Fragmentation and Segmentation of U.S. Hispanics Online Florida State University June 18, 2009 Joe Kutchera Director of Spanish-Language Markets ADSDAQ by ContextWeb 212.932.8718 [email_address]

Overview Challenge or Opportunity? Case Study: The Home Depot vs. Best Buy Global or local sites? Global Trends Growth of Spanish-language media online globally What will the Internet look like in 3-5 years? The Solution New Ways to Target (Hispanic) Consumers Online Media Planning Check List Questions

Challenge or Opportunity?

Case Study: The Home Depot vs. Best Buy

Global or local sites?

Global Trends

Growth of Spanish-language media online globally

What will the Internet look like in 3-5 years?

The Solution

New Ways to Target (Hispanic) Consumers Online

Media Planning Check List

Questions

“ They were not customers or even potential customers, because [The Home Depot] did not have stores there and we don’t ship out of the country.” (The Home Depot has 75 stores in Mexico.)

“ We hear employees telling us that people are coming in with printouts from the Spanish web page.” “ We are seeing a lot of traffic coming from Mexico, Venezuela, Spain and Brazil.” “ We are trying some different things that would allow customers who are shopping from outside of the U.S. to make easy payments using international credit cards and then pick up [at Best Buy stores] in the U.S. if they are planning a trip.”

“ A look at the top-50 ostensibly U.S. websites shows that many are getting more traffic from abroad than from the U.S. The New York Times gets 42% of its visitors from abroad, Twitter 51%, YouTube 81% and Facebook 82%.” "The concept of a global centralized buying across media owners is sexy," Blake Chandlee of Facebook said. "But the reality of it is that most of these organizations have channel conflicts and internal feuding."

How do U.S. Hispanics find sites from Mexico, Spain or Argentina? Type Spanish terms into their favorite search engine!

Why are U.S. Hispanics visiting foreign sites? Google's mission is to organize the world's information and make it universally accessible and useful.

Top Indexing Sites for Spanish-Speakers in US Weblogs SL Sites MundoAnuncio Adam4Adam.com MercadoLibre.com ParaChatPro.com Musica.com Grupo Prisa IT&IS Siglo XXI Grupo Salinas El Tiempo Site/Network Country of Origin Content Tech/Autos Classifieds Gay Network Shopping Chat Music News/Politics Travel News/Entertainment News Fuente: comScore Media Metrix. Top Indexing Sites among U.S. Hispanics 18+, Dec. 2008

Weblogs SL Sites

MundoAnuncio

Adam4Adam.com

MercadoLibre.com

ParaChatPro.com

Musica.com

Grupo Prisa

IT&IS Siglo XXI

Grupo Salinas

El Tiempo

Comparison of Traffic : U.S. Latin Amer. Spain 4,056,000 3,732,000 866,000 1,971,000 8,339,000 4,773,000 1,127,000 3,938,000 364,000 611,000 6,524,000 2,112,000 Source: ComScore, April/May, 2009

U.S. Latin Amer. Spain

4,056,000 3,732,000 866,000

1,971,000 8,339,000 4,773,000

1,127,000 3,938,000 364,000

611,000 6,524,000 2,112,000

Comparison of Traffic : Source: Alexa, June, 2009

Comparison of Traffic : Source: Alexa, June, 2009

Returning…..to the Past?

Returning…..to the Past?

Returning…..to the Past?

Global Trends

The 10 Most Used Languages on the Internet Millions of Users Online Source: Internet World Stats – www.internetworldstats.com/stats7.htm 1. English 430.8 2. Mandarin 276.2 3. Spanish 124.7 4. Japanese 94.0 5. French 68.2 6. German 61.2 7. Arab 59.9 8. Portuguese 58.2 9. Korean 34.8 10. Italian 34.7

Top Natively Spoken Languages in the World Mandarin: 873,000,000 Hindi: 366,000,000 Spanish: 322,300,000 English: 309,350,000 Arab: 206,000,000 Portuguese: 177,500,000 Bengali: 171,000,000 Russian: 145,000,000 Japanese: 122,400,000 German: 95,400,000 Source: Wikipedia, 2009

Mandarin: 873,000,000

Hindi: 366,000,000

Spanish: 322,300,000

English: 309,350,000

Arab: 206,000,000

Portuguese: 177,500,000

Bengali: 171,000,000

Russian: 145,000,000

Japanese: 122,400,000

German: 95,400,000

Where Are Computer Prices Going ?

Comparison of Spanish-language Markets Population Internet Users (ComScore) 110,000,000 24,822,979 45,500,000 24,600,000 46,000,000 18,456,000 40,000,000 10,158,000 45,000,000 7,714,000 17,000,000 5,975,000 Sources: Wikipedia ; ComScore, March, 2009

Population Internet Users (ComScore)

110,000,000 24,822,979

45,500,000 24,600,000

46,000,000 18,456,000

40,000,000 10,158,000

45,000,000 7,714,000

17,000,000 5,975,000

Solutions to Effectively Target U.S. Hispanics Online

Media Planning: Vertical? Or Horizontal? Magazines Television Newspapers Country City State By Language, Content or Interest By Profession or Company Name

New Ways to Target (Hispanics) Online Geo-targeting: Country, State and DMA Behavioral Targeting BDM: Business Decision Maker Family planner Contextual Targeting Autos Entertainment Sports

Geo-targeting: Country, State and DMA

Behavioral Targeting

BDM: Business Decision Maker

Family planner

Contextual Targeting

Autos

Entertainment

Sports

How does Contextual Targeting Work? The technology reads the content on page Ad Space Matches it with content category and client ads Contextual ad placement

New Ways to Target (Hispanics) Online Search / Keywords Search engines Content pages Profession / Company Creative re-targeting Follow-up offers Language-Based Behavioral Targeting Country-of-origin targeting

Search / Keywords

Search engines

Content pages

Profession / Company

Creative re-targeting

Follow-up offers

Language-Based Behavioral Targeting

Country-of-origin targeting

How does Language/Behavioral Targeting work? Potential customer visits 5+ Spanish-language content pages Cookie is dropped on user’s computer Customer visits an English-language page and is then identified as bi-lignual Your ad is shown. Customer clicks. Your target audience then clicks thru to your site 1 2 3 Ad Space Ad Space

Country-of-origin Targeting

Media Planning Check List Are you asking for U.S.-only impressions? What research and tools will you use to plan and track your online media campaigns? What sites are your target audience visiting? Which targeting best suites your needs? What can you learn from each type? Can you encourage foreign visitors to buy online and pick up in-store like Best Buy?

Are you asking for U.S.-only impressions?

What research and tools will you use to plan and track your online media campaigns?

What sites are your target audience visiting?

Which targeting best suites your needs?

What can you learn from each type?

Can you encourage foreign visitors to buy online and pick up in-store like Best Buy?

Thank You! Joe Kutchera Director of Spanish-Language Markets ADSDAQ by ContextWeb 212.932.8718 [email_address]