Understanding the Data, Celebrating AAPI Month, and Advancing DE&I Efforts
In the spirit of AAPI (Asian American and Pacific Islander) month, brands and media companies have a unique opportunity to tap into the vast potential of the Asian and Asian American market.
According to Pew Research, Asian Americans are the fastest-growing racial or ethnic group in the United States, with their population projected to reach 35 million by 2060. Asian American buying power experienced a remarkable surge of 314% between 2000 and 2019, surpassing the growth in purchasing power observed across all other racial and ethnic categories during the same timeframe, as reported by a Nielsen study.
This dynamic consumer segment represents a significant force in brand conversations and possesses considerable purchasing power. By understanding their preferences, embracing diversity, equity, and inclusion (DE&I), and crafting targeted marketing strategies, businesses can not only drive revenue growth but also foster a more inclusive industry. In this article, we delve into the data, statistics, strategies and best practices for effectively engaging with the Asian segment.
Unlocking the Asian and Asian American Market Insights
Engagement Labs' latest findings provide valuable insights into the Asian and Asian American consumer segment in the United States. During the period of 12 months ending April 2023, 1,469 Asian respondents ages 13 to 69 participated in a study of consumers’ daily conversations, alongside a total public sample size of 39,865 individuals.
Amplified Brand Conversations
Asian and Asian American consumers talk a lot about brands! These consumers engage in over 500 million brand conversations each week. Added to this, Asian consumers' rate of conversation is higher than the general population. On average, an Asian consumer discusses approximately 90 brands per week, representing a 16% increase compared to the general population. In particular, Asians are also more likely to talk about travel, technology, personal care/beauty, sports, and retail. These staggering figures underline the importance of recognizing and tapping into this highly engaged consumer base.
Most Talked-About Brands
Coca-Cola, Amazon, McDonald's, Walmart, and Apple emerge as the most talked-about brands among Asians. However, certain brands enjoy a significantly higher presence within the Asian segment compared to the general population. Amazon, Home Depot, T-Mobile, YouTube, Bank of America, Starbucks, and Adidas are prominent examples of brands that have successfully resonated in daily conversations among Asian American consumers. Understanding these preferences can provide valuable insights for marketers aiming to strengthen their presence within this segment.
It's crucial to leverage marketing efforts to enhance talkability, as consumer conversations influence roughly 19% of purchases, which includes discussions initiated by paid advertising. Our research indicates that a significant 25% of the impact of advertising on sales is driven by the brand's ability to prompt consumers to talk about it.
* Brands highlighted in blue have a much bigger presence among Asian Americans vs General Population.
Beyond brand conversations, hot topics and issues also surface as important conversation fodder among Asian Americans. In particular, school/education, traveling, and international news are key topics discussed -- at rates even higher than the general population. However, financial concerns and politics are less likely to be discussed compared to the general population. Recognizing these conversation patterns is crucial for crafting targeted marketing messages that align with the interests and values of Asian American consumers.
Digital marketing is a key way to generate brand conversation
Digital marketing is a key driver of brand conversations among Asians, with 30% of these conversations containing references to something seen online. Social media, brand websites, and internet ads emerge as the leading sources of media touchpoint. This highlights the need for brands and media companies to invest in digital strategies that resonate with the Asian American segment, leveraging social media platforms and targeted internet advertising.
Strategies for Successful Engagement
To tap into the Asian American market and drive DE&I efforts, brands and media companies can adopt the following strategies:
Leverage reliable data sources, such as Engagement Labs, to gain a comprehensive understanding of the Asian market. Analyze their preferences, brand interactions, and conversation patterns to inform marketing strategies.
Cultural Sensitivity and Authenticity
Acknowledge and respect the diversity within the Asian and Asian American community. According to Pew Research, only 16% call themselves Asian American as most prefer to use their specific ethnicities. Tailor marketing efforts to authentically represent their cultures, values, and experiences. Avoid stereotypes and tokenism, and instead celebrate the rich cultural diversity within this segment.
Consider language preferences and cultural nuances within the Asian and Asian American market. Implement multilingual campaigns, culturally relevant content, and translation services to enhance engagement and establish a stronger connection with the target audience.
Strategic Partnerships and Influencer Collaborations
Forge partnerships with Asian organizations, influencers, and community leaders to gain cultural insights, build trust, and co-create content. Collaborating with individuals who possess a deep understanding of the community will enable marketers to deliver more authentic and impactful campaigns.
Representation and Inclusivity
Prioritize diversity within the organization by actively recruiting and promoting Asian talent. Embrace a variety of perspectives and experiences, which will drive more effective engagement strategies and contribute to a more inclusive industry ecosystem.
Personalization and Targeted Marketing
Utilize data insights to personalize marketing efforts and create targeted campaigns for the Asian consumer segment. Leverage technology and analytics to understand consumer behavior, preferences, and purchase patterns. By tailoring messages and offerings to the specific needs and desires of Asian and Asian American consumers, companies can enhance their marketing effectiveness and drive engagement.
The Future of Asian Market Engagement
The Asian market presents immense opportunities for brands and media companies. By leveraging the data and insights provided by Engagement Labs, businesses can unlock the power of the Asian consumer segment. Understanding the volume of brand conversations, the most talked-about brands, issues they talk about, media touchpoints, and the preferred modes of communication among Asians is key to developing effective marketing strategies.
Engaging with the Asian market not only drives revenue growth but also advances diversity, equity, and inclusion efforts within the industry. By tailoring campaigns to the specific needs, preferences, and values of Asian and Asian American consumers, companies can foster a more inclusive environment and give voice to underrepresented communities.
As the Asian and Asian American population continues to grow and exert influence, it is crucial for brands and media companies to stay ahead of the curve. By investing in data, analytics, and strategic marketing efforts, businesses can forge strong connections with the Asian audience and position themselves for long-term success.
The Asian market offers vast potential for brands and media companies. By tapping into this segment, businesses can drive revenue growth, foster inclusivity, and demonstrate their commitment to diversity and equity. Through data-driven insights, cultural sensitivity, and strategic partnerships, companies can create meaningful connections with Asian American consumers and contribute to a more inclusive and representative industry landscape. As we celebrate AAPI month, let us embrace the opportunities presented by the Asian and Asian American market and work towards a future of diverse and equitable engagement.