23-05-2025
Why CMOs Can't Afford To Ignore Hispanic Marketing Now
The signs of an economic recession are becoming increasingly difficult to ignore: declining consumer confidence, a cooling housing market, and persistent market volatility. As Chief Marketing Officers (CMOs) face mounting pressure to trim budgets and optimize marketing investments, critical decisions must be made about where to allocate resources—and where to cut back.
Over the past few weeks, as companies have started reporting weaker sales during Q1, several mentioned the Hispanic consumer as a soft driver of these results, and some recognized the need for additional focus and investment in this segment to reverse their performance.
Historically, one of the first areas to see reductions during economic downturns has been multicultural marketing. Often deemed "incremental" or "nice to have," these investments have been deprioritized in favor of what is perceived as core marketing strategies. However, in 2025, taking this same approach could prove to be a costly mistake—particularly when it comes to the Hispanic consumer segment.
Hispanics are the largest and fastest-growing ethnic minority group in the United States, accounting for nearly 20% of the U.S. population, and 51% of the population growth when compared to the previous census, according to the U.S. Census Bureau. This figure is projected to rise to 28% by 2060. Not only is this demographic growing rapidly, but it also wields significant economic clout. In 2022, the total buying power of U.S. Hispanics reached an estimated $2.8 trillion, making it equivalent to the world's fifth-largest GDP if it were a standalone economy.
Moreover, Hispanic consumers are disproportionately younger than the general population, with a median age of 30 compared to 38 for the overall U.S. population. This represents a critical opportunity for brands targeting Millennials, Gen Z, and emerging Gen Alpha consumers. The Hispanic segment is not just a growing market—it's where the future of consumer spending lies.
In times of economic uncertainty, it might seem logical to focus solely on "safe bets," but brands that overlook the Hispanic segment risk alienating a critical audience that can drive growth even during a downturn.
Moreover, research has helped marketers understand that investment in Hispanic creative can yield a higher ROI than investment in non-Hispanic creative, so the concept of 'safe bets' also needs to be revisited.
Here are six key actions CMOs should consider when it comes to Hispanic marketing investments in 2025:
1. Invest Where the Growth Is
The Hispanic consumer segment has been a consistent driver of the U.S. population and economic growth. CMOs should allocate at least 10% of their marketing budget to Hispanic-specific programs that leverage culturally relevant channels and messaging. Platforms like Univision, Telemundo, and digital-first spaces such as TikTok, Instagram, and YouTube are particularly effective for engaging this demographic.
2. Craft Messaging That Resonates
During a recession, consumers are more drawn to messages that highlight comfort, stability, and family. These themes align closely with core Hispanic cultural values, making it essential for brands to craft campaigns that feel authentic and relatable. Highlighting the importance of home, family, and resilience can create emotional connections that translate into long-term brand loyalty.
3. Prioritize Storytelling That Feels Familiar
Hispanic consumers respond well to storytelling that is contextual, entertaining, and infused with humor. Ads that incorporate language, humor, cultural traditions, and everyday scenarios can create a sense of familiarity and trust.
4. Double Down on Loyalty Strategies
Hispanic consumers are highly brand-loyal, especially when brands make an effort to acknowledge and celebrate their cultural identity. Loyalty programs that offer personalized rewards, community engagement, or exclusive experiences can deepen the connection with this audience. Importantly, brands should ensure that loyalty strategies are inclusive and consider specific cultural nuances.
5. Emphasize Value without Sacrificing Quality
In a recession, value-driven messaging is key, but it shouldn't compromise quality. Hispanic consumers are discerning shoppers who appreciate brands that offer value alongside premium experiences. By emphasizing affordability, durability, and utility—along with culturally relevant branding—companies can remain relevant even in challenging times.
6. Consider Hispanic Consumers as Trendsetters
We've all heard that 'necessity is the mother of all invention,' and periods of economic uncertainty when consumers feel pressured, can unlock new consumption behaviors, innovative uses of products and services, and unique combinations that haven't been seen before. Think, for example, about the launch of Airbnb in 2008 during the recession or the launch of Old Navy in the early 90s, which focused on cost-conscious families.
Investing in consumer research, ethnographic studies, and in-depth consumer connections will unlock new insights that can benefit businesses both short and long term.
If your target audience includes any of the following, a multicultural marketing strategy is no longer optional—it's essential:
• 18-35-year-olds - Millennials and Gen Zers are among the most diverse generations in U.S. history, with Hispanics making up a significant portion.
• Tweens and teens - Nearly 25% of U.S. children under 18 are Hispanic, making this demographic critical for brands with long-term ambitions.
• Small-business owners - According to the Stanford Latino Entrepreneurship Initiative, Hispanic entrepreneurs are starting businesses at a rate three times higher than that of the general population.
• Geographically concentrated markets - States like Texas, Florida, New York, and California are home to more than half of the U.S. Hispanic population.
• Families - Hispanic households are more likely to include children and extended family members, making family-centric marketing strategies particularly effective.
In previous recessions, brands that maintained—or even increased—their marketing investments emerged stronger and more competitive when the economy rebounded. Today, the Hispanic consumer segment represents a unique opportunity to future-proof your brand and drive meaningful growth, even in the face of economic uncertainty.
For CMOs, the question isn't whether to invest in Hispanic marketing—it's whether you can afford not to.
