The American Media Mom Breakthrough Innovation Boomers Update Cultivating Multicultural Success

1. The American Media Mom Breakthrough Innovation Boomers Update Cultivating Multicultural Success UpcomingWebinars @nielsenwire #diverseintelligence

2. The State of the Hispanic Consumer:The Hispanic Market Imperative Mónica Gil, SVP, Public Affairs and Government Relations, Nielsen Sabrina Crow, SVP/Managing Director, Global Client Business Partner for Univision, Nielsen @nielsenwire #diverseintelligence

3. Today’s presenters Mónica Gil, SVP Public Affairs and Government Relations, Nielsen Sabrina Crow, SVP/Managing Director, Global Client Business Partner for Univision, Nielsen

4. Nielsen Diverse Intelligence Insight series • In 2011, Nielsen launched a diverse intelligence insight series to help marketers better understand the media and purchasing behaviors of key consumer segments.

5. First things first Latinos vs. Hispanics? 14% 50% 35% Source: Pew Research

6. Poll question Which best describes your primary area of responsibility? Marketing Sales Research General management

7. Latinos Are Vital to America’s Future @nielsenwire #diverseintelligence

8. The Hispanic market offers unique growth prospects within our borders • The per-capita income of U.S. Hispanics is higher than any one of the highly coveted BRIC countries (Brazil, Russia, India, China). Goldman Sachs Global Economics, Commodities & Strategy Research: BRICS Monthly Issue 11/06, June 24, 2011. Hispanic per capita income is from Census in 2009 constant dollars. Hispanic per capita income is second to Russia, but above Brazil, China and India. Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

9. Hispanic population growth projected to outpace all ethnic groups over the next 40 years * Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islanders Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

10. Hispanics continue to experience dynamic growth vs. the general population 1 3 1 Every hour in the U.S. Latinos are born Source: U.S. Census Bureau Population Projections

11. Not just the coasts: Hispanics are across the nation Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

12. Can you afford to miss out? The growing purchasing power of the Hispanic consumer 2015 $1 Trillion buying power 2010 52 million Hispanics in the U.S. 50% growth in purchasing power by 2015 $1.5 Trillion buying power Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

13. Poll question What is your company’s annual budget for U.S. Hispanic marketing? Less than $1 million Between $1 million and $10 million Over $10 million Do not know/None

14. Higher income Latino households showing significant growth Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

15. Younger demographics provide focused marketing opportunities • Median age: • Hispanic = 28 • U.S. general = 37 Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

16. Latinos fuel growth in key sectors Residential buying Food Retail Education Financial Transportation Entertainment and media industries Source: IBIS World, producer of Industry Research Reports

17. Further evidence of culture sustainability 90% 31% Hispanic Adults say they want to be MORE LATINO Hispanic parents want their children to be BILINGUAL 72% 60% Hispanic adults say they want to be BICULTURAL In 2011, intermarried couples classified their children as HISPANIC vs. 35% in 1991

18. Role of language among the Latinos English dominant Hispanic Adults now wanting to read, watch and explore more Spanishmedia The Emergence of Bilinguals Source: Nielsen Universe estimates 2011=2012; Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

19. Poll question Which language is used by your company to market to U.S. Hispanics? Spanish English Both Spanish and English None/Do not know

20. Takeaways Latinos are fundamental component to business success 1 Marketers can’t ignore cultural foundations 2 Importance of new sustainability vs. old melting pot concept 3

21. What Hispanics Watch @nielsenwire #diverseintelligence

22. Following the video: Hispanics show higher viewership on the Internet and mobile Monthly Time Spent in Hours:Minutes (Quarter 3 2011) 6:50 22:01 6:29 4:20 125:48 Watching Timeshifted TV Watching Video on Internet DVR Playback Mobile Subscribers Watching Video on a Mobile Phone On Traditional TV 11:52 25:16 3:52 3:37 142:05 Hispanic Non-Hispanic White Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

23. Factors driving co-viewing phenomenon among Hispanic viewers HigherHispanic co-viewing than general market + + = Family size Presence of children in household Language aptitude *May 2011 Source: Nielsen

24. Technology usage among Hispanics: Tracking well among all non-white segments Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

25. Hispanics are immersed in and engaged with ‘online’ and ‘emerging platform’ 60% 68% spend more time watching video on the Internet vs. non-Hispanic whites. of Latino households own at least one video or Internet-enabled cell phone vs. 43% of the general market. Source: Nielsen, Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

26. Latinos exhibit significant—and substantial—growth in social media usage Usage rates of TV+ smart phones + social networking + online video + other entertainment = one of most engaged and dynamic targets Source: Nielsen

27. Takeaways Leverage a mix of media and technology options to engage the Latino market’s lifestyle, culture and language preferences. 1 Capitalize on new technologies to reach the young and growing Latino market 2

28. What Hispanics Buy @nielsenwire #diverseintelligence

29. Distinctly different ‘buy’ behaviors displayed by Hispanics Hispanics product consumption is indeed unique in many respects and well differentiated in comparison to U.S. consumers overall Latinos make fewer trips to the store than average* 143vs.149 But Latinos spend more per trip than average* $52 vs. $47 * average= White Non-Hispanic Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

30. Hispanics accelerating beverage trends Category Example • Beverage sales trends show powerful evidence of Hispanic consumers acting as: • the accelerators for growingcategories • the brakes for declining ones Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

31. What’s in the basket? • Private Label vs. Branded • For Hispanics, brand loyalty prevails in three categories ALL CPG: • Hair care • Baby products • Health & Beauty Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

32. Takeaways 1 If you haven’t already, the time to invest is NOW! Collaborate! Manufacturers and retailers must work together to capture sales 2

33. Poll question Which is the primary media platform used by your company to market to U.S. Hispanics? TV Online Mobile Print Radio In-store None/Other

34. Market-driving Examples @nielsenwire #diverseintelligence

35. Marketing strategies should reflect cultural cornerstones… The same commercial shown in Spanish bumps up ad recall by as much as 30% Hispanics remember English language commercials as well as the general population Hiring Spanish-speaking talent to deliver the script resonates30%betterwith Latinos Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

36. H-E-B meets w/ customers, asks “what would you love to see?” and delivers! “They wanted more things that remind them of home.” “The $7 million remodeling project — which added 6,000 square feet and about 40 employees to the store — includes a masa factory that grinds corn daily, a tortilleria that will turn that masa into tortillas, a carniceria (Latino-focused butcher shop) and a deli with fresh salsas and cremas.” North Lamar Boulevard and Rundberg Lane, North Austin, Texas Source: H-E-B & Alberto Martinez /Austin American-Statesman (photo)

37. Winn-Dixie’s Miami store transforms—bilingual décor, made-to-order Cuban café & more! Source: Winn-Dixie

38. Pathmark catering to demographics of the neighborhood Progressive Grocer reported on Mar. 16, 2012— “Our remodeled Weehawken store…offers shoppers products that match their needs and cultural preferences,” said Sam Martin, president and CEO of Montvale, N.J.-based A&P. “With more diverse offerings and a friendlier, more modern atmosphere, this renovation is a prime example of our goal to enhance our customers’ shopping experience.” Source: Pathmark, Progressive Grocer & NJ.com

39. “Hormel Foods introduces MegaMex Foods, where you can find all the flavors of Mexico” Source: http://www.hormelfoods.com/brands/MegaMex/default.aspx

40. Macy's partners with Latina Magazine & the Hispanic Scholarship Fund Source: Macy’s

41. Manufacturer Hispanic websites & apps Source: Company websites

42. General Mills’ Spanish language app for Apple iPad Instant access to more than 900 Latin-inspired recipes, in 12 different categories Source: Company website

43. P&G’s Gain expanding to reach Hispanics Photo: P&G Gain

44. Ethnic diversity impacting general population Source: MultiAd Kwikee

45. How do you improve your marketing success? Adjust and refine your marketing mix Recognize cultural components Improve your organization’s readiness

46. Q&A Thank you for attending • If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. • If you are not a current Nielsen client, please contact us at: Phone: 800-553-3727 Email: CPGSolutions@nielsen.com OR if you have any questions regarding the content of this webinar, you can also contact: Monica Gil, email:monica.gil@nielsen.com Sabrina Crow, email:sabrina.crow@nielsen.com For more insights, go to Nielsen Wire http://blog.nielsen.com/nielsenwire/ @nielsenwire #diverseintelligence