It’s All in the Mix: How to Maximize Marketing Efforts for Hispanic Customers
Tailoring a marketing campaign to a specific demographic is a great way to maximize impact, but it may not always be economically feasible. And that’s what Time Warner Cable wanted to find out when it analyzed subscriber data using Nielsen’s Marketing Mix Modeling system.
Would it make economic sense to tailor its message to Hispanics? And if it did, would the company reach all of the acculturation levels inherent in its diverse Hispanic customer base? Time Warner Cable found that Hispanics were 36 percent more responsive to marketing than non-Hispanics; although it found that effectiveness depends largely on the acculturation rate of the home.
For customer acquisition campaigns, 33 percent of all incremental Hispanic customers were driven by general market television and digital advertising. The acculturation of the home, however, is a significant factor when considering the type of marketing. Marketing mix modeling showed that general market TV was 58 percent more effective on English-dominant homes than Spanish-dominant ones. But, Hispanic-themed TV was 24 percent less effective on English-dominant homes than Spanish-dominant ones.
“Spanish language is becoming more and more the choice of consumption. And Spanish language is going to be driving both unacculturated and acculturated groups,” said Eugenia Zeibig, director, marketing effectiveness, Time Warner Cable.
These Nielsen Marketing Mix Modeling insights helped Time Warner Cable rethink the way it markets to its customer base. With a clear understanding of the tactics and messaging needed for each environment and audience, Time Warner Cable has expanded its Hispanic marketing efforts and moved from modeling five markets to 25.