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Revival of the Black American Marketplace - US - January 2009

African Americans, with a buying power projected to reach $1.2 trillion by the year 2012, higher education and professional achievements, a Black president in the White House, prove that Black Americans and Black culture have come to the forefront of the national conscience once again.

Today, many companies realize the value of having a multicultural marketing strategy that includes Black consumers. Unfortunately, many advertisers have experienced mixed results from their programs and many cite a lack of credible metrics to determine the success of their efforts.

This report will assist marketers in understanding the following:

  • Economic and educational factors, along with life experience create as many viewpoints as there are individuals within the race

  • The election of President Barack Obama and its effect on the mindset of Black consumers

  • The portrayal of African Americans in advertising and in the media today

  • Why it is important for marketers to ensure that personnel on any team targeting African Americans have enough cultural sensitivity and multicultural marketing experience to fully understand the Black consumer market

  • Black media, its history and importance to the Black community as a trusted, unbiased provider of culturally-relevant news, opinion and entertainment

  • The meaning of wealth and education to African Americans, along with the long-held obligation to reach back and pull another up and how marketers can engage with consumers to achieve this goal

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Sources
          • Consumer survey data
            • Other sources
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                      • Segments of the Black community
                        • Black Affluents
                          • Black Aspirationals
                            • Black Christian market
                              • Black African and Caribbean immigrants
                                • Hip-Hoppers
                                  • Black Boomers and retirement
                                    • Black cultural insights
                                      • Black consumers and the American Dream
                                        • The Black church and its importance in the Black community
                                          • Black family/Black households
                                            • Portrayals of African Americans in the media
                                              • Online Black consumers
                                                • Media consumption
                                                  • Black cultural pride
                                                  • Inspire Insights

                                                      • Trend 1: The Obama Factor
                                                        • What’s it about?
                                                          • Trend 2: New Fundamentalism
                                                            • What’s it about?
                                                            • Insights and Opportunities

                                                                • The myth of post-racialism
                                                                  • Multi-racialism
                                                                    • President as intellectual and the effect on kids
                                                                      • The President as global celebrity
                                                                        • Michelle Obama’s influence
                                                                          • Fashion and frugality
                                                                            • Parenting and family
                                                                              • The President as his own man
                                                                              • The Black Consumer

                                                                                • Comparing Black to White
                                                                                  • Demographics
                                                                                    • U.S. population is becoming more diverse
                                                                                        • Figure 1: Population by race and Hispanic origin, 2003-13
                                                                                      • U.S. Black population
                                                                                        • Black population by age
                                                                                          • Figure 2: U.S. black population, by age, 2003-13
                                                                                          • Figure 3: U.S. population, by generation, 2008
                                                                                        • U.S. Black geographic concentration
                                                                                            • Figure 4: Black geographic concentration, by region, 2007
                                                                                          • Black population by state
                                                                                            • Figure 5: Top 10 States by total Black population, 2007
                                                                                            • Figure 6: Top 10 States by Black population as a percentage of total population, 2007
                                                                                          • Black buying power by state
                                                                                            • Figure 7: Top 10 States by Black buying power, 2007
                                                                                          • Generational insights among Black consumers
                                                                                            • Black generations
                                                                                              • Black metros
                                                                                                • Figure 8: Top 10 metropolitan areas with the largest number of Black residents, 2005-2007
                                                                                              • Black income and purchasing power
                                                                                                • Black income is increasing
                                                                                                  • Figure 9: Household income distribution for all households and Black households, 2007
                                                                                                  • Figure 10: Purchasing power, by race/ethnicity, 2007
                                                                                                • Income of Black households versus total U.S. households
                                                                                                  • Figure 11: Increase in percentage of Black households with incomes of $50,000 or more vs. total U.S. households
                                                                                                • Black affluents
                                                                                                  • Home ownership and household size
                                                                                                    • Black home ownership
                                                                                                        • Figure 12: Percentage of homeowners, Black vs. total homeowners, top 10 metros, 2007
                                                                                                      • Average household size
                                                                                                        • Figure 13: Average household size, by race/Hispanic origin of householder, 2001 and 2006
                                                                                                      • Hip-Hop women delay marriage and childbearing
                                                                                                        • Figure 14: Deferred Marriage and Childbearing among black women, 2007
                                                                                                        • Figure 15: Households with children, by race and Hispanic origin of householder, 2007
                                                                                                      • Country of origin/heritage
                                                                                                        • African Immigrants
                                                                                                            • Figure 16: U.S. Immigrants, Baccalaureate and advanced degrees, by continent/region of origin, 2000
                                                                                                          • Caribbean Immigrants
                                                                                                            • Top five countries of origin
                                                                                                              • Geographic location
                                                                                                                • Neighborhood characteristics
                                                                                                                • Black Psychographics

                                                                                                                    • Black? Or African American?
                                                                                                                      • The global influence of Hip-Hop culture
                                                                                                                        • African Americans still believe in the American Dream
                                                                                                                          • The historic importance of the Black church
                                                                                                                            • The Black church today
                                                                                                                                • Figure 17: Attitudes towards religion, by race/Hispanic origin, APRIL 2007-JUNE 2008
                                                                                                                              • No dirty laundry
                                                                                                                                • Family values
                                                                                                                                  • Figure 18: Grandparents living with grandchildren, 2003
                                                                                                                                • It takes a village
                                                                                                                                  • Food and Black consumers
                                                                                                                                    • The role of food
                                                                                                                                      • African Americans and organic foods
                                                                                                                                        • Figure 19: Attitudes towards organic foods, by race/Hispanic origin, 2006
                                                                                                                                        • Figure 20: Shoppers who purchase at least half of their food as organic, by race/Hispanic origin, 2006
                                                                                                                                        • Figure 21: Where consumers buy organic food products, by race/Hispanic origin, 2006
                                                                                                                                      • The empowerment of education
                                                                                                                                          • Figure 22: Most popular bachelor's degrees among Black and White college students, 2006
                                                                                                                                        • Black business owners and education
                                                                                                                                          • The positive impact of higher education on Black America
                                                                                                                                            • Attitudes towards shopping
                                                                                                                                              • Wealth and the Black consumer
                                                                                                                                                • Black is the new green
                                                                                                                                                  • We’re movin’ on up!
                                                                                                                                                    • Black Affluents and the economy
                                                                                                                                                    • Portrayal of African Americans in the Media

                                                                                                                                                        • Black consumer response to advertising
                                                                                                                                                          • Figure 23: Advertising attitudes and efficacy, by Race, April 2007-June 2008
                                                                                                                                                        • Black people in advertising and the media
                                                                                                                                                          • Mindshare before market share
                                                                                                                                                            • The plump, bossy Black woman or “mammy”
                                                                                                                                                              • The Mammy and the full-figured Black woman
                                                                                                                                                                • Figure 24: The “mammy,” the Aunt Jemima character
                                                                                                                                                                • Figure 25: The Pine-Sol lady, 2003
                                                                                                                                                                • Figure 26: Universal Studios, 2006
                                                                                                                                                                • Figure 27: Maureen and Raymond—Philips Milk of Magnesia, 1992
                                                                                                                                                              • Mammy imagery and your brand
                                                                                                                                                                • Why are all the Black people dancing?
                                                                                                                                                                  • Figure 28: Zatarain’s, June 2007
                                                                                                                                                                  • Figure 29: Joe Boxer TV commercial, 2002
                                                                                                                                                                • 'Why can't they just show us normal?'
                                                                                                                                                                    • Figure 30: Rubber Band Man commercial, 2003
                                                                                                                                                                  • Missing the boat
                                                                                                                                                                    • Subservient roles
                                                                                                                                                                      • Targeting the Black consumer market
                                                                                                                                                                        • It’s all about language and culture insights
                                                                                                                                                                          • What does work?
                                                                                                                                                                              • Figure 31: Special K commercial, 2007
                                                                                                                                                                            • The good news about being Black
                                                                                                                                                                              • Figure 32: Tide father commercial, 2004
                                                                                                                                                                              • Figure 33: Buick Enclave—A New Day commercial, 2007
                                                                                                                                                                              • Figure 34: Cover Girl—Queen collection commercial, 2007
                                                                                                                                                                          • Online Black Consumers

                                                                                                                                                                            • Black Americans have embraced the internet
                                                                                                                                                                              • The ‘digital divide’ is history
                                                                                                                                                                                • Who’s online?
                                                                                                                                                                                    • Figure 35: Black internet access by age and frequency, December 2008
                                                                                                                                                                                  • What are Black consumers doing online?
                                                                                                                                                                                    • Figure 36: Black internet usage by age and type of activity, December 2008
                                                                                                                                                                                    • Figure 37: Consumer attitudes towards the internet, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                    • Figure 38: Black consumer attitudes about the internet, by Age, April 2007-June 2008
                                                                                                                                                                                    • Figure 39: Black consumer attitudes towards the internet, by gender, April 2007-June 2008
                                                                                                                                                                                  • New media outlets to target Black consumers
                                                                                                                                                                                  • Media and Media Consumption

                                                                                                                                                                                    • Black media
                                                                                                                                                                                      • History
                                                                                                                                                                                        • Black media today
                                                                                                                                                                                          • The importance of the Black press in history
                                                                                                                                                                                            • The importance of Black ownership
                                                                                                                                                                                              • Media consumption habits
                                                                                                                                                                                                • Television
                                                                                                                                                                                                  • Consumer attitude by race/ethnicity
                                                                                                                                                                                                    • Figure 40: Viewers' attitudes towards television, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                  • Black consumer attitudes towards television
                                                                                                                                                                                                    • Figure 41: Black viewers' attitudes towards television, by age, April 2007-June 2008
                                                                                                                                                                                                    • Figure 42: Black viewers’ attitudes towards television, by gender, April 2007-June 2008
                                                                                                                                                                                                  • Radio
                                                                                                                                                                                                    • Radio listeners by race/Hispanic origin
                                                                                                                                                                                                      • Figure 43: Listeners’ attitudes towards radio, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                    • Black radio listeners
                                                                                                                                                                                                      • Figure 44: Black listeners’ attitudes towards radio, by age, April 2007-June 2008
                                                                                                                                                                                                      • Figure 45: Black listeners' attitudes towards radio, by gender, April 2007-June 2008
                                                                                                                                                                                                    • Newspapers
                                                                                                                                                                                                      • Newspaper readership by race/Hispanic origin
                                                                                                                                                                                                        • Figure 46: Readers’ attitudes towards newspapers, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                      • Black newspaper readers
                                                                                                                                                                                                        • Figure 47: Black attitudes towards newspapers, by age, April 2007-June 2008
                                                                                                                                                                                                      • Magazines
                                                                                                                                                                                                        • Magazine readership by race/Hispanic origin
                                                                                                                                                                                                          • Figure 48: Attitudes towards magazines, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                        • Black magazine readers
                                                                                                                                                                                                          • Figure 49: Black attitudes towards magazines, by age, April 2007-June 2008
                                                                                                                                                                                                          • Figure 50: Black attitudes towards magazines, by gender, April 2007-June 2008
                                                                                                                                                                                                        • Examples of Black media
                                                                                                                                                                                                          • Websites
                                                                                                                                                                                                            • Magazines
                                                                                                                                                                                                              • Television
                                                                                                                                                                                                                • Newspaper
                                                                                                                                                                                                                  • Radio
                                                                                                                                                                                                                  • Black Cultural Pride

                                                                                                                                                                                                                    • The Obama factor
                                                                                                                                                                                                                      • The state of Black America
                                                                                                                                                                                                                        • Figure 51: Feelings towards self and America, December 2008
                                                                                                                                                                                                                      • Young Hip-Hoppers
                                                                                                                                                                                                                        • Older Hip-Hoppers
                                                                                                                                                                                                                          • The media and race
                                                                                                                                                                                                                            • Figure 52: Feelings towards self and America, by age, December 2008
                                                                                                                                                                                                                            • Figure 53: Feelings towards self and America, by household income, December 2008
                                                                                                                                                                                                                          • Consumers’ attitudes towards self/Blacks attitudes towards self
                                                                                                                                                                                                                            • Figure 54: Attitudes towards life, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                                            • Figure 55: Attitudes towards life, by gender, April 2007-June 2008
                                                                                                                                                                                                                            • Figure 56: Attitudes towards life, by household income, April 2007-June 2008
                                                                                                                                                                                                                          • Inclusion into the mainstream
                                                                                                                                                                                                                            • The Black family
                                                                                                                                                                                                                              • Figure 57: Traditional attitudes, by gender, April 2007-June 2008
                                                                                                                                                                                                                            • Attitudes towards family
                                                                                                                                                                                                                              • Figure 58: Attitudes towards family, by race/Hispanic origin, April 2007-June 2008
                                                                                                                                                                                                                              • Figure 59: Attitudes towards family, by gender, April 2007-June 2008
                                                                                                                                                                                                                          • Cluster Analysis

                                                                                                                                                                                                                              • Doubters
                                                                                                                                                                                                                                • Who they are
                                                                                                                                                                                                                                  • Opportunity
                                                                                                                                                                                                                                    • Pragmatists
                                                                                                                                                                                                                                      • Who they are
                                                                                                                                                                                                                                        • Opportunity
                                                                                                                                                                                                                                          • Connectors
                                                                                                                                                                                                                                            • Who they are
                                                                                                                                                                                                                                              • Opportunity
                                                                                                                                                                                                                                                • Cluster characteristics
                                                                                                                                                                                                                                                  • Figure 60: Black American clusters, December 2008
                                                                                                                                                                                                                                                  • Figure 61: Feelings towards self and America, by Black American clusters, December 2008
                                                                                                                                                                                                                                                  • Figure 62: Radio listening, by Black American clusters, December 2008
                                                                                                                                                                                                                                                  • Figure 63: Websites visited, by Black American clusters, December 2008
                                                                                                                                                                                                                                                  • Figure 64: Electronic products purchased, by Black American clusters, December 2008
                                                                                                                                                                                                                                                  • Figure 65: Electronic products that may be purchased, by Black American clusters, December 2008
                                                                                                                                                                                                                                                • Cluster demographics
                                                                                                                                                                                                                                                  • Figure 66: Black American clusters, by gender, December 2008
                                                                                                                                                                                                                                                  • Figure 67: Black American clusters, by age, December 2008
                                                                                                                                                                                                                                                  • Figure 68: Black American clusters, by household income, December 2008
                                                                                                                                                                                                                                                • Cluster methodology
                                                                                                                                                                                                                                                • Appendix: Other Useful Consumer Tables

                                                                                                                                                                                                                                                    • Figure 69: Marital status of Blacks, by age, 2006
                                                                                                                                                                                                                                                    • Figure 70: Household size, by race of householder, 2006
                                                                                                                                                                                                                                                    • Figure 71: Black households with children, by age of householder, 2007
                                                                                                                                                                                                                                                    • Figure 72: Households with children, by race and Hispanic origin of householder, 2007
                                                                                                                                                                                                                                                    • Figure 73: Median household income, by race/Hispanic origin of householder, 1996-2006
                                                                                                                                                                                                                                                    • Figure 74: Household income distribution for all households and Black households, 2007
                                                                                                                                                                                                                                                    • Figure 75: Household income distribution, by race and Hispanic origin of householder, 2006
                                                                                                                                                                                                                                                    • Figure 76: Homeowners, by race and Hispanic origin, 1995-2005

                                                                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                                                                • ABC, Inc.
                                                                                                                                                                                                                                                • AMR Corporation (American Airlines)
                                                                                                                                                                                                                                                • AOL
                                                                                                                                                                                                                                                • Association of National Advertisers (ANA)
                                                                                                                                                                                                                                                • Bank of America Corporation
                                                                                                                                                                                                                                                • Bentley (USA)
                                                                                                                                                                                                                                                • Burrell Communications Group, LLC
                                                                                                                                                                                                                                                • CBS Corporation
                                                                                                                                                                                                                                                • Comcast Corporation
                                                                                                                                                                                                                                                • DDB Worldwide Communications Group Inc.
                                                                                                                                                                                                                                                • Facebook, Inc.
                                                                                                                                                                                                                                                • Fashion Fair Cosmetics
                                                                                                                                                                                                                                                • Ford Motor Company (USA)
                                                                                                                                                                                                                                                • FOX Broadcasting Company
                                                                                                                                                                                                                                                • General Motors Corporation
                                                                                                                                                                                                                                                • Google, Inc.
                                                                                                                                                                                                                                                • Intel Corporation
                                                                                                                                                                                                                                                • Johnson Publishing Company, Inc
                                                                                                                                                                                                                                                • Kmart Corporation
                                                                                                                                                                                                                                                • Leo Burnett Worldwide, Inc.
                                                                                                                                                                                                                                                • LinkedIn
                                                                                                                                                                                                                                                • Mercedes-Benz USA
                                                                                                                                                                                                                                                • MySpace.com
                                                                                                                                                                                                                                                • National Association for Stock Car Auto Racing (NASCAR)
                                                                                                                                                                                                                                                • National Broadcasting Company, Inc. (NBC)
                                                                                                                                                                                                                                                • National Medical Association
                                                                                                                                                                                                                                                • Pizza Hut Inc
                                                                                                                                                                                                                                                • Procter & Gamble USA
                                                                                                                                                                                                                                                • Public Broadcasting Service
                                                                                                                                                                                                                                                • Quaker
                                                                                                                                                                                                                                                • Research In Motion Limited
                                                                                                                                                                                                                                                • Time Inc.
                                                                                                                                                                                                                                                • Time Warner Inc.
                                                                                                                                                                                                                                                • TiVo Inc
                                                                                                                                                                                                                                                • U.S. Bureau of the Census
                                                                                                                                                                                                                                                • U.S. Department of Homeland Security
                                                                                                                                                                                                                                                • Universal Studios Inc.
                                                                                                                                                                                                                                                • XM Satellite Radio Holdings Inc.
                                                                                                                                                                                                                                                • YouTube, Inc.

                                                                                                                                                                                                                                                Revival of the Black American Marketplace - US - January 2009

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