multicultural audiences Archives - AdMonsters https://admonsters.com/tag/multicultural-audiences/ Ad operations news, conferences, events, community Tue, 24 Sep 2024 03:51:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 Navigating the New Rules of Marketing to Multicultural Audiences https://www.admonsters.com/navigating-the-new-rules-of-marketing-to-multicultural-audiences/ Tue, 24 Sep 2024 12:00:06 +0000 https://www.admonsters.com/?p=660735 Neil Sweeney, Founder/CEO of Reklaim, explores how evolving privacy laws are transforming ethnicity into Sensitive Personal Information (SPI), urging marketers to pivot from traditional approaches and secure explicit consent — or risk alienating multicultural audiences and facing legal repercussions.

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Neil Sweeney, Founder/CEO of Reklaim, discusses how evolving privacy laws are transforming ethnicity into Sensitive Personal Information (SPI), urging marketers to pivot from traditional approaches and secure explicit consent — or risk alienating multicultural audiences and facing legal repercussions.

Media outlets today focus on multiculturalism and DE&I (Diversity, Equity, and Inclusion), but an overlooked issue is how marketing strategies must adapt to new regulations to engage these multicultural groups effectively — and legally.

In the past, ethnicity was simply another audience segment you could pull off the shelf, ready for your campaign. If you wanted to target African Americans, Hispanics, or any other ethnic group, the data was there, and available to use. Fast forward to today, and the landscape has changed dramatically. Ethnicity, alongside many other categories, has been reclassified as Sensitive Personal Information (SPI). What does this mean for marketers? A lot. And if you’re not paying attention, it could be catastrophic for your campaigns and your brand.

The Shift from Assumed to Explicit Consent

The days of assumed opt-ins — think cookie banners — are over. Today’s privacy landscape increasingly demands explicit opt-in. The difference is significant, yet many players in the agency world and data market still fail to understand this distinction. If you’re using SPI data, you need explicit user consent, period. This isn’t just about collecting consent; you must also ensure the user can opt-out.

Furthermore, data consent must be used in the context in which it was collected. You can’t collect explicit consent in one place and then sell or trade that data for use elsewhere. Yet, this is the problem many platforms face today. Why? Because they lack direct interaction with consumers.

The Problem with ‘Headless’ Platforms

Headless platforms are like data warehouses — they store information but lack a consumer-facing interface to collect or manage consent. Over the last two decades, data management platforms (DMPs), supply-side platforms (SSPs), demand-side platforms (DSPs), and similar services have played pivotal roles in media and advertising. However, these platforms often operate without direct consumer interaction, meaning they can’t collect opt-ins or manage opt-outs. By definition, SPI data should not be processed by these platforms — yet no one seems to be addressing this issue.

Some platforms have started removing these categories altogether in an attempt to self-regulate. However, this approach is inconsistent and insufficient. It also leaves a gaping hole in the market for the Fortune 500 companies that rely on this data to market efficiently.

A Market at Odds

Consider this: over 40% of the U.S. population identifies as part of a minority group. Yet the very data needed to market to these groups is rapidly becoming unavailable or unreliable. The conundrum? There’s never been a greater appetite to market to different ethnicities, but the tools to do so have never been weaker.

Bad actors are partly to blame. Predatory marketing practices, such as targeting low-income multicultural groups with unfair lending products, violated the Fair Lending Act. This is why categories like household income and ethnicity are no longer available on platforms like Meta.

What Can Marketers Do?

  1. Stay on Top of Privacy Policies: With privacy regulations in constant flux, it can be overwhelming. My advice? Focus on following the opt-in. Wherever new requirements for explicit opt-ins emerge, you can be sure that marketing to those groups without this consent will expose you to liability.
  2. Choose Partners with a ‘Head’: A key way to ensure compliance is by selecting data partners with a user interface. If a platform has no direct relationship with the consumer, it can’t collect or manage explicit consent. No head, no consent—simple as that. Don’t be fooled by the “privacy-first” jargon that’s become all too common in marketing.
  3. DE&I Is Not an Exemption from Compliance: Many brands are pushing their DE&I initiatives by directing ad spend to minority-owned organizations, which is commendable. However, if those same brands aren’t checking whether the data used in those campaigns is opt-in compliant, they’re inadvertently fast-tracking their liability. A DE&I SSP should be able to manage both opt-in and opt-out consent to protect the brand.
  4. Treat SPI Like Health Data: Sensitive Personal Information is much like healthcare data. Most of us understand that when marketing in the healthcare space, compliance with HIPAA is mandatory. The same principle should apply to SPI. Treating SPI data with the same level of care ensures that your marketing strategies meet the explicit consent requirements.

Exclusion Isn’t a Strategy

Too often, I’ve had conversations with brands and agencies that end with them saying, “We’re excluding this (SPI) category for now.” This approach is not a long-term solution. Exclusion is a cop-out, and more importantly, it’s intellectually bankrupt. Ignoring multicultural audiences due to data compliance challenges is not a strategy — it’s a missed opportunity. Any self-respecting brand that thinks excluding 40% of their audience is a good idea should ask themselves: what’s the alternative? A campaign so vanilla it appeals to no one? Brands should demand more from their agencies and teams if this is their approach.

Since early 2023, over 17 states have enacted privacy laws that address consumer inclusion around ethnicity, religion, sexuality, and union membership. This trend is not reversing. It’s vital for brands and agencies to overcome inertia and adopt new strategies and tactics. Progressive brands must take the lead, holding their agencies and partners accountable. There is enormous opportunity here for those willing to lead from the front.

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Marketing Engineering – Uniting the Power of Cultural Insights and Data Analytics https://www.admonsters.com/marketing-engineering-uniting-the-power-of-cultural-insights-and-data-analytics/ Tue, 07 May 2024 02:27:48 +0000 https://www.admonsters.com/?p=655665 Jaime Cardenas, CEO, AC&M Group, says that marketers must unite creativity and an engineering mindset to create authentic and nuanced campaigns. "Any campaign must resonate with the lived experience and shared values of the communities it is attempting to reach," he writes. Marketers must (and can) do better — it is time to unite the creativity our industry is known for with an engineering mindset to create authentic and nuanced campaigns. The first step is not only understanding which insights you are searching for, but how specifically to go about uncovering them.

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As our nation’s demographics evolve, diverse populations fuel growth in virtually every industry. These consumers expect diversity across race, ethnicity, and culture to be reflected in advertising and consciously spend with the brands that execute it well.

Core to these successful campaigns is comprehensive, culturally nuanced data that takes these audiences’ habits, views, perspectives, and patterns into account. Unfortunately, there is an ongoing lack of both across minority populations.

As brands and agencies look to delve into specific demographics, the depth of the insights available to them tends to diminish significantly.

Any campaign must resonate with the lived experience and shared values of the communities it is attempting to reach. Proceeding without this essential knowledge runs the risk of being seen as inauthentic, or worse, offending and invalidating the cultural experience of thousands of people. Critical marketing blunders like these have been seen time and time again, across nearly every industry.

Marketers must (and can) do better — it is time to unite the creativity our industry is known for with an engineering mindset to create authentic and nuanced campaigns. The first step is not only understanding which insights you are searching for, but how specifically to go about uncovering them.

Numbers Tell the Story

Often, brands and agencies know which multicultural group they would like to approach with their messaging, but do not know where to begin otherwise. Collecting quantifiable data on these audiences is often one of the most impactful ways to begin to authentically build a narrative that your consumers can connect with.

In a recent graduate class, one of the professors said something that resonates deeply with the feedback I receive from clients during data discussions. The professor referenced the timeless wisdom of Edwards Deming, stating, “Without data, you’re just another person with an opinion.”

Yet, in today’s world, where marketers are inundated with data, the statement takes on a new form: “Without an opinion, you’re just another person with data.” This shift underscores the importance not just of data collection, but of its interpretation. It’s the nuanced understanding and application of these insights that are pivotal to the success of any marketing campaign.

Doing this impactfully requires a sophisticated overlay of data from multiple sources. Consider which customers you are actually trying to target. This goes beyond a specific racial or ethnic group — consider factors such as where these consumers are located and their purchase history within your product or service sector. These factors can help determine their existing brand perception, and inform your strategic approach, to suit the goals of your campaign.

Alongside these logistical factors, a deep understanding of cultural context is necessary. Your research must encompass your audiences’ specific shared values within their local communities which a range of lived experiences, shared history and other socioeconomic factors can influence.

Seek out and listen to various unique perspectives and utilize your awareness of the present moment to deliver an informed and conscientious message that resonates with the individuals you aim to reach.

Embracing Emergent Technology

No discussion of modern marketing strategy would be complete without mentioning artificial intelligence. This emergent technology has its place across both campaign planning and execution. For example, utilizing a combination of qualitative and quantitative analysis, AI technology can both refine and accelerate the research process, delving into large datasets and uncovering patterns for marketers to extrapolate into actionable insights. However, beyond data processing, this emergent solution has a range of practical applications that marketers should explore.

In considering multicultural campaigns, AI technology can take on another essential task: assisting in accurate translations. For example, this innovative technology is capable of streamlining the initial translation process via inputting more sophisticated prompts. This goes beyond ensuring accuracy and extends to adding in other essential elements such as audience cultural nuances, location, and other valuable external contexts.

Innovative methodologies like these, complemented by a deep understanding of technology’s potential and limitations can creatively utilize analytics and ultimately lead to better campaigns. However, these approaches should never be undertaken without defined and robust oversight. Tasks such as ensuring correct linguistics and deriving insight from patterns are distinctly human in nature and ensure that the correct nuances and subtleties are accurate and culturally attuned.

With a robust view of consumer data, informed human oversight and the assistance of emergent technology, authentic and relevant cultural campaigns are not only possible but should become the norm. As the diversity of the national population grows, marketers must embrace an ongoing educational mindset, alongside a holistic evolution of the entire campaign planning and execution model, to better serve diverse consumers and communities.

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