Advanced Search

Blacks constitute 12.2% of US population but get only 1.4% of targeted ad spend

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

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.

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    - 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: