Which Minority Group Are Automakers Steering More Ad Dollars Toward?

Minority Automotive Media Spending
2007 2008 2009 African Americans  $143,555,000.94  $105,019,000.80  $  85,966,000.60 Hispanics  $659,717,000.00  $528,577,000.88  $323,230,000.00 SOURCE: The Nielsen Company
Since 2003, it has been documented that the Hispanic population has become the leading minority group in America, displacing the  African American population from its throne. The latest census  estimates, as of 2009 also illustrates this population shift.  Hispanics now account for 15.8% of the population, while  African Americans represent 12.3% of the U. S. population.  Moreover, in 2007, a report from the Polk organization, a  data mining company that tracks vehicle sales, determined that  Hispanics and African Americans accounted for 9.9% and  7.1% respectively, of total new-vehicle sales. This is the latest  public data we were able to secure, comparing both minority groups. Unfortunately, as we've determined, the advertising dollars  being allocated by the automakers to both minority groups is quite telling.  In fact, over the past three years auto  advertisers have spent five times as much targeting the new minority group - Hispanics - while virtually walking away  from the African American community. Automakers spent  approximately $1.5 billion and  $334 million  respectively, targeting the Hispanic and African  American media, according to the Nielsen Company. This imbalance of spending was quite evident last year when the  automotive companies, which excludes local dealers, virtually ignored promoting the controversial, but extremely popular government-run Cash for Clunkers Program with the urban  media. With the exception of a limited number of ads airing on The Steve Harvey Morning Show, the urban  community was all but ignored. (We also must point out Steve Harvey has an exclusive relationship with Ford.) And, at the time, GM and Chrysler were in bankruptcy  and had limited funds to advertise. There was no opportunity via the national media outlets to let African Americans know specifically how they could save upwards of $8,000 (or more) purchasing a new-vehicle by trading in a clunker. This number  doesn't factor in finance savings, which further drives up cost  savings. Yet, for the most part, the African American media  outlets kept their community immersed with salacious  entertainment and hot-bed political issues during this time  period. Unfortunately, African Americans, who primarily depend on the  urban media to keep them informed,were basically left in the dark  about this lucrative, one-of-a-kind incentive program. Was this  done by design? How many extra sales could have been added to the auto industry had they properly targeted and educated the  African American community about this complicated  government-run program?   Conversely, in the Hispanic media, advertisers promoted the  government-run program heavily. African Americans like  Hispanics rely on their media sources to keep them informed.  Yet, as of late, we've found most advertisers and marketing gurus only allocate their marketing budget to the Hispanic and general  (mainstream) population. As the Hispanic community continues to grow, there has been a trend in the number of companies like AutoTrader.com and AOL  designing targeted automotive websites specifically for this group.  However, you won't find either of these companies or for that matter any of the urban media major print, broadcasting or radio  programs designed specifically for African Americans, with the  exception of Tom Joyner's BlackAmericaWeb.com, providing  automotive content to this community. The community depends upon their outlets to keep them informed beyond celebrity  entertainment, fashion, sports, health and politics.  Is this why certain communities always end-up on the short-end of the stick when it comes to getting good  deals, but always lead the pack as it relates to experiencing predatory lending practices? At what point are the minority  media outlets and the minority advertising companies, who are in a position to change this trend, bring a balanced mix  of infusing into the minds of their targeted groups  issues related to entertainment, health, politics and money?  Or is it by design that these groups stay misinformed?
Ironically, when we compare the auto industry to how successful politicians, who yearn for the votes from a diverse  community, show-up at their churches on Sunday (and  attend other cultural functions) during the height of the political season, the auto industry gets a failing  grade, when targeting African American car buyers.  Unlike what's been allowed and become an accepted  practice in the automotive industry (and other industries), successful politicians don't expect for their message to  trickle to diverse communities via the mainstream media.  So, why do African Americans allow the same of the auto  industry? If African Americans really wanted to show the auto industry their spending power, let's hope they don't "Go Green," taking public transportation, cycling, walking or buying their vehicles from a non-franchised, independent dealer. If this group decided to buy vehicles from independent dealers, this would mean that African Americans would no  longer purchase brand-new vehicles. Isn't this  philosophy advocated in the award-winning book, 'The Millionaire Next Door'? We bet this would drive the automotive industry to properly allocate their  marketing budget to lure this group to buy their  new vehicles, as opposed to assuming this is a  post-racial society, looping African Americans in with the general population.