Abstract
Nearly one out of every three dollars spent on residential telecommunications
services in 2010 came from US ethnic communities, so the spending power of the
Hispanic-American, African American, and Asian-American communities have
become crucial to the survival of telecommunications providers. This market
report takes a close look at the purchasing habits and telecom usage patterns
of the burgeoning Hispanic segment of the US population. In the last census,
Hispanics surpassed the African-American population as the largest minority
group in the US. US Hispanic purchasing power is now growing at nearly twice
the rate of the general population, fueled by continued population growth and
increasing Hispanic employment and income levels.
US Hispanics are heavy users of local, long-distance, international, and
wireless calling. Prepaid and post-paid services have also experienced
explosive growth in the US Hispanic market.
In this report, Insight examines spending by US Hispanics on local,
long-distance, wireless, and pre-paid services, and compares these spending
patterns to the general population and to other minority segments including
Asian Americans and African Americans.
Report Excerpt
Hispanics Fueling US Market Growth
On March 24, 2011, the US Census 2010 announced that 36.7 percent of this
country's residents were part of a group other than non-Hispanic Whites - or
to put it more simply, well over one-third of the United States' population is
comprised of minorities. As of April 1, 2010, the country's minority
population totaled 111.9 million, while the total US population stood at 308.7
million.
In 2010, Hispanics remained the largest minority group, comprising 50.5
million people or 16.3 percent of the total US population. Over the past
decade, Hispanics have been responsible for an ever increasing share of
consumer purchasing power. The relatively young Hispanic population, with
proportionally more individuals either entering the workforce for the first
time or moving up on their career ladders, argues for additional gains in
buying power. Hispanics' spending patterns are helping to determine the
success or failure of many youth-oriented products and services - including
telecom and technology offers. It is this phenomenon that our study will
attempt to illuminate.
Insight Research conducted a telephone survey of 500 Hispanic households in
October of 2007, October of 2008, and October of 2009 and most recently in
February of 2011. These Hispanic households were interviewed regarding their
phone expenditures. Interviews were conducted among a nationally
representative sample of Hispanic adults 18 years of age and older across the
contiguous US. Half of the sample consisted of males and half consisted of
females. Utilizing quotas and a statistical weighting scheme, the data was
balanced in proportion to the population of the US. Data was collected by
gender, age, country of origin, language spoken, income, education, region,
markets and acculturation. The results of our survey as well as other
findings are presented in the chapters that follow.
The number of Hispanics counted in the 2010 Census was nearly one million more
than the Bureau's own estimates. Hispanics remain the largest and youngest
minority group in the US. Among children ages 17 and younger, the 17.1 million
Hispanic youngsters represent nearly one in four children in the US.
The Census makes it clear that Latinos are comprised of two distinct segments:
the native born who represent 70 percent of all US Hispanics and the foreign
born. Native born Latinos tend to be younger, more educated, have higher
incomes, tend to be unmarried with smaller households, and primarily use
English-language media. In contrast, foreign born Latinos, tend to be older,
less educated, have lower incomes, tend to be married with larger households,
and primarily use Spanish-language media. The segments can be further
enumerated by: first generation Latinos, where Spanish culture and language
are dominant; second generation, who tend to be bilingual and bicultural; and
finally to third generation plus, who are US-dominant, both culturally and
linguistically.
In 2010, all of these segments combined had an estimated $1.10 trillion in
purchasing power - and study after study has concluded that they can be
readily reached and engaged using wireless communications technology...
Table of Contents
Chapter - I
EXECUTIVE SUMMARY
- 1.1. Hispanics Fueling US Market Growth
- 1.2. Mobile Technology & US Hispanics
- 1.3. Importance of US Hispanics to Telecommunications
Chapter - II
CURRENT MARKET ANALYSIS AND TRENDS
- 2.1. Overall US Population
- 2.2. Hispanics Are the Largest Ethnic Minority in the US
- 2.3. States with Highest Concentration of Hispanics
- 2.4. Hispanic Demographic Trends
- 2.5. The Purchasing Power of the US Hispanic Market
- 2.6. US Hispanic Market Trends
- 2.7. US Hispanic Households
- 2.8. US Median Hispanic Household Income
- 2.9. US Hispanic Educational Attainment
- 2.10. US Wireless Subscriber Growth
- 2.10.1. US Wireless Minutes
- 2.10.2. Total US Wireless Revenues
- 2.11. Cell Phone Usage in the US
- 2.12. US Cell Phone Usage and Race/Ethnicity
- 2.13. Importance of the Under 18 Market
Chapter - III
ADDRESSING THE US HISPANIC CONSUMER
- 3.1. Marketing to US Latinos
- 3.2. Connecting with Latinos
- 3.2.1. The Wireless Store Experience
- 3.2.2. Shifts in Hispanic Marketing Paradigms
- 3.3. Hispanics and Mobile Technology
- 3.4. US Hispanics Are Important Mobile Marketing Targets
- 3.4.1. The Multicultural Face of Smartphones
- 3.4.2. Smartphones and Unlimited Data Plans
- 3.5. Marketing Trends in a New Multicultural Society
- 3.5.1 US Hispanic Cell Phone Ownership
- 3.6. Reaching Hispanics through Social Media
- 3.6.1. The Attractiveness of Hispanic Social Media Marketing
- 3.6.2. Targeting US Hispanics with Social Media Marketing
- 3.6.3. US Hispanics and Language in Social Media Marketing
- 3.6.4. US Hispanic Usage of Twitter and LinkedIn
- 3.6.5. Hispanic Usage of Niche Social Networks
- 3.7. Smartphone Penetration
- 3.7.1. Smartphones Projected to Outsell Traditional Mobile Phones
- 3.7.2. Wireless Customer Satisfaction
- 3.8. Smartphones Have Become a Media Delivery Platform
- 3.8.1. Minority Groups Buying Smartphones at Faster Rates
- 3.8.2. Smartphone Operating Systems
- 3.8.3. Smartphone Operating Systems by Race/Ethnicity
- 3.9. Teens and Mobile Phones
- 3.9.1. Texting: Teens' Favorite Means of Communications
- 3.9.2. Why Teens Text
- 3.9.3. Calling is Still a Central Function for Teens
- 3.9.4. Types of Calling Plans
- 3.9.5. Smartphones and Teens
- 3.9.6. Cell Phones Help Bridge the Digital Divide
- 3.10. Generations
- 3.10.1. Technology, Appliances and Generations
- 3.10.2. Characteristics of Hispanic Millennials
- 3.11. Hispanics Are Technology Trend Setters
- 3.12. Overall Ad Spending
- 3.13. Hispanic Mobile Marketing
Chapter - IV
HISPANIC COMMUNITY IS THE FOCUS OF CELLULAR, WIRELINE & SATELLITE OFFERS
- 4.1. Mobility Providers
- 4.1.1. AT&T
- 4.1.1.1 AT&T Commitment to the US Hispanic Market
- 4.3. Sprint Nextel
- 4.3.1. Sprint's Multi-prong Prepaid Wireless Strategy 154
- 4.3.2. Sprint Nextel
- 4.4. T-Mobile USA
- 4.4.1. T-Mobile Hispanic Strategy
- 4.4. US Cellular
- 4.4.1. US Cellular Hispanic Community Involvement
- 4.5. Verizon Wireless
- 4.5.1. Verizon's Hispanic Marketing Campaigns
- 4.5.3. AT&T iPhone 4 Owners vs. Verizon iPhone 4 Owners
- 4.6. Wal-Mart
- 4.2. Wireline Providers
- 4.2.1. AT&T U-verse TV
- 4.2.2. Cablevision
- 4.2.3. CenturyLink/Qwest
- 4.2.4. Charter Communications
- 4.2.5. Comcast Corporation
- 4.2.6. Cox Communications
- 4.2.7. Time Warner Cable
- 4.2.8. Verizon FiOS TV
- 4.3. Satellite TV Providers
- 4.3.1. Dish TV
- 4.3.2. DirecTV
Chapter - V
FUTURE PRODUCTS AND SERVICE TRENDS
- 5.1. Wireless Trends
- 5.2. Mobile Devices Overtake PCs
- 5.3. Smartphone Data Usage Climbing
- 5.3.1. Tablet Usage on the Rise
- 5.3.2. Boomers Coming of Age
- 5.4. Rise of Mobile Marketing
- 5.4.1. Online Privacy Legislation
- 5.4.2. Google AdWords Interest-Based Advertising
- 5.4.3. US Mobile Local Ad Revenues to Grow
- 5.4.4. Hispanics Leading Geo-Social Usage
- 5.4.5. Google Maps for Mobiles
- 5.5. The Future of TV Content
- 5.5.1. Growing Number of Americans Watching Web TV
- 5.5.2. Young Most Likely to Watch Web TV
- 5.5.3. Education Boosts Online TV Viewing
- 5.5.4. More Than Half of Cable Viewers Have Interest in Giving Up Cable
TV
- 5.6. Netflix A Growing Threat to TV
- 5.6.1. Netflix, Showtime and Starz
- 5.6.2. Netflix and HBO Go
- 5.7. Social Media and TV
- 5.8. TV Still Dominant Video Device
- 5.9. Today's Teen Grads
- 5.10. FCC Actions Impacting Wireless and Wireline Broadband
- 5.11. Hispanic's and Technology
- 5.12. Survey of Hispanic Cell Phone Use
- 5.12.1. Hispanic Cell Phone Ownership
- 5.12.2. Hispanic Cell Phone Use: Contract Versus Prepaid
- 5.12.3. Hispanic Cell Phone Expenditures
- 5.12.4. Hispanic Wireless Market Attractiveness
- 5.12.5. Hispanic Use of Prepaid Phone Cards
- 5.12.6. Hispanic Use of Bundled Services
- 5.13. Telecom Expenditures
- 5.14. Ethnic Telecom Expenditures
- 5.14.1. Comparison of Ethnic Telecom Expenditures
- 5.15. The Importance of Hispanic Marketing
Table of Figures
Chapter - I
- I-1: US Hispanic Cell Phone Ownership by Country of Origin
- I-2: Millennial Profile by Race/Ethnicity
- I-3: Total US Residential Wireline and Wireless Expenditures
- I-4: Total US Ethnic Residential Wireline and Wireless Expenditures
Chapter - II
- II-1: Total US Population Caucasian vs. Non-Caucasian
- II-2: Percent of The Non-Caucasian Pop. by Race/Ethnicity within the
Entire US Population
- II-3: Growth of the Three Largest US Minority Groups
- II-4: States with Highest Differences between Census Counts and Population
Estimates
- II-5: Regional Population Distribution of US Hispanics
- II-6: US Hispanic Purchasing Power, 2000-2017
- II-7: 2010 Census Hispanic Origin Distribution
- II-8: Percent of Total and Hispanic Households by Size
- II-9: US Hispanic Households by Country of Origin
- II-10: US Median Household Incomes
- II-11: Total US Wireless Subscribership Growth
- II-12: US Wireless Average Minutes Per Local Call
- II-13: Revenue Split between Non-Voice and Voice Wireless Revenue
- II-14: Phone Usage Habits, Women versus Men
- II-15: Monthly Voice and Text Usage by Age
- II-16: Monthly Voice and Text Usage by Race/Ethnicity
- II-17: Monthly Voice and Text Usage by Race/Ethnicity
Chapter - III
- III-1: JD Power and Associates 2011 Wireless Retail Sales Satisfaction
Study
- III-2: Hispanic versus Non-Hispanic Mobile Usage By Application Type
- III-3: Hispanic Home Broadband Access
- III-4: Smartphone Growth Rates of US Hispanic Households vs.Non-Hispanic
Households
- III-5: US Smartphone Penetration Rates by Race/Ethnicity
- III-6: Penetration of Smartphones by Race/Ethnicity
- III-7: Unlimited Data Plan Ownership by Race/Ethnicity
- III-8: Percentage of US Adult Households with Only Wireless Telephone
Service by Ethnic Group
- III-9: Percentage of Bloggers by Race/Ethnicity
- III-10: Percentage by Race/Ethnicity with a Web Site
- III-11: US Hispanic Cell Phone Ownership Based on Nativity
- III-12: US Hispanic Second Generation Cell Phone Ownership
- III-13: US Hispanic Cell Phone Ownership by Acculturation Levels
- III-14: US Hispanic Adult Cell Phone Ownership by Age
- III-15: US Hispanic Cell Phone Ownership by Educational Attainment
- III-16: US Hispanic Cell Phone Ownership by Income
- III-17: Importance of Social Media Programs in the General Market vs. the
Hispanic Market
- III-18: Social Media Tools Used in Reaching the General vs. Hispanic
Markets
- III-19: Hispanic vs. General Consumers Use New Mobile Devices
- III-20: US Hispanic Mobile Phone Users by Age
- III-21: Racial/Ethnic Composition of Twitter
- III-22: Changes for All Multicultural Media
- III-23: Changes for Newer Multicultural Media
- III-24: Terra.com Magazine Ad Targets, Bilingual, Bicultural, Tech-Savvy
Latinas
- III-25: US Smartphone Penetration and Projections
- III-26: ACSI Wireless Customer Satisfaction
- III-27: Top Mobile Activities in the US
- III-28: Cell Phone Activities by Race/Ethnicity
- III-29: Number of SMS Sent/Received per Month by Age Groupings
- III-30: Smartphone Penetration by Race/Ethnicity
- III-31: Mobile Operating System Market Share
- III-32: Mobile Operating System Market Share - Recent Acquirers
- III-33: Operating Share by Race/Ethnicity
- III-34: Parents vs. Teens Cell Phone Ownership
- III-35: US Females with Children Under 18 Owning a Smartphone
- III-36: Percentage of Teen Age Group Who Have a Cell Phone 2004-2009
- III-37: Percentage of Teens Texting Based on Number of Texts per Day
- III-38: Typical Number of Texts per Day by Age/Sex
- III-39: Why Teens Text and Frequency
- III-40: Typical Number of Voice Calls per Day by Age Group
- III-41: Teen Cell Phone Users by Texting Plan Type
- III-42: Popular Features Use by Teen Cell Phone Users
- III-43: Teens by Race/Ethnicity Using Cell Phones to Access The Internet
- III-44: Why Teens Have a Cell Phone
- III-45: Population Profile - US Consumers by Age
- III-46: Millennial Profile by Race/Ethnicity
- III-47: Race/Ethnicity of the Four Generational Cohort Groups
- III-48: Age Group Perception of Dependence by Technology Type Cable
Service Flat Screens (Percent)
- III-49: Age Group Perception of Non-Dependence by Technology Type (Cell
Phone, PC, Internet Access)
- III-50: Necessity of Landline Phone versus Cell Phone by Age Group
- III-51: Hispanic vs. Non-Hispanic Currently Owned Select Consumer
Electronics
- III-52: Hispanic vs. Non-Hispanic Plan to Purchase Select Consumer
Electronics Next Year
- III-53: Hispanic Receptivity to Eleven Types of Digital Media
- III-54: Attitudes toward Advertising, Hispanic versus Non-Hispanic
Internet Users
- III-55: TV Viewing Habits of Adult US Hispanics 18+
- III-56: Prime Time Advertising Reach of Hispanics Ages 18-49
- III-57: Advertising Investment in Multicultural Marketing
- III-58: Ad That Aims to Capture Latina Smartphone Shopper
Chapter - IV
- IV-1: AT&T Q1 Revenue Sources 2010 vs. 2011
- IV-2: Number of Wireless Subscribers by Carriers
- IV-3: AT&T Promotion for Hispanic GoPhone Minutes
- IV-4: AT&T's Natalia Jimenez Ad Highlights Internet Portals
- IV-5: Sprint's Postpaid versus Prepaid Mix 2008 vs. 2010
- IV-6: Sprint's Four Prepaid Wireless Brands
- IV-7: Boost Mobile TV Ad
- IV-8: Sprint's “Everything Data” Plan Running in Print Media
- IV-9: Sprint's Print Ad promotion of Copa Oro 2011
- IV-10: Sprint's Web Site for Promotion of Copa Oro 2011
- IV-11: T-Mobile Father's Day Free Phone Offer
- IV-12: T-Mobile's “El Llamado del Futbol,” Plays Off the World
Cup
- IV-13: T-Mobile “Estamos Juntos” Storefronts in Hispanic
Neighborhoods
- IV-14: Motorola Droid X Spanish Print Ad
- IV-15: Droid Incredible de HTC
- IV-16: Customer Satisfaction Ratings: iPhone 4 AT&T vs. Verizon
- IV-17: AT&T vs. Verizon: Percentage of Dropped Calls
- IV-18: iPhone 4 Percentage of Dropped Calls: AT&T vs. Verizon
- IV-19: Future iPhone 4 Buyers Carrier Preference
- IV-20: Wal-Mart's Family Mobile Print Ad
- IV-21: Percent of Americans Who Say TV is A Necessity
- IV-22: Cablevision Spanish Direct Mailer
- IV-23: Sofia Vergara Comcast Xfinity Spokesperson
- IV-24: Cox's New Digis Icon
- IV-25: Time Warner Cable's Social Network Print Ad
- IV-26: Video Subscribers as of March 2011
- IV-27: TWC Street Event Outside of a Retail Location
- IV-28: Dish Network Packages Under $50/Month
- IV-29: DirecTV Direct Mail Promoting Basic Packages
- IV-30: DirecTV's 2011 Spokesperson Lucero
Chapter - V
- V-1: 2011 Sales Revenue of PC and Non-PC Devices
- V-2: Location-Based Usage by Race/Ethnicity
- V-3: Web TV Viewing by Age
- V-4: Web TV Viewing by Educations Levels
- V-5: Online Users Engaging with TV Shows
- V-6: Video Watching Device Preference
- V-7: Increase in US Hispanic Cell Phone Ownership
- V-8: US Hispanic Cell Phone Ownership by Country of Origin
- V-9: US Hispanic Cell Phone Ownership by Language Preference
- V-10: US Hispanic Cell Phone Ownership by Income
- V-11: US Hispanic Cell Phone Ownership by Education
- V-12: US Hispanic Cell Phone Ownership by Acculturation Leve
- V-13: Prepaid vs. Contract US Hispanic Cell Phones
- V-14: US Hispanic Prepaid Cell Phone Use by Language Preference
- V-15: US Hispanic Contract Cell Phone Use by Education
- V-16: US Hispanic Average Monthly Expenditures on Wireline and Wireless
- V-17: US Hispanic Average Monthly Wireless Expenditures by Amount
- V-18: Percent of US Hispanics Spending >$100 per Month on Wireless by
Income
- V-19: Percent of US Hispanics Spending >$100 per Month on Wireless by
Education
- V-20: Percent of Hispanic Wireless Only Households
- V-21: US Hispanic Use of Bundled Services
- V-22: US Hispanic Use of Unbundled Services by Acculturation
- V-23: US Hispanic Use of Unbundled Services by Income
- V-24: US Hispanic Use of Bundled Services by Type of Provide
- V-25: US Hispanic Use of Satellite Company Bundled Services by
Acculturation
- V-26: Growth of US Residential Wireline and Wireless Expenditures
- V-27: Growth of US Ethnic Residential Wireline and Wireless Expenditures
- V-28: Growth of US Hispanic Residential Wireline and Wireless Expenditures,
- V-29: Growth of African-American Residential Wireline and Wireless
Expenditures
- V-30: Growth of Asian-American Residential Wireline and Wireless
Expenditures
- V-31: Growth of Residential Wireline Expenditures by Race/Ethnicity
- V-32: Growth of Residential Wireless Expenditures by Race/Ethnicity
Table of Tables
Chapter - I
- I-1: Teen Cell Phone Owners Most Likely to Go Online
Chapter - II
- II-1: US Population Growth by Race/Ethnicity
- II-2: States with Largest Percentage Hispanic Population Growth
- II-3: 2010 Census Race, Hispanic Origin, and Minority Distribution: Under
Age 18
- II-4: Median Age in Years, by Sex, Race and Ethnicity: 2009
- II-5: Change in the Hispanic Population by Nativity: 2000-2009
- II-6: Change in the Hispanic Population by Nativity: 2000-2009
- II-7: Hispanic Segmentation Based on Acculturation
- II-8: US Hispanic Households: 2008-2009
- II-9: Percent Latin American Immigrants Age 25 and Older without a High
School Diploma and without a Bachelor's Degree or Higher, by Age at Immigration
- II-10: Percent Educational Attainment of First and Second Generation
Mexican Americans
Chapter - III
- III-1: Most Popular Social Websites for US Hispanics
- III-2: US Hispanics on Twitter and LinkedIn
- III-3: US Hispanics on Tumblr and Badoo
- III-4: Top Smartphone Platforms 1Q 2011
- III-5: Demographics of Teen Cell Phone Users
- III-6: Demographics of Teens Who Text
- III-7: Most Popular Plan/Payment Combinations
- III-8: Teen Cell Phone Owners Most Likely to Go Online
- III-9: Percent Change in Measured Ad Spending
- III-10: Top Ten Advertisers in 2010
- III-11: Top Ten Advertisers in 2010
Chapter - IV
- IV-1: AT&T Wireless Phone/Smartphone Plans
- IV-2: Key Differences Between the iPad and the iPad 2
- IV-3: Comcast Xfinity Triple Play Bundles
Chapter - V
- V-1: Most Popular Sites by Age Group
- V-2: Adults Who Watched a TV Show on The Internet
- V-3: Would Stop Paying For Cable If...
- V-4: Hispanic Population Growth, 2011-2016
- V-5: Total US Residential Wireline and Wireless Expenditures, 2011-2016
- V-6: Total US Ethnic Residential Wireline and Wireless Expenditures,
2011-2016
- V-7: Total US Hispanic Residential and Wireless Expenditures, 2011-2016 334
- V-8: Total African-American Residential Wireline and Wireless Expenditures
- V-9: Total Asian-American Residential Wireline and Wireless Expenditures
- V-10: Residential Wireline Expenditures by Race/Ethnicity
- V-11: Residential Wireless Expenditures by Race/Ethnicity
