MULTICULTURAL AUDIENCES. pandoraforbrands.com

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1 T H E A D V E R T I S E R S G U I D E T O MULTICULTURAL AUDIENCES pandoraforbrands.com

2 INTRODUCTION Did you know that in just 30 years the multicultural minority in the United States will grow to become the majority of our population? 3 If you aren t already thinking about it, now is the time to develop a marketing strategy that reaches these influential audiences. Pandora s Advertiser s Guide to Multicultural Audiences contains everything you need to know to market effectively to multicultural consumers. Combining Pandora s proprietary insights and trusted third-party data, this report provides a fresh perspective on the habits and preferences of Hispanic, Black and Asian-Americans across four key areas. We'll dive into these trends and more in the rest of this report. So keep reading to understand how you can energize your multicultural marketing strategy today. 1 THE FUTURE IS NOW A growing U.S. multicultural population has long made news headlines. Today, the future is upon us. Given the rising socio-economic conditions of many multicultural consumers, marketers have an opportunity to engage a segment of the U.S. population that is on-track to become a major economic driver. 2 CONNECTED & IN CONTROL Younger than the rest of the U.S. population, multicultural consumers use technology at higher rates and more intensely than their non-multicultural counterparts. With growing connectivity and device usage, these audiences frequently use technology to shape and express their cultural identity. Brands can harness this special connection between technology and culture to win among multicultural audiences. 3 CULTURE MATTERS Multicultural consumers are deeply connected to their culture an influence that only grows stronger as populations increase and demographics shift. In media, experiences that acknowledge and respect culture are increasingly valued. Understanding exactly how culture influences consumer behavior will be essential to earning long-lasting brand loyalty. 4 THE ULTIMATE UNIFIER: MUSIC Music is universally seen among multicultural audiences as a way to connect with their heritage and culture. Each audience exhibits distinct music listening patterns that can help marketers unlock the most relevant and culturally-aligned ways to engage them. 1

3 TERMINOLOGY HISPANIC We use Hispanic to refer to inhabitants of the U.S. who are of Latin American or Spanish descent. Although this term is often used interchangeably with Latino, there are key differences. Hispanic refers to those originating from Spanish-speaking countries, including Spain and Latin America, except Brazil. Latino, on the other hand, refers to those from any Latin American country, including Brazil. While most Hispanics prefer to name their family s country of origin over pan-ethnic terms, for the purposes of this report, we ll focus only on Hispanic trends. BLACK-AMERICAN A recent Pandora study revealed that 85% of listeners identify as Black-American, while 49% identify as African-American. 2 While the terms Black-American and African-American are often used interchangeably, the research in this report also includes insights on people who have ties to Africa and the Caribbean. So, for our purposes, we ll refer to this multicultural audience as either Black or Black-American. ASIAN-AMERICAN The term Asian-American generally refers to any U.S. inhabitant who has Asian or Pacific Islander heritage. Because this includes many distinctly unique countries and cultures, the terms Asian, Asian-American and Asian Pacific American are commonly used to refer to specific regions. For the purposes of this report, we ll use the singular term Asian-American to refer to all U.S. inhabitants of Asian or Pacific Islander origin. 2

4 THE FUTURE IS NOW MULTICULTURAL CONSUMERS currently control more than $3.4 trillion in buying power thanks to growing population size, rising education levels and a strong inclination towards entrepreneurialism. 4 Making up 38% of the total U.S. population and amounting to 120 million people in total, the influence of Hispanic, Black and Asian-Americans is expected to grow over the next 30 years. 3 For marketers and brands hoping to reach these audiences, it s important to recognize that the future is already underway. The U.S. Census Bureau projects these racial groups to become a numeric majority by 2044 and grow to 53% of the U.S. population by Soon enough, a brand s longevity and general market success will hinge on how well they can connect with multicultural audiences. 3

5 THE FUTURE IS NOW US POPULATION PROJECTIONS (MILLIONS) % OF THE POPULATION COLLEGE ENROLLMENT RATE 9 HOME OWNERSHIP RATE 10 MEDIAN HOUSEHOLD INCOME 8 BUYING POWER (BILLIONS) NON HISPANIC WHITE M 199M 199M 195M 188M 63% 70% 66% $62,950 $11,464 HISPANIC M 64M 77M M 17% 72% 45% $45,148 $1,392 BLACK M 49M 55M 61M 67M 14% 58% 41% $36,898 $1,205 ASIAN M 25M 31M 38M 45M 6% 92% 54% $77,166 $ M 100M 150M 200M Source: Nielsen Media Research

6 THE FUTURE IS NOW HISPANICS Hispanics are the largest minority group in the U.S. 3 They accounted for more than half of the nation s population growth between 2000 and 2014 even during the economic downturn of the Great Recession. 10 Interestingly, 78% of this growth can be attributed to U.S. births rather than immigration, evidenced by the fact that nearly onethird of the U.S. Hispanic population is 18-years-old or younger. 11 Most U.S. Hispanics are of Mexican origin or ancestry, 13 often settling in border states like Arizona, California, New Mexico and Texas. 14 Puerto Ricans make up the second largest Hispanic segment due to a historic increase in migration from Puerto Rico to the U.S. mainland after World War II and in the early 2000s. 15 Salvadorans, Cubans, Dominicans, Guatemalans and Colombians make up the rest, each roughly 1 million people in size. 12 Hispanics continue to gain economic influence in the U.S., with the average household income reported at TOP HISPANIC DMAs 1 LOS ANGELES 2 NEW YORK 3 MIAMI 4 HOUSTON 5 DALLAS 6 CHICAGO 7 SAN ANTONIO 8 SAN FRANCISCO 9 PHOENIX 10 HARLINGEN Nielsen Media Research 2016 $45,000 in 2016, a 6.1% increase from two years prior. 7 Accompanying this growth in income is a rising emphasis on education. In 2016, 72% of U.S. Hispanics had graduated high school and enrolled in college, exceeding the 69.7% enrollment rate of Non-Hispanic Whites. 8 This rise in income and better education has resulted in greater instances of entrepreneurialism among this group. The most recent U.S. census report counted 3.3 million Hispanic-American firms, or 12% of all U.S. businesses. 16 IN 2016, 72% OF U.S. HISPANICS HAD GRADUATED HIGH SCHOOL AND ENROLLED IN COLLEGE, EXCEEDING THE 70% ENROLLMENT RATE OF NON-HISPANIC WHITES 5

7 THE FUTURE IS NOW BLACK-AMERICANS Today s U.S. Black population is growing 64% faster than the rest of the U.S., 3 indicating that this audience is experiencing an increased level of influence on the U.S. economy. Yet while the majority of Black-Americans are native-born, there s been rapid immigration growth from Africa and the Caribbean since The latest U.S. census report projected that 16.5% of Blacks will be immigrants by 2060 resulting in greater diversity within this segment. 17 Collectively, Black-Americans control $1.2 billion in buying power, driven TOP BLACK- AMERICAN DMAs 1 NEW YORK 2 ATLANTA 3 WASHINGTON DC 4 CHICAGO 5 PHILADELPHIA 6 LOS ANGELES 7 HOUSTON 8 DALLAS 9 DETROIT 10 MIAMI by increases not only in population, but also income, education and entrepreneurialism. Although U.S. Blacks still face challenges in overall economic well-being (i.e. wealth, income and homeownership) compared to other multicultural groups, there has been a 4.1% increase in median household income between 2014 and 2015 for Black families 8 the first recorded increase for this audience since Similarly, U.S. Blacks have seen improvement in education attainment. The high school dropout rate declined from 21% in 2004 to 16% in Currently, 85% of Blacks aged 25 and older have graduated high school and 20% hold a bachelor s degree. 17 Entrepreneurialism is one way this audience is bridging the gap in wealth. Black-owned businesses have increased 34.5% between 2007 and Most Black-owned firms make it a priority to hire from within the communities they serve, helping provide better income opportunities for other Black-Americans. ENTREPRENEURIALISM IS ONE WAY THIS AUDIENCE IS BRIDGING THE GAP IN WEALTH. BLACK-OWNED BUSINESSES HAVE INCREASED 34.5% BETWEEN 2007 AND Nielsen Media Research

8 THE FUTURE IS NOW ASIAN-AMERICANS Asian-Americans account for 6% of the total U.S. population. 3 Yet despite smaller numbers, they are one of the highest earning, most educated and fastest growing multicultural groups in the U.S. In fact, they recently replaced Hispanics as the largest source of recent immigration; nearly 80% of Asian-American adults today were born outside the U.S. 19 Asian-Americans are unique in that they represent an incredibly vast number of Asian and Pacific Islander countries each with distinct languages, religions, history and beliefs. Asian-Americans of Chinese origin represent 4.5 million people, the largest of all Asian-American segments. Other countries represented include: India (3.8 million), the Philippines (3.8 million), Vietnam (2 million), Korea (1.8 million) and Japan (1.4 million). 20 With a 94% college enrollment rate, the level of education among TOP ASIAN- AMERICAN DMAs 1 LOS ANGELES 2 NEW YORK 3 SAN FRANCISCO 4 HONOLULU 5 CHICAGO 6 WASHINGTON DC 7 HOUSTON 8 SEATTLE 9 DALLAS 10 PHILADELPHIA Nielsen Media Research 2016 Asian-Americans exceeds that of any other multicultural segment. Over half (52%) of Asian-Americans aged 25 and older have a bachelor s degree or higher level of education, compared to just 31% of all Americans in the same age bracket. 20 A strong affinity for math and science have led many Asian-Americans to pursue high-earning careers in the fields of science, engineering and medicine. 22 The average household income for an Asian-American family is over $77,000, making them the wealthiest multicultural group in the U.S. and an attractive cohort for marketers looking to reach an affluent audience. 7 Asian-Americans also reflect an entrepreneurial mindset exemplified by self-reliance, innovation and resilience. 22 They are the majority owners of almost 2 million businesses in the U.S., with average earnings of $359,000 per business. 18 THE AVERAGE HOUSEHOLD INCOME FOR AN ASIAN-AMERICAN FAMILY IS OVER $77,000, MAKING THEM THE WEALTHIEST MULTICULTURAL GROUP IN THE U.S. AND AN ATTRACTIVE COHORT FOR MARKETERS LOOKING TO REACH AN AFFLUENT AUDIENCE 7

9 CONNECTED & IN CONTROL MULTICULTURAL AUDIENCES in the U.S. tend to skew young, with 53% of Gen Z and 40% of Millennials identifying as multicultural or of mixed race. 5 This youthful energy translates to a special relationship with technology among Hispanic, Black and Asian-Americans. These groups tend to be early adopters of new technologies, often using them to carve out their own path to success. In particular, smartphones rise to the top as the preferred connected device among multicultural groups for easy access to information, social connections and cultural expression. Understanding how these audiences manage their always-on, constantly-connected lives can unlock important insights for marketers trying to reach them. ANY SMARTPHONE ANY TABLET SUBSCRIPTION VOD VIDEO GAME CONSOLE ENABLED SMART TV HOUSEHOLD DEVICE PENETRATION TOTAL POPULATION HISPANIC BLACK ASIAN TOTAL POPULATION HISPANIC BLACK ASIAN TOTAL POPULATION HISPANIC BLACK ASIAN TOTAL POPULATION HISPANIC BLACK ASIAN TOTAL POPULATION HISPANIC BLACK ASIAN Source: Nielsen The Total Audience Report, Q

10 CONNECTED & IN CONTROL HISPANICS Hispanic households have the highest penetration of connected devices across nearly every new technology. It s these devices that give Hispanics access to content that speaks to their culture and provides ways for them to share with the global Hispanic community. Among multicultural audiences, Hispanics were the first to jump on the smartphone trend, helping to close a long-standing gap in internet penetration. They are also twice as likely than the general population to rely on smartphones for access to the internet, a product of both their culture and young age. 24 Yet despite an increase in Hispanic connectivity, there remains a small gap in internet use, with only 80% of U.S. Hispanics using the internet compared to 84% of the total population. 23 Young Hispanics, especially, use their mobile device as a way to define their personal identity. Nearly 3 in 10 agree that their phone is an expression of who they are, compared to only 1 in 10 of Non-Hispanic Whites and Hispanics aged 50 years and older. 25 Because culture is an important part of their identity, these young Hispanics tend to spend a significant amount of time on music apps like Pandora. In fact, 53% say music apps are their favorite type of Spanish language mobile app, followed by media and entertainment apps (40%), games (35%) and news apps (33%). 26 Social sharing is another important element in Hispanics device usage, helping to build a global community they can connect with. Social media and messaging apps allow them to connect with family in the U.S. and abroad, and in their language of choice. It s estimated that 62.7% of Hispanics will use online social networks at least once a month this year, just slightly higher than the 58.5% figure for the total U.S. population. 24 NEARLY 3 IN 10 AGREE THAT THEIR PHONE IS AN EXPRESSION OF WHO THEY ARE, COMPARED TO ONLY 1 IN 10 OF NON-HISPANICS WHITES AND HISPANICS AGED 50 YEARS AND OLDER 9

11 CONNECTED & IN CONTROL BLACK-AMERICANS Black-Americans are young and connected as well, using technology even more intensely than their multicultural counterparts. For them, technology provides a way to express their cultural identity and broadcast issues that matter to their community. Fascinated by new technology, Black-Americans are among the first of their friends to try a new device. 28 This trend has helped close a long-standing gap in internet use, in which 83% of Black-Americans use the internet compared to 84% of the total U.S. population. 23 Smartphones, in particular, are a favorite way to connect. The average Black-American spends three or more hours on apps and mobile web than the general population. 27 Black consumers are adept at using digital platforms to communicate with the world around them. Social media not only helps maintain relationships with colleagues, family and friends, but has also shown to be an effective platform to start movements and affect change. In many ways, this audience has revolutionized social media engagement and elevated social platforms to more than just a source of communication and entertainment. #BlackLivesMatter, #BankBlack and #OscarsSoWhite are just a few examples of social media hashtags that have garnered national attention on issues of social, civic and political importance. 18 Technology is also giving U.S. Blacks the power to carve out their own path to success. Music artists, actors and producers are forging new models for content distribution, breaking long-standing barriers in music and entertainment. Chance the Rapper received critical acclaim with his streaming-only album Coloring Book, and HBO s Insecure inspired by Issa Rae s popular web series The Misadventures of Awkward Black Girl has seen success with both Black and non-black viewers. The ability to create and promote content has inspired a cultural renaissance for Black-Americans, where the voices and faces of talented members of this multicultural audience are reaching the masses like never before. FASCINATED BY NEW TECHNOLOGY, BLACK-AMERICANS ARE AMONG THE FIRST OF THEIR FRIENDS TO TRY A NEW DEVICE 10

12 CONNECTED & IN CONTROL ASIAN-AMERICANS Asian-Americans are the earliest adopters of new technology, outpacing every other consumer segment in the penetration and usage of emerging media. But most importantly, this audience is helping shape the future of content consumption by using a range of devices to access content they enjoy. While Asian-American internet penetration has been ahead of the total population, the gap has now closed. Today, both Asian-American and total households have an internet penetration rate of 84%. However, Asian-Americans do continue to lead in t smartphone and multimedia device penetration. 23 For instance, 93% of Asian-American households use a smartphone compared to just 85% of general U.S. households. Similarly, 51% of Asian-American homes own an Apple TV, Roku, Google Chromecast device or other types of connected TV device, 22% more than the overall TV household in the U.S. 27 Clearly, Asian-Americans have a track record of being ferocious technology adopters and content consumers, but now they are also becoming content creators. Actors, musicians and internet celebrities of Asian descent have an increasing presence in the entertainment space. The democratization of digital content has created a greater sense of inclusion among multicultural audiences, along with more opportunities for Asian-Americans to see people who look like them in the media. ASIAN-AMERICANS ARE THE EARLIEST ADOPTERS OF NEW TECHNOLOGY 11

13 CULTURE MATTERS MY ETHNICITY IS IMPORTANT IN DEFINING WHO I AM 29 83% HISPANICS 81% BLACK AMERICANS 72% ASIAN AMERICANS TRADITIONS AND CULTURE are the foundation upon which multicultural audiences build their individual and collective identities. Everything from shared values, music preferences and food help unify these groups around common experiences. Even despite differing immigration patterns, acculturation processes, demographic makeup and consumer behaviors, multicultural audiences tend to exhibit a strong collectivist mindset. This is exhibited when members of the community seek success for the good of the group. In fact, it s a strong connection to community and family that is universal among Hispanic, Black and Asian-Americans. These groups, in particular, share a strong sense of cultural identity among people of the same race or ethnicity and often this is felt even stronger than the connection they feel to U.S. culture. Brands that can develop an understanding of the various cultural aspects of each audience will also discover more opportunities to connect with them in authentic ways. 12

14 CULTURE MATTERS HISPANICS WHAT CONNECTS ME TO MY CULTURE: HISPANICS 30 74% MUSIC 73% FAMILY 59% FOOD 32% RELIGION 23% HOLIDAYS U.S. Hispanics come from a diverse range of social, economic and geographic backgrounds, each with their own unique traditions. Yet despite nuanced differences between Hispanic countries, U.S. Hispanics generally agree that music, family and food connect them most with their culture and sometimes take place simultaneously. Music and food have always played a central role in the Hispanic family dynamic, bringing the family together and helping maintain a sense of culture among younger generations. In fact, 72% of Hispanic millennial listeners on Pandora say they connect with their heritage most through music. 30 Hispanic culture also puts high value on the extended family. U.S. Hispanics are more likely to lean on family members for emotional and economic support, in addition to supporting relatives who live outside the U.S. To further emphasize family values, it s common for up to three generations to live in the same household or near each other, making it easy to come together for reunions and family gatherings. Another common way for U.S. Hispanics to connect with their culture is by speaking Spanish. Today, 55% of Hispanics are bilingual, 27% are English-dominant and 19% are Spanish-dominant. 11 But because bilingualism is a spectrum of Spanish and English proficiency, the role of Spanish is easy to underestimate in marketing. For instance, 81% of Pandora s bilingual listeners are also Spanish-proficient, 30 coming in and out of language depending on the activity. At Pandora, we ve found that bilingual Hispanics, even if they spend more time watching and reading in English, are more likely to use Spanish when listening to music. 30 SPOKEN AND HEARD LANGUAGE LIGHTS UP DIFFERENT PARTS OF THE BRAIN, ACTIVATING BOTH MEMORY AND EMOTION. LISTENING TO MUSIC COMPOUNDS THIS IT ACTIVATES LARGE SCALE NEURAL NETWORKS. LATINUM NETWORK, ADAPTIVE LANGUAGE STRATEGIES, MARCH

15 CULTURE MATTERS BLACK-AMERICANS Since the majority of Black-Americans are born in the U.S., it s mostly history that bonds them together culturally. Much of the Black tradition around family, music and food date back to slavery but continue to make waves in popular culture today. Specifically, slavery had a lasting impact on family life for Black-Americans, as evidenced by 85% saying that family is what connects them most to their culture. Black families continue to exhibit a collectivist mindset, where multiple generations live in the same household and children learn to respect and care for their elders. Friends are often designated as aunts, uncles, nieces WHAT CONNECTS ME TO MY CULTURE: BLACK AMERICANS 2 85% FAMILY 68% MUSIC 52% FOOD 45% RELIGION and nephews to provide the level of emotional, financial and psychological support the family needs. This sense of family is further strengthened by a tradition of communal worship. Nearly half of U.S. Blacks say that religion plays a major role in connecting them to their culture more so than other multicultural audiences. 2 Historically, the church has provided this community with not only spiritual support, but trusted leadership and a platform for activism. Also, education in historically Black colleges and universities (HBCUs) provided another institution to celebrate Black culture and foster academic advancement for the community overall. NEARLY HALF OF U.S. BLACKS SAY THAT RELIGION PLAYS A MAJOR ROLE IN CONNECTING THEM TO THEIR CULTURE MORE SO THAN OTHER MULTICULTURAL AUDIENCES 14

16 CULTURE MATTERS ASIAN-AMERICANS With Asian-Americans coming to the U.S. from an array of different countries and regions, it s important to understand that this multicultural audience, in particular, boasts a range of languages and cultural traditions. Yet while there are many differences among this group, Asian-Americans tend to come together in the way that they see the world. The dietary habits of many Asian-Americans reflect the unique food traditions from their country of origin. While some cultures see food as only a tool for sustenance, others see it as a way to experience refinement. The purpose of food among these cultures is pleasure, so a high degree of pride is taken in the preparation and eating. Asian-Americans are also more likely than other multicultural groups to eat all three meals a day with family members and more likely to enjoy a variety of foods in one sitting. 22 WHAT CONNECTS ME TO MY CULTURE: ASIAN AMERICANS 29 77% FOOD 73% TRADITIONS 71% FAMILY VALUES 56% LANGUAGE 36% MUSIC Asian-Americans place a strong emphasis on traditions and family values too. Most households (80%) are headed by a married couple and loyalty to the family unit is highly encouraged. 22 Even among younger generations, 73% are more likely than the general population to agree that meeting their parent s expectations is among their top five life values compared to other multicultural audiences. 22 Similarly, 53% are more likely than other consumers to feel significant pressure from their families to succeed. 22 Even though 62% of Asian-Americans speak English proficiently, 56% feel that language is another important way to connect with their culture. 22 From Mandarin, Cantonese and Tagalog, to Japanese, Vietnamese and many others, language provides Asian-Americans with a direct link to their heritage. NO ONE WHO COULD RISE BEFORE DAWN 365 DAYS A YEAR FAILS TO MAKE HIS FAMILY RICH CHINESE PROVERB 15

17 THE ULTIMATE UNIFIER: MUSIC THE PASSION POINT OF MUSIC has the power to connect people across generations, languages and cultures. But for multicultural audiences, in particular, music has the powerful ability to draw people back to their roots and make them feel connected to a larger community. In fact, it s this shared love of music that most races and ethnicities have in common. Whether the preferred genre of music reflects a specific country or area of origin, or is used to broadcast certain cultural views and ignite action, music plays a profound role in the lives of Hispanic, Black and Asian-Americans. It can be both a source of connection to cultural heritage, as well as a way to identify with American values. Brands looking to create emotional responses in a target audience will benefit by delivering their message through music, especially music that speaks on a deep level to a consumer s cultural identity. 16

18 THE ULTIMATE UNIFIER: MUSIC HISPANICS DONDE LAS PALABRAS FALLAN, LA MÚSICA HABLA HANS CHRISTIAN ANDERSEN, DANISH AUTHOR WHERE WORDS FAIL, MUSIC SPEAKS (TRANSLATED TO SPANISH) Hispanic culture has an especially rich history of music and dance, with different variations developing across regions and countries. Some of these musical traditions even act as sonic representations of the area s history and folklore. On Pandora, Hispanic-Americans represent some of the most active listeners and our Latin music stations attract some of the longest time spent listening. 33 So whether a listener enjoys Merengue and Bachata from the Dominican Republic, Salsa and Reggaeton from Puerto Rico and Cuba, Tango from Argentina, Cumbia and Vallenato from Colombia, or any of a wide range of regional Mexican genres it s obvious that listening to Latin music helps Hispanic-Americans feel closer to their heritage. Connecting with the Spanish language through music is an important aspect of this. On Pandora, we can identify Spanish-preferred Hispanic listeners as those who listen to and connect with Spanish language music more than 50% of the time. Listening habits can also help inform whether a listener is bilingual, Spanish-dominant or English-dominant. 1 OZUNA 2 BANDA SINALOENSE MS DE SERGIO LZÁRRAGA 3 MALUMA 4 BAD BUNNY 5 EL FANTASMA 1 OZUNA 2 MALUMA 3 BAD BUNNY 4 DRAKE 5 BRUNO MARS TOP ARTISTS FOR HISPANIC LISTENERS SPANISH PREFERRED BILINGUAL 6 VICENTE FERNANDEZ 7 ROMEO SANTOS 8 ARIEL CAMACHO & LOS PLEBES DEL RANCHO 9 LOS TEMERARIOS 10 CALIBRE 50 6 KENDRICK LAMAR 7 LUIS FONSI 8 NICKY JAM 9 BANDA SINALOENSE MS DE SERGIO LZÁRRAGA 10 ROMEO SANTOS Pandora Internal Data, July 4,

19 THE ULTIMATE UNIFIER: MUSIC BLACK-AMERICANS TOP ARTISTS FOR BLACK-AMERICAN LISTENERS 1 BRUNO MARS 2 MIGOS 3 FUTURE 4 2PAC (TUPAC) 5 DRAKE 6 KODAK BLACK 7 KENDRICK LAMAR 8 CHRIS BROWN 9 RIHANNA 10 BEYONCÉ Music is the ultimate expression of the Black experience, with 66% saying music is their daily companion. 2 Black-American musicians have left a significant mark on American music history, creating and advancing well-known genres like rock & roll, R&B, blues, jazz, hip-hop and rap. It s the contributions from Black-Americans specifically that have revolutionized the music industry through ingenuity and creativity. In the absence of a distinct language, most Black-Americans lean on music to communicate and broadcast their cultural views and attitudes. Throughout history, Black musicians have harnessed the passion point of music to inspire generations and ignite communities into action. Specific lyrics and sounds became the rallying cry behind powerful movements from Civil Rights to Black Lives Matter. As a result, the listening habits of Black audiences differ from the habits of other listeners. These listeners have an especially strong preference for genres like R&B, soul, hip-hop, gospel, reggae/soca/calypso, trap and others. 2 They are the first to listen to new songs and artists within these genres, and the intensity of their listening has helped catapult new artists and songs to the top of the charts. For brands looking to reach this influential audience, it s important to know that 81% of Black-Americans say brands feel more relevant when their ads feature music they like and listen to. 2 IN THE ABSENCE OF A DISTINCT LANGUAGE, MOST BLACK-AMERICANS LEAN ON MUSIC TO COMMUNICATE AND BROADCAST THEIR CULTURAL VIEWS AND ATTITUDES. Pandora Internal Data, July 4,

20 THE ULTIMATE UNIFIER: MUSIC ASIAN-AMERICANS Asian-Americans tend to fall in line with the listening habits of the general U.S. market. This is most likely because, historically, music produced in Asian countries has not gotten wide distribution in the U.S. However, this multicultural group is generally interested in both in-language and mainstream American music. The Asian music landscape in the U.S. recently expanded to include more culturally relevant artists with the global popularity of K-Pop (Korean pop) music, along with artists TOP ARTISTS FOR ASIAN-AMERICAN LISTENERS 1 BRUNO MARS 2 KENDRICK LAMAR 3 DRAKE 4 JUSTIN BIEBER 5 ED SHEERAN 6 MIGOS 7 RIHANNA 8 FUTURE 9 2PAC (TUPAC) like MC Jin, Girls Generation, PSY and Coco Lee. This caused a spike in listening for Asian musicians, and also helped establish the U.S. as the second largest territory for touring K-Pop artists. 32 Outside of K-Pop, few Asian musicians have found mainstream success. Artists like Bruno Mars, who is of Filipino and Puerto Rican descent, and Nicole Scherzinger, who is of Native Hawaiian-Filipino descent are just a few of those who ve truly "made it" in the American music scene. ASIAN-AMERICANS TEND TO FALL IN LINE WITH THE LISTENING HABITS OF THE GENERAL U.S. MARKET 10 LIL UZI VERT Pandora Internal Data, July 4,

21 CONNECTING ACROSS CULTURES Multicultural influence is surging. With expanding population size and buying power, these consumers are redefining what s mainstream. As marketers, the future is already here. It s essential to develop marketing plans and strategies that resonate with the unique qualities each of these audiences have. No longer will a broad, general market approach to multicultural advertising work, Marketers must think culture-first if they want to create lasting brand connections with their target audience. Prioritizing digital and authentic connections across cultural touch points will be the secrets that unlock tangible results for any multicultural marketing effort. Pandora is here and ready to help with millions of active listeners and a range of data-driven, engagement-based targeting and ad solutions to make your message sing. Get in touch at PANDORAFORBRANDS.COM to start a conversation about multicultural marketing PRIORITIZING DIGITAL AND AUTHENTIC CONNECTIONS ACROSS CULTURAL TOUCH POINTS WILL BE THE SECRETS THAT UNLOCK TANGIBLE RESULTS 20

22 SOURCES & METHODOLOGY 1 Advertising Age, In Plain Sight: The Black Consumer Report, April Pandora Soundboard, Black American User Study, May U.S. Census, Population Estimates, January Nielsen, The Multicultural Edge: Rising Super Consumers, March Pew Research Center, Tabulations of U.S. Census Bureau Population Projections, April Selig Center for Economic Growth, Terry College of Business and The University of Georgia, The Multicultural Economy 2016, November U.S. Census, Income and Poverty in the United States: 2015, September Bureau of Labor Statistics, College Enrollment and Work Activity, April Bureau of Labor Statistics, 2015 Consumer Expenditure Survey, April 2017 Report 10 Pew Research Center, U.S. Latino Population Growth and Dispersion Has Slowed Since Onset of the Great Recession, September Nielsen, Hispanic Consumer Report, August Pew Research Center, Fact Tank, September Pew Research Center, Statistical Portrait of Hispanics in the United States, April Pew Research Center, Mapping the Latino Population By State, County and City, April Pew Research Center, Puerto Rican Population Declines on Island, Grows on U.S. Mainland, August Stanford Business, State of Latino Entrepreneurship, December U.S. Census, Black Population Trends, January Nielsen, African American Consumer Report, October Pew Research Center, U.S. Hispanic and Asian populations growing, but for different reasons, June U.S. Census, Asian Trends, May Nielsen, Asian American Consumer Report, May R. Kumaki & J. Moran, Many Cultures, One Market - A Guide to Understanding Opportunities in the Asian Pacific American Market, July emarketer, US Hispanics and Digital Usage: How They Differ from Non-Hispanics and from One Another, June Pew Research Center, The information engaged and wary survey 2016, January Simmons Research, Fall 2016 National Hispanic Consumer Study. April Yahoo Audience Theory and Ipsos, 3rd Gen Hispanics: What Drives Them, Inspires Them, and How to Make the Brand Connection, October Nielsen, Total Audience Report, Q Nielsen, African American Consumer Report, October, Pandora Soundboard, The Culture Survey, January Pandora Soundboard, Hispanic User Study, January Simmons, Summer 2016 NHCS Adult Study 32 Nielsen, Listen Up- Asian Americans and Music, August Pandora, Internal Metrics, June 2017 pandoraforbrands.com