A new report by Nielsen and NNPA reflects the enormous and growing buying power of African Americans. The report says African American buying power continues to increase and is expected to rise from its current $1 trillion level to $1.3 trillion by 2017, according to Resilient, Receptive and Relevant:
The African-American Consumer 2013 Report. The report was released last week by Nielsen, a leading global provider of information and insights into what consumers watch and buy, in collaboration with the NNPA during the Congressional Black Caucus Foundation’s 43rd Annual Legislative Conference.
Highlights from the report include:
- Fifty-three percent of the 43 million Blacks in the U.S. are under the age of 35, and the Black population has grown 63 percent faster than the general market population
- Blacks watch more television (37 percent); make more shopping trips (eight), purchase more ethnic beauty and grooming products (nine times more), read more financial magazines (28 percent) and spend more than twice the time on personal hosted websites than any other group.
- Although 81 percent of Blacks said they believed that products advertised using Black media are more relevant to them, only 3 percent or $2.24 billion of the $75 billion spent on television, magazine, Internet and radio advertising was with media focused specifically on Black audiences.
- How companies can avoid a “one-size-fits-all” approach to better connect with Black consumers
The findings were announced by Cheryl Pearson-McNeil, senior vice-president, public affairs and government relations for Nielsen, Cloves Campbell, chairman of the NNPA, a 73-year-old federation of 200 Black community newspapers; and A. Shuanise Washington, president and chief executive officer of the Congressional Black Caucus Foundation.
“The consumer insights this year are some of the most varied yet,” said Pearson-McNeil. “From store brand loyalty, to top watched television networks, which mobile apps are most popular, a deep dive into how Blacks spend their digital time and how companies can reach 10 million Black consumers by developing a southern regional strategy – this year’s report is really a compelling read for both advertisers and marketers.”
“This year, the report goes a step further and lists the premier 50 companies, in the top five categories committed to the Black community economically,” said Campbell. “This type of information helps the NNPA continue our efforts to create conscious consumers who better understand how their economic power has a direct impact on the marketplace overall and that kind of information is invaluable.”
Beyond the business impact Blacks have on the economy, the report also provides more granular insights into its population growth, and demographic uniqueness, which was of particular interest to Washington. “The CBCFs mission is to advance the global Black community by developing leaders, informing policy and educating the public,” said Washington. “Nielsen’s report will prove helpful as we continue our efforts to improve the socioeconomic circumstances of African Americans and other underserved communities.”
As thoughtful and intelligent people isn’t it time that we harness this buying power and make the one percent and the American business community respect us. Further, wouldn’t it be wonderful if we channeled this money into black businesses and the African American community to create a lasting legacy based upon a eternal economic foundation. And that’s my thought provoking perspective…