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The Hispanic Marketplace. Demographic & Geographic Trends. U.S. Hispanic population has grown 35.6% from the 2000 Census to the July 1st, 2009 Census Update. Now totaling 48.4 million, or 15.8% of the total population, Hispanics are the largest minority group in the nation.

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Demographic & Geographic Trends


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U.S. Hispanic population has grown 35.6% from the 2000 Census to the July 1st, 2009 Census Update.

Now totaling 48.4 million, or 15.8% of the total population, Hispanics are the largest minority group in the nation.

Source: U.S. Census Bureau Annual Population Estimates, June 2010


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U.S. Hispanic Population Will Continue to Boom

Year Hispanic Total U.S Hispanic % Total

2000 35,622,000 282,125,000 13

2010 47,756,000 308,936,000 15

2020 59,756,000 335,805,000 18

2030 73,055,000 363,584,000 20

2040 87,585,000 391,946,000 22

2050 102,560,000 419,854,000 24

Source: Advertising Age Hispanic Fact Pack 2009, U.S. Census Bureau, June 2010


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U.S Hispanic Population Distribution by Place of Origin

Dominican

2.8%

Other Hispanic

17.7%

Cuba 3.4%

Salvadoran

3.1%

Mexico

64%

Puerto Rico

9%

Source: Census Bureau, June 2010


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Hispanic Population is Younger than the U.S. Population – Nearly 50% Under 24 Years Old

% Hispanic % Total U.S. Index of

Population Population Population Hispanic To Ttl U.S.

Under 5 years 5.83 3.49 167

5 to 13 years 8.55 6.10 140

14 to 17 years 3.42 2.80 122

18 to 24 years 7.8 6.9 113

25 to 44 years 5.85 5.15 114

45 to 64 years 8.68 14.40 61

65 years and over 2.93 7.55 39

Median age 27.4 38.3 71

Source: U.S. Census Bureau Annual Population Estimates, June 2010


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Hispanics Account for Over 25% of the Population in Four States

Hispanic % Ttl U.S. Hispanic as % Ttl State

State Population Hispanic Population Population

California 13,681,375 28.3 37.02

Texas 9,148,056 18.9 24.75

Florida 3,992,297 8.3 10.80

New York 3,274,385 6.8 8.86

Illinois 1,968,599 4.1 5.33

Arizona 2,031,650 4.2 5.50

New Jersey 1,452,824 3.0 3.93

Colorado 1,018,204 2.1 2.75

New Mexico 915,738 1.9 2.48

Georgia 819,887 1.7 2.22

Source: U.S. Census Bureau Annual Population Estimates, June 2010



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Hispanics are an Influential Force in the U.S. Consumer Economy

According to estimates from the University of Georgia’s

Selig Center for Economic Growth:

  • Hispanic buying power will grow from $212 billion in 1990, to $978 billion in 2009, to over $1.3 trillion in 2013.

    • The 2009 value will exceed the 2000 value by 100% - a percentage gain far greater than the 45% increase in non-Hispanic buying power.

  • This substantial growth is supported by two major factors: favorable demographic growth and the increasing amount of Hispanic business owners.

    • The rate of growth of Hispanic-owned businesses (+31%) between 1997 and 2002 was triple that of the national average growth (+10%) for all businesses.

Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009


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Top 10 States Account for 80% of EconomyHispanic Buying Power

State Totals in Billions

1 California $ 253.0

2 Texas $ 175.0

3 Florida $ 101.0

4 New York $ 76.0

5 Illinois $ 43.0

6 New Jersey $ 37.0

7 Arizona $ 31.0

8 Colorado $ 21.0

9 New Mexico $ 18.0

10 Georgia $ 15.0

Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009


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Media Usage Economy


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Top 10 Hispanic Designated Market Areas Economy

*Percent of Hispanic households where only or mostly Spanish is spoken by all persons 2+

Source: Advertising Age Hispanic Fact Pack 2009; Nielsen Media Research Jan. 2009


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Top Primetime Network TV Programs Among Hispanic Viewers: Spanish-Language

Among Hispanics, the Top 34 Shows are on Spanish Language Television. The First English Language Show doesn’t appear until rank 35 & only 10 of the top 100 programs are EL

May 2009

Hispanic Avg. Hisp. Avg. Hisp.

Rank* Program [Day] Network HH RTG HH (000) VWRS (000)

1 Mañana Para Siempre [Tue] Univision 22.9 2,904 5,132

35 American Idol [Wed] Fox 6.8 864 1,336

47 American Idol [Tue] Fox 6.0 765 1,179

58 Grey’s Anatomy [Thu 9pm] ABC 5.6 707 1,059

62 NBA Playoffs on ABC [Sat 3 (Special) 05/23] ABC 5.1 649 1,057

63 Dancing with the Stars ABC 5.0 626 900

70 Dancing with the Stars Results ABC 4.3 547 861

77 So You Think You Can Dance [Wed] Fox 4.0 510 801

79 House Fox 4.0 501 768

80 Heroes NBC 3.9 498 699

85 So You Think You Can Dance[Thu] Fox 3.8 484 756

*Ranked among all Hispanic viewers

**The top 34 shows are on SLTV

Source: Advertising Age Hispanic Fact Pack 2008; Nielsen Media Research 4/27 – 5/31/09


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Top U.S. Spanish-Language Radio Formats Spanish-Language

Top Radio Formats Among Hispanics (A 18+)

Source: Advertising Age Hispanic Fact Pack 2009


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Hispanics use Electronic Media for a Variety of Reasons Spanish-Language

*Average hours Hispanics spend weekly.

Source: Advertising Age Hispanic Fact Pack 2009; Spring 2008 MRI Survey of the American Consumer


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Hispanics are Highly Engaged with Mobile Multimedia Applications

Hispanics 18-34 comprise 51.5% of the total Hispanic mobile population

Hispanic Mobile All US Mobile Activity Subscribers Subscribers

Watched video 6.7% 3.1%

Listened to sideloaded music 6.8% 3.2%

Accessed news/information via browser 18.8% 9.6%

Played a downloaded game 14.4% 9.0%

Accessed application 32.9% 18.8%

Sent photo or video 26.8% 15.3%

Source: Cellular-news 5/14/07; M:Metrics Survey



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Hispanic Media Ad Spending Applications

(Millions)

Medium 2008 2007 % CHG

Network/national TV $1,807.3 $1,789.4 1.0

Local TV 707.4 707.0 0.1

National radio 221.8 221.3 0.2

Local radio 529.2 524.1 1.0

National newspaper* 124.0 123.8 0.2

Local Newspapers* 186.2 185.7 0.3

Internet 225.5 179.9 25.4

Magazines 115.4 110.6 4.3

Out-of-home 86.9 86.2 0.8

TOTAL 4,003.7 3,927.9 1.9

*Excluding Classified

Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence


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Top Ad Spending Categories in Hispanic Media Applications

2008 U.S. Gross Measured Ad Spending ($000)

Category 2008 2007 % Chg

Telecommunications & Internet $659,817 $563,515 17.1

Retail 612,428 589,716 3.9

Automotive 571,431 714,868 -20.1

Restaurants 304,138 281,188 8.2

Food, beverages & candy 297,874 302,638 -1.6

General Services 280,942 248,809 12.9

Personal Care 263,981 229,714 14.9

Movies, recorded video & music 252,993 274,131 -7.7

Insurance 205,135 154,274 33.0

Medicines & remedies 169,266 203,564 -16.8

Source: Advertising Age Hispanic Fact Pack 2009, 7/28/09; TNS Media Intelligence


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Top 10 Advertisers in Hispanic Media Applications(Measured U.S. Media Spending)

2008

Marketer Ad Spending ($000) %Chg

Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence


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Top 10 Spanish-Language Spot TV Advertisers Applications

2008

Marketer Ad Spending ($000) % Chg

Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence


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Top 10 Spanish-Language Network TV Advertisers Applications

2008

Marketer Ad Spending ($000) % Chg

Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence


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Top 10 Hispanic Newspaper Advertisers Applications

2008

Marketer Ad Spending ($000) % Chg

Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence


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Top 10 Hispanic Internet Advertisers Applications

2008

Marketer* Ad Spending ($000) % Chg

*Excludes paid search and broadband video

Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence


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Top 10 Hispanic Spot Radio Advertisers Applications

2008 Ad Spending ($000)

%Chg

Source: Advertising Age Hispanic Fact Pack 2009, Measured radio ad spending from Nielsen Co. Percent change is computed from 2007 data


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Top Hispanic Markets by Media Spending for Spanish-Language Outlets

2008 Estimated Expenditures in Millions

DMA TV Radio Print Total

Los Angeles $357.69 $191.42 $102.43 $651.54

Miami/Ft. Lauderdale 132.58 103.31 66.89 302.78

New York 114.22 93.17 55.29 262.68

Houston 64.08 63.98 9.76 137.82

Chicago 52.24 48.21 27.75 128.20

San Francisco/Oakland/San Jose 47.57 32.13 6.40 86.10

Dallas 39.34 31.88 9.07 80.29

San Antonio 24.06 35.81 4.74 64.61

Phoenix 30.29 15.48 18.04 63.81

San Diego 29.55 20.09 5.89 55.53

TOTAL 891.62 635.48 306.26 1,833.36

Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence


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Top 10 U.S. Hispanic Advertising Agencies Outlets

U.S. Revenue in thousands*

Agency 2008 % Change

Dieste, Harmel & Partners (Omnicom) $44,900 11.1

Vidal Partnership 35,000 12.9

Bravo Group (WPP) 31,500 5.0

GlobalHue 28,178 37.2

Lopez Negrete Communications 24,150 1.6

Zubi Advertising Services 21,500 9.7

Bromley Communications (Publicis) 21,100 -6.6

Conill (Publicis) 19,900 -3.9

LatinWorks (Omnicom) 17,440 1.5

Alma DDB 14,800 13.0

TOTAL 258,468

*Advertising Age estimates, by US revenue in 2008

Source: Advertising Age Hispanic Fact Pack 2009, 7/09



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Language Preference Outlets(Language Spoken at Home - Hispanic Adults 18+)

Speaking both Spanish and English

Source: Isabel Valdes/Consultant, July 30, 2008 – Based on 2008 Nielsen UEs


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Language Plays a Key Role in the Hispanic Culture Outlets

  • Hispanic culture has made a huge impact on mainstream America

    • The increasing political, cultural and economic influence of Hispanics has changed the way America looks, thinks, eats, dances, votes and conducts business.

  • Retro-acculturation

    • As being part of an ethnic group is “in” a burgeoning cultural pride has taken hold and teens begin the process of retro-acculturation where they are interested in learning more about their culture, language and traditions.

Sources: Isabel Valdes/Consultant –July 30, 2008; Cheskin Research 2007


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Marketing to Hispanics Outlets

  • US Born

    • First- and second-generation Hispanic youths tend to thoroughly identify with and embrace their cultural heritage even as they begin blending into American society.

    • Feel comfortable using “ready to serve”.

    • Retail and marketing savvy.

  • Foreign Born

    • Advertising/information “hungry”.

    • No brand heritage – many brands are “unknown”.

Source: Isabel Valdes/Consultant –July 30, 2008


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Marketing to Hispanics Outlets

  • Connecting culturally and emotionally is key to successful Hispanic communication.

  • An effective approach is “in-culture marketing”, capitalizing on core common values:

    • Extremely family-oriented. Hispanic families are very likely to be three-generational, with grandparents an integral part of the unit.

      • Marketing strategies with family values themes have strong appeal to them.

    • Group oriented. Focus more on core group(s) rather than on the individual.

      • Enjoy group outings such as street fairs, festivals and sports events.

Source: Isabel Valdes/Consultant –July 30, 2008



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Telemundo Teamed with GMC for OutletsWeb Soccer Reality Series

  • Telemundo created a campaign for the Sierra truck brand called “Long Shot” that allowed players a second chance to impress the team’s coach and viewers.

  • “The concept was an interactive soccer experience that ties together grass roots, web, mobile and TV,” said Peter Blacker, senior VP-digital media at Telemundo.

  • According to Telemundo, whenever they do cross-platform integration like this Sierra campaign, scores go up for brand awareness and likability for the related ad campaign.

  • The campaign included 12 broadband episodes on Yahoo Telemundo, weekly updates on two sports shows plus one-minute units with GMC spots and web content, a custom site that’s GMC-branded on Yahoo Telemundo, and mobile phone promotions.

Source: Advertising Age 7/7/08


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Bank of America Launched Spanish Language Advertising Campaign

  • Hacia Adelante was the name of a Bank of America Corp.’s Spanish-language ad campaign.

  • The campaign marketed the importance of a checking account in owning a first home, paying for college and starting a small business.

  • “We want to instill confidence among our Hispanic customers that they should feel comfortable visiting a banking center and speaking with our bilingual associates about their financial needs and goals,” said Lynn Kuttruff, marketing executive for consumer and small-business deposits and growth markets.

  • Promotion for the campaign included television, radio, print, ATM and branch advertising.

Source: East Bay Business Times, 8/6/08


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Dr Pepper’s First Quinceañera Sweepstakes Campaign

  • Dr Pepper promoted a special sweepstakes in 2007 in 20 Hispanic markets.

  • Customers received a free CD with traditional quinceañera songs with the purchase of two 12-packs of Dr Pepper.

  • Some CDs contained tickets to mail in for inclusion in the sweepstakes drawing.

  • The marketing goal was to become the soft drink brand associated with a tradition that Hispanic teens and their families value.

  • The campaign included remotes with local radio stations, in-store displays and street teams handing out flyers.

Source: Adweek 6/11/07


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Unilever Spanish Language Initiative Campaign

  • In 2007, Unilever launched a major Spanish language initiative in celebration of Hispanic culture and traditions.

  • The new features of the marketing program called “Vive Mejor” (“Live Better”) included a bilingual consumer publication, a Spanish language Web site and television integrations.

  • The publication, Vive Mejor (a free magazine available at supermarkets in high-density Hispanic neighborhoods across the country), offered shopping and beauty tips.

  • Unilever also ran five-minute branded segments with their personal-care and food brands during Univision’s morning show “Despierta America.”

  • A one-hour reality cook-off with a $1 million grand prize also ran on Galavision.

Source: Adweek 5/22/07


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Home Depot Hispanic Advertising Campaign Campaign

  • Home Depot’s “My Favorite Corner” ad focused on Hispanic consumers and their unique home improvement stories.

  • The campaign was based on the strong emotional connection Hispanic customers have to their culture and the way it is expressed in their home improvement projects.

  • English and Spanish advertising featured the Home Depot’s tagline, “Puedes hacerlo. Podemos ayudarte.”

Source: hispanicad.com 4/9/07


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Restaurants Tailoring CampaignAdvertising Programs to Hispanics

  • Pizza Patron found that community involvement and tapping into a strong sense of family is an effective way to market to Hispanics.

  • El Pollo Loco utilizes different strategies and ad campaigns for Hispanics, which represent 50% of the chain’s customer base.

  • Olive Garden developed a communications plan that leveraged its existing brand strategy to have more relevance with Hispanics.

  • Papa John’s expanded its online ordering site to include a Spanish language section.

  • McDonald’s launched a multi-media campaign during Lent to promote the Filet-O-Fish sandwich to Hispanics.

Source: The Food Institute Report 1/22/07


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Targeting Hispanics is a Winning CampaignStrategy for P&G

  • A longtime Spanish language television advertiser (since 1961), P&G is currently the number one overall Spanish language advertiser. On Spanish language TV alone, it has doubled its investment in the past 5 years and partners with a variety of organizations dedicated to serving the Hispanic community.

  • Even in this challenging economy where private label has been capturing major market share, P&G continues to see advantages to its Hispanic marketing efforts. According to P&G, its fastest growing brand Bounty, is a brand where it has long been running value-oriented communication. “Consumers recognize its performance advantages. On Bounty, we are growing both share on the value tier (Bounty Basic) and also on the premium tier behind Bounty Extra Soft which was designed to [appeal primarily to] Hispanics.” (David Miller Gomez-Giron, P&G/Associate Marketing Director).

Sources: TNS-MI Stradegy; Brandweek – 8/14/2009


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State Farm Accelerates Hispanic Marketing CampaignEfforts

  • While it has been marketing to Hispanics for the past decade, State Farm recently stepped up its efforts, spending nearly $58 million in total Spanish language media in 2008 (double its 2007 SL advertising efforts).

  • Prior to 2005 State Farm felt it lacked an integrated marketing strategy in targeting Hispanics. Its goal was to develop a long term strategy that fully communicated its services and benefits to the Hispanic market.

  • In hopes of connecting with Hispanics on a deeper level it earmarked more marketing dollars for community event sponsorships such as bike safety fairs and support of local baseball and soccer teams.

    • “Consumers are savvy today. But you can take a relationship deeper when you can connect with consumers in ways they don’t necessarily expect.” (Mark Gibson, Assistant VP, Advertising/State Farm)

Source: The Miami Herald – 8/10/2009


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Thank You! Campaign


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