With his Austin Powers haircut and surfer-boy sandals, 24-year-old Alberto Salas does not look like the future of the U.S. mobile industry, but his phone is at the center of his life. “My phone is very important to me,” says the Miami native, whose parents emigrated from Cuba. “I couldn’t even wake up in the morning if it wasn’t for the alarm in this thing.” Hispanics are now the fastest-growing and youngest-skewing U.S. mobile segment, with a higher average revenue per user (ARPU) than any other demographic group, according to the latest Telephia research. The challenge for carriers, content providers and advertisers is to create an emotional bond that resonates with this young, but extremely diverse group.

Sprint is packaging its Hispanic-relevant products in an emotional way—through fast cars and Rock & Roll!! This month, Sprint will sponsor the U.S. tour of Mexican rock band Mana—who have sold more than 23 million albums and won 5 Grammies. The relationship includes original Mana content exclusively for Sprint subscribers. According to Isaac Mizrahi, Sprint’s director of multi-cultural marketing, “There are three pillars to all of our efforts—build brand equity, drive traffic to retail and drive additional data consumption.”

To further reach their target of first and second generation young Hispanics, Sprint is sponsoring Juan Pablo Montoya, the first Latino to win at NASCAR. “Our marketing message reinforces the speed of NASCAR with the speed of our international walkie-talkie product,” says Mizrahi.

Marketing to Hispanics used to mean focusing on major markets like Miami, Los Angeles, New York and Houston, but that picture has changed too. Hispanics account for more than 10% of the population in 14 states and the marketing challenge is regional if not yet national.

In addition to being younger, and increasingly dispersed across the country, U.S. Hispanics tend to come from larger families and are less likely to have Internet access at home than the overall population. These factors may explain why so many in this demographic view the handset as their primary multi-media access device. Both acculturated (English language in the home) and unacculturated Hispanics over-index on usage of various data services. For example, Hispanics are nearly twice as likely as non-Hispanics to access the wireless Internet. According to John Hadl, CEO of mobile marketing and advertising consultancy Brand in Hand, “Without a doubt, mobile Web advertising is a very effective means for reaching acculturated Hispanics in the general advertising market. You need to be smart, but mobile Internet is a great platform for engaging with Hispanics.”

Nick Montes, president of Viva Vision, a Hispanic-focused, English-language mobile video programmer, cautions that a “one-dimensional content strategy is not going to work. It is critical to focus on a sub-segment of the Hispanic marketplace. Our viewers are looking for content that is unique, irreverent, that is not what you see on traditional broadcast.”

Jill Rueckert Lopez, associate director of multicultural marketing at Verizon Wireless, agrees with this sentiment, noting that the key to successful marketing to Hispanic customers is by first recognizing the breadth and diversity of the Hispanic customer base. "Verizon Wireless has created programs and services that appeal to Hispanic customers who speak Spanish but are equally as comfortable with English. Reaching these customers means creating the products and services that enhance their wireless experience."

Not all of the higher ARPU is attributable to data usage. Hispanics like to talk, averaging more than one-third more voice minutes used per month than non-Hispanics (see Table 1). Moreover, average incoming and outgoing calls per day for Hispanics are 40% higher than non-Hispanics. Ironically, the demographic with the highest ARPU is also very price-sensitive. The top four decision criteria for selecting a provider are all price and value-related: price, minutes, plan and service promotion.

Remember Alberto Salas? Despite only having a part-time job while pursuing an MBA, he owns a $500 video-capable, feature-rich handset. For the younger demographic, the phone is a lifestyle product. “I like to listen to music and play Sudoku,” says Salas.

Reaching consumers like Alberto Salas can be a complex proposition, and understanding differences and similarities among Hispanic mobile consumers will be critical for marketers. Carriers, content owners and brands that learn to micro-segment and appeal to the aspirational pull of the mobile product for Hispanics, especially for the younger set, will have the best chance to capture Alberto Salas as a lifetime customer.