Report Reveals African-American Consumer Opportunities for Businesses

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    Sept. 21, 2012 13:00 UTC

    Report Reveals African-American Consumer Opportunities for Businesses

    Nielsen and the National Newspaper Publishers Association (NNPA)
    collaborate for second installment of report on Black buying power,
    consumer behavior and lifestyle trends

    WASHINGTON–(BUSINESS WIRE)–
    A consumer group which continues to experience population growth, has
    unique generational behavioral trends and characteristics, and a
    projected buying power of $1.1 trillion by 2015, African-Americans are
    still a viable market segment full of business opportunities, according
    to the African-American Consumers: Still Vital, Still Growing 2012
    Report
    released by Nielsen and the NNPA today.

    Released during the Congressional Black Caucus Foundation’s (CBCF) 42nd
    Annual Legislative Conference, the report is the second of three annual
    installments of a collaboration between Nielsen, a global provider of
    information and insights into what consumers watch and buy, and the
    National Newspaper Publishers Association (NNPA), a 72-year-old
    federation of 200 Black community newspapers.

    “Our collaboration with the NNPA has been successful,” said Susan
    Whiting, vice chair, Nielsen. “NNPA’s insertion of the report into its
    200 publications allows Nielsen access to millions of African-American
    consumers, and allows us to share vital information that will help
    increase the awareness of Blacks’ consumer power.”

    The 2012 report highlights important subsectors of the population,
    unique lifestyles, purchasing and viewing habits, and also sheds light
    on the disparities in advertising dollars spent with African-American
    media.

    “Marketers underestimate the opportunities missed by overlooking Black
    consumers’ frustration of not having products that meet their needs in
    their neighborhoods. And companies that don’t advertise using Black
    media risk having African-Americans perceive them as being dismissive of
    issues that matter to Black consumers,” said Cloves Campbell, chairman,
    NNPA. “This report demonstrates what a sustainable and influential
    economic force we are.”

    The number of Blacks in America has reached almost 43 million. With a
    healthy representation of today’s population, coupled with an attractive
    collective buying power, businesses have opportunities to increase
    market share with Black consumers.

    Keeping the Black community informed and educated is one of the goals of
    the Congressional Black Caucus Foundation.

    “By providing a resource that demonstrates how we can use our collective
    buying power, we are providing a service that is beneficial to the
    individual consumer and our collective communities at the same time,”
    said Elsie L. Scott, president and CEO of CBCF.

    Collaborations with community organizations helps Nielsen establish a
    corporate reputation that is valued and trusted among consumers.

    “Nielsen’s collaborative efforts with organizations such as the NNPA and
    the CBCF demonstrates unity and reinforces the company’s credibility
    with Black consumers,” said Rev. Jacques DeGraff, co-chair, Nielsen’s
    external African-American Advisory Council (AAAC). “By engaging
    consumers in the conversation about economic power, the outcome can lead
    to improved products, more penetrating marketing messages and enhanced
    corporate/consumer partnerships in our communities,” said Victor
    Bulluck, co-chair, AAAC.

    Key insights from the report include:

    • Advertising spending in Black media totaled $2.10 billion in 2011,
      compared to $120 billion spent with general market media during the
      same time period.
    • 91% of Blacks believe that Black media is more relevant to them.
    • Brand name products represent 82% of Black households’ total purchases
      compared to 31% for private labels.
    • 81% of Blacks believe products advertised on Black media are more
      relevant to them.
    • 54% of African-Americans own a smartphone, a 21% increase from last
      year’s ownership.
    • 54% of the Black population is under 35; compared to 47% of the
      general population.
    • 48% of Black grandparents live with their grandchildren and serve as
      primary caregivers.
    • African-American Baby Boomers (45-64) spend more time at the stores or
      grocers, fast food restaurants and the gym, and they prefer television
      and print as primary media sources.
    • Generation Y (18-34) African-Americans are more likely to spend time
      at someone else’s home and select radio, mobile phones and gaming
      consoles as their media of choice.

    To download a copy of the report, please visit www.nielsenwire.com
    or www.nielsen.com/africanamerican.

    ABOUT NIELSEN

    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 Netherlands. For more information,
    visit www.nielsen.com.

    ABOUT NATIONAL NEWSPAPERS PUBLISHERS ASSOCIATION

    The National Newspaper Publishers Association, also known as the Black
    Press of America, is a 72-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.

    Contacts

    Nielsen
    Rebecca Roussell, 312-315-8616
    rebecca.roussell@nielsen.com

    Source: Nielsen Holdings N.V.