Understanding consumer trends and preferences through market research has always been important to marketers. But it's become a business imperative in today’s hyperconnected, competitive marketplace. While countries like Colombia, Dominican Republic, Peru, Chile, Ecuador, and Mexico have led the way in market research investment in Latin America, we must acknowledge the strides made in Central America, notably in Guatemala, Honduras, El Salvador, Costa Rica and Panama.

What’s driving the growth?

Well, several factors are at play. The widespread expansion of the internet has opened up a wealth of data on consumer behavior and market dynamics, now easily accessible with just a few clicks!

Furthermore, the growth of the middle class in the region has generated more sophisticated consumer demands. With a population whose tastes and preferences are constantly evolving, companies must stay up to date. Market research insights are the compass guiding their journey.

Finally, the reduction in extreme poverty in recent decades has been a significant factor. This change has increased consumption and attracted greater domestic and foreign investment, creating a virtuous cycle where economic expansion fuels the imperative for deeper insights.  

How do you navigate the challenges?

Like any journey, navigating market research across LATAM has its share of bends and twists in the road. Access to representative samples of the online population remains an obstacle. Disparities in internet connectivity can skew research results, posing a hurdle to obtaining accurate insights.

As such, data quality is fundamental. With the vast amount of information available online, it is crucial to ensure that the data is reliable and accurate. After all, no one wants to make important decisions based on faulty information.

Additionally, there's an ongoing tug-of-war between traditional methods and online research. Convincing companies to embrace new technologies can be daunting, yet exploring all avenues is essential to paint a comprehensive picture of the market landscape.

What are the market research fundamentals?

First, find an experienced business partner with a track record of providing reliable and representative samples in Central America, like ThinkNow. In addition, instead of seeing online research and traditional methods as adversaries, inquire how both approaches can be integrated to attain a more comprehensive and precise understanding of the market.

Lastly, adopt a balanced approach. While the growth of market research in Central America presents exciting opportunities, sustaining this momentum and fostering its contribution to regional economic development requires addressing industry-wide challenges across LATAM. Collaboration between the public and private sectors is imperative to harness the potential of online research across the region.

References:

World Bank. "Central America: Investment and Economic Growth".

Latin American Institute of Market Research and Public Opinion (ILAM). "Report on the Growth of Market Research in Central America".

López, A. (2022). "The impact of the expansion of the Internet on market research in Latin America". Journal of Economic Studies, 15(2), 45-60.

Today's consumers are confidently embracing their authentic identities, and forward-thinking brands are following suit. Inclusive beauty giants like Ulta Beauty proudly defy gender norms, while others prominently feature same-sex couples and individuals with disabilities and promote body positivity in their advertising campaigns. On the flip side, some brands are succumbing to the fear of appearing overly “woke.” The increasing backlash against diversity, equity and inclusion has prompted a few to backtrack on commitments made during the peak of social unrest in 2020, leaving consumers feeling angered and confused.

Multicultural consumers, who represent almost 100% of the population growth in the U.S. and are on track to become the majority by 2050, seek genuine connections with brands. Central to this is a brand's ability to authentically understand its audience and allow that authenticity to drive consumer engagement.

Brands that bridge cultural divides are the ones that thrive. By genuinely connecting cross-culturally, companies seamlessly align DEI with their bottom line. Inclusivity isn't optional – it's the fuel for long-term success. From diverse workforces to inclusive marketing campaigns, a focus on inclusion strengthens every aspect of a brand.

Understanding multicultural consumers means appreciating their commitment to holistic well-being. Black women prioritize mental health, while Gen Z seeks a shift from the “grind” to self-care and mindful living. Brands that tap into these trends resonate with a broader audience.

In this episode of The New Mainstream podcast, Will Campbell, Co-founder and CEO of Quantasy, shares his perspective on the state of multicultural marketing and how young, diverse generations are driving wellness trends.

In the dynamic landscape of sports fandom, one demographic stands out for its potential to reshape the future: young bilingual Latino fans. These individuals bring a unique perspective to sports, craving innovative ways to express their passion for the game. But that passion goes beyond the field to the experience, whether tailgating or engaging with brand activations. For brands to truly connect with these fans, they must seek to understand and cater to their needs, redesigning the fan experience to create a more inclusive and engaging community.

But what does that look like? Traditionally, sports fandom has been defined by loyalty to teams and players. But that’s evolving as bilingual Latinos navigate between cultures and languages. Understanding cultural nuances and generational differences within the Latino community can translate into higher ticket sales, greater demand for merchandise, and overall fan engagement for leagues.

Because of this, major sports leagues, such as the NFL and MLB, are increasingly embracing the importance of diverse narratives and communities within their fan base. Aside from drafting Latino players and sponsoring Spanish-language simulcasts, leagues and franchises successful at leveraging Latino fandom understand the elements of their sports entertainment offering that appeal to Latinos and invest in supporting those features.

Tapping into this demographic represents a substantial economic opportunity. With nearly 20% of the US population identifying as Latino and 40% considering themselves avid sports fans, there's immense potential for growth and innovation. However, capturing the attention and loyalty of young bilingual fans requires more than gestures like heritage nights, which can be perceived as performative if not integrated into a broader engagement strategy. Engagement demands a deep understanding of Latinos' cultural backgrounds and preferences and a commitment to authentic representation. Sports leagues must incorporate these insights into their growth strategies, ensuring the fan experience reflects the diverse communities supporting them.

In this episode of The New Mainstream podcast, Jesus Chavez, co-founder and CEO of CABRA Sports, delves into Latino sports fandom, exploring the strategies and cultural insights driving the industry’s evolution.

The past year has been a roller coaster ride for multicultural marketing practitioners. From the recent Supreme Court ruling on affirmative action to increased scrutiny of diversity, equity and inclusion (DEI) initiatives, companies are carefully assessing how these factors will impact their multicultural marketing budgets. ThinkNow shares this curiosity and has recently surveyed corporate decision-makers in multicultural marketing and multicultural consumer research, aiming to understand how they are strategically navigating the current landscape.

Download the report here.

The short answer? Budgets are increasing.

Multicultural marketing budgets are on the rise. Two-thirds of respondents plan to maintain or increase their multicultural marketing budgets in 2024. The driving force? Opportunity. Recognizing the economic power of diverse consumers and demographic shifts, companies see multicultural marketing as a key growth strategy.

Among the reasons cited by the 31% of respondents who plan to increase their budgets are identifying new business opportunities, acknowledging cultural influence on their business, and a desire to better represent and impact diverse audiences.

• “Audience business opportunity, cultural influence, growing audience representation and impact.”
• “More budget available to multicultural marketing. Hispanic has historically been a priority. We're on the journey to increase focus with African-American and other cohorts.”
• “Growing diverse consumer impact on business and sales.”

Additionally, respondents highlighted the importance of staying ahead of cultural trends and consumer behaviors to remain relevant and effective in their marketing efforts. This includes understanding the nuances of different cultural identities and tailoring messaging and campaigns accordingly. Companies recognize that cultural relevance is not only a matter of inclusivity but also a strategic imperative for engaging and retaining diverse consumer segments.

Interestingly, nearly 40% of respondents intend to maintain their 2023 budgets, indicating a continued commitment to multicultural marketing. This demonstrates a continued recognition of the economic significance of multicultural consumers and the importance of targeting this segment effectively.

Challenges and Cautiousness

However, amidst the optimism surrounding budget increases, there are challenges and instances of caution. Eighteen percent of multicultural marketing decision-makers plan to decrease budgets, citing general cost-cutting measures and clients shifting towards broader "general population" strategies. Among the reasons given by the minority who stated they’re reducing their budgets were:

• “Budget cuts across multicultural marketing efforts and an increased desire from clients to hit 'wider' audiences; e.g., Gen Pop.”
• “Less clients trying to target multicultural clients.”
• “Lower post-COVID budgets.”

Moreover, there is a growing emphasis on accountability and measurement in multicultural marketing efforts. Companies are increasingly leveraging data and analytics to evaluate the effectiveness of their campaigns and ensure they are resonating with diverse audiences. This includes monitoring key performance indicators such as brand awareness, consumer engagement, and sales lift among multicultural segments.

Adapting Multicultural Marketing Strategies

Still, 1 in 4 companies are adapting their approach. The cost of “getting it wrong” has increased in recent years. No one wants to be in the position Budweiser was in after boycotts erupted in response to their partnership with a trans influencer. In response, some companies are taking a more cautious approach, while others are conducting more research before launching new campaigns.

Key Takeaways:

• Multicultural marketing remains a strategic priority for many companies.
• The economic power of diverse consumers is driving budget increases.
• Uncertainty and cost-cutting pressures are impacting some budgets.
• Companies are adapting their strategies to navigate the changing landscape.

What does this mean for the future? While challenges exist, the prevailing sentiment among many practitioners is that multicultural marketing represents a pivotal avenue for growth. Companies adept at strategically maneuvering through these changes and placing a premium on comprehending diverse consumer demographics will undoubtedly find themselves poised for success.

In the ever-evolving world of programmatic advertising, leveraging diverse data sources to expand audience reach and optimize campaign effectiveness is paramount. As programmatic media buyers, you're likely familiar with DSPs such as The Trade Desk, Xandr, and Google DV360. However, the real game-changer lies in tapping into multicultural insights embedded within these platforms' vast amounts of data.  

The Role of Multicultural Data

Multicultural marketing is not a campaign. It’s an intentional effort to acknowledge and respond to the diverse backgrounds, languages and cultures shaping today’s consumer landscape. For advertisers, understanding the types of data accessible within DSPs is critical to harnessing insights from this data and crafting more relevant and engaging content for multicultural audiences.

Let’s delve into the types of data available.

• Demographic Data: DSPs offer a range of demographic data points – from age and gender to ethnicity and language preferences –  that aid in identifying and targeting multicultural audiences. Specificity is essential to engaging hard-to-reach audiences as it establishes meaningful connections with consumers who may feel overlooked or misrepresented. This specificity enhances campaign effectiveness and fosters a sense of inclusion and authenticity. 
• Behavioral Data: Beyond demographics, user behavior can also provide invaluable insights. Analyzing online behaviors, such as content consumption, search patterns, and engagement levels, helps create a more nuanced understanding of multicultural audiences. Leverage this data to refine your targeting strategies and deliver more personalized content.
• Location-Based Targeting:Multicultural consumers often cluster in specific geographic locations. DSPs facilitate precise location-based targeting, enabling advertisers to reach consumers with localized messaging.

The Power of Zero-Party Data

Now, let’s explore a revolutionary approach – zero-party data. Unlike first-party data, collected without explicit user consent, users willingly share zero-party data. This type of data is gold for programmatic media buyers, offering a transparent and ethical way to gather insights directly from your audience. There are several other benefits to using zero-party data, such as:

• Building Trust and Fostering Engagement: Zero-party data fosters trust and deeper connections with your audience. When consumers willingly provide information about themselves, it builds a culture of transparency and trust, ultimately influencing brand perception. 
• Personalization: Zero-party data goes beyond generic demographic targeting to precise customization, ensuring messages resonate authentically with multicultural audiences.
• Real-Time Adaptability: As people evolve and cultures shift, advertisers must be able to quickly adapt to changing consumer preferences. Zero-party data provides the agility and responsiveness needed to adjust programmatic strategies based on the most up-to-date consumer insights.

Crafting a Multicultural Programmatic Strategy

Blending traditional data sources with innovative approaches like zero-party data is essential to harness the potential of multicultural insights housed within DSPs. Here's a step-by-step guide to crafting a successful multicultural programmatic strategy:

1. Audience Segmentation: Identify and segment your target audience based on demographics, behaviors, and cultural factors. Leverage the robust targeting options your preferred DSP offers to refine your focus.
2. Zero-Party Data Integration: Incorporating zero-party data into your programmatic advertising strategy requires trust. Consumers will be more willing to share their information if they have a safe and supportive space to do so and trust the brand to use the data ethically.
3. Culturally-Sensitive Content Creation: Whether it's language variations, culturally significant visuals, or region-specific messaging, ensure that your programmatic ads feature content that speaks directly to the diverse experiences of your audience.
4. Continuous Optimization: Regularly analyze campaign performance, adapting and optimizing based on real-time insights from traditional and zero-party data. Pivot when necessary to maximize ROAS.

The future of programmatic advertising is inherently multicultural, mirroring the evolving demographics of the U.S. population. By leveraging diverse data sources within DSPs and embracing zero-party data, programmatic media buyers can maximize campaign performance and more meaningfully engage consumers while maintaining ethical data practices.

This blog post was originally published on MediaPost.

As Women's History Month approaches each year, the remarkable strides women have made in business become increasingly clear. However, despite these advancements, certain industries, such as the insights industry, continue to struggle with leadership inequities and a lack of workforce diversity.

While the insights industry prides itself on understanding and reflecting diversity in consumer populations, this awareness often stops short within its own workforce. This creates a troubling gap: the voices informing strategies may be representative, but the decision-makers interpreting and implementing those insights remain predominantly homogenous.

This lack of diversity leads to blind spots and missed opportunities, potentially limiting strategy effectiveness and perpetuating biases. Closing the gap between measured and internal diversity unlocks the full potential of insights, creating more opportunities across the board.

In this episode of The New Mainstream podcast, Ali Henriques, Global Director of Research Services at Qualtrics, delves deeper into leadership diversity and its impact on recruiting and retaining diverse talent.

The modern consumer has evolved. Today, they're not simply passive buyers but active cultural participants who engage with brands that resonate with their values, identities, and lived experiences. This shift has driven the rise of cultural marketing, a nuanced approach that seeks to connect with consumers through their cultural lens.

However, to truly comprehend this cultural lens, marketers must harness the power of market research to gather rich insights directly from consumers. Using online sample is among the most prevalent and efficient ways to gather these insights.

Cultural Marketing in the U.S.

America is a diverse nation, filled with many different cultures. This diversity presents both challenges and opportunities for marketers tasked with understanding how shared values, customs and beliefs shape people’s lives and influence consumer behavior. This cultural intelligence helps brands tailor their messaging, products, and services to resonate more deeply with specific audiences.

Benefits and Considerations for Online Sample

Online panels can help brands understand and target specific cultural groups. However, this market research tool isn’t without its challenges. Let’s look at the benefits first.

Benefits:

• Accessibility and Cost-Effectiveness: Online samples are generally more accessible and cost-effective than traditional methods like face-to-face interviews or focus groups. This allows researchers to reach diverse cultural groups, even those geographically dispersed.
• Targeted Insights: Researchers can design online surveys and tasks specifically tailored to understand the values, preferences, and behaviors of different cultural groups. This data can inform content creation, messaging, and distribution strategies.
• Quantifiable Data: Online samples enable large-scale data collection, providing statistically significant results for better decision-making. This can be especially valuable for understanding niche or underrepresented cultural segments.
• Participant Diversity: Online platforms offer access to a wider range of participants, potentially including individuals who might not otherwise participate in traditional research due to time constraints or social anxieties.

Challenges and Considerations:

• Sampling Bias: Online samples are not immune to sampling bias. If not carefully designed, they may overrepresent certain demographics, leading to inaccurate conclusions about specific cultural groups.
• Cultural Nuances: Online surveys and tasks might not capture the intricacies of cultural attitudes and behaviors. Researchers must be mindful of language, design, and context to avoid misinterpretation.
• Digital Divide: Not all cultural groups have equal access to the internet or digital literacy. This can lead to the underrepresentation of certain populations in online samples.
• Ethical Concerns: Data privacy and participant anonymity are crucial considerations. Researchers need to ensure transparency and ethical data collection practices.

Overall, online sample is a valuable tool for cultural marketing when conducted by experienced market research agencies familiar with online samples’ benefits and limitations so data collection can be implemented with sensitivity and cultural awareness.