The African-American consumer has clout. In fact, it is estimated to have a spending power projected to reach $1.1 trillion by 2015. And Walmart obviously understands this. At a recent Association of National Advertisers’ Multicultural Marketing and Diversity conference, a Walmart exec announced that the mega retailer plans to at least double its current spending to advertise to Black, Hispanic and Asian consumers.
Target Market News reports that Tony Rogers, Senior Vice President of Brand Marketing and Advertising told the audience that “one hundred percent of the growth [in sales] is going to come from multicultural customers.” Rogers said that Walmart’s multicultural advertising agencies won’t have to wait for the general market strategy to unfold first; they will have a “seat at the table” when the marketing conversation begins.
“Walmart is currently the 14th largest advertiser in black media spending,” according to a forthcoming report from Target Market News. But while in 2011 it placed $18.3 million in African-American targeted ads through measured media, this was less than a year earlier when Wal-mart spent $20.9 million.
This will be welcomed news for black media outlets, which have long complained of being overlooked by Madison Avenue. Earlier this year, an initiative was launched by the Black Media & Marketing Consortium , a collective of black media, agencies, and trade organizations, to fight for more ad dollars in light of the growing power of the black consumer.