Market Summary - Ethnic Marketing & Diversity Marketing
Audience Update:
Ethnic Marketing & Diversity Marketing Insight
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Date:
Q 1 2012
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Sponsor:
UM London
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Hot Topics
Some potential growth areas for ethnic advertising:
 Beauty & Cosmetics:
Ethnic beauty & cosmetic industry.
£65m market in 2007 (<2% of £3.7bn UK beauty market) and expected to grow 35% by 2012.
 Food:
Ethnic food sales rising 14% pa in Europe.
UK consumers spent £1.32bn on foreign cooking in 2008.
 Small Business:
There are circa 275,000 black and minority ethnic SMEs (6% of total) contributing around £20bn to UK economy pa.
 Health & Charity:
Diabetes within UK ethnic minority communities is 4-6 times higher than in white communities. Death rates from coronary heart disease for 1st generation South Asian adults are circa 50% higher than the English/Welsh average.
 Leisure & Travel:
Only 1% of visitors to UK National Parks are from ethnic minorities.
 Money Transfer:
UK migrant workers send home £4bn pa; with the UK Polish community sending home £1bn.
 Media:
Ethnic minority groups are more likely to use other media (e.g. mobile, internet, radio, computer games, game consoles) while watching TV (87% vs. 69%).
Technology:
Black and minority ethnic groups have higher internet access rates (61%) compared to the general population (51%).
Sources: Mintel, 2007/2009; Ofcom, 2008, Black and Ethnic Minority Diabetes Association, Committee of Public Accounts (PAC) 2008,
Campaign for National Parks, UK Dept for Business, Innovation, and Skills; Race for Health, LDA 2005
Some ethnic population predictions:
- We're expecting "significant" growth in the UK ethnic minority population
- Ethnic Minority Group (EMG) population likely to be closer to 15% of UK total by March 2011 (up 8%)
- Rehearsals with 135,000 households ran in Lancaster, London Newham, Anglesey & Birmingham in October 2009.
- The expected rise reinforces the business and marketing potential for targeting EMGs that is largely being ignored.
- There will be 18 ethnic categories listed in the 2011 census.
The IPA has published 'The marketing opportunities for advertisers and agencies in multi-cultural Britain'; a report designed to provide the advertising industry with an update on the rapidly expanding multi-cultural landscape of the UK; both as a potential employer and a market place.
Download the Multicultural Britain Report by the IPA below for more information.
Download Associated Attachment
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The UK Chinese Community
New Chinese Middle Class Brings £Millions to the UK Economy
An emerging middle class in China has increased the number of Chinese visitors to Britain by around a million over the last year – and it’s a group that certainly isn’t shy of spending a pound or two, especially when it comes to shopping for luxury British brands.
Research from tourism organisation Visit Britain suggests that the number of Chinese visitors to the UK has actually increased by 50% in the last year – with London, Cambridge & Manchester being amongst their destinations of choice. This group is in addition to the growing number of students and ex-pats choosing to settle in the UK in the longer term.
A huge attraction for the Chinese middle class, whose own buoyant economy means their personal spending power is rapidly climbing, is the UK’s impressive selection of designer shops and boutiques. Luxury fashion items are about 30% cheaper here than they are in China, and the fact that they’re the genuine article brings with it a great deal of kudos. The Chinese also love the idea of England’s heritage, and come to experience the country’s compelling historical environment first hand.
What’s certain is that British retailers are reaping the benefits, despite the fact that we are in the midst of the worst global recession in decades. Last year alone Chinese visitors boosted the UK economy by £350m through retail spending – accounting for 14% of the £1bn that rang through Harrods’ tills. Quintessentially British brands, such as Burberry and Mulberry, are particularly attractive – and have indeed seen share prices soar since opening Asian stores.
Eve Samuel-Camps, Head of Press at UM London, said:
“Luxury brands such as Burberry and Tiffany hold massive appeal for Chinese visitors. Many will come to the UK with a pre-planned shopping list of luxury items, and brands need to do everything they can to get on it.”
Glen Yearwood, Managing Director for UM London’s Diversity Unit, said:
“Any brand in the luxury goods sector – across the fashion, cars, food & drink industries amongst others – needs to seriously think about whether they are using enough channels to reach out to the Chinese market in the UK. The 2011 Census is likely to indicate that this is an increasingly prominent community in the UK, and we know there is a range of effective media channels out there to target them.”
Click here to read UM London’s full analysis of the UK Chinese population (or download PDF below), and the various media channels available for targeting this increasingly significant group.
Download: UM Report The Chinese Community in the UK
Download Associated Attachment
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Ethnic Marketing & Diversity Marketing - Measuring Ethnic Media
Surprisingly...
- Over 50 ethnic TV stations are not covered by BARB
- Over 65 ethnic radio stations are not covered by RAJAR
- Over 80 magazines and newspapers are not covered by ABC
- Thousands of ethnic websites are not even measured
Glen Yearwood, Managing Director of UM Diversity Unit gives the low-down on reaching ethnic markets...
Many ethnic media owners are not yet covered by standard industry research (such as BARB, RAJAR, ABC). How, therefore should a client approach advertising to the ethnic market to ensure it works and they get what they pay for?
A bespoke or unmeasured target really requires a tailored approach, with agreed up-front metrics. In many cases this involves working with relevant media owners and also conducting or commissioning bespoke research to measure and better understand the target audience and gauge the impact and success of such bespoke campaigns.
Just because it’s not measured by standard industry research doesn’t mean it isn’t measureable – it just means it requires more preparation and thinking upfront by all parties involved! It can often deliver inspiring and surprising results.
Every brief needs to be supported by agency and client commitment to better understand the consumer target, and better understand their unique media channels. We often conduct ‘reach’ research into ‘new consumers’ exploring alternate media platforms such as faith media, street marketing and online. An example of this can be seen with a recent NHS campaign which targeted ethnic minority groups who over or under indexed in organ donors and diabetes.
Are media owners investing in measurement e.g: BARB data etc? How quickly will this happen?
Media measurement is a complex undertaking and it is still clearly nowhere near common practice among ethnic media, especially given the diverse ethnic breakdown and fabric of the UK. Improvements are slowly being made. A new BARB panel in January 2009 had increased representation of minority ethnic households in its sample pool, which is a significant step in the right direction in the TV market.
Zierler Media do a great job with their IPA-approved UK Asian 2009 TV Survey run through Continental Research and certain ethnic radio stations are already being measured by RAJAR.
Taken from the media owner's point of view, they will need to be convinced that investment in a third party audit will result in an uplift in mainstream advertising revenue. From the advertiser's perspective they will need media accountability and the ability to select new ethnic media on an informed basis. UM London believe that there is a new third way territory to be explored by both parties, where advertisers and media owners can agree a mezzanine level of measurement to facilitate confidence and future investment in the selection of niche media on mainstream campaigns.
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Finding Out More about Ethnic Marketing & Diversity Marketing
Having a great understanding of your audience has always been key when effectively targeting your selected market and as the population becomes ever more diversified in terms of ethnic background the job of the marketer becomes increasingly difficult. Consumers are increasingly pushing the boundaries of the standard demographic breakdowns, making it more difficult for marketers to figure out how their message should be presented.
In order to assist advertisers targeting ethnic audiences, UM set up their Diversity Unit through a joint venture with Glen Yearwood. They became the second top-10 media agency in the UK to create a specialist division for cultural diversity.
The diversity team will focus on traditional and non-traditional channels for new and existing clients, with direct input from all areas of UM's brand teams.
Mark Middlemas, Managing Partner for Business Development at UM London, called it "a critically important area of communications" where current media measurement tools and research are "often not enough".
Working with top organisations...
...to grasp a better understanding of the audiences.
UMDU has extensive experience and an expert understanding of the ethnic minority groups (EMG’s) in the UK:
This includes: South & East Asian, Afro-Caribbean & Black African, Chinese, Polish / eastern European, Turkish & Middle Eastern, More recent migrants and Gypsies & travellers
A particular area of focus is on the UK’s Muslim community which currently numbers over 2m and involves a wide array of countries from the above groups.
How the UM Diversity Unit can help:
UMDU offers a wide range of marketing services to help clients unlock the growth potential of EMG’s in the UK.
They include:
- Strategic consultancy (what is the business opportunity for EMG’s with your brand and how can it work through to marketing?)
- Communications planning (what are the best channels for reaching a particular or multitude of EMG’s?)
- Research & Insight (how do I really understand the EMG consumer? what motivates them? why do they buy what they buy when? what media do they consume different to the mainstream?)
- Ideation (creating unique ideas that disrupt, shake-up, change EMG-category norms)
- Media investment (what are the most efficient media brands for the investment? what is the best buying strategy against a particular media or idea? what is the best price for the campaign / idea?)
- Digital (what is the most appropriate digital solution? what digital services are needed to answer the brief?
- Events / street marketing & retail (unique marketing solutions to reach EMG’s at street / high street level)
- Music & entertainment solutions (creating highly effective solutions using this lifestyle genre to better target EMG’s)
- Geo-mapping services (UMDU’s access to highly sophisticated GIS technology to ID effective EMG targeting solutions)
- Measurement (what really worked to make your campaign effective? A range of tools including Analytics to best understand the widest possible measurement metrics for campaigns / ideas – from media, marketing & business metrics and the relationship between all three)
Note: UM’s Diversity Unit is fully supported by our wider full service media agency structure.
Diversity Planning does require a different approach for brands. We have outlined an approach that can start to help you understand how to reach this potentially lucrative audience.
Take a look at some of the Case Studies by UM Diversity Unit:
For more information, contact Mark Middlemas, Managing Partner of Business Development at UM London: Mark.Middlemas@umww.com
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