Tuesday, September 19, 2006
US Ethnic Markets Account for One-Third of Spending on Teleco
Hispanics and Other Ethnic Markets Account for One-Third of Consumer Spending on Telecommunications, Says Insight Research
BOONTON, N.J., Sept. 18 /PRNewswire/
In 2006, US ethnic communities account for one-third of every dollar spent on consumer telecommunications services, according to a new market research study from The Insight Research Corporation. The largest minority group, Hispanics, representing
nearly 44 percent of the US minority population, spend the most. The ability to tap into the increased spending power of the Hispanic-American,African-American, and Asian-American communities will be crucial to the survival of telecommunications providers over the next five years.
Insight Research's market analysis study, "US Hispanic Use of Telecommunication Services 2006-2011," takes a close look at the purchasing habits and telecom usage patterns of the Hispanic segment of the US population. The study emphasizes that the US Latino market is not one homogenous market; rather, it is made up of many markets. The study found that 68.3 percent of the overall US population owns cell phones, with White Non-Hispanics having the highest ownership rate at 71.9 percent, followed by Asians at 71.3 percent, African Americans at 68.2 percent, and Hispanics
at 60.6 percent. When sub-segmenting the Hispanic market, however, Insight found that English-oriented Hispanics nearly approach the overall market penetration rate at 67.5 percent.
"The purchasing power that the Hispanic-American, African-American, and Asian-American communities exert in the telecommunications industry is not being ignored," says Robert Rosenberg, Insight Research. "Yet the cell phone companies that now spend millions of dollars on undifferentiated Spanish-speaking advertising campaigns that blanket the Latino community have missed the boat. The Hispanic community must be addressed with nuanced messaging appropriate to its internal diversity or those cell phone carriers simply won't survive," Rosenberg concluded.
"US Hispanic Use of Telecommunication Services 2006-2011" examines spending and usage patterns of US Hispanics for wireline, cellular, and pre-paid cellular services, and compares these spending patterns to those of the general population as well as other minority segments, including Asian Americans and African Americans.
CLICK HERE FOR EXCERPTS FROM THE REPORT
Posted by MITCH TV at 6:11 AM