Hispanic media usage in the US

Who will grow your business?Fastest Growing Segment in outside of BRICProjected Growth of Hispanic Buying Power(Disposable Income, in Billions) $1 Trillion $1.5 Trillion +50% 2010 2015Source: Selig Center for Economic Growth, University of Georgia 2 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Facts about Hispanic population 26% 19 of kids of the Top 100 surnames under 5 27 in the U.S. 16% are Hispanic years old is are Hispanic of the the median ageU.S. population of the Hispanic population. 50 million Total U.S. population: 37 years old 66% of Mexican Decent 48% Puerto Rican 9% of Hispanics Central Am 8% live in California or Texas 3 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Source: U.S. Census Bureau NAA 11th Annual Wall Street Summit

Hispanics are heavy movie goers 85% go to the movies (vs. 72%) and watch 10 movies per year (vs.7) 26 % of heavy 23% of total moviegoers tickets soldSource: NRG Moviegoing Benchmark 2010 Study 4 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanic Industry Beliefs and Myths Hispanics are too complex • Across nationalities, Hispanics share cultural similarities that influence shopping behavior and media habits • Just as in general population targeting, focus should be on highly influential factors such as household age and size • The key is to understand one’s particular Hispanic consumers, and target their habits and behavior without fixating on labels and over-segmentations 5 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanic Industry Beliefs and Myths Hispanics have low Income disposable & buying power • U.S. Hispanics would rank as the 12th largest economy in the world, with over $1 trillion in purchasing power • While Hispanics make fewer shopping trips compared to the general population, they spend the most per trip and annually • In 2015, Hispanic purchasing power will grow to larger than all but 8 economies in the world 6 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanic Industry Beliefs and Myths Hispanics are late adopters of technology • 62% have access to the Internet at home • Are more likely to have a Smartphone than the general market (45% vs. 35%) • Spend $107 per month on their cell phones (vs. $96 for Whites) • They stream 6+ hours of video vs. only 3:50 for Whites 7 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Latino Life WATCH 33 hours of television per weekSEND/REC941SMS per month(more than any other group)MAKE 13calls per day STREAM VIDEO SPENDTotal Population: 9 6:15 $51 hours per month per grocery tripTALK 812voice minutes per month Total Population: 3:50 9 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Today, Hispanics spend the most annually and per trip Total Retail Channels Shopping Trips Per Household Basket Ring Dollars Per Trip 150 146 $50.60 $50.10 143 $46.00 Hispanic – Spanish Preferred Hispanic – English Preferred White Non-HispanicHispanics spend Use less More frequently Are more$364 more per coupons shop in brand loyal;household than or buy on superstores, mass value qualityWhites in a year. deal less merchandisers, dollar over price often and drugstores Source: Homescan®, a service of The Nielsen Company Total U.S. 52 weeks ending 12/25/2010; excludes gas only or Rx only trips 10 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanic households spend more on categories for babies and young children Dollar Index to Nielsen Category Hispanic Households Purchase Index Equals Percent of Dried Vegetables & Grains 239 Dollars Divided Women’s Fragrances 157 by Percent of Households Baby Food 145 times 100 Disposable Diapers 116 Mens Toiletries 130 Shortening Oil 163 Cereal 108 Hair Care 134 Shelf Stable Juices Drinks 138 Laundry Supplies 120Source: Nielsen Homescan, 52 Weeks Ending 12/25/10 11 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Which categories will benefit from the shifts in demography? Projections to 2020 Percent of Volume from High Growth Demo Groups60% Liquid Hand Hand & Body Soap55% Lotions Liquor Baby Formula50% Cereal Flour Disinfectant Shortening, All Purpose Sprays45% Oil Wipes Snacks Eggs Pasta40% Shaving35% Needs30% Beverages Mexican Frozen25% Sauces Breakfast Suntan Preparations Bubble Size = Size of Category in $20% 5.0 8.0 11.0 14.0 Year 2020 $ Volume Growth Rate (Average = 8.1) 12 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanics have leapfrogged to mobilePercent of HH/persons with access to technologyMobile web 9 not PC 3Smartphone 45 Hispanics 35 US Only cell 31 24 Internet 66 79 DVR 31 39 TV 97.1 96.7 Source: Nielsen National Television Panel 13 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanics are heavy video users inother screensTotal Monthly video usage by Ethnicity (HH:MM) 4:20 Mobile video 3:37 +20% 6:15 Online video 3:50 +60% Hispanics Non-Hispanics 21:58DVR playback 25:26 133:21 TV 153:31 Source: Nielsen National Television Panel 14 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Hispanics spend more time in videoand social networksMonthly use of internet by activity - HH:MM Asian 20:58 9:11 6:59 37:08 Hispanic 11:45 6:15 8:13 26:13 Browsing Streaming video Social networks African American 12:55 5:58 8:19 27:12 Total US 14:50 4:39 7:19 26:48 Source: Nielsen Online Panel 15 Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

Since 2005 The Growth in English Mostly Young AdultsHas Dominated the Young Adult Segment AmongHispanics, what is the long-term trend?Hispanic population 18-24 by language use(000) 16 Copyright © 2011 The Nielsen Company. Confidential and proprietary.

Hispanic media usage in the US

by Jerry Rocha

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