Coupons or discount offers 51% 49%

Retail promotions or sale information 46% 29%

Jokes/cartoons 42% 65%

Newsletters 36% 30%

Information on companies 31% 30%

Invites to network (e.g., Facebook) 23% 36%

Chain letters 11% 11%

Note: ages 18+; *i.e., influential online consumersSource: Burson-Marsteller conducted by MSI International as cited byMarketing Charts, April 2, 2008


Leading Online Activities of US Hispanic AdultInternet Users, December 2007 (% of respondents)

Movie news 42.7%

Shopping 41.7%

Video games 34.7%

Music news 33.2%

Weather 32.5%

TV news 32.0%

View photo from friends 31.1%

IM/chat 30.2%

Sports news and scores 27.7%

Horoscopes/astrology 22.7%

Note: ages 18+Source: BIGresearch, "Simultaneous Media Usage Study (SIMM11),"provided to eMarketer, May 14, 2008



Online Activities

In fact, more than one-half of the nonbuyers had a broadbandconnection, a result that Pew researchers said was contrary totheir expectations.Also, the majority of low-income Americans—agroup supposed to have less incentive to buy online—had made apurchase over the Internet. Some 58% of people whose annualhousehold incomes were below $25,000 bought somethingonline. Pew suggests that attitudes play a critical role in shapingpeople’s tendencies to shop online.

092229

According to Forrester, concerns about providing personalinformation online (32%) and the desire to touch and feel productsbefore making a purchase (30%) were the two leading reasonswhy Hispanic Internet users refrained from buying online.

That may explain why travel—an experience more than aproduct—is the top category Hispanic Internet users researched“usually/always,” according to the Terra/comScore study.Entertainment products such as DVDs, music and video gamesare highest in the “occasionally” researched category.

094833

Demographic Profile of US Online Buyers vs. InternetUsers Who Have Not Purchased Online,August-September 2007 (% of respondents)

Online buyers

(n=1,111)

Internet users who have not

purchased online (n=570)

Gender

Male 49% 49%

Female 51% 51%

Age

18-29 26% 24%

30-49 46% 37%

50-64 23% 28%

65+ 6% 12%

Race or ethnicity

White (non-Hispanic) 74% 66%

Black (non-Hispanic) 10% 11%

Hispanic (English-speaking) 10% 18%

Education

Less than high school graduate 6% 11%

High school graduate 29% 25%

Some college 25% 42%

College degree or more 39% 21%

Household income

<$25,000 13% 19%

$25,000-$40,000 12% 15%

$40,000-$60,000 17% 18%

$60,000-$100,000 22% 16%

$100,000+ 19% 7%

Don't know or refused response 17% 25%

Geographic location

Urban 25% 27%

Suburban 50% 47%

Rural 14% 15%

Household broadband 77% 53%

Source: Pew Internet & American Life Project, "Online Shopping," February13, 2008


US Hispanic Internet Users Who Use the Internet toResearch Goods and Services, February 2008 (% ofrespondents)

Travel

Entertainment (DVDs, music and video games)

Computers

Consumer electronics

Books

Cars and other vehicles

Appliances

Clothing/shoes (for women)

Flowers

Clothing/shoes (for men)

Fashion accessories

Toys (excluding computer games)

Health-related products and services

Real estate

Hobbies and crafts

Clothing/shoes (for children/teens)

Other beauty/personal care products

Jewelry and watches

Cosmetics

Food-related products and services

Baby clothing and accessories

Home and garden

Art

Other

Usually/ always

35%

30%

24%

24%

24%

13%

12%

11%

11%

10%

8%

8%

8%

7%

7%

6%

6%

6%

6%

6%

5%

4%

4%

4%

Occasionally

26%

45%

28%

35%

39%

22%

22%

34%

24%

30%

27%

27%

25%

14%

28%

23%

24%

23%

21%

21%

18%

18%

13%

12%

Note: n=3,513 ages 12+Source: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008



Online Activities

Consumer electronics are by far the most-researched productcategory among online Hispanics, according to VertisCommunications. More than six in 10 Hispanic Internet userschecked out home electronics before purchasing—slightly morethan the general online population, at 59%. Clothing, majorappliances and all other categories drew much less onlineinterest, at 38% of respondents or fewer.

095386

Social MediaSocializing online is just an extension of socializing offline formany young Hispanics.They are twice as likely as non-Hispanicsto prefer “a large group of friends” versus a “few close friends,” theIntelligence Group reported in its survey of 14-to-34-year-olds.Unsurprisingly, 88% of this group said they had a profile on anonline networking site.

Hispanic Internet users are more active than whites on socialnetwork sites.A study from the American Marketing Associationshows that Hispanics used more online activities within socialnetworks, such as downloading coupons, posting videos andbuying products.

090710

Facebook and MySpace each launched Spanish-language versionsof their sites earlier this year. Facebook’s offering debuted inFebruary, the first of several languages beyond English that it plansto offer. MySpace Latino, a bilingual version with eight differentcommunities focused on entertainment, fashion, music, nightlife,soccer, events and news, moved out of beta testing in April.

Products Researched Online Prior to PurchaseAccording to US Hispanic Adult Internet Users vs.Total Adult Internet Users, August-September 2007 (%of respondents)

Hispanic Total

Home electronics 62% 59%

Clothing 38% 30%

Major appliances 34% 37%

Home improvement items 32% 33%

Furniture 28% 25%

Sporting goods 24% 20%

Restaurants 21% 18%

Office supplies 18% 17%

Auto parts 18% 14%

Health and beauty care 17% 14%

Arts and crafts 11% 9%

Groceries 8% 7%

Eyewear (glasses or contacts) 8% 6%

Don't know 1% 1%

None of these 14% 23%

Note: ages 18+; *prior to the surveySource: Vertis Communications, “Customer Focus OPINIONES” as cited inpress release, June 5, 2008


Select Social Networking Website Activities of USHispanic vs. White Adult Internet Users, September2007 (% of respondents in each group)

Download coupons

34%

23%

Post videos

30%

11%

Purchase products

24%

14%

Hispanic White

Note: ages 18+Source: American Marketing Association (AMA) conducted by OpinionResearch Corporation as cited by Marketing Charts, December 13, 2007



Online Activities

Even before the MySpace Latino launch, the English-languageversion was the most popular social network among HispanicInternet users in every age group.Terra/comScore data fromFebruary 2008 shows 80% of respondents visited MySpace,compared with 58% for Facebook.

094815

MySpace may be the most popular, but younger Hispanicsespecially are checking out more than one social network, theTerra/comScore study showed. One-quarter of all HispanicInternet users visited two networks in February, while 21% stayedon one site and 19% visited three. Some 26% of 35-to-44-year-oldsvisited between five and nine social networks, an anomaly in thedata that may indicate some parents checking up on theirchildren’s profiles.

094824

Online VideoApproximately one in four online Hispanics,African-Americansand general market consumers visited YouTube in the past sixmonths, Synovate reported in its “2008 Diversity Market Report.”African-American and Hispanic males ages 18 to 34 were morelikely to visit the online video site than were females of the sameage.Among Hispanics, 41% of males and 20% of females had beento YouTube.Among African-Americans, 55% of males and 33% offemales had visited the site.

Minority Internet users are very proactive in seeking out onlinevideos. In a separate Synovate report commissioned by Clipblast!, inwhich respondents were broken out as white or nonwhite,62% ofthe minority group said they found online videos on their own,compared with just 50% of whites.More minority Internet users werelooking for a specific video, too—an indication that they had heardabout it from a friend or had seen something about it elsewhere.

094385

Social Networking Websites Visited* by US HispanicInternet Users, by Age, February 2008 (% ofrespondents)

12-24 (n= 172)

25-34 (n= 627)

35-44 (n= 229)

45+ (n= 124)

Total (n=

1,152)

MySpace 83% 81% 75% 61% 80%

Facebook 68% 48% 53% 26% 58%

Yahoo! Groups 17% 26% 36% 43% 23%

Classmates 10% 18% 34% 39% 17%

Flickr 18% 18% 14% 12% 17%

hi5 13% 18% 19% 9% 15%

MyAOL 14% 12% 11% 26% 14%

Yahoo! 360 12% 14% 18% 22% 14%

Windows Live Spaces 12% 13% 19% 14% 13%

LiveJournal 14% 9% 5% 3% 11%

LinkedIn 7% 10% 18% 7% 9%

Friendster 5% 9% 18% 12% 8%

Digg 6% 7% 8% 3% 6%

Xanga 7% 5% 4% 5% 6%

Bebo 3% 4% 4% 3% 4%

GaiaOnline 4% 2% 3% 1% 3%

Cupid 2% 2% 4% 5% 2%

Del.icio.us 1% 6% 3% 3% 2%

Technorati 1% 2% 3% 1% 1%

Piczo 1% 2% 2% 1% 1%

Note: *in the past 30 daysSource: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008


Number of Social Networking Websites Visited* by USHispanic Internet Users, by Age, February 2008 (% ofrespondents)

12-24 (n= 172)

25-34 (n= 627)

35-44 (n= 229)

45+ (n= 124)

Total (n=

1,152)

1 21% 21% 21% 21% 21%

2 27% 24% 21% 21% 25%

3 20% 21% 13% 18% 19%

4 18% 11% 12% 12% 15%

5-9 14% 17% 26% 18% 17%

10+ <1% 3% 4% 4% 2%

None 0% 3% 3% 6% 2%

Note: numbers may not add up to 100% due to rounding; *in the past 30daysSource: Terra Networks, "Terra.com Hispanic Syndicated Survey"conducted by comScore Media Metrix, provided to eMarketer, May 2008


Online Video Resources of US Adult Internet Users, byRace/Ethnicity, March 2008 (% of respondents)

White (n=476)

Nonwhite (n=46)

Total (n=532)

Discover on own 49.9% 61.5% 52.5%

Recommendationfrom someoneknown

52.3% 50.2% 51.7%

Search for specificvideo

35.3% 59.6% 40.3%

Recommendationfrom someoneknown only online

17.9% 16.3% 17.7%

Receive viaunsolicited e-mail

9.3% 11.3% 9.5%

Receive via e-mailsubscription, RSSfeed, etc.

9.9% 2.8% 8.5%

Note: ages 18+Source: Synovate, "e-Nation" commissioned by Clipblast!, April 22, 2008



Online Activities

BloggingBlogging has gone mainstream, for online Hispanics as well as thegeneral US Internet population. Hispanic blogging activity skewsyounger, just as it does among all Internet users. Synovatereported there was no difference in blogging behavior betweenthe genders.

In its most recent simultaneous media usage survey, BIGresearchfound that 20% of US bloggers are Hispanic—althoughrespondents were allowed to choose a racial category as well.

092390

Conclusion

The US Hispanic Internet population is young,

relatively acculturated and proud of its origins.

Online growth will come mostly from native-born

Hispanics who are comfortable speaking English

and Spanish, and are comfortable with new

media and technology.

Hispanic males generally are more avid Internet users than arefemales—they are online more often and are more engaged inonline activities involving entertainment and media.

Internet users who predominantly speak Spanish are underservedby many companies and publishers.Their numbers online willgrow in proportion to the amount of targeted, relevant contentprovided by marketers who understand this growth opportunity.

Demographic Profile of US Adult Bloggers*, January2008 (% of respondents)Race/Ethnicity**

White 69.7%

Hispanic 20.0%

African-American 12.2%

Asian 3.7%

Average age 37.6

Average income $55,819

Average years of education 14.3

Note: ages 18+; *who regularly or occasionally write in a blog; **numbersdo not add up to 100% as respondents who chose "Hispanic" were alsoallowed to choose another categorySource: BIGresearch, "Simultaneous Media Survey (SIMM 11)" as cited inpress release, February 12, 2008



Endnotes

Endnote numbers correspond to the unique

six-digit identifier in the lower left-hand corner

of each chart.

096602 096605

096602

096605

Extended Note: The responses to some of the survey questionswere used to create three "online engagement segments." Thesesegments are a measure of self-reported behavior relating not justto the amount of time spent online, but also to the variety andfrequency of activities conducted online. Respondents wereclassified as either heavy, medium or light in terms of their derivedlevel of online engagement.

088681 088683

088681

088683

Extended Note: "Spanish-oriented/high cultural affinity"-35% ofHispanic-Americans, more fluent in Spanish than English, 89%foreign-born; have a strong attachment to Hispanic culture;"Spanish-oriented/low cultural affinity"-15% of Hispanic-Americans,more fluent in Spanish than English, 86% foreign-born, relativelyweak attachment to Hispanic culture; "Bi-cultural"-26% of Hispanic-Americans, fluent in English but have strong understanding ofSpanish, 24% foreign-born, strongly attached to Hispanic culture;"Relatively assimilated"-24% of Hispanic-Americans, more fluent inEnglish than Spanish, 9% foreign-born, relatively weak attachmentto Hispanic culture.

Level of Online Engagement Among US HispanicInternet Users, by Gender, February 2008 (% ofrespondents)

Heavy online engagement

57%

43%

Medium online engagement

50%

51%

Light online engagement

40%

60%

Male Female



Level of Online Engagement Among US HispanicInternet Users, by Age, February 2008 (% ofrespondents)

<25 25-34 35-44 45-54 55+

Heavy online engagement 45% 26% 19% 8% 2%

Medium online engagement 46% 22% 19% 11% 3%

Light online engagement 37% 15% 25% 14% 9%



US Hispanic Internet Users, by Acculturation Level,March-April 2007 (% of respondents in each group)

Spanish-oriented/high cultural affinity

44%

Spanish-oriented/low cultural affinity

51%

Bicultural

79%

Relatively assimilated

74%

Total Hispanics

61%



Frequency of Internet Use Among US HispanicConsumers, by Acculturation Level, March-April 2007(% of respondents in each group)

Every day

Almost every day

Weekly

A few times amonth

Almost never

Never

Don't know/noanswer

Spanish-oriented/

highculturalaffinity

8%

10%

8%

6%

12%

52%

4%

Spanish-oriented/

lowculturalaffinity

17%

11%

6%

10%

8%

45%

4%

Bi-cultural

34%

17%

8%

12%

8%

20%

1%

Relativelyassim-ilated

34%

14%

9%

6%

11%

24%

1%

Total Hispanics

22%

13%

8%

8%

10%

36%

3%




Related Information and Links

Related LinksAssociation of Hispanic Advertising Agencies (AHAA)http://www.ahaa.org

National Telecommunications and InformationAdministration (NTIA)http://www.ntia.doc.gov/

Pew Hispanic Centerhttp://www.pewhispanic.org

Pew Internet & American Life Projecthttp://www.pewinternet.org

US Census Bureau Minority Links for Media, Hispanicsor Latinos http://www.census.gov/pubinfo/www/NEWhispML1.html

ContacteMarketer, Inc. Toll-Free: 800-405-084475 Broad Street Outside the US: 212-763-601032nd floor Fax: 212-763-6020New York, NY 10004 [email protected]

Report ContributorsSusan Reiter Managing EditorJoanne DiCamillo Production ArtistDana Hill Production ArtistJames Ku Data Entry Associate

and Production ArtistNicole Perrin Copy EditorHilary Rengert Senior Researcher

and Production ArtistAllison Smith Senior Editor

About eMarketer

eMarketer is "The First Place to Look" for

research and analysis on digital marketing

and media. eMarketer analyzes information

from over 3,000 sources, and brings it together

in reports, articles and the most comprehensive

database of online marketing statistics in

the world.

A Trusted Resource eMarketer serves as a trusted, third-party resource, cuttingthrough the clutter and hype–helping businesses make sense ofthe numbers and trends. eMarketer's products and services helpcompanies make better, more informed business decisions by:

■ Streamlining research sources and reducing costs

■ Eliminating critical data gaps

■ Providing an objective, bird’s eye view of the entire landscape

■ Better deploying and sharing information across the company

■ Building solid business cases backed up by hard data

■ Reducing business risk

■ Saving valuable time

To learn more about subscriptions to eMarketer,call 800-405-0844 (outside the U.S. and Canada,call 001-212-763-6010), or e-mail [email protected].

Us Hispanics Online Demographics

Documents

Transcript of Us Hispanics Online Demographics