Arbitron/Scarborough Study: Black consumers’ economic growth continues

(July 13, 2006) A new study from Arbitron Inc. and Scarborough Research reveals that black consumers are growing in their educational levels and economic status. The results of the study were presented at the recent Black Consumer Research and Advertising Summit hosted by Target Market News.

The study, "The Arbitron/Scarborough Black Consumer Study 2006 – Five Years Later: Urban Dictates – Where Are We Now," looks at the current state of the black consumer market and compares it to 2000. It shows that, with more than $760 billion in spending power, black consumers today represent a critical and growing market for advertisers.

“Five years ago, we released the first Arbitron Black Consumer Study,” said Julian Davis, director of Arbitron's Urban Media Services. “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 answer, Davis said, is critical to advertisers. The new study shows that, of 30 million black persons age 12+ in the United States, or 12 percent of the US 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 percent in the past five years.

· Black households with incomes of $75,000 or more have grown 26 percent 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 percent in the past five 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 percent 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 percent above the national average. More than half a million black households own homes valued at $500,000 or more, representing a 350 percent increase in the past five years.

For a PFD version of the study’s results, click here.


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Latest 'Buying Power' report shows black consumers spending more on home life

As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products.
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