Advanced Search

Blacks constitute 12.2% of US population but get only 1.4% of targeted ad spend
28 April 2020 (Edited )
Share this article:

Ad spend designed to reach black consumers is down by double-digit percentages across all media in 2020

A new report from market researchers Claritas finds that although the black American consumer market comprises 12.2% of the total population and is worth $780B in aggregate annual spend, advertisers are allocating only 1.4% of targeted ad spend to this market, and year-over-year media spend is consistently down across channels:

  • Network television -13%
  • Digital -12%
  • Syndicated television -11%

That's a big market, and obviously one that significantly underserved.

Here are more insights into the US black consumer market from Claritas:

  • Between 1990 and 2019, the US black population grew by 40% to more than 42 million, and is expected to exceed 21% of the US total by 2024.
  • Blacks make up a larger share of the population in younger age groups: 13.4% of children age 4 and younger vs. 7.6% of seniors aged 75+. Blacks will make up an increasingly larger share of the US consumer market as time passes.
  • Where most US blacks live:
    • South (60%)
    • South Atlantic (36%)
    • New York, Atlanta, DC, Chicago, Philadelphia DMAs
  • Where black population growth is strongest:
    • Cities: Atlanta, Houston, Dallas, Orlando, Tampa, New Orleans
    • Emerging growth states: Washington, Colorado, Arizona, Wyoming
  • The mean household income of US black families in 2019 was $61,376 - 27% below US average - but will grow as younger blacks enter the workforce.
  • Blacks are more likely than the general population to own a smartphone.
  • The top 3 streaming services/apps used by blacks are:
    1. YouTube, used by more than 13M
    2. Netflix (more than 10M)
    3. Pandora (more than 8m)
  • Top 3 websites used by blacks are:
    1. Google (19M)
    2. Amazon (12M)
    3. Yahoo (8M)
  • Top social media sites/apps used by backs (discounting defunct Google+):
    1. Facebook (17M)
    2. Instagram (9M)
    3. Linkedin (4M)
  • 34% of blacks report spending 10 or more hours weekly using the Internet, 38% using social media sites.
  • Top 3 ways blacks use the Internet on smartphones:
    1. Listening to music (11 M adults)
    2. Listening to radio (8M)
    3. Playing games (7M)
  • Ways blacks use the Internet on smartphones significantly more than the general population:
    1. Job search (145% of mean)
    2. Watching free TV (148% of mean)
  • Black households spend on average $50,333 on consumer goods and services.
  • Black households spend an average of $2,722 - less than the overall population average - on food and non-alcoholic beverages consumed away from home, but are more likely frequently to use quick-service restaurants, and nearly as likely to eat breakfast in restaurants.
  • Black households spend an average of $2,000 on entertainment - less than the US average - but spend more on movies (at theater), professional sports, R&B/hip-hop concerts and health/fitness expos.

Comments - actionable items:

  • Note the major geographic black markets, and those that are growing. Advertise there.
  • Deliver age-appropriate messages to young people, so they know you when ready and able to buy.
  • If you're located in an "emerging black population growth" state - get in early.
  • Make sure you're findable in Google and Facebook (and YouTube, if appropriate).
  • Make sure all your advertising is mobile-friendly for all those smartphones.
  • Run ads near music, news, games and on free TV channels.
  • If you own an independent restaurant, try to find ways to outcompete McDonald's (etc.) - maybe breakfast specials could be the tip of a wedge.
  • Find ways to be visible at the kinds of events blacks prefer to attend.

When/if I find some research specifically on the black travel/tourism market, you'll be the first to know.

Share this article:

And if you have questions or comments, you can easily send them to me with the Quick Reply form, below, or send me an e-mail.

David Boggs MS    - David
View David Boggs's profile on LinkedIn

Google Certifications - David H Boggs
View my profile on Quora
Subscribe to my blog

External Article:

Subhead Ad spend designed to reach black consumers is down by double-digit percentages across all media in 2020
Visit Website
4/5 based on 1 vote.
Show Individual Votes
Related Listings

Sorry, you don't have permission to post comments. Log in, or register if you haven't yet.

Please login or register.

Members currently reading this thread: