First, the basics: African Americans represent 13% of the U.S. population. Their buying power in 2004 was $723 billion¹. By 2009, that figure is projected to reach $965 billion¹, when African Americans will account for 62% of the combined spending power of African Americans, Asians and Hispanic Americans. This means that African American consumers will account for almost nine cents out of every dollar that is spent in the U.S.

Furthermore, retiring the old stereotypes of the African American market as low income is long overdue. As far back as Census 2000, 19.3% of African American adults had earned a bachelor degree or higher. That significant increase from the 11.9% who held advanced degrees in 1992, and is virtually in line with the general market 21.9%. And African American households with annual incomes that exceed $75,000 now stand at 14%, comparable to the Hispanic market at 15%. (The percentage for the general market stands at 28%.)

Even with the significant spending power of this ethnic market, some marketers do not understand why they need to address African American consumers directly. The simple fact is African Americans are not a darker version of white Americans. And as a result, general marketing efforts are often inadequate in reaching and motivating them.

A specific example: Financial planning services typically appeal to consumers on the basis of their expertise in retirement planning. But if you lead with a message of retirement planning when talking to African Americans, you are delivering a sub-optimal message. Research indicates that African Americans’ number one planning concern is not retirement planning but financing children’s and grandchildren’s education. With deeper understanding, you will understand why. African Americans believe strongly in improving quality of life for the next generation. Historically, the way to do this is through education, something that was kept from Blacks at one time by law and later through segregation. Couple this high value placed on education with the fact that life expectancy among Blacks is lower than that of whites, and it’s easy to see why financing children’s education is a more compelling selling proposition.

But the fact is general market agencies can rarely identify such important strategic issues for their clients. The lack of diversity in the advertising industry itself is quite telling. Without the in-house resources to create relevant and compelling communications to African Americans, many general market advertising agencies rely on ethnic casting for their multicultural efforts – an approach that often rings false for many African Americans. In the current example, casting cannot give retirement planning the immediacy and relevance that financing education holds for these consumers. Casting without insight does not make for compelling advertising.

Appealing to the African American market has taken on increasing strategic importance in recent years. With the increasing numbers and wealth of African American consumers, the nature of market leadership and what it takes to be a market leader is changing. In short, it is becoming nearly impossible to maintain market leadership without directly addressing African American consumers in a consistent and meaningful way.

The best marketers understand that maximizing their sales and share of market among African Americans requires a sophisticated mix of marketing communications, including advertising, direct marketing, event sponsorship, targeted public relations and product placement. And in doing so, they do not treat African Americans as a monolithic whole.

That’s what our unique Urban Majority™ advertising and marketing approach is all about. At Prime Access, we offer our clients bottom-line results through an effective and efficient mix of marketing communications that works synergistically with general marketing efforts. That’s why so many Fortune 100 companies turn to us for their diverse marketing needs. Maximize your share of the African American market. Call us.

¹ Selig Center for Economic Growth

Howard Buford
President & CEO
Contact information:
Prime Access, Inc.
345 Seventh Avenue
New York, NY 10001
Ph. 212-868-6800
Fx. 212-868-9495
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