• The US multicultural population comprises 40% and has seen an increase over the years.
  • Pandemic Paradox: Consumers in lockdown spend more time with media, yet most advertisers cut their advertising budgets.
  • Blacks and Hispanics take into account more brands along the path-to-purchase.
  • Asian-Americans consider a limited number of brands.

As COVID-19 cripples the economy and prolongs uncertainty, a drastic shift in consumer habits has been evident worldwide. During the peak of the pandemic, consumers reduced their expenditure by buying mostly essentials, McKinsey reports. They also refrain from spending on discretionary items and costly investments, one of which is automobiles.

With consumers reluctant to pull-out money from their pockets, automobile marketers in the US face the challenge of introducing a distinct marketing strategy that can convince people to purchase vehicles during these low times.

In Nielsen’s Auto Path-to-Purchase annual report, analysts mentioned that even though consumers spend less than usual, they are more exposed to media than in the pre-crisis period. Consumers in lockdown spend more time with media, yet most advertisers cut their advertising budgets. Nielsen analysts called this phenomenon the pandemic paradox.

At present, the US multicultural population already rose 40% nationwide. Projections show that America’s diversity will continue to increase. It can go up to half of the nation’s population 25 years from now. As diversity continues to rise, Nielsen suggests that reaching multicultural consumers should be a top priority during this new reality.

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Source: US Census Bureau

The study gathered resources to help marketers understand how to strategize marketing campaigns during the new normal. Nielsen has pulled in their support—surveys, reports, and education dedicated to consumerism—and segmented them based on race to present streamlined consumer findings. Below are six valuable conclusions drawn out from the Nielsen’s Auto Path-to-Purchase series.

#1 Start Your Marketing Engine With Brand Awareness

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Based on their records, analysts found that consumers from key multicultural groups are aware of fewer brands than the general population. Hispanic, Black, and Asian Americans record 10-20% lower total awareness than other races, an avenue to propel investments on branding efforts and engaging consumer dialogue.

In this research that focuses on consumer’s path-to-purchase, analysts strongly believe that marketers must first instill the brand on their target market’s minds before moving forward in the customer’s journey.

Multicultural consumers recall a limited set of car brands into consideration. There is a need for marketers to address their brand’s shortcomings as most purchase decisions can be traced back to brands that consumers recognize before emerging on the path-to-purchase stage.

#2 Drive Consumers With Your Ads in the Path-to-Purchase Journey

Timing is usually essential in almost everything. In the previous edition of this study, Nielsen found that the number of brands that consumers consider before making a purchase decision evolves, starting relatively low and climbing as the purchase gets closer to the purchasing date. The crucial timing of persuasion is a challenge in marketing, where it’s essential to reach the consumer when your ad matters when there’s a plan to purchase.

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In Figure 2.1 chart above, all races are open to looking into more brands near their decision to purchase. Hispanics and Blacks are seen most likely to look into roughly six vehicle brands before settling for a decision. On the other hand, Asian Americans and Non-Hispanic White people limit their choices to around 3 to 4 car brands.

#3 Get on the Fast Lane: Television Proven Best for Ad Recall

During the pandemic’s heightened period, as everyone stayed in the comforts of their home, many consumers found refuge in watching Television (TV) to stay informed and entertained. Due to the stay-at-home, TV viewership rose in all aspects, including cable and streaming services. Nielsen experts believe this trend will stay longer.

Despite the number of digital channels to access a consumer — through the smartphone, tablet, laptop, or PC — TV a traditional media surprisingly ranks by far the top source for auto ad recall.

Based on the findings, when consumers were asked to identify from where they saw a recent ad for an auto brand, 84% of them replied that they saw it on TV. It is followed by print gathering 29% of responses, then by digital and radio consecutively.

Also, Hispanics are twice as likely to recall an auto ad on TV compared to other populations. TV recorded a high recall rate for all will be a great channel for your multicultural advertising as it is proven to generate efficiency and high returns.

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#4 Reach Hispanics That Comprises Digital Traffic

Hispanics make up the largest ethnic or racial group in the country. About 60 million Hispanics reside in the United States, comprising 18.3% of the country’s population. Compared to the general population with an average age of 38, for Hispanics, the median age is just at 30 — nearly six-out-of-ten being Millennials or Gen Z. Hence, Hispanics have a thriving and young population.

As a large percentage of the Hispanics are young, they are more exposed and connected to digital channels. The digital-savvy population spends 50% more time watching subscription videos and listening to the radio on their phones than their counterparts.

With close-knit family ties, many tend to live in multi-generational households, play video games, and listen to others’ opinions — family, neighbors, friends, and celebrity endorsers — when they purchase.

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Topping digital exposure, Hispanic consumers are twice as better than others at recalling carmaker ads they see online on mobile and social media, as figure 4.1 illustrates.

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Nielsen analysts suggest marketers invest in digital video advertising as it was one of the fastest-growing channels even before the pandemic, and while consumers’ new media habits have only pushed the trend to continue. Moreover, digital video platforms today — enhanced targeting and measurement features — will boost your brand’s standing among Hispanic consumers.

#5 Appeal to Black Consumers in Various Media Routes

African Americans have a prime-aged population living in the United States, with 25 million under the millennial generation out of 48 million. For Blacks, the recorded average age is 34.

Out of all the groups, Black car shoppers have been the most receptive to all forms of media. They have the highest ad recall advertised on traditional media: radio, billboards, and direct mail.

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Among-black-consumers-even-light-radio-users-consider-more-brands-than-average

In targeting black consumers, Nielsen recommends marketers to think beyond generalized messages but rather make an effort to genuinely appeal to their cultural sensitivities to win their hearts along the path-to-purchase. Though brands rarely touch on social and political movements, by showcasing authentic support to the race, you can enable your brand to win favor. Also, a well-balanced omnichannel campaign should resonate well with the Black consumer base.

#6 Asian Americans Are on All Media High-Way

In recent years, the Asian American population has been considered the fastest-growing immigrant group in the USA. Though they relatively account for a small community compared to Black and Hispanic people, they’re an incredibly diverse group with more US-born consumers. Currently, the majority of Asian American immigrants are Chinese, Indian, Filipino, and Vietnamese.

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In tapping in the Asian-American demographic, marketers should consider digital landscape and print as those are the top media they consume. Asian Americans seem to be avid readers as they are seen as more attentive to print advertising than any other racial group.

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Furthermore, Nielsen has found out that Asian Americans are most likely to bear in mind more auto brands, the heavier they get exposed to social media and the internet. As conveyed in the graph below, heavy users of social media consider almost double the number of brands as light users do. The more time Asian American respondents spend on social media, the more brands they consider buying.

more-time-on-social-media-boosts-consideration-among-asian-americans

Asian Americans tend to be more conservative in their automobile choices as they consider fewer options than the general population across all age groups. On the chart above, the highest number of brands considered by light users is 2.4 percent lower than that of Hispanics and Blacks, taking into account 3.7 and 4.2 percent, respectively.

Compared to Hispanics and Blacks car shoppers, Asian Americans do not exhibit the ‘low awareness, high consideration’ dynamic. As shown in Figure 1.1, under the first subhead, Asian Americans are aware of fewer car brands than their counterparts. Yet, they don’t seem to be opening themselves to more options, even when they are treading on the path-to-purchase.

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Marketers can unleash this group of conservative consumers’ potential by targeting heavy media users amidst the diverse Asian-American group. Marketers would have the most chances to showcase their brand and be remembered by this niche through digital channels and print media.