MADISON, Wis. (6/13/14)--Numbering 21 million, Hispanic-Americans make up about 21% of the millennial population; certainly a demographic with buying power, and one credit unions must focus on to remain competitive in the market.
A report by eMarketer, a digital marketing research firm, recently dug into just how much buying power Hispanic millennials in the United States have.
Apparently, they carry more than previous generations of Hispanic-Americans, according to Stephen Amendt, digital service manager at EC Hispanic Media.
"Their buying power often surpasses that of older Hispanic adults," Amendt said. "We see that reflected in the different ads that they view--especially in the automotive sector. We see them interested in buying newer cars than their parents are interested in."
But it's not only older generations who Hispanic millennials outspend. Despite earning less than non-Hispanic whites on average, Hispanic millennials spend 10% more.
That trend may only increase, as Hispanics now pursue higher education at a faster clip than non-Hispanic whites, with 49% of Hispanics enrolled in higher education compared with 47.2% of non-Hispanic whites.
Other findings in the report that credit unions should note, meanwhile, were that Hispanics have taken to mobile technology just as much as other demographics.
The reason? Privacy, and independence.
"There's often one computer at home shared by the entire family," said Nancy Tellet, senior vice president of research and consumer insights at Viacom's Tr3s Digital. "They don't want to wait in line to get on the computer. And privacy, you don't want someone else to see what you're doing. If it's a shared computer, that's hard to avoid. To them, smartphones are a form of digital independence."
And with those mobile devices, Hispanic millennials are participating in social media networks at a high rate as well. Nearly 85% of Hispanic Internet users between the age of 18 and 29 use Facebook, Twitter or some other social networking site.
This trend is especially apparent when comparing social media activity during award shows, which often attract high rates of social media use.
"You can't compare the number of tweets from the Academy Awards to the Latin Grammys because the audiences are different, but if you divide tweets by audience, our viewers are significantly more prone to tweeting than non-Hispanics," said Roberto Ruiz, senior vice president of Univision Communications.