Hispanic Market Overview 2012

HISPANIC MARKET OVERVIEW, presented by López Negrete 2012 Edition

TABLE OF CONTENTS
INTRODUCTION 3

2011: WHERE THE DOLLARS WENT
BIG INVESTMENTS FROM CORE ADVERTISERS 6
RADIO: DOLLARS FUELED BY EMERGING MARKET GROWTH 8

THE U.S. HISPANIC MARKET: POPULATION SNAPSHOT 12
MULTICULTURAL AMERICA, BY COUNTY—2016 14
HISPANIC POPULATION GROWTH —1980 15
HISPANIC POPULATION GROWTH — 2016 16
HISPANIC VS. NON-HISPANIC WHITE POPULATION GROWTH – 1990-2016 17

*
U.S.
Hispanic
population
vs.
Total
population
–
Top
50
markets
–
2011

24

THE U.S. HISPANIC MARKET: AGENCY
HISPANIC VS. ‘SPANISH’: THE BATTLE EVOLVES 25
THE HISPANIC CONSUMER: CONSTANTLY CROSSING CULTURES 29

THE U.S. HISPANIC MARKET: AGENCY/ONLINE/PR
SOCIAL MEDIA: THE HISPANIC HOT SPOT 31
BRAND LEADERSHIP, ACROSS ALL PLATFORMS 33

THE U.S. HISPANIC MARKET: ONLINE
THE PORTAL: ADAPTING FOR ITS AUDIENCE 35

THE U.S. HISPANIC MARKET: MEDIA
CULTURAL FLUENCY: WHAT MATTERS MOST 38
CROSS-PLATFORM VALUES 41
TR3S: ‘A BRIDGE BETWEEN TWO WORLDS’ 42

THE U.S. HISPANIC MARKET: SPORTS
A KEY CONNECTOR TO LATINO CONSUMERS 45

THE U.S. HISPANIC MARKET: SYNDICATED RADIO PROGRAMMING
MUSIC, TALK, AND LOTS OF GOALS 49

THE U.S. HISPANIC MARKET: TECHNOLOGY
CONTEXTUAL POWER 52

HMO MARKET PROFILE: CHICAGO 54

THE U.S. HISPANIC MARKET: NEWSPAPERS
DIGITAL DIVERSIFICATION 57

THE U.S. HISPANIC MARKET: MAGAZINES
HISPANIC GLOSSY OVERVIEW: WHO’S SPENDING WHERE 59

ABOUT THE AUTHOR 61

ADVERTISER INDEX 62

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INTRODUCTION
What is the Hispanic market all about?

According to Tony Ruiz at The Vidal Partnership, that is one of the most-feared questions
from creatives. In a conversation at his New York office in late November 2011, Ruiz and
I spoke about how to shape the 2012 edition of Hispanic Market Overview. Ruiz and I
had previously exchanged some thoughts about how “disgusting” the level of
advertising dollars allocated to Spanish-language media was. I challenged his remark,
pointing to the rise in English-preferred Hispanics and bilinguals and, as a result, lower
use of Spanish-language media.

Through interviews conducted over the first quarter of 2012 and through research
studies examined over late nights shared with Chinese food and Magic Hat beer, it
became clear that Ruiz had a very valid point. Indeed, the share of advertising dollars
going to Spanish-language media is below where it should be. But it is the share of
dollars to “Hispanic media” that needs to increase.

“Hispanic media” is comprised of not only Spanish-language media but also English-
language media featuring culturally relevant content for the bilingual, bicultural Latino
– the largest growth segment of the U.S. Hispanic market. There is also “Spanglish”
media, with a mix of English and Spanish targeting a young, hip and influential
audience. Interestingly, that’s nothing new – WQBA-FM “Super Q” did that in Miami
nearly 30 years ago, and the WPBT-Channel 2 sitcom “Qué Pasa, U.S.A.” continues to
live on in reruns nearly 40 years after its ground-breaking debut. Today, “Qué Pasa,
U.S.A.” is still ahead of its time. That’s pathetic.

Multicultural America is rapidly becoming Mainstream U.S.A. That’s why this report
delves deep into the key issues facing marketers, agencies, media buyers and media
planners already familiar with the players. New to Hispanic marketing and seek the
basics, or a “Hispanic 101?” We invite you to download the 2010 and 2011 editions of
Hispanic Market Overview by visiting AdamRJacobson.com.

According to the Selig Center for Economic Growth 2010 report “The Multicultural
Economy,” Hispanic buying power is expected to grow by 50% between 2010 and 2015,
to $1.5 trillion. A Nielsen study of U.S. population by ancestry found that Mexicans
account for 33 million Americans, second only to Germans and ahead of the Irish, the
English and Italians.

If you’re not marketing to Hispanics, why bother selling your product, good or service?

Adam R Jacobson

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2011: WHERE THE DOLLARS WENT
One year ago, uncertainty about when advertising activity would get its Census 2010-
fueled jump start was still a topic of discussion among many Hispanic marketing and
advertising professionals. By September, optimism rose. As 2011 came to a close, a
robust fourth-quarter gave Hispanic media the adrenaline boost it had craved for
months: Hispanic media is not only healthy, but it far outperformed the total market in
2011.

According to Kantar Media, Spanish-language television enjoyed an 8.3% jump in
measured ad spending between 2010 and 2011. This statistic includes the four
broadcast networks rated by Nielsen – Univision, Telemundo, TeleFutura and Azteca
América – in addition to four undisclosed Spanish-language cable television networks
and 71 local Spanish-language television stations. Higher sell-out levels at over-the-air
networks served as the chief catalyst for the growth. With the anticipated Q3 launch of
MundoFox in 20 Designated Market Areas (DMAs), along with the addition of new
Univision cable networks, ad spending for Spanish-language television is set to see its
biggest surge in years.

With Hispanic TV on fire, marketers and advertisers should also set their sights on Spanish-
language magazines. Kantar Media, which uses data from the Publishers Information
Bureau, measured nearly 25% year-over-year increases in measured ad spending for
Hispanic glossies between 2010 and 2011. Spanish-language newspapers also saw
growth – bucking the trend of total-market dailies and weeklies, which continue to see
reader and advertiser erosion. Kantar Media data show Hispanic newspapers enjoying
a nearly 2% improvement in measured ad spending from 2010 to 2011. By comparison,
total market newspapers were off 3.7%, year to year.

The spectacular performance of Hispanic media in 2011 was fueled in large part by
steep rises fourth quarter activity, compared to 2010. Spanish-language TV was up
19.1% in Q4 ’11, compared to the same period a year earlier. Spanish-language
magazines grew 25.1% from Q4 ’10 to Q4 ’11, while Spanish-language newspapers
enjoyed a stunning 10.4% rise in Q4 ’11.

With a flurry of activity highlighted by the launch of a new Spanish-language broadcast
television network, in addition to new cable television networks from the No. 1 Hispanic
entertainment company, increased attention to the Latino media consumer will
heighten awareness and provide greater opportunities to capture more ad dollars
while welcoming the advertiser that has remained reluctant to engage with consumers
who enjoy Spanish-language content -- no matter their preferred language.

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The improvement in Hispanic advertising dollars came as overall ad spending during Q4
slipped by 1%, compared to the same period in 2010. This marks the first quarterly
decline since the end of 2009 and points to a slowdown in advertising growth rates
seen in every quarter since Q3 2010.

Why? Digital and mobile budget shifts could be the culprit. In prepared comments,
Kantar Media Intelligence North America SVP/Research Jon Swallen said, “Whether this
is an isolated occurrence or an early sign of digital dollars moving more quickly toward
emerging and unmeasured digital platforms bears watching as 2012 unfolds.”

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BIG INVESTMENTS FROM CORE ADVERTISERS

Kantar Media data show the top 10 advertisers in Hispanic media investing $1.4 billion
during 2011 – a jump of 29.2%. Yet this group accounts for 24.7% of all Hispanic media
expenditures, the largest Top 10 share concentration of any medium.

Indeed, the Top 10 players are largely familiar to Hispanic market observers. Discounting
“Broadcasting Media Partners,” a pseudonym for activity across Univision’s multimedia
properties, the top advertiser in Hispanic media during 2011 was Procter & Gamble, with
$209.6 million invested.

P&G increased its Hispanic marketing budget by 9.6% from 2010 – despite an overall dip
in its advertising dollars, year-to-year. According to Kantar Media, P&G remained the
No. 1 overall advertiser by a large margin, with $2.95 billion invested in all U.S. media in
2011. That actually reflects a 5.4% drop in ad dollars from 2010 for the consumer
packaged goods (CPG) giant. P&G’s activity in 2012 is set to reach new heights, thanks
to the recent appointment of Ernesto Adduci as Vice President/Account Director for
Lápiz, leading the agency’s efforts with such brands as Gain, Bounty, Charmin, Always,
Dawn, Prilosec OTC, Herbal Essences, Puffs and Clear Blue.

Meanwhile, Hispanic media can brag about a whopping 131% year-over-year
investment increase for Kraft Foods seen in 2011. The jump came as the company in
March 2011 selected Houston-based López Negrete Communications to handle brand
leadership, strategic planning, business analytics and creative development for its
Maxwell House coffee brand in the U.S. Hispanic market.

Agency CEO Alex López Negrete cited his firm’s experience with CPG companies in
successfully building Hispanic consumer activity in nabbing the account. Maxwell
House joins Kraft mayonnaise, Kraft Singles cheese, and Ritz crackers on the LNC roster.

,

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General Mills and Toyota Motor Corp. also played their part in making 2011 a strong
year for Hispanic media. Neither brand made the overall top 10, according to Kantar
Media.

The same can be said for Dish Network, which grew its Hispanic advertising budget
by71.2% from 2010 to 2011 and is now the No. 2 advertiser, ahead of McDonald’s. The
quick service restaurant (QSR) chain slimmed its overall Hispanic marketing dollars by
2.6%, to $114.4 million, but remains an integral and vibrant player. Digital, mobile,
experiential and “grass roots” marketing dollars should also be considered when looking
at the golden arches.

Wireless services companies tempered their overall Hispanic market ad expenditures,
with Verizon and AT&T scaling back their overall dollars to Spanish-language media.
General Motors is now No. 10 among U.S. Hispanic market advertisers.

Companies in the overall top 10 that are absent from the Hispanic top 10 include Pfizer,
which invested more than $1.2 billion in total market media in both 2010 and 2011.
L’Oreal SA grew its overall budget by 18.1% in 2011, to $1.34 billion, and ranks sixth; the
company is highly active in the U.S. Hispanic market, in particular with print and online
vehicles targeting Latinas.

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RADIO: DOLLARS FUELED BY EMERGING MARKET GROWTH

It is well established that the bulk of the U.S. Hispanic market’s advertising dollars are
concentrated in Spanish-language television – the mass media that assumingly delivers
the most eyeballs for the buck.

Yet the radio industry has traditionally done the best job of tracking advertising dollars
and reporting on annual results. BIA/Kelsey in April 2012 released its top-line total radio
revenue data for 2011, and an interesting dichotomy has developed. As reported by

Radio-Info.com columnist Tom Taylor, Portland, Maine enjoyed 22.8% revenue growth
between 2010 and 2011, finishing out the year with $25.4 million in total radio revenue.
In Worcester, Mass., just to the west of Boston, total radio revenue increased 15.8%, to
$12.9 million, from 2010 to 2011. Mid-size markets also enjoyed healthy albeit more
conservative growth – Providence, RI, home to sizable Portuguese and Latino
communities, saw total radio revenue improve 9.9%, to $45.3 million. According to
BIA/Kelsey, these increases are endemic in times when national advertising dollars
shrink. That’s exactly what happened in the last few months of 2011, when the nation’s
top markets saw national activity slide.

Overall over-the-air revenues were statistically flat in 2011, inching ahead 0.9% from
2010 to finish at $14.1 billion, BIA/Kelsey reports. Online and digital revenue brings an
additional $439 million to the total, with strong growth ahead. BIA/Kelsey predicts
radio’s online revenues to easily surpass $500 million in 2012 and surge to $767 million by
2016.

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With national dollars down and local activity up for all radio stations, where does that
leave Hispanic radio? The forecast is cloudy, with occasional bursts of sunshine.
Emerging markets represent the strongest growth for Hispanic radio broadcasters, with
companies such as Adelante Media Group, Entravision, Curtis Media Group, Davidson
Media Group, Connoisseur Media and even the largest operator in the U.S., Clear
Channel, active in some of the most lucrative markets, long term.

Are client-side marketers, advertisers and media buyers interested? In an October 2012
visit to a large media buying and planning agency by The Adam R Jacobson Editorial
Services and Research Consultancy, discussion about the Sacramento-Stockton-
Modesto DMA was tempered by questions about the Los Angeles market. Are markets
such as Milwaukee and Philadelphia ignored because they are so close to mega-sized
markets such as Chicago and New York, respectively? Are budgets so tight among
marketers that investing in Hispanic media in a
sub-Top 15 Hispanic DMA simply costs too much?
“We need to unite, as an industry, and go
According to top Hispanic radio broadcasting
after Corporate America. We can worry about
executives, the troubles Spanish-language and
competition later, but we need to hit
Hispanic-themed audio content companies face
Corporate America over the head … I’m
are perhaps more fundamental. Speaking at the
going to do it whether I am joined or not.”
Radio Ink Hispanic Radio Conference, held in
— Jeffrey Liberman, Entravision Radio
March 2012 in San Diego, Adelante Media Group
CEO Jay Meyers – a veteran of total-market radio
– said he is not one to go into an agency to talk about getting Hispanic advertising
dollars. “I’m here to talk about how 100 percent of the dollars are going to reach 87
percent of the market … and that’s stupid! If we got 33 cents on the dollar for the
percentage of the audience that is Hispanic, we wouldn’t be here [in San Diego]
today. We’d be in Maui, paying our own way.”

Entravision Radio Division President Jeffrey Liberman declared that it is tougher today
for Hispanic radio sales executives than it was in 1992 to lure advertisers. Therefore, he
called on Hispanic radio to step up in unison and start fighting for its rightful share of the
ad dollars. “We have to do a better job in sales and provide our advertisers reasons to
buy us. Today, we have a more competitive marketplace. Research has gotten better.
We need to unite, as an industry, and go after Corporate America. We can worry
about competition later, but we need to hit Corporate America over the head … I’m
going to do it whether I am joined or not.”

In 2007 total radio revenues came in at $17.9 billion. Even with digital and online growth,
is an $18 billion target a dream of yesteryear? As the U.S. economy starts to recover
from its worst economic malaise since the 1930s, the App may be the best thing that
could have ever happened to the radio industry.
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Already, “radio” is a term that should be replaced by “audio content,” given the
proliferation of Smartphone-friendly Apps including Clear Channel’s iHeartRadio, CBS
Radio’s Radio.com and TuneIn, which allows users to stream thousands of AM and FM
stations from around the world within seconds of conducting a search by song title, a
particular recording artist, or the radio station’s name.

According to the 2012 edition of The Infinite Dial,
produced in partnership by radio industry ratings
firm Arbitron and Edison Research, the average
¡QUE BUENA DINERO!
daily time Americans spend with AM and/or FM
Univision’s regional
radio is 2 hours, 7 minutes. For heavy Internet users,
Mexican WOJO-FM was
it is 2 hours, 14 minutes.
Chicago’s sixth-biggest
Yet for all of the worry about rapidly changing station in terms of ad
consumption habits of AM and FM broadcasts, revenue in 2011, billing
Hispanic broadcast companies and their $21.3 million, according
advertisers should be pleased with the current to Miller Kaplan Arase &
portrait of how people tune in: Radio and Co. data reported by
online/digital activities complement each other, TimeOut Chicago radio
with 87% of weekly online radio listeners columnist Robert Feder.
consuming AM and/or FM radio in the last seven CBS Radio’s WBBM-FM
days. Additionally, as reported by Radio-Info.com’s (B96), a Top 40 station
Tom Taylor, 68% of individuals who listen to AM with a significant
and/or FM broadcasts while at-work do so with “a Hispanic audience, billed
regular radio” – and not via streamed audio. $23.5 million and ranks
fourth.
Even so, Arbitron/Edison found 18% of respondents
listening to AM and FM radio on a computer, and
13% listening to the radio on a mobile device –
numbers that will most certainly increase over time.

As Hispanics largely overindex on smartphone use, with Mintel noting in a 2011 report
that 1 in 5 Latinos use such devices as their primary internet gateway, Hispanic
broadcasters may wish to further embrace the App to grow its listener base while
concurrently luring new media dollars.

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THE U.S. HISPANIC MARKET: POPULATION SNAPSHOT
Much has been said and blogged about the “New American Mainstream,” a term
coined by Miami-based multicultural market intelligence firm Geoscape. Indeed, the
“total market” in the U.S. is more inclusive of multicultural groups than ever before and
can no longer be considered a “minority.”

According to Geoscape, the non-Hispanic White population will be roughly equal in
size to the combined total population of Hispanics, Blacks and Asians in 38 years. In just
four years – in 2016 -- Hispanics will comprise 58.4 million of the 326.1 million people who
reside in the U.S. This compares with 40 million Blacks (inclusive of African-American,
Caribbean and African peoples) and 16.5 Asians (inclusive of Pacific Islanders); 212.3
million Americans will fall into the “other” category, suggesting that a surge in mixed-
race populaces is continuing at rapid-fire pace.

Source: Geoscape, American MarketScape Datastream, 2011 series

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In 2000 Latinos surpassed Blacks as the largest multicultural group. The Hispanic
population continues to surge – thanks mainly to births, rather than immigration. In 2011
Hispanics comprised 16.4% of the total U.S. population. In less than four years, nearly
18% of the population will be Hispanic – accounting for 58.4 million.

In the last 10 years alone, the U.S. has seen the following changes:

• Nearly 16 million Hispanics have been added to the population
• 45% growth in the Hispanic population was seen between 2001-2011
• Hispanic population growth from 2001 to 2011 accounted for 52% of total U.S.
population growth

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Multicultural America, By County -
2016

 Non-Hispanic Whites are the minority in an increasing number of counties – 326 in 2011,
according to Geoscape.

The top 15 counties in the U.S., by multicultural population, as of 2011 are as follows:

• Los Angeles, CA
• Cook, IL
• Harris, TX
• Orange, CA
• Kings, NY
• Miami-Dade, FL
• Dallas, TX
• Queens, NY
• Riverside, CA
• San Bernardino, CA
• Clark, NV
• Santa Clara, CA
• Broward, FL
• Bexar, TX
• Philadelphia, PA

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HISPANIC POPULATION GROWTH – 1980
In1980, gateway states bordering Mexico experienced the most population growth.
Additionally, Miami-Dade County was transformed by a wave of Cuban immigration
resulting from the Mariel boatlift -- a mass emigration of Cubans who arrived in Florida
between April 15 and October 31, 1980.

Courtesy of Geoscape

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HISPANIC POPULATION GROWTH – 2016
Today, gateway cities for Latinos are no longer along the Mexican border or within 120
nautical miles of Cuba. Atlanta and metropolitan Chicago are important entry points
for Hispanic immigrants, as are agricultural areas in eastern North Carolina, western
Iowa and across Nebraska and Kansas. Western Arkansas is now an important Latino
center, while metropolitan Washington, DC has experienced sizable growth from not
only Mexican immigration but also Caribbean Hispanics of Cuban, Puerto Rican and
Dominican heritage.

Courtesy of Geoscape

This differs dramatically from African-American growth trends, as the vast majority of
Blacks reside in the South. The highest percentage of Asians reside in California, with
other significant pockets in greater Seattle, Chicago, New York, Boston, Dallas, Houston
(accounting for Hmong), and Washington, DC.
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HISPANIC VS. NON-HISPANIC WHITE POPULATION GROWTH – 1990-2016

According to Geoscape, Charlotte is the leader in percentage gain for Hispanic
population growth between 1990 and 2016. Atlanta and Raleigh are second and third,
respectively, followed by the Orlando-Daytona Beach-Melbourne and Minneapolis-St.
Paul DMAs. Central Florida has seen rapid growth in Puerto Rican and Mexican
emigration, while the Twin Cities has seen the arrival of Mexicans and Central
Americans. Marketers should strongly consider
investing in Hispanic media in the emerging markets
shown above to maximize their opportunities for
Latino consumer growth.

Acculturation is the process whereby immigrants
acquire a new culture through language, customs,
lifestyle, media usage and other practices while
retaining elements of their home culture as well. For
Hispanics, Geoscape® calls this characteristic
Hispanicity™. At left are the CultureCodes as
determined by Geoscape.

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Recent immigrants have increased the proportion of non-acculturated
Latinoamericanas, while second and third-generation Hispanics have increased
the proportion of Americanizados and Nueva Latinas. Nevertheless, the Hispanic
population will increase in all segments.

Source: Geoscape, American MarketScape DataStream, 2011 series.

The Miami-Fort Lauderdale DMA is perhaps the only large metropolitan area in which
nearly half of the population (48%) is either Spanish-preferred or Spanish-dominant. In
Houston and Los Angeles, biculturals and those who prefer to use English more than
Spanish – or exclusively – are the majority of the Hispanic populace.

About 60 percent of
Hispanics are
Bilingual to some
degree and about 40
percent are
dependent on either
English or Spanish.

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As seen in
Geoscape’s
American
Marketscape
DataStream,
2011 Series,
Mexicans
comprise
nearly 69% of
the total U.S.
Hispanic
population.

Of course, marketers active in the U.S. Hispanic market realize that the geographic
distribution of certain ethnic groups makes a “national” Latino advertising effort
perhaps trickier than one may assume. Florida is home to many Cubans and Puerto
Ricans; New York is home to many Dominicans and Puerto Ricans. Yet each state has
seen a noticeable increase in its Mexican population, with Puebla natives found in
Queens and agricultural regions of the Mid-Hudson Valley. Furthermore, pockets of
Central Americans can be found across Miami-Dade County, FL while Peekskill, NY, in
Westchester County, is a hub for Ecuadorian immigrants.

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2011: EARNINGS AND EXPENDITURES

The median income of all
U.S. Hispanics is greater than
that of Blacks but less than
Whites and Asians.
However, the size of the
Hispanic population makes
this consumer group
enticing and attractive to
marketers.

Hispanic spending is significant across a variety of major categories, thanks to their
relative youth and larger-than-average household size. Total aggregate Hispanic
consumer spending for 2011 is over $593 Billion.

Top categories include insurance companies, automotive and food/beverage.
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Hispanics consume more than
the average American
household in many categories.

Furthermore, the continued rapid growth in the Hispanic population makes this
consumer group simply important to underserve or altogether ignore. This suggest
marketers invest consistently—and perhaps at a much deeper level—in Hispanic media
than ever before.

The median age of Hispanics is
27.3 years, compared to 41.2
years for non-Hispanic whites.
Additionally, life expectancy for
U.S. Latinos is 84 years old,
compared to 81 for non-
Hispanic whites. Thus, in many if
not most consumption
categories the multicultural
consumer is actually worth
more, not less, than the non-
Hispanic white household.

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THE OPPORTUNITY

Despite the size of the U.S. Hispanic market, advertising dollars devoted to Spanish-
language media in 2009 represented less than 5% of the total advertising pie.

Tony Ruiz, director of communications planning for New York-based Hispanic-focused
agency The Vidal Partnership, has been particularly vocal about the trickle of ad dollars
going to Spanish-language media.

"I think it's disgusting that only 4.5% of media spending is going toward Hispanic
consumers," Ruiz said during a panel discussion at the B&C/Multichannel News Hispanic
TV Summit, held in September 2011. "I think it's disgusting that we had to make a big
deal out of the 2010 Census. Most organizations in the U.S. don't know how to fully value
the Hispanic contribution to their business; it's largely perceived as a secondary
segment of the population.”

Chris Montenegro McGrath, vice president of sustainability and Latino marketing at
Kraft Foods, understands the importance of reaching Latinos. The company’s Hispanic
ad budget grew three-fold in 2011; she says the budget is 4.5% above the industry
average.

Some industry leaders have challenged Ruiz, saying that Hispanic marketers and ad
agencies must continue to pound away at the significance of the Latino consumer. If
not, they’ll continue to be overlooked. Thus, opportunity abounds for the company that
learns and understands why Hispanic ad expenditure increases are so important for the
bottom line: ROI growth.

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U.S.
Hispanic
population
vs.
Total
population
–
Top
50
DMAs
–
2011,
presented
by
Geoscape

Hispanic Population
Name Total Population (2011) (2011)

Los Angeles 17,729,990 8,039,483
New York 20,977,155 4,707,737
Houston 6,417,076 2,272,478
Miami-Ft. Lauderdale 4,356,130 2,153,792
Chicago 9,708,757 2,010,692
Dallas-Ft. Worth 7,208,815 1,937,058
San Francisco-Oakland-San Jose 7,152,857 1,697,582
Phoenix (Prescott) 5,097,438 1,415,719
San Antonio 2,516,842 1,399,364
Harlingen-Weslaco-Brownsville-McAllen 1,298,618 1,175,927
Sacramento-Stockton-Modesto 4,082,972 1,100,323
Fresno-Visalia 1,979,196 1,072,798
San Diego 3,140,677 1,023,578
Denver 4,126,703 864,039
Washington, DC (Hagerstown) 6,502,200 846,445
El Paso (Las Cruces) 1,036,572 820,599
Philadelphia 8,030,208 809,600
Albuquerque-Santa Fe 1,917,235 808,668
Orlando-Daytona Beach-Melbourne 3,728,115 731,540
Tampa-St. Petersburg (Sarasota) 4,385,228 705,639
Atlanta 6,454,764 693,661
Las Vegas 2,038,402 603,176
Austin 1,930,884 596,009
Boston (Manchester) 6,380,432 532,754
Seattle-Tacoma 4,880,463 451,606
Tucson (Sierra Vista) 1,172,515 431,189
Bakersfield 773,844 409,734
Salt Lake City 3,021,907 399,546
Portland, OR 3,192,730 393,815
West Palm Beach-Ft. Pierce 1,935,417 358,220
Corpus Christi 579,221 355,266
Monterey-Salinas 742,647 354,313
Hartford & New Haven 2,667,914 333,040
Raleigh-Durham (Fayetteville) 2,998,162 298,693
Yuma-El Centro 379,893 264,756
Laredo 271,354 259,803
Ft. Myers-Naples 1,193,162 251,367
Charlotte 3,029,279 251,117
Santa Barbara-Santa Maria-San Luis Obispo 700,321 242,988
Palm Springs 432,094 227,643
Yakima-Pasco-Richland-Kennewick 689,247 224,058
Waco-Temple-Bryan 1,016,687 223,455
Minneapolis-St. Paul 4,551,263 222,446
Milwaukee 2,319,488 220,749
Odessa-Midland 424,228 204,981
Colorado Springs-Pueblo 928,778 191,651
Oklahoma City 1,838,391 189,775
Detroit 4,821,460 189,649
Kansas City 2,453,482 187,217
Amarillo 545,386 181,324

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AGENCY

HISPANIC VS. ‘SPANISH’: THE BATTLE EVOLVES
How marketers approach the Hispanic market is an ever-changing endeavor. Twenty
years ago, developing Spanish-language creative and investing in a media buy was
reason for celebration. Today, multi-pronged, 360-level brand connectivity initiatives
incorporate English- and Spanish-language creative, mobile and digital initiatives, and
product integration, among other things.

Hispanic Market Overview talked to several advertising industry leaders about how
they’re adapting to the evolving marketplace. We open the discussion by asking Isaac
Mizrahi, SVP and Managing Director of Miami-based Alma, how advertisers should
approach the U.S. Hispanic market today compared to 2005.

HMO: Spanish-language media remains very important for reaching the all Hispanic
consumers -- despite all the chatter about English-language preferences rising among
large groups of Latinos. Is the growing population of English-preferred and bilingual
Latinos a major topic of discussion with your clients?

Isaac Mizrahi: When discussing marketing opportunities with our clients, we suggest an
approach that recognizes that “culture is the new language” -- meaning that, first and
foremost, brands should understand what makes their messages more relevant to the
Hispanic segment based on culture, behaviors and idiosyncrasies.

However, it is important to recognize the important role the Spanish language plays and
will still play for years to come. Many studies, like the recently released The State of the
Hispanic Consumer: The Hispanic Market Imperative from Nielsen have shown that
Spanish not only plays a role as a communication asset to consumers, but most
importantly as a cultural anchor, in particular to second and third-generation Hispanics.

HMO: Bilingual. Bicultural. Youth and Young Adult. These are buzzwords among many.
So where is the CMO and client going with respect to its Latino campaigns and focus?

IM: In an era where the average CMO tenure is counted in months, not on years, it is
imperative that any marketing program be focused on hard data -- not buzzwords. We
suggest as a starting point an assessment of a company's source of sales growth. While
Hispanics represent 16% of the U.S. population, in some categories they represent a
significant share of the sales and, more importantly, an even higher share of the sales
growth. That analysis will guide the CMO and his team in determining the right sub-
segments to target within the diverse Hispanic market –including language preference,
biculturalism and other categories of cultural affinity. As it is clear that the overall
economic recovery will happen at a very slow pace, the companies that are leading

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the pack in terms of sales growth are also the ones who are investing in the Hispanic
market in a consistent and holistic way.

HMO: You have a great perspective on English vs. Spanish with respect to media,
lifestyle and culture. Many Hispanics between 21 and 43 years old are
retroacculturating. In Miami WLTV-Channel 23's news is top-ranked, challenging Fox
affiliate WSVN-Channel 7. Both attract Hispanics -- but different types of Hispanics. Is this
emblematic of what's to come nationally?

IM: I use an analogy that explains how the discussion around language sometimes
tends to be a bit superficial. As a fútbol fan, I can go to China by watching a whole
local league game on TV despite the fact that I
don't speak the language. At the same time, a
“First and foremost, brands should understand National Hockey League game in Spanish won't
what makes their messages more relevant to the make me more interested in the sport. The reality
Hispanic segment based on culture, behaviors and is that several second-generation Young Latinos
idiosyncrasies.” – Isaac Mizrahi, Alma (we call them “Fusionistas” at Alma) are looking
for specific content in Spanish. That happens not
only because they value Spanish as a cultural
anchor, but also because the content they are looking for reflects who they are -- 100%
American and 100% Latino.

HMO: Digital and mobile initiatives are essential for all media growth in the 2010s and
beyond as platform-specific communication will soon be phased out, thanks to rapid
changes in how consumers digest entertainment. Please explain how agencies are
striving to meet client demand in reaching Latinos over smartphones, tablets, and the
next great mobile technology.

IM: A couple of years ago we made the strategic decision to incorporate digital into
everything we do. We eliminated the digital department, and incorporated digital
experts inside all agency functions, like the “trios,” where planning, creative and digital
work in an integrated way. Moreover, we guide our creation philosophy under the
belief that consumers are not only the end of our client's communication, but rather
individual "broadcast towers" that can further enhance our message through their own
networks. Once you work based on these pillars you start leveraging the immense
digital possibilities as a core part of our ideas and not as extensions of our above the
line creative.

HMO: Even with new television networks and great ratings for Hispanic radio, Spanish-
language media still struggles to get its share of the advertising pie while digital/mobile
dollars are growing rapidly, percentage-wise. What are the challenges with increasing
advertiser activity and, ultimately, dollars -- even as Q4 2011 delivered strong results for
Hispanic media.

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IM: With 18 years of client-side experience and three years at an agency, I can highlight
two major challenges. First, in most companies the process to allocate resources still
resembles a rear view mirror, looking for the past as a source of guidance on
investment, rather than looking at sources of volume growth. Based on my observation,
several companies still have this approach of “incrementalism” when it comes to

Hispanic market investment. They’ll say, "If I have the extra dollar I will allocate to
Hispanic marketing". How about starting from scratch and allocating resources based
on where your volume is coming from?

Second, Spanish-language advertising doesn't mean Hispanic Marketing. Today the
marketplace requires more sophisticated knowledge about the Hispanic segment, and
when companies reduce their Hispanic marketing programs into a Spanish-language
media program or even an advertising program, their success will be limited. This may
create a barrier for future investments.

Isaac Mizrahi joined Alma in 2009. His previous experience includes roles as Director,
Multicultural Marketing for Sprint Nextel and Marketing Communications Innovation
Manager for The Coca-Cola Company North America.

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AGENCY

THE HISPANIC CONSUMER: CONSTANTLY HMO
ENTREVISTA

CROSSING CULTURES Bringing the client key information about
the Latino consumer is paramount to
Two worlds, one individual. keeping them interested in Hispanic
marketing and advertising, says Carlos
Today’s Hispanic consumer is highly likely to not only
Martinez, President of Conill, a
shift between English and Spanish at a moment’s Hispanic-focused agency with offices in
notice, but also between “Hispanic” and “total Miami’s Brickell District and the South
market” in an instant. Bay region of greater Los Angeles. Job
One for Martinez and his team is to discuss
Jorge Plasencia, CEO of Miami-based República, says
the “total Hispanic” marketplace.
his total market agency was launched with this
concept instilled as a basic tenet. “There are definitely levels of
acculturation, and when you look
“We were one of the first agencies to use the term at language, language is a
‘cross-cultural,’ and positioning ourselves as a cross- tactic,” he believes. “After the
cultural agency was really the way to go,” he says of 2010 Census was released, there
República’s 2006 launch. “Here at the agency we are was talk that second- and third-
really living in two worlds – with our media, our music, generation Hispanics may be more
and our language. That’s really where we are going comfortable being talked to in
[as Hispanics], with English than Spanish. Our clients,
and everyone else, are looking at
people having
that. If you want to win with any
these two
product and service, you really
“In a market like Los seamless identities. have to look at that Hispanic
Angeles, to reach that That is why segment – it is super-important.”
18-34 vibrant young reaching them in
Latina, you’ve got to a culturally Conill has eyed the bilingual,
advertise on KLVE but relevant way, bicultural Latino consumer for
you’ve also got to more than six years, stepping out in
regardless of
2006 with a Toyota commercial in
advertise on KIIS-FM.” whether it is in
both Spanish and English that aired
– Jorge Plasencia, CEO, English or Spanish,
during that year’s Super Bowl
República is how we telecast. “That first ad, for the
operate.” hybrid Toyota Camry, spoke to one
key insight we found,” Martinez
That being said, Plasencia believes Spanish-language
says. “We found that the vehicle
media should represent “a big chunk of the buy.” He was similar to Hispanics, who go
says, “You hear a lot about how you can reach the back and forth between two
Hispanic consumer today through a general-market languages. Hence, the
buy, but we feel that placement in both English and commercial showed a father and
Spanish media is important.” son, speaking two languages,
shown with a Camry that has two
power sources.”
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In fact, buying certain English-language media – in particular CHR/Pop radio stations –
is very much a Hispanic buy in markets such as Los Angeles and Miami. “KIIS-FM and
[WHYI] Y-100? Those stations are Hispanic, because they attract listeners who are Latino,
and who live in two worlds. In a market like Los Angeles, to reach that 18-34 vibrant
young Latina you’ve got to advertise on [Univision Radio’s Spanish Adult Contemporary
KLVE] K-Love but you’ve also got to advertise on KIIS-FM. You have to look at your
dollars and spend them in a way where you’re maximizing them and reaching people
in both languages. If you are only on one of those stations you are missing the boat,
because that person is continuously going back and forth between these stations.

Al Quintana, EVP of Roar Media and publisher of The Digital Raindance, is the father of
three teenagers who prefer to use English but love many things about their Hispanic
heritage, and aren’t afraid to show it. “It’s as simple as dancing to salsa music when
they go to a party,” he told attendees at a March 2012 MIT Enterprise Forum panel
discussion held at the University of Miami. “My teens love to play dominos when with
friends or family. It is about our culture. At some point, maybe some of those cultural
traits will dissipate. But I’m not so sure about that.”

Maribel Ferrer, a Hispanic public relations and communications expert at Fleishman
Hilliard, believes it is up to the madre to keep the cultural connection alive with
Hispanic kids and teens. “They are the keepers of the culture,” she says. “They are the
ones to keep the connection going.”

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AGENCY/ONLINE/PR

SOCIAL MEDIA: THE HISPANIC HOT SPOT
“The Latino consumer is hyperconnected, and the idea of the ‘cafecito break’
became virtual by having a smartphone in our hands.”

That’s the assessment of Xavier Mantilla, director of sales for Cisneros Company-owned
mobile advertising network RedMás. Speaking at a MIT Enterprise Forum panel
discussion held in March 2012 at the University of Miami, Mantilla noted that 32% of all
web-based content is consumed from digital-based technology. As Hispanics overindex
in their adoption of smartphone and tablet devices, they possess tremendous influence
over where digital media is heading.

Culture plays a large role in this fast-adoption of digital platforms, including socially
enabled Apps, says Fleishman Hilliard’s Maribel Ferrer. For marketers that wish to
engage with the digitally minded Latino, Ferrer has one simple suggestion: Listen to your
customer. Tools such as Radian6 can serve as strong user intelligence tools, providing
rich data on how Hispanics are using your digital platforms.

How social media impacts online commerce should also be examined in the Hispanic
space, notes Roar Media’s Al Quintana. For instance, any website featuring a product,
brand, service or good should be mobile-optimized, given the trend of Hispanics
accessing the internet from a smartphone or tablet.

Targeting Latinos through digital platforms should also be based on content, and not so
much on language. Mantilla believes many Hispanics have the luxury of picking and
choosing a language. With the rise in bilingual, bicultural Hispanics already being seen
in the U.S. he firmly believes that “language is not about un solo idioma. It is about how I
am speaking to you.” Ferrer agrees. “Culture will be a unifier of Hispanics for years to
come.”

Mantilla says marketers should look at two key things when looking at digital media, in
particular social networking platforms:

• Ask where and/or how Hispanics are participating in social media
• Determine how Hispanics are engaging in social media conversations

Social media is used by many brands to connect to the Latino consumer in a very grass-
roots way, chatting with them like a trusted friend over an afternoon coffee. For
Quintana, social media platforms are also perfectly designed to convert people to
website users, driving traffic to an online destination center that remains highly
important despite a heightened focus on Apps.

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República’s Jorge Plasencia, in an interview for HMO FYI – República is set to
the Hispanic Market Overview, added, “We all expand with a Los Angeles-area
know that Hispanics overindex with everything office, says CEO Jorge
online, and the fact that social media is so Plasencia. He hopes to
robust in our community is because it is ‘social’ accomplish this goal within the
– a community that wants to stay in touch with next 12 months.
family and friends and stay in touch with
people right here or with someone in their
home country.”

That’s why many República clients are making social media an important part of their
Hispanic strategy, coming to the agency with a much more robust team to develop
and execute content. At República, social media is an entirely separate group from its
public relations division. “All they do all day long is research and coming up with
content for social media,” Plasencia says.

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AGENCY/ONLINE/PR

BRAND LEADERSHIP, ACROSS ALL PLATFORMS
In November 2011, a Houston-based independently owned Hispanic marketing agency
took time out to celebrate on Chicago’s Navy Pier. The occasion? The shop, López
Negrete Communications, had been selected as the “Best Hispanic Agency Using
Social Media to Reach Latinos” by Latinos in Social Media (LATISM) at its annual awards
gala.

CEO Alex López Negrete points to the rapid embrace of smartphones and other
handheld digital devices for his agency’s integration of social media into its creative
services.

"The digital emergence of 13.5 million Latinos on Facebook and 8.1 million on Twitter,
along with the emergence of an enormous community of Latino bloggers, has
revolutionized the marketing landscape forever. Our clients' brands are competing for
the moment and competing for relevance in a time when attention is a precious
commodity. Hence, we have made it a strategic imperative to be an innovator in this
space and to have the best people in the industry, setting models and standards in the
use of social media targeting Latinos.”

The recent addition of Sandra Alfaro as Managing Director of Brand Leadership at
López Negrete will likely further bolster the agency’s standing. The move also gives a
vote of confidence to the Hispanic advertising industry, as Alfaro joins LNC after a short
stint as head of Ramona, a now-shuddered Hispanic boutique with MDC Partners’
Kirshenbaum Bond Senecal + Partners. Before that, Alfaro served as Director of Account
Management at New York-based independent agency The Vidal Partnership. Alfaro
works alongside Julio Arrieta, who shares her duties.

“We need to be that partner for the client that has the deep, unmatched
understanding of the Hispanic consumer audience,” Alfaro says. “Our goal is to be the
extension of the client’s marketing team … and we have to earn it.”

Alfaro believes the Hispanic-focused shop is important for CMOs charged with
achieving ROI in their Latino marketing efforts. Why?

“It is the passion, and dedication, and level of talent found at the Hispanic agency,”
Alfaro says. “When Hispanic is the sole focus, there’s a difference. It matters when you
wake up and all you eat and drink is your market. It really speaks to your level of
service.”

For digital, Lopez Negrete has drawn kudos for its social media efforts for Verizon (Somos
Verizon FiOS on Facebook and @SomosFiOS on Twitter), and its interactive websites
created for Verizon (www.EnciendeteFiOS.com), Sonic Drive-Ins
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(espanol.sonicdrivein.com), and Pernod Ricard's Chivas Regal
(www.nochesdebrotherhood.com).

“Our knowledge is not read in a textbook or analyzing numbers,” Alfaro says. “It is in us,
and we live it everyday. We all represent different acculturation segments, and you see
it walking around the office every day. It’s got to come from inside.”

On the subject of English vs. Spanish, Alfaro prefers to take the conversation above
language and to make it “about the mindset of the consumer,” thinking carefully about
how to engage the consumer within the brand categories and touch points that matter
most for them. “For example, one can start the day with Spanish-language radio and
work all day speaking English,” she says. “We can engage in brands that are most
relevant to our mindset at any given time.”

Traditional advertising is an integral part of López Negrete’s activity. Yet digital “has
permeated every single aspect of marketing today,” Alfaro says. “In everything we do
we add a component that is digital in nature. It is a booming, robust area for the
agency.”

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ONLINE

THE PORTAL: ADAPTING FOR ITS AUDIENCE
Is the online hub – the portal – still relevant, given all of the discussion about Apps,
smartphones and tablet use?

Yes, and especially in the Hispanic market.

Staying relevant with an ever-changing
audience, by delivering the right mix of content,
is one of the reasons why portals such as “For entertainment and
Terra.com continue to attract online Latinos. for information, mobile is
Fernando Rodriguez, CEO of Terra USA, notes now the primary device,
that in the U.S., 64% of its audience is comprised because you always have
of second- and third-generation Latinos, with it with you.” – Fernando
the remainder first-generation Hispanics. “We Rodriguez, CEO, Terra USA
recognize that our audience is very proud of
their culture, and we understand who they are
and that they live in two worlds,” he says.
“We’re speaking to them in two languages.”

While Terra.com’s calling card is relevant news, sports and entertainment content in
Spanish, for U.S. audiences, Rodriguez says the integration of more English-language
content is a central part of Terra USA’s growth strategy. “I don’t want to define us as an
English-language portal or a Spanish-language portal. We want to cater to all
Hispanics. It’s not about Spanish, or English, or Spanglish – it is about understanding the
consumer and what is relevant to them.”

How to the deliver the relevant content is a critical part of an evolution at Terra USA.
While the portal remains a key audience driver, it has ensured that its content was
available through “all venues and through all screens” since 2006. One example of
Terra’s expansion to smartphones and tablets is its recently launched live interactive
music platform. Built for a bilingual audience, the Toyota-sponsored platform offers live
streaming and real-time interaction with a given band. Miami-based pop fusion group
Locos Por Juana was the first act to participate; 40% of live streaming of the band’s
show was conducted through mobile devices, Rodriguez says.

“This is not the next trend,” he notes. “It is happening right now. For entertainment and
for information, mobile is now the primary device, because you always have it with
you.”

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Digital platforms also present a great opportunity for online media to gain additional ad
dollars. “Before there was a challenge because the [comScore] numbers were not that
significant,” Rodriguez says. “But now all stakeholders in the market need to understand
how to leverage these digital platforms. We have reached a point where we have
critical mass, and we need to do a better job of monetizing that. The social arena is
also huge, and we need to use social networks to promote our content.”

For Terra USA, the goal isn’t to have a lot of Facebook fans. Rather, it is about users of
the social networking site to become familiar with Terra, through content promotion.
“We see a significant click-through from Facebook and we’re looking for them to
connect back to Terra.com. Of course we want to have a conversation with people
through these platforms. But we don’t want to have just passive fans. We want to have
fans that contribute to the content and add to the experience. If you do not create
engagement, and that conversation, you are not reaching your ultimate objective.”

With all the push toward digitally savvy and bilingual, bicultural Hispanics, Terra will
remain highly interested in attracting the first-generation Hispanic. “You shouldn’t ignore
the first generation,” Rodriguez says. “It will be a mistake to forget about them. Yes,
we’re pushing English programming and not just for the sake of it. We’re talking about
things that matter to the consumer today. It is about understanding how the consumer
wants content that is relevant to them, and how they want it delivered to them.”

RadioLatino

What are the songs Hispanic radio listeners are most likely to hear on Spanish-language
radio? Here’s a glance at the most-played current singles, year-to-date, as measured by
Mediabase 24/7.

REGIONAL MEXICAN:
La Arrolladora Banda el Limon “Llamada de mi Ex”

SPANISH CONTEMPORARY:
Maná “El Verdadero Amor Perdona”

TROPICAL (SALSA/BACHATA):
Prince Royce “Las Cosas Pequeñas”

REGGAETON/LATIN URBAN:
Daddy Yankee “Lovumba”

Copyright © 2012 Mediabase. All Rights Reserved.

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MEDIA

CULTURAL FLUENCY: WHAT MATTERS MOST
Cesar Conde, President of Univision Networks, is fully aware of the increased use of
English among Hispanics. He’s also among the ranks of industry veterans who believe
that Spanish-language media will remain vital to reaching all Latino consumers for years
to come.

In an interview with Hispanic Market Overview, Conde discusses how the nation’s
leading Spanish-language media company is overcoming any objections from
potential clients that believe hitting English-language media is suffice for meeting their
Hispanic marketing needs.

CESAR CONDE: The most effective way to reach Hispanics is in culture. More than
Spanish fluency, more than English fluency, cultural fluency is what is relevant. Latinos
crave aspects of their culture – food, holidays, music, media, and content - that reflect
their roots, community, values, and aspirations.

The culturally relevant content that exists in Spanish-language media – and is not readily
available in English – satisfies the appetite for Hispanic culture. We also know that 75% of
all Hispanics speak Spanish at home and that 42 out of the top 50 shows among
Hispanic bilingual audiences are on Univision. Language is a powerful tool to use in the
in-culture approach, and while some marketers believe they are effectively reaching
Hispanic consumers through English-language media, they are reaching English-
dominant Hispanics, who are highly fragmented across English-language media. The
top three English-language broadcast shows with Hispanics only deliver 8-10% of
Hispanics within their audience, while Hispanics represent 19% of the U.S. population.

HMO: English-language usage will continue to rise, and Hispanic media must recognize
this. What efforts are Univision's brands undertaking to welcome Latinos that may only
use Spanish with family and close friends, extending its relationship with third- and
fourth-generation Latinos?

CC: For Hispanics, Spanish is the language of the heart that maintains a strong
connection to the content, their country of origin, culture and community. In fact
between 1980 and 2007 the number of Spanish speakers in the U.S. grew by more than
200%. We recognize that the Spanish-language opportunity will continue to grow, which
is why we remain committed to serving our audience in Spanish – and are expanding
those offerings through the launch of our three new 24-hour Spanish-language cable
networks, which are focused on three of Hispanic America’s biggest passion points --
novelas, sports, and news.

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The fact remains that our content speaks to Hispanics. Because of our strong mix of
novelas throughout the week and our powerful franchises such as [beauty competition]
Nuestra Belleza Latina on Sunday nights, Univision has become a competitive player
among the “Big 5 networks.”

HMO: Digital and mobile initiatives are essential for all media growth in the 2010s and
beyond as platform-specific communication will soon be phased out thanks to rapid
changes in how consumers digest entertainment. How is Univision at the forefront of
reaching Latinos over smartphones, tablets, and other digital devices?

CC: We know audiences are becoming more evolved every day, they are no longer a
simple extension of television and radio – they’re interactive, they’re on the go, and
they are accessing content from different devices. We think it’s instrumental to provide
stellar content that features top-of-the-line personalities, artists and storylines, or
exclusive elements that give users the chance to truly engage in something they
cannot find anywhere else.

Univision is spearheading efforts to make
content available to the country’s fastest-
growing consumer segment, across all In 2011 Univision was the No. 1
platforms. We offer our audience culturally network among Adults 18-34
relevant content, covering an array of passion more nights than any network,
points – from sports, with live streaming of our except for Fox. Univision also
soccer matches on UnivisionDeportes.com, to beat NBC 195 times among
music with our "Univision InStudio” sessions, Adults 18-49.
which recently featured Paulina Rubio,

We also reach Hispanics with social media. Social media has proven to be not just a
two-way conversation but has also enhanced the whole TV viewing experience. It has,
in a sense, recreated the family and friends viewing experience in an interactive way.
Our future will be largely centered on increasing our variety of interactive content and
expanding its distribution across different platforms, with an emphasis on community
and social media.

HMO: Univision is expanding with new television networks. But is it too late to gain
traction in Spanish? Aren't there already "enough" TV networks serving Spanish-preferred
Latinos? These are questions asked by some, but with MundoFox launching and your
expansion obviously there is a fallacy to these statements. Can more networks bring
more viewers and more dollars without diluting an already challenged market?

CC: This is a very exciting time to be in media and in Hispanic media, specifically, as
new competitors pursue the opportunity. We see the increased attention to the
Hispanic consumer as a positive development. Competition is nothing new to us.
Univision is a brand that is focused on innovation and on delivering the best available
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content for Hispanic America. Our relationship with Televisa gives us an enormous
competitive advantage in the marketplace. Coupled with the strength of our brand,
Univision continues to see growth. In fact, there are more than 100 Hispanic-focused
broadcast and cable networks in the space and today.

Media dollars have always followed the consumer. Today, Hispanics are at 50.5 million
in the U.S. and 54% of population growth in the next five years will be attributable to
Hispanics – that’s one in every four babies born in this country. By 2050 one in three
Americans will be Hispanic. Numbers are the name of the game in media. Univision is
working to help marketers and agencies capitalize on the opportunity to drive sales
with Hispanics by simply shifting their media dollars to Univision. We recently launched a
marketing campaign with a razor-sharp focus on this message to media decision-
makers.

HMO: How is Univision going after the bilingual, bicultural Hispanic audience? Should it?
After all, they're likely watching MTV, ABC, Fox, and ESPN in English, so why bother in
Spanish, right? Or is that statement patently false?

CC: Univision’s strongest demographic performance is among young Hispanic Adults
18-34 years old. A growing portion of this demographic is bilingual. Yet even as they
learn English, the data show that these viewers choose to consume media in Spanish on
Univision. Delivering culturally relevant content to bilingual, bicultural Hispanics is the
key, and our numbers prove this. Against other networks, Univision’s audience has the
youngest media age (36.2) of any broadcast network regardless of language, while
ABC (51.6), NBC (51.4), CBS (56.5) and FOX (44.4) continue to draw an older audience
base during their broadcast prime.

Cesar Conde oversees the Univision and TeleFutura broadcast television networks and
six Univision cable television networks: Galavisión, De Película, De Película Clásico,
Bandamax, Ritmoson, Telehit and Clásico TV. He is also responsible for Univision Studios,
created in December 2009 to build on the original programming produced by the
company. From 2002-2003, he served as a White House Fellow for Secretary of State
Colin Powell and prior to joining Univision served as vice president of business
development for starMedia.

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MEDIA

CROSS-PLATFORM VALUES
Spanish-dominant and bilingual Hispanics are an integral part of the audience focus for
Telemundo, the NBC Universal-owned rival to Univision. Dan Lovinger, EVP/Ad Sales for
Telemundo Media, believes the network will continue to target Hispanics who crave
Spanish-language programming for years to come. “We believe there is a lot of
opportunity to grow in Spanish,” he says.

At the same time, Lovinger has his eyes set on attracting young Hispanics, regardless of
what language they prefer to use, to Mun2, NBCU’s Spanish-language cable television
network seen by many as the hipper younger cousin to Telemundo. “The median age
of the Mun2 audience is 26-29-years old, which well represents the median age of
Hispanic America,” he says.

“If you do your content right, they will come
HMO FYI – Borja Perez has been
and watch it,” he says. Speaking of Telemundo,
promoted to to senior vice
Lovinger adds, “Our growth isn’t due to any
president of digital and social
one program this year. We’re up in every hour
media at Telemundo. He
in prime-time. We have made improvements to
continues to report to EVP/Digital
our live specials and award shows [including
Media and Emerging Business
the recent Premios Billboard] and added non-
Peter Blacker. Telemundo in 2011
fiction programming. I think there is some room
enjoyed double-digit digital ad
for reality television, and I don’t think it’s going
revenue growth.
to replace novelas. But I would not be surprised
if I saw more reality programming in the future.”

Digital media, along with social media, are platforms now being packaged by the
network to further attract those twentysomethings to Telemundo and Mun2. “Our
philosophy is that we want our content to be everywhere,” Lovinger says. This has
resulted in a launch of smartphone Apps devoted to novelas and sports.

“We had interest in these Apps from Day One, and now we are gathering the ROI data
and putting something together,” Lovinger says. The tools are used to drive
engagement in the most efficient ways possible.

“We are using social media for a number of purposes, but first and foremost it is a
promotional tool for us,” he continues. “Before the launch of our 10pm telenovela,
‘Relaciones Peligrosas,’ we knew there were ways the young characters could self-
promote themselves. So we enabled the cast to be catalysts by taking to social
media.”

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Still, Telemundo is taking a cautious approach to fawning over Facebook. “If you have
500,000 followers, what do you do with that?” Lovinger asks. “You have to publish on
Facebook everyday, and it almost becomes a liability rather than a benefit if you are
not actively populating the page with stories.”

At day’s end, Lovinger is most pleased about continued growth in viewership at
Telemundo, in particular among adults 18-49. “We’re up no matter how you slice it. We
used to have a 25 share total-day and we’re now a 29 share total-day for the
broadcast season. Consequently, people reward you for that.”

Going into the 2012-13 Upfronts, Lovinger hopes those people represent potential and
returning advertisers.

MEDIA

TR3S: ‘A BRIDGE BETWEEN TWO WORLDS’
“Language does not capture the uniqueness of the Hispanic audience.”

That’s the view of Charlie Singer, SVP of Content and Creative for Tr3s, Viacom’s U.S.
Hispanic cable network originally conceived as MTV en Español. While Tr3s has shed the
“MTV” brand, it has much of the essence of its English-language sibling. New series
include “Quiero My Baby,” a reality series sponsored by Target spotlighting bicultural
parents as they tackle parenthood; the Mexican novela “Bienvenida Realidad,” a
success on Cadena Tres that deals with the pressures and intolerances of adolescence;
and “The Ricardo Laguna Project,” a look inside the amusing life of BMX star Ricardo
Laguna as he attempts to break three world records and start his own family business
while balancing his close-knit Latino family and life in Las Vegas.

It’s not your parent’s Hispanic television network.

“Our bilingual, bicultural audience comes to Tr3s because our brand attributes speak
directly to who they are, and in a very different way than the English- and Spanish-
dominant networks,” Singer says. “Tr3s is the bridge between the two worlds, and our
original content is our best asset for filling the void among these networks. There are
certain aspects of the bilingual audience that are Spanish-dominant and others that
are more acculturated and English-dominant. Understanding this is key to creating
effective and engaging content for this audience.”

Bilingual in its approach, Singer says Tr3s’ language choices are dependent on multiple
variables from show formats and content to genre and the generations of its audience.
“Our viewers under 30 years old are more English-dominant in their day-to-day lives but

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more Spanish-dominant at home with their parents and grandparents. It’s important to
understand the full spectrum of this audience’s reality.”

In fact, focusing on language is missing the point, Singer says. “Yes, there are limitless
choices when it comes to content that engages this audience, but our audience
comes to Tr3s because we deliver authenticity vs. language. They’re more likely to
watch Tr3s’ ‘Quiero Mi …’ franchise over the stereotypes on [sitcoms like] CBS’ ‘Rob.’”

Many Tr3s viewers are digital and mobile technology innovators. Singer says Tr3s is
certainly aware of the robust opportunity to approach this group of consumers on their
hand-held device.

“We’re developing more user-generated content across multiple vehicles, including
social media and mobile,” Singer says. A new Quiero Mis Quinces App is now available.
“We’re also strengthening our strategic partnerships with AOL Latino and
Ourstage.com, which reaches a community of 17 million music fans and new artists. We
are also exploring new opportunities with key players such as Spotify and ImpreMedia,
among others.”

New television networks, from MundoFox to Univision’s niche cable networks, seek to
add more viewers and attract more advertisers to Spanish-language television, which
already receives the bulk of Hispanic ad dollars. How does Tr3s fit in to this growth,
especially as discussion continues about the growth of bilingual, bicultural Latinos that
seemingly prefer English-language media?

Singer comments, “The new and existing Spanish-dominant platforms will certainly face
some challenges in the coming years, given the idle economy and decline in
immigration. The future is the bilingual-bicultural audience, given they’re the fastest
growing segment of this population. Tr3s’ research study, 'Death of the Hispanic Adult
Demo as We Know It,' reinforces the need for Hispanic marketers and industries to
develop strategies that target that bilingual-bicultural viewer, specifically. It will be
interesting to see the shift in strategy.”

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SPORTS

A KEY CONNECTOR TO LATINO CONSUMERS
Brands have ample opportunities to connect with a fervent, passionate group of
Hispanic men and women – the sports fan. From soccer to boxing to NFL, NBA, Major
League Baseball and mixed martial arts, Latinos love sports.

In fact, the Hispanic thirst for sports programming seemingly can’t be quenched. On
April 7, 2012, Univision launched “Univision Deportes,” a 24/7 network devoted to sports
available exclusively to Dish Network subscribers. With a fútbol-heavy slate that includes
Mexican Premier League and Major League Soccer matches and studio highlight
shows featuring Univision talent such as Fernando Fiore, Univision Deportes is
complemented by “Univision Deportes Dos” – also launched April 7 exclusively for
DishLATINO subscribers. “Dos” will feature 10 exclusive broadcasts of Mexican League
soccer matches, through its partnership with Televisa, in addition to encore
presentations of Univision Deportes programming.

Univision has set its sights on taking at least a nibble of the audience – and ad dollars –
that currently go to such cable television networks as GolTV, Fox Deportes and ESPN
Deportes.

Mario Fraticelli, Director of Content for Digital and Manager of Social Media for ESPN
Deportes, and Oscar Ramos, Senior Director and General Manager for ESPN Deportes
Radio and ESPN Deportes Digital, participated in a round-table discussion with Hispanic
Market Overview editor Adam R Jacobson to discuss what’s driving the Hispanic sports
fan, and how ESPN Deportes continues to innovate through digital and mobile
platforms, in addition to its mix of programming.

HMO: Content delivery is more than just a television network or videos on a website,
especially with Hispanic sports fans who more than ever are using mobile devices to
stay apprised of the latest news and features. How is ESPN Deportes reaching these
fans?

Oscar Ramos: The mantra that ESPN that has always lived by is to serve the sports fan in
any way, shape, or form through the most convenient delivery vehicle or screen. That’s
not just our mission statement: We live by this on a day-to-day basis.

HMO: We hear more and more about the bilingual, bicultural Hispanic, in particular
among younger men. How is ESPN Deportes addressing this growth?

Mario Fraticelli: We are focused on Spanish-language content, but we also know how
to speak Spanglish. The median age of the ESPN Deportes consumer is 34. We want to
approach a younger group.

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HMO: How is ESPN Deportes accomplishing this?

MF: Through social media. We’re doing this that allow for more flexibility, and allow fans
to interact with the content.

ESPN Los Angeles is producing content that is in Spanglish. We just launched a four-part
video series where we sat down with colleagues from the English side of ESPN and
produced a Spanglish version of the web series Born + Raised. For ESPN Deportes we
sent Chuey Martinez, a presenter on Viacom’s Tr3s
network and a KIIS-FM/Los Angeles DJ, to Spring
Training in Arizona. It’s humorous, and talks about how GOL SCORED
to get in shape and what the “MLB look” is. IN GOTHAM

OR: This is all a work in progress for us. We take a step ESPN Deportes Radio will
back every single day and analyze how the fan debut on AM 1050 in the
experience was compared to yesterday. As their New York metropolitan area
needs or specific appetite for specific content this September, thanks to an
changes, we need to respond to those changes. That arrangement between The
involves both intuition and our own research, Walt Disney Company and
interacting with our own fans through social media. Emmis Communications that
We can interact and see instantly how the audience shifts the English-language
reacts. “ESPN 1050” to WRKS-FM
98.7. ESPN Deportes Radio
HMO: Mario, what are you learning from social recently added a Chicago
media? signal – an FM translator at
MF: We are learning a lot about fan behavior. My 97.5 that covers a majority of
the market’s Hispanic
priority is to drive traffic to the website. For example,
the fan is telling us during the game – a big game like population.
[the April 21, 2012 Barcelona vs. Real Madrid “Súper
ESPN Deportes Radio rounds
Clasico” match] – to go to our website with
out its reach in the top 10
commentary. That’s one-way communication, with no
U.S. Hispanic markets, and
participation. Now, fan behavior is telling us that they
currently has 45 affiliates
go to watch the game on ESPN Deportes but they’re
nationwide.
going to be chatting on Twitter. The result: Having a
hash tag on Twitter. That’s how we can adapt to what
the fan does.

HMO: Is there a plan to monetize social media platforms ESPN Deportes is using?

OR: ESPN Deportes has a “total media” approach – It’s not just social media, it is how
social media interacts with our linear terrestrial network, magazines and mobile
platform. We don’t necessary have a specific campaign or strategy by platform. We
46 | P a g e


really try to say to the advertiser that one works
with the other, and the idea here is that you buy FOX Deportes has partnered
into that approach, and that you’re going to with boxing promotional
reach the fan in different ways. company Golden Boy
Promotions that allows the
Digital is still a bit challenging, but it is starting to Spanish-language cable
change, in terms of results and being able to television sports network to air a
deliver results to our advertisers. It is still in the monthly U.S.-based boxing
‘new media’ arena, and a lot of advertisers are event produced exclusively for
still not convinced of its effectiveness. We strive the network. Two live boxing
to prove to them that it is successful and events from cities throughout
effective and when combined with other media Mexico are included in the
can become robust and efficient. agreement, which gives FOX
Deportes broadcast rights to
MF: Right now we have a campaign running on
classic fights from Golden Boy
TV, and on digital and social media, for Gillette.
Promotions’ library.
Every morning I post who delivered the best goal
in La Liga over the weekend; this is presented by
Gillette. This is part of the whole package.

HMO: What else makes ESPN Deportes different, given the ever-growing competition?

OR: Fans tell us we’re very unique in how we are committed to the sports world. We
focus on being able to bring the best research, journalistic approach, commentary and
debates to what we offer and really present sports in a very compelling way. Beyond
the play-by-play, it is really that game around the game.

Play-by-play is very important, but equally important is the ability to interact with our
experts and debating with some of the other experts on our staff. I think there are
always challenges, and I think that is what makes us better and what makes us stronger
– to not be complacent with what we’ve got and to always take what we want and
make it better.

HMO: What’s the biggest change from 2005 that you can share?

OR: The acculturation level of Hispanics. Nobody is surprised that it has happened, but
perhaps we’re a little surprised at the speed that acculturation has happened. Our
biggest benefit is being able to quickly react to that.

MF: I spent 2000 to 2006 with Univision.com and we were so concerned about the purity
of the Spanish content. Now, Spanglish and bilingualism are being used because of the
changing nature of the youth market. It simply gives us more flexibility in the production
of content and how we approach the fan.

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SYNDICATED RADIO PROGRAMMING

MUSIC, TALK, AND LOTS OF GOALS
Many radio stations pride themselves on their strong lineup of presenters. Others strut
their stuff with their music, or sports programming.

The syndicated radio network is largely responsible for delivery of these shows. In the
U.S. Hispanic market, Fútbol de Primera Radio and GLR Networks are among the primary
distributors of sports programming, general-interest talk shows and, in the case of GLR, a
growing variety of music-oriented programs.

Such offerings are important not only for independently operated Spanish-language
radio stations, but also their listeners. Spanish-language radio stations educate, inform,
and entertain a large segment of media consumers who prefer to engage in
programming that uniquely speaks to them. Even as the percentage of English-
preferred Latinos continues to rise, consumption of Spanish-language radio remains
strong - and is predicted to stay this way for many years. Stations offering Spanish-
language syndicated programming are a vital part of Hispanic radio's long-term
growth.

Sports – soccer, in particular – is a primary component of what syndicators offer to
Spanish-language AM and FM stations in the U.S. The reason, notes Fútbol de Primera
chairman Andres Cantor, is simple. “Hispanics prefer to listen to soccer in its native
language, and with the special flavor only the best announcers can give the game.
Soccer is about the passion, and Hispanics will always relate to play-by-play in their
language, with the broadcasters that can reciprocate the feelings of the listeners.”

Fútbol de Primera has been FIFA’s U.S. broadcast partner for World Cup radio coverage
since 2002, and has agreements in place through the 2022 games. It also offers shoulder
programming including the Cantor-hosted Fútbol de Primera Show, which airs daily and
covers the world of soccer. FDP Radio isn’t just about fútbol – the network also offers
daily vignettes and our lifestyle program "Casos y Cosas de Collins," hosted by Maria
Antonieta Collins.

GLR Networks is also widely known for its sports programming, with a growing list of
affiliates for its play-by-play of Mexican Premier League squad Chivas de Guadalajara
and 11 other Fútbol Liga Mexicana teams. There’s also a weekday sports update of 2 ½
minutes in length offered five times each day, and a 60-second sports update delivered
six times each weekday to meet the demand of the Hispanic sports fan.

But GLR’s growth is also coming from non-sports programming. In 2011 En Voz Alta con
Maria Celeste was added to the lineup, and the 2 ½ minute vignette airs up to three
times daily on roughly 50 affiliates. Luis Gutierrez, VP and Director of National Advertising

49 | P a g e


Sales at GLR, notes Celeste is scoring in the
ratings among women 25-54. Advertisers
HMO
ENTREVISTA
on board for En Voz Alta include
JCPenney, Clorox, Macy’s, Allstate, State
Spanish-language media remains Farm, Walgreen’s, and Sears. GLR’s talk
vitally important for reaching all programming also includes Salud y Familia
Hispanic consumers, despite the rise in
with Dr. Elmer Huerta, the first-ever Latino
bilingual and English-preferred Latinos.
to serve as president of the American
Mark López, head of U.S. Hispanic
Cancer Society. Huerta is available as a
audience at Google, shares how the
digital media giant is approaching the vignette delivered in similar fashion to En
U.S. Hispanic market and targeting the Voz Alta, or as a daily hour-long show
Latino online consumer. airing at 10am PT/1pm ET. Top-of-the-hour
news is also a major part of GLR’s
The U.S. Hispanic market is a powerful
programming. The network’s “Minuto 60”
one, and Google helps advertisers
five-minute newscast is anchored by
reach this incredibly savvy group of
consumers, whether via Spanish-
veteran Hispanic journalist Pedro Sevcec.
language or English-language
In Spain and in many parts of Latin
campaigns. We believe bicultural and
America, the “40 Principales” brand is
bilingual content is key to engaging
the U.S. Hispanic market, and we help
synonymous with Top 40 radio. In the U.S.,
our advertisers reach this powerful the brand is used as the name of a two-
audience by offering display, video, hour countdown of the week’s biggest
and mobile ad-serving platforms to songs, delivered weekends to affiliates.
help them connect with users at their
moment of relevance. Now, GLR is offering four additional music
shows to affiliates:
Our approach to adjusting to the
unique needs and behaviors related • Tropical Latino, featuring salsa,
to this market is to invest the time in merengue and bachata music
understanding it. For instance, our from music charts across Latin
research has shown us that U.S. America
Hispanics are more likely to watch full- • El Elevador, a top 10 regional
length movies and TV shows, share Mexican hits countdown
videos and engage with longer- • El Callejón, a two-hour music and
format content than Whites, Blacks, or
lifestyle show focused on
reggaetón and the Latin Urban
Asians; they are 58% more likely to
movement
click on search ads and are 22% more
• World Dance Music, featuring news
likely to make purchases in-store as a
and mixes from renowed DJ Luis
result of online ads viewed while
López.
researching a potential purchase than
the general US population.

(Continued
on
page
53)

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