Companies Engaging Hispanics Win Big In the U.S. – and Beyond

Ad spends targeting U.S. Hispanics are at all-time highs. And so are online revenues, for companies launching U.S. Spanish-language sites.

As the U.S. Hispanic market grows in population, buying power and cultural influence, a vanguard of 500 U.S. companies have dramatically increased their commitment to engaging these consumers, according to a new report by AHAA, a trade organization representing the Hispanic marketing, communications and media industries.

The report, which featured information collected by Nielsen Monitor Plus, revealed that these companies are spending more than ever on advertising to the U.S. Hispanic market – $7.1 billion in 2015, nearly 65% more than several years ago. Further, they’re also allocating more of their overall ad spend on Hispanic-dedicated efforts: 8.4% today, compared to 5.5 percent in 2010.

These top 500 advertisers boosted their average annual Hispanic-targeted spending from $9 million in 2010 to $14 million now, the report said. This growth is led by nearly 70 “Best in Class” companies that allocate more than 14.2% of their ad dollars to Hispanic-dedicated efforts in Spanish or bilingual media. Five years ago, the number of Best in Class companies was less than 30.

U.S. Hispanics now represent a buying power of $1.5 trillion, up 50% since 2010.

Why are so many companies strengthening their investment in this market? The numbers don’t lie: U.S. Hispanics now represent a buying power of $1.5 trillion, up 50% since 2010. U.S. Census estimates from 2013 indicate there are roughly 54 million Hispanics currently living in the United States, or approximately 17% of the country’s total population. Indeed, the U.S. has the second-largest Hispanic population in the world, behind Mexico.

The U.S. Hispanic market is growing faster than the non-Hispanic average, too. According to 2013 U.S. Census data, the “Hispanic or Latino” population grew from 50.5 million to 54.1 million from 2010 to 2013 – a 7.1% increase. The overall non-Latino population saw an increase of only 1.5% over the same time period. By 2060, the Hispanic population will reach 128.8 million, nearly one-third of the U.S. population, the CDC reports.

These population shifts are dramatic and undeniable. Also undeniable? The wisdom in marketing to U.S. Hispanics with Spanish-language content. While this market is increasingly fluent in English, Spanish communication remains very prominent, especially in the home. More than 75% of Hispanics speak Spanish at home, according to the Census Bureau. That’s around 38.2 million U.S. residents, a 121% increase since 1990.

This Spanish-speaking preference pervades Hispanics’ media consumption, as well. Advertising Age’s 2014 Hispanic Fact Pack reported that 35.5% of U.S. Hispanics prefer to read content in “all Spanish” or “mostly Spanish.”

So what do these population and ad-spend trends mean for American businesses? If companies wish to become relevant – and remain relevant – to the country’s largest ethnic minority, they must follow the vanguard and connect with these consumers in their language of choice.

Over 35% percent of U.S. Hispanics prefer to read content in “all Spanish” or “mostly Spanish.”

And we’ve found that – if you follow in the footsteps of the nation’s most successful online Hispanic marketing initiatives – you’ll do more than win the trust (and engagement) of the U.S. Hispanic market. You’ll win big with customers in Latin America … customers who are keen to purchase goods through your online store.

The MotionPoint Perspective

MotionPoint works with hundreds of companies that have appropriately prioritized the U.S. Hispanic market. We translate their general-market English websites into Spanish (and other languages), and optimize the sites’ content and more for maximum engagement and conversion.

Our 15 years of experience has generated a wealth of exclusive data about the U.S. Hispanic market, and its online behavior and preferences. For instance: We know that – contrary to what some agencies proclaim – Hispanics don’t care for Spanish-language microsites.

A microsite, by definition, delivers “less than” what is offered on a company’s English site. Time and again, our usability research indicates this “less than” disparity is interpreted by Hispanics as a lack of corporate commitment. In contrast, companies that offer fully-translated versions of their English sites are rewarded with far more engagement, traffic and revenue by U.S. Hispanics. (And since offline shopping is something Hispanic family members often do together, retailers can see an incremental lift in in-store sales, too.)

Companies that offer fully-translated versions of their English sites are rewarded with more engagement, traffic and revenue.

We’ve also found that to make a Hispanic-centric website truly successful, companies must do more than merely translate its content. Make no mistake: Launching a website in-language will generate engagement. On average, these sites experience traffic growth of around 11% in its first year, and 17% by its third year.

However, companies that follow MotionPoint’s proprietary, data-based best practices & optimizations will see growth rates of around 123% in its first year, and 160% by its third year.

On average, these sites’ Average Order Value also increases to nearly 20% more than what a general-market English website generates.

U.S.-based Spanish speakers won’t be the only customers engaged and spending more. We’ve found that sometimes U.S. Spanish sites following our best practices may receive up to 60% of its “free” organic traffic from underserved international Spanish-speaking markets such as Mexico and Latin America. These shoppers are most-often searching for products unavailable in their local market.

This is a huge opportunity for U.S. businesses, especially those who can ship internationally. Suddenly, a domestic Hispanic site is now a revenue-generating gateway to shoppers throughout the Western Hemisphere.

Companies that make it easy for international shoppers to buy from their U.S. Spanish sites see conversion rates of up to nearly 3%. This conversion rate is comparable to that of a well-optimized, general-market e-commerce English site.

Suddenly, a domestic Hispanic site is now a revenue-generating gateway to shoppers throughout the Western Hemisphere.

Remember, these are sales these companies would never otherwise generate.

And speaking of sales: While the new domestic & international revenue generated through this site won’t rival that of a company’s English site, a Hispanic-dedicated website generates value far beyond e-commerce sales. A Spanish site is a marketing channel that earns the market’s interest and trust. It’s a must-have destination to complement a company’s Hispanic marketing & advertising campaigns, both online and off.

Indeed, the takeaway is clear: Companies that wisely invest in engaging the Hispanic market – and create robust, in-language online destinations for them to visit – don’t just woo increasingly influential & affluent U.S. Spanish speakers. They can generate new customers, and incremental revenue, far beyond U.S. borders, as well.

Organizations like yours are already engaging U.S. Hispanics with powerful Spanish-language marketing and websites. But you can easily and quickly catch up. Contact us. We’ll educate you further on the market – and have your site communicating with its consumers – in mere weeks.

Photo credit: Fotoluminate LLC /

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