The African-American The African-American MarketplaceMarketplace

The African-American The African-American MarketplaceMarketplace

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Table of ContentsTable of ContentsTable of ContentsTable of Contents

Introduction Slide 3

Demographic & Geographic Trends Slides 4-17

Purchasing Power & Spending Patterns Slides 18-24

Media & Technology Usage Slides 25-28

Advertising to African-Americans Slides 29-32

Marketing and Advertising Slides 33-38

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According to the U.S. Census Bureau, According to the U.S. Census Bureau, the the

African-American population reached African-American population reached 39.6 million in 2009 (12.9% of the 39.6 million in 2009 (12.9% of the

U.S. population), making them U.S. population), making them the second largest minority group.the second largest minority group.

According to the U.S. Census Bureau, According to the U.S. Census Bureau, the the

African-American population reached African-American population reached 39.6 million in 2009 (12.9% of the 39.6 million in 2009 (12.9% of the

U.S. population), making them U.S. population), making them the second largest minority group.the second largest minority group.

3Source: U.S. Census Bureau Annual Population Estimates 7/09, released 6/10

A Demographic ProfileA Demographic ProfileA Demographic ProfileA Demographic Profile

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Key Census Bureau FactsKey Census Bureau FactsKey Census Bureau FactsKey Census Bureau Facts

The African-American population is 52% female to 48% male.

The African-American population is younger with a median age of 31.3 years compared to non-Hispanic whites at 41.2 years.

African-American households are slightly larger than the average non-black households – 2.6 persons vs. 2.5 persons.

The African-American household is slightly more likely to have children under 18 (0.8 persons vs. 0.6 persons for whites and others).

83% of African-Americans 25 years and older completed high school or a higher level of education in 2009.

33.8% of African-Americans were enrolled in college in 2009.

5Source: U.S. Census Bureau, Annual Estimates 7/09; Bureau of Labor Statistics 10/09

African-American Population is Younger African-American Population is Younger than Non-Hispanic White Populationthan Non-Hispanic White Population

African-American Population is Younger African-American Population is Younger than Non-Hispanic White Populationthan Non-Hispanic White Population

6Source: U.S. Census Bureau Annual Population Estimates 7/09

Completed 4 Years of College or More: Completed 4 Years of College or More: U.S. Total & African-American for U.S. Total & African-American for

Population 25+Population 25+

Completed 4 Years of College or More: Completed 4 Years of College or More: U.S. Total & African-American for U.S. Total & African-American for

Population 25+Population 25+73% More African-American Adults are College Grads in 2008

vs. 1990

7Source: U.S Census Bureau, Current Population Survey, 7/09

11.321.3

25.6

28.0

29.419.6

18.5

16.5

2008

2006

2000

1990

African-American

Total U.S.

Educational AttainmentEducational AttainmentEducational AttainmentEducational Attainment

Percent of “25 and Over” in African-American Population in 2008

8Source: U.S Census Bureau, Current Population Survey, 7/09

19.6

19.5

35.1

17.0

8.5

31.6

17.9

32.6Bachelor'sDegree+

Some College

High SchoolGrad.

Less ThanHigh School

Grad

African-American

Non-Hispanic White

Types of HousingTypes of HousingTypes of HousingTypes of Housing

46% of African-American consumers own their own homes.

There are 32% of African-American homeowners with mortgages.

14% of African-American homeowners are without mortgages.

54% of African-American consumers are renters.

9Source: Average annual expenditures and characteristics, Consumer Expenditure Survey, 2008 (latest data available)

Household IncomeHousehold IncomeHousehold IncomeHousehold Income

Percent Distribution of Income for Households in 2007

10Source: U.S Census Bureau, Current Population Survey 2008 (latest data available)

20.2

38.3

27.3

16.2

8.3

9.8

24.9

24.9

18.2

11.9

Less than $25,000

$25,000-49,999

$50,000-74,999

$75,000-99,999

$100,000+

African-American

Total U.S.

Geographic PatternsGeographic PatternsGeographic PatternsGeographic Patterns

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The Nation’s New MixThe Nation’s New MixThe Nation’s New MixThe Nation’s New Mix

12Source: L.A. Times, Based on Census 2000

Five States with the Largest Five States with the Largest African-American PopulationAfrican-American PopulationFive States with the Largest Five States with the Largest African-American PopulationAfrican-American Population

New York 3.35 million

Florida 2.98 million

Texas 2.98 million

Georgia 2.97 million

California 2.45 million

13Source: U.S. Census Bureau Annual Population Estimates 7/09

Washington, D.C. Has the Largest Washington, D.C. Has the Largest Percentage of African-Americans in Its Percentage of African-Americans in Its

Total PopulationTotal Population

Washington, D.C. Has the Largest Washington, D.C. Has the Largest Percentage of African-Americans in Its Percentage of African-Americans in Its

Total PopulationTotal Population

Washington, DC 54.0%

Mississippi37.2%

Louisiana32.1%

Georgia30.2%

Maryland29.7%

14Source: U.S. Census Bureau Annual Population Estimates 7/09

Majority of African-Americans Lived in Majority of African-Americans Lived in the South In 2008the South In 2008

Majority of African-Americans Lived in Majority of African-Americans Lived in the South In 2008the South In 2008

15Source: US Census Bureau Annual Population Estimates 7/09

17.6%

55.3%

17.7%

9.4%

Northeast South Midwest West

Top 25 African-American TV MarketsTop 25 African-American TV MarketsTop 25 African-American TV MarketsTop 25 African-American TV Markets

16Source: Nielsen Media Research DMA and Demographic Rank, January 2011

RankDMA

MarketAfrican-American

TV HH

% TotalAfrican-

American TV HH

Cume %African-

AmericanTV HH1 New York 1,256,380 8.9 8.9

2 Atlanta 664,860 4.7 13.63 Chicago 589,240 4.2 17.84 Washington, DC 571,980 4.1 21.95 Philadelphia 551,070 3.9 25.86 Los Angeles 475,180 3.4 29.17 Detroit 378,730 2.7 31.88 Houston 377,960 2.7 34.59 Dallas - Ft. Worth 368,640 2.6 37.1

10 Raleigh-Durham 302,670 2.2 39.3 11 Baltimore 297,580 2.1 41.412 Miami 297,110 2.1 43.5

Top 25 African-American TV MarketsTop 25 African-American TV MarketsTop 25 African-American TV MarketsTop 25 African-American TV Markets

17Source: Nielsen Media Research DMA and Demographic Rank, January 2009

RankDMA

MarketAfrican-American

TV HH

% TotalAfrican-

American TV HH

Cume %African-

AmericanTV HH13 Memphis 268,620 1.9 45.5

14 Charlotte 220,560 1.6 47.015 Norfolk 219,690 1.6 48.616 Cleveland 210,780 1.5 50.117 St. Louis 193,670 1.4 51.518 Birmingham 180,510 1.3 52.819 San Francisco 180,350 1.3 54.020 New Orleans 175,000 1.2 55.321 Orlando 173,730 1.2 56.522 Tampa-St. Pete. 169,960 1.2 57.723 Richmond 159,090 1.1 58.924 Jackson, MS 148,610 1.1 59.925 Columbia, SC 144,170 1.0 60.9

Purchasing Power & Purchasing Power & Spending PatternsSpending Patterns

Purchasing Power & Purchasing Power & Spending PatternsSpending Patterns

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Buying Power of African-AmericansBuying Power of African-AmericansBuying Power of African-AmericansBuying Power of African-Americans

According to estimates from the University of Georgia’s

Selig Center for Economic Growth: The nation’s black buying power will rise from

$318 billion in 1990, to $910 billion in 2009, to $1.1 trillion in 2014, up by 257% in 24 years.

This overall percentage gain outstrips the 189% increase in white buying power and the 206% increase in total buying power (all races combined).

19Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

Share of Total Buying PowerShare of Total Buying PowerShare of Total Buying PowerShare of Total Buying Power

In 2014, African-Americans’ share of U.S. buying power will be 8.7%, up from 8.5% in 2009 and up from 7.4% in 1990.

Nationally, African-American consumers will account for almost nine cents out of every dollar that is spent.

20Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

Factors Leading to Gains in Factors Leading to Gains in African-American Buying PowerAfrican-American Buying Power

Factors Leading to Gains in Factors Leading to Gains in African-American Buying PowerAfrican-American Buying Power

Population growth is faster than the total population and the African-American population is younger.

From 1990 to 2009, the black population grew by 28.8% compared to 16.8% for the white population and 23% for the total population.

Another factor is African-Americans’ rising levels of education. Census data show that the percentage over 25 who have completed high school or college rose from 66.2% in 1990 to 83% in 2008.

Gains also reflect an increasing number of African-Americans who are starting and expanding their own businesses.

Larger proportions of African-Americans are either entering the workforce for the first time or are moving up from entry-level jobs.

21Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

Top 10 States for African-American Top 10 States for African-American Buying PowerBuying Power

Top 10 States for African-American Top 10 States for African-American Buying PowerBuying Power

22Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

1 New York $862 Texas $723 California $624 Georgia $615 Florida $616 Maryland $527 Illinois $458 North Carolina $419 Virginia $38

10 New Jersey $35

State Totals in Billions

States With Largest Growth in States With Largest Growth in African-American Buying PowerAfrican-American Buying PowerStates With Largest Growth in States With Largest Growth in African-American Buying PowerAfrican-American Buying Power

23Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

1 Montana 3112 Idaho 2613 Wyoming 2524 North Dakota 1865 South Dakota 183 6 Maine 1797 Hawaii 1568 Utah 1549 Vermont 150

10 New Mexico 143

State % Increase 2000-2009

Top African-American Average Top African-American Average Annual Consumer Expenditures Annual Consumer Expenditures Top African-American Average Top African-American Average Annual Consumer Expenditures Annual Consumer Expenditures

24Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2008 (Latest information available)

Product/Service Dollars

Housing and Related Charges$13,77

0

Transportation 6,520

Food 4,594

Personal Insurance & Pensions 3,532

Utilities, Fuels and Public Services 3,598

Apparel & Services 1,983

Healthcare 1,595

Entertainment 1,478

Cash Contributions 1,171

Media Usage/Technology Media Usage/Technology UsageUsage

Media Usage/Technology Media Usage/Technology UsageUsage

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African-Americans View Almost 40% African-Americans View Almost 40% More TV Than the U.S. AverageMore TV Than the U.S. Average

African-Americans View Almost 40% African-Americans View Almost 40% More TV Than the U.S. AverageMore TV Than the U.S. Average

Weekly Tuning per TV Household (Hours: Minutes)

26Source: Nielsen Media Research, Television Audience 2009

Cable Plus ADS Hasn’t Increased Since Cable Plus ADS Hasn’t Increased Since 2007 in 2007 in

African-American TV HouseholdsAfrican-American TV Households

Cable Plus ADS Hasn’t Increased Since Cable Plus ADS Hasn’t Increased Since 2007 in 2007 in

African-American TV HouseholdsAfrican-American TV HouseholdsCable Plus ADS % penetration in TV HH

27Source: Nielsen Media Research, Television Audience 2009

85

76

84

84

84

82

80

67

88

87

86

86

2009

2008

2007

2006

2005

2000

African-American

Total U.S.

African-American Internet UsageAfrican-American Internet UsageAfrican-American Internet UsageAfrican-American Internet Usage

eMarketer reported data from an Internet Innovation Alliance study that showed 40% of African-Americans use the Internet regularly, with 19% using it all the time.

Another 27% were considered occasional users. 21% of African-Americans never use the Internet

and 11% said they use it rarely. African-American respondents were nearly twice

as likely as Hispanics to never go online. The top Internet activities for African-Americans

were: keeping in touch with friends and family, education-related activities, accessing information like weather data, and work-related activities like job searching. 28

Source: eMarketer 12/30/09

Advertising Campaigns Advertising Campaigns Targeted to African-Targeted to African-

AmericansAmericans

Advertising Campaigns Advertising Campaigns Targeted to African-Targeted to African-

AmericansAmericans

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General Mills Increasing Spending in General Mills Increasing Spending in African-American Marketing ProgramsAfrican-American Marketing ProgramsGeneral Mills Increasing Spending in General Mills Increasing Spending in

African-American Marketing ProgramsAfrican-American Marketing Programs In an expansion of the Feeding Dreams program, the

new campaign focuses on grassroots efforts, media relations, and an increase in digital outreach.

Feeding Dreams kicked off its second year on August 3rd by honoring local heroes in 4 markets: Memphis, Norfolk, VA, Birmingham, and Charlotte, NC.

The expanded online presence includes: a Web site, Facebook page, Twitter account, and YouTube Channel.

According to Kimberley Bow Sundy, Manager of PR and Multicultural Marketing, “In tough economic times, you have to look at consumer segments who are very brand-loyal and figure out how you can really enhance your dialogue with them.” 30

Source: targetmarketnews.com 7/30/09

Ford Is the Exclusive Automotive Ford Is the Exclusive Automotive Partner of the 2009 Essence Music Partner of the 2009 Essence Music

FestivalFestival

Ford Is the Exclusive Automotive Ford Is the Exclusive Automotive Partner of the 2009 Essence Music Partner of the 2009 Essence Music

FestivalFestival Ford sponsored the Essence festival in New Orleans over the July 4th weekend, with Beyonce as the headlined artist.

The Essence festival is the nation’s largest annual gathering of African-American music and culture, and is unique because it includes 3 days of free empowerment seminars.

Unique programs were created for New Orleans, like sponsorship of the Women’s Day Seminar, to vehicle ride and drive opportunities with the 2010 Ford Fusion Hybrid.

Other activities include a Ford-sponsored Steve Harvey Morning Show Live Broadcast and books signing, a Ford Fusion Hybrid Giveaway as part of their Women Driving Progress Program, a special Lincoln-sponsored T.D. Jakes Tribute, and sneak previews of its newest products.

31Source: targetmarketnews.com 6/11/09

Mandela Day 2009: “Two Hands”Mandela Day 2009: “Two Hands”Mandela Day 2009: “Two Hands”Mandela Day 2009: “Two Hands”

Celebrated for the first time ever on July 18th in New York City.

Advertised through video, print, outdoor and online efforts.

Advocated that New Yorkers volunteer 67 minutes of service to others.

The 67 minutes are representative of the 67 years Mandela dedicated to fighting social justice.

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African-American African-American Marketing and AdvertisingMarketing and Advertising

African-American African-American Marketing and AdvertisingMarketing and Advertising

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African-Americans Show Strong African-Americans Show Strong Reconnection to HeritageReconnection to Heritage

African-Americans Show Strong African-Americans Show Strong Reconnection to HeritageReconnection to Heritage

According to the Yankelovich MONITOR Multicultural Marketing Study 2006, 67% of African Americans say (vs. 43% of Non-Hispanic Whites), “My roots and heritage are more important to me today than they were just five years ago.”

59% of African Americans (vs. 22% of Non-Hispanic Whites) say they, “make a great effort to become more connected with my heritage.”

“The strong connection and/or reconnection to heritage being observed among African Americans suggest marketers need to pay specific attention to the individual cultures. Marketers need to re-examine how to re-engage with African American consumers and how to best support consumer empowerment,” said McGhee Williams Osse, Co-CEO of Burrell Communications.

34Source: Business Wire, 8/11/06

Attitudes on Being on the Cutting EdgeAttitudes on Being on the Cutting EdgeAttitudes on Being on the Cutting EdgeAttitudes on Being on the Cutting Edge

Nearly half of African-Americans feel the need to dress in the latest fashions and keep up with the newest styles.

Nearly half also feel the need to keep up with the latest trends in movies, music and TV.

There is also a growing number of early adopters and trendsetters within the African-American community.

35Source: Don Coleman Advertising/Yankelovich & Partners African-American Monitor

How to Reach this Lucrative MarketHow to Reach this Lucrative MarketHow to Reach this Lucrative MarketHow to Reach this Lucrative Market

Creative executions need to be relevant.

Casting alone does not make an ad or spot targeted toward African-Americans.

Message must be direct, without alienating other consumers who may see it.

Attention to detail is a must, since African-Americans are very perceptive of and attuned to nuances within advertising.

36Source: Don Coleman Advertising

Best Creative AdsBest Creative AdsBest Creative AdsBest Creative Ads

Don’t assume all African-Americans like rap music.

Don’t assume all African-Americans live in urban areas.

Don’t assume all African-American women are single mothers.

Create ads that are engaging, insightful, respectful of and relevant to the marketplace being targeted.

37Source: Don Coleman Advertising

Best Creative Ads Include:Best Creative Ads Include:Best Creative Ads Include:Best Creative Ads Include:

Relevant casting Music Use of relevant celebrities (actors, musicians,

athletes) Eye contact with the consumer Advertisements that are aspirational, youthful,

and energetic in their tone

38Source: Don Coleman Advertising

Thank YouThank YouThank YouThank You

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