Roundtable: Opportunity's Knocking
May 26, 2008
ASIAN AMERICAN MARKETING & COMMUNICATIONS was introduced about 20 years ago. What are some of the major milestones that have spurred the growth of the industry since then?
Ng: When "Ma Bell" was split up by the Department of Justice in the early 1980s, 85 percent of Asian Americans were immigrants with friends or family to call back home. To capture that business, AT&T, MCI and Sprint came into the market and a price war started. The campaigns began with the Chinese market, then expanded to Korean, Japanese, Vietnamese and South Asian Indian. That opened up opportunities for everyone else.
Huang: There have been several major milestones, beginning with the government's recognition of the Asian American market as a segment (based on results of the U.S. Census). Next, corporations recognized Asian Americans as a marketable group that can positively contribute to their bottom line, with the telecom industry being the first to put significant marketing dollars behind their pursuit of Asian American consumers. This, in turn, enabled the development of a comprehensive media platform to reach this market.
Wong: I'm also seeing four broad trends. First is the changing face of America at every level. People like Jerry Yang and Andrea Jung are household names. Second, the number of media outlets has grown from 200 in the 1980s to about 700-800 today, including outdoor, which didn't exist in the '90s. Third is the establishment of the 3AF in 1998 and, on the media side, New America Media-which is attempting to create a network across ethnic media. Also, Nielsen has started to recognize the Asian population, and I think that has promoted the growth of the industry. Fourth, the economic power of China and India is driving a lot of attention from large American advertisers.
WHICH CATEGORIES HAVE HAD THE MOST SUCCESS in their Asian marketing efforts to date, and why?
Wong: The newer success stories are among automotive, airlines, casinos, liquor, wireless and technology. All these came in the late '90s, driven mainly by the fact that after Asians set their roots and are financially established, they begin looking to lifestyle things.
Chang: We're seeing a lot of success among financial institutions-Citibank, HSBC, Washington Mutual, Bank of America-they all have engaged on the one-to-one level through traditional media, guerrilla events and sponsorships. Many have offices and branches within the communities they're serving and are seeing great success. Automotive has seen mixed success. Not all dealerships are set up to handle Asian American customers. Some cause-related activities are also seeing success. We do a lot of work with the California Tobacco Control Alliance and their quit-smoking help lines are getting a lot of Asian in-language calls.
WHAT ARE THE PERCEPTUAL BARRIERS that keep many marketers from deciding to launch Asian American marketing programs? What can you tell these marketers to get them beyond these perceptions?
Wong: Asians are the most affluent group in the U.S. They have high income, high education, high rate of entrepreneurship, the fastest population growth, and they're highly urbanized. In 2009, their purchasing power is projected to reach $528 billion. That would hopefully convince [marketers] that it's not the size that matters, it's who spends. And the cost of entry to Asian Americans is low compared to anything else. A 30-second spot running during the Super Bowl costs $2.7 million-with that size budget you can reach the Asian American market for a whole year.
Park: One barrier we see is the fragmentation of the audience-that is, needing a different message for each segment. Yes, it costs more, but it doesn't cost six times more to reach the six major Asian markets. There are efficiencies. Another is the challenge of tracking response. Ideally, clients need to provide all the same ways to respond as they would to the mainstream audience. It's no different than any other marketing plan you put in place. You want to look at all your options, test, and look at the outcome. Data gathering has to be at the center. It can get harder if marketers dip their toes in and get out, without generating any learning as to why it did or did not work.
Yamane: I think the bigger perception is the market's too small. Sometimes they feel taking on an Asian program is too much trouble for what they perceive to be a small investment. And I think the onus is on us, the 3AF and the agencies. We haven't made enough noise and we haven't had enough advocates to justify the positive business impact an Asian market can make for an advertiser. We don't have that kind of alliance yet and we're not out there enough pushing the market and pushing the reasons for it.
Song: Many marketers often look at the size of the population and correlate it to the size of the opportunity. However, if they take a closer look at affluence and purchase behavior, Asian segments become more important (for example, a typical Asian customer's checking account will usually have more dollars than the average American's).
For more Marketing to Asian Americans coverage:
Marketing to Asian Americans
Research: Uncovering the Gold Mine
Asian Media: Reaching the Target, Reaping the Rewards
Roundtable: Opportunity's Knocking
Roundtable continued
Where are the Clients?
