• by Jack Loechner , Staff Writer @mp_research, December 10, 2014

According to a study by Adroit Digital to gain insight into how Hispanics shop online and respond to online advertising efforts, advertisers can evolve in tandem with the Hispanic shopper. A younger population means Hispanic earning power stands to increase exponentially by 2024. In this way, Hispanic online shopping habits may increasingly mimic those of Millennials, as a large chunk of the Hispanic population is already in the 15-to-34-year-old age bracket.

Having increased by 62% in the last 15 years, the Hispanic demographic represents the largest contributor to this country’s population growth. While the total US population rose by 0.7% in 2013, the Hispanic population grew by over 2% to bring the total number of Hispanics currently living in the US to 50.5 million. By 2050, Hispanics will represent one-third of Americans, says the report.

Hispanics are younger than the overall US population, with 70% under age 40. “Upscale Hispanics,” those with an annual household income between $50,000 and $99,000, are responsible for nearly 40% of Hispanics’ $1.3 trillion spending power. Overall, Hispanics spend six more hours a day connected to a technology device than the general population.

If advertisers want to incentivize shoppers to make an online purchase with them instead of a competitor, they should offer price discounts, says the report. 81% of the respondents would be enticed by this offer, while free shipping came in second at 74%. More women than men chose price discounts, 84% and 77%, respectively.

Loyalty points and freebies had equal footing, enticing 35% and 34%, respectively, of all respondents, with the genders evenly represented. However, those 45 and over were most likely to choose loyalty points, which captured 42% of all participants in this group. 

Advertisers have a 50/50 shot of turning off Hispanic shoppers if they display an ad to them post-purchase or after a visit to their site. 54% do not begrudge advertisers that display these ads. The age groups most responsive to targeted ads are 25-to-34-year-olds and those 45 and over. The 35-to-44-year-old group was the most likely to be turned off by ads, with 55% answering “yes.”

When it comes to shipping price, most Hispanics are willing to shell out no more than $6. Of our survey respondents, 37% would decide not to complete a purchase they had intended to make if shipping cost more than $6. However, some Hispanics will drive an even harder bargain. The second most chosen answer was any price at all, with 18% of Hispanics saying they wouldn’t make a purchase unless shipping was free. This is an important lesson for retailers, says the report.

If a price discount isn’t possible, free shipping is the clear way advertisers can get Hispanic shoppers to complete an online purchase on their site. 76% chose this option; alternative payment came in a far second at 56%. A good mobile experience was the least enticing offer, attracting just 27% of respondents; of the age groups, this choice was most popular with 18-to-24-year-olds at 31% and those 45 and over at 28%.

64% would spend their money at another retailer if they encountered higher-than-expected fees during an online purchase, with the 18-to-24-year-old category, at 19%, most likely of all the age groups to stay with the same retailer. Men are more likely than women to stay with the same retailer even if fees were higher than expected, 20% and 16%, respectively.

72% of Hispanic consumers spend more time shopping on their laptop or personal computer over a smartphone or tablet. Those 45 and over are the heaviest PC users when shopping, at 78%. Females are slightly more likely to use PCs than males, at 73% and 70%, respectively. 16% use their smartphone predominantly and 12% use their PCs and mobile devices equally.

The majority of the respondents use a retailer’s website over an app for mobile shopping. 58% of the participants use a website to shop; this is the most common choice amongst all the age groups. A slightly higher percentage of women than men shop on websites, 61% and 55%, respectively.

Fashion rules for the Hispanic respondents to the survey. 49% are most likely to click on ads that take them to a fashion or beauty retailer’s site to make a purchase. 56% of all female respondents chose this category compared with 42% of men, and this answer was slightly more chosen amongst 35-to- 44-year-olds, who made up 52% of respondents.

 The second and third most popular answers were lifestyle at 42%, and health and fitness at 34%. News was the bottom answer, and men were more likely to visit these sites than women, 15% to 11%, respectively. The news category was most popular with 25-to-34-year-olds, with 17% of all respondents in this age category selecting this option.

Hispanic shoppers are equally as likely to respond to a number of ad mediums. to influence purchase decisions. TV and online display tied as the best mediums through which to influence shoppers, both bringing in 43% of the vote; social media was close behind at 42%. TV was the most popular with all age groups except for 18-to-24- year-olds, who were more likely to choose online display or social, with each selection grabbing 43% of this age category. Males selected the billboards more than females, at 22% and 15%, respectively.

59% of the respondents are not more likely to respond to a retailer website that has a Spanish option. More men than women were likely to make a purchase from a site with a Spanish language option, with 43% of total male respondents and 38% of all female respondents. Of the age groups, 46% of 25-to-34-year-olds were more likely to purchase from a site with a Spanish option.

The report concludes by noting that Hispanics are digital power users, staying consistently connected as they work, play and shop and becoming increasingly mobile. Yet, they are still predominantly shopping via their laptops and respond most to TV advertising and online display ads. They have demonstrated openness to targeted advertising, but will quickly abandon a brand that charges over a certain amount for shipping, doesn’t offer a secure payment process or fails to incentivize shoppers to choose them over another retailer.

The right data and media mix will prove to be the most important tools in the advertising arsenal for reaching more Hispanic shoppers, suggests the report.

For more about The Power of Hispanic Shoppers Online, please visit Adroitdigital here.