"America's Changing Demographics"-Impact on the Ad Game Monday, February 19, 2007 SUSIE GHARIB: Because different segments of the population have different tastes and buying patterns, marketers have long targeted their messages to specific demographic groups. So, as America becomes more diverse, it's not surprising that many companies are turning to demographic marketing. As we wrap up our series "America's Changing Demographics," Erika Miller reports on some of the latest ad campaigns. ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: What does this Mexican rock group have to do with cell phones? For Sprint Nextel, the answer is everything. It's sponsoring Mana's U.S. tour in order to attract more Hispanic customers. Isaac Mizrahi, Sprint's director of multi- cultural marketing, says Hispanics are crucial to the company's growth. ISAAC MIZRAHI, DIR., MULTICULTURAL MARKETING, SPRINT NEXTEL: They love their cell phones. They talk more minutes and they are also very open to adopt new usage habits like taking pictures on your cell phones, downloading music, watching videos. MILLER: Hispanic-Americans are the nation's fastest growing ethnic group. Their disposable income has jumped 29 percent since 2001, more than double the pace of the rest of the population. But advertising expert Giovanni Pacheco says reaching this demographic takes more than just translating English campaigns into Spanish. GIOVANNI PACHECO, DIR., STRATEGIC PLANNING, THE VIDAL PARTNERSHIP: The messaging is really -- has to be reflective of that particular consumer, rather than taking a general market message and assuming it automatically works in the Hispanic market. MILLER: Print media are also embracing diversity. "Town and Country" magazine has revamped itself to go after affluent minority readers and editor-in-chief Pamela Fiori says that's already helped its bottom line. PAMELA FIORI, EDITOR-IN-CHIEF, TOWN & COUNTRY: People have started looking at this magazine that was just etched in their mind as being for a white, east coast establishment as now a magazine that really has a much broader reach and is much more inclusive rather than exclusive. MILLER: Other companies are looking beyond the youth market and are trying to tap older age groups. Recently Chevrolet announced plans to bring back its Camaro which baby boomers remember from the '60s and '70s. Matt Thornhill, founder of the boomer project, says that's because boomers have buying power. MATT THORNHILL, FOUNDER, THE BOOMER PROJECT: Good golly, there are 78 million of them, and they spend $2.3 trillion a year on consumer goods and services. So, I think to ignore them would be the silliest thing a marketer could do. So I think that's why they should be coveted. MILLER: Not surprisingly, many financial services firms are trying to woo older Americans, among them Lincoln Financial and Oppenheimer funds. Kathleen Beichert is that firm's head of strategic retirement programs. KATHLEEN BEICHERT, DIR., STRATEGIC RETIREMENT PLANS, OPPENHEIMER FUNDS: We think that the baby boomer generation provides a real compelling opportunity because they do face a different set of risks than previous retirees. MILLER: Another company appealing to aging boomers is eons.com, a social networking site for people over 50. It was started by the founder of monster.com, Jeff Taylor. JEFF TAYLOR, FOUNDER, EONS.COM: What I decided is create a special site on the web and a brand that is about celebrating turning 50, going toward that reachable goal of living to 100. MILLER: Not everyone is convinced eons will be a success. But some members like Jacqueline Wales tout the site's unique features. JACQUELINE WALES, EONS.COM MEMBER: I liked the fresh approach that it seemed to be giving in that you put up your profile and you could create a life map which was actually a way of charting as a baby boomer, what have you been doing with your life. MILLER: So what's the next frontier for marketers? Some experts bet it's Asian Americans, the second fastest growing minority group. Experts say the group remains largely untapped by most U.S. companies because it is the least understood. Erika Miller, NIGHTLY BUSINESS REPORT, New York. Back to Media Coverage