Wealth Share of Hispanic Population May Triple by 2025
The wealth of Hispanic families would triple in inflation-adjusted terms by 2025 if wealth-building trends observed during the past two decades resume, according to new research from the Federal Reserve Bank of St. Louis’ Center for Household Financial Stability.
Hispanic families accounted for only 2.2 percent ($1.4 trillion) of the U.S.’s total net worth in 2010, despite representing 16.3 percent of the population. This is due to average wealth per household being only $108,871 for Hispanic families, compared to $543,702 for non-Hispanic families.
Their share of wealth, however, could be on the rise. In the latest issue of In the Balance, Senior Economic Adviser William Emmons and Policy Analyst Bryan Noeth, both with the St. Louis Fed, estimate that Hispanic families will own between 2.6 percent ($2.5 trillion) and 3.2 percent ($4.4 trillion) of U.S. wealth by 2025. Two main factors are at play for this growth:
- Faster population growth
- Faster growth of average household wealth
Regarding growth of average household wealth, Emmons and Noeth gave two potential scenarios for how rapid this growth will be:
- Assumption 1: Average wealth levels of Hispanic families (and of families overall) will revert to following their trend line for the period 1989-2010.
- Assumption 2: Average wealth levels will grow according to the average rate observed over the period 1989-2010, meaning wealth losses leading up to 2010 would be permanent in the sense that no “catch-up” period occurs.
Both assumptions would likely lead to considerably faster growth of wealth for Hispanics than for the overall population, based on census projections of population growth through 2025. Assumption 1 would lead to total wealth for the Hispanic population of $4.4 trillion in 2025, a cumulative increase of 216.6 percent from 2010 numbers. Assumption 2 would lead to total Hispanic wealth of $2.5 trillion in 2025, a cumulative increase of 79.8 percent from 2010.
However, both of these assumptions are also based on the projection that the Hispanic population would grow faster than the population at large. This faster growth is actually the bigger factor in the growth of overall total Hispanic wealth. The Hispanic population is expected to grow at an annualized rate of 2.3 percent per year through 2025, according to census data, versus a 0.4 percent annualized rate for the non-Hispanic population. If the Hispanic population grows at the same rate as everyone else, their share of U.S. wealth in 2025 would be 2.4 percent (or $3.3 trillion) under Assumption 1, but only 2 percent (or $2 trillion) under Assumption 2.
REPORT: Global Ad Spending Growth to Double This Year
Advertisers worldwide will spend $545.40 billion on paid media in 2014, according to new figures from eMarketer. Total media ad spending will increase 5.7%, eMarketer projects, more than doubling its growth rate of 2.6% from a year ago.
Several factors will drive this year’s growth in total media ad spending—not only the worldwide advertising frenzies attached to the FIFA World Cup and, to a lesser extent, the Winter Olympics, but also the steady increases in online and mobile advertising as consumers globally shift their attention to digital devices.
On a country-by-country basis, the US is by far the leader in total media ad spending. eMarketer estimates that the US will eclipse $180 billion in advertising spending this year, or nearly one-third of the worldwide total. This spending is also the highest in the world per capita; US advertisers will spend nearly $565 on paid media, on average, to reach each consumer in the country in 2014.
By comparison, advertisers in China will spend only $37.01 per person, though the country’s large population adds up to the second-biggest ad spending total in the world. Norway is the second-leading country in terms of ad spending per person, at $538.71. Australia comes next in line at around $504 per person and is the only other country where advertisers will spend more than $400 this year to reach the average consumer.
On a long-term basis, digital channels will continue to drive advertising growth across the globe. eMarketer estimates that digital ad spending will increase 16.7% this year, totaling $140.15 billion and surpassing 25% of all media ad spending for the first time.
- See more at: eMarketer
TD Bank Survey Reveals Hispanics Are Concerned with Fees, But Not with Banking When Moving
According to research released today by TD Bank, Hispanics are less concerned with setting up a new bank account (21 percent) prior to moving to a new location than the general market (30 percent). The study, an extension of the TD Bank Checking Experience Index, surveyed more than 1,100 Americans, including 150 Hispanics.
A report from the National Association of Hispanic Real Estate Professionals shows that Hispanics are the fastest growing group of first-time homebuyers. With so many Hispanics entering homeownership, it’s important they are fully prepared for the move. TD Bank’s Survey has found that Hispanics, as compared to the general market, do not factor banking into their move and could wind up paying bank fees as a result.
“The TD Bank Survey demonstrates that banking is not a priority for Hispanics when they are deciding to relocate,” explains Felipe Basulto, Retail Market Manager, TD Bank. “While over two thirds of Hispanics do not open a new account when they move, we know from our research that the best way to avoid fees – which is a priority for Latinos – is to select a bank that offers convenient and local access to store locations and ATMs.”
Other Key Facts
· The top five reasons Hispanics move to a new home include a bigger house/more space (30 percent), a different neighborhood (25 percent), being closer to family and friends (18 percent), personal employment/job (17 percent) and growing or shrinking family (13 percent).
· Of those who opened a new bank account, the majority (66 percent) of Hispanics said that they set up a new bank account one month after they moved (21 percent set up prior to moving).
· Four in ten (41%) of Hispanics have a bank within 3 miles from home followed by a quarter (25 percent) who said within 4-5 miles.
· Only 28 percent of Hispanics opened a new checking account after they moved and of those that did select a new primary bank, 47 percent did so to avoid fees and charges.
Switching to a New Bank
The survey shows that while the majority of Hispanic respondents (72 percent) did not set up a new primary account after they moved avoiding banking fees is a concern for them. Below are helpful tips for setting up a new account to help consumers avoid fees:
· Shop around for a bank that provides extended hours and online banking options that fit your lifestyle and schedule.
· Find a bank that is conveniently located near your home and/or work; and offers a large network of ATMs to allow for no cost transactions. It may make sense to look into institutions that offer checking accounts that reimburse non-bank ATM fees, such as TD Bank’s Relationship Checking account.
· To ensure a smooth transition when switching accounts, make a list of all direct deposits and automatic payments that will be transferred to your new account.
· You can set up new direct deposits by providing your new bank’s routing number and checking account number to your employer, Social Security, VA, and any other direct deposit payers, and some banks, like TD Bank, will help you with this process.
· Switch your automatic and online payments/withdrawals by contacting the payees and providing your new routing number and checking account number. This could include utility companies, credit cards, car loans, cable/satellite services, and cell phones.
Batanga Media Becomes First Hispanic Data Partner for comScore vCE
Batanga Media, a digital media and content company for the U.S. Hispanic market, Latin America, and Brazil, today announced it is providing its proprietary ethnicity data to comScore’s validated Campaign Essentials (vCE) product. Batanga Media becomes comScore’s first Hispanic content partner to provide data to the digital campaign measurement tool.
With over 14 years in the Hispanic digital space, Batanga Media’s data adds depth and an additional layer of validation to the ethnicity metrics utilized by comScore’s vCE product. Advertisers, especially those seeking to effectively reach the ever-growing U.S. Hispanic online audience, will not only benefit from enhanced validation of the U.S. Hispanic online audience, but from the insights the data can provide as well.
“Batanga Media believes that qualifying ethnicity is important in order to provide clients with accurate identification and metrics on this important audience segment,” said Rafael Urbina, CEO of Batanga Media. “Batanga Media’s partnership with comScore as a data provider reflects both companies’ commitment to further evolve the Hispanic digital space.”
The proprietary data provided by Batanga Media will be integrated with comScore’s own opt-in panel data to best identify and validate Hispanic ethnicity within digital campaigns delivered to U.S. audiences. The data from the two companies will be combined in a privacy protected manner, and adherence to the two companies’ privacy policies.
“Hispanic consumers represent one of the fastest-growing segments of the U.S. population and they are only increasing in importance to marketers,” said Anne Hunter, comScore SVP of Global Marketing Strategy. “By leveraging Batanga Media’s valuable demographic information on Hispanic consumers, comScore can significantly bolster the quality of our audience reporting for digital campaigns. Greater depth and reporting granularity for Hispanics means an improved ability for our clients to optimize their campaigns in real-time.”
Latinos will surpass Whites in California in March
The Latino population is projected to surpass that of whites in California in March to become the single largest “race or ethnic group,” according to a report on shifting demographics in Gov. Jerry Brown’s 2014-15 budget proposal.
Also, the number of residents 65 and older will jump by 20.7 percent over the next five years, the report said.
State demographers expected Latinos to surpass the non-Hispanic white population seven months earlier, but Latino birth rates were lower than anticipated. Now, officials say, by March Latinos will make up 39 percent of California’s population, edging out non-Hispanic whites at 38.8 percent. Nearly 25 years ago, non-Hispanic whites made up 57 percent of the state, while Latinos made up 26 percent.
The state’s Department of Finance includes the projections in the governor’s budget proposal because of the potential economic impact, such as the increase in retirees affecting the scope of services needed for an aging population, or income disparities among minority groups increasing the need for social or educational programs.
Reshaping the electorate
“Demographic changes that are coming will reshape the electorate, and in turn that will likely have impacts on policies and issues that decision makers focus on in the coming decades,” said Mindy Romero, director of the California Civic Engagement Project at the UC Davis Center for Regional Change.
Geographic data for the state’s 58 counties show the Bay Area is leading the state in economic and population growth, said Bill Schooling, chief demographer for the state Department of Finance. Statewide, coastal cities are growing faster than the Central Valley.
As a state, California experienced modest growth in the past fiscal year, with estimates pegging the population at 38.2 million residents. By July, demographers anticipate the state’s population will grow by 300,000 people.
More old, fewer young
Growth rates vary drastically between age groups, with retiring Baby Boomers projected to reshape the labor force in the next 15 years as more than 1,000 Californians will turn 65 years old each day. At the same time, lower birth rates have resulted in fewer young people, with the 18-to-24-year-old group experiencing a 4.5 percent decline and 5- to 17-year-olds increasing just 0.2 percent.
“A big question mark is about what that means for policy for youth,” Romero said. “Older voters often aren’t as supportive of youth-specific policies.”
Schooling said the median age for Latinos – 28 – shows many are in their childbearing years, which will drive future growth among the group.
“Considerably more births are Latino, even though the birth rate is not particularly high,” he said.
Schooling said new data suggest the current trend won’t continue to the point of Latino groups becoming a majority. State demographers previously projected the Latino population to reach more than 50 percent in 2042.
“In our projections, they get higher and higher, but not reaching a majority,” Schooling said.
Asian groups, which currently make up 13 percent of the state, are also projected to see strong growth, mostly through immigration.
“It’s less about one group being a couple tenths more of the population than another group, but more about a continuing trend for California being a majority-minority state,” said Bruce Mirken, spokesman for the Greenlining Institute, a Berkeley nonprofit that advocates for communities of color. “Everything that government does, that private industry does, needs to react to that reality.”
Source: Latin Bay Area
Nontraditional Hispanic Markets Emerge
by Jose Villa, Think Multicultural
I often say, the Hispanic market in the U.S. has been changing as quickly as it’s been growing the last 15 years. One of the biggest ways it has changed is geographic distribution. One only has to take a quick glimpse at the following heat map to understand how the Hispanic population is spreading to what demographers increasingly refer to as “nontraditional” Hispanic markets:
source: Think Multicultural Blog
Nielsen reported in May 2013 the Hispanic population has at least doubled in 11 nontraditional markets, led by Charlotte, N.C. since 2000. While traditional Hispanic population centers like Los Angeles and Miami have continued to see double-digit Hispanic population growth, they are growing at a much slower pace.
As I discussed in a previous article, Hispanics are increasingly immigrating to nontraditional markets outside the Hispanic immigrant gateways of Los Angeles, New York, Miami and Chicago. Mexicans have been migrating to nontraditional states in the Southeast and Midwest – Georgia, North Carolina, Ohio, Wisconsin, Nebraska, etc. – and less to traditional areas in the border states and the Southwest.
The Nielsen report indicates some of these markets may become the next Hispanic population centers, appearing on top 10 Hispanic market lists alongside mainstays like LA and New York. What will these new Hispanic markets in the South, Midwest, and northern plains look like over the next five to 10 years? They will likely share similar growth patterns to major Hispanic markets in the 1980s, seeing sustained Hispanic population growth driven by a healthy mix of net new Hispanic immigration coupled with high birthrates. Like traditional Hispanic markets in the 1980s, many of these non-traditional markets, like Charlotte and Oklahoma City, are seeing significant job creation and overall population growth. This will have a strong “pull” effect on net Hispanic immigration, primarily from Mexico and Central America.
However, today’s digital world presents a very different media reality for Hispanics making their way in these nontraditional markets. While markets like Atlanta and Kansas City, Mo. do not have anywhere near the Spanish-language media options that exist in markets like New York or Miami, they have new, low-cost and highly mobile digital media options their Hispanic immigrant predecessors did not have in Dallas or Phoenix in the 1980s. They will be able to listen to whatever music, view whatever programming, and read content from home online, via their mobile devices.
Study: Latino kids use computers more than non-Hispanic peers
Hispanic children under age 9 whose families own mobile devices or computers use them more than their cohorts in other ethnic groups, according to a study published by the National Institute for Latino Policy Inc.
The report entitled “Media, Technology and Reading in Hispanic Families” was prepared by Northwestern University and the National Center for Families Learning.
Download the entire study here.
U.S. Census Bureau Daily Feature: Hispanics and the nation’s economy
Profile America — Sunday, September 29th. As National Hispanic Heritage Month continues, and another fiscal year draws to a close, much attention is focused on the country’s economic performance. The 53 million strong Hispanic community in the United States inhabits a formidable and expanding place in the nation’s economy. Over 19 percent of Hispanics over the age of 16 work in management, business, science, and arts occupations. When tabulated recently, there were 2.3 million Hispanic-owned businesses in the U.S., an increase of almost 46 percent from five years earlier.
A greater surge is seen in revenues from Hispanic-owned businesses. Receipts totaled over $350 billion, up more than 58 percent from the earlier figure. You can find more facts about America’s people, places and economy from the American Community Survey at www.census.gov.
Nielsen shows relation between TV ratings and Twitter ( via Produ)
Image courtesy of Produ.com
Nielsen decided to study what, if any, relation exists between social media and TV ratings – specifically between Twitter and television viewership – asking whether tweets spur followers to watch a particular program, or if viewers tweet the name of the program they’re watching at the moment.
The study revealed that it works both ways – television ratings increase the more programs are tweeted about on the social network, and Twitter activity climbs when TV ratings for a popular program spike. Nielsen found that 80 percent of smartphone users in the United States use their mobiles while watching television, while 40 percent are on social networks.
The programs with the most impact on social networks by category are competitive reality shows with 44 percent of tweets per episode, comedies with 37 percent, and sports with 28 percent, while TV dramas are the least affected with 18 percent of tweets per episode.
“Using time series analysis, we saw a statistically significant causal influence indicating that a spike in TV ratings can increase the volume of Tweets, and, conversely, a spike in Tweets can increase tune-in” said Paul Donato, chief research officer at Nielsen.
For his part, Mike Hess, executive VP of media analytics at Nielsen, noted that “the TV industry is dynamic and it was important for us to analyze multiple variables to truly understand Twitter’s impact on TV ratings. While our study doesn’t prove causality, the correlation we uncovered is significant and we will continue our research to deepen the industry’s understanding of this relationship”.
Nebraska’s Hispanic/Latino population could triple by 2050
Nebraska’s Hispanic/Latino population is exploding. A report released last week by the University of Nebraska at Omaha’s Center for Public Affairs Research (CPAR) predicts the number of Hispanic/Latinos in the state will more than triple by the year 2050.
In the 2010 census, there were 167,405 Nebraskans who self-reported as Hispanic. The UNO CPAR looked ahead to the year 2050 and predicts there will be 538,941 Hispanics. Hispanics will account for 24 percent of Nebraska’s population, compared to 9 percent in 2010.
“It means that Hispanics and Latinos are the main engine of population growth not only in the country and in the state,” said Lissette Aliaga-Linares, a research associate in the UNO Office of Latino/Latin American Studies.
What’s fueling the engine? First, although the state’s overall population will grow, the number of Nebraskans considered white/non-Hispanic is predicted to decline by more than 100,000 between now and 2050, with the aging of the baby boomer generation. There has been a lot of migration of Hispanic/Latinos to Nebraska in previous decades, but this will actually slow in the future.
“So going forward, it’s not going to be immigration necessarily that drives Hispanic/Latino growth, but natural change,” according to David Drozd, research coordinator for the UNO Center for Public Affairs Research.“So while in the 1990s we had people coming here and then maybe later on brought their spouses and things like that after the initial wave of coming here for jobs, now people are having families and you have people born in the early 1990s hitting age 20, 25 and starting their own families. So the births being so much higher than the deaths will take the population of Hispanic/Latino higher into the future.”
Plus, the Hispanic/Latino population already here is likely to stay. Partially for reasons that make Nebraska attractive to anyone: jobs, cost of living, low crime and good schools. But also for reasons more related to culture.
Read more at Nebrask.org
Spanish is the most spoken non-English language in U.S. homes, even among non-Hispanics
A record 37.6 million persons ages 5 years and older speak Spanish at home, according to an analysis of the 2011 American Community Survey by the Pew Research Center.
Spanish is, by far, the most spoken non-English language in the U.S. The next most spoken non-English languages are Chinese (with 2.8 million speakers), Hindi, Urdu or other Indic languages (2.2 million), French or French Creole (2.1 million), and Tagalog (1.7 million).
The number of Spanish speakers in the U.S. has grown rapidly in recent decades, reflecting the arrival of new immigrants from Latin America and growth in the nation’s Hispanic population. Today 34.8 million Hispanics ages 5 and older speak Spanish at home.
However, not all Spanish speakers are Hispanic. According to our analysis, some 2.8 million non-Hispanics speak Spanish at home today. That places Spanish at the top of the list of non-English languages spoken by non-Hispanics along with Chinese and ahead of all other languages.
(The U.S. Census Bureau measure of non-English language use captures how many people say a language other than English is spoken in the home but does not capture how well or how often the language is spoken).
Who are the 2.8 million non-Hispanics who speak Spanish at home? Some 59% trace their ancestry to non-Spanish European countries such as Germany, Ireland, England and Italy. An additional 12% say they are of African American descent. Nonetheless, about one-in-five (18%) non-Hispanic Spanish speakers trace their heritage to a Spanish-speaking country. By comparison, among the non-Hispanic U.S. population ages 5 and older, about two-thirds (64%) trace their ancestry to non-Spanish European countries, 13% say their ancestry is African American and 1% trace their heritage to a Spanish-speaking country.
Nine-in-ten (89%) of non-Hispanic Spanish speakers were born in the U.S., a share similar to that for all non-Hispanics ages 5 and older (91%).
The racial composition of non-Hispanic Spanish speakers mirrors that of the U.S. non-Hispanic population. Overall, three-quarters (77%) of non-Hispanics who speak Spanish at home are white, 14% are black, and 9% say they belong to some other racial group. Among the non-Hispanic U.S. population ages five years and older, 76% are white, 14% are black, and 9% are some other race.
Many non-Hispanic Spanish speakers reside in a household where at least one other member is Hispanic. Overall, 26% of non-Hispanic Spanish speakers live in these types of households. By comparison, just 3% of all non-Hispanics ages 5 and older live in such households.
Three-in-ten (28%) non-Hispanics Spanish speakers who are married live with a Hispanic spouse. By comparison, only 2% of non-Hispanics are living with a Hispanic spouse.
When it comes to English proficiency, eight-in-ten (80%) non-Hispanics who speak Spanish at home say they speak English “very well”, 11% say they speak English “well”, and 9% say they speak English “not well” or do not speak English. This compares with 96% of all non-Hispanics 5 years and older who speak English only or speak it “very well”, 2% who speak English “well”, and 2% who speak English “not well” or do not speak English.
NALEO’s Arturo Vargas joins the U.S. Census’ National Advisory Committee on Racial, Ethnic and Other Populations
The U.S. Census Bureau today announced 10 new members of its National Advisory Committee on Racial, Ethnic and Other Populations and has named Arturo Vargas from the National Association of Latino Elected and Appointed Officials (NALEO) Educational Fund as a member of the committee.
The National Advisory Committee advises the Census Bureau on a wide range of variables that affect the cost, accuracy and implementation of the Census Bureau’s programs and surveys, including the once-a-decade census. The committee, which is comprised of 32 members from multiple disciplines, advises the Census Bureau on topics such as housing, children, youth, poverty, privacy, race, ethnicity and sexual-orientation issues.
“The committee has helped us meet emerging challenges the Census Bureau faces in producing high-quality statistics about our diverse nation,” said Thomas Mesenbourg, the Census Bureau’s acting director. “By helping us better understand a variety of issues that affect statistical measurement, this committee ensures that the Census Bureau continues to provide relevant and timely statistics used by federal, state and local governments as well as business and industry in an increasingly technologically oriented society.”
The National Advisory Committee members, who serve at the discretion of the Census Bureau director, are chosen to serve based on their expertise and knowledge of the cultural patterns, issues and/or statistical needs of “hard-to-count” populations. The new members will be seated on Aug. 1.