Brown People Competing For Green Dollars

A new study from the University of Georgia concludes that Hispanic spending power will surpass African American buying power in 2007; marking the first year that Hispanics control more disposable personal income than any other U.S. minority group. This conclusion leads me to question the motive behind the research and the social consequences if Hispanics and Blacks buy into the competitive research. Will corporate America pit the two groups against each other when disbursing advertising dollars to their respective ad agencies?

The business case for diversity in corporate advertising has been a solid one for decades. Corporations have slowly realized the importance of advertising to ethnic markets and the results of such efforts to their bottom line. Despite the recent projections, African American consumers continue to be a powerful force in the U.S. economy.

Ethnic spending power is vital to the US economy. The vast majority of states continue to see Blacks as the nation’s strongest ethnic market because of the concentration of the Hispanic population is limited to a few key geographical areas. Hispanics are expected to have buying power of $863.1 billion verse Blacks estimated of $847 billion in 2007.

Despite this collective buying power, minority consumers are still greeted with suspicion about their intentions and with skepticism about their ability to pay. Many companies still function under a non-urban dictate when working with ad agencies. A non-urban dictate means that a company does not want their marketing and advertising materials placed in media that claim an urban audience as their main target.

Hispanics are the largest and fastest growing ethnic group and will comprise 8.5% of the nation’s total consumer market next year. Rosa Rosales, President of LULAC, says that she hopes the study will get the attention of companies who have ignored the Hispanic consumer.

I find it hard to believe that the Hispanic consumer has been ignored given the tremendous success of Hispanic owned advertising agencies. Maybe it’s time that African American consumers themselves take a stronger stand by taking their dollars to companies who advertise directly to them. Not only will this send a large economic message to companies who engage in discriminatory practices, such as non urban dictates, it will also send a strong message to all other companies that consumer discrimination will not be tolerated.

Imagine a pep rally where all of the ethnic groups competed for the top spending power chanting “We spend more! Yes, we do! We spend more! How about you?” Sounds ridiculous doesn’t it? Pitting two ethnic groups against each other is nothing to cheer about it. Inclusion is about engaging everyone. Separation is about keeping things apart. Which team are you on? Which team are you rooting for?

Mrs. Crystal Brown-Tatum is the CEO and President of Crystal Clear Communications- a Houston based advertising agency and public relations firm with whose portfolio boasts work for Fortune 500 companies including Intel, Wal-mart, Comp USA, Best Buy and Audi. The firm was ranked as a 2006 and 2007 “Top 20 Public Relations Firm and named the 4th Fastest Growing Woman Owned Businesses in Houston in 2007 by the Houston Business Journal.

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