Advertisers spent more than $3.3 bln to market products to US Hispanics in 2005, a 6.8% increase from 2004. While traditionally Spanish-language advertising was used to reach Hispanics, new data indicate second- and third-generation Hispanics tend to favor English. As a result, ad spending growth in some sectors of the US Hispanic market is slowing as advertisers debate which Hispanic demographic to target.
Advertisers spent an estimated $3.3 bln to market their products and services to US Hispanics in 2005, a 6.8% increase from 2004. At the same time, the Hispanic population is growing at a faster rate than the overall US population. According to US Census estimates, the number of Hispanics reached 41.8 mln in 2005, an increase of 3% from the year before. The overall US population increased by less than 1% over the same period. As Hispanics simultaneously make progress in educational attainment, their purchasing power represents an increasingly larger proportion of the US total, reaching 8.9% in 2005.