African American Youth Market - New York Civil Liberties
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Transcript African American Youth Market - New York Civil Liberties
African American
Direct Marketing
Presented by:
Verdia E. Johnson
President, Footsteps
February 2005
Overall African American
Market Highlights
African American Buying Power
Buying Power $ (in billions)
$964.6
Over the past 14
years, buying power
$723.1
$584.9
$318.3
has increased 127%
and is projected to
increase 203% by
1990
2000
2004
2009
Growth from 1990 by Percentage (%)
203.0%
2009
140.0%
127.1%
83.7%
2000
89.4%
58.4%
2004
African-Americans
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
2009
Non-Hispanic Whites
African American Buying Power
States with the Highest Concentration of AA
Buying Power by Percentage (% )
Virginia
Delaware
North Carolina
Alabama
South Carolina
Georgia
Louisiana
Maryland
Mississippi
District of Columbia
13.3%
14.1%
14.4%
17.1%
18.6%
20.2%
20.2%
21.9%
23.6%
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
35.8%
African American Population
Population (in millions)
30.0
1990
2000
34.6
2004
36.5
38.9
2009
Growth from 1990 by Percentage (%)
29.7%
21.7%
The population continues
to grow and outpace
Non-Hispanic Whites
15.3%
5.9%
2000
12.1%
8.5%
2004
African-Americans
*Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004
2009
Non-Hispanic Whites
African American Population by Region
9.6%
South (19.5 million)
17.8%
Midwest (6.8 million)
Northeast (6.6 million)
53.5%
West (3.5 million)
18.6%
African American Population by Age
6.6%
Under 15
7.9%
27.4%
11.5%
15-24 (50/50 male-female)
25-34
35-44
45-54
15.6%
16.0%
14.7%
55-64
65+
48 % Male
*Source: U.S. Census Bureau, Census 2000 Summary File 1
52 % Female
Household Size
Women are more prominent
in AA households vs. general
market households
1
person
17%
48.2% of AA households
2
people
28%
are headed by women vs.
27.6% of non-Hispanic White
households
AA women bring in almost
half (48.9%) of total income in
AA pop. vs.1/3 of the total
income for other racial/ethnic
groups
5+
people
17%
Source: 2004 MRI DOUBLEBASE, Packaged Facts, Marketing to Women, 2004
3-4
people
38%
African American Education Attainment
14.6%
College Graduate
21.6%
African Americans 18+
36.9%
Some College
Persons 18+
36.6%
85.3%
High School Graduate
89.9%
0%
10%
20%
30%
40%
Source: Scarborough USA+ Release 1, 2003, 12 month data, 2004 Arbitron, Inc.
50%
60%
70%
80%
90%
100%
African American Residential Status
68.9%
50.0% 50.0%
27.8%
African American
General Market
52.9%
Own
49.7%
Rent
36.1%
29.5%
African American
MSA Central City
Source: 2004 MRI DOUBLEBASE STUDY
General Market
MSA Suburban
African African Youth
Market
Demographic/Psychographic Profile
Target Population Profile
Demographics:
Age 16-21
Population - Roughly 5.5 million people
Geographic location
-
South - 58.7
Midwest -16.9
Northeast - 14.3
West - 10.1
Majority live at home
Education
- 70.2 % graduated from high school
-
32.7% attend(ed) college
Source: 2004 MRI DOUBLEBASE STUDY
Target Population Profile
Psychographics:
They appreciate…
Speed: Live for the moment – they acquire information and
move on, always multitasking
Individuality: It is essential that they retain individuality within a
group environment and have the freedom to express
themselves and their uniqueness (hip-hop)
Trendsetting: Recognizing the power of being first, they
constantly seek the opportunity for newness
Technology: Using technology, to multitask, retain speed and,
gather information; is an integral part of their lives
Entertainment: Part of the absorption mentality - in order to get
their attention, it has to be engaging
Target Population Profile
Psychographics: African Americans are…
Source: MRI Twelveplus 2004
Fashion Forward
- Spend significantly on clothes and shoes
Hip & Savvy – Internet Activity in last 30 days
- Visited chat room - 339 Index
- Sports/News & Current Events - Index
- Played games online - 207 Index
Financially Independent
- Employed - 63.4%
- Acquired Savings Account in own name - 157 Index
Vigorous – Sports Played in Last 12 Months
- Football - 237 Index
- Basketball - 215 Index
- Volleyball - 186 Index
- Baseball - 174 Index
- Softball - 157 Index
- Soccer - 150 Index
Hip-Hop is the lifestyle…
Rap is the music…
Urban is the mindset.
The Hip-Hop Universe
Hip-Hop. . .
. . . is a lifestyle of youth that originates from the African
American culture
. . . has inspired an entire youth group to embrace its
language, fashion and lifestyle
. . . cuts across a rich cultural spectrum encompassing
AAs, Whites, Hispanics and Asian
Hence, today’s clothing, sneakers, electronics and entertainment have all
been heavily influenced by Hip-Hop music and its artists
According to a study by Edison Media Research, 12-24 year olds prefer
Hip-Hop and Rap to any other style of music by an overwhelming margin
Source:“Is Hi-Hop The Future of Rock?” Radio and Records, May 25, 2001
The Hip-Hop Universe
Listener Profile:
Based on USA Today’s radio airplay chart, more than a quarter
of the most-heard songs of 2003 were by Hip-Hop artists…
12-17 years
7%
18-24 years
5%
26%
15%
25-34 years
50% between
12-24 years
35-44 years
45-54 years
22%
55+ years
25%
Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003
The Hip-Hop Universe
Listener Profile:
Other
29%
Ethnic Composition
African
American
46%
Gender
Hispanic
25%
46%
54%
Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003
The Hip-Hop Universe
Television, movies, magazines, and even video games have all
attempted to capture the Hip-Hop magic
Television networks like BET, UPN and MTV actively target the
Hip-Hop audience
In movie theatres, films starring rappers and Hip-Hop stars have
begun to cause major bounces in box office receipts
New book genres like Street Life have shown tremendous
growth and are introducing a brand new audience to book
publishing
Urban magazines like The Source, Vibe, Blaze, XXL and
Rides are some of the fastest growing titles in the industry
Even video games are using Hip-Hop music and stars both on
soundtrack and as major characters in storylines
The Hip-Hop Universe
Community Involvement:
Hip-Hop stars, DJs and radio stations play very active roles in their
communities
Some of the charities and community programs these personalities
are associated with are:
- African American Leadership Council – Doug Banks (ABC Radio
Personality
- The Ludacris Foundation – benefiting children
- SHINE – P.Diddy/Russell Simmons – empowering young people to
promote diversity and end youth violence
- Jes Us 4 Jackie – Nelly – benefits leukemia research
- Save A Life Foundation – Snoop Dogg
- C.A.U.S.E. – Eminem – helping underprivileged children and families
- The Hip-Hop Summit Action Network – education and societal
advocacy for at-risk youth
The Hip-Hop Universe
Hip-Hop fans are extremely loyal individuals
Hip-Hop carries with it a street credibility that young consumers are
highly tuned to
Music plays a key part in their lives and they connect to the total
lifestyle
That is what makes Hip-Hop music and Hip-Hop stars very effective
as advertising vehicles
Fans buy almost anything the Hip-Hop lifestyle endorses
Therefore, strong Hip-Hop marketing can earn sincere brand
loyalty from a notoriously fickle consumer group
The Hip-Hop Universe
Today’s role models have changed from athletes to
Hip-Hop stars and they promote many products.
The Gap – LLCool J, Missy Elliot
Right Guard – Method Man, Redman
Heineken – Jay-Z
Coors Light – Dr. Dre
Reebok – Jay-Z, Fifty Cent
Cadillac – Snoop Dogg
Coca Cola – Common Sense, Mya
Twix – Usher
Verizon – Tweet
Lugz – Funkmaster Flex
Cover Girl – Queen Latifah
Got Milk? – Nelly
Pepsi – Beyonce Knowles
Dr. Pepper – LL Cool J, B2K
Success Stories
S. Carter Collection (Jay-Z) sold out in a few hours the
first weekend it was in stores, making it the fastest
selling shoe in Reebok’s history
When Western Union started using the urban format to
promote money transfers, transactions increased 100%
Gillette saw a 14% increase in market share after
advertising on Hip-Hop radio in Memphis
After Sprite launched an ad campaign with Hip-Hop stars,
Time magazine reported that people who said Sprite was
their favorite soda quadrupled
Source: The Mercury News, March 2003
African Americans and
Direct Marketing
Direct Marketing Overview
It is estimated that only 30.5% of African Americans are exposed to
direct mail
However, more than 75% of this segment read the direct mail received
Historically, the distribution of relevant direct mail has been hindered by
a lack of lists that are accurate and reliable
However, today’s technologies allow the extraction of knowledge from
general data bases and rented lists in order to identify people by race
and ethnicity as well as provide other attributes
There is also a growing number of opt-in lists available
Based on the limitations of direct mail, the most successful direct
marketing campaigns in the African American market and among this
young target audience are integrated and focused on…
- their interests
- the media that they consume most often
Source: Targetonline.com, Target Marketing Tipline, September 2003, Geospace International
Relevant Communications Vehicles
Television:
-
Good vehicle for broad reach and complete brand communication
Sight, sound and motion provides high visibility and excitement and
accommodates direct response mechanism
Cable, network and syndicated TV provide a range of programming for
the youth target audience
Ability to extend message with promo announcement at the end of
specific programs
Limitations include limited interaction and short format
Spot Radio:
-
-
Strong frequency medium that is good for message reinforcement
Deep penetration into communities via local area promotions,
sometimes in conjunction with high profile organizations
Best medium in a local area for forming an allegiance with the
potential customer; DJs have celebrity status and can hype a product
campaign
Delivers local market ratings similar to general market television
activity in most markets
Relevant Communications Vehicles
National Magazines:
- Visual message allows for clear registration of products, services and
call to action
- Format can accommodate complex message
- Efficient in delivering the target
- Good selection of titles for youth market
- Work with publications to distribute information to their subscribers
- Limitations - not very accomplished in delivering regional market
needs
Internet:
-
Sight, sound and motion makes message impactful
Interactive (Chat room, etc.)
Can accommodate long format message
Can cross promote with publishing and broadcast vehicles
Can track results daily
Relevant Communications Vehicles
Events:
- One-on-one conversation with consumers that blend fun and
exciting activities
- Interactive
- Collect data base
BET’s “Rap It Up” Campaign
BET partnered with the Kaiser Family Foundation to develop a
public education and awareness campaign about HIV/AIDS
The objective of the campaign was to get information into the hands
of young people
The campaign included television and online components that
included AIDS related programming, public service announcements
with a toll free hotline and website with AIDS-related information
The campaign also had grassroots components which included:
- Teen forums hosted by BET talent
- Partners from the local public health departments for on-site testing
- “Classroom Connection” curriculum based on the BET documentary
series – The Naked Truth
BET’s “Rap It Up” Campaign (cont.)
Results were good; as of May 2004:
- More than 85% of AAs in the 16-24 age group were aware of the
program
- 900,000 people called the hot line
- 300,000 people received sexual health information
- 11,000 participated in on-site tests and forums
Direct Response Programs
XXL magazine ads
featuring urban-todirect video movies
generated $170K in
sales for every $100K
of ads
A client’s
response rate in
Vibe was 10% on
an insert card
AOL CD insert in Complex
magazine generated a
15% response
Other Relevant Communications Vehicles
Short film in movie theatre
Internet videos
CDs inserted in print media
Message on DVDs
Recruiting Insights
Environment Change
Peace
Life
War
Death
Recruiting Issues
Majority of African Americans are against the war in Iraq and have
been against the war from the beginning
- Some AAs feel that they (in addition to Hispanics and poor
whites) are bearing most of the burden for fighting and dying in
the war
Also, politically, a majority of AAs feel that the current
administration is oblivious to its concerns, and the war in Iraq has
reinforced this perception
From a youth perspective, perceptions are no different
Hip-Hop artists continue to organize and speak out against the war
in Iraq
Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004
Recruiting Issues
Some of these artists (role models) are:
R.Kelly
OutKast
XZIBIT
Mos Def
Jay-Z
Fat Joe
Missy Elliott
P. Diddy
Tweet
Busta Rhymes
Nas
Eminem
Some of these artists have lyrics and comedy routines expressing
views against the war (i.e. XZIBIT, R. Kelly and Eminem), while
others formed a United Against The War Coalition
Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004
Recruiting Issues
The most vocal rapper
recently is Eminem
with lyrics and a video
about his views from
his song called
“Mosh”
Historical Recruiting Continuum
Prospect …
Becomes
Aware
Becomes
Intrigued
Seeks
Info
Seeks out
Dialogue
Wants to
Join
Affirms
Decision
TV
Print
Radio
Online Media
Direct Mail
DRTV - respond
Events - get brochures
Website
Call 800 Number
Recruiter Materials
Recruiter Support
New Paradigm
With a different environment and recruitment issues,
prospects will critically evaluate the message and the
medium, therefore, the following should be examined:
Message impact in the context of the new environment
Message delivery based on the barriers that exist
Immediately engaging vs. informing/intriguing a prospect
Market segmentation based on profile and geography
Strategic Approach
Focus on Influencers
- Parents, coaches, teachers, clergy, directors of
recreation centers, trade schools, GED classes,
etc.
Explore long message formats
- Facilitates a more complex message
New Recruiting Paradigm
More human support at all stages …
Influencers
Become
Aware
Influencers
Seek
Info
Influencers
Engage
Prospect
Prospects
Seek Info
& Dialogue
Prospects
Decide to
Join
Prospects
Affirm
Decision
Print
Direct Mail
Online Media
Community Outreach
Online Media
Radio
Website
800 Number
Recruiter Materials
Recruiter Support
Conclusion
The majority of the target audience (16-21 year old
AAs) participates in or is influenced by the Hip-Hop
lifestyle
Because of this influence, the Hip-Hop community’s
negative views about the war in Iraq are also
influencing their thinking on this subject
As a result, there is a need for the military to enlist
other influencers and employ the best direct
marketing vehicles to engage prospects and help
counteract this view
Thanks!
Any Questions?