US multicultural media spending expected to surge in 2024—but still lag behind total spending

U.S. multicultural advertising spending is expected to grow 8% to $45.83 billion in 2024, fueled by political ad spending and the upcoming World Cup, according to a new report by PQ Media, a market research firm. Much of the media spending projected for 2024 will be generated by the Hispanic market, a popular target as political candidates look to connect with Hispanic voters for the 2024 elections, especially in Florida, Texas and California. Hispanic-targeted radio stations are expecting a 25% growth in ad sales next year, according to the report. Hispanic-aimed ads are also slated to be more popular as brands prepare to reach Hispanic soccer fans for the 2026 FIFA World Cup, which will be held in North America (the exact location has not been decided). Patrick Quinn, PQ Media’s CEO and founder, points to Mexico’s professional league, Liga MX as a reason for the growth. In 2022, the league struck a deal with TelevisaUnivision under which the Spanish-language media company sells sponsorships to brands wanting to reach Liga MX fans in the U.S. That led to T-Mobile in January entering a sponsorship as the official wireless sponsor of Liga MX in the U.S. Super Bowl commercials Tracking the latest brand and agency plans Enter here “In short, the 2026 FIFA World Cup could be the phenomenon that finally supercharges the multicultural markets—and particularly the largest and fastest-growing demographic therein, Hispanic Americans—into the double-digit range of total U.S. media spend for the first time ever,” Quinn said in a press release. Hispanic media already accounts for 68% of multicultural media spend, while African-American media accounts for approximately 29%. Asian Americans account for just 3%. Multicultural media accounts for only 5.3% of total U.S. marketing spending even though, as the report points out, multicultural consumers account for 40% of the population. “So, while Hispanic, African and Asian Americans combined have constituted the fastest-growing demographic in the country for years, multcultural media growth has conversely underperformed the broader U.S. media industry and still accounts for a mere sliver of the overall American pie,” the report states. The projected 8% increase in multicultural media spending for next year comes after slower growth in 2023 of just 5%. Spending decelerated for several reasons, according to PQ Media, including fears of a looming economic recession, causing brands to trim their media spend. Also cited were “anti-woke” reactions by conservatives, which saw brands including Target and Bud Light walk back LGBTQ+ promotions. This had a broader effect on multicultural budgets, according to the report, whose findings were partially based on interviews with a panel of media and technology industry stakeholders. Multicultural TV saw the most spending in 2023, growing 2.3% to $9.65 billion, followed by relationship marketing ($5.31 billion) and digital media (almost $5 billion), the report found. Experiential marketing was the fastest-growing channel this year, surging more than 15%. Influencer marketing grew 13%, and branded and content marketing grew by almost 12%. See our Year in Review stories here

US multicultural media spending expected to surge in 2024—but still lag behind total spending

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