Coleman partners with True North.

New venture poised to target black, Hispanic and Asian American markets

One of the nation's leading African American advertising executives has been tapped to head an alliance of minority marketing firms crafted to reach African American, Asian and Hispanic consumers in one swipe.

"The demographic changes taking place in the U.S. today are the most dramatic since the wave of European immigration during the last century," says Don Coleman, president and CEO of Don Coleman Advertising (No. 3 on the BE ADVERTISING AGENCIES list). Indeed, some accounts have the African, Hispanic and Asian Pacific American populations growing at seven times the rate of the general population. Taking note of this, True North Communications, a global communications holding company with worldwide billings of more than $12 billion, recently acquired a 49% interest in Coleman's firm and created the alliance through its True North Diversified Cos. Dubbed the New America Strategies Group, the company Coleman will now help oversee reaches an audience with an estimated buying power of $1.14 trillion.

The alliance brings together SiboneyUSA, a leading Hispanic agency, Imada Wong Communications Group, which focuses on Asian consumers, and Stedman Graham & Partners. "African Americans, Asians and Hispanics together spend more than $1 trillion a year; it is hard for manufacturers and companies to ignore that kind of spending power," says Coleman.

A veteran advertising executive whose clients include DaimlerChrysler, Kmart Corp., General Mills and Miller Brewing Co., Coleman believes New America Strategies Group is the first alliance of its type built from the ground up "to help larger advertisers succeed in this new environment."

"We're proud of New America Strategies Group's pioneering role in forging a partnership of prominent multicultural marketing firms," says Valentine J. Zammit, CEO of True North Diversified Cos. "Our ultimate goal is to help clients communicate more effectively with diverse market segments, including African American, Hispanic and Asian Pacific American populations."

Kathryn Woods, vice president of global communications for True North Communications, believes Coleman will be critical to her company's effort to reach minority consumers. "The days of broad-scale advertising alone are over because of demographic changes in the population," says Woods. We have statistics showing the so-called minority will be the new majority by 2040, and clients recognize this vital growing sector in our society."

According to some market industry data, by 2040 Hispanic, African and Asian Pacific Americans will be more than 50% of the population. In the next decade, about half of the U.S. population is projected to be nonwhite, and market research shows these consumers outspend nonwhites by huge margins and have greater loyalty to name brand items in the marketplace.

Heide Gardner, vice president of the diversity and strategic programs of the American Advertising Federation Foundation, said there are several things going on in the marketplace that make this is an ideal time for minority advertising firms that not so long ago experienced nothing but closed doors along New York's Madison Avenue.

"Historically, general-market agencies targeted the general market and minority agencies focused on their niche because these entrepreneurs were not able to get in the door of the national advertisers," says Gardner. "Now, more and more general agencies are reaching out for minority talent."

Ethnic agencies have advantages over general-market agencies, adds Gardner. "They know minority media outlets, they know how to execute public relations and in-store merchandising programs and they also have the connection with the entertainment and culture of the community."

In addition to being the CEO of the new alliance, Coleman now has a seat in the True North boardroom. This Chicago-based firm has more than 300 operations in 83 countries and has three major advertising agencies: Foote, Cone & Belding Worldwide, Bozell Worldwide and Temerlin McClain.

During the Congressional Black Caucus Weekend in September, NAACP President and CEO Kweisi Mfume, New York activist the Rev. Al Sharpton and other black leaders continued their verbal assault on major advertisers for still not advertising more with black institutions.

"This network represents a new and compelling model with the potential to create a strong link between the mainstream advertisers and America's growing multicultural communities," says Coleman. "The credibility and experience we are providing now will make corporate America more comfortable in addressing multiculturalism. It's going to be a lot easier for companies to get involved in these markets through us because we are all working together."