Mobile Insights Newsletter — June ’06
Hispanic Consumers Lead Mobile Content Consumption
Focusing on the mainstream may leave a profitable consumer segment behind
As the largest minority group in the United States and with a high propensity to consume mobile content, Hispanic consumers are changing the mobile marketplace. Increased content as well as marketing, advertising and services specifically for Hispanics are essential for mobile operators and media and entertainment companies trying to reach this segment. According to Forrester Research, 62% of Hispanics own a cellular phone and 26% have Web-enabled phones (a higher percentage than non-Hispanics). According to M:Metrics, Hispanic subscriber's propensity to purchase downloadable mobile content like games, ringtones, and graphics is twice that of the U.S. market average.
However, the Hispanic market is not a homogenous one. Marketers have quickly learned that the market is best served by additional segmentation, recognizing the diverse characteristics within this demographic. For example, a Hispanic person may originate from a number of countries, including Mexico, Central and South America, Puerto Rico, the Dominican Republic, Cuba or the United States – each country offering its own unique culture and dialect. In addition to age and origin considerations, the Hispanic community is further defined by different generations, levels of influence, disposable income and language preferences.
During the first Mobile Content Americas conference, held in March, Nicholas Montes, VP of Sales and Marketing at AG Interactive, segmented the U.S. Hispanic population into four distinct categories. According to Montes, the largest segment, Early Adopters, ranging in age from 18 to 34, were born in the United States or have lived here for a long time. They prefer to speak Spanish but usually become bilingual. Influencers, ranging in age from 18 to 49, are generally first generation trend setters, playing key roles in their communities and obtaining higher levels of education. Assimilators, ranging in age from 18 to 39, prefer to speak English and are generally from second or third generations. They have the highest disposable income and are experiencing a resurgence of Hispanic pride. Finally, Traditionalists are represented by new arrivals to the United States and value word-of-mouth opinions.
Courting the Hispanic Market
How media and wireless companies are striving to meet the needs of U.S. Hispanic consumers
Media companies are competing to become the brand of choice for the Hispanic market. Operators are also seizing the opportunity by leasing their networks to Mobile Virtual Network Operators (MVNOs) targeting Hispanics. Read more on what these companies are doing.
Sprint TV En Vivo
Sprint recently announced their first Spanish-language live TV service, powered by MobiTV®. The service includes 15 multimedia channels and complements Sprint’s current selection of Latin Content. Total Call Mobile, an MVNO that is expected to launch in the next few months, will use the Sprint network. Total Call Mobile is a prepaid and postpaid wireless voice and data communications service targeted to the expanding multi-cultural ethnic groups in the U.S.
Verizon Wireless
On the content side, Verizon's V CAST service includes many Spanish-language music selections from popular Hispanic artists. The carrier also offers special plans and services aimed at Hispanics such as in-network calling to Puerto Rico, a multi-language chat service and directory assistance with a Spanish option. These services first debuted in 2004. In addition, Verizon Wireless also sells a prepaid wireless service, INpulse, at Wal-Mart locations in the United States.
Cingular Wireless
Cingular Wireless recently announced that it is converting more than 420 Cingular stores to a bilingual concept, offering signage and collateral in English and Spanish. The stores will be staffed with bilingual sales people that "will be trained to handle the needs of Latino consumers using culturally appropriate selling techniques," according to Cingular. The stores were selected according to Hispanic population density in the neighboring area and are located in more than 40 cities. With nearly 56 million customers, Cingular claims to be the nation's largest voice and data wireless provider and the No. 1 provider to the Hispanic community. Cingular is also using a special advertising tagline, "Adelante," in its Hispanic advertising in lieu of "Raising the Bar."
Yahoo & Telemundo
Yahoo and television network Telemundo recently announced that they are merging the two companies' Spanish-language Web sites into one. Yahoo en Español and Telemundo.com will become one integrated bilingual site offering online media and tools for the growing Hispanic market. However, the emphasis will remain on English content. Jose Rivera Font, general manager of Yahoo North Latin America, notes that 78 percent of Yahoo’s current Hispanic users in the United States have an affinity for English content. Given this, the site will focus on culturally relevant content.
Pushing Prepaid
Given the market dominance of prepaid wireless services in most Latin American countries, MVNOs are eager to embrace the potential for prepaid in the U.S. Click here for an overview of U.S. MVNOs that specifically target the Hispanic market.
- Tracfone is owned by Mexico’s America Movil, and although it is not solely tailored for the Hispanic market, it does boast the highest number of prepaid Hispanic subscribers.
- Movida Communications targets Hispanic immigrants and their children. Spanish is the main language for the handset menu and customer service. Movida content focuses on news and pop culture in Latin America.
- Azteca Mobile caters mostly to bilingual U.S. citizens living along the U.S. - Mexico border. These users travel between the two countries frequently, but do not want to pay international rates.
- Viva Liberty, the Spanish language version of Liberty Wireless prepaid service, offers Spanish music ringtones and partners with firms such as AOL Latino to help sell its services.
- DEXA Wireless, the “first 100% Mexican owned MVNO”, targets the Hispanic population with a prepaid service that provides national coverage with its commercial brand, VA CONTIGO.
- TúYo Mobile offers a bilingual experience in packaging, handset menu and customer service. They offer Latino-themed ringtones, games and graphics. Their unique calling card allows international calling from any phone using their TúYo Mobile balance.
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