Digital Advertising Overview: the U.S. (by MGID) (1)
GENERAL INFORMATION
- The U.S. has the second-largest purchasing power in the world;
- Its GDP growth is expected to reach 2.1% in 2019 and then drop to 1.8% in 2021. Nominal GDP per capita is about $62,606. The U.S. takes 8th place in the world ranking;
- The country consists of 50 states. Each state has a unitary government;
- White Americans represent the racial majority (61,3% of the population). The largest minority are African Americans (12.7% of the population). Hispanic and Latino Americans are the largest ethnic minority (17.8% of the population).
- 80% of the population speak English, 12.4% speak Spanish.
CONSUMER BEHAVIOR
The U.S. economic activity mainly depends on consumer spending, which makes up two-thirds of its part. Consumers prefer variety in the choice of products and willingly buy foreign products. On the whole, Americans are well-off and have diverse tastes. They also look for affordable products, quick delivery options, and an easy return policy.
MILLENNIALS
They are reluctant to marry and have children and tend to live longer with their parents. According to statistics, since 1960 the number of young people who marry and live at their own expense has decreased by 50 percent. Furthermore, millennials are not as interested in owning real estate, cars, and luxury products as they are in renting necessary things without the burdens of ownership. This trend is called a “sharing economy”. And of course, in products and services, they value quality most of all, and not price (unlike other generations).
As for hobbies, today they are obsessed with well-being and sports activities. Tracking bracelets, health apps, nutritional supplements - they will willingly spend money on such products.
Millennial moms tend to compare prices, use coupons, look for discounts and loyalty programs and find better deals more likely than the average American consumer.
HISPANIC AMERICANS
- Today, the U.S. Hispanic population makes up 17.8% and continues to grow. Its buying power was $1.1 trillion in 2010 and is estimated to reach $1.72 in 2020.
- Hispanics pay more attention to online ads than other online users;
- They tend to rely on online sources while deciding on the purchase;
- Ads with elements of Hispanic culture attract more attention. 88% of Hispanics pay attention to those kinds of ads. So you should speak to their cultural sensibilities. Try to use food, traditions, holidays, and family in your creatives, to make them more appealing;
- This audience is bilingual. So you can use both English and Spanish terms;
- The U.S. Hispanics are also big video consumers. According to a Nielsen report, an average Hispanic user spends over 90 minutes longer than the U.S. average on watching online videos.
DEVICE USAGE (Percentage of the adult population)
78% of citizens use smartphones and the distribution of laptop and tablet usage is 77% and 46% respectively.
E-COMMERCE VALUE (Statista)
- Revenue in the eCommerce market amounts to US$365,207m in 2019.
- Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 11.6%, resulting in a market volume of US$565,696m by 2023.
- User penetration is 79.9% in 2019 and is expected to hit 83.0% by 2023.
- The average revenue per user (ARPU) currently amounts to US$1,388.73.
PAYMENT METHOD
43% of Americans tend to pay via credit/charge card, with debit cards accounting for 30% of the market. Paypal is another preferred online payment option
BEST-PERFORMING VERTICALS
We suggest testing diverse products on the American market: from nutra, dating, money-making, to insurance, loans, and banks.
CREATIVE’S TIP
- Americans take a very long time deciding to marry someone, while for many years they can be in a relationship with one person. So, do not focus on the wedding as the apogee of love and romantic relationship in your ads;
- Offending a woman entails serious consequences. Compliments about the appearance and sassy flirting with a strange girl are unacceptable. A joke with sexual overtones at work threatens with dismissal regardless of the position and status of the offender. Jokes about sex at work can lead to a dismissal regardless of the position;
- Americans google everything and really love the answers they find on questions that have not yet arisen, or quite obvious advice, especially about love relationships or sexual life;
- One part of Americans believes that we live once so there is no need to limit yourself in donuts, tons of ice cream, and buckets of crispy wings. Other part of them are followers of vegetarianism, veganism, and organics. Their diets consist only of "gluten-free" or "BIO" products, kombucha, chia seeds, and greens. There are also moderate fans of healthy eating. These individuals tend to go on all kinds of diets, use detox supplements and do exercises in exchange for a cheat meal. Thus, first think about your target audience while mastering creatives;
- According to the study conducted by United Parcel Service, 51% of the U.S. residents prefer buying products online rather than visiting traditional shopping malls. They command almost everything up to a cup of coffee at home and are constantly on the search for more convenient and quick delivery options;
- Halloween is celebrated on a larger scale than anywhere else in the world. Don’t forget also about Black Friday sales;
- Public transport is the prerogative of the low-class and homeless people. Cars purchased on a lease, rental vehicles to avoid traffic jams are the main means of transport of an authentic American;
- According to a recent Experian study, American has an average of $6,506 in credit card debt. So you see why they willingly take loans. We suggest mentioning this pain while making your creatives;
- Cash is almost outdated, so we suggest not to mention the rustling of banknotes as the sweetest sound. Authentic Americans have already forgotten how it sounds;
- Beauty blogger reviews have a big impact on the consumer’s decision-making process.
MGID traffic distribution is the following: desktop (28%), mobile (66%) and tablets (6%). Overall, MGID processes around 3.5 million clicks per week in the U.S.
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MGID team
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