How brands can regain the trust of a $2 trillion market

Marketers should be concerned. Latinos are at risk of being disconnected from American society and life—and the data specifically points to worsening relationships with big brands. The reason is clear. We do not feel valued because we do not feel represented.  

Even more concerning is that the momentum is in the wrong direction. We feel less valued by big brands and less reflected by them than we did five years ago. Be warned but there is still time—we aren’t acting on it yet.

These findings come from the 2023 Hispanic Sentiment Study, a collaborative research project by the We Are All Human Foundation and Nielsen, powered by Toluna and in partnership with Televisa Univision.  

Five years ago, we established a baseline for Hispanic sentiment with our first study. Now, at this crucial point, we must understand the impact of the past five years marked by COVID-19, economic uncertainty and social and political turmoil. Despite facing disproportionate challenges, Latinos have shown resilience, and our collective power and prosperity continue to rise. Our annual purchasing power now surpasses $2 trillion.

Against that positive backdrop, however, Latinos are losing optimism and that is having a negative effect. The most precipitous drop (68% to 42% points) is how Latinos perceive that our values are reflected across American society. However, big brands have failed to play a significant role in our journey of progress. In the past five years, the proportion of Latinos who believe that big brands truly represent our values has declined from 54% to 45%. But watch out—someone is paying attention to us, and we might just start making different choices. Latinos have consistently rated small businesses as reflecting our values, with 68% agreement, compared to 67% in 2018.

There are equally troubling signs within the media landscape. Despite the fact that minority representation in media has increased, only 46% of Latinos perceive their values as being reflected in English-language news media. In movies and TV, the figure is slightly higher at 51%, but it still represents a 4-point decline from five years ago.

At the same time, trust in Hispanic news and media has gained traction and surpassed trust in mainstream media. Trust in Hispanic/Latino media sources has increased from 25% in 2018 to 32% in 2023. The largest increase is found with Gen X, whose trust increased by 14 percentage points.

It's worth highlighting the growing trend of reclaiming our Latinidad. Our sense of community and our understanding of our own contributions to this country are on the rise, precisely the areas where the We Are All Human Foundation has devoted significant attention and effort. Pride has increased from 61% five years ago to 64% today, and unity within the community has risen from 48% to 55%. This resurgence further reinforces and empowers our Latino identity, providing concrete evidence that it is time to redouble efforts.

We are embracing our Latinidad through language and culture, but also through Latino values such as hard work. We define ourselves through these elements more and more. Culture jumped 10 points from 69% to 79% and the rise of the Spanish language by a stunning increase of 14 points from 63% to 77%. This is a great opportunity for brands to be able to be fair, genuine, transparent and real when engaging with the Latino community.

The Hispanic Sentiment Study can become a road map for any marketer because understanding the community, what we care about, in what language and with what channels is a roadmap to engaging with Latinos authentically. That on its own represents a substantial market in itself, given our size, age and purchasing power. But that is not all. You can attract general market consumers through Hispanic culture.

In the United States today there are more tortillas sold than bread and more salsa sold than ketchup, 80% of the U.S. population enjoys Mexican food weekly and Latino music is leading the top charts nationwide. Hispanic culture is shaping global culture. This presents a golden opportunity for marketers to not only capture the Latino market but also attract the broader audience by embracing Latino values and culture.

What is abundantly clear is the need for companies to have a comprehensive Latino strategy, understanding Hispanics as secular growth. Fortune 500 companies project that between 25% to 120% of their growth will come from the Hispanic market in just the next 3-5 years.

If you are passive to the Latino market, you need to become active. If your strategy is peripheral or general market, you need to segment and target Latinos more and more intentionally. Maybe you are grouping Latinos in a big “people of color” pot. Maybe your DEI strategy mostly focuses on a single community, and you think that it will spill over to us. Well, the answer is NO. We do not feel the love and feel increasingly disconnected from American values and relegated by big brands and media. Marketers should be alarmed that Latinos feel more undervalued than they did five years ago, with a percentage drop of 10 points from 53% in 2018 to 43% now.

A lot of things changed in five years. But one thing remains consistent from 2018 to 2023: our loyalty. The study finds that 84% of Latinos are willing to show favorability and loyalty to brands that get involved in the community and 83% are more likely to be customers if they perceive a positive role the brand is playing there. The opportunity to engage Latinos and to drive brand engagement, preference and loyalty is massive and calling your name.  

Start by increasing representation within your company—that is the path to authentic and genuine marketing. Represent Latinos just as we are, as positive contributors to the country. Hispanic Stars, ready to shine.

Develop and invest in the community. Don’t go just for our wallet only; invest full circle in talent, campaigns and the community. Increase your marketing investment, and remember that for Latinos, grassroots marketing always works.

And finally, take big and bold action. Adelante y sin miedo: Forward and fearless. Go big or pay more later. Eventually, everyone will need a Latino strategy, but it will be much more expensive to course-correct for latecomers.

As Marissa Solis, my friend who is senior VP of global brand and consumer marketing for the NFL, said in the second-ever session about Hispanics in Cannes this year, “Take the big bet.” Small won’t work. And start now, Hispanic Heritage Month is an incredible opportunity in the fall, and we need all hands on deck to change the perception of Latinos for good. Investing in Hispanics is investing in your brand.

Take the big bet. Be a first mover. It will pay off.