The Hispanic Marketplace

Slide 1:The Hispanic Marketplace

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Slide 2:Demographic & Geographic Trends

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Slide 3:U.S. Hispanic population has grown 35.6% from the 2000 Census to the July 1st, 2009 Census Update.

3 Source: U.S. Census Bureau Annual Population Estimates, June 2010 Now totaling 48.4 million, or 15.8% of the total population, Hispanics are the largest minority group in the nation.

Slide 4:U.S. Hispanic Population Will Continue to Boom

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

Slide 5:U.S Hispanic Population Distribution by Place of Origin

5 Source: Census Bureau, June 2010 Other Hispanic 17.7% Puerto Rico 9% Cuba 3.4% Mexico 64% Dominican 2.8% Salvadoran 3.1%

Slide 6:Hispanic Population is Younger than the U.S. Population � Nearly 50% Under 24 Years Old

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

Slide 7:Hispanics Account for Over 25% of the Population in Four States

7 Source: U.S. Census Bureau Annual Population Estimates, June 2010 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 Hispanic % Ttl U.S. Hispanic as % Ttl State State Population Hispanic Population Population

Slide 8:Purchasing Power

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Slide 9: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. 9 Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009

Slide 10:Top 10 States Account for 80% of Hispanic Buying Power

10 Source: University of Georgia Selig Center for Economic Growth, Third Quarter 2009 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 State Totals in Billions

Slide 11:Media Usage

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Slide 12:Top 10 Hispanic Designated Market Areas

12 Source: Advertising Age Hispanic Fact Pack 2009; Nielsen Media Research Jan. 2009 *Percent of Hispanic households where only or mostly Spanish is spoken by all persons 2+

Slide 13:Top Primetime Network TV Programs Among Hispanic Viewers: Spanish-Language

13 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 1 Ma�ana 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 May 2009 Hispanic Avg. Hisp. Avg. Hisp. Rank* Program [Day] Network HH RTG HH (000) VWRS (000) Source: Advertising Age Hispanic Fact Pack 2008; Nielsen Media Research 4/27 � 5/31/09

Slide 14:Top U.S. Spanish-Language Radio Formats

14 Source: Advertising Age Hispanic Fact Pack 2009 Top Radio Formats Among Hispanics (A 18+)

Slide 15:Hispanics use Electronic Media for a Variety of Reasons

15 *Average hours Hispanics spend weekly. Source: Advertising Age Hispanic Fact Pack 2009; Spring 2008 MRI Survey of the American Consumer

Slide 16:Hispanics are Highly Engaged with Mobile Multimedia Applications

16 Source: Cellular-news 5/14/07; M:Metrics Survey 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% Hispanics 18-34 comprise 51.5% of the total Hispanic mobile population

Slide 17:Spanish Language Ad Spending

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Slide 18:Hispanic Media Ad Spending

18 *Excluding Classified Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence 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 (Millions)

Slide 19:Top Ad Spending Categories in Hispanic Media

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

Slide 20:Top 10 Advertisers in Hispanic Media (Measured U.S. Media Spending)

20 Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence 2008 Marketer Ad Spending ($000) %Chg

Slide 21:Top 10 Spanish-Language Spot TV Advertisers

21 Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence 2008 Marketer Ad Spending ($000) % Chg

Slide 22:Top 10 Spanish-Language Network TV Advertisers

22 Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence 2008 Marketer Ad Spending ($000) % Chg

Slide 23:Top 10 Hispanic Newspaper Advertisers

23 Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence 2008 Marketer Ad Spending ($000) % Chg

Slide 24:Top 10 Hispanic Internet Advertisers

24 Source: Advertising Age Hispanic Fact Pack 2009 7/28/09; TNS Media Intelligence 2008 Marketer* Ad Spending ($000) % Chg *Excludes paid search and broadband video

Slide 25:Top 10 Hispanic Spot Radio Advertisers

25 Source: Advertising Age Hispanic Fact Pack 2009, Measured radio ad spending from Nielsen Co. Percent change is computed from 2007 data 2008 Ad Spending ($000) %Chg

Slide 26:Top Hispanic Markets by Media Spending for Spanish-Language Outlets

26 Source: Advertising Age Hispanic Fact Pack 2009, HispanTelligence 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

Slide 27:Top 10 U.S. Hispanic Advertising Agencies

27 *Advertising Age estimates, by US revenue in 2008 Source: Advertising Age Hispanic Fact Pack 2009, 7/09 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

Slide 28:Language Preference and Marketing to Hispanics

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Slide 29:Language Preference (Language Spoken at Home - Hispanic Adults 18+)

29 Source: Isabel Valdes/Consultant, July 30, 2008 � Based on 2008 Nielsen UEs Speaking both Spanish and English

Slide 30:Language Plays a Key Role in the Hispanic Culture

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

Slide 31:Marketing to Hispanics

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�. 31 Source: Isabel Valdes/Consultant �July 30, 2008

Slide 32:Marketing to Hispanics

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. 32 Source: Isabel Valdes/Consultant �July 30, 2008

Slide 33:Successful Hispanic Advertising Campaigns

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Slide 34:Telemundo Teamed with GMC for Web 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. 34 Source: Advertising Age 7/7/08

Slide 35: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. 35 Source: East Bay Business Times, 8/6/08

Slide 36:Dr Pepper�s First Quincea�era Sweepstakes

Dr Pepper promoted a special sweepstakes in 2007 in 20 Hispanic markets. Customers received a free CD with traditional quincea�era 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. 36 Source: Adweek 6/11/07

Slide 37:Unilever Spanish Language Initiative

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. 37 Source: Adweek 5/22/07

Slide 38:Home Depot Hispanic Advertising 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.� 38 Source: hispanicad.com 4/9/07

Slide 39:Restaurants Tailoring Advertising 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. 39 Source: The Food Institute Report 1/22/07

Slide 40:Targeting Hispanics is a Winning Strategy 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). 40 Sources: TNS-MI Stradegy; Brandweek � 8/14/2009

Slide 41:State Farm Accelerates Hispanic MarketingEfforts

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) 41 Source: The Miami Herald � 8/10/2009

Slide 42:Thank You!

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