Arbitron & Scarborough Unveil "Black Consumer Study 2006"
July 7, 2006 at 9:38 AM (PT)
According to the results of the "Black Consumer Study 2006 -- Five Years Later: Urban Dictates -- Where Are We Now" study just released by ARBITRON and SCARBOROUGH RESEARCH, black consumers currently offer more than $760 billion in spending power. The study looks at the current state of the black consumer market and compares it to 2000.
"Five years ago, we released the first ARBITRON Black Consumer Study," commented ARBITRON Dir./Urban Media Services JULIAN DAVIS. "Our goal was to help broadcasters dispel myths and heighten awareness of the unique value of the Urban radio audience. We also were looking to educate those who seek to have this community shop in their stores and buy from their clients. This community has changed over time and so has their buying power. The question becomes, five years later -- where are we now?"
The new study shows that, of 30 million black persons age 12+ in the U.S., or 12% of the U.S. population overall, black persons are more likely to be college graduates, have more money to spend, spend more money on things like cars and cell phones and are more likely to own their own homes than they were five years ago. Key findings are:
-- The population of black college graduates has grown 14% in the past 5 years.
-- Black households with incomes of $75,000 or more have grown 26% since 2000.
-- More than 430,000 black persons 18+ plan to spend upwards of $35,000 on new vehicles. That’s up more than 20% in the past 5 years.
-- Nearly two-thirds of black consumers subscribe to cell phone service and many are also willing to pay more than the average for that service. Black persons 18+ are 13% more likely than the average consumer to spend $150 or more monthly on their cellular service.
-- More than 1.8 million black persons 18+ plan to buy a home in the next 12 months; that is 24% above the national average. More than half a million black households own homes valued at $500,000 or more, representing a 350% increase in the past five years.
The study also shows that black-focused media is growing in the U.S., with more and more radio stations, cable networks and others centering their programming on the black consumer. 90% of black persons 18+ listen to radio each week, 96% watch broadcast television, and 83% watch cable television each week.
Of those, the most popular radio formats within the black community are Urban AC (37%), Urban Contemporary (37%), Top 40/Rhythmic (21%) and New AC/Smooth Jazz (12%). The most popular cable networks among black persons 18+ today are BET, TNT, THE WEATHER CHANNEL, ESPN and THE DISCOVERY CHANNEL.
Download the study by clicking here.