Wealthy blacks are next big target for marketers
Wealthy black consumers area growing economic powerhouse and one that American marketers and media companies should be paying very close attention to, according to a Nielsen report released today.
The report, which defines black Americans as African-Americans and black immigrants, focused on those households with annual income of $75,000 or more.
As a whole, blacks in the United States have $1.1 trillion in buying power, said Cheryl Pearson-McNeil, senior vice president of U.S. strategic community alliances and consumer engagement at Nielsen. "You can't ignore that."
Median income for blacks earning $200,000 or more increased 138% between 2005 and 2013, according to Nielsen's report. Meanwhile, median income for the overall population of people earning those amounts climbed by 74% during that time.
The report "tells a story that no one else is talking about," Pearson-McNeil said. While media tends to emphasize stories about poverty and lack of education in the black community, "if that's all you're being fed, that's all you know about yourself, it's all brands know about you."
Indeed, while affluent blacks are seeing major gains in income, the overall wealth gap between blacks and whites in the U.S. has been persistent for decades. In 2013, the median wealth for a white family was $134,008 compared to $11,184 for black families.
According to Census data released this week, some 26.2% of blacks were in poverty in 2014. And black children are also more likely to live in poverty than children of other races.
Part of what's driving the economic numbers for affluent blacks is the influx of black immigrants to the United States, which account for 8.7% of the overall black population, or one in every 11 blacks, according to Nielsen's report.
According to the report, the median household income for foreign-born blacks is 30% higher than that of blacks born in the U.S. "As we move into the presidential election season, immigration is top of mind, but the black population is rarely included in that discussion," Pearson-McNeil said.
Blacks are also seeing gains in education, with college enrollment among this group hitting 71% last year and high school graduation rates hovering at about the same percentage. Yet blacks are still significantly underrepresented in many high-paying fields. In 2011, they comprised 6% of workers in science and technology jobs and about 7% of medical school students.
Black consumers are also driving change in media, particularly on television. Shows like ABC's "Scandal" and "How to Get Away with Murder" and Fox's breakout hit, "Empire" all feature prominent black leads and supporting casts and have each done consistently well.
Wealthy black consumers area growing economic powerhouse and one that American marketers and media companies should be paying very close attention to, according to a Nielsen report released today.
The report, which defines black Americans as African-Americans and black immigrants, focused on those households with annual income of $75,000 or more.
As a whole, blacks in the United States have $1.1 trillion in buying power, said Cheryl Pearson-McNeil, senior vice president of U.S. strategic community alliances and consumer engagement at Nielsen. "You can't ignore that."
Median income for blacks earning $200,000 or more increased 138% between 2005 and 2013, according to Nielsen's report. Meanwhile, median income for the overall population of people earning those amounts climbed by 74% during that time.
The report "tells a story that no one else is talking about," Pearson-McNeil said. While media tends to emphasize stories about poverty and lack of education in the black community, "if that's all you're being fed, that's all you know about yourself, it's all brands know about you."
Indeed, while affluent blacks are seeing major gains in income, the overall wealth gap between blacks and whites in the U.S. has been persistent for decades. In 2013, the median wealth for a white family was $134,008 compared to $11,184 for black families.
According to Census data released this week, some 26.2% of blacks were in poverty in 2014. And black children are also more likely to live in poverty than children of other races.
Part of what's driving the economic numbers for affluent blacks is the influx of black immigrants to the United States, which account for 8.7% of the overall black population, or one in every 11 blacks, according to Nielsen's report.
According to the report, the median household income for foreign-born blacks is 30% higher than that of blacks born in the U.S. "As we move into the presidential election season, immigration is top of mind, but the black population is rarely included in that discussion," Pearson-McNeil said.
Blacks are also seeing gains in education, with college enrollment among this group hitting 71% last year and high school graduation rates hovering at about the same percentage. Yet blacks are still significantly underrepresented in many high-paying fields. In 2011, they comprised 6% of workers in science and technology jobs and about 7% of medical school students.
Black consumers are also driving change in media, particularly on television. Shows like ABC's "Scandal" and "How to Get Away with Murder" and Fox's breakout hit, "Empire" all feature prominent black leads and supporting casts and have each done consistently well.
