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The Black Paper THE BLACK PAPER THE BLACK PAPER 1 BlkPaper-BB424-2.indd 1 5/15/17 11:34 AM IT’S TIME TO GET SERIOUS ABOUT DIVERSITY. We’re Here. Get Bold. An agency tackling multicultural representation in the media, marketing, advertising, and tech industries through awareness, consulting, and connections. www.boldculture.co 2 THE BLACK PAPER BlkPaper-BB424-2.indd 2 5/15/17 11:34 AM ALL ROADS LEAD TO A FACT QUITE OBVIOUS FOR ADVERTISING AND MARKETING EXECS: BLACK CONSUMERS AND CREATIVES ARE INCREDIBLY INFLUENTIAL. DESPITE THIS, BIG BRANDS MOSTLY STRUGGLE TO REACH AND KEEP THEM. WE OFFER A WAY FORWARD. A PUBLICATION OF THE BLACK PAPER 1 BlkPaper-BB424-2.indd 1 5/15/17 11:34 AM TABLE OF CONTENTS 5 THIS ISN’T KANSAS ANYMORE: MORE LIKE ATLANTA 9 MEASURING INFLUENCE 10 PEPSI POPS ITS OWN BUBBLE 12 DONALD GLOVER AS MARKETING GURU 13 LIKE WILDFIRE 14 BLACK WOMEN DOMINATE 16 IT’S A TRUST THANG 17 HOW HAVE BIG BRANDS GOTTEN IT WRONG? 19 BLACK AMERICANS IN ADVERTISING 25 IMPROVING BRAND OUTREACH 27 NOTES AND REFERENCES 2 THE BLACK PAPER BlkPaper-BB424-2.indd 2 5/15/17 11:34 AM TEAM DARREN MARTIN JR. Chief Executive Officer AHMAD BARBER Chief Creative Officer JARED LOGGINS Contributing Editor Contributors BIANA BAKMAN JUDA BORRAYO STEPHEN FELDMAN BlkPaper-BB424-2.indd 3 5/15/17 11:34 AM IN A WORLD WHERE ANYONE CAN COMMUNICATE WITH ANYONE EVEN ON THE OTHER SIDE OF THE GLOBE HOW DOES YOUR BRAND STAND OUT? 4 THE BLACK PAPER BlkPaper-BB424-2.indd 4 5/15/17 11:34 AM THIS ISN’T KANSAS ANYMORE: MORE LIKE ATLANTA WRITTEN BY: JUDA BORRAYO In the last 20 years, the elevation of targeted majority Black-owned businesses grew 34%.” marketing, big data, and social media has IMPROVED EDUCATION AND Black female-owned businesses represent 59% greatly influenced marketing strategies. INCOME HAS LED TO THE of all Black businesses and 15% of all female- RISE IN BLACK AMERICAN owned businesses.2 New technologies, reductions in barriers to PURCHASING POWER entry, and the explosion of social media, make That means about 2.6 million individual it easier for businesses to connect with One major contributor to the rise in Black businesses with over $150 billion in sales are audiences anywhere in the world. American purchasing power is education. owned by Black Americans.3 Simultaneously, customers are able to discover Black Americans are experiencing a twist to MINORITIES HAVE MORE and buy from companies that align with their the classic Robin Hood saying of “the rich YEARS OF BUYING POWER values, which has given them increased power getting richer and the poor getting poorer.” in the purchasing process. In tandem this has On the contrary, you could say the poor are This is a nod in the direction of opportunity. led to greater satisfaction among customers getting smarter, more flexible, and better and revenue growth for businesses. educated. Black Americans are getting richer In “The Making of a Multicultural Super and pulling more Black Americans up the Consumer,” Nielsen shares that today, Asians, The world is now flat: global and local income ladder with them. Hispanics, and Black Americans make up 38% marketing is possible on a scale like never of the total population. That’s more than 120 before. Why? Because of the existence of A rise in education leads to increased buying million people combined.4 digital marketing. In a world where anyone power. can communicate with anyone – even on the Multicultural consumers remain loyal to a other side of the globe – how does your brand Black American audiences are more educated, brand or product for longer, so if you are in the stand out? have higher spending power than ever, are business of subscriptions, consumer packaged influencers, and are growing at a rapid rate. goods, or recurring purchases – listen up, How does your brand or client’s brand get the Yet marketers and decision makers haven’t because Black Americans and multicultural attention and/or sales of target consumers? woken up to spending more on advertising audiences have more years of buying power to multicultural audiences, at least not yet, a than non-Hispanic Whites. (Please note: Which audiences are currently leading to more potentially costly misstep. non-Hispanic Whites, for this report, are sales, because they are actually spending Caucasians, here on referred to as non- more money? “Fully 89% of African-American Hispanic Whites.)5 Millennials ages 25-34 completed high Never before has it been so easy to tell a story school, compared to 77% of those If you’re in the business of luxury goods, you and connect publisher-to-reader. Good stories 55 and older. Furthermore, 21% of may also want to note: according to Nielsen, earn a slice of attention that could lead to Black Millennials ages 24-34 have an non-Hispanic White audiences fall short of the brand awareness or sales. associate’s degree or higher, versus years of buying power of Black Americans.6 17% of those who are 55 and older.”1 What few executives and brands have caught Buying power is the amount of money that a onto – yet – is the gold mine potential that According to Nielsen, Black businesses person or groups of people have available to businesses have to market to multicultural represent 9% of all U.S. businesses. They go spend – whether on investments, goods, or audiences – especially Black American on to affirm, “data shows that in the five-year services. audiences. period between 2007 and 2012, the number of To put this in perspective, Black American THE BLACK PAPER 5 BlkPaper-BB424-2.indd 5 5/15/17 11:34 AM To put this in perspective, Black American buying power BLACK AMERICANS 42.3 YEARS OF BUYING POWER was $320 billion in 1990; according to the Univesity of Georgia’s Selig Center for Economic Growth. Black buying power is expected to reach $1.4 trillion by 2020.7 To put this in full context, Mexico’s GDP in 2015 was valued at 8 $1.144 trillion dollars. ASIAN AMERICANS 52.3 YEARS OF BUYING POWER In short: if you are not marketing to Black Americans, or multicultural audiences in general, you may be missing out on repeat business and open wallets. HISPANICS 56.5 YEARS OF BUYING POWER Furthermore, the failure of brands to tap into Black buying power demonstrates the extent to which Black Americans are undervalued as consumers. HERE ARE THE NUMBERS, FOR 2016 NON-HISPANIC WHITES 36.7 YEARS OF BUY Source: The Nielsen Company, “The Multicultural Edge: Rising Super Consumers” (PDF file), accessed March 2017. WHERE DO BLACK AMERICANS DO BUSINESS? You’ll find educated, affluent, and committed Black Americans working in healthcare, transportation, STEM, retail, sports, education, entertainment, and many other industries. This matters given the strong correlation between consumers and their relationship to the products and services they trust. In addition, it is of no surprise to most that Black Americans are also trendsetters in music, sports, TV, and entertainment, but we will get to that later in this Black Paper. THERE ARE MORE YOUNG BLACK STUDENTS THAN EVER IN HISTORY Younger Black Americans are finishing high school and higher education at unprecedented rates. Oh and there’s more great news for marketers able to reach the hearts of this booming demographic. In one of their reports, Nielsen goes on to share that: “The share of African-American households with an income under $25,000 declined from 43% in 2004 to 37% in 2014, while the share of households with annual incomes over $100,000 increased from 7% in 2004 to 12% in 2014.”9 So Black Americans’ pockets are heavier and trending upwards. Source: The Nielsen Company, “Young, Connected And Black African-American Millennals Are Driving Social Change And Leading Digital Advancement 2016 Report” (PDF file), accessed March 2017. This is great news for those who gain customer loyalty among this increasingly more affluent community. Bad news for brands that ignore cultural norms, traditions, and completely face-plant in relating to Black American audiences. Even worse news for those closed to the possibilities. Imagine what your brand and your reach could be like if you appeal to this young and increasingly affluent, trendsetting culture. Appealing to the Black American demographic could mean direct increases in your yearly revenue, brand loyalty, and profits for your shareholders. Source: The Nielsen Company, “Young, Connected And Black African-American Millennals Are Driving Social Change And Leading Digital Advancement 2016 Report” (PDF file), accessed March 2017. 6 THE BLACK PAPER BlkPaper-BB424-2.indd 6 5/15/17 11:34 AM KEEPING UP WITH THE JONESES, THE BROWNS, AND THE DAVISES What does the average Black American household spend money on? For one, Black Americans spend significantly more money on basic food ingredients and personal care products.10 Black Americans are also passionate about entertainment – both consuming and creating. “Entertaining is also very important in the African- American community. Annual events such as family reunions, cultural festivals, and alumni gatherings connect Blacks in a unique way that focuses on fellowship and is cross-generational.”11 Everyone loves to be entertained, including Black Ameri- cans. According to Nielsen, “African-Americans ... spend more on watching movies and purchasing video games than the total population.” While non-Hispanic Whites average 3.1 annual movie ticket purchases, Black Ameri- cans purchase 3.7; for video games, Black Americans come Source: The Nielsen Company, “Young, Connected And Black African-American Millennals Are Driving Social Change And Leading Digital Advancement in at 1.2 annual purchases vs 0.7 for non-Hispanic Whites.12 2016 Report” (PDF file), accessed March 2017.
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