How to Reach Affluent African Americans

Adweek: How to Reach Affluent African Americans

By not targeting this key segment, some marketers may be missing out.

Of all the sins marketers commit, few evoke more scorn from peers than that of "leaving money on the table." If there's a population willing and able to buy what you're selling — if you'd only ask, in a reasonably competent way, that it do so — then failure to reach those people is a needless blow to your brand. A forthcoming book, titledl Back Is the New Green: Marketing to Affluent African Americans, makes the case that luxury marketers are guilty of missing out on one such lucrative market. Written by Leonard Burnett Jr. (co-CEO and group publisher of Uptown Media Group and Vibe Lifestyle Network) and Andrea Hoffman (CEO of consultancy Diversity Affluence), the book also offers counsel on how to go about reaching "AAAs," its shorthand term for "affluent African Americans."

Slated for publication in March via Palgrave Macmillan, the book says many luxury brands appear oblivious to the fact there's any such thing as an AAA audience, even though such households now deploy some $87 billion in disposable income. With the image in their heads of a handful of wealthy black athletes and entertainers, these marketers overlook the existence of 340,000-plus AAA households — headed by professionals, corporate executives, entrepreneurs and the like — with yearly income of at least $150,000.

But there are also, as the book notes, brands that have been savvy enough to go after AAAs, though not savvy enough to do it well. One problem is that marketers often seem to adopt a hip-hop approach as their default mode in addressing black consumers, irrespective of the age or social class of the audience they're hoping to reach. Sure, interest in hip-hop has broadened over the years. "However, the reality is that the vast majority of the significant affluent African American niche is not part of hip-hop culture," the book explains. …

… Thus, says the book, "the issues, and even the struggles, that characterized their grandparents' and parents' generations are no longer primary concerns for these successful professional people." They haven't turned their backs on what those earlier generations endured, or on the institutions that were prominent in fighting those fights. But the fact remains that AAAs have come of age in a different time. "For AAAs, the United Negro College Fund, the National Association for the Advancement of Colored People and other civil rights-era institutions, while still very much honored and supported, do not represent the pinnacle of either social networking or charitable giving," the book says. "A very proud heritage is gladly acknowledged, but this is not the sole platform on which the AAAs live their lives." …

… As the book states the matter, "It's nice to see images that reflect you and your lifestyle in advertisements, but a good ad is a good ad, no matter what." Adds Hoffman: "The tone of the ad isn't as important as where the media is placed, how the brand reaches out beyond ads — i.e., events, partnerships, giving back/philanthropy. Don't get us wrong, tone is important, but where you are is just as important. Bottom line, are your marketing efforts towards AAAs authentic?"

If AAAs suspect a brand isn't authentically welcoming of them, they'll let their peers know about it. The book notes that the AAA audience is "a tightly knit one." And that means word travels rapidly among them: "Research shows that, positive or negative, word of mouth spreads faster among AAAs than within the general market." …

… This, too, reflects a recurring theme in the book, that partnerships with cultural institutions (as well as educational and philanthropic organizations) are an effective way for brands to align themselves with the interests of AAAs and get their attention in a positive way. "Partnering with the right cultural, educational or charitable organization can be a key in unlocking the good will of AAAs," says the book. …