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The Power of Multicultural Advertising: Reaching Diverse Audiences
USA minority groups buying power is expected to rise from 4.2 trillion in 2020 to 7 trillion by 2025. With this significant growth, brands cannot afford to overlook the importance of targeting multicultural communities in their advertising strategies.
In this blog, we will explore why brands should focus on diversity, how they can effectively reach multicultural communities, and the benefits of doing so.
Why is Multicultural Advertising Important?
Brands aspire to capture the hearts of millions and establish a lasting brand recall as their primary objective. Yet they miss out on a larger portion of the audience.
Multiculturalism has played a significant role in this endeavor, showcasing its positive impact on our daily lives. This can be observed through the fusion of diverse cultures in ethnic enclaves found in metropolitan areas and the availability of various ethnic cuisines in supermarkets. One of the driving forces behind the market expansion in the past decade has been the multicultural consumer market, currently valued at over $5 trillion.
The corporate expansion serves as a pivotal factor in this growth, benefiting all brands. As markets expand, more consumers enter the fray, leading to increased consumption and fostering innovation by introducing new products. This, in turn, promotes higher usage and the potential for premium pricing. When executed effectively, this generates greater revenue and income, consequently enhancing purchasing power.
A renowned brand from the FMCG industry had a boost in sales in North America. Interestingly, a larger portion of their sales was accounted for by diverse communities of the region.
What is Multicultural Advertising?
Immigration encompasses more than mere physical mobility; it represents the dynamic exchange and interplay of diverse cultures. Each individual carries the bedrock of their identity, fostering the emergence of vibrant and multicultural communities.
Expanding Horizons: Beyond the LGBTQ+ Community
While many advertisers focus solely on the LGBTQ+ community when it comes to multicultural advertising, it’s essential to remember that diversity encompasses various ethnic groups. In the United States, Black, Hispanic, Asian, Pacific Islander, Native, and Indigenous Americans makeup 40% of the population. It is crucial for brands to recognize and target the entire multicultural communities to maximize their reach and impact.
How can Brands Reach Multicultural Communities?
The advertising arena is under evolution. The phase-out of third-party cookies has inclined advertisers towards contextual advertising. Since cross-culture targeting poses a set of challenges that are hard to overcome with conventional targeting methods, contextual targeting methods can be beneficial.
Some of the challenges are:
1. Cultural Sensitivity: Multicultural communities are sensitive towards their presence. Brands must understand their diverse cultural nuances and sensitivities. They must ensure that their message resonates with the viewer.
2. Language Barrier: Brands need to ensure that their message is tailored well according to the specific group they are targeting. Understanding the intricacies of each culture is crucial for creating effective campaigns that resonate with the target audience.
3. Limited Reach and Targeting: Traditional advertising channels often need to be improved when it comes to reaching specific multicultural audiences. Targeting these communities through one or more channels can be complex as they may cause hindrances in targeting methods.
To overcome these challenges, advertisers can leverage Silverpush’s advanced AI technology, Mirrors. This offers enhanced brand safety and suitability, allowing advertisers to reach their desired audience contextually and through different platforms.
YouTube
To begin with, the best way to reach the audience is through video advertising. Did you know, 82% of the global content consumption is from videos. With contextual video advertising, brands can easily tap into the audience as the AI offers the first in-video detection based on the identification of celebrities, brands, objects, places, actions, on-screen text, and audio for granular targeting.
Open Web
Conventional targeting created voids that further created challenges for brands to reach their desired audience. But by analyzing the page’s content in real-time and combining relevant information, it provides personalized advertising, filling the gaps.
Meta
Sentiment analysis and NLP tools search countless Facebook pages to find the most contextually appropriate video material. Mirrors target high-performing sites by correlating context relevance with engagement metrics (likes, shares, comments, and subscriptions).
Brands can effectively reach their audience while respecting their privacy by utilizing contextual advertising, which capitalizes on the reader’s existing interests and aligns ads with the content they consume. This contrasts with behavioral targeting methods that can leave users feeling monitored and followed.
Conclusion
According to a survey, 64% of consumers agreed that they engaged with a brand after seeing an ad that they considered diverse or inclusive.
Multicultural communities have long-awaited recognition and representation, and they can be found across the globe. One prominent example is the city of New York in the United States. Known as a melting pot of various cultures, people from all over the world call New York home. Its remarkable diversity is one of its greatest strengths and contributes to its status as a leader in creativity and innovation. Similarly, Toronto in Canada and London in Europe are home to diverse communities.
When it comes to advertising, it is crucial to recognize that multicultural communities should not be targeted as a one-time or occasional effort. Instead, brands should strive to engage with these communities consistently throughout the year. These diverse communities represent the future audience, and establishing a meaningful connection with them is essential to staying ahead of the curve in an increasingly diverse world.
By understanding and embracing the multicultural nature of society, brands can tap into new markets, foster inclusivity, and build lasting relationships with diverse audiences.
Source: SilverPush
Why is multicultural marketing important?
Multicultural Marketing Overview
Multicultural marketing (also known as ethnic marketing) is the practice of marketing to one or more audiences of a specific ethnicity—typically an ethnicity outside of a country's majority culture, which is sometimes called the "general market." Typically, multicultural marketing takes advantage of the ethnic group's different cultural referents—such as language, traditions, celebrations, religion and any other concepts—to communicate to and persuade that audience. Cultural and Ethnic variation in multi-cultural societies such as the United States provides marketers with the opportunity to connect with consumers by developing consumer segments for targeted marketing initiatives. For example, insight into to the culture and ethnicity of consumers is applied directly to consumer targeting through a variety of marketing initiatives in the U.S.
Cultural and Ethnic variation in multi-cultural societies such as the United States provides marketers with the opportunity to connect with consumers by developing consumer segments for targeted marketing initiatives. For example, insight into to the culture and ethnicity of consumers is applied directly to consumer targeting through a variety of marketing initiatives in the U.S. Multicultural marketing acknowledges differences in perception, motives and beliefs among consumers with different cultural backgrounds, utilizes cultural norms of several cultures to maximize exposure of the business's product or services by demonstrating interest and appreciation of different cultures (De-Mooij, 2015). For a multicultural marketing strategy to succeed, cultural differences must be identified, understood, and respected. Businesses must communicate on different "wavelengths" and adapt to different markets around the world (Wilkinson & Cheng, 1999).
Multicultural marketing (aka, ethnic marketing or cross-cultural marketing) applies unique marketing techniques to access the ethnic market. "Ethnic market" refers to cultures other than the majority culture in a company's home area. Multicultural marketing strategies involve recognizing a culture's traditions, beliefs, values, norms, language, and religion—and applying those aspects to market to that culture's needs. (Source: Wikipedia)
Why is multicultural marketing important?
Multicultural marketing plays a key role when working with a diverse audience, especially if companies are looking to maximize their messaging to an audience of different backgrounds. According to research by Iterable, 75% of consumers state they are more likely to support a brand when their ethnicity is represented.
What are the elements of multicultural marketing?
Meanwhile, multicultural marketing is taking into full consideration the target customer's ethnicity, language, religion, traditions, celebrations, and other applicable factors and utilizing this information to craft a marketing message that attracts them to your business.
What are multicultural marketing strategies?
Multicultural marketing, more specifically, refers to a marketing strategy that recognizes the differences in culture and ethnicities of a target market. Successful inclusive marketing campaigns aim to break advertising norms by highlighting people or groups that may be under- or misrepresented.