African-Americans Wield Considerable Consumer Power
African-Americans’ buying power is expected to reach $1.1 trillion by
2015, according to The State of the African-American Consumer Report,
released today, collaboratively by Nielsen, a leading global provider of
insights and analytics into what consumers watch and buy, and The
National Newspaper Publishers Association (NNPA), a federation of more
than 200 Black community newspapers across the U.S. This growing
economic potential presents an opportunity for Fortune 500 companies to
examine and further understand this important, flourishing market
segment. Likewise, when consumers are more aware of their buying power,
it can help them make informed decisions about the companies they choose
“Too often, companies don’t realize the inherent differences of our
community, are not aware of the market size impact and have not
optimized efforts to develop messages beyond those that coincide with
Black History Month,” said Cloves Campbell, chairman, NNPA. “It is our
hope that by collaborating with Nielsen, we’ll be able to tell the
African-American consumer story in a manner in which businesses will
understand,” he said, “and, that this understanding will propel those in
the C-Suite to develop stronger, more inclusive strategies that optimize
their market growth in Black communities, which would be a win-win for
all of us.”
The report, the first of annual installments in a three year alliance
between Nielsen and NNPA, showcases the buying and media habits and
consumer trends of African-Americans.
The 41st Annual Legislative Congressional Black Caucus
Foundation Conference week’s activities set the backdrop for the
announcement. Flanked by civic, business and legislative leaders,
Nielsen and NNPA executives spoke about the relevance and importance of
the information shared in the report and the fact that it will be
distributed in NNPA’s 200+ publications, reaching millions of readers
and online viewers.
“We see this alliance with NNPA as an opportunity to share valuable
insights, unique consumer behavior patterns and purchasing trends with
the African-American community,” said Susan Whiting, vice chair,
Nielsen. “By sharing, for example, that African-Americans over-index in
several key areas, including television viewing and mobile phone usage,
we’ve provided a better picture of where the African-American community
can leverage that buying power to help their communities,” she said.
“Likewise, the information points businesses in the right direction for
growing market share and developing long range strategies for reaching
this important demographic group.”
Consumer trends in the report include facts such as:
- With a buying power of nearly $1 trillion annually, if
African-Americans were a country, they’d be the 16th
largest country in the world.
- The number of African-American households earning $75,000 or higher
grew by almost 64%, a rate close to 12% greater than the change in the
overall population’s earning between 2000 and 2009. This continued
growth in affluence, social influence and household income will
continue to impact the community’s economic power.
- African-Americans make more shopping trips than all other groups, but
spend less money per trip. African-Americans in higher income
brackets, also spend 300% more in higher-end retail grocers more than
any other high income household.
- There were 23.9 million active African-American Internet users in July
2011 – 76% of whom visited a social networking/blog site.
- 33% of all African-Americans own a smart phone.
- African-Americans use more than double the amount of mobile phone
voice minutes compared to Whites – 1,298 minutes a month vs. 606.
- The percentage of African-Americans attending college or earning a
degree has increased to 44% for men and 53% for women.
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and
measurement company with leading market positions in marketing and
consumer information, television and other media measurement, online
intelligence, mobile measurement, trade shows and related properties.
Nielsen has a presence in approximately 100 countries, with headquarters
in New York, USA and Diemen, the Nether lands. For more information,
ABOUT NATIONAL NEWSPAPERS PUBLISHERS ASSOCIATION
The National Newspaper Publishers Association, also known as the Black
Press of America, is a 71-year-old federation of more than 200 Black
community newspapers from across the United States. Since World War II,
it has also served as the industry’s news service, a position that it
has held without peer or competitor since the Associated Negro Press
dissolved by 1970. In 2001, the NNPA, in association with the NNPA
Foundation, began building the BlackPressUSA
Network – the nation’s premier network of local Black community news
and information portals.