In recent years, the buying power of the Black community has risen significantly. According to a 2020 report via CNBC, Black buying power was $1.4 trillion in 2019 and is projected to grow to $1.8 trillion by 2024. This represents a huge opportunity for businesses, brands, and advertisers to tap into this influential demographic and harness the power of their purchasing potential.
Historically, the Black community has been an undervalued and underserved market. However, we’re seeing a shift toward recognizing the value of this demographic. Why is that, exactly? More companies target the Black community because of the market’s sheer size. According to a 2021 Pew Research Center report, an estimated 47.2 million people self-identified as Black, making up 14.2% of the country’s population. While this may not seem significant, it represents an enormous market many marketers and advertisers have largely ignored.
A 2018 Retail Customer Loyalty Study revealed that Black consumers are among the most loyal of all ethnic groups. The report indicated 48% of African American tend to find a good source for their purchases and stick with it. This was compared to 35% of Americans overall and 32% of non-Hispanic white respondents who said they stick with a good purchase source once they find it.
We’ve seen Black consumers become highly engaged with and loyal to brands that reflect their values and demonstrate a commitment to diversity and inclusion. A 2019 Google report revealed that 66% of Black consumers are more likely to return to a brand with advertising authentically reflecting their race/ethnicity. Ultimately, brands that prioritize diversity in their marketing efforts and work to create authentic connections with the Black community are likely to see a strong return on their investment.
It’s important to note that marketing to the Black community is more than just using diverse models in your advertising campaigns. It’s about understanding this demographic’s unique experiences, challenges, and aspirations and tailoring your messaging to resonate with them on a deeper level. This requires a commitment to building authentic relationships and engaging with the Black community through various mediums, such as social media, influencers, and community-based events.
One of the best examples of this strategy being implemented is from the spice company McCormick. A study conducted by the Collage Group determined that McCormick succeeded by exercising intentionality in its efforts to understand the Black community. As a result, the company gained the demographic’s favor by appealing to their passions. When building its award-winning campaign, McCormick leveraged the following strategies:
- Partnered with an award-winning African American chef who was famously known for their delicious dishes and affordable recipes
- Acknowledged the history and significance of soul food through a series of creative dish ideas
- Teamed up with another popular African American food influencer to create a new line of spices
- Prioritized offering customers an extensive inventory of seasonings and recipes
Companies such as Walmart, Lysol, Sprite, and Visa also rank high among Black consumers due to their ability to effectively and efficiently engage and support Black consumers. And while businesses that target Black consumers have the potential to benefit from targeting this demographic, it’s important to understand that it’s about more than just numbers and potential profits. It is a way to support and uplift a marginalized group historically excluded from mainstream society. By acknowledging and valuing Black consumers’ unique perspectives, experiences, and contributions, businesses can play a positive role in promoting social and economic equality.
At Blavity, Inc., we know the power of the Black dollar. We recognize that the Black community is an undeniable force in the market. Brands that acknowledge this and take steps to engage authentically will likely see significant ROI. This is why brands trust us to help them accomplish their campaign goals, as working with us means leveraging the largest Black network. If advertising to the Black community isn’t on your roadmap for this year, we urge you to reconsider the value of targeting this vibrant demographic. Contact us to learn how we can work together.