Multicultural Digital Influence on Consumer Markets - A Study

Influencing the Influencers Study 2011
“Multicultural Digital Influence on Consumer Markets”
November 11, 2011

2011


BACKGROUND

GlobalHue: Influencing The Influencers Study, 2011

1
Objective

To provide a Point of View:

How the largest, most ethically and racially
diverse generation and consumer cohort in
American history, Millennials, are influencing
Mainstream attitudes and behaviors through
digital awareness and consumerism.


2
Guidance

“To reach and engage today's influential multicultural consumers, brands must
organically identify with, and attach to, culturally relevant beliefs and values.
Becoming a natural element within key influential multicultural lifestyles, social circles,
and digital communities, creates new brand relevancies which influences popular
culture, and Total Market adoption and consumption.”
Don Coleman, Founder and CEO, GlobalHue


3
Total Market

1 %
Total Market regards different ethnicities as composites of larger human, consumer, and
marketplace truths, and when combined, total 100%. With American diversity increasing
at an increasing rate every year, once tertiary ethnic groups are proportionally a larger
contributor to General Market mathematics.


4
Our Belief

When influential multiculturals broadcast their beliefs digitally, their amplified transmissions
effect how society, and the Total Market, accepts and adopts new consumer attitudes and
practices, which economically impacts brands. (Occupy Wall Street, NYC - Sept 30, 2011)


5
Market Influence
Source: Alloy Media + Marketing, 10th Annual College Explorer Study, 2010

A18-34: $306 BILLION OF ANNUALIZED CONSUMER
DISCRETIONARY SPENDING POWER!

6
The Truth

If you are waiting until 2050 to develop a multicultural strategy it will be too late,
technology and popular culture will have passed you by. Status quo consumer
segmentation driven by traditional General Market dynamics are fleeting into history, as
consumers digitize and their demographics shift and accelerate forward.


7
Multicultural Spending in CPG

Multicultural consumer spending power will increase by 25% in 2020, just eight years from
now. Households containing multiculturals ages 18-34 will experience new dynamics in
shopping, purchasing habits and frequency, and behaviors as emerging digital/mobile
payment systems become mass market.
Source: Nielsen, June 2011

8
ANA Data

According to the Association of National Advertisers, multicultural marketing will gain
intensity online. While White Americans make up 70% of the online population,
millennials are second largest generation behind Baby Boomers; demographic changes
will impact how we use the internet, share information, and compute wirelessly.
Source: www.eMarketer.com

9
2010 Census

• Every large metro area in the
United States showed a decline in
the percentage of whites
• Majority-Minority is evolving the
notion of General Market
• Twenty-five percent of new births
are Hispanic
• Blacks are migrating from city to
suburban lifestyles
• Asian population grew 43% from
2000 to 2010
• From 33% today to more than
50% in 2050, minorities are
growing faster than whites

Chart: Washington-Post, August 30, 2011

10
Diversity in Numbers
1980

1990
34%
2000
40%
2009
47%
52%
The probability that two people chosen at random would be of a different race and
ethnicity on a 0-100 scale. (Source: U.S. Census Bureau data, 2010)


11

DIGITAL
INTERACTIONS


12
Transparency

Transparency removes the barriers between technology and humans. We are connected by
truths which cross borders and language barriers. And multicultural millennials are
connecting faster today in a truly digital age, creating and sharing their voices collectively,
and as one, influencing how society lives digitally.


13
Influencing the Digital Pipeline
Hispanic or Latino African American Asian

blog 242 (6%) 185 (5%) 244 (6%)

video 310 (5%) 260 (4%) 239 (4%)

music 352 (5%) 263 (4%) 227 (9%)

photo 266 (5%) 223 (4%) 273 (5%)

opinion 232 (4%) 222 (3%) UNDER INDEX

Source: Forrester, Consumer Technographics, 3Q11

14
Forrester: Technographic 3Q11


15
Digital Consciousness

Digital technology has revolutionized how humans interact with culture. At a much
younger age we are accessing and adopting new ways of learning. Much of society is
on the same digital page albeit from different types and forms of digital devices.


16
Digital Behavior

tag 252 (5%) UNDER INDEX 202 (6%)

wiki 315 (4%) 230 (3%) 234 (3%)

tweet 212 (6%) 238 (6%) 206 (6%)

social net 208 (12%) 159 (6%) 156 (6%)


17


18
Diffusion of Technology

Young multicultural millennials are becoming a larger portion of Innovators and Early
adopters. At the same time, most of the world is on the same digital platform, where new
customs, rituals and traditions are being developed, adopted and shared instantly by
everyone in society. The area inside the curve is flattening as technology democratizes.


19
Multicultural Millennials

A generation of seventy-six million, ages 12-29, are influencing the world virally by
digitally mixing their neo transcultural sensibilities via vanguard new media and
information technology platforms, changing how we think, feel and behave as a Culture in
the 21st century. (Turntable.fm)


20
Our Mobile Culture

Speaking and communicating wirelessly through digital personalities, thumbs and fonts
have replaced mouths and voices. Nine-in-ten multiculturals 18-24 own a mobile phone
transmitting approximately 110 texts per day; twenty percent of ages 6-10 own a mobile.


21
Asians Lead Smartphone Adoption

Asian and Hispanics are adopting smartphones at a faster rate than the general market;
switching or converting from traditional phone platforms at a rate of 45% versus 31%.
African Americans are trending at 33%; Apple, RIM and Android are the top OS platforms.
Source: Nielsen, 2011

22
Digital Behavior (Smartphone users)

music 236 (14%) 204 (12%) UNDER INDEX

video 229 (14%) 246 (5%) 239 (14%)

research 255 (5%) 290 (5%) 275 (14%)

purchase 297 (3%) 355 (3%) 303 (3%)

sms/im 235 (13%) 217 (12%) 209 (10%)


23
Mobile TV Adoption is Occurring, Now

Fast, reliable, high-speed mobility has increased the value quotient of portable media on
our handsets and devices today. As more functionality is hardwired into our devices it will
become our primary sense to adopt new technologies. Multicultural millennials are using
the mobile computing power of their devices to surf the web, stream music, socialize, etc.
Source: Motorola - Media Experiences, 2009

24


25
A New Language

We are talking differently today as new forms and applications of digital solutions are
commercialized and adopted. The messages we transmit have new social meanings
and implications for sender and receiver. Our primary sense of relating to each other
is being influenced by how we use technology to share the human experience.


26
Speaking Digitally

According to Merkle, View from the Digital Inbox, nonverbal forms of communication
are growing as the preferred method of exchange among young adults. Established
protocols and formats for rapid information exchange help senders and recipients have
more hyper targeted, and short dialogues. Why talk?
Source: www.eMarketer.com

27
Media-to-Medium

Modern digital-ness is an attitude and approach to living life in ON. One is almost
eternally open and accessible to information and data, which in itself, can be
converted into a medium of digital distribution. Our devices port us in and out of
digital realities.


28
Mobile vs Digital

We are spending equal amounts of time performing digital tasks and functions from our
mobile devices as we do when using computers. There are seven core modes for mobile
online usage, which are the same as PC usage except for Navigation.
Source: Yahoo!/Ipsos Study, 2010

29
New Marketplaces

Borderless economies are powered by unlimited digital access. Consumption behavior
is perpetual; we seek content to program our mobile devices to constantly entertain,
inform and educate us through 24-hour, worldwide brand-to-consumer digital
distribution systems. Consumption spreads faster in a digital economy.


30
Top mCommerce Retailers

For the best brands there almost is no distinction between their traditional retail or
digital/mCommerce experience.. The brand value proposition and positioning are
expressed through digital mediums yet such a ubiquitous medium does not limit brand
differentiation. eBay feels like eBay regardless of platform or device.
Source: www.mCommerce.com


31
Brand Challenge

Brands require relevancy for sustainable existence into today's consumer-driven economy.
Not only must brands provide differentiated value propositions, they must do so by
organically fitting into everyday lives with minimal disruption. Positioning brands for
future movement and growth within evolving consumer habits is paramount.


32
Brand Opportunity

Living digitally, multicultural millennial consumers are relating to constantly changing
sociological messages. By informing their sensibilities with new culturally relevant
content received from influential and reliable social channels, brands can become a
trusted source in popular culture content creation.


33

DIGITAL
INFLUENCE


34
Defining Influence

Influence is the ability to change, alter or modify consumer attitudes and behavior. It is
a function of emotion which shapes beliefs, values and perceptions. When combined
with purchase consideration, influence motivates and inspires consumers to engage.


35
Influencers
Source: Nielsen Social Media Report, 2011


36
Areas of Influence

Celebrity Current
Alcohol Arts Automotive Cooking Culture Design Dieting Drugs
& Gossip Events

Entrepre- Fraternal &
Dining Diversity Education Entertaining Family Fashion Film Fitness
neurship Sororal

Gambling Gaming Green Health Internet Language LGBT Money Music Politics

Social
Religion Sexuality Science Sports Style Technology Travel Video Wellness
Cause

Source: Crosscut Advisory LLC, Culture Segmentation Study, 2010

37
Defining Digital

Digital:
Relating to or
using symbols to
inform the senses

38
Defining Digital Influence

Digital influence is the ability to broadcast opinion and incite new behavior on a meta
scale. Organizations and individuals send and respond to messages that reflect their
ideologies and philosophies; outreach - the recruitment new affinities, stewards and
advocates expands circles of influence.


39
Circles of Influence

Circles of influence are constantly shifting, mixing and colliding with each other. Our lives
are woven between people, places and things; digital technology allows us to seamlessly
move from one circle to the next instantly. The fluidity of digital and scale of social circles
ultimately influences everyone within popular culture.


40
Levels of Communication Intimacy

Our verbal interactions are less personal and intimate. As social circles expand humans
express themselves through multiple technologies and mediums, creating new content to be
shared with new and evolving social circles and networks.
Source: Transutation Sciences, 2011

41
Follow Me

The act of Following is a direct response of influence. It assumes leadership and an
understanding of direction. Socially, most in our digital universes are willing to follow as
spectators, consuming digital content which expresses the sentiment of others. Viral
transmission creates tipping point calculus, where popular culture follows.


42
Digital Ecosystem


43
Channels of Digital Influence
SOCIAL NETWORKS

MICROBLOGGING NETWORKS

ENTERTAINMENT NETWORKS

SMS/INSTANT NETWORKS

PURCHASING/SHOPPING NETWORKS

Source: Crosscut Advisory LLC, chart from published data, 2011

44
Rate of Digital Influence
Content & Messaging, Media

• Accuracy
• Frequency
Reach
Speed

•
• Impact
• Platform

Time
Source: Crosscut Advisory LLC, 2011

45
Measuring the Impact of Influence
• Adoption
• Affinity
• Awareness
• Esteem
• Loyalty
• Persuasion
• Preference
• Purchase
• Purchase consideration
• Recall
• Respect
• Switching
• Trial
• Trust
As digital consumption becomes more seamless with everyday daily life, living is likely
to become more influenced from a digital perspective. What, where, when, why and
by whom we are influenced are variables of our social and digital communities.
Mobile digital perspectives are constantly refreshed with new digital intelligence.


46
The Ultimate Measure

Liking allows people to immediately become part of the wider discussion. In a sense it
is a digital vote, an opinion at a specific moment in time, that broadcasts our
intentions and feelings to the public. Liking is one of the highest forms of influence.


47

MULTICULTURAL
CONSUMERS


48
Demographics

The largest, most ethnically and racially diverse generation in American history are
Millennials. Thirty-nine percent are minorities; twenty percent have at least one immigrant
parent; ten percent has at least one non-citizen parent.
Source: Pew Research Center, 2011


49
Being Multicultural

Millennial multicultural youth are creating enormous change in their world. With new
media, digital technology and information, they are in constant contact with one another,
creating enriched content that diffuses virally entertaining and guiding popular culture.


50
On the Inside

Multiculturalism has been proven not just to be an ideology, but rather a spirit of modern
socioeconomics, influencing mass adoption consumption of new, culturally relevant experiences.
The sharing of digital files containing new lexicon, imagery, philosophies, perspectives and
entertainment are indications of multicultural expressions. Digital is the new voice.


51
The M Factor

Multicultural consumers are motivating the public to engage in new expressions of their digital
selves, recreating and reinterpreting the essence of identity. These new influences define a
new era of possibilities which have been democratized through digital mediums and networks.
The M Factor is the credible and persuasive force of change.


52
Constantly Moving the Conversation

Digital conversations are never static. They move with time and space from one view point to
another. Multiculturals are transporting new ideas across borders and regions, looking for
other social outlets and personalities who share similar views. And the marketplace is full of
new ventures where digital access and platforms extends the reach of their digital voices.


53
Human Profile
• 18-29 sweet spot, 18-34 is the wider target
• Confident, connected, and open to change
• Hispanics represent 19% of all multicultural Millennials
• Twenty-five percent of all children born today are Hispanic
• Unemployment of ages 20-24 is 14%; 37% not officially in workforce
• Largest active military enlistees since Silent Generation
• Less religious and more spiritual
• Leading adopters of new technology
• Social has become a digital medium and platform
• 38% have a tattoo; 23% are sporting body piercings
• Life Priorities: Marriage, parenthood, career success, social cause
• 45% are from divorced families
• Morality is relative and subjective
Source: Pew Research Center; Paul Taylor - Confident, Connected and Open to Change, 2011


54
Consumer Profile
• Socially active, no kids, independent, migratory, open to dating
• Living two inter-related lives - one digital, one analog
• Millennials, Multicultural, Poly-ethnic
• Pan-American geographic representation - they are everywhere
• Social need to interact online with other people and communities
• Need to express opinion, be heard, tell their stories
• Social sharing: Giving and receiving digitally plugs them into pop culture
• Innovative and technologically curious - there are no wrongs
• In learning mode - absorbing as much content as possible
• Forever mobile and transient
• Embraces cultural and racial differences with pride - less acculturation
• Strong and growing social-to-political viewpoints

Source: Pew Research Center; Paul Taylor - Confident, Connected and Open to Change, 2011


55

CONSUMER
INSIGHT


56
Consumer Insight

Multicultural millennials look for digital signals to respond and engage in social and digital
communication. Digital signals are directional and informative language empowering
people to find what they are seeking. Social networks, communities and individuals have
branded specific signals to help direct the flow of global digital conversations


57
Environmental Signals

Symbols are shorthand signals which instantly indicate purpose, action or intent. People
are alerted by signals as they move through environments, helping establish protocol and
significance.


58
Digital Signals

Multicultural millennials look for digital signals to respond and engage in social and digital
communication. Digital signals are directional and informative language empowering
people to find what they are seeking. Social networks, communities and individuals have
branded specific signals to help direct the flow of global digital conversations.


59

IMPLICATIONS


60
Situation Analysis

Multicultural millennials are looking for new direction in the digital universe. They are
broadcasting their own unique digital signals to the world, reaching out and communicating
their social and digital attitudes and beliefs. Navigating new digital pathways can socially
awkward, so youth look up to leadership brands that pave their own way.


61
Implications for Brands

In order for brands to become digitally relevant to multicultural millennials, they must
influence them with a value proposition which can be manifested in their analog and
digital worlds simultaneously. Knowing how and what signals to broadcast in a virtual
marketplace is paramount for future consideration and purchase.


Multicultural Digital Influence on Consumer Markets - A Study

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Multicultural Digital Influence on Consumer Markets - A Study