The U.S. Hispanic population and its purchasing power are growing swiftly. Hispanic spending power has reached $700 billion and it is projected to reach a $1 trillion by 2010. The U.S. Census Bureau figures estimate that the total U.S. Hispanic population at 42.7 million; the largest minority group in the US and the fastest-growing group. In 04-05, the population grew by 3.3 percent. By 2050, Hispanics will constitute 24 percent of the total population with a count of over 100 million people.
(Source: HispanTelligence)

Hispanic advertising will reach $5.5 billion revenue by 2010, according to Kagan Research .The difference between Hispanic marketing and mainstream marketing is relevancy. The same strategies used in general market can apply here, but they have to be fine tuned to the Hispanic market. It is important to know the audience you are talking to and how it will perceive the message.

It is risky to market directly to the Hispanic market because if it is not done correctly, not only will you miss optimum results because the message was not clear, concise or the wrong media was used, but also you will take the risk of offending both the group that you intend to target and other groups that you were not.

The example of the Bank of America’s campaign of opening bank accounts to Hispanics without the social security numbers backfired when it offended many anti-illegal-immigration groups.

Traditionalists, Second, Third and Fourth Generations Hispanics

There are two types of Hispanic consumers, first generation that are also called traditionalists and second, third, and plus generations.

The first generation was born and grew up in their native countries before immigrating to the US. Their life style and purchasing habits are greatly influenced by the cultures of their native countries. The second & Plus generations are the US Born and bred Latinos. They live the Latin lifestyle but also speak English. This is a growing and a promising group. It is also the most challenging to reach. If advertisers spend their money in traditional Hispanic media such as Univision and telemundo, they would be mostly talking to the first generation Latinos and miss out on the second & plus Hispanics.

How to Advertise effectively to Hispanic Market

As with other markets, understanding your target consumer is important.

Here is some advice on what to do and what to avoid when advertising to Hispanic consumers.

1. Knowledge of the market.  You have to make an effort to make a connection at the community level.

2. Cultural nuances & sensitivities are significant: The Hispanic market is diverse. It contains several subcultures with different sensitivities. What would work with Puerto Ricans in the North East may not necessarily work for the Mexican Hispanics in the South West. Nowadays, it is necessary to market in Spanish and in English to reach both Latinos that speak Spanish and those that speak English.

3. Sincerity is important: Be a community player. How are you are serving the community? How are you participating in its betterment? You have to show that you care about this demographic. If your participation is seen as positive for the community and your target consumers, you will be rewarded. 
Building brand awareness takes time

4. Following up. It takes time to develop a marketing & advertising program. There are no instant results. It is important to follow up and fine tune and adjust your initial campaign. You have to be serious, persistent to make a dent in this market. The rewards and the loyally will follow.