State of the Hispanic Consumer

7/31/2019 State of the Hispanic Consumer

1/20

State o theHispanic Consumer:

The HispanicMarketImperativeQuarter 2, 2012

REPORT


2/201 Copyright 2012 The Nielsen Company.

TABLE OF CONTENTS

Executive Summary...............................................................................................................1

Section One: Latinos are vital to Americas uture.............................................................2

Hispanics are big business now....................................................................................2

Hispanics account or most o U.S. uture growth.....................................................4

Hispanic culture in the U.S. is enduring and sustainable...........................................7

Section Two: Latinos are at the intersection o language, technology and media.........8Multiple platorms or television and online viewing................................................8

Technology adaption and adoption...........................................................................10

Section Three: Latinos have dierentiated consumption................................................11

Latino brand loyalty act check...................................................................................13

Ad spending...................................................................................................................13

Conclusion...........................................................................................................................15


3/20 Copyright 2012 The Nielsen Company. 1

ABOUT THIS REPORT

In over 100 countries around the world, Nielsen provides the most complete understanding o what consumers watch and buy. In theU.S., Nielsen has delivered insights about consumers or almost 90 years. TheHispanic MarketImperativeoffers a resh perspective

on the Hispanic consumer segment o the U.S. economy. This report highlights the importance o the Latino market and providesinsights to help marketers succeed in the opportunities that lie ahead.

EXECUTIVE SUMMARY

The U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, whichhas already occurred in the most populous states and is beginning to occur among the U.S. baby population. Ethnic pluralityreers to the coexistence o numerous ethnicities and races with no one segment in the majority. I the present U.S. economysubstantially benets rom Hispanics, the uture U.S. economy will depend on Hispanics by virtue o demographic change andthe social and cultural shits expected to accompany their continued growth.

It has become increasingly important to challenge commonly held misconceptions about the Latino market that undermine theimportance o its size, uniqueness, and value. The topics that ollow are ully addressed in the report and draw on compellingevidence o market change and the perspective o marketers who have proven success in the Latino marketplace.

Latinos are a undamental component to business success, and not a passing niche on the sidelines.

Rapid Latino population growth will persist, even i immigration is completely halted.

Latinos have amassed signicant buying power, despite perceptions to the contrary.

Hispanics are the largest immigrant group to exhibit signicant culture sustainability and are not disappearing into theAmerican melting pot.

Technology and media use do not mirror the general market but have distinct patterns due to language, culture, andownership dynamics.

Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market.The inormation in this report conrms what many marketers have known or some time, and yet, or some this is a wake-upcall about change that is here to stay.

I it were a standalone country, the U.S.Hispanic market buying power would make itone o the top twenty economies in the world.



SECTION ONE:LATINOS ARE VITAL TO AMERICAS FUTURE

Hispanics are big business now

The United States is on a path toethnic plurality, which is largelydriven by remarkable Latino consumermarket growth. The countrys vibrantdemographic composition, with itshealthy multicultural dynamic and youth,are a critical American asset in the globaleconomic competition. At the heart o thisasset, both now and over the next severaldecades, is the Hispanic population.

Over 52 million strong, Latinos areimpacting every aspect o the nationallandscape including popular culture,the workorce, consumerism, politicsand American national identity. TheHispanic markets size, growing clout, andbuying power o $1 trillion in 2010 and$1.5 trillion by 2015 require thoughtulunderstanding about what the marketrepresents to a companys bottom line.1Latinos are no longer just a sub-segmento the economy, but a prominent player inall aspects o American lie.

2000 to 2011 Hispanic vs Total Market Income Growth

Source: U.S. Census Bureau



Many companies believe that signicantgrowth opportunities come rom outsidethe U.S., but the Hispanic market oersunique growth prospects within ourborders. I it were a standalone country,the U.S. Hispanic market buying powerwould make it one o the top twenty

economies in the world.2

Whats more,the per capita income o U.S. Hispanics ishigher than any one o the highly covetedBRIC countries (Brazil, Russia, India,China).3 Despite the recession, U.S. Latinohouseholds that earn $50,000 or moreare growing at a aster rate than totalhouseholds.

Companies like Procter & Gamble,General Mills, Unilever, Coca Cola,and Walmart have made the Latinomarket an imperative or growth. Manyhave recognized that the Americanmarketplace has changed and Latinos area primary driver o growth, essential touture success. Similarly, major politicalcandidates are specically targetingHispanics who are critical to the votewhen considering Latino driven changein the electoral map and the sizeable

presence o Latinos in swing states likeFlorida, Nevada, and Colorado. In politicsor business, Hispanics can be the dierencebetween winning and losing the battle.

Based on above average consumptiono many consumer products and theircontinued demographic growth, Hispanics

will be the dominant and in many casesthe only driver o domestic CPG sales

growth to be illustrated in Section Three.

The per capita incomeo U.S. Hispanics ishigher than any one

o the highly covetedBRIC countries (Brazil,Russia, India, China).3

LatinoMarketplace

Insights

Hispanics are the cornerstone o uture growth:

Make Hispanic brand growth a measuredpriority or company leaders and agencies

Devote adequate resources to identiy anddene Hispanic market opportunities

Understand the role o language and cultureamong the Latino target consumer

2CIA World Fact Book, Estimates Online, 2011. U.S. Hispanic buying power was $1.1 billion in 2011, and would be 14th on the list o G20 countries, ahead o Turkey,Australia, Argentina, Saudi Arabia, and South Arica.

3Goldman Sachs Global Economics, Commodities & Strategy Research: BRICS Monthly Issue 11/06, June 24, 2011. Hispanic per capita income is rom Census in 2009constant dollars. Hispanic per capita income is second to Russia, but above Brazil, China and India.



Hispanics account for most ofU.S. future growth

Between 2000 and 2011, Hispanicsaccounted or more than hal o theU.S. population increase with slightlygreater growth than that o all othernon-Hispanics combined. Hispanicswill contribute an even greater share(60 percent or higher) o all populationgrowth over the next ve years. Eventhough immigration is down sharply,Hispanics continue to experience dynamicgrowth. In act, Hispanics are the astestgrowing ethnic segment expected to grow167 percent rom 2010 to 2050, comparedto 42 percent or the total population.

Source: Nielsen Pop-Facts 2011 to 2016, Population by Ethnicity and Single Race

Hispanics are the astest growing ethnic segmentexpected to grow 167 percent rom 2010 to 2050,compared to 42 percent or the total population.

Even thoughimmigration isdown sharply,

Hispanics continue toexperience dynamic

growth.



The overall U.S. population is graying, butthe Latino population remains young andthe primary eeder o workorce growthand new consumption. Over 60 percento the U.S. Hispanic population is underage 35, and 75 percent is under age 45.The 2011 graph demonstrates a reversal o

population trends around age 45, whereHispanics are concentrated in youngersegments and non-Hispanic Whites inolder groups. The median age o theLatino population is 28 years old, nearlyten years younger than the total marketmedian age o 37 years. Given that the ageor a new homebuyer is between 26 and46 years old, Latinos will become a orcein residential purchasing over the next tenyears.4

Because o Latinos avorabledemographics and increasing economicbuying power, IBISWorld, producer oIndustry Research Reports, has identiedseven economic sectors expected tobenet most rom Latino demographicchange: residential buying, ood (grocery

and restaurants), retail (especially clothingand electronics), education (highereducation and technical schools), nancialservices, transportation (automotive andairline), and entertainment and mediaindustries.5

Given that the age ora new home buyer isbetween 26 and 46

years old, Latinos willbecome a orce inresidential purchasing

over the next tenyears.4

Source: Nielsen Pop-Facts, 2011

4National Association o Hispanic Real Estate Proessionals, State o Hispanic Homeownership, 2010.

5IBIS World, The Growing Hispanic Population Means Big Business or These 7 Sectors, Special Report, August 2011.



The U.S. population map shows continuedgrowth in traditionally Hispanic areasand dramatic dispersal and new growthin areas where Hispanics were recentlyunknown. The raw growth numbers(represented by dots) show that evenwith very large established bases, growth

persists in Caliornia, Texas, the Southwest,most o Florida, New York metro andChicago metro.

Hispanics are 16 percent o the nationspopulation, and have much higherconcentrations in Texas (38 percent),Caliornia (38 percent), Florida (22

percent), Colorado (21 percent), Nevada(27 percent), and New Mexico (46 percent).

Areaswithin these states contain largepockets o Latinos where marketers cananalyze communities and anticipate newtrends that aect a growing proportion otheir business. In a very real sense, Hispanics

are a bellwether or the rest o the countrysuture.

Hispanic growth in the top HispanicDMA s is approximately two or moretimes larger than total population growthdemonstrating their growing infuenceacross many o the countrys major markets.

Los Angeles 7,961 17,741 8,839 18,752 11.0% 5.7%

New York 4,466 21,050 4,788 21,369 7.2% 1.5%

Miami 2,051 4,368 2,269 4,531 10.6% 3.7%

Chicago 1,939 9,742 2,157 9,953 11.2% 2.2%

Houston 2,175 6,333 2,560 6,906 17.7% 9.1%

Dallas 1,979 7,283 2,394 7,936 21.0% 9.0%

2011 HispanicPopulation

(000)

2011 TotalPopulaon

(000)

2016 Hispanic

Populaon

(000)

2016 TotalPopulaon

(000)

Percent

Hispanic

Growth

Percent Total

Populaon

Growth

2011 2016 2011 to 2016


Each dot equals 5,000 new growth in Hispanic

persons rom 2000 to 2011

Theme (%Comp, %Pen, Index)

Quintile 1: Highly Hispanic, on average 40%

Quintile 2: Above Average, on average 20%

Quintile 3: Below Average, about 9%

Quintile 4: Low Hispanic, about 5%

Quintile 5: Very Low Hispanic, about 2%

The U.S. populationmap shows continuedgrowth in traditionallyHispanic areas and

dramatic dispersal andnew growth in areaswhere Hispanics wererecently unknown.

2011 U.S. Hispanic Percent of DMA Population and Growth since 2000


In Salt Lake City, UT,Hispanics account or 27percent o total DMA growth

In Portland, OR, Hispanicsare growing 4.4 times asterthan the total DMA

In Washington D.C., Hispanics havethe highest median income comparedto other major DMA s

In St. Paul, MN, Hispanicsaccounted or 20 percent othe total population growth

In Sioux City, IA, Hispanics grew60 percent, while the non-Hispanic population contracted

R

Top Hispanic DMA 2011 and 2016R

DMA region - Designated Market Area: A term used by Nielsen to identiy an area o counties in which the home market television stations hold a dominance o total hours view

R

R

R RR



Hispanic culture in the U.S. isenduring and sustainable

The conventional wisdom and expectation still prevalent in many companiesmarketing strategies is that Hispanicswill gradually become part o the meltingpot. This paradigm in which immigrantsshed their culture and blend in hasbecome increasingly untenable. Severalunique circumstances combine to makeHispanics the largest population group toexhibit culture sustainability.Borderlesssocial networking, unprecedentedexchange o goods, technology as aacilitator or cultural exchange, retroacculturation, and new culture generationcombine to enable Hispanic culture in theU.S. to be sustainable. In other words, itmay evolve but will not go away.

To illustrate the dynamics o culturesustainability, a 2011 national survey

o Hispanic adults ound the ollowingtrends:6

37% o Hispanic adults who spokeEnglish mostly when they wereyoung children indicated that theylearned enough Spanish to becomebilingual at present age. These bilingualHispanics have high rates o wanting toread, watch and explore more Spanishlanguage media channels in the next

ve years.

Nine out o ten Hispanic parents andparents-to-be want their children to beable to speak Spanish, even though theyalso want them to become fuent inEnglish.

Hispanic adults say they want to bemore Latino (31 percent) or bicultural(60 percent) than they are now, theylike telling people rom other culturesabout Hispanics (75 percent), and theyspeak to their closest riend in Spanish(51 percent) or both English and Spanish

(24 percent).An analysis o Census data showedthat 72 percent o intermarried parents(one Hispanic, the other non-Hispanic)classied their children as Hispanicin 2011; compared to only 35 percentwho did so in 1991. This metric morethan doubled over the years refectingincreased culture sustainability linkedto pride, public acceptance, and retroacculturation.

Although the basic elements o culture

sustainability have been identied andsome qualitative ndings have beenreported, these quantitative measuresrepresent much needed eorts toempirically address and anticipate thedynamics o culture change in the U.S.

2011 U.S. Population by Ancestry (millions)

36

33

23

19

14

German Mexican Irish English Italian

Mexican Ancestry is bigger than Irish, Englishor Italian ancestry in the U.S.


6EthniFacts created the culture sustainability model as an alternative to assimilation and acculturation models and it incorporates a suite o behavioral andattitudinal scales, some incorporated into this paper with permission. Survey was conducted with a national panel sample o 4,000 Hispanic adults.



Only English

Mostly English

Only Spanish

Mostly Spanish

Spanish & English Equally

28%

28%4%

Language Usage among U.S. Hispanic Adults

25%

15%

Latino usage rates o television, smartphones, social networking, online videoand other orms o entertainmentmake Latinos one o todays mostengaged and dynamic targets. Thedistinctive combination o relativeyouth, community, culture and languagepreerence positions Hispanics to becomepioneers in new media trends and urtheraccelerate technology uptake.

Multiple platforms for television

and online viewingDue to sheer numbers, Hispanics havewielded signicant infuence on the medialandscape, shaping programming content,dedicated channels and vehicle oerings.

Hispanics access media rom everyplatorm available and oten lead thegeneral market as early adopters oemerging technologies. Approximately60 percent o Latino households own atleast one video- and Internet-enabledcell phone, compared to 43 percent o

the general market. In monthly time,

Hispanics spend 68 percent more timewatching video on the Internet and 20percent more time watching video ontheir mobile phones compared to non-Hispanic Whites.

Real-time TV viewing still ranks highwith the Latino market. Hispanics areless likely to use a DVR player than theaverage household, with only 31 percento Hispanic households owning a DVRplayer versus 41 percent o the general

market. Interestingly, Hispanic DVRhouseholds are two to three times morelikely to timeshit English than Spanishlanguage programming.

Language serves as a cultural constantthreading through many o the trendsdiscussed in this report. Nielsen UniverseEstimates show that 56 percent oHispanic adults speak primarily Spanishat home, compared to 40 percent whospeak primarily English. These dataunderscore the importance o usingSpanish to reach Latinos.

SECTION TWO:LATINOS ARE AT THE INTERSECTION OFLANGUAGE, TECHNOLOGY AND MEDIA

Time Spent Watching Video

Monthly Time Spent in Hours: Minutes

On Traditional TV

125:48 89

58

87

120

142:05

Watching Timeshifted TV

Watching Video on Internet

DVR Playback

Mobile Subscribers Watching Video on a Mobile Ph

25:16

11:52

6:50

22:01

3:52

3:37

4:20

6:29

Hispanic

non-Hispanic Wh

Ind

Hispanic Non-Hispanic White

Source: Nielsen universe estimates 2011-2012

Source: Nielsen Q3, 2011



Cultural infuences such as amily size andpresence o children, as well as languageaptitude determine TV viewing habits. Forexample, the co-viewing phenomenonis particularly prominent in the Latinocommunity with parents and childrensharing the viewing experience. In May

2011, Hispanics co-viewed 59 percent oall Spanish language broadcast prime timeprogramming. In the same period, thegeneral market co-viewed 48 percent oall English language broadcast prime timeprogramming.

Programming genre refects culturedierences as well. Latinos over-index incertain genres such as talk shows, newsdocumentaries, daytime dramas andsports news. In contrast, general marketviewers spend much more time on policedramas, situation comedies, sciencection and evening animation. Thisdierence is tied to Hispanics ocus onengagement in relevant inormation andculture-related programs more than onpure entertainment.

Sports represent another popular orm o

amily entertainment. Similar to the rest

o Americans, Hispanics enjoy sporting

events, although their interests straddle

both traditional U.S. and Latin American

sports. Football and tbol (soccer)

kick-o the list o popular sports among

Latino sports enthusiasts, each with

an avid ollowing. The 2010 World Cup

match between Argentina and Mexico

reached 7.9 million Hispanics ages 18 to

49, slightly higher than the 7.3 million

reach o the 2012 Super Bowl or the same

demographic.

Ftbol/FootballFans

Marketers will need to leverage

a mix o media and technology

options to engage the Latino

markets liestyle, culture and

language preerences.

Marketers can capitalize on

new technologies to reachthe young and growing Latino

market.

Media andTechnology

Insights



Technology adaption andadoption

Latinos may use the same technologyas the rest o the country, but adapt itdierently making it more o a culture-ocused tool. The ollowing discussion oInternet and mobile phone use addressessimilarities and dierences whencomparing Hispanics and the total market.

Approximately nine out o ten Hispanicshave access to the Internet, whenextended amily, work, school, and otherpublic places are included. Hispanics areless likely to have Internet access at homecompared to the U.S. average (62 percentand 76 percent, respectively).

Over the past year, Hispanics increasedhome broadband use by 14 percent, which

is more than double the 6 percent growtho broadband use in the general market.

Mobile Data Services Used by Hispanics in Past 30 Days

78%

68%79%

73%

57%

41%

58%56%

48%36%

48%

50%

34%19%

30%

27%

22%

11%20%

24%

21%9%

18%

16%

Text messaging/SMS

Mobile internet

Email

Picture downloads

Mobile Video

Full-track music

downloads

Hispanic

White

Black/African-American

Asian/Pacific Islander

Source: Nielsen Q4, 2011 Mobile Hispanic Insights Report

There is an emerging segment o techsavvy Hispanics who have leaproggedInternet home access altogether.Hispanics are three times more likely tohave Internet access via a mobile device,but not have Internet at home (9 percentvs 3 percent, respectively). Overall,

Hispanics are 28 percent more likely toown a smartphone than non-HispanicWhites, which is a signicant avenue oopportunity or marketers. Hispanicsoutpace all ethnic groups in mobile dataservice consumption including music andpicture downloads, and at a growing rate.Hispanic dependence on mobile devicesor Internet connectivity could explainwhy their average bill is 8 percent higherthan the general market.



Evidence rom many sourcesdemonstrates that Hispanic productconsumption is indeed unique in manyrespects, and well dierentiated incomparison to other U.S. consumers.

Hispanics do not necessarily mirrorconsumption patterns o all consumers

SECTION THREE:LATINOS HAVE DIFFERENTIATEDCONSUMPTION

Shopping Trips and Dollars per Trip

Total Retail Channels

Shopping Trips per Household

Dollars per Trip

Hispanic-SpanishPreferred

143

142

149

$52$51

$47

Hispanic-EnglishPreferred

White Non-Hispanic

150

145

140

$55

Hispanic-Spanish

Preferred

Hispanic-English

Preferred

White Non-Hispanic

$50

$45

$40

Source: Nielsen Homescan, Total U.S.; 52 weeks ending 12/25/2011

and thereore it is essential tounderstand their needs, wants, andshopping tendencies. Across all retailchannels, Hispanics tend to shopless oten, but spend more per trip,and are less likely to buy products atpromotional prices.

Fewer shopping trips amongHispanics make it critical orretailers to develop a strongconnection to become thedestination o choice.

Manuacturers need to collaboratewith retailers to develop mutuallybenecial strategies to capitalize

onlarger shopping baskets.

Shopper

Insights



Source: Nielsen Homescan 01/02/2011 12/31/2011

In many categories, Hispanics havedierent consumption growth rates thanNon-Hispanics. Beverage sales trendsshow powerul evidence o Hispanicconsumers acting as the acceleratorsor growing categories and the brakesor declining ones. This can be described

as the Hispanic Advantage that is oundin the projected Compounded AnnualGrowth Rates (CAGR) rom 2010 to 2015in eight o nine beverage categories,where Hispanic CAGR is equal to, and inmany cases higher than the CAGR o non-Hispanics. These projections mirror trends

Dried Vegetables and Grains 221

Hair Care 154

Shortening Oil 152

Baby Food 150Womens Fragrances 149

Grooming Aids 144

Disposable Diapers 144

Family Planning 142

Photographic Supplies 142

Baby Needs 137

Category Hispanic Dollar Index to Total Households

Top 10 Hispanic Product Categories

Beverage sales trendsshow powerul evidenceo Hispanic consumers

acting as the acceleratorsor growing categories

and the brakes ordeclining ones.

Purchase Index: Share of Hispanic Dollar Sales Divided by U.S. Household Dollar Share X 100

o the past several years and substantiateHispanics growing contribution to uture

beverage business.

Hispanics spend substantially more thanthe total market in the top ten Hispanicproduct use categories which includebaby products, hair care, and toiletries.

These gures show a small samplingo highly personal and meaningulcategories, where marketers benet romunderstanding whether Hispanic categoryconsumption diers rom the generalmarket.

Tea 3.4 9.5 2.4 7.1

Spirits/Wine 3.3 6.0 3.0 3.0

Coee 3.2 6.6 2.7 3.9

Beer 2.9 2.9 2.9 0.0

Non Carbonated Drinks 0.9 6.1 0.0 6.1

Carbonated Drinks 0.2 2.8 -0.1 2.9

Juice -0.7 2.3 -1.3 3.6

Bottled Water -2.6 -1.1 -2.9 1.8

Milk -7.0 -3.3 -7.6 4.3

Overall Hispanic Non-

Hispanic

Hispanic

Advantage*

Total SalesCompounded Annual Growth Rate Percentages

Projected 2010 to 2015

Source: 2010 Nielsen Beverage Landscape in the U.S.

*Hispanic Advantage = Hispanic - non-Hispanic Growth Rate

For instance in the hair care category,Latinas begin dying hair at an earlier agethan the total market, and purchase haircolor dye more requently. Hair color isseen as an important and inexpensivepath to sel-expression and beauty,which can bring light to potent consumer

insights or hair care marketers. In babycare, several companies have shitedhow they approach the Latino market,no longer relegating them to second tierconsideration, but making Latinos a ocaldriver o business growth.



Latino name brand loyalty factcheck

Total retail channel data or all CPGcategories shows that Hispanics are justas likely to buy name brands and privatelabel as the general market.

That said, Hispanic name brand loyaltyprevails in three hotbed CPG categorieswith signicant consumption - hair care,baby products, and health and beauty -where Latinos are more likely to buy namebrands than the total market. In hair care,Latino name brand buying is 43 percenthigher than the total market, while privatelabel buying levels are comparable.

Latinos spend 15 percent more on brandedbaby products and 10 percent more onprivate label making baby care a win-winor all types o products targeting thissegment. In health and beauty, Latinosspend 10 percent more on name brandsand 9 percent less on private label versus

total market. In these very meaningulcategories, Latinos say they buy storebrands due to the economy, and notnecessarily because o preerence.

In hair care, Latino name brand buying is 43percent higher than the total market, whileprivate label buying levels are comparable.

Hair care $55 $39 143 $7 $7 99

Baby products $26 $23 115 $6 $6 110

Health and beauty $326 $297 110 $69 $75 91

Hispanic Total Hispanic to

Total Index

Hispanic Total Hispanic to

Total Index

Name Brand vs. Private Label

Name Brand Private Label

Source: Nielsen Homescan 01/02/2011 12/31/2011

Ad Spending

Companies spend their dollars wherethey see the most potential and todaythey are spending $5.7 billion on Spanish

media, the majority o which is spenton Spanish television. Spending inalmost all Spanish advertising mediumsincreased rom 2010 to 2011, urtherevidence that marketers will continueto invest in this growing marketplaceas the economy recovers. While notquantiable, there is also some Hispanic

Annual Dollars per Buying Household

media spending allocated to Englishlanguage initiatives by advertisersmindul o English speaking Latinos.

The top ten list o Spanish advertisers

is made up o leaders who have madea serious commitment to this market.Companies who were on the top ten listin both 2010 and 2011 were Procter &Gamble, McDonalds, AT&T, Verizon,Toyota, General Mills and GeneralMotors. McDonalds says they lead withethnic insights, refective o the act

that 40 percent o their revenue comesrom ethnic consumers. McDonaldsis the ourth largest Spanish languageadvertiser spending $131 million in thisarena. Procter & Gamble has also stated

the importance o using ethnic insightsto lead total market campaigns in certaincategories. These marketers, and manyothers, are intensiying and ne-tuningtheir Latino strategies to stay competitivein the changing marketplace.



Language infuences advertisings ability to connect

with the Hispanic audience on a number o levels,rom likeability to recall. Four key learnings aboutlanguage and the Latino market can serve asguidelines or advertisers:

1. Hispanics remember English language commercialsas well as the general population.

2. The same commercial shown in Spanish bumps upad recall by as much as 30 percent.

3. Latinos like ads 51 percent more i viewed inSpanish rather than English.

4. Hiring Spanish-speaking talent to deliver the scriptresonates 30 percent better with Latinos.

Advertisingfor Impact

PROCTER & GAMBLE 225.6 13% 13% 73% 1% 0%

BANCORP INC 193.1 0% 0% 98% 0% 2%

DISH NETWORK 160 1% 8% 89% 0% 2%

MCDONALDS 131.2 1% 4% 72% 10% 13%

AT&T 130.5 0% 9% 42% 7% 42%

VERIZON 125.6 0% 10% 67% 4% 18%

TOYOTA 100.5 1% 8% 77% 4% 10%

GENERAL MILLS 94.8 0% 5% 93% 1% 1%

KRAFT FOODS 91.8 3% 15% 77% 4% 2%

GENERAL MOTORS 90.8 3% 9% 71% 8% 8%

TOP 10 1,343.8 3% 8% 76% 3% 9%

Parent Company Total $$$(million)

NationalMagazine %

of Total

Spanish

Language Cable

TV % of Total

Spanish Language

Network TV % of

TotalSpot Radio %

of Total

Spot TV %

of Total

Source: Nielsen Ad*Views, Standard Calendar 1.1.11-12.31.11, Includes Spanish Language Distributors Only, Excludes Promos/PSAs and Direct Response

Source: Nielsen Ad*Views, 2011 Calendar Year

Source: Nielsen TV Brand Eect

Spanish TV Network 3,268,707 13%

Spanish Spot TV 1,153,639 1%

Spanish Cable TV 452,207 21%

Spot Radio 664,375 1%

National Magazine 136,305 26%

Local Newspaper 61,225 -4%

Total 5,736,458 11%

Media 2011(000)

% Growth2010 to 2011

Overall Hispanic Ad Spend Across Media

Ad Spend by Top 10 Spanish Language Advertisers



Conclusion

Hispanics already account or an important share o consumerexpenditures and given their youth, educational advances,and increasing spending capacity, Hispanics are ast becomingpreeminent drivers o growth and likely trend setters in themarketplace. Marketers will need to understand the what,where, how and why o their role in tomorrows consumptionspace.

In orecasts o uture consumption growth, the Hispanicshare is signicantly greater than that o non-Hispanics. Theevidence or the distinctiveness and sustainability o Hispanicculture is convincing and implies a uture American culturewith a strong Hispanic favor.

Finally, it is instructive to recognize that unique and useulvehicles or reaching Hispanics exist around language, mediaconsumption, and technology adoption. Given the total

markets dependence on Hispanics or uture growth, tappingHispanic preerences and purchasing behaviors is essential orany strategy or marketing plan to be successul.

This report provides a general oundation or building eectivestrategies that will increasingly be the primary driverso growth in virtually all product and service categories.Understanding the distinctive patterns o demographics,culture, and consumption can lead the way to a sizeable andgrowing impact on total market share.



About the Hispanic/Latino Advisory Council:

The Hispanic/Latino Advisory Council was assembled in orderto assist our eorts to recruit, measure, and accurately reporton U.S. Latino households. The Council consists o industry,community and business leaders rom around the country. Theyadvise us as we train our bilingual sample recruiters and translat

materials or Latino TV households.

The State of Hispanic Consumer:Hispanic MarketImperative Report is an initiative spearheaded by Nielsenand the Hispanic/Latino Advisory Council.

Jenny Alonzo Co-Chair o HLAC

Entrepreneur, Media Consultant

Ernest Bromley Co-Chair o HLACChie Executive Ocer, Bromley Communications

Dr. Juan Andrade, PhD.President and Executive Director, United States Hispanic Leadership Institute

Guarione M. DiazPresident and CEO, Cuban American National Council

Dr. Henry Flores, PhD.

Proessor o Political Science and Dean o the Graduate School, St. Marys University

Dr. David Hayes-Bautista, PhD.Center or the Study o Latino Health & Culture, UCLA School o Medicine

Ral Lomel-AzoubelExecutive Chairman, SABEResPODER

Lillian Rodrguez LpezDirector, Latin Aairs, The Cola-Cola Company

Lus Miranda, Jr.

President, MirRam Group

Catherine Pino

Co-Founder & Principal, D&P Creative

Suzanna Valdez

Vice President o Advancement, The Arsht Center Foundation

Adrienne Pulido

EthniFacts

Dr. Carlos Arce, PhD.

EthniFacts



About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global inormation and measurementcompany with leading market positions in marketing and consumer inormation,television and other media measurement, online intelligence, mobile measurement,trade shows and related properties. Nielsen has a presence in approximately 100countries, with headquarters in New York, USA and Diemen, the Netherlands. Formore inormation, visit www.nielsen.com.

In more than 100 countries around the world, Nielsen provides clients withthe most complete understanding o what consumers watch and buy.


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State of the Hispanic Consumer