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DMA INTRODUCES 2005 HISPANIC MARKETING REPORT: Report Demonstrates the Many Positive Aspects About Hispanic Consumers' Experiences with Buying Direct
New York, NY, April 5, 2005 -The Direct Marketing Association (The DMA) today introduced its first-ever market research on U.S. Hispanic consumers' attitudes and purchasing habits via direct marketing channels. The DMA 2005 Hispanic Market Report, produced in conjunction The DMA Directo: Council for Hispanic Marketing, demonstrates the many positive aspects about Hispanic consumers' experiences with buying direct.
"With more than 43 million Americans of Hispanic descent, the United States is now the world's fifth-largest Spanish-speaking country," said Ann Zeller, vice president, information and special projects, The DMA. "Census projections indicate that in 30 years, more than 25% of the American population will be of Hispanic descent. This report pulls together the most recent data to help direct marketers make the best of new opportunities in growing market segment."
A nationwide sample of Hispanics in which 10,625 records were used was the basis for the study. Quotas were set for 70% of respondents to be direct response buyers and/or donors and 30% non-buyers. There were 1,124 completed interviews for the analysis. These interviews included 797 direct buyers/donors and 327 non-buyers.
Highlights of The DMA 2005 Hispanic Market Report:
Hispanics that Bought Directly by Type of Media
Close to 40% of Hispanic direct buyers purchased from mail offers.
Media Category # of Hispanic Purchases % of Total
Direct Mail 229 38.2%
Online 156 26.0%
Telemarketing 44 7.4%
DRTV 170 28.4%
Total 599 100%
Demographics: Born in U.S. or Outside
• Direct Buyers: More direct buyers (53%) were not born in the United States. However, the majority (60%) of those not U.S. born have lived in the U.S. for ten or more years.
• Non-Buyers: 77% of non-buyers were not born in the U.S. Like direct buyers, the majority of non-buyers (56%) have been in the United States for ten or more years.
• Donors: Most direct donors (65%) were not born in the United States.
Number of Hispanic Direct Purchases by Media Channel*
• Online: 82% made a purchase through a Web site in the past year with 62% making five or fewer purchases. An additional 36% made six or more purchases.
• E-Mail: 15% made a purchase by e-mail in the past year with an average of 5.4 purchases.
• Telephone: 57% of telephone direct buyers made one or two purchases by telephone in the past year.
• DRTV: 42% of television direct buyers reported only a single direct purchase in response to a television ad or infomercial.
Reasons for Shopping Direct
• More than four in 10 Hispanics cite "convenience of shopping from home" as a reason for making direct purchases. Significantly, convenience was most frequently cited in reference to online purchases (56%). Those purchasing from television, mail or telephone offers respectively ranked convenience (45%, 44%, and 41%).
• More than a quarter view "discounted and reduced prices" as an incentive to shop from home or office .
• "Time saved" is the third top ranked reason - noted by 25%.
The DMA's research also targeted Hispanic consumers who do not purchase products or services through direct marketing channels. Respondents were asked to identify reasons why they were discouraged from buying through direct channels. They were then asked to rank the issues that discouraged them from buying. These results reflect our findings from 327 non-buyers. The following bullets indicate the reasons Hispanics do not buy directly:
The majority of respondents (58%) cited two main reasons for not buying from direct advertising offers. More than a third (37%) indicated that they "preferred to see and touch items" and a little more than a fifth (21%) said that they were "not interested in items advertised."
About The DMA
The Direct Marketing Association (www.the-dma.org) is the leading trade association for businesses and organizations interested in direct, interactive, and database marketing, which in 2004 generated more than $2.3 trillion in US sales, including $143.3 billion in catalog sales and $52.5 billion in Web-driven sales. In addition to catalogs and the Web, DMA members employ a wide variety of marketing media, including mail, e-mail, telephone, newspapers and magazines, interactive television, and radio, among others. Founded in 1917, The DMA today has more than 5,200 corporate, affiliate, and chapter members from the US and 44 other nations, including 53 companies listed on the Fortune 100. Reflecting the significant and growing role that direct marketing plays in today's advertising mix, The DMA's membership represents marketers from every business segment, including catalogers, Internet retailers, retail stores, nonprofit organizations, advertising agencies, financial services providers, book and magazine publishers, book and music clubs, industrial manufacturers, and a host of other vertical segments, as well as the service industries that support marketers.