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E.S.L: Everybody Sells Latino

Lunch & Learn - February 7th, 2012

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Agenda

• Hispanic Marketplace

• Ad Marketplace

• Advertiser Best Practices

• Hulu Latino

• Q&A

Hispanic Markethttp://corporate.univision.com/the-hispanic-consumer/video/

More Hispanics Among Us

1 out of every 6 people in

the U.S.is

Hispanic

Source: US Census Bureau

Hispanic Growth

• 50.5 Million Hispanics in the U.S.

• Hispanics account for 56% of total US population growth in the last 10 years

• Projected to grow to 66 million by 2020

112 Million

50.5 Million46.5 Million

44.2 Million

41.3 Million

Mexico

U.S. Hispanics Spain

Colombia

Argentina

1

23

4

5

Source: U.S. Census Bureau, International Data Base, Country Rankings, 2010U.S. Hispanics Source: U.S. Census Bureau, Projected Population by Single Year of Age, Sex, Race and Hispanic Origin for the United States: July 1, 2000 to July 1, 2050

The U.S. Hispanic Market is the 2nd Largest Spanish Speaking Market In The

World

2010 Population

Mexicans are the Largest Hispanic Country of Origin Group

Top 5 By Country of Origin

Source: U.S. Census 2010

MexicanPuerto Rican

CubanSalvadoranDominican

Other Hispanics

31,798,0004,624,0001,786,0001,649,0001,415,00010,200,000

Source: Nielsen Claritas iMark

DMA

2011

Hispanic

Population

Hispanic %

of Total Pop

1. Los Angeles, CA 7,890,973 44%

2. New York, NY 4,323,470 21%

3. Houston, TX 2,051,803 33%

4. Miami, FL 1,979,958 46%

5. Chicago, IL 1,922,477 20%

6. Dallas, TX 1,837,150 26%

7. San Francisco, CA 1,551,794 22%

8. Phoenix, AZ 1,471,171 28%

9. San Antonio, TX 1,269,032 54%

10. Harlingen, TX 1,097,005 89%

Top Hispanic Markets

Hispanic Growth In Non-Traditional States

States

Hispanic

Population

Growth (2012-

2014)

% Hispanic

Population

Growth (2012-

2014)

1. South Carolina +57,456 31%

2. Georgia +249,084 31%

3. North Carolina +208,225 30%

4. Arkansas +48,617 30%

5. Tennessee +68,630 30%

6. South Dakota +5,692 29%

7. Nevada +186,043 27%

8. Virginia +140,533 26%

9. Alabama +34,373 26%

10. Utah +84,034 26%

Source: Nielsen Claritas iMark

$1.2 Trillion In 2011

The 18th Largest Economy in the World

Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, The Multicultural Economy 2010

$1.5 Trillion by 2014

78% of Hispanics Speak English & Spanish

Spanish only12%

Bilingual31%Spanish

dom27%

Culture is the traditional unifier

English only10%

• Hispanic are almost 10 years younger on average

• 62% are under the age of 35

• Hispanic kids/teens represent 23% of this population or 1 in 4– If not for Hispanic population

there would have been no increase in kids/teens

The Youth of America

Source: US Census Bureau; Nielsen Media Research

Today(2012)

Source: US Census Projections 2010-2020

Teens are Hispanic

1in5of the total Hispanic population is under

25

Half62%of all U.S.

Hispanics are U.S. born

Fueled by 18-24 year olds.

Of all 18-34 year olds will be

Hispanic

1/466%of Teens will be Hispanic

Tomorrow(2020)

Language Fluidity

SOURCE: MUN2 LANGUAGE STUDY, DECEMBER 2010 PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER, 2009

70%use “Spanglish”

HOME WORK SCHOOL

w/ FRIENDS w/ HISPANIC RELATIVES

39% Spanish 80% English

55% Spanish

74% English

55% English

SOURCE: MUN2 DIGITAL STUDY DECEMBER 2010

The Always-Connected Generation

Technology is the new passport.87%

stream video content on the

internet

73%stream/ listen to music on the internet

63%want their

friends to beable to reach

them 24/7

61%own a

gaming system

94%internetat home

87%own a mobile

phone

53%own aniPod or

MP3 player

73% own a laptop

What they have.What they do.

GenYLA

HHs

% of Viewing per Network

UNI

TEL

TF

ETV

AZA

PBS

ION

CW

FOX

NBC

CBS

ABC

74 Hours w/ SL Broadcast TV

19 Hours w/ EL Broadcast TV

Hispanic HH Viewing (Hrs/Mth)

Source: Nielsen Media Research NHIH, SL EL BROADCAST NETS 7/11 HH

Univision = 46% of broadcast viewing which is more than

all the EL nets combined

Among all Broadcasts networks Hispanics spending 71% of their viewing with Spanish content.

Univision captures more viewing than all the English content nets combined

YTD 2011, Univision continues to be the #3 broadcast network averaging more Adults 18-34 viewers - among ALL viewers

71%

29%

Hispanic Broadcast Viewing

Univision

60% share of the MarketAppeals to a Mexican

AudienceSkews slightly older

Acquires it’s novela content from Mexico

Top Broadcast Nets

Telemundo

20% share of marketAppeals to “the other

Hispanic”Skews slightly younger

Produces it’s own Novelas

Hispanic Identityhttp://www.youtube.com/watch?v=tT7_oQzDYMw

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Hispanic Ad Marketplace

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Hulu Latino represents a HUGE opportunity to tap into the fastest

growing population in the U.S.

And a HUGE opportunity for advertisers demanding more

premium video content

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Hispanic Total Ad Spend

Local TV – 1.3B

Network TV – 3B

Source: Tvb.org, Kantar Media

Digital – 336MM

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Top Advertisers

Network TV1. Procter & Gamble2. Direct TV3. Lexicon4. McDonald’s5. General Mills6. Verizon Comm.7. State Farm8. General Motors9. Dish Network10.T-Mobile

Digital1. Verizon Wireless2. Procter &

Gamble 3. Ford Motors4. Sprint5. Unilever6. Dish Network7. Toyota8. Allstate

Insurance9. T-Mobile10.AT&T

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Top TV Nets & Sites Among Hispanics

TV Networks

1. Univsion2. Telemundo 3. Fox4. ABC5. Telefutura6. CBS7. NBC8. CW9. Azteca America10.Estrella TV

Sites

1. Univision2. Yahoo Español 3. Terra4. MSN

Latino/Telemundo 5. Televisa6. AOL Latino 7. Orange Sites8. Batanga9. Musica.com10.ImpreMedia

Network

Ad Best Practices

http://www.youtube.com/watch?v=RnQ1-mEIYw8

http://www.youtube.com/watch?v=rxxTiVHlI2U

http://www.youtube.com/watch?v=mv22fRtA63M

PepsiCoverGirl

Allstate

Dr. Pepper

http://www.youtube.com/watch?v=noabIuOAuoE&feature=BFa&list=PL21EBFE1633C214A4&lf=results_main

Hispanics Have Higher Instance of Co-Viewing

Source :NTI, NPower PXP Respondent Level Data, 09-10 STD through 12/26/10, SPLTV = TEL, UNI, TF, Eng TV = ABC, CBS, CW, FOX, NBC

• P18-49 co-viewing SPLTV with children (P2-17)

• P18-49 co-viewing SPLTV with other P18-49

68%Vs. 57% Eng Bdcst

44%Vs. 32% Eng Bdcst

Top Viewing Preference Among Hispanics

Source: Nielsen, NTI-H, 10-11 SeasonTD (9/20/10-1/2/11), Galaxy Explorer. Summary Program Type vs. Total Avg. SPLTV (Tel,UNI & TF), English TV (ABC,CBS,CW,FOX,NBC,ION,MNT)

English Language TV & Spanish Language TV- P18-49 – 10-11 Season TD Genre Rankers

Hispanics Have Higher Purchase

Propensity For New Technology

CURRENTLY OWN OR

PLAN TO BUY NEXT YEAR

Non-

Hispani

c

Hispanic Index

Internet

Enabled TV

30% 44% 147

E-Book

Reader

27% 42% 156

iPad/Tablet

PC

29% 48% 166

3D TD 22% 38% 173

Source: Terra ComScore Ad Value Research Study, Fall 2010

Hispanics Are More Likely To Own Smartphones

Source: Terra ComScore Ad Value Research Study, Sept. 13-Oct. 18, 2010, , e-Marketer, Horowitz Associates, “Multiplatform content & Services: Multicultural Edition”, Dec’10

120 index…Hispanic smartphone/PDA ownership (43% of Hispanics vs. 36% of Non-

Hispanics) Content Viewed Weekly Via Handheld Device - Hispanics 18+

Sport event segments

Children's Content

Sports news segments

News video segment

TV show preview

TV show (full length)

Movie preview/trailer

Movies

Music Videos

Sports event (full length)

0% 10% 20% 30% 40% 50% 60%

Source: Kantar Media – Spanish Network & Cable TV and English Network & Cable TV (November 2009 – October 2010)

Industry English

Network

& Cable

TV DOLS

Spanish

Network

& Cable

TV

DOLS

% To

Spanis

h

Automotive $4.2B $211M 5%

Communications $3.5B $519M 13%

RX & OTC Drugs $3.1B $58M 2%

Media & Advertising $2.8B $112M 4%

Restaurants $2.7B $254M 9%

Financial $2.1B $72M 3%

Retail $2.0B $150M 7%

Insurance & Real

Estate$1.8B $152M 8%

Prepared Foods $917M $93M 9%

Beverages $906M $80M 8%

Top 10 Industries On Gen Mkt Network & Cable TV & Underserved Industries on Spanish TV

Industry Spanish

Network

& Cable

TV

DOLS

% To

Spanis

h

English

Network

& Cable

TV DOLS

RX & OTC Drugs $58M 2% $3.1B

Financial $72M 3% $2.1B

Games, Toys & Hobbycraft $6.5M 1% $888M

Computers, Software, Internet $29M 4% $792M

Public Transportation, Hotels &

Resorts$8M 1% $695M

Pets, Pet Foods & Supplies $2.2M 1% $287M

HH Appliances, Equip & Utensils $77K 0% $283M

Building Materials, Equip &

Fixtures$2K 0% $256M

Gasoline, Lubricants (Trans) &

Fuels$5.7M 2% $255M

Footwear $0 0% $172M

Top 10 Industries Underserved Industries on Spanish Network & Cable TV

Hispanics Over Index In NumerousUnderserved Consumer Categories

Source: Simmons NCS/NHCS Summer 2010 Full Year POP Survey

Hispanic

Index(vs. Non Hispanic)

Pet Food/Supplements 165

Public Transportation (last 30

days)152

Grocery Shopping ($150+/wk) 132

FDR( visited 10+/lsat 30 days) 112

Skincare 112

Retail (Mall shopping/last 4 wks) 108

Gasoline 106

Hotel & Travel 103

Games, Toys 102

QSR (visited 14+/last 30 days) 102

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Hispanic Ad Marketplacehttp://www.youtube.com/watch?v=FR5z47giweU

Novela Lovers

http://corporate.univision.com/2012/uncategorized/consumer-passion-points-novelas/?utm_source=rss&utm_medium=rss&utm_campaign=consumer-passion-points-novelas&utm_source=Univision+Insights&utm_campaign=16b6db636c-RSS_WEEKLY_INSIGHTS&utm_medium=email

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Latino Update

Content PartnersTop U.S. Spanish Language Broadcast

Networks

Traditional & Modern SPL Films

Top International Broadcast Networks

Mom/Baby

Youth/Bilingual

Marketing Plan PhasePhase 1• Online Display • Online Search• Radio• Social Media

Phase 2• Univision & Telefutura

Roadshow• TV promotional efforts drive

brand awareness in the Hispanic marketplace and educate viewers on how to use Hulu.

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Hispanic 18+ Audience on Hulu

4M Hispanics on Hulu

29MHispanics on line

Source: Tvb.org, Kantar Media

Reaching – 18% of Hispanics Online

Hulu Reaches More Hispanic Viewers

Hulu

CBS.COM

UNIVISION.COM

ABC.COM

NBC.COM

FOX.COM

4.0

1.21.0

0.70.4

0.3

Hispanic 18+ Online Video Viewers (Millions)

Source: comScore Video Plan Metrix, December 2011. Base: Hispanics 18+.

Among A18+ over 1 in 10 Hulu viewers are Hispanic (12% comp)

Latino Performance

2 Months of Activity• 500k Uniques• Averaging 8,000 daily streams• 500,000 monthly streams• Most streams coming from Hulu Plus• Masthead exposure during Super Bowl Sunday

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State of the Marketplace

Common Questions:• Targeting Hispanics across Hulu?• Where are the numbers?• Where’s the Telemundo content?• Where’s the youth bilingual

content?• Custom marketing

opportunities?• Hulu original content on Latino?• Show/genre specific targeting• Ad selector English and

Spanish?• Mobile capabilities?

Challenges:• Delivery on launch partners• Launch more content• Short Flights• Geo targeting• Pricing:

- Hispanic agencies are not used to Hulu pricing

- Agencies compare Latino against existing Hulu ratecard

- Floor pricing min. Blended $35 CPM

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Latino 2012 Plan

• Everybody Sells Latino, collaboration is key!

• Prioritize the top 100 advertisers and meet with as many agencies and clients as possible

• Grow unique users and streams

• Figure out a strategy to target ALL Hispanics across Hulu

• Launch all the signed content providers

• Bring more content providers on board

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Gracias!