A consumer group which continues to experience population growth, has unique generational behavioral trends and characteristics, and a projected buying power of $1.1 trillion by 2015, African-Americans are still a viable market segment full of business opportunities, according to the African-American Consumers: Still Vital, Still Growing 2012 Report released by Nielsen and the NNPA.
Released during the Congressional Black Caucus Foundation's (CBCF) 42nd Annual Legislative Conference, the report is the second of three annual installments of collaboration between Nielsen, a global provider of information and insights into what consumers watch and buy, and the National Newspaper Publishers Association (NNPA), a 72-year-old federation of 200 African-American community newspapers.
The number of African-Americans in America has reached almost 43 million. With a healthy representation of today’s population, coupled with an attractive collective buying power, businesses have opportunities to increase market share with African-American consumers.
Key insights from the report include:
Advertising spending in African-American media totaled $2.10 billion in 2011, compared to $120 billion spent with general market media during the same time period.
91% of African-American believe that African-American media is more relevant to them.
Brand name products represent 82% of African-American households’ total purchases compared to 31% for private labels.
54% of African-Americans own a smartphone, a 21% increase from last year’s ownership.
54% of the African-American population is under 35; compared to 47% of the general population.
48% of African-American grandparents live with their grandchildren and serve as primary caregivers.
African-American Baby Boomers (45-64) spend more time at the stores or grocers, fast food restaurants and the gym, and they prefer television and print as primary media sources.
Generation Y (18-34) African-Americans are more likely to spend time at someone else’s home and select radio, mobile phones and gaming consoles as their media of choice.