By Brittany Hutson
It’s peculiar how the buying power of the African American market is reported to reach $1 trillion this year, according to market research publisher Packaged Facts; yet the market remains largely untapped by advertisers. With such a consumer market ready to spend so much on goods and services, why are companies missing out?
Melvin Wilson, a digital marketing executive with the multicultural ad agency UniWorld Group, who has clients such as Time Warner Cable and CVS, says a lot of advertisers miss opportunities to own relationships with the African American market. “Marketers will take segments that aren’t necessarily split by race, like mothers, and they’ll try to own that segment and protect it from other competitors,” he says. “I really haven’t seen any marketer take that stance towards African Americans.”
Wilson adds that companies underestimate the power of the Black consumer. “They should be worried about how we’re going to influence other folks into buying stuff,” he says. “There’s a market for premium headphones because Dr. Dre decided to make one. Now there’s kids [of all races] walking around with $379 headphones on.” We collaborated with Wilson to develop a list of seven companies who’ve been successful in their efforts to attract the Black consumer.
Ford Motor Company: Throughout the company’s history, Ford has been a mainstay in the Black community. They are present at a number of events, such as the Essence Music Festival, BET Awards and Hoodie Awards. Earlier this year, the company launched two advertising campaigns: the 2011 Ford Fiesta urban market initiative included a program called “Inspired by Color.” This called for people to show how their personal style embodied the colors and features of the new Fiesta. Five finalists were chosen and now each appears in a television ad for the car. The second initiative is ALL IN, which features videos with key Black executives who played a pivotal role in the company’s revival. See more of Ford’s events and initiatives here.
American Airlines: Besides Southwest Airlines, there hasn’t been another travel company that’s consistently supported African Americans, according to Wilson. American Airlines formed an agreement with “The Steve Harvey Morning Show” three years ago to advertise on the radio show and Harvey’s official web site. Recently, airlines launched a social media site dedicated to the ‘Black Traveler’ at blackatlas.com. They’ve also launched a virtual museum that explores the history of African-Americans in aviation from pre-civil rights to the present.
Proctor & Gamble: Realizing that Black woman spend three times more of their disposable income on beauty products, P&G jumped in and launched “My Black is Beautiful” three years ago. The MBIB marketing campaigned has evolved into a national discussion on how Black women define their beauty. Now, it includes a cable television show, a website, a Facebook page with more than 55,000 members, endorsements by African American celebrities and special events held in cities nationwide.
Home Depot: To appeal to African American female homeowners, Home Depot put a twist on ‘Girls’ Night Out’ this past summer. Instead of heading to the mall or the club, women could head to Home Depot to get how-to tips on home projects such as painting and applying tile. Earlier this year, the home improvement company offered a $150,000 grant program for on-campus improvement projects at Historically Black Colleges and Universities.
Verizon Communications: “Black folks are mobile and Verizon was the first way a lot of folks got involved with that,” says Wilson. This history should work in Verizon’s favor since Blacks talk and text more than any other race. According to data from Nielsen, Blacks average more than 1,300 minutes a month texting and talking.Verizon is praised for its commitment to employee diversity, as proven by the many diversity lists they’ve landed on. According to the company, African Americans make up 20 percent of their workforce and nearly 24 percent of new hires. They’ve awarded more than $28 million in grants supporting programs and nonprofits that benefited Black communities through their philanthropic division, the Verizon Foundation.
Wells Fargo & Company: Though they’ve acquired Wachovia, which was deeply rooted in the Black community in the southeast, Wells Fargo has been determined to continue that relationship with African-Americans. A few months ago, Wells, known as the nation’s largest lender to small businesses, collaborated with the National Black MBA Association for the fourth year in a row to honor African American entrepreneurs. “Wells Fargo is a big bank with a community banking feel and they’ve always promoted diversity in employment [which] is a little different from most banks,” says Wilson.
Turner Broadcasting System, Inc.: Home to news network CNN and entertainment networks such as TBS, TNT, Cartoon Network and Adult Swim, Turner Broadcasting has been providing a block of programming that’s attracted African American viewers over the last few years. “They got three of the major forces in TV that are black,” says Wilson. This includes, of course, Tyler Perry of “House of Payne” and “Meet the Browns;” Ice Cube of “Are We There Yet?” and Aaron McGruder of “The Boondocks.” Adds Wilson, “whereas networks like Fox and the CW went in the opposite direction and rejected the African American dynamic, Turner has embraced it.”
