1.
Hispanic Consumer Impact
Jerry Rocha
VP, Digital Media
Jerry.rocha@nielsen.com
@jerryrocha
Copyright © 2011 The Nielsen Company. Confidential and proprietary.

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

3.
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 age
U.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

4.
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 sold
Source: NRG Moviegoing Benchmark 2010 Study
4
Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

5.
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

6.
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

7.
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

8.
The new face of America
50
MILLION
Or 1 in 6 are Hispanics…
8
Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

9.
Latino Life
WATCH
33 hours of television per week
SEND/REC
941SMS per month
(more than any other group)
MAKE 13
calls per day STREAM VIDEO
SPEND
Total Population: 9 6:15 $51
hours per month per grocery trip
TALK 812
voice minutes per month Total Population: 3:50
9
Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

10.
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-Hispanic
Hispanics spend Use less More frequently Are more
$364 more per coupons shop in brand loyal;
household than or buy on superstores, mass value quality
Whites 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

11.
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
Men's Toiletries 130
Shortening Oil 163
Cereal 108
Hair Care 134
Shelf Stable Juices Drinks 138
Laundry Supplies 120
Source: Nielsen Homescan, 52 Weeks Ending 12/25/10
11
Copyright © 2011 The Nielsen Company. Confidential and proprietary. NAA 11th Annual Wall Street Summit

12.
Which categories will benefit from the shifts
in demography?
Projections to 2020
Percent of Volume from High Growth Demo Groups
60%
Liquid Hand
Hand & Body Soap
55%
Lotions
Liquor Baby Formula
50% Cereal Flour Disinfectant
Shortening, All Purpose Sprays
45% Oil Wipes
Snacks Eggs
Pasta
40%
Shaving
35%
Needs
30%
Beverages
Mexican Frozen
25% 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

13.
Hispanics have leapfrogged to mobile
Percent of HH/persons with access to technology
Mobile web 9
not PC 3
Smartphone 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

14.
Hispanics are heavy video users in
other screens
Total Monthly video usage by Ethnicity (HH:MM)
4:20
Mobile video
3:37
+20%
6:15
Online video
3:50 +60%
Hispanics Non-Hispanics
21:58
DVR 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

15.
Hispanics spend more time in video
and social networks
Monthly 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

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