African American Consumer Report Oct 2016
African American Consumer Report Oct 2016
CONNECTED
AND BLACK
FOREWORD
Young, Connected and Black continues a dialogue started in the 2015 Diverse
Intelligence Series reportIncreasingly Affluent, Educated and Diverse, AfricanAmerican Consumers: The Untold Story. This latest report highlights AfricanAmericans economic and cultural gains and continues to shine a spotlight on
how African-American Millennials are forging ahead in their use of technology
and social media to raise awareness and evoke a national discussion on civic and
political issues. African-American Millennials are expanding the use of mobile
devices (particularly smartphones with a 91% penetration rate for all AfricanAmericans), expanding their shopping carts with fresh foods and contributing
to the diversification of mainstream primetime television viewershipforging a
significant increase in advertising dollars focused on African-American audiences.
African-Americans are also making impressive gains in high school and college
achievement. Fully 89% of African-American Millennials ages 2534 completed
high school, compared to 77% of those who are ages 55 and older, and 21% of
Black Millennials ages 2534 have an associate's degree or higher versus 17% of
those 55 and older.
A rise in educational advancement leads to increased buying power. In 2015,
African-Americans controlled almost $1.2 trillion in buying power, 8.6% of the
nations totala 21% increase over 2010, according to the Selig Center for
Economic Growth. African-American household income growth remains steady.
The share of African-American households with an income under $25,000 declined
from 43% in 2004 to 37% in 2014, while the share of households with annual
incomes over $100,000 increased from 7% in 2004 to 12% in 2014.
African-Americans are optimistic about Americas future, and they are catalysts
of change. As African-Americans, particularly younger Millennials, continue
to develop and expand their influence on mainstream America, companies
are making changes to reach this culture-rich group with unique, captivating
campaigns, as well as products and services that meet their needs.
Since 2011, Nielsen has provided a comprehensive annual report focused on
African-Americans unique media consumption and purchasing habits along with
relevant community topics that change year to year. This report is a collaboration
with Nielsens External African-American Advisory Council and its sub-committee
members: Eugene Campbell (co-chair), Reverend Jacques DeGraff, Adonis
Hoffman (co-chair) and Deborah Gray-Young. We are grateful for their support and
involvement throughout.
Cheryl Grace
Senior Vice President
U.S. Strategic Community Alliances
and Consumer Engagement
Saul Rosenberg
Chief Content Officer
EXECUTIVE
SUMMARY
African-Americans are exuberant and reflectiveoptimistic about
present-day advances in income, education, entrepreneurship and
healthcare, and determined to forge a better future as influential leaders
and catalysts of social awareness against discrimination and social
injustice. With incomes steadily rising at a rate that outpaces that of the
general population, African-Americans buying power is expected to grow
21.6% between now and 2020, by which time it will reach just over $1.4
trillion, according to the Selig Center for Economic Growth.
Led by tech-savvy Millennials, who regard and use technology and social
media as extensions of their identity, African-Americans are adept at
using and leveraging digital platforms to communicate with each other
and the world around them.
African-American consumers are focused on eating well and looking
good, over-indexing across a wide variety of product categories, ranging
from beauty products to fresh foods and ingredients that reflect their
proud heritage and cultural traditions. Given the combination of AfricanAmericans penchant for fresh foods and a need for meals on-the-go,
there is a clear opportunity for innovation and new-product development
in the convenient-healthy eating space.
Black advancement is a multi-generational affair, powered by a civil
rights legacy that guides and inspires older African-Americans even as
younger Blacks solidify and expand their role as cultural influencers in a
pan-cultural American mainstream.
Capital gains. African-Americans have shown strong income growth
over the last decade. The percentage of Black households with annual
incomes over $100,000 increased from 7% in 2004 to 12% in 2014, and
the percentage increase in the number of African-American households
making $50,000 or more per year has been greater for African-Americans
than it has for the nation as a whole, with the number of Black
households with incomes between $50,000 and $75,000 increasing 18%
between 2004 and 2014, compared to 2% for the total U.S. The share of
those households with an income under $25,000 declined from 43% in
2004 to 37% of the total African-American population in 2014.
*Source: Nielsen Mobile Insights, April 11, 2016June 30, 2016. Mobile device penetration among mobile subscribers 13+.
Note: For the purposes of this report, African-American and Black are used interchangeably.
CONTENTS
SECTION IAFRICAN-AMERICAN
DEMOGRAPHIC GAINS ........................................................ 6
Population growth.......................................................................................................... 6
A generational shift ........................................................................................................ 7
Educational advancement............................................................................................. 8
Increasing entrepreneurship.......................................................................................... 9
Household income........................................................................................................ 12
CONCLUSION........................................................................ 52
METHODOLOGIES............................................................... 53
SECTION I
AFRICAN-AMERICAN DEMOGRAPHIC GAINS
36.6
41.0
46.3
AFRICAN-AMERICAN
MILLENNIALS COMPRISE
14%
2004
2009
2014
Source: U.S. Census Bureau, 2004, 2009, and 2014 American Community Survey;
Black race plus Black race in combination with any other race.
MILLENNIAL
POPULATION
YOUNG, CONNECTED AND BLACK
A GENERATIONAL
SHIFT
Although African-Americans are a relatively young population, with
a median age of 33.4 versus 40.4 for Whites and 36.5 for Asians, the
African-American population is aging, even as the U.S. is getting
younger. While the number of African-Americans under 18 increased by
5% between 2004 and 2014, minors represented 33% of the total Black
population in 2004, but only 28% in 2014. Meanwhile, the number of
African-Americans ages 1834 and 3554 grew in number by 33% and
10%, respectively, but maintained relatively steady shares of the total
Black population. The 55 and older age group grew by 55%, increasing
from 16% of the total African-American population to 20% during the
same time period.
As the African-American population ages, distinct differences can be
seen among the generations, from shopping behaviors to media usage
and voting participation, which will be discussed throughout the report.
24%
20%
55+
25%
26%
3554
1834
UNDER 18
33%
28%
2004
2014
Source: U.S. Census Bureau, 2004, and 2014 American Community Survey; Black race
plus Black race in combination with any other race. Percentages may not add to 100% due
to rounding.
EDUCATIONAL
ADVANCEMENT
Educational progress continues when it comes to high school and
college achievement, with African-American women making the most
gains. Based on the most recent Census data, the high school dropout
rate for the total African-American population declined from 21% in
2004 to 16% in 2014. In 2014, as previously reported in last years
report, 70.9% of African-American recent high school graduates enrolled
in college, dramatically up from 59.3% in 2013, exceeding the college
enrollment rate of Whites (67.3%), according to U.S. Bureau of Labor
Statistics.
Of the degrees awarded in the U.S. from 2012 to 2013, Blacks received
10% of the bachelors degrees, 12% of the masters degrees, and 7%
of the doctorates. Black women outpaced their male counterparts,
receiving 65% of the bachelors degrees, 70% of the masters degrees,
and 64% of the doctorate degrees awarded to Blacks.
16%
32%
BACHELORS
DEGREE
SOME COLLEGE OR
ASSOCIATES DEGREE
7%
15%
12%
33%
TOTAL
AFRICAN-AMERICAN
9%
HIGH SCHOOL
DIPLOMA OR GED
17%
13%
29%
35%
AFRICAN-AMERICAN
FEMALE
35%
6%
11%
31%
AFRICAN-AMERICAN
MALE
Source: U.S. Census Bureau, 2014 American Community Survey; African-Americans 25+.
16%
7%
BACHELORS
DEGREE
12%
12%
SOME COLLEGE OR
ASSOCIATES DEGREE
6%
15%
30%
32%
8%
13%
23%
7%
10%
32%
33%
TOTAL
12%
HIGH SCHOOL
DIPLOMA OR GED
35%
38%
2534
3554
28%
32%
55 & OLDER
Source: U.S. Census Bureau, 2014 American Community Survey; African-Americans 25+.
INCREASING
ENTREPRENEURSHIP
African-American entrepreneurship, particularly in new businesses
founded and led by Black women, has grown substantially over the
last few decades. In the most recent U.S. Census Survey of Business
Owners, released in 2015, data shows that in the five-year period
between 2007 and 2012, the number of majority Black-owned
businesses grew 34%. Between 2002 and 2012, the number
of businesses grew 116%. At almost 2.6 million individual
businesses, with over $150 billion in sales, Black businesses
represent 9% of all U.S. businesses. Female-owned businesses
were the majority of Black businesses in 2012; at over 1.5 million
businesses, they represent 59% of all Black businesses and 15% of all
female-owned businesses. Black female-owned businesses have grown
67% since 2007 and 178% since 2002.
75%
67%
67%
60%
45%
34%
33%
21%
20%
13%
18%
10%
27%
20%
2%
-8%
19921997
19972002
20022007
20072012
Source: U.S. Census Bureau, 2004, 2009, and 2014 American Community Survey; Black race.
10
25%
19%
11%
PROFESSIONAL/SCIENTIFIC/
TECHNICAL SERVICES
8%
7%
TRANSPORTATION/WAREHOUSING
6%
RETAIL TRADE
CONSTRUCTION
5%
ARTS/ENTERTAINMENT/RECREATION
5%
REAL ESTATE/RENTAL/LEASING
3%
EDUCATIONAL SERVICES
3%
ACCOMODATION/FOOD SERVICES
2%
FINANCE/INSURANCE
2%
INFORMATION
1%
WHOLESALE TRADE
1%
MANUFACTURING
1%
Source: U.S. Census Bureau, Survey of Business Owners, majority-Black-owned businesses, 2012 (information released in 2015).
11
HOUSEHOLD
INCOME
African-Americans have shown steady and at times significant income
growth in certain brackets over the last decade: The share of those
households with an income under $25,000 declined from 43% in 2004 to
37% of the total African-American population in 2014. For the $25,000$50,000 bracket, the decline was from 28% to 26%. Meanwhile, the share
of households with annual incomes from $50,000-$75,000 and $75,000$100,000 increased from 15% to 16% and from 7% to 9%, respectively. The
share of households with annual incomes over $100,00 increased from
7% to 12%. These figures are not inflation-adjusted, but comparisons with
the broader population clarify the picture. The percentage increase in the
number of African-American households making $50,000 or more per year
has been greater for African-Americans than it has been for the nation as
a whole. From 2004 to 2014, the number of Black households with annual
incomes between $50,000 and $75,000 increased 18%, compared with 2%
for the total U.S. During the same period, the number of Black households
earning between $75,000 and $100,000 per year increased 35%, compared
to 16% for the total U.S., and the number of Black households earning
$100,000 or more increased 95%, compared to 66% for the total U.S.
Meanwhile, the number of Black households in the up to $25,000 income
bracket decreased 4% as compared to an 11% decrease for the nation, and
the number in the $25,000 to $50,000 income bracket increased by 3%, as
compared to a decrease of 9% for the nation as a whole.
10%
8%
12%
15%
16%
27%
$100,000
9%
$75,000$99,999
$50,000$74,999
26%
$25,000$49,999
$0$24,999
43%
40%
37%
2004
2009
2014
Source: U.S. Census Bureau, 2004, 2009, and 2014 American Community Survey; Black race.
12
13
SECTION II
VIRAL EMPOWERED PERSUADERS
A VIRAL VANGUARD
Led by tech-savvy Millennials who regard and use technology and social
media almost as extensions of their personal identity, African-Americans have
become adept at using digital platforms and apps to communicate with each
other and the world around them. Although Black Millennials under-index
for the percentage of leisure time spent on social networking sites (8%),
they over-index for the actual number of hours spent. Fifty-five percent of
Black Millennials say they spend an hour or more daily on social networking
sites, which is 11% higher than the total Millennial population. Additionally,
29% of Black Millennials say they spend three or more hours daily on
social networking sites, an amount that is 44% higher than that of the total
Millennial population.
14
55%
OF BLACK
MILLENNIALS SAY
THEY SPEND
AN HOUR OR
MORE DAILY
1+ HOURS
3+ HOURS
55%
29%
49%
20%
111
144
ON SOCIAL
AFRICAN-AMERICANS 35+
28%
10%
26%
8%
NETWORKING SITES
INDEX
108
133
INDEX
15
AFRICAN-AMERICAN
MILLENNIALS (1834)
84%
AFRICAN-AMERICANS
(35+)
TOTAL POPULATION
(35+)
72%
85%
56%
80%
58%
YOUTUBE
57%
48%
40%
45%
46%
41%
38%
32%
48%
55%
35%
42%
GOOGLE+
41%
42%
28%
30%
55%
35%
SNAPCHAT
36%
22%
20%
21%
15%
TUMBLR
24%
12%
9%
13%
8%
11%
6%
16
SOCIAL MEDIA IS
DRIVING CHANGE
In addition to interacting on social media for maintaining relationships
with colleagues, family, and friends, or for engaging with products
and celebrities, African-Americans, particularly Millennials, have
elevated the platform to a usage level far beyond just communicating,
entertainment and shopping. They are using social media to raise
awareness of the situation of the Black community in American society.
The grassroots #BlackLivesMatter movement, which began in 2012,
has since become an ideological and political organization, with the
goal of raising the national consciousness of social justice issues
facing the Black community.
62%
OF AFRICAN-AMERICAN
MILLENNIALS SAY THEY
WOULD RECOMMEND
A FINANCIAL PRODUCT
OR SERVICE IF THEY
LIKE IT
SOCIAL SPOTLIGHT
In the wake of social-issue protests earlier this year, hip-hop artist Killer Mike offered an economic solution to help the
Black community. A hashtag #bankblack laid the foundation for a plan encouraging at least one million AfricanAmericans to deposit $100 in Black-owned banks in America. MTV News and BET News hosted a joint town hall to address
the issues and also offer possible solutions. Citizens Trust, an Atlanta-based bank, experienced an increase in deposits,
as 8,000 people opened new accounts for a total of about $800,000 in deposits. The CEO of the bank tweeted Killer Mike
to thank him for his contributions to beginning the dialogue that shifted the focus from disappointment to empowerment.
There were 23 Black-owned banks as of March 31, according to the U.S. Federal Reserve. According to Nielsen Scarborough,
African-Americans of all ages say they will recommend a financial product or service to someone else, and regularly read
financial publications.*
*Source: Nielsen Scarborough USA+ 2015 Release 2 (August 2014October 2015).
17
MOBILE
TRENDSETTERS
CLOSING THE (MOBILE) DIGITAL DIVIDE
The digital divide for multicultural consumers with regard to mobile internet
access has been closing rapidly in recent years, and in 2015, African-Americans
are leading the way: 91% of African-Americans say they access the internet via a
smartphone or broadband, up from 86% the year prioroutpacing other racial/
ethnic groups by six percent. African-Americans are not only showing the largest
increase in mobile internet access, but they are the second-largest multicultural
group for mobile device ownership, with 91% owning smartphones (compared
to 94% of Asian-Americans, and 90% of Hispanics).*
That said, penetration is lower for both computer and tablet ownership among
African-Americans. Forty-five percent of African-Americans own desktop or
laptop computers (compared to 79% of Whites), and 38% of African-Americans
own tablets (compared to 47% of Whites). As noted, mobile devices (particularly
smartphones) have been the catalysts in bringing a heightened awareness of
social issues via social media, highlighting the devices importance to AfricanAmericans. Recognizing that importance, marketers looking to connect with
African-Americans, particularly Millennials, must include mobile as an essential
element in their strategic plans.
*Source: Nielsen Mobile Insights, April 11, 2016June 30, 2016. Mobile device penetration among
mobile subscribers 13+.
AUGUST 2016
90%
93%
86%
91%
93%
95%
96%
97%
91%
93%
3%
CHANGE
6%
CHANGE
2%
CHANGE
1%
CHANGE
2%
CHANGE
Source: Nielsen National People Meter (NPM), based on average scaled installed August 15, 2016 versus August 15, 2015 among households with one or
more smartphone or high speed internet connection.
18
TOTAL
MILLENNIALS
(1834)
INDEX
AFRICANAMERICANS
(35+)
TOTAL
POPULATION
(35+)
INDEX
33%
125
29%
24%
119
65%
105
57%
54%
105
49%
106
37%
32%
115
41%
120
36%
29%
125
33%
131
28%
19%
145
54%
108
67%
105
58%
68%
100
51%
53%
96
19
VIGOROUS
VIDEO CONTENT
CONSUMERS
African-Americans are vigorous viewers of television and video,
particularly live TV, with Millennial Blacks spending almost 33 hours per
week watching live plus time-shifted TV, a rate 61% higher than their
total market counterparts and African-Americans 35 to 49 spending 48
hours per week, a rate 49% higher than their total market counterparts.
The same holds true for watching video on PCs and smartphones, which
Black Millennials watch at rates 48% and 23% higher, respectively, than
their total market counterparts, and African-Americans ages 35 to 49
watch at rates 45% and 32% higher, respectively.
TOTAL
MILLENNIALS
(1834)
LIVE + DVR/TIME-SHIFTED TV
32:51
DVR/TIME-SHIFTED TV
INDEX
AFRICANAMERICANS
(3549)
TOTAL
POPULATION
(3549)
INDEX
20:24
161
47:58
32:07
149
2:25
2:22
102
4:20
4:22
99
AM/FM RADIO
11:00
10:54
101
14:00
13:40
102
DVD/BLU-RAY DEVICE
0:59
0:59
100
1:10
1:05
108
GAME CONSOLE
3:33
3:44
95
1:22
1:30
91
MULTIMEDIA DEVICE
1:54
2:19
82
1:31
1:44
88
INTERNET ON A PC
8:29
6:28
131
9:10
8:20
110
VIDEO ON A PC
3:47
2:33
148
3:12
2:12
145
APP/WEB ON A SMARTPHONE
13:28
14:23
94
14:56
14:34
103
VIDEO ON A SMARTPHONE
0:50
0:41
123
0:34
0:25
132
Sources: Nielsen Live+DVR/Time-shifted TV, DVR/Time-shifted TV, DVD/Blu-Ray Device, Game Consoles, Multimedia Devices December 28, 2015
March 27, 2016 via Nielsen NPOWER/National Panel; Radio, March 26, 2015March 23, 2016 via RADAR 129; PC, January 1, 2016March 31, 2016 via
Nielsen Netview and Nielsen VideoCensus; Mobile, January 1, 2016March 31, 2016 via Nielsen Electronic Mobile Measurement.
20
RADIO
African-American adults have different preferences when it comes to
AM/FM radio. Black Millennials favor Urban Contemporary (Hip-Hop)
while African-Americans 35 and older prefer Urban Adult Contemporary
(R&B). Worthy of call out is the multi-year growth of the Urban
Contemporary format among both demo groups. From 20122016, the
number of Urban Contemporary stations increased 23% (178 versus
219, respectively) while the number of Rhythmic Contemporary Hit
radio stations decreased 3% during the same time period (213 and 206,
respectively). Radio stations playing hip-hop have seen listenership
increase at the expense of more pop oriented formats like
Rhythmic Contemporary Hit radio.
Q2
2012
Q2
2013
Q2
2014
Q2
2015
Q2
2016
21.8%
21.1%
22.0%
21.0%
21.1%
URBAN CONTEMPORARY
30.6%
32.3%
32.1%
33.7%
33.3%
15.6%
14.2%
12.5%
11.1%
10.4%
URBAN OLDIES
0.3%
0.6%
0.8%
0.6%
0.8%
COMBINED TOTAL
68.4%
68.3%
67.4%
66.5%
65.6%
AFRICAN-AMERICANS (35+)
Q2
2012
Q2
2013
Q2
2014
Q2
2015
Q2
2016
36.9%
36.8%
36.6%
35.2%
35.1%
URBAN CONTEMPORARY
12.1%
12.2%
12.7%
13.8%
14.5%
5.6%
5.3%
5.1%
5.4%
5.1%
URBAN OLDIES
0.8%
1.5%
2.0%
1.4%
1.5%
COMBINED TOTAL
55.4%
55.9%
56.4%
55.8%
56.2%
21
TV
AFRICAN-AMERICANS ARE MOVING AHEAD
IN CREATING AND ACTING, AS WELL AS
WATCHING
When it comes to leisure activities, watching TV and movies is the
primary way that African-Americans claim they spend their time, with
Millennial Blacks over-indexing their total market counterparts by 20%.
Overall, Black viewers are helping to elevate up-and-coming Black
celebrities and programs, which are at the forefront of a trend towards
diversity in television, movies and other media forms. In fact, 62% of
Black Millennials agree that they feel really good about seeing celebrities
in the media who share their ethnic background.*
*Source: Nielsen Scarborough USA+ 2015 Release 2 (August 2014October 2015).
62%
OF BLACK MILLENNIALS
AGREE THAT THEY FEEL
REALLY GOOD ABOUT
SEEING CELEBRITIES
IN THE MEDIA WHO
SHARE THEIR ETHNIC
BACKGROUND.
35+
AFRICANAMERICAN
AFRICANAMERICAN
SHARE INDEXED
TO TOTAL 35+
SHARE
TV & MOVIES
21%
92
134
12%
79
16%
110
INTERNET
16%
106
11%
69
SOCIAL ACTIVITIES
17%
120
9%
75
VIDEO GAMES
13%
107
8%
85
SOCIAL NETWORKING
5%
88
6%
81
MUSIC
9%
123
4%
106
READING
4%
76
AFRICANAMERICAN
AFRICANAMERICAN
SHARE/INDEXED
TO TOTAL 1834
SHARE
22%
120
21%
22
23
NETWORK
AFRICAN-AMERICAN
MILLENNIALS (1834)
AVERAGE
AUDIENCE RATING
AFRICAN-AMERICAN
MILLENNIALS (1834)
VIEWERS
(000)
EMPIRE
FOX
25.6
2,572
VH1
11.5
1,157
VH1
10.8
1,091
VH1
10.7
1,077
VH1
9.4
950
VH1
8.9
895
VH1
7.9
795
AMC
7.2
728
ABC
7.0
710
SCANDAL
ABC
6.7
678
PROGRAMS
Read as: The average audience rating for Empire was 25.6% of African-Americans, 1834.
Source: Nielsen NPOWER, Persons 1834, Persons 3599, Broadcast and Cable, Live +7 Days, TV with Digital, TV with Video On Demand
(VOD), September 21, 2015June 26, 2016, does not include syndicated programs, specials, sports or programs with less than four telecasts.
NETWORK
AFRICANAMERICANS (35+)
AVERAGE
AUDIENCE RATING
AFRICANAMERICANS (35+)
VIEWERS
(000)
EMPIRE
FOX
32.4
6,378
SCANDAL
ABC
13.2
2,607
ABC
12.7
2,502
OWN
11.6
2,295
ROSEWOOD
FOX
11.0
2,165
OWN
10.0
1,969
NBC
7.9
1,566
BET
7.9
1,557
BRAVO
7.5
1,491
VH1
7.0
1,384
PROGRAMS
Read as: The average audience rating for Empire was 32.4% of African-Americans, 35+.
Source: Nielsen NPOWER, Persons 1834, Persons 3599, Broadcast and Cable, Live +7 Days, TV with Digital, TV with Video On Demand
(VOD), September 21, 2015June 26, 2016, does not include syndicated programs, specials, sports or programs with less than four telecasts.
24
Sports programs, specifically Super Bowl 50 (CBS) and the NBA Finals
game series (ABC), along with an Empire holiday special, dominated the top
10 sports and specials for both African-American Millennials and AfricanAmericans 35 and over. There is little difference between the age groups when
it comes to top specials, with eight of the 10 being the same.
NETWORK
AFRICAN-AMERICAN
MILLENNIALS (1834)
AVERAGE
AUDIENCE RATING
AFRICAN-AMERICAN
MILLENNIALS (1834)
VIEWERS
(000)
SUPER BOWL 50
CBS
32.0
3,218
FOX
22.3
2,242
ABC
17.2
1,732
FOX
15.7
1,581
ABC
15.6
1,573
ABC
14.3
1,444
ABC
14.0
1,406
ABC
13.0
1,309
CBS
13.0
1,308
ABC
12.5
1,264
PROGRAM
Read as: The average audience rating for Super Bowl 50 was 32% of African-Americans, 1834.
Source: Nielsen NPOWER, September 21, 2015June 26, 2015, Season to Date. Broadcast and Cable. Live+7. Excluding Repeats. Including only
Specials with one telecast and a rating of 1.0 or higher. Excluding telecasts with less than 10 minutes duration.
NETWORK
AFRICANAMERICANS (35+)
AVERAGE
AUDIENCE RATING
AFRICANAMERICANS (35+)
VIEWERS
(000)
SUPER BOWL 50
CBS
41.5
8,162
FOX
27.7
5,459
ABC
25.4
5,004
FOX
23.9
4,703
CBS
23.0
4,520
NBC
22.9
4,511
ABC
20.6
4,058
ABC
20.2
3,987
FOX
19.0
3,740
ABC
18.8
3,702
PROGRAM
Read as: The average audience rating for Super Bowl 50 was 41.5% of African-Americans, 35+.
Source: Nielsen NPOWER, Persons 1834, Persons 3599, Broadcast, Live +7 Days, TV with Digital, TV with Video On Demand (VOD),
September 21, 2015June 26, 2016, does not include syndicated programs.
25
MORE DIVERSE
CONTENT DRIVES
INCREASED AD
SPEND
TV captured the largest share of Black advertising spend in 2015, which
is up 11% versus 2011. In fact, in the four-year period between 2011 and
2015, broadcast TV ad spend focused on Black audiences increased
255% and syndicated TV ad spending increased 55%. The reason? In the
most recent broadcast seasons, specifically 2014-2015 and 2015-2016,
broadcast TV drew a larger number of Black viewers due to increased
diversity of primetime programs on mainstream networks that featured
predominantly Black casts and/or leading Black actors. Dramas such as
Empire, Rosewood, Scandal, How to Get Away with Murder; sitcoms like
Black-ish and specials like The Wiz LIVE! have contributed to a significant
shift in ad dollars reaching Black audiences, further evidence of the wide
reach of Black cultural influence.
Advertising spend focused on Black audiences (ad dollars placed
on programming that has greater than 50% Black viewers) through
syndicated and broadcast TV, increased slightly in 2015 versus 2014,
and slightly decreased for spot radio and cable TV during the same time
period. Cable TV represents the largest share of dollars in spend focused
on Black audiences at $1.3 billion in 2015. And in light of the recent
broadcast TV ad dollar boost toward Black audiences, cable TV still
offers niche, audience-segmented programming for African-American
viewers of all ages.
255%
26
55%
17%
0%
CABLE
TV
6%
BROADCAST
TV
3%
SYNDICATED
TV
DEFINITONS OF
AFRICAN-AMERICAN COVERAGE
Broadcast: Ads placed on programs aired on
TV networks such as CBS, ABC, NBC, FOX,
The CW, etc. where the composite AfricanAmerican viewing audience is greater than
50% compared to the total viewing audience.
Cable: Ads placed on programs aired on TV
networks such as Bounce TV, BET, Centric,
TV One, Up, OWN, VH1, etc. where the
composite African-American viewing audience
is greater than 50% compared to the total
viewing audience.
Syndicated TV: Ads placed on programs where
the composite African-American viewing
audience is greater than 50% compared to the
total viewing audience.
Spot radio: Ads placed on local radio stations
which have African-American targeted formats
such as urban, gospel, smooth jazz, Black
talk/news, etc.
2015
$199,658
104,474
$203,506
100,968
$547,564
SPOT RADIO
$545,200
$100,243
BROADCAST TV
$258,460
$1,444,258
CABLE TV
$1,316,813
15,297
$104,473,814
TELEVSION
(BROADCAST AND CABLE)
$100,968,232
$5,759,035
RADIO
$5,947,802
$3,909,069
OUTDOOR
$4,191,512
$11,554,387
NEWSPAPER
$9,867,719
$15,895,480
MAGAZINE
COUPON
2015
$15,297,102
$337,698
$255,882
BUSINESS TO BUSINESS
$2,063,641
$1,880,676
27
GAMING ATTITUDES
ARE COMPETITIVE
African-American Millennials claim to spend 9% of their leisure time
on video games, versus 12% for the total Millennial population, while
African-Americans 35 and older spend 13% of their leisure time on video
games. Although some African-Americans spend less of their free time
on video games, they are often early adopters and influencers among
gamers. African-Americans of all ages over-index against their total
population counterparts for agreeing that they are the first to buy the
newest games or gaming systems, that their friends ask their opinion
about video games, and that all of their friends are gamers. Interestingly,
they are more social gamers: African-Americans under-index for playing
single player games and over-index for playing video games for the
competition. With increased internet access and a large representation
on multiple social media networks, Black gamers connect and play
games with others who are not necessarily living in the same household.
TOTAL
MILLENNIALS
(1834)
TOTAL
AFRICAN-AMERICAN
(3549)
TOTAL
POPULATION
(3549)
34%
11%
11%
33%
21%
17%
28%
15%
11%
22%
11%
9%
28
TOTAL POPULATION
(1834)
AFRICAN-AMERICANS
(35+)
TOTAL POPULATION
(35+)
81%
60%
65%
63%
64%
46%
GAMING CONSOLES,
HANDHELDS,
COMPUTERS
53%
40%
SMARTPHONES
39%
43%
37%
TABLETS
35%
48%
29%
34%
DIGITAL/STREAMING
MEDIA PLAYERS AND
GAMING MICROCONSOLES
29
30
SECTION III
CONSUMPTION GAINS OUTPACE THE
TOTAL POPULATION
BUYING POWER
GAINS AND STATE
DISTRIBUTION
In 2015, African-Americans controlled $1.2 trillion in buying power,
8.6% of the nations total, and a 21% increase over 2010, according to
the Selig Center for Economic Growth. Black buying power is expected
to grow 21.6% between 2015 and 2020 (compared with 20.3% growth for
the total U.S.), and to reach just over $1.4 trillion by 2020. The gains in
Black buying power reflect not only African-Americans population growth,
but also their increasing education and entrepreneurship, as well as their
advancing into their peak earning years.
31
The states with the largest African-American buying power in 2015 were
New York ($109 billion), Texas ($106 billion), California ($84 billion),
Georgia ($81 billion), Florida ($80 billion), Maryland ($69 billion),
North Carolina ($55 billion), Virginia ($49 billion), Illinois ($49 billion)
and New Jersey ($42 billion), also according to Selig. These 10 states
represent 62% of African-American buying power. The same states, with
the exception of Georgia and Maryland, ranked (by buying power) among
the top markets for all consumers. With the African-American market
spread widely throughout the U.S., it is an attractive customer segment
nationwide. Tremendous opportunities for geo-targeted campaigns over
the next few years are especially promising in Texas, the state with the
second-largest Black buying power and the highest projected growth rate
of the top 10 states, at 32%.
TEXAS
GEORGIA
22%
FLORIDA
22%
MARYLAND
22%
NORTH CAROLINA
22%
20%
NEW YORK
19%
VIRGINIA
17%
CALIFORNIA
16%
NEW JERSEY
ILLINOIS
14%
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, 2015.
32
FEELING PROUD,
LOOKING GOOD AND
SPENDING MORE
Personal image is highly valued and is regarded with an immense sense of
pride in the African-American community. Consumer product companies
have long been aware of the dedicated consumption of personal
healthcare items by Black consumers. African-Americans of all ages show
higher buying rates than non-African-Americans for womens fragrances,
grooming aids, personal soap and bath needs, deodorant, sanitary
protection, family planning, and feminine hygiene. African-Americans ages
35 and older also over-index on mens toiletries and baby needs, while
those ages 1834 also over-index on oral hygiene, skin-care preparations
and hair care.
The long history of personal care spending has led many consumer
products companies to offer highly-developed lines of popular AfricanAmerican cosmetic, fragrance, and hair-care products that cater to the
wants and needs of African-American men and women. While the wide
array of product offerings for these items result in African-Americans
having a lower index than the total non-African-American market on
general skin care preparation and hair-care product categories (87 index
and 91 index, respectively), they spend a higher percent of dollars in the
booming African-American health and beauty aid categories.
33
AFRICAN-AMERICANS
(35+) INDEXED TO
NON-AFRICANAMERICANS (35+)
AFRICAN-AMERICANS
INDEXED TO
NON-AFRICANAMERICANS
WOMENS FRAGRANCES
115
115
110
GROOMING AIDS
113
105
105
146
145
143
DEODORANT
110
105
107
MENS TOILETRIES
98
121
128
ORAL HYGIENE
107
98
101
SANITARY PROTECTION
117
101
103
109
84
87
HAIR CARE
116
85
91
FEMININE HYGIENE
116
103
102
158
175
153
Read as: African-American Millennials, 1834, spend 15% more on womens fragrances than their non-African-American counterparts.
Source: Nielsen Homescan, 52 weeks ending December 26, 2015.
34
35
COOKING FROM
SCRATCH IS VALUED,
BUT SPEED
AND EFFICIENCY
ARE KEY
Traditional cultural recipes have been adapted over time, but their
primary components have endured and are still reflected in the
grocery-buying habits of African-Americans today: These shoppers
buy meat (particularly a variety of pork and poultry cuts), seafood,
greens, cabbage, and green beans, at a higher rate than nonAfrican-Americans. Black Millennials and older Black generations
have similar purchasing patterns for fresh food items, however,
there are a few items that standout for the younger shoppers
when compared to total African-Americans. Black Millennials buy
56% more fresh green beans and 8% more fresh chicken than total
African-American shoppers.
AFRICAN-AMERICANS OF ALL
AGES HAVE SIMIL AR PURCHASING
PATTERNS FOR FRESH FOOD ITEMS
36
AFRICAN-AMERICANS
(35+) INDEXED TO
NON-AFRICANAMERICANS (35+)
TOTAL
AFRICAN-AMERICANS
INDEXED TO
NON-AFRICANAMERICANS
TOTAL PERISHABLES
89
102
100
99
100
85
156
90
116
FRESH CABBAGE
90
101
117
FRESH GREENS
94
101
123
86
103
108
91
102
81
76
104
122
105
99
114
101
100
125
108
99
119
87
102
118
FRESH SEAFOOD
81
103
117
Read as: African-American Millennials buy 56% more fresh green beans than the total non-African-American Millennial population.
Source: Homescan Total Shopper View, 52 weeks ending December 26, 2015.
37
AFRICAN-AMERICANS
(35+) INDEXED TO
NON-AFRICANAMERICANS (35+)
TOTAL
AFRICAN-AMERICANS
INDEXED TO
NON-AFRICANAMERICANS
BABY FOOD
128
134
133
CANNED SEAFOOD
117
107
106
SHORTENING/OIL
131
125
126
SPICES/SEASONING/EXTRACT
118
135
130
SUGAR/SUGAR SUBSTITUTES
123
115
118
BAKING MIXES
109
87
93
134
134
131
136
127
132
BOTTLED WATER
119
114
119
144
122
121
98
108
107
TABLE SYRUPS/MOLASSES
136
98
106
109
85
90
106
94
93
105
92
91
151
139
137
FROZEN VEGETABLES
112
114
113
Read as: African-American Millennials spend 28% more on baby food than their non-African-American counterparts.
Source: Nielsen Homescan 52 weeks ending December 26, 2015. Categories chosen because of highest index.
38
AFRICAN-AMERICAN
MILLENNIALS (1834)
INDEXED TO
TOTAL POPULATION
(1834)
AFRICANAMERICANS
(35+)
AFRICAN-AMERICANS
(35+) INDEXED TO
TOTAL POPULATION
(35+)
103
62%
97
98
72%
98
95
75%
97
105
50%
107
116
44%
117
39
HIGH-FREQUENCY
SHOPPING CHANNELS
When it comes to how African-Americans shop, those ages 35 and older shop
23% more frequently their younger counterparts, while Black Millennials
have a 14% higher purchase size (dollar volume) than older consumers. As
Millennials spend more but make less trips to the store, they may be looking
for shopping experiences that streamline their busy life styles.
Convenience and price often dominate African-Americans shopping
decisions, so it is no surprise that while they under-index for the amount
spent in stores overall, they collectively over-index against the total
population for shopping at convenience stores, gas and service stations,
and dollar stores. This is not always about preference, as in many AfricanAmerican neighborhoods, these are the closest store options available. Black
Millennials also over-index against their total population counterparts for
shopping at drug stores and dollar stores at a significant rate (54% more and
113% more, respectively).
40
97
87
TOTAL OUTLETS
89
83
CONVENIENCE STORES
AFRICAN-AMERICANS 35+
INDEXED TO
NON-AFRICAN-AMERICANS 35+
91
114
77
TOTAL AFRICAN-AMERICANS
INDEXED TO
NON-AFRICAN-AMERICANS
86
GAS STATIONS
119
80
81
SERVICE STATIONS
118
154
93
101
DRUG STORES
213
170
172
DOLLAR STORES
GROCERY/DISCOUNT
SUPER CENTERS
84
80
82
GROCERY STORES
82
76
77
WAREHOUSE CLUBS
72
63
67
41
PURCHASE
INFLUENCERS
African-Americans of all ages agree that media advertising across
platforms provides them with meaningful or useful information. When
looking for information about bargains, most African-Americans think
TV provides the most meaningful information, and their secondary
sources show the distinction among the age groups. After TV, AfricanAmerican Millennials turn to the internet for information about bargains,
while African-Americans age 35 or older turn to newspapers.
Compared to their total population counterparts, both African-American
Millennials and African-Americans 35 or older are more likely to agree
that advertising on mobile phones provides useful information about
bargains.
AFRICAN-AMERICAN
MILLENNIALS (1834)
INDEXED TO
TOTAL POPULATION
(1834)
AFRICANAMERICANS
(35+)
AFRICAN-AMERICANS
(35+) INDEXED TO
TOTAL POPULATION
(35+)
ADVERTISING IN MAGAZINES
39%
122
41%
113
ADVERTISING IN NEWSPAPERS
39%
102
53%
98
142
24%
162
ADVERTISING ON RADIO
40%
114
39%
116
ADVERTISING ON INTERNET
43%
110
36%
117
ADVERTISING ON TV
48%
120
55%
124
42
43
AFRICAN-AMERICAN
MILLENNIALS (1834)
INDEXED TO
TOTAL POPULATION
(1834)
AFRICANAMERICANS
(35+)
AFRICAN-AMERICANS
35+ INDEXED TO
TOTAL POPULATION
(35+)
147
29%
159
129
37%
135
100
62%
102
113
53%
114
104
41%
114
113
28%
122
114
48%
124
I ONLY BUY FOOD ITEMS THAT ARE NAME-BRAND, NOT GENERIC BRANDS
47%
136
37%
127
44
45
SECTION IV
REACHING HIGHERBUILDING ON RECENT GAINS
BUILDING ON THE
LEGACY OF AMERICAS
FIRST AFRICANAMERICAN
PRESIDENCY
As eight years of Barack Obamas historic presidency come to a close,
African-Americans are invested in continuing to pursue economic and
political gains, as well as advancing equality and rallying awareness
about social justice issues. African-American Millennials, in particular,
have been leaders in leveraging social media, mobile, and live video
streaming to take control of the social issues narrative and to
rally growing support through grassroots efforts from many who
are witnessing their concerns and grievances with much more
immediacy than before. This utilization of technology to effect social
and civic change is a manifestation of growing, grassroots political
involvement in the African-American community.
In 2012, for the first time in American history, African-Americans
had the highest rate of voter registration and election turn out of all
races, surpassing non-Hispanic Whites in election turnout at 66%
versus 64%. Just under 29 million African-Americans over the age
of 18 are eligible to vote; they represent 13% of U.S. eligible voters
and are growing at a rate of 3.7% every two years.
Black voter turnout has steadily increased over the last three
decades, and because the right to vote was so hard-won, many in
the Black community view not voting as irresponsible.
46
IN 2012, FOR THE FIRST TIME IN AMERICAN HISTORY, AFRICANAMERICANS HAD THE
61%
59%
66%
66%
62%
65%
BLACK NON-HISPANIC
WHITE NON-HISPANIC
64%
60%
ASIAN NON-HISPANIC
57%
54%
HISPANIC
53%
50%
52%
48%
47%
1992
45%
45%
44%
43%
44%
1996
2000
2004
48%
47%
2008
2012
Source: U.S. Census: Historical Reported Voting Rates, Table A-1. Hispanic includes those of all races who identify as Hispanic.
72%
62%
66%
68%
60%
56%
47%
WHITE
BLACK
VOTED
AMERICAN INDIAN/
ALASKAN NATIVE
57%
47%
ASIANAMERICAN
TWO OR
MORE RACES
Source: U.S. Census Bureau, 2012 American Community Survey, 1-year estimates.
47
ELIGIBLE VOTERS
In 2014, 55% of eligible Black voters were female, and for every age
group, there were significantly more Black females eligible to vote
than males. Black females were also more likely to register (76%) and
to vote (70%) in the 2012 presidential election than were Black males
(69% and 61%, respectively). For both genders, the older the age group
(up to age 75), the more likely the person was to register and to vote.
In total, 73% of eligible African-Americans registered to vote in 2012
and 66% voted, representing the highest rates of registration and voter
turn-out of all the races.
50%
40%
64%
54%
65%
75%
68%
80%
74%
81%
76%
76%
61%
72%
FEMALE
63%
1822 YEARS
53%
74%
2334 YEARS
66%
77%
3544 YEARS
71%
80%
45-64 YEARS
76%
81%
6574 YEARS
77%
80%
75+ YEARS
REGISTERED
70%
72%
VOTED
Source: U.S. Census Bureau, 2012 American Community Survey, 1-year estimates.
48
HEALTHCARE GAINS
One of the undeniable legacies of the last eight years is the increase in
insurance coverage for the Black community: 2.3 million African-Americans
(ages 1864) gained health insurance coverage through the Affordable Care
Act (ACA), lowering the uninsured rate among African-Americans by 9.2
percentage points, from 22.4% in the first quarter of 2012 to 13.2% in the
first quarter of 2015. Additionally, more than 500,000 African-American
young adults between the ages of 19 and 26 who would otherwise have
presumably gone uninsured gained coverage under their parents plan prior
to 2012, and 7.8 million African-Americans with private insurance gained
access to preventive services like mammograms or flu shots with no co-pay
or deductible, according to the U.S. Department of Health and Human
Services.
However, 1.4 million African-Americans living in states that have not
expanded Medicaid eligibility under the ACA fall into the coverage gap
where they earn too much to qualify for Medicaid, but not enough to
qualify for subsidized insurance on the federal health care exchanges. It
is projected by the Urban Institute that if changes are made in the ACA,
resulting in all states participating and the coverage gap being reduced,
that the disparity in coverage between Whites and African-Americans
would drop to just 2.6 percentage points.
49
OPTIMISM ABOUT
THE FUTURE
According to a March 2016 Harris Poll Survey, despite what many
perceive as a growing lack of faith in the system as a whole, AfricanAmericans are more optimistic than any other segment about the future
of the country: 49% of African-Americans say the country is headed
in the right direction versus only 45% of Hispanics, 42% of AsianAmericans and 23% of Whites.
While there is optimism about the future, many feel there is still
more work to be done. According to a July 2016 Harris Poll Survey,
significant percentages of African-Americans say there is a need in their
communities for more affordable housing (53%), affordable quality
healthcare (52%), affordable childcare (42%), affordable college (42%)
and affordable healthy food (39%).
Nevertheless African-Americans, particularly young African-Americans,
over-index for being aspirational: 67% of all African-Americans and 74%
of Black Millennials agree that they often find themselves in a leadership
position (13% and 14% higher than the total population, respectively)
and 41% of all African-Americans and 48% of Black Millennials agree
that they strive for a high social status (35% and 21% higher than the
total population, respectively).
This optimism translates to the workplace, as 60% of all AfricanAmericans and 73% of Black Millennials say their goal is to make it
to the top of their profession (36% and 23% higher than the total
population, respectively). With increasing opportunities, societalleading civic participation, and expanding power of the wallet, AfricanAmericans, particularly the empowered Millennial generation, will
continue to shape American society in new and progressive ways for
many years to come.
50
51
CONCLUSION
African-Americans are a unique and vital multicultural consumer
group in the U.S. With rich, deeply rooted traditions, Black consumers
have been the drivers of mainstream cultural influence in a myriad of
industries. The Diverse Intelligence report series on African-American
consumers has highlighted the impact of this influential consumer
segment and strives to assist advertisers and manufacturers alike to
understand how to effectively market their products and services to
African-American consumers.
As business executives look for opportunities to grow their businesses
and gain market share, it is critical to measure and evaluate the
opportunities. As the population of the U.S. becomes more ethnically
diverse, the complexity of the effort has grown. To help close the gap
and give insight with regard to how to address the needs of the growing
diverse base, Nielsen has provided these reports to better illustrate
the unique qualities of the African-American community, the business
opportunities that exist, and the best methods for a productive and
successful connection.
These reports have not only highlighted the unique media consumption
and purchasing habits of African-Americans, but they have also
covered important issues that reflect the fabric of the African-American
community. By exploring African-American consumers holistically, these
reports serve a compass for detailed campaigns to better reach and
engage them in ways that are memorable and impactful.
52
METHODOLOGIES
Insights used in this report were sourced from the following Nielsen
analytical tools and solutions. All tools offer their own representative
levels of consumer insights and behavior across African-American, nonHispanic White and/or total population respondents (based on data
collection, survey/panel design and/or fusion approaches).
Homescan Panel Data: The Homescan national panel consists of
a randomly dispersed sample of households that is intended to be
representative of, and projectable to, the Total U.S. market. Panel members
use handheld scanners to record items with a UPC code purchased from
any outlet. For Nielsen Total Homescan Shopper View, panelists scan from
a code book for fresh items rather than a UPC Code. Data for this report
is based on Homescan panel data from the following period: 52 weeks
ending, December 26, 2015.
Nielsen Scarborough USA+ 2014 Release 2, GfK/MRI Attitudinal
Insights Module August 2014October 2015: (Base: Age of respondent
summaries: Adults 18+ Projected 242,977,984, Respondents: 203,
921) By integrating 400+ attitudinal statements and segmentations
with Nielsen Scarboroughs syndicated data set, this analysis reflects
consumer psychographics in the studied categories.
Nielsen NPOWER: Audience estimates based on a nationally
representative panel of people whose televisions are metered with
a device called the National People Meter (NPM), which passively
detects exposures to codes embedded in content. A comprehensive
questionnaire is also collected of the panel.
Nielsen 360 Gaming Report, 2015
Data collection:
Annual data for the Nielsen 360 Gaming Report is collected via
consumer online surveys in Q1 of each year* using Nielsens proprietary,
high-quality ePanel in the United States. (*Previous survey methodology
fielded two waves, Q4 and Q1 to capture pre and post holiday metrics.)
Groups Sampled:
Teens/adults Age 13+: 2000+ interviews among 50% male/50% female
sample.
Representativity:
Post-survey, raw data is weighted to ensure representation of the U.S.
general population based on U.S. Census data.
53
54
MANAGING EDITORS:
CONTRIBUTORS:
ETHNIFACTS:
Guy Garcia
Mike Lakusta
Arwen Zemborain
ABOUT NIELSEN
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