May is Asian American and Pacific Islander (AAPI) Heritage Month. This year, Claritas put out a report on the 2023 Asian Market and the value found in multicultural advertising. Multicultural consumers are an important target audience for marketers and advertisers in the United States, and there are over 21.1 million Asian Americans in the United States in 2023, making them an especially important group of focus. Further, 7.76% of the US millennial population is Asian. The Asian American population is only expected to grow in the coming years, meaning that it’s important for advertisers to develop marketing strategies that target and encompass this large population.
According to Claritas data, Asian American households spend about $82.7K a year, which is significantly more than the $71.3K yearly expenditure for the average US household. That amounts to about a 16% difference in spend per year for Asian Americans compared to the rest of the US population.
As we dive into industry specifics, the highest number of Asian Americans indicated that they plan to buy an electric vehicle in the coming years compared to any other demographic group. Additionally, in 2022 Asian Americans spent $383 billion in the luxury goods market, a 22% increase from 2021. This data suggests that the Asian American consumer market is growing in both size and profitability. Therefore, it’s important that your brand start to invest in targeted multicultural advertising in order to reach the widest range of the US population possible.
- Utilize Influencers: Especially for social media, influencers can be a good way to organically connect with your audience. By using influencers who endorse your product and use it every day, you can create a stronger rapport with those who you want to purchase your product. Further, if you want to target a niche audience, you can choose an influencer with characteristics that specifically resonate with that niche audience. This is something that can be leveraged to better connect with multicultural consumers.
- Targeted Ads: Targeted ads are one of the most commonly used ways that marketers reach audiences on social media. Targeted ads display advertisements to individuals based on their interests, demographics, behaviors, habits, etc.
- Programmatic Advertising: As digital streaming continues to take over the television market, it’s important that brands leverage programmatic advertising to reach individuals as they stream on their favorite platforms and devices. Programmatic advertising is advantageous for reaching multicultural groups because it targets specific audiences based on their consumption habits and delivers the ads in real time.
- Interactive Ads: Interactive ads are on the rise, especially those that allow viewers to choose their ad experience from a variety of different options on the screen. This way, consumers are able to learn about a product that is most relevant and interesting to them, as opposed to something that is fed to them to watch by a third party.
Here at Marketsmith, we are well-versed in using data and insights to target specific populations, including the hard-to-reach. We’re here to help you take the first steps in creating a diverse marketing plan.