- Executive Summary
Background
Overview of Report
Scope and Methodology
Scope of Report Methodology
Demographics
Black Population Grew Faster Than the General Population During
1990s
African Americans Remain Largest Minority Group
Table 1-1: Past, Present, and Projected U.S. Ethnic Mix, 1990-2010
Number of African Americans Will Increase 13% in Next Decade
African American Population Includes Many Segments
Black Population Is Concentrated in Relatively Few Localities
African American Households Are Younger and Larger Than White Households
Traditional African American Families Number Nearly Three Million Household Income Gains
Per Capita Income Grows More Than Other Groups
Affluent African Americans Become Significant Economic Force
Number of African Americans in Poverty Declines
African American Unemployment Rate Drops
Education Gap Narrows
Health Insurance Coverage Elusive
Partisan Affiliation Declines but Support for Democratic Candidates Continues
African Americans Have Conservative Social Values and Diverse Political Views
African Americans Are Highly Religious
The Market
Significant Growth Anticipated
The Most Affluent African American Households Have Annual Income of $110 Billion
African American College Graduates Have a Strong Economic Profile
African Americans Represent Multi-Billion-Dollar Consumer Market
The African American Market Is Concentrated
Suburbs and Rural Areas Show Strongest Growth
Conditions Potentially Inhibiting Growth in the African American Market
African Americans as Consumers
African Americans Enjoy Shopping
African American Expenditure Patterns Are Distinct
Food Spending Differs
African Americans Buy More Apparel and Footwear
Expenditures for Personal-Care Products Are Substantially Above Average
Furniture and Home Appliances Are Priority Purchases
PC Ownership in Black Households Increases at Rapid Rate
African American Media
Blacks Spend More Time Watching TV
TV Viewing Habits Differ
African American Viewers Favor Cable
Radio Listening Is High
African American Teens Reached on Radio
African Americans Depend on Print Media
Affluent African American Households Are Heavy Users of the Internet
Marketing to African Americans
Mainstream Marketing Often Misses African American Consumer
Success Requires Company-Wide Commitment
African Americans Are Not a Monolithic Market
Ongoing Promotion Is Vital
Advertisers Still Use Specialized Ad Shops
"Urban Style" and Black Culture Enter the General Market
Street Marketing and Peer Influence Appeal to Young, Urban Consumers Relationship Marketing Is Key
Examples of Advertising Targeted to African Americans
Images of Achievement
Exceptional Women
African American Moms
Young Families
Urban Scenes
The African American Heritage
- Demographics
Figure 2-1: Projected Growth of African American Population, 1999-
2003
Figure 2-2: U.S. Ethnic Mix, 1999 vs. 2008
Market Definition: African Americans
African Americans Defined
Limitations of Census Classifications of Race and Ethnicity
Scope of the Analysis
Population Size and Growth
Black Population Grew Faster Than the General Population During
1990s
Hispanic Black Population Increases the Most
African Americans Remain Largest Minority Group
Table 2-1: Past, Present, and Projected U.S. Ethnic Mix, 1990-2010
Number of African Americans Will Increase 13% in Next Decade
Table 2-2: Projected Growth of Total U.S. and African American Populations, 1999-2003
Black Female Immigrants Have Higher Birth Rates
Ethnicity and National Origin
Historical Origins of African Americans
African American Population Includes Many Segments
Two Million African Americans Are Foreign-Born
Table 2-3: Non-Hispanic African American Immigration Trends, 1992 to 1997
Hispanic Blacks Form the Largest Group of Foreign-Born African Americans
Census 2000 Likely to Count Many More Afro-Caribbean Immigrants
Haitians Form Major Population Bloc
Afro-Caribbean Immigrants Have Major Impact in Florida
Florida Localities Affected by Haitian Immigration
New Law Legalizes Status of Many Haitian Immigrants
West Indian Immigrants Gain in Importance
Geographic Distribution
Black Population Is Concentrated in Relatively Few Localities
Table 2-4: States with Largest African American Population, 1997
Most Blacks Live in the South
Table 2-5: Geographic Distribution of African Americans and General Population, 1998
Largest Black Population Gains Occur in the South
Table 2-6: Growth of African American and General Populations by Region, 1990 to 1998
Some Northeast and Midwest States Also Experienced High Growth
Table 2-7: States with Fast-Growing Black Populations
Black Migration to the South Increases
Florida Registers Exceptional Gains
Table 2-8: African American Population Trends in Key Florida Counties, 1990-1997
Blacks Living Outside the South Cluster in Metropolitan Areas
Table 2-9a: Residence of African Americans, 1980-1998
Table 2-9b: Residence of Whites, 1980-1998
Black Population Declines in Central Cities
African Americans Become More Suburban
Table 2-10: African American Population Trends in Key Localities, 1990-1997
Foreign-Born Blacks Cluster in the Northeast and in Florida
Table 2-11: Region of Residence of Foreign-Born Blacks
Age and Gender
African Americans Are Relatively Young
Table 2-12: Median Age of African Americans and Other Population Groups, 1999 and 2010
Younger Ages Predominate
Table 2-13: Population by Age Group: Blacks vs. Whites
Family Status
Female Heads of Household Are Significant
Table 2-14: Household by Type: African Americans vs. Other Households
African American Households Are Larger Than White Households
Table 2-15: Size of Household: African American vs. Non-Hispanic White
Marital Status Varies
Table 2-16: Marital Status: African Americans vs. Non-Hispanic Whites
18 Years Old and Over
Traditional African American Families Number Nearly 3 Million
Two-Parent Families Become More Common
Table 2-17: Living Arrangements of Black Children Under 18 Years Old, 1990-1998
Number of Interracial Marriages Increases
Table 2-18: Interracial Married Couples with Black Partners, 1960-1998
Economic Status
Household Income Gains
Table 2-19: Average Household Income: African Americans vs. Other Population Groups, 1988-1997
Per Capita Income Grows More Than Other Groups
Table 2-20: Per Capita Income: African Americans vs. Other Population Groups, 1988-1997
Income Still Trails in Absolute Terms
Table 2-21: Median Family Income: African Americans vs. Other Groups
Blacks Feel Better Off Financially and Are More Optimistic
Affluent African Americans Become Significant Economic Force
Table 2-22: Family Income: African Americans vs. Other Families, 1997
African American Females Match Earnings of White Females
Table 2-23: Total Money Income of People 15 Years Old and Over: African Americans vs. Non-Hispanic Whites
More African American Households Have One Income Earner
Table 2-24: Number of Earners in a Household: African Americans vs.
Other Population Groups
Middle-Class African American Workers Fare Better
Table 2-25: Total Money Income of Year Round, Full-Time Workers:
African Americans vs. Non-Hispanic Whites
Education Improves Earning Power
Table 2-26: Median Income by Educational Attainment: African Americans vs. Non-Hispanic Whites
African American Homeownership Hits Record High
Credit Problems Inhibit Homeownership
Table 2-27: Credit Records: African Americans vs. Other Population Groups
Number of African Americans in Poverty Declines
Table 2-28: Poverty Rates of African Americans and Other Population Groups
But Welfare Reform Takes a Toll
Traditional Families Fare Better
Table 2-29: Poverty Status of African American vs. Other Families
Employment
African American Males Improve Employment Status
Table 2-30: Occupation: African American Males vs. Other Males
African American Males More Likely to Work in Public Sector
Table 2-31: Class of Worker: African Americans vs. Other Population Groups
Employment Status of African American Females Is More Favorable
Table 2-32: Occupation: African American Females vs. Other Females
African American Unemployment Rate Declines
Table 2-33: Unemployment Rates Among African Americans, June 1998 vs. June 1999
Younger Black Men Gain From Booming Economy
Families Benefit From Low Unemployment
Table 2-34: Families With Unemployed Members, 1997-1998
Educational Attainment
Education Gap Narrows Table 2-35: Educational Attainment: Blacks vs. Non-Hispanic Whites, 25 to 34 Years Old
Experts See Gender Gap in African American Education
Education Has Greatest Effect Upon Earning Power of African American Women
Table 2-36: Median Weekly Earnings Premium for Educational Attainment, 1998: African American Women vs. Other Population Groups
African American Males Receive Same Education Premium from
Advanced Degrees as White Males
Southern Blacks Still Face Barriers
Health Status
Studies Reveal "Separate and Unequal" Health-Care Systems
African Americans Have High Incidence of Certain Medical Conditions
Health Insurance Coverage Is Elusive
High Rate of Church Attendance Enhances Health Status
Politics and Religion
Partisan Affiliation Is Declining
African Americans Still Vote for Democratic Candidates
African American Political Clout Varied in 1998
African American Candidates Gain
Afro-Caribbean Voters Gain in Political Importance
African Americans Have Conservative Social Values and Diverse Political Views
African American Churches Have a Long History
African Americans Are Highly Religious
African Americans Spend the Most Time in Church
Churches Continue to Play a Key Role in the African American Community
Black Churches Play a Key Political Role
Black Churches Face Financial Difficulties
Social and Cultural Attributes
African Americans Have Distinct Social Values
African Americans Differ in Their Use of Time
Black Upper Class Engenders Complex Reactions
Social Institutions of Upper-Middle-Class African Americans Thrive
African American Youth Value Leadership and Intelligence
- The Market
Figure 3-1: Projected African American Market Growth, 1999-2004
Market Size and Growth
Aggregate African American Income Exceeds $464 Billion
African Americans Have Significant Buying Power
Buying Power Estimates Differ
Affluent African Americans Are Key Market
Table 3-1: Aggregate Income of African Americans 15 Years Old and Over
More Than 1 Million African American Males Earn at Least $40,000 Annually
Table 3-2: Aggregate Income of African American Males 15 Years Old and Over
African American Females Represent a Significant Market
Table 3-3: Aggregate Income of African American Females 15 Years Old and Over
Packaged Facts Estimates Distribution of African American Household Income
Table 3-4: Aggregate Income of African American Households
The Most Affluent African American Households Have $110 Billion Annual Income
More Than 4 Million African American Households Have Incomes of $35,000 or More
African American College Graduates Have Strong Economic Profile
Table 3-5: Aggregate Income of African Americans with Bachelor's Degree or More
Inner-City African Americans Offer Significant Opportunity for Retailers
African Americans Represent Multi-Billion-Dollar Consumer Market
Table 3-6: Estimated Annual Expenditures of African Americans: by Selected Product Category
Factors Affecting Market Growth
The African American Market Is Concentrated
The Market Will Consolidate Further
Table 3-7: Projected African American Population in Selected States, 2000-2015
The South Remains Important
Fast-Growing African American Markets Are Diverse
Suburbs and Rural Areas Show Strongest Growth
Table 3-8: African American Population Trends by Location of
Residence, 1995-1997
Affluent African American Households Are Found in Suburbs of Large Metropolitan Areas
Table 3-9: Median Income of African American Households by Location of Residence
Incomes of African Americans Outside Metropolitan Areas Show the Fastest Growth
Table 3-10: Changes in Median Income of African American Households by Location of Residence, 1995-1997
Retail Market Strong in Inner City
Inner City Is "Last Frontier" of Retailing
Multiracial Population Growth May Affect Traditional Racial Boundaries
Projected Market Growth
African American Market Will Show Significant Growth
Table 3-11: Projected Growth of Aggregate Income of African Americans, 1999-2004
- African Americans as Consumers
African Americans Enjoy Shopping
African Americans Are Consumers
Inner-City Residents Are Fashion Conscious
Table 4-1: Spending Habits: Inner-City Residents vs. All Adults
Atmosphere in Retailing Environment Is Critical
African Americans Favor Companies Involved in Their Community
Supermarkets Advised to Make an Effort to Understand Motivations of African American Consumers
African Americans Favor Mass Merchandisers Over Drug Stores
African Americans Spend More at Grocery Stores
African Americans Place a High Priority on Fashion
Brand Names Are Critical
African Americans Boost Christian-Theme Barber and Beauty Shops
Spending on Consumer Products
African American Expenditure Patterns Are Distinct
Table 4-2: Average Annual Expenditures: African Americans vs. Other Population Groups
African Americans Spend Less for Food Away From Home
Table 4-3a: Average Annual Expenditures for Food at Home and Away From Home: African Americans vs. Other Population Groups
Table 4-3b: Average Annual Expenditures for Food at Home and Away
From Home: African Americans vs. Other Population Groups
Upscale Soul-Food Restaurants Flourish
African Americans Are Important Fast-Food Customers
At-Home Diet Differs for African Americans
Table 4-4: Average Annual Expenditures on Food at Home: African Americans vs. Other Population Groups
Cereals Are Consumed More Heavily
African Americans Favor Meat, Poultry, and Seafood
Processed Fruits and Vegetables Are Purchased Often
Figure 4-1: Average Annual Expenditures for Meat: African Americans vs. All Consumer Units
Alcoholic Beverage Consumption Varies
African Americans Buy More Apparel
Pantyhose Sell Well
Table 4-5: Average Annual Expenditures on Apparel and Services: African Americans vs. Other Population Groups
Shoes Are Popular Consumer Choice
Figure 4-2: Annual Expenditures for Footwear: African Americans vs.
Other Population Groups
Expenditures for Personal-Care Products Are Substantially Above Average
Table 4-6: Average Annual Expenditures for Personal-Care Products and Services: African Americans vs. Other Population Groups
Ethnic Hair-Care Products Are Top Sellers
Children's and Men's Hair-Care Products Are Growing Fast
African Americans Are Major Consumers of Other Health and Beauty Aids
Black Women More Likely to Buy Fragrances
Furniture and Home Appliances Are Priority Purchases
Table 4-7: Average Annual Expenditures on Household Supplies and Equipment: African Americans vs. Other Population Groups
African Americans Buy Significant Quantities of Laundry and Cleaning Supplies
Health-Care Expenditures Are Relatively Low
Table 4-8: Average Annual Expenditures for Health Care: African Americans vs. Other Population Groups
African Americans Are Heavy Users of Telephone Services
Black Consumers Expect Quality Service From Telecommunications Providers
PC Ownership in Black Households Increases at Rapid Rate
Figure 4-3: Average Annual Expenditures for Telephone Services:
African Americans vs. Other Population Groups
Figure 4-4: Percentage of African American Households with Computers: 1984-1998 (selected years)
Table 4-9: Percentage of U.S. Households With a Computer: By Race and Place of Residence
Income Differences Do Not Explain Disparities in PC Ownership
Table 4-10: Percentage of U.S. Households With a Computer: By Race and Income
Affluent African Americans Close Home PC Ownership Gap
African Americans Buy More Used Cars
Figure 4-5: Upper-Income Households with a Computer: African Americans vs. Other Households
Table 4-11: Average Annual Expenditures on Transportation: African Americans vs. Other Population Groups
African Americans Buy Consumer Electronics Items
Table 4-12: Average Annual Expenditures for Entertainment: African Americans vs. Other Population Groups
Pet Supplies Not Big Seller
African American Airline Customers Have Same Profile as Whites
African Americans Buy More Life Insurance Than Other Groups
Table 4-13: Average Annual Expenditures for Personal Insurance and Pensions: African Americans vs. Other Population Groups
Affluent African Americans Favor Conservative Investment Vehicles
Interest in Wall Street Rises
Young, Upper-Income Blacks Save More Than Their Elders
- African American Media
Blacks Spend the Most Time Watching TV
Prime-Time TV Viewing Habits Differ
Daytime Viewing Is Less Segmented by Race
Broadcast Networks Reduce Programming with African American Casting and Themes
Networks React to Criticism
Broadcast Networks Face Challenge
UPN Tries to Rebuild Black Audience
Basketball Is Favorite Professional Sport on TV
African American Viewers Favor Cable
Cable Is Cost-Effective, Convenient Choice for African American Families
Cable Outlets Respond More Effectively to African American Viewing Interests
Nickelodeon Succeeds With Diversity-Based Programming
Syndicated Shows Become Important to Advertisers
TV Advertisers Take Into Account Concentration of African American Media Markets
Cable Gains Support From Advertisers
Network Advertising Can Still Be Effective
BET Continues to Dominate
Competitors Appear on the Horizon
Radio
Radio Listening Is High
Minority-Formatted Stations Have Lower Revenues
New Study Aims to Respond to FCC Findings
Advertisers Place a High Priority on Radio
African American Teens Reached on Radio
Clear Channel Communications Succeeds With New Strategy in Memphis
Gospel Music Stations Show Strong Demographics
XM Satellite Radio Creates New African American Service
Merck & Co. Uses Radio to Reach African Americans
Print
Black Newspapers Play Key Role in Community
Mainstreaming of African American Media Coverage Affects the
Traditional Black Press
African American Newspapers Remain a Vibrant Economic Force
African American Media Show Substantial Growth
Five African American Magazines Are in Top 250
Top Magazines Seek to Diversify Media Presence
African Americans Depend on Print Media
Black Magazines Are Highly Trusted
Publishers See Lack of Advertising Support for Black Publications
Black Publishers Group Highlights Five Myths Inhibiting Advertising in Black Media
African Americans Depend on Newspapers for Coupons
Publishers Launch Upscale Lifestyle Magazines for Affluent African American Males and Females
African American Magazines Succeed as Newspaper Inserts
New Magazines Target African American Families
NV Magazine Seeks New Generation of African American Entrepreneurs
New Media
Government Study Shows Wide Variations in Internet Usage
Fewer African Americans Use the Internet at Home
Table 5-1: Percentage of U.S. Persons Using the Internet by Race/Hispanic Origin and Location of Use
Demographic Variables Affect African American Internet Usage
Affluent African American Households Are Heavy Users of the Internet
Table 5-2: Percentage of U.S. Households Using the Internet: By Race and Income
Schools and Public Libraries Are Important Internet Access Points for African Americans
Table 5-3: Percentage of U.S. Households Using the Internet Outside the Home: By Selected Places and by Race and Hispanic Origin
Internet Is Used More for Education and Less for E-Mail
Table 5-4: Percentage of U.S. Persons Using the Internet at Home: By Type of Use and by Race and Hispanic Origin
African Americans Use E-Mail for the Same Purposes as Other Population Groups
Table 5-5: Percentage of U.S. Persons Using E-Mail at Home: By Subject Matter and by Race and Hispanic Origin
Cost and Lack of Interest Affect Internet Use
Table 5-6: Reasons for Households with a Computer/Web TV Not Using the Internet at Home: By Race and Hispanic Origin
African Americans Show Less Concern About Internet Confidentiality
Private Market Researchers Predict Higher Internet Access by African Americans
Internet Pioneer Faces Competition
Figure 5-1: Percentage of U.S. Households "Very Concerned" or "Somewhat Concerned" About Internet Confidentiality: African Americans vs. Non-Hispanic Whites
Black Entertainment Television Launches Internet Venture
BlackFamilies.com Offers Web Site for African Americans
NetNoir Online Has Broad Definition of African American Culture and Market
Johnson Publishing Reviews Internet Options
The Christmas Channel Targets Middle-Income Minorities
CyberSoul City Highlights HBO Offerings to African Americans
Direct Marketing
Street-Level Merchandising Is Critical in Urban Areas
Black Literary Club Succeeds With Direct Mail
Direct-Mail Pieces Need to Meet Expectations of African Americans
Catalog Firm Expands Efforts to Reach African American Women
- Marketing to African Americans
African Americans Are Not a Monolithic Market
Targeted Marketing Differs From Diversity Marketing
Mainstream Marketing Often Misses African American Consumer
African American Market Research Requires Distinct Methodologies
Ethnic Marketers Face Many Issues
Success Requires a Company-Wide Commitment
Black Culture Leveraged in Mainstream Marketing
"Urban Style" Leaves the City and Enters the General Market
African Americans Are "Influencers"
More African American Models Used in Mainstream Advertising
Models with Distinctive Features Become Popular
Study Suggests Targeted Ads Work Best
Strength of Ethnic Identification Affects Receptivity to Advertisements
Advertisers Use African American Holidays
Ongoing Promotion Is Vital
Mainstream Firms Tap Into African American Market by Acquiring Black-Owned Businesses
Opinions Differ on Marketing to Luxury Buyers
Organizational Approaches
Southwest Airlines Creates Organizational Focus for Multicultural
Marketing
Top Ad Agencies Consolidate Multicultural Marketing
Advertisers Still Use Specialized Ad Shops
Procter & Gamble Moves to Close Gap in African American Market
Promotional Strategies
Street Marketing and Peer Influence Appeal to Young, Urban Consumers
Major Retailers Begin to Focus on Urban Market
Success Strategies for Urban Retailing
Ethnic Food Displays Work in Supermarkets
Financial Services Industry Finds That Hard Sell Approach Does Not Work
Ariel Capital Management Follows "Slow and Steady" Marketing Strategy
Merrill Lynch Develops Marketing Approach to Affluent African Americans
MONY Implements a Comprehensive Marketing Program Among African Americans
Nationwide Insurance Expands Network of Urban Offices
Allstate Invests in Inner-City Relationships
Large Financial Services Institutions Take Notice of African American Business Borrowing Potential
Health-Care Organizations Advised to Use Grassroots Marketing
Kraft Foods Uses Relationship Marketing
Coors Continues Building Relationships
Displays Important in Boosting Ethnic Product Sales
Ethnic Products No Longer Segregated
Rite Aid Expands African American Promotions
Pfizer USA Teams with Morehouse School of Medicine in Health Education Program
Sprite Gains With Hip-Hop Campaign
Church's Chicken Gains Market Share With Minority-Owned Franchises
Japanese Auto Companies Seek to Add Minority-Owned Dealerships
Major League Baseball Courts Inner-City Youths
Tourism Promotion Groups Reach Out to African Americans
Adapting Products to Meet African American Preferences
Ameritech Introduces Telephone Directory for African Americans
"Shark Bars" Target Affluent African Americans
Supermarkets Feature African American Foods
Ashley Stewart Recognizes Potential of Intimate Apparel Market
Kellogg Makes Initial Foray Into Urban Marketing
Transportation Industry Packages Products for African American
Travelers
American Greetings Launches Soul Kidz
Fragrance Makers Offer General-Market Products to African Americans
Opinions Vary in Cosmetics Industry on How to Meet Preferences of African American Women
Cosmetics Marketers Introduce African American Products As Part of Broader Ethnic Lines
Clairol Launches New Hair-Care Products for African American Women
Acquisitions Bring Mainstream Companies into Ethnic Market
Advertising Expenditures
Ethnic Advertising Less Than Expected
Multicultural Marketers Predict Sharp Increase in Ad Budgets
Honda Divides Budget Equally Between Event Marketing and Measured Media
Automotive Companies Boost African American Advertising
General Motors Boosts Advertising on BET Holdings Media
- Examples of Advertising Targeted to African Americans
Images of Achievement
Exceptional Women
African American Moms
Young Families
Urban Scenes
The African American Heritage
Food and Soft Drinks
Burger King's "Backyard Barbecue" Connects With Its Customers
Cheerios Focuses on a Close-Knit African American Family
Coca-Cola Commercial Portrays Wholesome Image
Gatorade Uses Baseball Theme in Commercial
Automobiles
Honda Helps Achieve Balance in Life
Oldsmobile Intrigue Surprises
Financial Services
Financial Services Firms Highlight Hard Work and Dreams of Affluent
African Americans
Ameritrade Leverages Negative Images of Securities Brokers
Retailers
Mervyn's Back-to-School Commercial Reflects Diversity
Sears Highlights "The Good Life"
JCPenney Portrays Black Churchgoers in Print Ad
Living.com Uses Female Athlete to Attract Customers
Community Relations
Texaco Reaches Out to the African American Community
Nike Seeks to Build Socially Conscious Image
Appendix I: Examples Of Consumer Advertising
Appendix II: Addresses Of Selected African American
Market Resources
Advertising and Public Relations Agencies
Market Research Companies/Marketing Consultants
African American Publications
Television Networks
Internet
Organizations
