As companies kickoff their 2022 business planning process, CMOs and their teams face a perennial challenge: allocating their limited resources among a variety of brands, projects, programs, and opportunities, while still achieving the necessary ROI and expected growth rates.
To complicate matters, marketers face a constantly changing marketplace that challenges past assumptions regarding consumer behaviors, media choices, and demographic shifts.
Unfortunately, most organizations will allocate their 2022 resources based on antiquated models that, at best, provide room for some “fine-tuning” over what used to work years ago.
However, outdated resource allocation models based on the past are no longer good enough for most brands. Some marketers have started to realize there’s an ever-widening gap between where most resources are being allocated versus where most of the incremental growth is coming from.
Nowhere is this problem more accentuated than in the multicultural marketing space. Most organizations have notoriously underinvested in the core targets of this segment (Hispanic, Black, and AAPI consumers), and the gap between business importance and intentional investments only grows larger.
For example, according to Nielsen data, the industry’s investment in measured Spanish-language advertising was only 5.9% of the total investment in 2020, despite the fact that the Hispanic segment, with almost 20% of the country’s population, represents the…