Description

“Multicultural young adults are avid consumers of media who believe that ads matter – even though they rarely see themselves or their communities accurately depicted in them. This dichotomy creates a real opportunity for marketers to invest in truly understanding this audience in all its racial, cultural and economic diversity and create campaigns that are both realistic and compelling. While navigating the complexities of different cultures won’t be easy, it will be worth the effort; particularly for Black consumers, who are very likely to vote with their wallets and support brands that support them as well as punish those that don’t.”
– Fiona O’Donnell, Senior Director

This Report looks at the following areas

  • The demographics of multicultural young adults; differences across and within groups that should be considered by marketers.
  • The impact of COVID-19 and societal trends such as BLM on multicultural young adults’ perceptions and behavior regarding advertising.
  • How different categories and brands are advertising to this group as well as their recall of advertising campaigns by category.
  • Advertising themes and messages that are most likely to resonate with multicultural young adults.

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • Multicultural young adults account for one in 10 US consumers
      • Figure 1: US population age distribution, by race/Hispanic origin, 2021
    • Impact of COVID-19 on advertising and multicultural young adults
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on multicultural young adults and advertising, 2021
    • Immediate impact
    • Short term
    • Recovery
    • Opportunities and challenges
    • Multicultural young adults want to be seen
      • Figure 3: Attitudes toward multicultural advertising – Adults 18-34, by race/Hispanic origin, 2021
    • Real opportunity to capture more buying power from Black young adults
      • Figure 4: Attitudes toward purchasing due to brand representation – Adults 18-34, by race/Hispanic origin, 2021
    • Asian young adults most likely to feel unseen
      • Figure 5: Reflection of Asians in advertising and attitudes toward advertising – Asian adults 18-34, 2021
    • More than the sum of their segments
  3. The Market and Target Audience – Key Takeaways

    • Advertising revenue on pace to surpass 2019
    • A diverse and important group
    • Significant differences by racial group
    • COVID-19 impacts multicultural young adults
    • Conflicts and chaos drive activism
    • Heavy media use provides ample opportunity for ad exposure
    • Mixed views on representation in advertising
  4. The Market – Advertising Revenue

    • Ad revenue in 2021 to surpass 2019; digital accounts for more than half
      • Figure 6: US advertising revenue, by select media, 2019-21
    • Digital advertising grows despite COVID-19
      • Figure 7: US internet advertising revenue, 2019-21
  5. Multicultural Young Adults by the Numbers

    • A significant share of the population
      • Figure 8: US population age distribution, by race/Hispanic origin, 2021
    • Notable differences in family composition
      • Figure 9: US family composition among adults aged 18-34, by race/Hispanic origin, 2018
    • Asian young adults the most educated
      • Figure 10: Educational attainment – Adults 18-34, by race/Hispanic origin, 2019
    • Income gaps for Black, Hispanic young adults
      • Figure 11: Household income distribution among adults aged 18-34, by race/Hispanic origin, 2018
    • Multicultural population less likely to live rurally
      • Figure 12: US population distribution, by race/Hispanic origin, 2021; Rural/urban distribution indices, 2018
  6. Market Factors

    • Multicultural young adults embrace digital, especially video
      • Figure 13: Media viewed in average week – Adults 18-34, by race/Hispanic origin, 2021
    • Impact of COVID-19 on multicultural young adults
    • In summary: immediate, short- and long-term impacts
    • COVID-19 concerns resurface for young adults
      • Figure 14: COVID-19 cases and deaths, share by age, through August 210, 2021
    • Lower vaccination rates could extend COVID-19 pain
      • Figure 15: COVID-19 vaccinations rates, by age, through August 14, 2021
    • COVID-19 escalates unemployment for the young
      • Figure 16: Unemployment rate, by age, March 2020-July 2021
    • A tumultuous year drives change
      • Figure 17: Activist identity – Adults 18-34, by race/Hispanic origin, 2021
  7. Attitudes toward Advertising in Their Own Words

    • Mixed interest in watching ads
    • A tricky balance for representation in ads
  8. Companies and Brands – Key Takeaways

    • Multicultural young adults want to be seen
    • Authenticity key for avoiding pitfalls
    • Show true diversity
    • Appropriation is always inappropriate
    • It’s not just the message – It’s also the media
  9. Competitive Strategies

    • Representation can be a strategic advantage
      • Figure 18: Attitudes toward showing a greater variety of races – Adults 18-34, by race/Hispanic origin, 2021
    • Real authenticity can’t be faked
      • Figure 19: Video advertisement – Sprite – “Dreams,” 2021
    • Young Black adults both boycott and buycott
      • Figure 20: Attitudes toward purchasing due to brand representation – Adults 18-34, by race/Hispanic origin, 2021
    • True inclusion goes beyond advertising, extends to partnerships
    • Exercise caution with language for Hispanic consumers
      • Figure 21: Video advertisement – McDonald’s – “Tio Roberto,” 2018
    • Opportunity in the rise in Asian cultural influence
      • Figure 22: Video advertisement – McDonald’s – “The BTS Meal,” 2021
  10. Market Opportunities

    • Color outside the lines
      • Figure 23: Attitudes toward multicultural advertising depictions – Adults 18-34, by race/Hispanic origin, 2021
      • Figure 24: Video advertisement – Hyundai Santa Fe “Beef Jerky,” 2021
    • Avoid whitewashing
    • Where ads run can matter as much as what ads run
  11. The Consumer – Key Takeaways

    • Strong recall for social, apparel, food ads
    • Black young adults more selective and more responsive
    • Asian young adults least likely to see themselves represented
  12. Advertising Recall

    • Social media ads the most memorable
      • Figure 25: Advertising recall by ad type – Adults 18-34, by race/Hispanic origin, 2021
    • Food, apparel advertising elicits strongest recall
      • Figure 26: Advertising recall in the past seven days by industry – Adults 18-34, by race/Hispanic origin, 2021
    • Recall across multiple industries is high
      • Figure 27: Advertising industry count recall in the past seven days – Adults 18-34, by race/Hispanic origin, 2021
  13. Online Advertising Resonance

    • Ad exposure drives purchase interest for some
      • Figure 28: Responses toward online ads viewed in the last seven days – Adults 18-34, by race/Hispanic origin, 2021
    • Do what you say, and say what you do
      • Figure 29: Attitudes toward multicultural advertising – Support and purchase – Adults 18-34, by race/Hispanic origin, 2021
    • More work to be done to achieve relevance
      • Figure 30: Attitudes toward multicultural advertising – Relevance – Adults 18-34, by race/Hispanic origin, 2021
  14. Advertising Representation

    • Apparel, beauty resonate with Black young adults
      • Figure 31: Recall of different races in advertising, by industry – Adults 18-34, by race/Hispanic origin, 2021
    • Advertisers are mostly meeting the needs of young, White adults
      • Figure 32: Reflection of multicultural young adults in advertising – Adults 18-34, by race/Hispanic origin, 2021
    • Opportunity to show Black families at home
      • Figure 33: Reflection of multicultural young adults in advertising – Black adults 18-34, 2021
    • Hispanic young adults see less representation than Black young adults
      • Figure 34: Reflection of multicultural young adults in advertising – Hispanic adults 18-34, 2021
    • Improving visibility is key for young Asian audiences
      • Figure 35: Reflection of multicultural young adults in advertising – Asian adults 18-34, 2021
  15. Appendix – Data Sources and Abbreviations

    • Data sources
    • Advertising revenue
    • Consumer survey data
    • Consumer qualitative research
    • Abbreviations and terms
    • Abbreviations

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