Asian-American consumers’ buying power projected to reach $1.6 trillion by 2024: Nielsen report

indica News Bureau-

Asian Americans are cutting the cord at a rate twice that of the total population; are 15 percent more likely to engage with news via social media; and 82 percent of AAPIs subscribe to at least one streaming service, according to a newly released report by Nielsen, “Engaging Asian American Consumers at the Dawn of a New Decade.” The report is part of Nielsen’s Diverse Intelligence Series.

This report has stated that the Asian-American consumers have captivated marketers for years, and their buying power is projected to reach $1.6 trillion by 2024; at present it’s $1.2 trillion. However, the report has narrowed down the Asian American consumer behaviors to two important industry trends: First, the media platforms that are winning among Asian Americans amid the streaming wars and the content that is capturing their attention. Second is the gaming industry that is breaking boundaries as entertainment, and how Asian Americans are integral to its ecosystem as gamers, spectators, and content creators.

“It’s Asian American Pacific Heritage Month, and despite the current crisis, Asian Americans have much to celebrate. For years, this fast-growing, highly diverse multicultural group has been largely ignored by marketers, for reasons varying from “too many diverse subcultures” to “too many different languages” to “the general market advertising will reach them.” We’re seeing that now, more than ever before, Asian Americans are a galvanized group (the fastest-growing multicultural group in the U.S. with a buying power of $1.2 trillion), presenting more opportunities for brands to build trust and an emotional connection with them,” the report said.

“According to our latest Total Audience Report, 90% of all Asian American households own internet-connected TV devices, compared with 76% of the total U.S. population. While this trend is not new, the sheer amount of streamed content and the use of internet-connected devices among Asian American homes continues to grow. Today, more than ever, marketers are relying on digital platforms to sell their products. As early digital adopters, Asian American consumers can help deliver an immediate sales boost for those digitally savvy brands who make the effort to target them where they are,” it added.

The report cited Netflix, whose programming includes Ken Jeong and Ali Wong’s comedy specials and the “Ugly Delicious” food show hosted by chef David Chang.

On gaming, the report found that Asian Americans are 14% more likely to own gaming consoles than other U.S, residents.
The U.S. Asian American population is the fastest-growing group of all major ethnic and racial groups among eligible U.S. voters, according to a Pew Research Center analysis. They make up more than 11 million, or nearly 5%, of the electorate.

“Marketers and content creators don’t, however, need to rely solely on video content to engage Asian Americans. Now more than ever, marketers can better reach the younger, affluent Asian American in the 18-34 age group, through games and esports live streams. With a lot of screen time, especially during a period when people are spending more time indoors, young Asian Americans are a lucrative and captive audience. Over one-in-four Asian American gamers say they watched an esports tournament live stream in the last three months, and 40% spend more than 5 hours a week watching gaming video content, “the report said.

Asian American households also spend significantly more time engaging digital devices, allotting 66 percent of their time on computers, smartphones and tablets, the highest ratio among all consumer segments. Asian Americans as a group are also engaging with TV on more devices that require an internet connection, like Apple TV, Amazon Fire and Roku — 49 percent versus 44 percent of the total population.
They are also increasingly turning to digital and streaming platforms where culturally relevant programming featuring diverse talent can be found: this includes episodic series and comedy specials with Asian American leads, like “Ugly Delicious” and “Patriot Act with Hasan Minhaj” on Netflix and “PEN15” on Hulu.

“This report encapsulates the incredible contributions of Asian Americans to our country’s economic and cultural landscape, which will be important for marketers to recognize” said Frank Washington, CEO and Owner, Crossings TV. “Given the stress COVID-19 has placed on the Asian community in particular, thoughtful outreach at this time is highly likely to result in a path to brand loyalty.”

“Times have changed, and Asian Americans have taken the spotlight in an array of roles and programming that highlight their true stories and heritage. In the early 2000s, for example, YouTube came on the scene. Then came blogs, social media and mobile video platforms, which offered Asian American artists the creative freedom to tell their stories, independent of Hollywood’s traditional gatekeepers. Today, streaming platforms offer a new stage for Asian American voices. Actors like Ken Jeong, Mindy Kaling, Ali Wong and Awkwafina are also taking over behind the camera. These authentic voices have helped galvanize the Asian American community. Instead of wondering what the future holds, brands can shape that future alongside the Asian American community,” the report concluded.