Black-Americans Respond to Culturally Relevant Ads
Black consumers are young, influential and hungry for personalized experiences. With a population of 46 million in the U.S. and total buying power of $1.2 trillion, this group should maintain top-of-mind importance for all marketers in the U.S. Even despite comparatively lower income levels, Black households spend nearly as much of their income as the average U.S. household. The mean Black household income after taxes is $44,229, with average annual expenditures of $40,372.
This important multicultural group exhibits unique behaviors that differentiate them from the general market. They tend to consume more media, purchase more ethnic beauty and grooming products, and are more connected to their ethnicity and culture than the general U.S. population. Black-Americans celebrate their lifestyle through music, television, fashion and social media. And because their level of engagement is more prominent on digital platforms than other groups, they continue to define mainstream culture and wield immense influence over how Americans choose to spend their money.
Advertisers who bank their marketing budgets on delivering general market messaging to Black-American audiences are missing out on true moments of authenticity and connection. Listening to and understanding the specific needs and preferences of Black consumers takes time and resources, but will pay off by making the brand message more relevant and impactful.
Pandora set out to prove this concept by conducting a user study among Black listeners to test if general market ad creative or culturally relevant ad creative leads to a better consumer response. Here’s what we found:
Pandora Tests Culturally Relevant Ad Creative Among Black Listeners
After listening to the selected ad, respondents were asked to answer several questions about how much they liked the ad, whether it positively or negatively impacted their intent to purchase, and more.
What We Learned
Lesson #1 Black listeners showed 2x more preference for culturally relevant ads than general market ads.
Cultural Relevance Drives Greater Marketing Impact
"This groundbreaking study provides marketers with tangible proof that culturally relevant ad creative is, in fact, a more effective approach for reaching multicultural audiences," says Keri Degroot, Vice President of Research and Analytics at Pandora. "We're constantly seeking to provide useful insights to our brand partners that help them connect with audiences more efficiently and effectively. This user study is just one step further in that direction."
To learn more about connecting with Black-American consumers, download our new white paper, The Advertiser’s Guide to Multicultural Audiences. It includes the key insights marketers need to know for reaching not just Black-Americans, but also Hispanics and Asian-Americans. And for a quick summary of Pandora’s Black-American user study, check out the infographic below: