Beyond the Broadcast: Why Video Advertising Is Your Key to Reaching America’s Multicultural Mainstream
The New American Mainstream is Here
The U.S. consumer landscape is undergoing a significant demographic shift, establishing multicultural audiences as the new, undeniable mainstream. To unlock growth, brands must evolve beyond outdated strategies and connect authentically with these diverse and influential communities. Video advertising, particularly across streaming platforms, has emerged as a uniquely powerful and essential tool for this competitive imperative. For brands that get it right, the opportunity is immense: multicultural households now command over $7 trillion in buying power.
The Investment Gap: A Trillion-Dollar Opportunity in Plain Sight
Engaging multicultural consumers is no longer a niche strategy but a core business necessity. The demographic and economic data underscore a market ripe with potential, yet it remains critically underserved by current advertising investment—creating a clear opportunity for savvy brands to gain market share.
- Population Power: Multicultural segments now constitute over 40% of the U.S. population, a figure that continues to grow and drive the nation’s future.
- Investment Gap: Despite their significant presence and economic clout, only about 6% to 7% of total advertising investment is directed toward multicultural audiences.
- The Vicious Circle: This disparity is perpetuated by what marketing expert Lisette Arsuaga describes as a “vicious circle.” Deficient measurement of multicultural audiences leads to their contributions being under-attributed. This, in turn, results in underinvestment, which hinders the development and expansion of diverse media platforms and creators.
Why Video Is the Ultimate Connection Engine
Video, and streaming video in particular, is the most effective channel for reaching and resonating with multicultural audiences. These consumer groups are at the forefront of the video streaming boom, adopting on-demand services at a faster rate than the general population and fundamentally reshaping the advertising landscape.
- Hispanic Viewers: According to Nielsen data, 43.6% of all TV time for Hispanic audiences is spent on streaming video platforms.
- Asian American Viewers: According to Nielsen data, Asian households dedicate 43% of their TV time to streaming content, a rate that is 26.9% higher than that of the general population.
- Cross-Platform Dominance: Data from Comscore reveals that YouTube on connected TV (CTV) ranks number one in both reach and watch time among all ad-supported streaming services for households identifying as Black, Asian, or Hispanic/Latino.
For these viewers, media habits are deeply intertwined with the search for authentic representation. Research shows that culture is responsible for over 60% of a campaign’s success, highlighting that what you say and show is just as important as where you say it.
Deep Dive: Connecting with Key Segments Through Video
While streaming video is the dominant channel, connecting effectively requires understanding that authentic representation means different things to different communities. Future-proofing your brand means mastering the unique characteristics and media behaviors of specific multicultural segments.
The U.S. Hispanic Market
Market Snapshot:
- Scale: The U.S. Hispanic population numbers over 66.5 million people.
- Youth: It is a young demographic with a median age of 31.
- Discretionary Spending: Hispanic households account for 13% of all discretionary spending in the U.S.
Video Behavior & Insights: Hispanic consumers are mobile-first, spending seven hours more than the U.S. average watching video on their smartphones. This market is not a monolith; cultural nuances related to country of origin are critical for authentic engagement. However, the Spanish language serves as a powerful symbol of cultural respect. Nearly two-thirds of English-dominant Hispanics agree that companies advertising in Spanish respect their culture, demonstrating that in-language ads can build loyalty even with bilingual audiences.
Strategic Takeaway: Prioritize mobile-first video creative in both Spanish and English, using country-of-origin cultural cues to build trust and drive engagement on social platforms.
The Asian American Market
Market Snapshot:
- Growth: They are the fastest-growing racial or ethnic group in the U.S., with a population of over 21.1 million.
- Economic Clout: The median Asian household income is $103,903, approximately 41% higher than the U.S. median. The average U.S. Asian household will spend over $1 million more than the average U.S. household over the remainder of their lifetimes.
- Buying Power: Asian American buying power surged by an incredible 314% between 2000 and 2019.
Video Behavior & Insights: As a tech-savvy and digitally connected segment, Asian American audiences are highly engaged with video content. They index high for using CTV devices like Apple TV and Google Chromecast, and 47% of Asian American viewers trust recommendations from streaming platforms. Given the vast ancestral diversity within this group, successful marketing must go beyond simple translation to be “in-culture,” reflecting the specific values, traditions, and experiences that resonate with different communities.
Strategic Takeaway: Deploy in-culture video on CTV and streaming platforms where trust is high, leveraging platform recommendations and ancestral nuances to connect with this high-value, tech-forward audience.
The Black Consumer Market
Market Snapshot:
- Population: Black consumers constitute close to 14% of the U.S. population.
- Cultural Influence: Their impact on U.S. culture and society far outweighs their numbers, driving trends in music, fashion, and media.
Video Behavior & Insights: Black consumers are strong users of online entertainment, with YouTube and Instagram ranking as the most popular social platforms. This audience holds enduring values of cultural pride and community. Therefore, your video strategy must move beyond casting and stereotypes. Invest in narratives that authentically reflect, celebrate, and empower the diverse experiences within the Black community to build genuine loyalty.
Strategic Takeaway: Invest in creator-led content on YouTube and Instagram that champions community and cultural pride, moving beyond stereotypes to build genuine brand loyalty and cultural capital.
The Middle Eastern/North African (MENA) Segment
Market Snapshot: A distinct Middle Eastern/North African (MENA) category was not included in the 2020 Census. However, in 2024, the Office of Management and Budget (OMB) updated its standards to require a new “Middle Eastern or North African” minimum reporting category in future federal data collections, including the 2030 Census.
Engagement Insights: This segment is highly attuned to brand actions and their relationship to global events. Recent consumer boycotts in the MENA region demonstrate that brands must be highly aware of geopolitical sensitivities. It is a competitive imperative to maintain proactive mitigation plans to avoid actions or associations that could lead to significant reputational damage.
Strategic Takeaway: Maintain a proactive geopolitical risk mitigation plan. Your brand’s actions and associations matter immensely to this highly attuned audience, and missteps can lead to significant and rapid reputational damage.
From Seasonal Campaigns to an “Always-On” Commitment
The demographic transformation of the United States makes engaging multicultural audiences a fundamental business necessity. Success requires moving beyond seasonal acknowledgments during designated heritage months to an “always-on” strategic commitment. This is how brands can break the “vicious circle” of underinvestment: by transforming a systemic problem into a competitive advantage. By committing to sustained, intelligent investment in diverse audiences and media, brands not only correct for market deficiencies but also fuel the growth of the very platforms that can best reach the new American mainstream. Authentic, culturally intelligent video advertising is no longer a “nice-to-have”; it is the essential engine for building lasting loyalty and driving sustainable growth.