Opportunities in

Digital Media US Hispanics

The Latin Market Right at Home
GOAP, May 10thGroup Cisneros Interactive 2012
Victor Kong, Rafael Garcia, Jorge Rincon, Andres Arias

US Hispanics :: The Latin Market Right at Home

Agenda

Cisneros Group Pioneer in USH

USH Market Today: Huge and Growing

Cisneros Group USH Businesses

US Hispanics :: The Latin Market Right at Home

1990: Buying Univision for $505M was a big bet

Situation in 1990 Hispanic Population
1980 Census: o 14.6M Hispanics
o (6.4% of total population)

USH TV Market
TV Advertising in spanish language media was 1% of

total
Univision was owned by Hallmark and losing hundreds of millions every year. Telemundo was also losing money.

Undocumented immigrants were not included in the Census

US Hispanics :: The Latin Market Right at Home

Univision: A success story

Venevision, Televisa, and Perenchio acquire Univision for $505M

Launch of Telefutura

Founders sell Univision for $13.7B

2011 Financials: Revenue: $2.3B OIBDA: $934M

1992

1996
Univision IPO

2002

2003

2007

2010

2011

Univision acquires Hispanic Broadcasting Corp to form Univision Radio

#1 Network 18-34 (English and Spanish) with MexicoEcuador game and end of a novela (Sep)

Last year, P&G spent 13% of its advertising on Spanish language cable, Kraft Foods 15% and GM 9%
Source: Nielsen, 2012; Univision website

US Hispanics :: The Latin Market Right at Home

Eva Luna: Beating ABC, CBS, NBC, FOX

US Hispanics :: The Latin Market Right at Home

Agenda

Cisneros Group Pioneer in USH

USH Market Today: Huge and Growing

Cisneros Group USH Businesses

US Hispanics :: The Latin Market Right at Home

Hispanic growth has been espectacular

56% of all the population growth from 2000 to 2010 due to Hispanics
USH Population and Penetration
Millions
24.4%

U.S. Hispanic market buying power would make it one of the top 20 economies in the world
US Hispanic Buying Power
USD Billions

USH Penetration
$1,600 $1,400 $1,500

16.3% 12.5% 4.7%

$1,200 $1,000 $800 $600 $504 $222 $686

$992

6.4%

9.0%

$400
$200 $-

1990

2000

2004

2009

2015

Source: US Census; Selig Center

US Hispanics :: The Latin Market Right at Home

A young(er), vibrant Community

The median age of the Latino population is 28 years old, nearly ten years younger than the total market median age of 37

88%
of the population growth among A1834 will come from Hispanics from 20102020

years

US Hispanics :: The Latin Market Right at Home

Unified by culture and language but also distinct

Divided almost equally by language preference
Language Usage among USH Adults

Hispanics of Mexican origin represent the majority

USH by Country of Origin
8% 5% 8% 3% 3% 9%

Mexican
Puerto Rican Cuban

64%

Dominican Central American

South American
Other Hispanic

Source: Nielsen universe estimates 2011-2011; US Census 2006

US Hispanics :: The Latin Market Right at Home

And the market is changing

By 2020, 70% of Hispanics will be born in the USA
Implications Share of USH Population by Generation
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 First Generation 2010 Second Generation 2020 Third Generation 40% 38% 30% 28% 32% 36% 32% 30% 34%

English will be the preferred language for younger generations Better off economically than their parents 2nd generation continues to have strong ties to their parents countries

Source: Pew Hispanic Center, The Rise of the Second Generation, 2003 and MRM Worldwide, 2008
10

US Hispanics :: The Latin Market Right at Home

Overindexing on mobile
US Hispanics HHs are more likely to have a smart phone
Texting, talking and watching videos and TV shows are all more common activities among Hispanic adults

Video or Internet enabled Mobile Device Ownership

60%
US Hispanics

43%
General Market

Nielsen, The State of the Hispanic Consumer, Q2 2012 - eMarketer Jan 3, 2011

US Hispanics :: The Latin Market Right at Home

And overindexing in video

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

Time Spent Watching Video

Monthly Time Spent in Hours: Minutes

Watching Video on Internet

6:29

3:52

Mobile Subscribers Watching Video on a Mobile Phone

4:20
Hispanic

3:37
Non-Hispanic White

Source: Nielsen, Q3, 2011

US Hispanics :: The Latin Market Right at Home

Agenda

Cisneros Group Pioneer in USH

USH Market Today: Huge and Growing

Cisneros Group USH Businesses

US Hispanics :: The Latin Market Right at Home

Television & Music

Production
Venevision Studios
Largest studios in the US for USH programming (both Spanish and English) Formats: Drama Telenovelas, Varieties, Talk shows 3,000 hours of programming for Univision

Pay TV
SomosTV
Semillitas: PreK, educational channel VeneMovies: Movie channel

Distribution
VeneFilms
+600 titles in Spanish

Music
Vene/Siente Music

Largest independent music label in the US Hispanic market with Distribution to 30 artists covering all Pay TV channels, major genres Free TV, Home Video, Internet, In 2011, 25 and VOD nominations and awards in Latin Grammys, Grammys, Premios Lo Nuestro and Latin Billboard Awards

US Hispanics :: The Latin Market Right at Home

Digital
Leading USH Premium Mobile Ad Network (230M monthly impressions) Mobile studio: apps and moblie web assets for clients RTB Platform connected to major ad exchanges Display and Richmedia with multiple targeting capabilities Mobile-first social soccer game

Distribution of our content on major US Hispanic digital platforms Launching a Digital Studio to create two YouTube channels for USH o Beauty/Fashion o Teen

Opportunities in

Digital Media
US Hispanics
The Latin Market Right at Home @cisnerosadriana
Cisneros Interactive Group Victor Kong, Rafael Garcia, Jorge Rincon, Andres Arias
GOAP, May 10th 2012