Multicultural Marketing - Portada Online Magazine 4Q 2011

MARKETINGTO HISPANICS:TAKINGTHE CMO’SDRIVER SEATFIFTH ANNUALHISPANIC DIGITALAND PRINT MEDIACONFERENCENYC, SEPT. 22(See 16 page Conference Planner Inside!)

EMERGING HISPANICMARKETS FORUM ON SEPT. 21! SEE YOU IN NEW YORK CITY ONSEPT. 21 AND 22!

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FOURTH QUARTER 2011 | YEAR 9 | NUMBER 44

“Ad investment outside the top 10Hispanic Markets can be a majorgrowth driver for Corporate America”,says José Vélez-Silva. Partner, Directorof Client Services, at Global Works,where he plans and buys media forcompanies including U.S. Bank andCablevision. U.S. Bank has advertisingprograms in so-called EmergingHispanic markets Arizona andColorado and Cablevision in NewJersey and Connecticut.

WILL ONLINE VIDEO (ADVERTISING)KILL THE UNIVISION STAR?

(continued on page 3)

Hispanic media consumption has avery strong TV component. It makessense that as Hispanics move towardsonline and mobile content consump-tion, videos will play a very importantrole. According to ComScore data, inJune 2011, Spanish primary speakersspent substantially more time (50%

more!) than English – primary speakerswatching online videos: 1,238 minutesper viewer/month, versus 811 minutes.(See tables on page 22).

The ComScore data also showsthat out of a total universe of 26.4 mil-lion unique Hispanic online videoviewers in June 2011, only 5.1 millionwere Spanish primary speakers.Something here does not seem to makemuch sense: while Spanish-dominantviewers watch much more videosonline, they are a small part of thetotal number of current Hispaniconline video viewers. The answer tothis conundrum lies in the scarcity ofSpanish-language online video content.

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ONLINE VIDEO

(continued from page 1)

LISA TORRESPresident, Zenith MediaMulticultural

“Right now the Hispanic market is still broadcast,there is no time shifting yet as in the general market.There is a lack of content particularly from Univision.Online video advertising is only going to change onceUnivision primetime comes online”

KAREN TREYDTEDirector of Media Services,Casanova Pendrill

“Hispanics are embracing online video more than theirnon-Hispanic counterparts, in part due to the fact thatcontent relevant to them is not prevalent in mainstreambroadcasting.”

KEVIN CONROYPresident, Univision InteractiveMedia, UnivisionCommunications Inc.

¨Univision streams an array of programming, inclu-ding primetime content from Univision,TeleFutura andGalavisión on its sites, as well as on the Univisionchannel on YouTube. Conroy adds that “In fact, the firstUnivision Studios produced hit novela “Eva Luna” was madeavailable after each broadcast on NovelasySeries.comand on mobile via the Univision Video App.”

CHRIS STANLEYCEO, Alcance Media Group

“There is not a lot of online video content inventory.We are seeing more of a drive to generate and conso-lidate video content. Advertisers and agencies areasking for it.”

WHAT INSIDERS HAVE TO SAY


“Right now the Hispanic market is still broadcast, there isno time shifting yet as in the general market,” says LisaTorres, president of Zenith Media Multicultural. In fact,Univision and other major Hispanic broadcasters have notput most of their primetime shows online, something mostgeneral market broadcasters have done for years. “There is alack of content particularly from Univision. Online videoadvertising is only going to change once Univision primetimecomes online”, Torres adds.

The offering of online advertising options, and onlinevideo advertising in particular, still runs short of what adver-tisers and their agencies are looking for.

“There is not a lot of online video content inventory. Weare seeing more of a drive to generate and consolidate videocontent. Advertisers and agencies are asking for it,” says ChrisStanley, CEO of Alcance Media Group, an online ad net-work targeting the U.S. Hispanic and Latin American mar-kets. Jorge Mercado, Associate VP, Marketing andCommunications – Americas at Prisa Digital in Miami,agrees “while video has grown there are still limitations suchas reach, the increase of subscriber only video (Hulu/Netflix),studios and networks limiting the content out there on adsupported sites, as well as the high cost of rights for profes-sional quality video content.”

While online pure plays like Yahoo!, MSN or Terra don’thave any conflict of interest, big broadcasting companies likeUnivision and Telemundo have a reason to fear that their bil-lions of advertising revenues in broadcasting get cannibalizedby online video advertising. Univision leads in the Hispaniconline video advertising market, but the size of the Hispaniconline video advertising market is less than 1% compared tothe Hispanic TV advertising market.

Asked by Portada why Univision doesn’t stream itsprimetime schedule on univision.com. Kevin Conroy, presi-dent of Univision Interactive Media, answers that Univisionstreams an array of programming, including primetime con-tent from Univision,TeleFutura and Galavisión on its sites,as well as on the Univision channel on YouTube. Conroyadds that “In fact, the first Univision Studios produced hitnovela “Eva Luna” was made available after each broadcaston NovelasySeries.com and on mobile via the UnivisionVideo App. “ “In addition, other popular programs are avail-able online, including Sunday talent competition “PequeñosGigantes” and our novelas on TeleFutura “La Pola” and“Doña Bella.”

Conroy adds that Univision recently provided a 360experience of its “Premios Juventud” youth awards, whichincluded four simultaneous live streams from never beforeseen angles of the stage and backstage areas onPremiosJuventud.com. Conroy also says that every game forthe FIFA World Cup was streamed live as well as in therecent Copa Oro and Copa America soccer matches.”

However, most observers say that Spanish-languageaudiovisual online content is still very scarce. “Advertisers tryto reach US Hispanics via English sites, but feel that suchenvironment is not contextually right,” says Jan-Luc


CONTENTSFourth Quarter 2011, Year 9, Number 44

FEATURES1

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EMERGING HISPANIC MARKETS. These marketsare on fire. So why are major advertisersnot catering to them? Learn why marketing toHispanics in states such as Arizona, NorthCarolina, Georgia, New Jersey, Nevada andColorado can substantially contribute to CorporateAmerica’s growth during the next decade.

BEHIND THE STORY OF HISPANIC ONLINE VIDEOADVERTISING. It’s the most vibrant sector of theonline ad market. Why is there so little Spanish—language video content online? Are there vestedinterests interested in preserving the status quo?A report on what is being done and why.

REBOUND: FINANCING LATIN VENTURES.

SUPPLEMENT: CENSUS DIGESTFOR MARKETERS.

WERE THE RESULTS EXPECTED?

WHAT THE CENSUS RESULTS MEANTO MARKETERS.

SPECIAL PORTADA SEPTEMBER 21-22CONFERENCE PLANNER. All you need to know toprepare for our Fifth Annual Hispanic Digital andPrint Media Conference (“Marketing to Hispanics:Taking the CMO’s Driver Seat”) and the PortadaEmerging Hispanic Markets Forum on Sept. 21.(Page A-P)

DATA, INSIGHTS AND ANALYSIS TO HELP YOUCOMPETE IN THE LATIN MARKETPLACE

YOUR VIEW-SOUNDING OFF. The gist of soundingoff columns by Tony D’Andrea, Director ofPlanning and Research at The San Jose Group;Dr. Felipe Korzenny, Director for the Center forHispanic Marketing Communication at FSU; TerrySoto, President & CEO About Marketing Solutionsand Ivonne Kinser, American Airlines MarketingSolutions (Page 8)

MARKETER INTERVIEW. Larry Upton, Founderand President of Edioma on using MobileCommunications to reach Hispanic Customers(Page 20)

ANALYSIS. Do Preprints (FSI’s) work better inSpanish or English? (Page 21)

STATISTICS IN CONTEXTParents Beware! Minority Youth Spend 90 Minutes

more with New Media than White Youth; Hispanics aremore likely to use video-sharing sites; Online Shopping vs.Brick and Mortar Shopping Behavior. (Page 25)

OUR VIEWCALIENTE Y FRIO IN HISPANICMARKETINGEVENT CALENDARADVERTISER INDEX

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REGULAR SECTIONS

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6 | Q4 2011 | www.portada-online.com

PORTADA EDITORIAL BOARDDawn Marie Gray, Senior Manager MulticulturalMarketing, CVSGonzalo del Fa, Managing Director, MEC BravoKristyn Page, Director of MulticutluralMarketing, Macy's Inc.Rodolfo Rodriguez, Multicultural MarketingDirector, General MillsTeresa Wakeley, Marketing Media and DiversityManager, Volkswagen Group of America Inc

PUBLISHERMarcos Baer

EDITORIAL - RESEARCHCarolina Re, Senior Researcher - Writer

TRANSLATIONCandice Carmel

CORRESPONDENTSLaura Martinez, Senior CorrespondentMariana Carreño King, Feature CorrespondentJose Cervera, Global CorrespondentLevi Shapiro, Digital Media CorrespondentRaul Riba, Mexico Correspondent

SALES AND MARKETINGNicolás Miranda, Online Sales Manager1-800-397-53-22Bob Oliva, Senior Sales and BusinessDevelopment RepresentativeRuby Namoca, Sales and Marketing InternJimena OvalleMarion Zipilivan, Intern

OFFICE MANAGERSusan Cameron

INFORMATION TECHNOLOGYTodd Sarouhan

DESIGNDafne Kleiman, www.dafnedesign.com.ar

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Copyright: Portada®2011No part of Portada® may be copied, reproduced orbroadcast in any form without prior permission.Comments by sources cited in Portada® have beendirectly obtained from them, unless its is explicitlynoted otherwise. Portada® is not affiliated withany other publication, media group, advertisingagency or any other institution. Portada® is published by Contenido LLC inNew York City. Portada® is an integrated mediacompany that informs and instructs its audience viaaudited print (4 x a year) and online vehicles (web-site, e-newsletters, webinars) and conferences. For reprints information and prices please [email protected] users can get any Portada e-newsletters,the quarterly magazine as well as participate inPortada awards nomination/voting and providecomments to articles. Premium content availablefor individual purchase or through an annual sub-scription includes: Premium individual articles,Databases of Corporate Marketers/Media Buyerstargeting U.S. Hispanic and/or Latin AmericanConsumers, Research Reports and ConferenceTickets. To order premium comments, please callus at 1-800-397-5322.To notify about address changes, please write toPortada, 315 Fifth Avenue, Ste. 702, NY, NY 10024.

MISSIONPortada®’s mandate is to help Executives inBusiness and Media understand and reach Hispanicand Latin American consumers. Portada strives toput its audience ahead of the curve so it can navi-gate change in the digital age.

The digital revolutionover the last decade hashad a very strong impact onthe marketing and adverti-sing industries. Thoroughdata on performance andresponse to digital adverti-sing has become the norm.Due to the development ofsophisticated performan-ce measurement tools, thefamous phrase of Phila-delphia merchant John

Wannamaker that “half the money spent on advertising is wasted; thetrouble is to know which half it is” no longer holds. The advertising andmedia industries are becoming much more efficient.

But, aren’t we losing something in the process? Isn’t the pendulummoving too much towards mathematics and direct marketing myopia?Wanda Harris Millard, COO of media advisory firm Media Link, defini-tely thinks so. While Online Ad Networks, Ad Exchanges, DSPs(Demand Side Platforms), Agency Trading Desks, and SSP’s (SupplySide Platforms) have contributed to make the advertising and mediasectors more efficient, they also have commoditized the industry.There is too much of a fixation with immediacy and sales results.Harris Millard gave an interesting presentation during the recentInteractive Advertising Bureau Mexico Annual Convention. In her view,technological innovation has taken too much of a central space indetriment of the creative and artistic part of the advertising and mediaplanning/buying process.

“Not everything that can be counted counts, and not everything thatcounts can be counted”. Advertising, Marketing and Media Executivesof the Digital Age should take into account this phrase from famousAmerican writer and humorist Mark Twain (1865-1910). It should par-ticularly resonate with brand marketers. Currently, new metrics rele-vant to brand marketers are being developed. These metrics need togo beyond direct response and performance oriented data. In addition,measurements that are relevant and consistent across off- and “onli-ne” media have to be created. The development of these new metrics,on which AAAA, IAB and ANA are currently working, should also helpto increase the amount of brand advertising dollars spent online.

While advertising must sell, it’s focus should be on the value exchan-ge between brands and consumers. With the advent of social networksit is, to a large extent, in digital media were relationships are built, for-med and shaped. This relationship can and should not only be measu-red with performance driven analysis.

As Harris Millard put it. Brand marketers should increasingly askthemselves questions like:” How does a logo sound?” or “how does atext move?”

Hispanic and Latin American marketing and advertising executives,with their well known creative skills, should substantially contribute tothis necessary unlocking of creativity in the digital space.

Beyond Measuring Performance:ARE WE MISSING SOMETHING IN THEDIRECT RESPONSE DATA CRAZE?

OUR VIEW

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INDUSTRY CONFERENCES OF INTEREST TO Portada READERS(check out http://www.portada-online.com/events.aspx for more events)

EVENT CALENDAR

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4USHCC 32ND ANNUAL NATIONAL CONVENTION &BUSINESS EXPOSept. 18-21, 2011USHCC, Fontainebleau Miami Beach, FL

PORTADA'S EMERGING HISPANIC MARKETSFORUM, NYCSept 21, 2011Portada, Scholastic Auditorium, New York, NY

FIFTH ANNUAL HISPANIC DIGITAL AND PRINT MEDIACONFERENCE, NYCSept. 22, 2011Portada, Scholastic Auditorium & Rooftop Terrace withGreenhouse, New York, NY

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NAMIC 25TH ANNUAL CONFERENCEOctober 4-5, 2011NAMIC, Hilton New York, New York, NY

1ST ANNUAL HPNG ENTREPRENEUR CONFERENCE HPNGOctober 3, 2011New York, NY

THE FESTIVAL OF MEDIA LATAM 2011October 12-14, 2011C Squared Events Ltd., Loews Miami Beach Hotel, Miami, FL

ANA MULTICULTURAL MARKETING & DIVERSITYCONFERENCE 2011November 6-8, 2011ANA, Fontainebleau Hotel, Miami Beach, FL

FRÍOCALIENTE

WHAT'S HOT AND COLD IN LATIN MARKETING, MEDIA AND BUSINESS

Narrow Focused Marketing Approaches (can includeHispanic only without looking at the wider U.S. andmulticultural landscape).

PR professionals who ask media properties formedia kits to measure the impact of their pitchesand have no interest whatsoever in advertising.

Holistic Marketing Approach

Hispanic Heritage Month

Pulitzer Winner Jose Antonio Vargas comes out asan illegal alien

Hispanics are Republicans’ big problem in 2012

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MOST READ ARTICLES ONPORTADA-ONLINE.COM(July 1 — August 14, 2011 period)

Research: The most engaging TV Ad Campaignsfor Hispanic Audiences Breaking: Media Division of Alloy bought byProspect Capital Breaking News: Diario de Mexico launchesChicago daily edition Best Practices: Using Mobile Communicationsto reach Hispanic Customers Changing Places: Pamela Silva Conde, MarioDiaz, Carlos Ruben Zapata, Peter Walker Analysis: 1,000 New Web Domains Copa América: Media and Advertisers are get-ting ready Latin Interactive World: The MediaMind-DGStrategy Score Media Launches Spanish Edition ofScoreMobile for Copa America Deal Digest: QuePasa-MyYearbook


YOUR VIEW

TONY D’ANDREA,Director of Planning andResearch at The San JoseGroup

“Latina Business Owners: Women’sEntrepreneurship on the Rise”

788,000 Latinas now run their own businesses in America,according to the most recent Survey of Business Owners.This represents a 46% increase over a five-year (2002-2007) period against the 20% found across female busi-ness of all ethnic backgrounds. Their background isMexican (44%), Cuban (9%), and Puerto Rican (8%), com-plemented by a myriad of Central and South Americannationalities. Latinas now own 36% of all companies run byminority women in the country.

DR. FELIPE KORZENNY,Director for the Center forHispanic MarketingCommunication at FSU

“The Multicultural Face of Smart Phones and Unlimited Data Plans”

Hispanics are digital pioneers in having blogs and personalwebsites. Much speculation and some research has clai-med that Hispanics are leading in the area of smart phoneusage. Having a smart phone, to be truly useful requires ofan unlimited data plan. Fifty six percent of online Latinosthat prefer Spanish have an unlimited data plan. These fin-dings are not only surprising but outstanding in portrayingHispanics as the most aggressive users of mobile techno-logy for internet navigation and use.Mobility and connectivity appear to be prime values forHispanic consumers. What is the meaning of having Latinosbe the leaders in this digital era? How can they influenceothers? What is their role in promoting the use of mobile digitalcommunications? How do their tastes and preferences shapethe future of technology use in the United States? These andother questions are of great importance but the key ele-ments here are the raw results.

TERRY SOTO,President & CEO About Marketing Solutions

“The 4Cs That Lead to a Successful Hispanic Initiative”

The Hispanic marketing community is abuzz about the 2010Census numbers and the double digit growth in the past 10years. You’ve heard the rhetoric before: Corporate Americais missing the boat by not waking up to the Hispanic mar-ket opportunity.Address the four most common culprits that lead to a suc-cessful Hispanic initiative: Commitment, Competency,Capability and Compensation. Commitment means that,upon a CEO’s communication to his organization, theHispanic market is a critical business driver for the com-pany. Competency means that all areas of the organiza-tion responsible for delivering value to the company’s con-sumer targets participate in the due diligence. Capabilitymeans that each area leader understands the implicationsof existing area shortcomings, understands the necessaryorganizational and infrastructure interdependencies, andCompensation means that area leaders’ compensationand rewards systems are tied to KPIs for Hispanic stra-tegy success.

IVONNE KINSER,American Airlines MarketingSolutions.

“Five Good Reasons to Expand into Latin America”

No one could deny at this point that we have arrived at anunprecedented stage where globalization is making theworld “one large market”. Latin America is in the cross-hairs of many global companies. Below are five reasonsthat make the region a no-brainer for companies conside-ring new markets to expand their businesses.1) An Economy Racing Ahead: It’s simple; Latin America isin a growth stage where many developed countries are stillrecovering from the economic impact.2) An almost 600 Million People Market Organized in FourTrade Blocs:• Mercosur: Argentina, Brazil, Paraguay, Uruguay andVenezuela, (special member). • Andean Community of Nations: Bolivia, Colombia,Ecuador, Peru and Chile, (associate). • Central American Integration System (SICA): Costa Rica,Guatemala, Honduras, Nicaragua, El Salvador, Panama,Belize and Dominican Republic. • Mexico is part of NAFTA, which includes USA and Canada. 3) An enormous Import Potential: Between 1990 and 2000,total U.S. merchandise trade with Latin America grew by219% compared to 118% for Asia.4) A millionaire e-commerce business that’s booming: E-commerce reaches critical mass in the region, especiallyin Brazil.5)Remittances: An additional $58.9 Billion PurchasingPower: Money transfers made by Latin American andCaribbean migrants to their countries of origin reached$58.9 billion in 2010.

The Sounding Off column, published on www.portada-online.com provides a platform to experts to explainideas, trends and innovations and their value to themarketplace. Here is a summary of what some of ourrecent columnists had to say. If you are interested insubmitting proposals for Sounding Off articles, pleaseemail our Sounding Off column editor Carolina Re [email protected].

SOUNDING OFF

(+302,285) and Maryland (+242,716).(See table on page 14).

As Phillip Woodie, president ofLER says, “the growth which is takingplace in many of these emerging mar-kets is staggering and simply too com-pelling for agencies and advertisers tooverlook. The list of emerging marketscontinues to evolve in concert with themigration patterns of Hispanics across

the US. Markets like Denver, Salt LakeCity, Milwaukee, Seattle, Atlanta andDC have gained some good traction.And as these markets progress throughtheir growth curve, other markets likeBoise and Minneapolis emerge as viableHispanic markets of consequence. Ifadvertisers are truly interested in grow-ing their business, they will insist onincluding Emerging Hispanic marketsas part of their overall media plans.”LER represents over 100 Spanish lan-guage radio stations serving close to 80-percent of the U.S. Hispanic market.


EMERGING HISPANIC MARKETS

In 2000, 61 percent of theHispanic population residing in the 50states and District of Columbia residedin just four states: California, Texas,Arizona and Florida. By 2010, thatproportion had declined to 58 percentwhile nine states (Alabama, Arkansas,Kentucky, Maryland, Mississippi,

North Carolina, South Carolina, SouthDakota and Tennessee) saw theirHispanic populations more than dou-ble. The change in the ratio is particu-larly noteworthy because the overallHispanic population grew by a breath-taking 43% during the 2000-2010time period.

Are advertisers and major brandsfollowing the expansion of theHispanic population?”.

According to Mark Stockdale,Director, Hispanic Marketing at T-Mobile USA, “T-Mobile recognizes the

opportunity. This means that tradi-tional focal points are no longer theonly high growth areas. There aremany secondary markets that are seeingan influx of Hispanic migration. Ifthose emerging markets overlay wellwith our footprint, we do market tothat demographic. We are a nationalcarrier and definitely cater outside thetop 10 Hispanic market. Our media

and retail merchandising efforts arenational.” Other advertisers that have“ventured” outside the top 10 Hispanicmarkets include Maseca, CricketWireless, WalMart, Verizon Wirelessand H&R Block.

Zulema Tijero, Advertising SalesDirector of Washington Post Co ownedEl Tiempo Latino in Washington DC,tells Portada that business has increasedin the last few months due to the factthat advertisers have taken notice of thestrong increase of Hispanic populationbetween 2000 and 2010 in Virginia


DOES A MARKET NEED TO HAVE AT LEAST A 12% TO 15% HISPANICSHARE OF ITS TOTAL POPULATION TO

JUSTIFY EXPENDITURES IN HISPANIC SPECIFIC MEDIA?



NOT ON THE RADAR SCREENYet, to market outside the top 5 or

top 10 Hispanic markets often fallsoutside the radar screen of majornational advertisers. “The problem isthat Emerging Hispanic markets areoften outside of the comfort zone ofclients”, says Global Works Vélez-Silva.

According to Ronnie Coates,Director of Sales of Charlotte, NC,based Norsan Multimedia, advertisersoften argue that a market needs tohave at least a 12% to 15% Hispanic

share of its total population to justifyexpenditures in Hispanic specificmedia. According to this view, marketswith a Hispanic population of wellover 700,000 like North Carolina,Georgia and Pennsylvania do not meritHispanic specific advertising. NorsanMultimedia is a Hispanic Media con-glomerate in the Southeast, offeringcoverage in North Carolina, SouthCarolina, Florida, and Tennessee. Itsmedia assets include AM, FM radiostations, Hola Noticias Newspaper,DescubreCharlotte.com as well asevents, mobile text and out of homeadvertising properties.

Monica Messina, VP NortheastRegional at LER thinks that there aretwo valid approaches for marketers:“To go into big markets who have a10%+ Hispanic share or into smallmarkets with a very high Hispanicshare. Among the latter she counts

Bakersdale in CA, which has a 45%Hispanic share. Areas of high growthin both population and purchasingpower of the Hispanic demographic arealso overshadowed by major neighbor-ing metropolis like Orange County andRiverside (Los Angeles) or Hoboken(New York). These markets often fallout of the radar screen of majornational advertisers. For example,Inland Empire, comprised of theRiverside and San BernardinoCounties, is the fastest growing area in

the U.S. for the Hispanic population.In 2010 almost 50% of RiversideCounty’s population was Latin com-pared to 29.2% in 2000.

Often local media in emerging,smaller, Hispanic markets has a higherpenetration than Hispanic media inbigger markets. This is not surprisingas smaller markets tend to be lesscompeted than the large metropolitanmarkets. Hernan Guaracao, publisherof Al Día in Philadelphia, tellsPortada that his newspaper's penetra-tion rate in Philadelphia Hispanichouseholds is higher than 80%.Thisextremely high penetration can not bematched by Hispanic newspapers inlarge metropolis such as Los Angeles,New York and Miami.

LOW SATURATION...The low saturation of advertising

messages targeting Hispanics in

Emerging Hispanic Markets can be anadvantage for marketers. Last yearMaseca organized a tour of large U.S.cities, spearheaded by advertisingagency Lopez Negrete. It includedCharlotte, NC, in the effort. PerlaWasserman, Account Service Directorat Houston based Lopez NegreteCommunications, tells Portada thatCharlotte was the only specific effortoutside the top 10 Hispanic markets.The campaign supported the Masecabrand around the 2010 Soccer World

Cup theme “Maseca tu Amuleto deSabor” talking to females and moms.The idea was to help moms to cele-brate and enjoy the World Cup withtheir families. The campaign includedradio, POS at key retailers, events atstores, and national online advertising.The campaign registered a much high-er engagement in Charlotte, where avery high number of consumers visitedMaseca storefronts.

The number of visitors was muchhigher than the one registered in similarevents in Dallas, Houston, Chicago andLos Angeles. It has to be taken intoaccount that on a proportional basis theCharlotte engagement is even higherbecause there are more Hispanics livingin Dallas, Houston, Chicago and LosAngeles than in Charlotte.

Another advantage for major

AREAS OF HIGH GROWTH ARE OFTEN OVERSHADOWED BY MAJORNEIGHBOURING METROPOLIS LIKE ORANGE COUNTY AND RIVERSIDE

(LOS ANGELES) OR HOBOKEN (NEW YORK).



brands to invest in Emerging Hispanicmarkets is that they provide a moreefficient way of learning about theHispanic market than the bigger mar-kets. The marketing/advertising expen-ditures tend to be lower and so areoverhead costs.

WHEN TO ENTER: THEFIRST SIGNSMartha Kruse, Senior Director

Multicultural Marketing at Rooms ToGo, says that usually a market is readyfor advertising messages targetingHispanics when Rooms To Go retailstores have a bilingual sales force.Kruse calls store managers to discusshow Hispanic clients are catered to.Kruse expects to start marketing inNorth and South Carolina next year.Rooms To Go has stores in Florida,Georgina, Mississippi, the Carolinas,

Tennessee, and Texas.She cites as an impediment that

sometimes the tools for effectiveadvertising placement are not readyyet. For example she says that Atlantadoes not have Hispanic TV ratingsyet. In Atlanta Rooms To Go usesHispanic radio and Hispanic newspa-pers such as Cox communications ElMundo Hispanico.

The existence of communitymedia such as a local newspaper and aHispanic radio station is another sign

of enough critical mass for an adver-tiser to enter an Emerging Hispanicmarket. According to LER’s PhillipWoodie, “Usually, a Spanish-languageradio station is the first sign that a sig-nificant Hispanic population exists ina city. Radio continues to be the pri-

mary medium to reach the USHispanic consumer - radio stationsfunction as a trusted friend whobrings news, sounds of home andinformation to their everyday life inthe US - including ads about where toshop and which brands/retailers/ser-vices want their business.”

MEDIA PROPERTIESTAKE NOTEMany media properties are adapt-

ing their offerings to reflect the increas-

ing clout of Hispanics outside the tra-ditional top 5 markets. Televisa’sPublishing and Digital’s Vanidadesincreased it’s rate base by 74% in 2011to 270,000. An important reason forthe population increase is the distribu-tion in Emerging Hispanic markets.

“We have started to increase our distri-bution in new Hispanic markets whichare “hot” as a result of the censuswhich include the Carolinas, Virginiaand Maryland, etc.”, says MarianaToledo, Marketing Manager atTelevisa Publishing and Digital.

In April Univision in Atlantalaunched full fledged newscasts afteryears of producing local news briefs,Univision 34 in Atlanta finallylaunched 2 half-hour newscasts. Theyare airing at 6 and 11 pm Mon-Fri.

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HOT NEW MARKETS:Why Brand Marketers should try them

Low level of saturation of Hispanic marketing messages

Very high growth of the Hispanic consumer base

Local Hispanic media in Emerging Hispanic markets tend to havevery high penetration rates

Emerging Hispanic Markets can be “cheap” test markets for majorbrands who want to enter the Hispanic market

First mover’s advantage

“WE HAVE STARTED TO INCREASE OUR DISTRIBUTION IN NEW HISPANICMARKETS WHICH ARE 'HOT'”



Gianncarlo Cifuentes, who had beenmanning the news briefs, is the newsdirector and anchor of the newscasts.Amanda Ramírez, Mariela Romero andOmar García round up the news team.

Atlanta’s Hispanic buying power isexpected to increase from US $4.3 bil-lion in 2000 to US $16.6 billion in2012. Cox Media owned MundoHispanico is the largest Hispanic news-paper in Atlanta, Georgia. It has anaudited weekly reach of 193,500 read-ers. Another major Atlanta Hispanicnewspaper is the weekly AtlantaLatino. Local media properties are alsoemerging. Viva Now Magazine recentlylaunched in Atlanta as a bilingual pub-lication that covers the SoutheasternU.S. (in print, on-line and multiplesocial media forums with a focus onspecial events) and is specificallydesigned to appeal to Hispanic profes-sionals and entrepreneurs “Living theAmerican Dream”. Viva Now is pub-lished in glossy magazine format; it hasa circulation of 25,000, and is pub-lished twice a year.



SOURCE U.S. Census

COMMENT Portada took Census 2010 data and ranked the top 20 Hispanic markets, outside of the top 5 CA, NY, TX, FL and IL, by Hispanic populationgrowth. According to the table, Arizona, despite its immigration laws, is the clear leader with almost 600,000 more Hispanics counted between 2000and 2010. It is followed by New Jersey, North Carolina and Georgia. These 3 states registered a growth of more than 400,000 Hispanics.They are fol-lowed by Pennsylvania, Nevada, Washington State and Colorado.

1. Arizona

2. New Jersey

3. North Carolina

4. Georgia

5. Pennsylvania

6. Nevada

7. Washington

8. Colorado

9. Virginia

10. Maryland

11. Massachusetts

12. New Mexico

13. Indiana

14. Oregon

15. Tennessee

16. Oklahoma

17. Connecticut

18. Utah

19. Wisconsin

20. South Carolina

1,295,617

1,117,191

378,963

435,227

394,088

393,970

441,509

735,601

329,540

227,916

428,729

765,386

214,536

275,314

123,838

179,304

320,323

201,559

192,921

95,076

STATES 2000

1,895,149

1,555,144

800,120

853,689

719,660

716,501

755,790

1,038,687

564,239

470,632

627,654

953,403

389,707

450,062

290,059

332,007

479,087

358,340

336,056

235,682

2010

46.3%

39.2%

116%

96.1%

82.6%

81.9%

71.2%

41.2%

91.7%

106.5%

46.6%

13%

81.7%

63.5%

134.2%

85.2%

49.6%

77.8%

74.2%

147.9%

Growth2000-2010Census (in %)

599,532

437,953

421,157

418,462

325,572

322,531

314,281

303,086

302,285

242,716

198,925

188,017

175,171

174,748

166,221

152,703

158,764

156,781

143,134

140,606

Increasein HispanicPopulation

25%

13.3%

5%

5%

3.2%

19.7%

7.5%

17.1%

4.7%

4.3%

6.8%

42%

3.5%

8%

2.2%

5.2%

9.4%

9%

3.6%

2.4%

Hisp. Shareof StatePop. 2000

29.6%

17.7%

8.4%

8.8%

5.7%

26.5%

11.2%

20.7%

7.9%

8.2%

9.6%

46.3%

6.0%

11.7%

4.6%

8.9%

13.4%

13%

5.9%

5.1%

Hisp. Shareof StatePop. 2010

TOP 20 EMERGING HISPANIC MARKETS RANKED BY POPULATIONGROWTH BETWEEN 2000 AND 2010



EDUCATION PROCESSGoing forward, a substantial part of

the growth of the Hispanic advertisingand media market is going to be inEmerging Hispanic Markets. As LER’sPhillip Woodie says, “it’s a continuingeducation process and a story which hasto be told at the client level as well asthrough the agency planning, accountand buying teams. The challenge iskeeping the emerging markets front andcenter in the client’s and agency’s mindand to continue to emphasize the amaz-ing transformation and growth theseemerging markets are experiencing.”

Woodie adds that “for the longesttime, the emphasis has been on the top15 Hispanic markets. Now, withclients wanting and needing to growtheir business and their market share,they are realizing the huge potentialemerging markets offer. “ Woodie con-cludes with an example: “If an adver-tiser is doing business in Salt Lake Cityand they haven’t allocated a portion oftheir budget to reach out to the SaltLake City Hispanic community, thentheir competition will. Their competi-tion will cultivate the Hispanic con-sumer for long into the future. And aswe all know, first one in wins.”.

IMPROVED NAVIGATIONYou will be able to find Portada Regular Features by clicking on eachfeature on the left navigation bar (below of Special Interest button). Inaddition, the expandable Channels button, also on the left navigationbar, displays thousands of articles categorized in Hispanic centric con-tent, Finance current and past issues as well as channels coveringdifferent media types.

MORE INTERACTIVE TOOLSInteract with your peers and give Portada's editorial team feedbackthrough the following interactive tools: Comment on Article, ShareArticles through e-mail, Linkedin, Twitter and Facebook and RSS Feed.

IN-DEPTH SECTIONSix feature articles in this section, provide an in-depth look at spe-cific aspects of the Latin Marketing, Advertising, Content andMedia industries.

THE WEEK AT PORTADA-ONLINE.COMOn a daily basis, You will get breaking news and commentary. Inaddition, the following regular features will be offered each week:

> MONDAY

New leads and intelligence about activity of Ad Agencies andNational Advertisers. Market intelligence to help agencies andmedia executives to reach clients.

Personnel changes. What positions are changing, which new onesare being created?

(Coming soon).

> TUESDAY

Read how and why top marketers reach the Hispanic consumer.The latest trends and qualitative and quantitative insights in tradi-tional and below the line marketing. Case studies.

BUYER/INTERVIEW (alternating with Best Practices).An interview with an important Marketer or Buyer at an Agency/Media Placement firm.

PORTADA QUICK HITSA review of interesting and/or important articles/content from aroundthe web and what we have to say about them.

> WEDNESDAY

An important topic facing the Hispanic advertising and media in-dustry and what it means for marketers targeting Hispanics.

(Alternating with Analysis)Portada's Interview with a leading player who sets and/or spotstrends in our dynamic industry. (Coming soon).

> THURSDAY

New research and statistics on how to reach Hispanic consumers,market intelligence, advertiser rankings, media rankings and more.

Digital technologies are making the Spanish-speaking world (U.S.Hispanic, Latin America, and Spain) smaller. An in-depth look athow marketers are using the digital medium nationally and inter-nationally to attract Spanish-speakers worldwide.

> FRIDAY

Thought leadership. A platform for industry experts to explain cer-tain trends and innovations and their value to the marketplace.

We recently introduced a new website to provide You the best content available about the Latin

Advertising, Media and Content Markets. These are its main features:

YOUR WEEK ATPORTADA-ONLINE.COM

1. Free content available on portada-online.com

2. Content that requires registration Registered users can get any Portada's e-newsletters, the quar-terly magazine, and/or participate in polls and provide com-ments to articles. Registering on Portada-online.com does notgrant free access to premium content.

3. Premium (paid) contentIncludes:> Premium individual articles (available for individual purchase

or through a subscription)> Databases of Corporate Marketers/Media Buyers

targeting U.S. Hispanic and/or Latin American Consumers> Reports> Conference tickets.

If you have questions and/or to order premium content,please call 1-800-397-5322.

THREE TYPES OF ACCESSPortada provides three types of online access

SALES LEADS

CHANGING PLACES

WEEKLY POLL

BEST PRACTICESMARKETING TO HISPANICS

ANALYSIS

PODCASTS

NEW RESEARCH

THE LATIN INTERACTIVEWORLD

SOUNDING OFF


FINANCING LATIN VENTURES

> BRIABE MEDIA (MOBILE MARKETING)Venice, California-based Briabe Media, a mobile marketingfirm targeting Hispanic, African, and Asian American con-sumers, last spring raised more than US $2 million in fund-ing from Stochasto Holdings AS of Norway. According toBriabe, the funding also includes a joint venture between thecompany and Stochasto Holdings AS.

> HIPCRICKET (MOBILE ADVERTISING)In August mobile ad network Hipcricket, which also has aHispanic mobile ad network, was acquired for US $44.5million by New York City based mobile marketing companyAugme Technologies.

> VOXY (MOBILE LANGUAGE LEARNING SERVICE)Voxy, a language-learning service that turns real-world con-tent into personalized language lessons, announced a new

Series A investment of US $2.8million. The series was fund-ed by Seavest Inc, ff Venture and Contour Ventures. Voxybelongs to a group of companies, which includes Edioma,who provide different offerings to the Hispanic demographic,mostly through the mobile phone. Voxy just launched aniPhone app which teaches English to Portuguese users (thusfar all its offerings have been English to Spanish users).”Webelieve that in many developing markets people will beleapfrogging browser-based applications in favor of mobiledevices,” said Voxy founder Paul Gollash.

> BATANGA ACQUIRES I-NETWORK AND AD-FUNKY(ONLINE AD NETWORK)In early June online ad network Batanga bought LatinAmerican online media companies Adfunky and I-Networkin two distinct and separate transactions. With the acquisi-

A NEW INVESTMENTBONANZA?

Good news for entrepreneurs and startups in the Hispanic and Latin American media, advertising and marke-ting services sectors. In the last few months there have been several deals involving small and medium sizedcompanies. Mobile Technologies, Local Search, Digital Advertising Services and Online Ad Networks are gettingmost of investors' interest. Other sectors with potential for funding include Web-TV, Online and Social Games,and Vertical Social Networking Sites. Below some recent transactions:

ATTRACTIVE SECTORS INCLUDE MOBILE TECHNOLOGIES,LOCAL SEARCH AND ONLINE AD NETWORKS…


FINANCING LATIN VENTURES

tions of Bogota, Colombia, based I-Network and BuenosAires, Argentina, headquartered Adfunky, Batanga Networksignificantly increases its audience, publishing partners andsales organization. GroupArgent represented Adfunky and I-Network in this transaction and acted as their exclusive finan-cial advisor. The details of the transactions were not disclosed.The I-Network business led by Juan Carlos Samper, will con-tinue as is in the region with operations in 14 countries. I-Network will also continue to represent Microsoft Networkproperties in Latin America. Juan Carlos Samper who willcontinue to act as I-Network’s CEO, says that I-Network,together with Batanga’s team, will continue to develop itsAdstars performance advertising unit, which will also enterthe Brazilian market soon. Based in Argentina, Adfunky is agrowing ad network and digital media company.

> DEMAND MEDIA BUYS EMERGING CAST(Content Farm)

In August Demand Media acquired Emerging Cast, aBuenos Aires, Argentina, based company led by Argentineanentrepreneurs Max Goldenberg and Damián Voltes. Withthe acquisition Demand Media expands into the U.S.Hispanic and Latin American markets with Spanish-languagecontent. In fact, it is launched the beta version of eHowEspañol in August. Demand Media, a public company, is aso-called content farm, a firm that produces content (texts,images, videos etc.) according to the requirements of userssearching at search engines.

> PROSPECT CAPITAL BUYS MEDIA DIVISION OF ALLOY (Multicultural Print and Out of HomePlacement Firm)

In July the Media Buying Business under Alloy Media +Marketing was acquired by Prospect Capital Corporation, apublicly traded investment company that specializes in mez-zanine finance and private equity investments. Effectiveimmediately, the company will operate under the new namere:fuel (www.refuelnow.com), with continued focus on printmedia buying, out-of-home and sampling services centeredon targeted consumer segments including youth, military,multicultural and local audiences, according to President andChief Executive Officer, Andrew T. Sawyer, who previouslyled the division under Alloy. “Prospect invested $32 millionin the media buying units of Alloy Media + Marketing,”Greg Anthony, SVP Sales of re:fuel told Portada.

> VSS FUNDS MEDIARESPONSE (DirectResponse Media)

In 2008, New York and London based media investmentfirm VSS (Veronis, Suhler & Stevensohn) invested US $15million in a group of direct response online marketing firmsactive in Spain and Latin America. The companies includede-mail marketer Canalmail and in text contextual advertisingfirm HOTWords. The companies have been regrouped underthe MediaResponse umbrella. Other firms are SEO/SEMcampaign management (Newbriefing); email list brokering

(LeadtoLead) and an online ad network with behaviouraltargeting technology (Efficienttarget). MediaResponse isheadquartered in Madrid and has additional offices inPortugal, Brazil, Mexico and Argentina.

> MATOMY-ADPERIO (Online Ad Marketing)Online ad company Matomy Media Group Inc, previouslynamed Adsmarket, acquired US digital advertising compa-ny Adperio Inc. for US$ 30 million in July. The acquisi-tion will enable Matomy to expand its advertising and mar-keting foothold in the US, while giving Adperio’s clientsgreater access to European and Latin American marketswhere Matomy operates. This is the second acquisition byMatomy, after acquiring Mexican advertising firm ErgosMedia in 2010.

> KNOWLEDGE NETWORKS-GARCIA RESEARCH (Research)

In July research firm Knowledge Networks acquired GarciaResearch Associates (GRA). According to KnowledgeNetworks, with the acquisition of GRA Cada CabezaSMonline panel and team of expert researchers, KnowledgeNetworks has elevated its long-standing commitment toHispanic consumer research, becoming the leading force forunderstanding how to capture US $1 trillion in U.S. buyingpower among Spanish-speaking Americans.” .

> GLOBAL LATIN AUDIENCES

> THE MOBILE/SMARTPHONE REVOLUTION

> STRATEGIC BUYERS

> INCREASINGLY HOLISTIC MARKET APPROACHIN THE U.S.

WHY INVESTMENT DOLLARSMAY CONTINUE POURING IN

Due to the expansion of interactive-digital-technologies, mediacompanies and content producers worldwide can reach Latinaudiences regardless of where these audiences are based.This facilitates media and marketing companies to realize eco-nomies of scale.

The smartphone is a new and essential instrument in the day ofthe average consumer. The case is even stronger in theHispanic market, because Hispanics over index in mobileusage. In addition, Hispanic mobile phone users also over indexin smartphone usage.

Industry giants like Mexico’s Televisa and Spain’s Grupo Prisaare always on the lookout for ventures that are leaders in spe-cific niches and/or have know-how of technologies with stronggrowth potential.

Two independent Hispanic research firms (Encuesta Inc andGarcia Research) recently integrated, in one form or another,with general market firms. clients are looking at the market ina more integrated way and are looking for research and adver-tising agencies that provide excellent Hispanic capabilitiestogether with other multicultural and general market skills.This is driving M&A and financing.


We conducted an interview with Larry Upton, Founder and President ofEdioma, a provider of mobile phone and Internet-based language instructionproducts designed to help companies communicate more effectively with cus-tomers, employees and partners. Edioma’s clients include 7-Eleven.

BEST PRACTICESUSING MOBILE COMMUNICATIONS TO

REACH HISPANIC CUSTOMERS

Portada: How does Edioma teach major brands to learn theSpanish-language and cater to Hispanic customers? Larry Upton: “As you may already know, US Hispanics are thefastest growing retail customer segment for many large CPG's(Consumer Packaged Goods Companies). However, traditional out-of-home marketing programs (e.g., print, broadcast, online) don'teffectively target Spanish-dominant consumers. The resulting “lan-guage differences” often lead to a cross-cultural communications gap:> Most 1st generation, Spanish-speaking customers don't read USpublications (e.g., USA Today, WSJ, NYT) and often preferSpanish-language programming (e.g., Univision, Telemundo) totraditional broadcast TV.> English speaking service staffs often encounter problems commu-nicating and doing business with Spanish speaking customers, notonly from a language perspective, but likewise from a lack of “cul-tural understanding,” i.e., the highly familiar, word-of-mouth basedreference shared among Hispanics. Typically, the Hispanic con-sumer enters the US retailer hoping to be greeted, informed, andsold to based on a recommendation from a trusted friend/familymember... not simply from an ad touting the virtues of one prod-uct/service over another. > Traditional language training programs (e.g., Rosetta Stone,Berlitz) are often costly and don’t scale well for multi-location, geo-graphically disparate retail operations.”

Portada: How do you try to remedy this? Larry Upton: “First, targeting US Hispanics with culturally rele-vant, compelling offers over an easily accessible, ever-present plat-form, their mobile phone. Second, the platform trains US retailstaffs in how to better engage, service, and sell to Spanish-speakingclients via contextual language instruction (e.g., greetings, courtesyphrases, problem-solving). We utilize the “lowest common denomi-nator” of SMS (text messaging), coupled with embedded IVR (inter-active voice response) and microsite links to deliver mobile market-ing promotions and language instruction content directly to the cus-tomer/ associate's mobile phone. Thus we “connect” the Hispanicconsumer to the retailer by providing a compelling promotion whichdrives foot traffic to the retailer, then prepares the retailer to activelyengage/up-sell the consumer in Spanish once in-the-door.”

Portada: You work with 7-Eleven can you share and explain thedata you got from your work with them? Larry Upton: “7-Eleven recognizes that Hispanics are their fastestgrowing consumer segment, representing over 23% of their grossbusiness. However, many of their franchisees are of non-US origins,hence not typically educated in the Spanish language, most speak

Hindi, Urdu, or Arabic as their native language. 7-Eleven chose towork with edioma, as our mobile phone based language instructionplatform represents a cost-effective, scalable, easily-deployed meansby which they might educate their counter staff in Spanish languagegreetings, courtesy phrases, and up-sell terminology. We've beenworking with a number of Chicago-based 7-Eleven locations overthe past 14 months and have achieved notable results including:> Over 80% proficiency gains in spoken Spanish > Over 23% increase in Hispanic customer satisfaction> Over 50% close rates on Spanish language up-sell programs.”

Portada: How do you measure these results? Larry Upton: “As a means to demonstrate ROI for 7-Eleven'sinvestment, edioma contracted a 3rd party consumer polling group(PMG, San Antonio, previous work with P&G, J&J, etc.) to con-duct “customer intercepts” among Spanish-dominant 7-Eleven cus-tomers as they entered/exited 7-Eleven retail locations. This con-sumer research group polled nearly 800 customers over a one-yearperiod, compiled their feedback, and extrapolated the results asdetailed above.”

Portada: You say that English-speaking retail staff has difficul-ties in engaging and up-selling in Spanish. Do you mean thatthe retail staff targeting Hispanic customers should be Spanish-dominant (at least)? If so, why? Cant they bilingual? Larry Upton: “No, we do not necessarily believe that US retail staffshould be “Spanish dominant” before they can adequately serviceHispanic customers; simply that they should be able to meet, greet,thank, and sell products in Spanish.”

Portada: Can you provide data about the way advertising/partic-ularly direct response advertising should relate to a Spanish-lan-guage sales force? Larry Upton: “Typical direct response advertising campaigns strive toachieve a 2-3% response rate from target customers. We believe thisshould be much higher, particularly for the highly mobile-centricHispanic population. We therefore strive to achieve a minimum 6%response rate on our programs, coupled with a 40%-plus “click-thru”rate on retail promotions. However, high direct response rates are onlythe first half of the equation: if Hispanic customers come into a retaillocation to take advantage of a compelling offer only to find them-selves unable to communicate with retail staff, the promotion will fallon deaf ears (no pun intended). Thus the out-of-home mobile cam-paign needs to be closely tied to an in-house Spanish language trainingprogram designed to improve the retailers' ability to engage and thenactively up-sell the promotion to Hispanic consumers.” .


ANALYSISDO PREPRINTS (FSI’S) WORK BETTER

IN SPANISH OR ENGLISH?

It’s an important question for advertiserswho reach Hispanics through magazines andnewspapers. Other relevant questions andanswers: What brands advertise in Spanish,which ones in English? Should FSI’s exclu-sively be in Spanish? If so, does it even makesense to buy English FSI’s? How does thisrelate to in-store signage and customer serv-ice? Portada’s editorial team asked advertisersand media about their experience.

“Generally we prefer to place FSI’s inSpanish”, says Martha Kruse, SeniorDirector of Multicultural Marketing atRooms To Go. “While response can’t bemeasured accurately, common sense saysthat placing in Spanish-language is a serviceto our audience”. Anita Grace, president ofAnita Grace Ad Execs, a firm that sellsadverti-sing into Hispanic newspapersincluding Phoenix La Voz, La PrensaRiverside and Orange County’s Excelsior says

that she tries to convince advertisers toinsert in Spanish.” It is usually the idealway because it relays the feeling that theadvertisers is talking to its audience.”

However, sometimes for logistic andcost reasons FSI’s placed in Spanish-lan-guage newspapers are in English. Is it betterto insert no FSI’s whatsoever into Hispanicnewspapers or insert English-languageones? “I would recommend to place inHispanic newspapers even if they are inEnglish. This is because Hispanic newspa-pers often distribute in areas reachingHispanics that are not reached by othermedia, Kruse notes. Rooms To Go ispresent in Florida, Georgia, Mississippi,Tennessee, Texas and the Carolinas.However, Rooms To Go does use bilingualmessaging in preprints that are directmailed, because these mailings are moreprone to reach bilingual or even English

dominant Hispanics. (A Spanish-languagenewspaper already qualifies its audience asmostly Spanish-dominant.)

Oscar Castro, Director International E-Commerce at Sears, and responsible for therecently launched Sears.com/espanol site,says that “the target audience forSears.com/español is Spanish-preferring UScustomers. As a result, we use Spanish lan-guage advertising to let our customers knowthat they have an online option available tothem. We also work with relevant publica-tions, in relevant markets, to ensure that themessage is reaching the right people.”

While direct mailed coupon books target-ing Hispanics tend to be in English,Marketing Services firm Valassis, mails out itsRedplum direct mailed preprint with a bilin-gual masthead in heavily Hispanic populatedmarkets such as Southern California, Miamiand Texas. The company also has the abilityto target sub zip codes that are heavily popu-lated by Hispanics. Hispanics have movedtowards suburbia over the last ten years. Thistrend has also favored FSI insertion, as news-papers have tended to substantially increasetheir distribution through home – delivery(for instance Al Día in Dallas). FSI advertis-ers, generally retailers, prefer to insert inhome delivered newspapers for several rea-sons: FSI’s can easily fall out of rack distrib-uted newspapers and will not reach the read-ers homes. Second, the main household deci-sion maker, often the housewife, is betterreached with a home-delivered newspaper. .

Lowe's, Home Depot,P&G/News America, BestBuy, Staples, Dish Latino

SPANISH LANGUAGE ENGLISH LANGUAGE BILINGUAL

CVSTarget, Sears, OfficeMax,Best Buy, Radio Shack,Valassis and News Americacoupon books, Petco, SmartSource magazine, local autodealers, CVS, Toys R’us

“EN INGLES O ESPAÑOL?” What major Advertisers do

SOURCE Portada SurveyNOTE The fact that an advertiser is listed in one of the categories (English,Spanish or bilingual)does not mean they do not advertise in another language.


ONLINE VIDEO

Total Internet Hispanic All

Google Sites

VEVO

Microsoft Sites

Viacom Digital

FACEBOOK.COM

Yahoo! Sites

AOL, Inc.

Turner Digital

Hulu

NBC Universal

TOP CONTENTPROPERTIES

Visits(Sessions)(000)

MinutesperViewer

WHAT YOU NEED TO KNOW ABOUT HISPANICONLINE VIDEO USAGE

823,150

340,258

68,344

35,098

40,878

21,291

23,108

25,775

11,910

12,227

4,419

TotalUniqueViewers(000)

26,341

22,223

10,998

7,694

7,268

6,741

6,101

4,955

3,563

2,743

2,172

911.2

341.9

119.2

32.8

82.2

17.6

38.9

47.3

26.7

152.8

13.6

Google, Microsoft, Vevo dominate(Hispanic — All/June 2011)...

Total Internet Hispanic -

Spanish Primary

Google Sites

VEVO

Microsoft Sites

FACEBOOK.COM

Viacom Digital

Yahoo! Sites

USTREAM.TV

AOL, Inc.

Univision Communications Inc

Justin.tv Sites



MinutesperViewer

198,188

81,720

16,096

8,140

5,847

6,707

3,284

6,261

3,251

2,122

13,905


5,151

4,676

2,486

1,913

1,677

1,355

894

778

714

708

685

1,238.1

410.4

136.6

40.7

22.3

76.1

35.7

153.3

67.3

22.2

466.9

...and the Spanish dominant segmentwatches many more minutes (Hispanic -Spanish Primary / June 2011)...


Bilingual

Google Sites

VEVO

Viacom Digital

Microsoft Sites

FACEBOOK.COM

Yahoo! Sites

AOL, Inc.

Turner Digital

Hulu

Univision Communications Inc



MinutesperViewer

SOURCE ComScore

COMMENT> Out of a total universe of 26.4 million unique visitors a relatively small proportion of Spanish primary speakers (5.1 million) watch online video. > Interestingly, if they watch videos online, Spanish-dominant Hispanics spent substantially more time (50% more!) than English — dominantHispanics watching them.: 1238 minutes per viewer/month, versus 811 minutes per viewer. > While Google and to a lesser extent Vevo dominate both the English dominant and Spanish-dominant spectrums, Microsoft sites are higher rankedin the Spanish primary ranking than n the Bilingual and English Dominant rankings. Univision makes the 9th position among Spanish-dominantHispanics ranking, 10th for Bilinguals and falls out of the top 10 ranking for English primary and the overall ranking.

237,197

110,730

21,866

12,032

8,949

6,410

5,338

7,045

3,000

4,308

1,870


7,480

6,576

3,446

2,233

2,221

2,051

1,636

1,478

927

775

740

869.4

378.6

124.2

79.5

28.1

16.7

19.5

45.7

28.8

195.1

23.9

...Univision.com also makes top ten listamong bilinguals (Hispanic - Bilingual /June 2011)...


English Primary

Google Sites

VEVO

Viacom Digital

Yahoo! Sites

Microsoft Sites

FACEBOOK.COM

AOL, Inc.

Turner Digital

Hulu

NBC Universal



MinutesperViewer

387,766

147,809

30,383

22,139

14,486

18,009

9,034

15,479

7,729

6,859

3,065


13,711

10,971

5,066

3,680

3,571

3,560

3,013

2,763

2,080

1,660

1,433

811.2

290.7

107.3

86.2

48.5

31.5

15.7

42.9

29.8

136.5

16.6

...but falls out of the top 10 for English-preferred (Hispanic - English Primary /June 2011)


ONLINE VIDEO


Blakborn, president of MaximumTV. Start up companies likeMaximumTV and ButacaTV are tryingto fill this gap as they are 100% focusedon Spanish-speaking U.S. Hispanics.

Google’s YouTube, which mostlyprovides user generated video content,has been and still is the driver of over-all online video viewership. Digitalmedia veteran Juan José Duran wasrecently hired by YouTube as StrategicDevelopment Partnership Manager forYouTube in the U.S. Hispanic market.Duran tells Portada that his main aimis to bring Hispanic content intoYouTube through partnerships with allpremium content players in the U.S.

“While the US Hispanic audienceover-indexes on use of internet andmobile, the advertising offering is trail-ing behind. Ad agencies and theirbrand customers are constantly lookingfor online video opportunities to adver-tise to US Hispanics in the right con-text, not just another US commercialsomewhere on a Hispanic site,”Blakborn says. Maximum TV providesa Hispanic online TV destination. Itclaims to have the largest TV and videocontent library, mostly in Spanishfocused on the U.S. Hispanic audi-ence/population. Its content partnersinclude Venevision, SUR, Azteca,Caracol, Multimedios, RCN, etc. “

GROWTH IN THE GENERALMARKETIn the general market, video adver-

tising is growing faster than all otheronline ad formats, and this yeareMarketer estimates online video willsurpass rich media in terms of adspending. US online video advertisingspending will grow 52.1% to $2.16billion, up from $1.42 billion last year,when the video ad market grew39.6%. By 2015, eMarketer expectsthe online video advertising market togrow to $7.11 billion. According toDavid Hallerman, an expert ofresearch firm eMarketer, “Marketersincreasingly see the internet as a placewhere brand advertising, especially inthe form of video advertising, is effec-tive,” said Hallerman. “Combinedwith greater targeting and measure-ment than marketers get with TV ads,

the growing consumption of onlinevideo has done more to attract brandsthan any other online ad format.”

The volume of the U.S. Hispaniconline video advertising market ismuch lower, in a big part due to thescarcity of offerings. According toMaximum TV’s Blakburn, “As brandmarketers / advertisers start to shiftmore and more to true US Hispaniccontextual (Spanish language) advertis-ing, two categories will grow signifi-cantly: online video (professional con-tent sites) and mobile advertising(including mobile video).”

CURRENT HISPANIC ONLINEVIDEO CAMPAIGNS...Many advertisers targeting

Hispanics are already using onlinevideo. Right now telecommunicationcompanies (e.g. Verizon, Sprint), carcompanies (e.g.Toyota), insurances(Allstate and Farmers) and some con-sumer goods companies (P&G) aretaking a very active role in creatingthis category.

Differently than regular TV adver-tising, online video advertising can betargeted and measured, much more sothan TV advertising, says KarenTreydte, VP, Director of MediaServices, at Casanova Pendrill whereshe buys and plans media for brandsincluding General Mills and U.S.Army. “We incorporated online videoboth in-banner and pre-roll for Tr3s.They were revamping their program-ming line-up and our primary strategywas to get examples of the new pro-gramming in front of as many poten-tial viewers as possible. So, in additionto television/cable, online video was aprimary component of the mediaplan,” Treydte notes.

Yahoo-and Procter & Gamblerenewed their agreement for the DeModa site (http://espanol.blogs.mujer.yahoo.com/de-moda/) in July. In 2009Yahoo partnered with P&G to launch

the Démoda site, a site promoting styleand fashion for Hispanic women.Currently the partnership is entering itsfourth year. The site is sponsored byP&G’s brand Olay during the first sixweeks and then will rotate every sixweeks to other P&G beauty brandssuch as Covergirl and Pantene.DeModa has a strong brand integrationworked through online videos, premi-um product placement and theme spe-cific blogs. Tapestry Multicultural inChicago and MG’s Connected Tissueunit in NYC worked together withYahoo!’s team on the project.

...PROVIDING MORETARGETED AND ENGAGEDAUDIENCESAccording to Casanova Pendrill’s

Karen Treydte, “online video givesadvertisers the ability to target lighterTV viewers with video content. Theonline space in general provides accessto video outside of typical television dayparts and programming and can engageusers in a more active fashion (viewersmay tend to multi-task when viewingtelevision, not the case with onlineviewership). In addition, the combina-tion of online video in addition to tele-vision can elevate the overall effective-ness of both platforms. Hispanics areembracing online video more than theirnon-Hispanic counterparts, in part dueto the fact that content relevant tothem is not prevalent in mainstreambroadcasting. This behavior providesadvertisers with an opportunity toengage users when and where theychose to consume video content.”

Kevin Conroy from Univision saysthat Univision sells video advertisingprimarily on a premium CPM basisboth online and on mobile. “We selllive streaming, pre-roll with tandem adunits, and clickable video pre-rolls.Video is by far the most sought afterand most premium of the ‘display’ adtypes in the market today.” .

Original ContentSyndicated ContentUser Generated Content (e.g. most of YouTube con-

$25-30$16$6

TYPE OF CONTENT CPM’s (Cost per thousand impressions)

NOTE CPMs Online Video publishers can charge for different types of content on pre-roll onlinevideo advertising

What it costs Advertisers


STATISTICS IN CONTEXT

Minority youth aged 8 to 18 consume an average of 13hours of media content a day- about 4-1/2 hours more thantheir white counterparts, according to a NorthwesternUniversity report, the first national study to focus exclusivelyon children’s media use by race and ethnicity. Interestingly,minority youth are especially avid adopters of new media,spending about an hour and a half more each day thanWhite youth using their cell phones, iPods and other mobiledevices to watch TV and videos, play games, and listen tomusic (a total of 3 hours and 7 minutes, or 3:07 in mobilemedia use among Asians, 2:53 among Hispanics, 2:52among blacks, and 1:20 among whites).

“In the past decade, the gap between minority and whiteyouth’s daily media use has doubled for blacks and quadru-pled for Hispanics,” says Northwestern Professor EllenWartella, who directed the study and heads the Center onMedia and Human Development in the School ofCommunication.

“Our study is not meant to blame parents,” saysWartella, a longtime Sesame Workshop trustee and HamadBin Khalifa Al-Thani Professor in Communication. “Wehope to help parents, educators and policymakers betterunderstand how children’s media use may influence healthand educational disparities.”

OTHER REPORT FINDINGS

> Traditional TV viewing remains the most popularof all media -- with black and Hispanic youth con-suming an average of more than three hours of liveTV daily (3:23 for blacks, 3:08 for Hispanics, 2:28for Asians and 2:14 for whites).

> TV viewing rates are even higher when data ontime-shifting technologies such as TiVo, DVDs, andmobile and online viewing are included. Total dailytelevision consumption then rises to 5:54 for blackyouth, 5:21 for Hispanics, 4:41 for Asians, and 3:36for whites.

> Black and Hispanic youth are more likely to haveTV sets in their bedrooms (84% of blacks, 77% ofHispanics compared to 64% of whites and Asians),and to have cable and premium channels available intheir bedrooms (42% of blacks and 28% of Hispanicscompared to 17% of whites and 14% of Asians).

> Minority youth eat more meals in front of the TVset -- with 78% of black, 67% of Hispanic, 58% ofwhite and 55% of Asian 8- to 18-year-olds reportingthat the TV is “usually” on during meals at home.

Hispanic Parents Beware! Minority Youth Spend90 Minutes more with New Media than White Youth

SOURCE The Pew Research Center’s Internet & American LifeProject, April 26 - May 22, 2011 Spring Tracking Survey. n=2,277 adultinternet users ages 18 and older, including 755 cell phone interviews.Interviews were conducted in English and Spanish.

COMMENT A notable and persistent trend is that non-white adultinternet users have higher rates of video-sharing sites, such asYouTube, Flickr and Vmeo, than their White counterparts, a consis-tent finding since 2006, according to a recent report by PewResearch Center's Internet & American Life Project. Overall, 69%of white internet users said they had visited video-sharing sites, 13points higher than in April 2009, and more than double the 31%reported when the question was first asked in December 2006.2 Atthe same time, 79% of online non-whites –African-Americans,Hispanics and others– reported using video-sharing sites. Thatfigure is 12 points higher than April 2009, and 41 points higher thanin 2006.Overall, more online Americans are using video-sharing sites—andthey are doing so more frequently. As of May 2011, 71% of onlineadults reported watching videos on a video-sharing site such asYouTube or Vimeo. A demographic portrait of these site users is inthe table below.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

69%

Typical Day Total

25%

White,Non-Hispanic

Non-White

79%

34%

African-Americans and Hispanicsare more likely than Whites to visitvideo-sharing sites.


STATISTICS IN CONTEXT

Brick and Mortar Stores Remain Shopper’s ChoiceCOMMENT Brick and Mortar stores remainthe shopper’s choice. Despite the digital re-volution and its impact, 78% of all purchas-es of general merchandise are made instores. Not that the internet has not impact-ed the way consumers shop, but the pur-chase is made in a store. These days, con-sumers are much more considered withtheir buying. They buy less on impulse andimpulse buying is mostly taking place inbrick and mortar stores. A recent Yahoostudy agreed with the data from this re-search that impulse is tough online. Foradvertising the implications are that themerchandise marketed in weekly advertis-ing circulars is usually carefully selected todrive store traffic and usually loaded withlost leader incentives hoping to get impulsesales once in store. That means that digitiz-ing those circulars online may requireremerchandising or differentiating in storespecials from online ones.

ADVERTISER INDEX

>>>>>>>>

ONLINE SHOPPING VS. BRICK ANDMORTAR SHOPPING BEHAVIOR78% of Adults buy in a storeThe average in-store shopper visits 1.5 storesThe average online shopper visits 2.6 sitesImpulse Shopping: More likely in store than online Impulse Shopping -Toys: 45% In-store, 18% onlineImpulse Shopping - Women’s Wear: 47% In-store, 29% onlineImpulse Shopping - Men’s Wear: 40% In-store, 26% onlineImpulse Shopping -TV/Entertainment: 38% In-store, 22% online

SOURCE How America Shops and Spends Study — 2011, Newspaper Association of America

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28

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4-II

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