Black Buying Power: Watch Where You Spend Your Money

Most big advertisers don’t respect the African American consumer
By David Alexander, Special to the NNPA from Our Weekly –
How much do most big corporate advertisers respect the African American consumer—25 percent, 15 percent, 5 percent, or one percent?
If you guessed one percent you were wrong. It’s less than that—.68 percent, to be exact.
Of the $263.7 billion spent annually on advertising within the nation, less that one percent is used to target African American consumers, despite the fact that Black buying power is estimated at around $857 billion, according to the 2010 census.
Ken Smikle of Target Market News notes that “the largest single investment corporate America makes is advertising,” but only a trickle is spent targeting African American consumers, a group that has been and continues to be underestimated, underserved, disrespected and misunderstood.
Pepper Miller, co-founder of the Hunter-Miller Group, a multicultural marketing firm, and co-author of the book “What’s Black About It?” explains that one of the most common misperceptions advertisers have is that mainstream publications will reach all possible consumers. Since most African Americans speak English, they generalize, there is no need to market outside of the mainstream publications.
“Marketing is about segmentation, diversity and understanding who your customers are,” counters Miller, who has devoted many years to the field of diverse marketing. But why do advertisers feel that way when these facts are taught in most marketing classes, and when it is known that most African Americans generally distrust the mainstream media?
A 2008 study by Radio One entitled “Understanding Black America” revealed that only 13 percent of African Americans trust the mainstream media, and out of 29 million Blacks, only 2 million can be reached through mainstream publications.
read more here