SECOND QUARTER 2010 | YEAR 8 | NUMBER 38

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PortadaT HE L EADING S OURCE ON L ATIN M ARKETING AND M EDIA SAVE THE DATES FOR 2010 PORTADA CONFERENCES! PAY TV: A BIG REACHING PAN LATIN AUDIENCES MARKETING MACHINE 2010 Panregional Advertising and Media Summit Miami, June 3, 2010 Paid subscription TV for is a big business. In (more info on page 27) fact, advertising/subscription marketing budgets of Pay TV Register and take advantage of early bird pricing here: companies are a major force in the Hispanic advertising mar- http://www.portada-online.com/ conference/registration.aspx?cid=9 ket. DirecTV Group was the 18th largest advertiser in the Hispanic market in 2008, with a measured advertising CONNECTING NATIONAL BRANDS expenditure of $78.3 million. In addition, it was the leading TO LOCAL AUDIENCES advertiser in the Spanish-language spot TV category. Miami Fourth Annual Hispanic Digital and Print Media Conference based DMG Solutions who buys direct response media for New York City, September 30, 2010 DirecTVMás lures potential subscribers through direct res- (more info on page 2) ponse advertising receiving many thousand of phone calls Register and take advantage of early bird pricing here: per month. http://www.portada-online.com/conference/registration.aspx?cid=8 There are more than a dozen major media and telecom- munications companies vying for the Hispanic consumer, OPT-IN for free to Portada Magazine and e-letters here: they range from satellite TV providers like DirecTV and http://www.portada-online.com/register.aspx?sid=1 Call 1-800-397-53-22 for Conference registration or questions! (continued on page 14) YOUR GUIDE BEST PRACTICES: Corporate Websites TO THE NEW How to Convert Website PORTADA-ONLINE.COM Visitors into Buyers It all starts with a state of the art website. To be ready to advertise and promote your product, your site has to be top notch. Website design and website usability are crucial when it comes to convert Latin Internet users into buyers. This article looks at best practices on how to design corporate websites and promote community aspects and brand loyalty among Hispanics and Latin American consumers. Converse, a shoe manufacturer, recently implemented a below the line marketing campaign targeting 35-40 million young Latin American adults online. The campaign was designed to turn Converse's country-specific websites into social networking destina- tions for the young and connected. It allowed Converse fans to customize their shoes.

Check out your guide to the week on (continued on page 22) www.portada-online.com on Page 6 1

CONTENTS Second Quarter 2010, Year 8, Number 38

FEATURES 4 Our View The imperative to create employment in Hispanic Marketing and Media. 1 Do Hispanics Want Their Pay TV? The Hispanic Pay TV subscriber base is growing a What's Hot and Cold in Latin Marketing, Media lot, but are advertisers paying notice? and Business

Best Practices: Corporate Websites 6 Your Guide to the New Portada-online.com Website content and design are crucial to convert New Features and the Guide to your Week on Latino prospects into buyers. Portada-online.com 18 Does Pay TV work to reach the Latin American 7 Your View Middle Class? The gist of “Sounding Off” columns by Liliana Gil, Managing Partner of Acento Group, Joel Bary, 29 Will 2010 Finally be the Year of Hispanic Mobile CEO of Latinmedios, Marcus Grimm, Marketing Advertising? Director at NxtBook Media, Marc Baste, CEO of Novapress and Lucia Ballas-Traynor, Publisher of 31 Food & Thought People en Español. What books and restaurants do Latin Advertising and Media Shakers & Movers like? Find out here... 8 Latin Marketing and Media IQ Checkup! Has it improved since you filled out our last cross- word puzzle? Find out here! 9 News and Trends Texicans and how an agency markets to them. 13 Focus On: Maya Entertainment's Jeff Valdez on investment opportunities. 25 News and Trends Panregional Analysis: Gadsby's Appointment; Is there an Increasing Relationship between Latam and U.S. Hispanic? 33 Statistics and Charts in Context CONTENT FEATURED ON: National Advertising Campaigns Targeting Hispanics, Media Preference of Spanish-dominant www.portada-online.com Hispanics, Hispanic Publications Spared of General Market Newspaper Circulation Malaise.

> Marcelo Salup on Best Practices in DR Advertising > Hispanic Creative vs. General Market Creative ...and much more! > What to Expect and What not from 2010 (2 part series) > What is Prisa's New Strategy after Cutting Back its TV Assets? > Hispanic Publications spared of General Market Newspaper Circulation Malaise > Telecom Leads Online Ad-Categories in 2009 > The Latin American Pay TV Market, Subscriber Data > Hispanic Magazines: 2009 a Challenging Year to Say the Least FOLLOW US ON: www..com/portada > The latest intelligence about new initiatives, clients and http://www.linkedin.com/companies/683683/Portada?trk=pp_icon agencies to help you know what other corporations are doing http://twitter.com/portada_online and/or to help you sell advertising and sponsorships

3 Our View R

PUBLISHER Marcos Baer EDITORIAL - RESEARCH “Trabajo” in Latin Marketing Agustin Wydler, Director Content Management/Research and Media Now! Ariana Marcuzzi, Senior Researcher/Writer Pablo Carrasco, Senior The 2008 recession, of which we are now slowly emerging out of, Researcher/Writer accentuated the structural problems facing the media and advertising TRANSLATION industries. These structural problems are mostly related to the economic Candice Carmel challenges that the emergence of digital media present to off-line compa- nies. 0ff-line companies are still, by far, the largest employers in the Latin CORRESPONDENTS Luis Palacio advertising and media sector. Juan Manuel Gonzalez SALES AND MARKETING During the recession, the workforce of many of these companies was Nicolás Miranda, Online Sales Manager reduced by more than 40%. Many positions were made redundant and 1-800-397 53 22 others have been outsourced to Latin American countries. Latin American Bob Oliva, Senior Sales and Business media and advertising professionals provide a high quality of labor at a Development Representative reasonable cost. In fact, we at Portada have a part of our team in OFFICE MANAGER Argentina. Major media properties and advertising agencies have out- Jennifer Frantz sourced part of their back office work to Mexico. Other advertising and INFORMATION TECHNOLOGY media companies active in the U.S. have substantial operations in Todd Sarouhan Colombia, Mexico, Brazil and Central America. Most of the online ad -net- DESIGN works operating in the Hispanic and Latin American markets have the bulk Dafne Kleiman www.dafnedesign.com.ar of their staffs in .

Audit by However, job losses are not only due to macroeconomic, structural and cost (outsourcing) factors that are mostly beyond our control. They are also the result of irresponsible and greedy financial leveraging of compa- Copyright: Portada®2010 nies by the investment community during the boom years. McClatchy and No part of Portada® may be copied, reproduced or Univision (look at the 14:1 debt/equity ratio with which Broadcasting Media broadcast in any form without prior permission. Comments by sources cited in Portada® have been Partners invested in Univision and at the huge debt McClatchy took to buy directly obtained from them, unless its is explicitly noted otherwise. Portada® is not Knight Ridder!) come to mind as prime examples of this practice. Hard affiliated with any other publication, media group, working advertising and media professionals had to pay for these financial advertising agency or any other institution. Portada® is published by Contenido LLC in New excesses by losing their jobs. York City. Portada® is an integrated media com- pany that informs and instructs its audience via audited print (4 x a year) and online vehicles (web- A reform of the legal and tax system is needed with job creation and site, e-newsletters, webinars) and conferences. A one year subscription of Portada® in Print and employment as its main objective. Job creation should be at the center of Digital Magazine format costs US $199, including the legal and fiscal framework regulating companies, including those that access to the Portada® website, (www.portada- online.com) with round-the-clock-breaking news operate in the Latin advertising, marketing and media space. and its articles archive. Single issues of Portada® cost US $30. To subscribe please send a check payable to Portada, Park West Station, P.O.B The Obama administration is providing tax incentives to small busines- 20526, NY, NY 10025, USA. For payment by wire transfer send funds to Citibank N.A. 399 Park ses that hire new employees. Another idea we would like to float here is Avenue, NY, NY 10022, USA Account name: Portada, Account # 9948580987 22072064 Routing that interest payments on debt should only be tax deductible as long as the # 021000089. debt is used to invest in expansion through product development and For reprints information and prices please contact [email protected]. employment, not just in acquiring existing assets. Please send address changes to Portada, Park West Station, P.O.Box 20526, NY, NY 10025, USA. We are all for the “creative destruction” intrinsic to the capitalistic pro- MISSION Portada®’s mandate is to help Executives in cess, but against the “financial destruction” origined by irresponsible len- Business and Media understand and reach ding practices and financial leveraging of companies. Hispanic and Latin American consumers. Portada strives to put its audience ahead of the curve so it can navigate change in the digital age. 4 Our View

What's Hot and Cold in Latin Marketing, Media and Business

CALIENTE FRÍO

> Census Campaign > Anonimous comments to articles on Portada-online.com

> The “New” Ecology of News > Hispanic Advertising Agencies that do not answer phone calls from media executives > Mundial de Fútbol 2010: Viva Mexico! > PR executives asking media properties for media kits and > Content that targets Hispanics with respect (not “cheap” Telenovelas) editorial calendars to pitch stories

PORTADA WEBINARS

DIGITAL MAGAZINES: STRATEGIES FOR TODAY AND TOMORROW

April 22, 2010 2:00 pm ET, 11:00 am PT, 1:00 pm CST, Mexico City and Bogota, 4:00 pm in Sao Paulo 4:00 pm in Buenos Aires, 8:00 pm in Madrid

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NEWS ABOUT US

BOB OLIVA, New Senior Representative in Miami

We are very happy to announce the addition of Bob Oliva to the Portada family as our Senior Sales and Business Development Representative in Miami. Bob will develop new business for Portada in the very important Miami market. “We are honored to count with such a heavy weight like Bob to develop our properties, which include our Annual Panregional Advertising and Media Summit which takes place in Miami this year on June 3rd”, said Marcos Baer, publisher of Portada. The addition of Oliva to Portada's team is the first of a series of ambitious steps Portada is going to undertake in 2010. Stay tuned!

5 YOUR GUIDE TO THE NEW PORTADA-ONLINE.COM We recently introduced a new website to provide You the best content available about the Latin Advertising, Media and Content Markets. These are its main features:

IMPROVED NAVIGATION > WEDNESDAY You will be able to find Portada Regular Features by clicking on each feature on the left navigation bar (below of Special Interest button). In addition, the expandable Channels button, also on the left navigation bar, displays thousands of articles categorized in Hispanic centric con- tent, Finance current and past issues as well as channels covering An important topic facing the Hispanic advertising and media different media types. industry and what it means for marketers targeting Hispanics. MORE INTERACTIVE TOOLS Interact with your peers and give Portada's editorial team feedback through the following interactive tools: Comment on Article, Share Articles through e-mail, Linkedin, Twitter and Facebook and RSS Fees. (Alternating with Analysis) Portada's Interview with a leading player who sets and/or spots trends in our dynamic industry (starting in April).

> THURSDAY IN-DEPTH SECTION Six feature articles in this section, provide an in-depth look at spe- cific aspects of the Latin Marketing, Advertising, Content and Media industries. New research and statistics on how to reach Hispanic consumers, THE WEEK AT PORTADA-ONLINE.COM market intelligence, advertiser rankings, media rankings and more. On a daily basis, You will get breaking news and commentary. In addition, the following regular features will be offered each week:

> MONDAY Digital technologies are making the Spanish-speaking world (U.S. Hispanic, Latin America, and Spain) smaller. An in-depth look at how marketers are using the digital medium nationally and inter- nationally to attract Spanish-speakers worldwide.

New leads and intelligence about activity of Ad Agencies and > FRIDAY National Advertisers. Market intelligence to help agencies and media executives to reach clients.

Thought leadership. A platform for industry experts to explain cer- tain trends and innovations and their value to the marketplace. Personnel changes. What positions are changing, which new ones are being created? THREE TYPES OF ACCESS Portada provides three types of online access (Starting in April)

> TUESDAY 1. Free content available on portada-online.com 2. Content that requires registration Registered users can get any Portada's e-newsletters, the quar- terly magazine, and/or participate in polls and provide com- ments to articles. Registering on Portada-online.com does not Read how and why top marketers reach the Hispanic consumer. grant free access to premium content. The latest trends and qualitative and quantitative insights in tradi- tional and below the line marketing. Case studies. 3. Premium (paid) content Includes: BUYER/INTERVIEW (alternating with Best Practices). > Premium individual articles (available for individual purchase An interview with an important Marketer or Buyer at an Agency/ or through a subscription) Media Placement firm. > Databases of Corporate Marketers/Media Buyers targeting U.S. Hispanic and/or Latin American Consumers PORTADA QUICK HITS > Reports A review of interesting and/or important articles/content from around > Conference tickets. the web and what we have to say about them. (Starting next Tuesday). If you have questions and/or to order premium content, please call 1-800-397-5322. 6 Your View

LILIANA GIL, Managing Partner of The Sounding Off column, published on www.portada-onli- Acento Group ne.com, provides a platform to experts to explain ideas, trends and innovations and their value to the marketplace. “Gaining Consensus to Prepare Here is a summary of what recent columnists had to say and for the Census” some of our readers comments.

“Are you a proactive leader? If the Hispanic and multicul- tural consumer is not yet a priority in your 2010 business plan, you may be running the risk of being asleep at the JOEL BARY, CEO of Latinmedios wheel.”

“Advertisers are not focusing on the Objectives, Digitally Speaking...”

MARCUS GRIMM, Marketing “The main issue? Few companies are doing it right... Director NxtBook Media Communication planners are creating strategies without the digital media knowledge and then, sending guidelines “The Three Rules of Digital and conclusions to the media planners who are not focu- Magazines for the Latin sing on the objectives, but on the price of the media and Marketplace” without taken into account the final goals of the Advertiser's campaign.” “Understanding the difference between your digital magazine and website is the first step in helping to posi- tion these two products in your portfolio. This is particu- Readers Comments: larly important when it comes to the Latin market: During the same period that all Nxtbooks had an engagement “For us in global agencies, 360 work contemplates digital as a channel time of seven minutes, Nxtbooks produced for the of communication that is fragmented across multiple platforms to deli- Hispanic market had an engagement time of eight minutes ver your message. The message can be brand, but a campaign must and forty three seconds. In addition, visitors inside these deliver across all channels, so to be so obvious in writing this article books read an average of twenty percent more pages.” just shows how tough the situation must be for a small agency that only does digital.”

Jan Hogblood, Advertising Professional

LUCIA BALLAS-TRAYNOR, Publisher MARC BASTE, CEO of Novapress People en Español Media Publisher of El Latino newspaper in “Beauty and Style are at the Madrid Core of Latina's Identity”

“A Hispanic market in Spain?” “As beauty marketers know, Latina's issues and priorities around hair, skin and makeup are different. As an exam- “Given the current economic situation and the challenges ple, our coarser hair texture leads to specific issues and of the media industry worldwide, the Latino market in needs that revolve around styling and manageabilty.” Spain has much to learn from the U.S. Hispanic market, and probably something to contribute, too.”

7 Crossword Puzzle

Check out your Latin Marketing and Media IQ!

DOWN 1. Name and surname of the ad executive who authored a recent “Sounding Off Column” for Portada 2. Did a lot of recall advertising 3. Rejection word 4. Clear 5. Cold war grp. 7. Panregional magazine and website (2 words) 8. Former lover 9. Threesome 13. Hispanic advertising agency based in San Francisco 14. Company symbols Crossword by Myles Mellor 17. Cause 23. Rolls Royce, abbr. ACROSS 32. Grape in Spanish and also leads 24. Descend quickly 1. Just won the Marshalls Hispanic account Univision 25. Pigment 6. Regional Magazine in Chicago 34. Word that comes before president 26. Toyota US Hispanic agency 10. Law in Spanish and squad 28. Host of the Soccer World Cup: 11. Stock symbol of Mexican Media 35. Singer, Ronstadt South ___ Company 36. Money to the bottom line 31. British princess 12. Wrote El Aleph 38. Blackberry maker 33. Branch 15. El Prado display 39. Disco or Salsa? 34. Hispanic advertising agency based in 16. Prima donna problems 41. Unexciting NYC 18. Latin American social networking site 42. Big fuss 37. Grupo Radio ____: launched first 19. Alias 43. Spanish painter, Felipe Hispanic radio station a year ago 20. Emirates, for short 44. They are counted on TV ratings: _____s 40. Commercial 21. Radio wave 47. NY baseball player 41. Pacific island nation 22. Music holder 49. Club player 43. Acronym for groups of Latin American 23. Surname of publisher of Diario 50. Waterfront walk newspapers La Prensa 51. Put on TV 45. Artistic period 27. Musician's asset 52. Sells online advertising for El Mundo 46. Make stuff up 29. Singer, Alicia Americas 48. __ Doc Smith, sci fi writer 30. Courtroom affirmation (2 words) 50. Mathematical number

Find out the answers at www.portada-online.com. Type in Search: Crossword Puzzle, April 2010

8 News and Trends How to best Market to “Texicans” n our last issue (Q1 2010 issue, page Vrtccom has its roots in Mexico. “Our our new location in Houston to provide 1, “Should Mexican Firms Market business model allows us to strategically great service that is cost effective.” I more to Hispanics?”) Portada pub- use our resources from two geographic lished a feature story on whether Mexican zones: Mexico and . Our net- PLANS FOR MEXICANA firms should advertise more in the Hispanic work of offices in Mexico City, “This year we will seek to increase market. Texas epitomizes the strong rela- Guadalajara, Monterrey and Cancun work tionship between Mexico and the U.S. closely with our office in and Portada interviewed Octavio Orozco, VP General Manager of Vrtccom, an agency that just opened an office in Houston and manages advertising for two major Mexican brands: Mexicana and Maseca (media is bought by Lopez Negrete). According to Orozco, “Mexican compa- nies most definitely should consider the state of Texas as a natural extension of their markets for the following four reasons:” First, it has a rather high immigrant Mexican population (3 million approxi- mately) adding to the numerous Hispanic communities that traditionally have resided in Texas. Mexican immigrants have similar buying tendencies and behaviors to Mexicans living in Mexico. Therefore, “the historic amalgamation of American and Hispanic cultures has introduced to the gen- eral market customer traditional Mexican products, especially food and drink prod- ucts, and thus the general market customer has adopted these consumer traits.” Second, Geographic proximity: “Texas can be considered a more proximate region to the center of México than many other northwestern Mexican states. Two of Mexico’s biggest production centers (México DF and Monterrey), are located at least within one day of terrestrial transport from Texas meaning that shipping products to Texas is more cost effective than shipping products to other zones in the country.” The third factor why Mexican compa- nies should consider Texas a natural exten- sion of their market, according to Orozco is distribution channels. “The state of Texas also has a very well developed channel of commercialization directed towards the Hispanic segment through specialized wholesale, distributors and retailers located in main cities such as Houston, Dallas/Fort Worth and San Antonio.” The fourth and last factor, according to Orozco, is Hispanic buying power. “There is no doubt that the buying power of the Hispanic population located in Texas is an incentive to market Mexican products in Texas, even more if the aforementioned products have an esteemed nostalgic value to that population.”

9 News and Trends

awareness of the new routes with beach des- to distribute its content over AP Mobile social networking sites are increasingly co- tinations, such as the case of the Chicago (www.apnews.com), featuring stories from veted by marketers. Latin Social networking route to Puerto Vallarta and Washington more than 1,000 local news providers across site QuePasa recently announced a new (Dulles) to Cancun route. Another objec- the country. ImpreMedia content will be system (DSM) that integrates digital cam- tive will be to highlight the unique attrib- featured on the “AP Mobile Noticías en paigns in many social networking sites. utes that the airline offers to passengers like Español” channel, which is available to QuePasa offers a viral social networking complimentary meals and open bar. consumers in the United States who want browser which allows brands to reach con- Mexicana will continue to consider the their international, national and high-level sumers wherever they find themselves in General Market, as its principal target, local news in Spanish. social networks, with an authentic viral without neglecting the Hispanic market as Through this content distribution deal, marketing campaigns focus on the brand its innate target. For the year 2010 the AP Mobile’s customers will now be able to which includes: simple to-use tools that media to be employed will include media access ImpreMedia’s Spanish-language con- make it easy for any consumer to create above the line and below the line. The work tent as it relates to their geographical area. their own content including brand-related model and geographic location of the vrtc- Customers can now receive content anytime content. DSM can be run on websites with com offices have enabled an optimum and anywhere from ImpreMedia’s network minimal programming and campaigns can attention to the daily communication needs including El Diario/La Prensa in New be shared from consumer to consumer. In of the airline.” York, La Raza in Chicago and La Opinión addition, Map Technology shows a unique in Los Angeles. URL where the campaign has been posted AP also announced plans to launch AP and how many people have viewed it on IMPREMEDIA EXPECTS 25% OF Mobile América Latina, a multimedia wire- that site. A geographic view, which is inte- TOTAL PROFITS FROM NON-PRINT less news portal that expands the popular grated with Google maps, shows where IN 2011, 50% BY 2012 AP Mobile news network to consumers your brand’s campaign spreads geographi- During a presentation at the 62nd throughout the Americas. cally - allowing you to target your cam- World Newspaper Congress in Hyderabad, paign’s participants with relevant, localized India, John Paton, ImpreMedia Chairman HYPERLOCAL BLOGGING: marketing programs. and CEO – he left ImpreMedia in January Another ImpreMedia initiative is a plan QuePasa is currently using DSM tech- to join Journal Register Company as CEO to introduce hyperlocal coverage, initially in nologies for a “A “Summer Look” contest – John Paton spoke about re-inventing news- New York and Los Angeles, via community campaign for Brazilian magazine publisher paper companies for the new news ecology blogging partnerships. As part of its com- Editora Globo’s Marie Claire magazine. In Paton said ImpreMedia’s business plan envi- mitment to serve the Hispanic community, addition, it is using DSM in a campaign sions stabilizing and growing print profit, the company will set up ImpreMedia for the Acapulco Tourism Office called but earning 25% of total profits from non- Community E-Journalism Media Labs in its “Acapulco Revealed”. The campaign invites print products by 2011, and 50% of profits newsrooms in New York and Los Angeles Quepasa.com users to build their ideal from non-print by 2012. to assist local bloggers in their efforts of vacation to Acapulco. “Today, with 42% fewer employees the covering the community at a deep and company produces more than 97 products meaningful level. The selected bloggers will WHAT DO MEDIA BUYERS SAY? on seven robust platforms of web, widgets, take part in four-week orientation sessions “As with any multi-channel communi- mobile, TV/video, audio, and working out of the Community E- cations planning, the ability to have a single print. Let me clarify, that by a factor of 2 to Journalism Media Labs set up in the news- platform from which you can easily see a 1 our cuts came from areas other than edi- rooms at El Diario La Prensa in New York comprehensive publication calendar can torial staffing,” Paton added. and La Opinión in Los Angeles. Mr. Paton greatly simplify the process of coordinating said the company will also give the bloggers your messaging push,” Blair Goldberg, training in sales and create mutually benefi- Assistant Digital media Strategist, at Sensis, Paton explained the way cial sales arrangements. The ImpreMedia a Los Angeles based Hispanic digital his company now treats Community E-Journalism Media Labs are Advertising Agency, tells Portada. expected to be in operation in a few months. He adds that “as with all communica- news in the following way: tion tools, it is critical to have a deep understanding of the audience you are tar- DOES DSM WORK FOR ONLINE geting. The challenge of working with a 1. Send SMS alerts ADVERTISING? mixed platform social media publishing 2. Release stories on the Web For marketers the big news about social tool is that it risks misunderstanding the 3. Use social media to spread the word networking sites is that they can integrate unique behavioral dynamics of each net- 4. Enhance with audio and video their brands into consumers social lives in a work. For example, the playful familiar components and additional content way that may not have been possible before. copy of Facebook may fall flat on Twitter, Due to the growth of both the Hispanic while the tags (#) and shortened burls (such 5. Create the newspaper itself and Latin American social networks, DSM as bit.ly or ow.ly) that are commonplace on 6. Recap, enhance, and repackage (Distributed Social Media) products may Twitter can alienate and confuse the less news for new products. offer interesting opportunities to marketers technically savvy population of Facebook. I wanting to reach those audiences. have seen firsthand the confusion that Users of social networking sites can social media novices can experience when ImpreMedia also recently announced become brand ambassadors for brands two new initiatives.. The first an agreement advertising on those sites. Audiences of (continued on page 12)

10

News and Trends

(continued from page 10) NSA MEDIA’S DESENS: “WE EXPECT Dallas Texas to promote the much antici- HISPANIC NEWSPAPER ADVERTISING pated March 13 mega event titled “The receiving a synchronized content publica- TO REMAIN STEADY” Event” Pacquiao vs. Clottey at the tion, and I can say with some authority “By all accounts we expect newspaper Cowboys Stadium. that different networks have distinctly dif- advertising targeted at the Hispanic popula- ferent behavior patterns that need to be tion to remain steady across major markets accounted for.” for 2010.”, Craig Desens, President of AMERICAN ADVERTISERS Geomentum Account Services and ACKNOWLEDGE HISPANICS' IMPACT President of the Innovative Marketing ON U.S. BUT HALF DON'T MARKET Solutions and MagNet Media Divisions of TO THEM NSA Media, tells Portada. The 2010 U.S. Census is expected to NSA buys media for retailers including find that Hispanics number more than 50 Kmart, Office Depot, Wal-Mart, Sears, million in this country, and they command Rite Aid and Safeway. Desens added that $1 trillion in buying power. Yet 50% of EVENT “the relative success of newspaper FSI’s in U.S. advertisers, who acknowledge the cul- 2009 is driven by marketers ability to tar- tural impact of Latinos, do not include CALENDAR get Hispanic households situated near Hispanics in their marketing efforts. The retail store locations. In 2010, advertisers field is wide open for companies that recog- INDUSTRY CONFERENCES will be adjusting their quantities based on nize the incredible power of Hispanics as a OF INTEREST circulation drops, which will cause a slight driver of their businesses. decrease in quantity. However the correla- That’s the key finding of a new TO Portada READERS tion between overall circulation declines Hispanic marketing trends survey commis- and decrease ad quantities will not be sioned by Los Angeles-based Hispanic (check out http:// high, as FSI buyers do not typically buy advertising agency Orcí sent to 9,300 senior www.portada-online.com/ full-run. FSIs will continue to drive sales marketers at Fortune 1000 companies. The events.aspx and remain the preferred method of ad survey, conducted via email in February of delivery for consumers. Because of this, 2010, was designed to offer a broad and for more events) advertisers will find it difficult to cut sig- deep look at advertisers’ strategy, spending nificant quantities and are expected to plans and viewpoints of the U.S. Hispanic > NAHP, 25th Annual Convention & Expo become even more vigilant in their target- market. Respondents included senior mar- March 10-13, 2010 ing efforts to maximize efficiency.” keting and advertising executives of B2B, National Association of Hispanic consumer, small, medium and large Publications, Albuquerque, New Mexico Fortune 1000 businesses across the country. BOXEO LA REVISTA TO BE PUBLISHED Latinos comprise more than 15% of > Re:think 2010: The 56th Annual MONTHLY the U.S. population, and are predicted to Convention + Expo Jimenez Communications Inc. and rise to 50 million in the 2010 Census, an March 22-24, 2010 Rafael Soto Comunicaciones announced increase of 42% since the last Census in Advertising Research Foundation, that Boxeo La Revista is now a monthly 2000. In the 2000 report, the Hispanic Marriott Marquis, New York City publication with the first edition becoming growth rate of 24.3% was more than three available on January 30 in Mexico City at a times the growth rate of the total U.S. > Horowitz, 10th Annual Forum, fight between three time world champion population (6.1%). Multicultural Media Jorge “Travieso” Arce and Angky Angkota Yet the Orcí research showed that 51% for Multicultural America for the WBO Super Flyweight crown. of respondents do no marketing to Latino March 25, 2010 The magazine which had been pub- consumers. And, 82% have no plans to The Roosevelt Hotel, NYC lished as the official program of the “Latin begin or increase existing efforts aimed at Fury” boxing series will now be available as American Hispanics in the next 12 months. > Ad:Tech San Francisco a monthly that will cover upcoming fights, This despite the fact that the great majority April 20-22, 2010 results of fights and will have reports on of respondents—more than 8 out of 10— Ad-Tech, San Francisco, Moscone past boxing stars and stars of the future. agreed that Latinos will impact U.S. com- Center North The premiere issue was also distributed in panies’ product and service offerings in the > 2nd Annual Latino Leadership Las Vegas on Feb 13, at the Las Vegas next five years, particularly in food tastes, Summit Hilton, in an event of the Latin Fury series. fashion and technology. May 24, 2010 As Rafael Soto, Editor of Boxeo La Revista, “I am not surprised by the findings,” HPNG, Harvard Club, New York City told Portada “additional print copies will said Hector Orcí, co-founder and chairman be distributed at Latin Fury boxing series of the agency, which handles such accounts > PORTADA PANREGIONAL and at some of the new series that Top as American Honda Motor Company and ADVERTISING AND MEDIA SUMMIT Rank and Fox Sports announced for 2010, Jack in the Box. “For the last 30 years a June 3, 2010 weekly boxing shows televised in Mexico minority of companies that have been smart Portada, Mandarin Oriental Hotel, and the US”. enough to take advantage of engaging Miami, FL The second issue will be distributed at Hispanic consumers have seen their efforts Fox Sports boxing fights in Mexico and make a difference to their bottomline. Now in the US, and at some local events in more than ever, businesses need to think

12 News and Trends

FOCUS ON: FINANCE AND CONTENT CREATION

JEFF VALDEZ, Sí TV, Co-Chairman-Maya Entertainment, Co -Chairman-Sandbox Entertainment and Chairman of Quepasa recently talked to Portada about Maya Entertainment and opportunities in the Hispanic marketing and media sectors. Valdez noted that there are opportunities in out of home marke- ting and in content.

Portada: Can you explain your content creation strategy? “At this point all of our content is transactional but as we grow Jeff Valdez: Maya acquires 60-70 films for DVD and VOD dis- we hope to roll out a Free VOD strategy.” tribution per annum.Maya also produces 2-4 narrative feature films for theatrical or TV distribution per year. Do you have a figure for the amount of downloads Video on Demand has in the general market? How many in the We understand that you own and operate a theatre network. Hispanic market? Growth figures? Do you have a vertical integration strategy? “I only know that the in demand category is predicted to grow “Maya Cinemas is a sister company that provides theatrical from $600 million to $2.1 billion in the next 4 years.” distribution for the various Maya theatrical releases.” You are a serial entrepreneur. In what areas do you see In terms of in-home movie distribution. Which are the most opportunities in the Latin- Hispanic media and entertainment important ways of distributing movies (e.g. cable etc.) and space? what is Maya¹s strategy here? “ I believe there are opportunities in out of home marketing as “Maya embraces a multi-platform approach which is our well as as in content. There is a growing Latino population that current and future plans. As distribution has changed so must will have a desire to consume relevant content.” content creators in their approach. There are no more walled gardens but rather a multi-facted approach Maya has created In what way is lack of credit being an obstacle to entrepre- a footprint in the traditional DVD rental and retail market and neurship? at the same time is embracing the future VOD. Maya recently “Access to capital is critical to any kind of growth for any signed with TVN, InDemand, Netflix and Lodgenet giving it company. I'm optimistic that there is a thaw in the Latino cate- access to over 48MM homes.” gory starting to happen as people see the opportunity in this market and in some cases needs to re-strategize on how to Is some of your content also advertising supported or always capture the market in order to survive.” 100% end user (pay per view)? about how to tap into the opportunity the Other key results of the Toyota's January 26th product recall Hispanic market presents.” announcement for the car maker and the The survey also found that 78% of survey include: marketing and media community. Of respondents do not use social media to course, for the media this has also been an engage Latinos despite the fact that opportunity to capture additional advertis- Hispanics are the heaviest users of wireless > 89% believe Latinos will somewhat ing dollars. How has Hispanic media done? access through mobile phones and laptops or significantly impact American Chris Traina, a spokes person at Toyota’s than any other ethnic group. In addition, taste in foods in the next five years Hispanic Advertising Agency in Conill close to 80% of Latinos engage in some > 87% believe Latinos will impact Torrance, CA, tells Portada that “Thus far kind of online socializing. fashion and beauty for this specific effort, we're concentrating on The survey found that among those > 82% expect Hispanics to impact print and online in the Hispanic market.” companies who do use social media to mar- entertainment Traina adds, that print insertions have ket to Hispanics, Facebook was the site of > 78% believe Hispanics will impact run in top Hispanic newspapers in the three choice with Twitter a close second. largest Hispanic markets: El Diario/La technology/communications “Hispanics are tech savvy, young trend Prensa (NYC), La Opinión (Los Angeles) setters with incredible spending power,” and El Nuevo Herald (Miami). In addition, Orcí said. “Companies that recognize the Toyota has run online advertising banners potential of the market by effectively driving consumers to toyota.com/espanol engaging them will see a return on their TOYOTA’S RECALL HISPANIC recall information site. investment.” ADVERTISING CONCENTRATES IN PRINT AND ONLINE It’s been a tough few weeks since

13 Hispanic Pay TV

(continued from page 1) a significant increase in marketing Advertising Vehicle? efforts to attract customers to Hispanic Subscription TV can be a great Dish, to MSO's like Comcast and programming tiers with full Triple Play medium for advertisers. As magazines, Time Warner Cable to Verizon FIOS, service.” However, Schramm continues, local newspapers and digital media which is a bundled communications efforts will truly reach a higher impact properties, they often provide venues (Internet, telephone, and TV) service only if the telephony companies focus to connect national brands to local which operates over fiber optic com- marketing efforts in this market as well. audiences. munications networks. According to Marcelo Salup, Media Dish Network ranked nr. 9 among Content Director at Miami based DMG Hispanic Advertisers in 2008 with To meet the increasing demand of Solutions, “Any national signal (TV, $35.7 million, according to TNS Hispanic Pay TV subscribers, cable and Satellite and cable) will have the high- Media Intelligence (nr. 19 among satellite operators have allocated est response ratios you've ever seen; this newspapers and 13 in Spanish-lan- increased bandwidth for Hispanic pro- is a direct result of the number of peo- guage Spot TV). Time Warner Cable gramming launching an ever-growing ple reached.” ranked Nr. 12 in Spanish-language array of channels that specifically Advertising in Pay TV vehicles can spot. ($12.918 million) and appeal to their Hispanic segments, like, be highly targeted and cost-effective.” Cablevision nr. 18 Spanish-language Fox Sports en Español, GolTV, MTV By considering the targets' level of spot ($9.49 million). Tr3s, CineLatino and Canal Sur. acculturation, language dominance, “Pay TV looks at the Hispanic Hispanic programming tiers are more and income level, and customizing market as an added cost in two areas. robust, and Hispanic On Demand and your message accordingly advertisers Marketing and channel space (band- HD programming is proliferating. will find an eager and receptive audi- width). Programming targeted to This translates to higher ratings and ence among Latinos.”, says Habib. Latinos uses bandwidth that otherwise advertising opportunities. Still, the industry's share of the would have been allocated to the gen- There are also plentiful sponsor- advertising pie remains small. Research eral market”, says Joseph Schramm, ship opportunities for Hispanic mar- analyst Deana Myers at SNL Kagan Managing Partner at Schramm Sports keters in 2010, with big-ticket events calculates that cable networks received & Entertainment Inc. like the FIFA World Cup South a mere 4 percent of the advertising According to Schramm there needs Africa™ and the Billboard Awards in investment in Spanish-language televi- to be a clear return from the marketing Puerto Rico coming up. Due to their sion in 2007, or about $122 million activities. “The pay TV provider needs sports oriented content ESPN compared to $3 billion for all Spanish- to be able to see that they can access Deportes, Fox Sports en espanol and language television. The share of other revenues - from advertising and sub- Gol TV, are in a particular good situa- Pay TV providers, including satellite scription fees -that would equal those tion to profit both from audience and TV, is not likely to be much larger. that would have been generated by the advertising increases at the upcoming One of the main reasons for the general market. Likewise, the invest- 2010 Soccer World Cup. still relatively low expenditure is that ment in marketing However, there still seems to be Hispanic marketing budgets continue efforts needs to pay off for attracting space for more niche content. At least to present a challenge. As Habib notes Hispanic customers.” that is what Karen Habib, Director of “In difficult economic times, it's often In Schramm's view, “cable TV Hispanic Marketing at Eclipse the first area to be cut. Companies companies are currently actively look- Marketing Services, thinks: “I find it need to understand that the Hispanic ing to close the gap. “The Hispanic unbelievable that there's still no market represents their greatest growth market is increasingly a highly compet- Hispanic home decorating network or potential, and that Hispanic itive marketplace for the cable TV food channel! I'd also like to see more Marketing, properly executed, can be companies. In 2010-2012, you will see Hispanic comedy … tastefully done.” (continued on page 16)

14

Hispanic Pay TV

(continued from page 14) producers who together create a spending patterns. The studies will be compelling balance between culturally made available in a “tailor made” fash- the best use of their marketing budg- relevant content and striking editorial ion, this means that our advertisers will ets.” Since Hispanic marketing should designs,” says Michaelle Fastlicht, be able to order specific and custom be more targeted to areas with high owner at En Español Publishing developed studies based on their partic- Hispanic audiences, spot buys on Cable Group. “The team work alongside ular marketing needs,” she concludes. TV would be our recommendation. DirecTV's programmers to identify Eclipse Marketing is another player Advertisers could select the niche chan- the programming highlights and in the Hispanic custom publishing sec- nels that appeal most to their targets special events. tor. The New Jersey based company and are best suited for their products EnESPANOL also bares the assists cable operators and program- and services.” responsibility to produce the actual mers to engage their customers and piece, working with printers around the prospects with market-specific, target- The Print - Marketing Liaison... country to look for the latest printing, ed bilingual campaigns. For example, In their marketing efforts Pay TV binding and insertion trends. We have Eclipse created the Nexos Latinos, a companies often use direct mail and created a solid and successful produc- quarterly magazine which is designed custom publishing strategies. This is tion infrastructure that permits us to to entertain, educate, and create rele- the case of DirecTV with its pass savings on to our clients.” vant value for cable products through “Custom publications help connect with Hispanic Pay TV subscribers in a culturally insightful manner.”

DirecTVMás programing guide, which ...Third Party Advertising informative and interesting articles fea- produces the Hispanic custom publica- Although DirecTVMás did not turing Latino celebrities and stories of tion with the highest circulation. allow third party advertisers at first, the interest. Cable operators include DirecTVMás programming guide is attractive circulation and customer pro- upgrade and acquisition offers and distributed bimonthly to more than file has been sought after by interested have seen positive results. 900,000 DirecTV Hispanic sub- advertisers. In 2010, the Mas guide will The magazine was launched in the scribers across the country including for the first time, open its pages for fall of 2009 and distributed nation- the main Hispanic DMA's. It is mailed third party advertisers. “We are confi- wide. The main aim of the publication, to subscriber homes for free as part of a dent that both service providers as well published by Eclipse Marketing, is to strategic loyalty program that has as retailers and financial institutions to entertain as well as educate Hispanic enabled DirecTV to connect with its name a few, will be amongst our audiences on a wide array of cable customers in a culturally relevant and founding advertisers. We will work products, from Video On Demand and insightful manner. The book contains a closely with them to develop cross pro- HD to High Speed Internet and digital TV guide as well as relevant and motions and “out of the box” solutions phone. “We work with the cable com- informative content about sports, to better benefit from this attractive panies on a local basis to customize the lifestyle, finance and entertainment. audience,” Fastlicht notes. “We will magazine for each market.” Cable cus- Los Angeles based enESPANOL take every measure to ensure a quick tomers include Comcast and Time Publishing Group develops 100% of and responsive ROI. We are launching Warner Cable. The magazine is also the content of DirecTVMás guide. strategic readership studies to better printed independently in each market. “The project has its own assigned team acquaint our advertisers with our read- The first issue had a page count of 16 of writers, designers, contributors and ers, their interests, habits, trends and pages. For the April issue Habib

16 Hispanic Pay TV

expects at least 20 pages. The magazine is open to Third Party Advertising.

Local Market Customization Nexos Latinos is customized to local markets “Local market customiza- tion involves customizing the pricing, packaging, features and benefits offered by a cable operator in a given market. We can also mention local, community events in the magazine, as well as incorporate many of the cable compa- ny's branding elements.” The magazine can either be mailed to Hispanic households, which is its predominant form of distribution, or inserted in “Newspaper inserts are more affordable” local newspapers. “Our inaugural issue was inserted in such local newspapers as Viva Colorado in Denver and El Mundo in Las Vegas,” says Habib. She also tells Portada that in smaller mar- kets or when there are budget con- straints (direct mail is expensive) cable operators often find it easier to insert the magazine in Hispanic newspapers.

For an in-depth review of the Hispanic Pay-TV sector, please search on www.portada- online.com for the article “Do Hispanics Want Their Pay TV?”

17 Latin American Pay TV PayTV: Does it Work to Reach the Latin American Middle Class? ver the past two years, the Latin American pay-TV sub- satellite space until the end of 2008 launch of Dish Mexico, a O scriber base has grown at a 10.6% compound annual joint venture from DISH Network Corp. and MVS Televisión growth rate (CAGR), outpacing all regions except Asia”, S.A. de C.V. owner MVS Comunicaciones. says a recently released report by Kagan. More than 20 million Latin American households are subscribers of pay TV services. INTERACTIVE PLATFORMS Subscription revenues are by far the majority of revenues of At the end of the second quarter of 2009, Sky Mexico, had Pay TV service providers, in most cases they amount to at least 1.5 million subscribers. While both Sky Mexico and Sky Brasil 90% of revenues. However, advertising revenues do provide a have rolled out robust interactive platforms, SNL Kagan analy- nice addition to the bottom line. Due to their middle and high income demographic, Latin American pay TV subscribers (continued on page 20) are an interesting target for many advertisers. The upcoming Soccer World Cup is likely to be a blessing for advertising through pay TV channels. “We are obsessed with soccer in the region. It’s nearly a religious event”, says Cynthia Evans, Director of Research Group M/Mediaedge in Content: The Networks Miami, who buys media for companies including Colgate, Sprint, Sony, Colgate Palmolive, Sony Ericsson and Energizer. The signal carriers described do carry content through “We have several advertisers around the world who are their multichannel offerings. The main Latin American sponsors of Fifa World Cup,” Evans adds. “Largest is probably targeted networks include:

> A&E (Ole Networks, sells advertising into A&E, “Will advertising increase its History Channel y Biography Channel)

share in Latin American Pay-TV > Discovery (Animal Planet, Discovery Channel, Discovery Home & Health, Discovery Travel and operators revenues?” Living, Discovery Kids, People + Arts)

the various Sony companies and our MEC Access division > Disney (ESPN, ESPN Brazil, ESPN Plus, Espn2) globally is working with Fifa directly, so we are ramping up and actively following details”. > MGM Networks Latin America (Casa Club TV, MGM) According to Jesus Mata, Sr. Director, Advertising Services at DirecTV Latin America, “the ratings of the World Cup > Fox (Baby TV, Cinecanal, Fox, Fox Life, Fox Sports, Fx, games amount to a month of Super bowl broadcast. It requires Hallmark Channel, National Geographic Channel, SciFi, a special treatment both by marketers and media companies.” Speed, The Film Zone, Universal Channel, Utilísima) DirecTV Latin America will be the only television service to transmit all 64 games live (no one does that in Latin America) > HBO Latin America (Time Warner), with the excep- and will also be the first and only full high definition television tion of Brazil where it is sold by Sony, HBO does broadcast of the tournament in the continent. It plans to not run advertising as it is a premium channel.) devote several 24-hour television channels to Fifa and World Cup content in preparation for the actual tournament. > Sony (Anymax, AXN,E-Entertainment, S) (Sony also sells advertising for HBO in Brazil. In MAJOR INTERNATIONAL STRATEGY addition, it is the exclusive representative of A&E, DirecTV has made Latin America a major component of The Biography Channel and The History Channel in its international strategy. It is the largest satellite TV provider Mexico, the Caribbean and Brazil) in Latin America, where it has 6 million subscribing house- holds (including Puerto Rico). The average household size is > Turner (owned by Time Warner: Boomerang, 4.5 persons. The only countries it is not present in Latin Cartoon Network, CNN en español, CNN America are Bolivia and Paraguay. International, TNT) The 2006 consolidation of Sky Mexico and DIRECTV Mexico enabled the provider to grow unchallenged in the > Warner Bros (Warner Bros TV)

18

Latin American Pay TV

Share of different media vehicles in total panregional advertising expenditures (in %)

2006 2007 2008 2009 2010 E 2011 E 2012 E 2013 E 2014 E 2015 E

Print 25,0 23,0 17,2 16,0 14,8 14,0 13,4 12,8 12,3 11,7

Digital 9,0 11,0 16,4 18,0 18,8 19,7 21,1 22,6 24,2 25,9

Paid TV (Cable and Satellite) 55,0 55,0 55,7 55,0 54,4 54,9 54,4 53,9 53,3 52,6

Outdoor 6,0 7,0 8,0 9,0 9,2 9,0 8,7 8,4 8,1 7,8

Radio 4,0 4,0 3,0 3,0 2,7 2,5 2,4 2,2 2,1 2,0

SOURCE: Portada Survey and Portada's own growth estimates

(continued from page 18) Capital Partners, Venezuela, Cable), Cablevisión (Grupo Televisa, Mexico, Cable). sis indicates the lack of triple-play products will limit the satellite operator’s long-term competitive viability. Sky THE PANREGIONAL MARKET Mexico’s share of the local pay-TV market declined from Pay TV (Satellite and cable) has historically been the 22.5% at end-2006 to 21.4% at end-2008. New DTH play- leader in panregional advertising as many media buyers have er Dish Mexico, served an estimated 530,000 subscribers as traditionally regarded them as an efficient way to reach of first-half 2009, according to Kagan. upper and middle class Latin American audiences. “Several networks have strengthened their panregional sales teams.”

An additional sign of the consolidation of the Latin Historically, at least 50% of the overall panregional American satellite operator sector happened in late February advertising market has been used to buy advertising in when EchoStar acquired an ownership interest in Satmex. subscription TV channels (see table per media channel above, another Mexican cable operator that delivers video, audio as reported in a recent report published by Portada). and data services to the Americas. MVS Comunicaciones, Portada defines the panregional advertising market is EchoStar's partner in the Mexican direct-to-home TV service defined as advertising placements bought in two or more Dish Mexico, also participates in the ownership of Satmex Latin American countries by clients and agencies both outside through a joint venture with EchoStar. Together, EchoStar and inside of Latin America. and MVS Comunicaciones acquired all of the outstanding stock of Satmex for approximately $267 million in cash, SOUTHERN plus up to $107 million in cash on Satmex's balance sheet. Panregional advertising decision making has historically The transaction is expected to close early in the third quarter been concentrated in Southern Florida, particularly in 2010. Miami, an area with a strong connection to Latin America In Brazil, where Net Serviços, owned by Embratel/ that offers corporations and agencies the opportunity to Telmex is the market leader, “Sky Brasil, has grown sub- activate centralized panregional buys. In recent months, scribers from pre-DIRECTV Brasil merger levels of 869,000 several networks have strengthened their panregional at end 2006 to 1.7 million in second-quarter 2009. advertising sales teams. Last month, A& E, Ole Networks In addition, to the above mentioned DirecTV (including appointed Santiago Herrera as Senior Sales Director Sky Brazil and Sky Mexico) and Brazil’s Net Serviços’ other Panregional: Herrera, based in Miami, will work closely with major Latin American Pay TV providers include: Cablevisión advertisers and agencies to provide attractive opportunities (Grupo Clarín, Cable, Argentina), Telmex (Grupo Telmex for Latin American sales for signals A & E, History Channel International, Colombia), Megacable (Teleholding SA, and Biography Channel. Mexico, Cable), VTR GlobalCom (Liberty Global, Chile), Cable Mágico (Telefónica, Peru, Cable), Intercable (HM

20

Digital

(continued from page 1)

Turning Company Websites into with the Converse logo. In other needed to be relevant to a fan of Social Networking Sites words, the campaign was designed to Converse to inspire within them opti- The goal of Converse PLAY was turn Converse’s country-specific web- mistic rebellion and individualistic cre- to create “cool content” for the sites into social networking destina- ativity. Instead of just passively watch- Converse fans: simple and entertain- tions for the young and connected. ing a piece of media, the viewer would ing ideas to be delivered on the Realizing that fans of Converse be inspired to go create something on Internet that serve to “inspire creativi- shoes are very individualistic and have their own. ty”. Miami based Advertising Agency artistic sensibilities, the brand has a “Company websites often use mommy bloggers to promote their products.”

“La Comunidad” developed 40 origi- number of ways to cultivate that in its Videos nal pieces of content to be posted on fans—allowing them to customize In addition to the videos created by the Converse sites in Latin America in their shoes and incorporating fun con- La Comunidad, the agency also a section of each site called Play 2 tent for fans to explore when they are reached out to the independent artist Target. Converse wanted this section on the Converse site. So involving La community and had these artists of the website to be a creative outlet Comunidad with its deep roots in the submit their own interesting and com- for their fans, and for the creative art and creative communities, each pelling :30 to :90 pieces of their own content specifically not to be branded video or interactive piece (:30 to :90) design, which added considerably to the diversity of thought and inspiration communicated through the project. There was no media bought to pro- mote the project. This was an entirely new take on “marketing” to the younger crowd that lives its life in the digital screen. With the rise of YouTube, video has become an impor- tant means of communication for a certain generation. Separate from tradi- tional consumer outreach, Converse sought to make deeper connections with the fans of the brand, making their website a destination for their tar- get young and connected audience. When watching the videos, viewers are not just entertained —they are inspired to go out and round up their friends and pass along their own creative good vibes to the world. The idea is what matters, not the packaging. At the end, success is having something entertain- ing enough that inspires someone to share something of their own. Another shoe manufacturer, Spain’s Camper, has designed a strategy focused on its website (www.camper.com) and a presence among the main social networks. The company targets the U.S. Hispanic and Latin American markets. It is also focusing efforts on promoting its

22 Digital

online store (shop.camper.com). To mom who loves to cook. Recipes can Procter & Gamble’s Crest for reach its target audience of lovers and range from main courses and side dish- Spanish-language websites also has consumers of Camper products, the es to desserts, with each entry using at similar blogging and online contest brand is using all available media at its least one of Qué Rica Vida‘s 14 priori- components. disposal, regardless of whether they are ty brands, plus additional ingredients digital or not. However, “the interest- and serving ideas.” ing thing about the Internet is that it allows us to offer additional interactive content to build a better relationship between the brand and our audience.” In this area, the company believes it is essential to have good placement in search engines, as well as “combining niche presences with more convention- al —though never massive— cam- paigns, to reach the kind of audience that shares our values,” the company’s Web Marketing Manager, Pere Quintana, tells Portada.

No Church and State anymore... A big trend, and a part, where the (old fashioned?) church and state wall between editorial and advertising is being torn down are company websites which use bloggers to promote their products. It also can be called “online custom publishing.” “Mommy blogers” which post comments at Procter & Gamble and General Mills websites are becoming very popular. While they usually are not paid by these compa- nies, they do get “perks” in the form of products and travel tickets. Bloggers posts and comments and online con- tests often foster the community aspect at company’s websites, which often morph into social networking sites. General Mills recently invited creative Latina cooks to share special recipes by participating in a new online cooking contest: La Receta De Mi Cocina (My Kitchen’s Recipe). “La Receta De Mi Cocina is a con- test that celebrates creativity and tradi- tion in the kitchen,” said Ursula Mejia- Melgar, editor of Qué Rica Vida, General Mills’ Spanish-language cus- tom lifestyle magazine and website. “The winning recipes will not necessar- ily be complex or time consuming; more likely, they will be modernized versions of much-loved traditional dishes, redesigned for the busy Latina

23 Digital

Branded Entertainment during the first months of the site, Miami based DMG Solutions says Another promotional form fostered according to Adam Chandler, “online is very dependent on two by the online medium is branded Executive Director of U.S. Sales, things: creative and site. When I entertainment. Here the frontiers Partnerships and Emerging markets at worked on the launch of the Porsche between editorial, public relations and Yahoo (he recently was appointed VP Cayenne in Latin America we decided advertising also become very fluid. of East Coast sales of rich media to try it without print at all and it In 2009 Yahoo partnered with P&G to provider Point Roll). worked really well. We used every tool launch the DeModa site Pricing for branded entertainment we had available to us: flash, rich (http://espanol.blogs.mujer.yahoo.com/ sites like DeModa is typically done on media, search, online video... you de-moda/), a site promoting style and a CPM basis, where the advertiser buys name it, we tried it. But, we also devel- fashion for Hispanic women. DeModa a media schedule. oped dozens of creative executions and is also active during 2010. Brand inte- Chandler says that his company had to analyze the campaign continu- gration worked through online videos, did not get any complaints from users ously. However, the campaign was very premium product placement and about lack of editorial integrity. While very successful and we beat all sales theme specific blogs. not at the same level in investment and objectives. That same year we also Tapestry Multicultural in Chicago frequency as in the general market, launched Kingston Technology on the and SMG’s Connected Tissue unit in branded entertainment is one of the web and it was very successful, but not NYC worked together with Yahoo!’s big opportunities in the Hispanic as crushing as the Cayenne, which also team. The production was done in online advertising sector, according to has to be in part a reflection of the Yahoo!’s Time Square NYC studios Chandler. product. Other campaigns I’ve been (which is used by “The Thread”, involved in have not been that amaz- DeModa’s general market counterpart.) Site Design Melds with Online ing. With DIRECTV we are looking The site launch was a success with sev- Advertising at how to incorporate tools like call- eral hundred thousand unique users Marcelo Salup, Media Director at back buttons, etc.”

Top 10 Hispanic Ad Categories Online in 2009 (activity or number of campaigns)

Rank Subcategory Total 2009 % Share 2008 Y/Y Change

1 Telecommunications Carriers & Resellers incl. wireless 584 6.00% 466 25.30%

2 Auto manufacturers 424 4.40% 432 -1.90%

3 Online: Sports News 306 3.10% 215 42.30%

4 Online: Portals, Search Engines, Community sites 298 3.10% 234 27.40%

5 Cable/satellite networks & distribution 286 2.90% 213 34.30%

6 Online: Consumer information & services 269 2.80% 187 43.90%

7 Non-profit organizations 262 2.70% 194 35.10%

8 Food and drinking places 254 2.60% 136 86.80%

9 Online: Entertainment (Games, Humor, etc.) 246 2.50% 195 26.20%

10 Food products 246 2.50% 105 134.30%

SOURCE: Media Economics NOTE: Number of Campaigns in each Category

24 PORTADA-ONLINE Get your daily dose of Latin American News! Get the latest news and analysis on the Panregional Media, Advertising and Content Markets here: http://www.portada-online.com/LatinAmerica/default.aspx And for news and analysis in Spanish (En Español!) in the Latin world go here: http://www.portada-online.com/EnEspanol/default.aspx

News and Trends Panregional Is there an Increasing Relationship between Latin America and U.S. Hispanic?

t the crux of Starcom Media reach Hispanic consumers. BUT, ...INTEGRATION OF LATIN Vest’s recent decision to appoint Rarely the same decision makers buy AMERICAN AND U.S. HISPANIC MAKES A Monica Gadsby as CEO of both advertising for both U.S. Hispanic and SENSE FOR LARGE COMPANIES SMG Multicultural and Latin American Latin America (San Antonio’s Bromley is Large Fortune 500 companies generally units is the assumption that there is a one of the few exceptions; see for instance have totally separate departments for their strong relationship between the U.S. their 2007 Reynolds Wrap campaign). U.S. Hispanic and Latin American market- Hispanic and the Latin American adver- ing endeavors. However, they may central- tising and media markets. ...WHO ARE BASED IN DIFFERENT ize their creative and media buying/plan- While there is an obvious cultural and PLACES... ning work with one agency and there are linguistic overlap, generally there is not a In fact, geographically, the decision efficiencies and “brand consistency issues” strong connection between the Latin making points for both markets often lie far across all markets that speak in favor of the America and the U.S. Hispanic markets. from each other. While agencies and corpo- integration of Latin American and U.S. Put in economics terms, the composition of rations targeting the U.S. Hispanic popula- Hispanic work. In fact, according to SMG’s the demand (clients and agencies) for adver- tion are based all over the U.S. (with a Gadsby, her new job will include looking at tising and marketing campaigns differs a lot strong representation in New York City, cross-border opportunities to help develop between both markets. Miami, Los Angeles and some Texan cities content that works in both Latin America (e.g. San Antonio), agencies and clients tar- and the U.S., for clients that SMG handles EXPERTISE HELD BY DIFFERENT geting the Latin American consumer are in the two regions, such as Procter & AGENCIES/CLIENTS... mostly based in Southern Florida (particu- Gamble Co., Kraft Foods, Kellogg’s, Portada covers and knows both markets larly in the Miami area) and, of course in Coca-Cola Co. and General Motors. in-depth, it actually organizes conferences Latin America. In the case of large Spanish “There is a lot of possible overlap for each of the markets, and while the play- companies (banks, telecommunication and between U.S. Hispanic and Latin America. ers on the media side often have interests in energy companies) in Spain. For a long time, we were so stuck on how the both the Latin American and U.S. markets consumers we’re targeting are different. One (e.g. DirecTV in the U.S., Mexico’s ...AND CATER TO VERY DIFFERENT thing we now have in common is that tech- Televisa, Spain’s Prisa, Venezuela’s AUDIENCES... nology has enabled consumer control across Venevision etc..), decision making for Clients and agencies interested in all borders.” Gadsby told Advertising Age. advertising purchases tends to come from reaching the U.S. Hispanic and the Latin One of the few other networks to put a different agencies for each of these markets. American consumer also cater to very similar structure in place is DDB In fact very few, agencies share their Latin different audiences While the U.S. Hispanic Worldwide, where Miami-based Juan American and U.S. Hispanic media depart- consumer tends, with notable exceptions, Carlos Ortiz is president of DDB Latina, a ments and often, particularly in the case of to be a first or second generation immigrant region that includes U.S. Hispanic, Latin smaller agencies, they have expertise in one and with a relatively low, for U.S. America and Spain. DDB Latina has or the other, but not in both. For example, standards, purchasing power, the Latin already won two accounts, Rosetta Stone Miami’s Grupo Uno is a shop exclusively American consumer targeted by clients and and Kyocera Wireless, through joint U.S. dedicated to reaching Latin American audi- agencies generally is a high income individual Hispanic-Latin America pitches. (Most of ences, while Zubi Advertising in the same that belongs to the upper or middle class the media buying of DDB accounts is done city is exclusively focused on helping its Latin American consumer segment. clients (e.g. American Airlines, Chase) to

25 News and Trends Panregional

by OMD out of Miami). “significant” stake (valued at between $15 since Telefónica’s operations there are asso- and $30 million) in Spanish software down- ciated with Portugal Telecom. Other load firm Softonic. In the medium term names that will remain unchanged are those HARRENMEDIA TO OPEN Digital River, could increase its stake to of Internet portal and Atento cus- MIAMI OFFICE 20%, although the exact percentage has not tomer service. Panregional advertising platform, been determined yet. Spain media group The new communication campaign will Harrenmedia is opening a Miami office Intercom will continue to hold a majority be launched between spring and autumn of within the next two months. The new stake in Softonic. this year, with the change beginning in office will be serving the U.S. Hispanic and Digital River will help Softonic expand Spain in May. As stated last November by panregional markets. It will employ 4 to 5 in the U.S. In addition it will also provide Belen Amatriain, Telefonica Global persons, Engel Fonseca, Harrenmedia its expertise for an eventual public offering Marketing Director, this will not be a big Director of the Northern Cone (Mexico of Softonic. Headquartered in Barcerlona, bang change but rather a gradual process and U.S. Hispanic) tells Portada. Fonseca is Softonic had 2008 revenues of almost $50 which will address the needs of each coun- based in Mexico City. Until last Fall million and earnings of $12 million. It try. The name change will require replacing Fonseca worked at Punto Fox Mexico. employs more than 140 employees. everything from signage and billing forms Harrenmedia was founded in 2007 Softonic is the leading service provider to advertising and retail shop look. Changes and its main clients include Grupo for free and paid software downloads (its will include a newly redesigned company Carso, Nokia, Mexicana, Banamex, portfolio contains more than 100,000 logo, with softened lines for the green M in BMW, Axtel, Amex, Motorola, L’Oreal, downloadable programs) in Spain and the the Movistar name. Diageo and Sony. most visited site overall with more than 49 At the same time, Telefónica will create million unique users last November, the position of a brand guardian, who will according to OJD Interactiva, ahead of the be responsible for monitoring that its trade- AMÉRICA ECONOMÍA PARTNERS website of newspaper El Mundo (which mark is used correctly. Six brand guardians WITH BRAZIL’S SPRING recently launched an edition for the will be assigned by geographic area in Business Magazine AméricaEconomía, Americas headquartered in Miami), Brazil, Colombia, Argentina, Mexico, Spain which publishes several print editions and Marca.com (sports portal) Emagister (edu- and the United Kingdom. websites throughout Latin America is part- cation and employment site), Terra.es(por- nering with Brazil magazine publisher tal) and Weblogs (blog aggregator). Spring. Spring currently prints Rolling HOLIDAY INN OPENS FOUR NEW Stone and 30 industry magazines in Brazil. HOTELS IN LATIN AMERICA “Brazil has always been one of the most TELEFONICA PREPARES TO MAKE Holiday Inn , announced the opening important countries for AméricaEconomía as MOVISTAR ITS SINGLE BRAND IN of four new Holiday Inn and Holiday Inn it pertains to our distribution, content, LATIN AMERICA AND SPAIN Express properties throughout the region, as commercialization, digital Portuguese web- In January, a small group of advertising well as the signing of an additional new site and magazine. With that in mind, agencies pitched proposals to Telefonica on Holiday Inn in Buenos Aires, Argentina. AméricaEconomía has been publishing a how they would market Movistar as the The newly-opened properties —two in Brazilian edition in Portuguese for more company’s single trademark in Latin Brazil, one in Argentina and another in than 15 years but we decided to increase America and Spain. The agencies convened Honduras— all feature Holiday Inn's new and grow in 2010. To do this, we ranged from Spanish shops (Shackleton refreshed look and feel that are part of searched and found a leader in the and Mrs. Rushmore) and Spanish sub- IHG's ongoing $1 billion global relaunch of magazine business: Spring,” says Mica sidiaries of international groups (DDB, the Holiday Inn brand. The new look Selman, International Marketing Director Young & Rubicam and Publicis), to agen- ensures consistency, an increased level of at América Economía. cies without a presence in Spain (Crispin quality and service, and a new, more con- AméricaEconomía and Spring joined Porter and Wieden & Kennedy). temporary brand identity. forces in the fourth quarter of last year. News got out last November (although The Holiday Inn global brand Neither company has given more detailed the company made no official announce- relaunch was established to create a more information about the way their common ment), that beginning in 2010 Telefonica contemporary brand image as part of the plans will crystallize. would be known by the brand name drive to increase quality and consistency America Economia also launched a new Movistar, while the Telefonica name will across the global portfolio. The program websibe about MBA & Executive continue to be used in the company’s deal- focuses on arrival and welcome services, Education. The website features university ings with shareholders and employees, its guestroom, and guest bath comfort. The papers, an agenda of events and lectures in foundation and in its corporate governance. more than 3,300 Holiday Inns around the the region. In addition, it features inter- From 2010 forward, all company services globe are expected to have relaunched by views and info on education for executives. will carry the Movistar name: Movistar Fija the end of 2010. (landline telephony services), Movistar “The new properties are reflective of Banda Ancha (internet connection and Holiday Inn's new look and feel,” said DIGITAL RIVER BUYS 20% OF ADSL), Movistar Movil (mobile telephony Alvaro Diago, Chief Operating Officer SPANISH SOFTWARE DOWNLOAD services) and Movistar Television (pay TV (COO), Latin America and Caribbean FIRM SOFTONIC services, currently known as Imagenio). Region for IHG. “In our region, as Minneapolis, Minnesota, headquartered There will be only a few exceptions to the throughout the globe, the relaunch has been Digital River, a global provider of e-com- new name rule, such as O2 in several merce solutions, bought a minority but European countries and Vivo in Brazil, (continued on page 28)

26

News and Trends Panregional

ANALYSIS: RADIO, A NEW PANREGIONAL MEDIA AND ADVERTISING CATEGORY

The panregional media and advertising market has a new pla- programs for U.S. based clients, as a panregional media cate- yer and a new media type. Union Radio, majority owned by gory, radio has been almost absent. However, a concerted Spain's media conglomerate Prisa, launched its panregional radio sales effort (like Grupo Diarios Americas Latin American radio sales effort at the end of January. newspaper representation or the different cable networks ad sales operations in Miami) did not exist until January's pre- Union Radio is the leading Spanish radio network in the world. sentation by Union Radio. Focused on news, music, entertainment and sport, it evolves around five business areas: Radio, Music, Television, Digital According to Luigi Bellizzi, Communications Manager of Channels and Brand Development. It currently operates in 10 Union Radio in Miami, the panregional business model mana- countries (Argentina, Colombia, Costa Rica, Chile, Spain, ged out of Miami “may be the most appropriate vehicle for Mexico, Panama, Ecuador, Guatemala and the U.S.). It rea- marketers to reach their clients in the Americas.” Portada ches 26 million listeners and generates 21 million unique visits estimates that in 2009 the volume of the panregional adverti- to its websites each month. sing market was of approximately $275 million (The Panregional Advertising market is a relatively small subsec- A NEW CATEGORY tor of the overall Latin American Advertising market (valued Advertising sales into cable, print and digital media properties at approximately $20 billion in 2009).) Without this new major historically have been the bread and butter of the panregional radio effort, Portada expects the panregional advertising media market. “Panregional” is defined as advertising sales market to grow to an annual volume of $410 million by 2015 at into two or more Latin American countries. an average annual growth rate of 6.8%. Portada expects that by 2015 radio will have an 8% market share in overall panre- While Miami based media placement firms have purchased gional advertising sales. some radio capsules into Caribbean and South America radio

(continued from page 26) Exchange Commission. confirmed that this last transaction was an This positive development in the Latin asset Exchange for its interest in Bolivian extremely successful and well received by American and U.S. business diminished the newspaper group Inversiones Grupo owners and guests alike.” overall decline in Prisa’s profitability. In Multimedia Comunicaciones. The openings continue to further the 2009 overall EBITDA declined by 34% to presence of Holiday Inn and Holiday Inn $845 million. Express hotels, now represented in 18 coun- Both the Latin American and U.S. pub- CYNTHIA HUDSON, NEW SVP AT tries and territories throughout Latin lishing and radio divisions of Prisa con- CNN EN ESPAÑOL America and the Caribbean. tributed to earnings growth of Prisa in the Cynthia Hudson has been named sen- The Holiday Inn Buenos Aires Ezeiza Americas. Text book publisher Santillana ior vice president and general manager of —Airport will be the first Holiday Inn saw revenues increase by more tan 20% in CNN en Español and Hispanic strategy for hotel in Argentina's capital, complementing the Argentinean, Chilean and Venezuelan CNN/U.S. Hudson will relocate from an existing Holiday Inn Express and markets. Overall sales increased by 4.7% to Miami to CNN’s global headquarters in InterContinental Hotel. The Holiday Inn $557 million in the Americas, while EBIT- Atlanta, and report to Maddox. Buenos Aires is scheduled to open mid- DA increased by 16.4% to $139 million. In her new position, Hudson will over- 2011Analysis of Prisa’s Latin American Regarding Prisa’s international radio see newsgathering, editorial content, pro- Revenues operations, to which Grupo Latino de gramming, production, operations and per- Radio (the new Union Radio and stakes in sonnel, of CNN en Español, CNN en Mexican broadcaster Radiopolis belong to, Español RADIO and the recently launched SPAIN'S PRISA LATIN AMERICAN revenues decreased by 2.5% to $125 mil- CNNMexico.com, a joint venture Web site REVENUES lion, while EBITDA increased by 54% produced in conjunction with Grupo Spain’s Prisa (Madrid : increasing from $16 million to $26 million. Editorial Expansión. PRS) operating revenues in the United During 2009 Prisa closed several trans- States and Latin America increased by 21% actions in the U.S, including the sale of to $165 million in 2009, according to the 25% of Santillana to DLJ South American information provided by the company to Partners or the purchase of 12% of U.S. CMNV, the Spanish Securities and Hispanic broadcast network V-Me. Prisa

28 Mobile

6 Reasons why the Mobile Advertising Sector could take off in 2010 The economic and financial crisis that started in 2008 put a damper on both the advertiser demand for Hispanic mobile adver- tising and on the financing of some new start ups. Complexity is one of the main drawbacks: There are too many platforms, too many browsers, and too many markup languages to make mobile marketing easily scalable. From an advertiser's point of view, this is a production nightmare. However, here are 6 arguments in favor of the sector taking off in 2010.

1 Big in General Market they will receive a message for a free beverage offer at 7-Eleven stores. According to a recent report by researcher Borrell Department store retailer JCPenney also piloted a new Associates, ad spending on mobile finally broke through the mobile coupon program at select stores in the Houston, $1 billion barrier in 2009 and could break the $2 billion Texas area that allows customers to download and carry barrier in 2010. We at Portada think that these estimates are coupons on their mobile phones that can be scanned on the “higher side”. They equal 0.75% of overall US adver- directly from the phone's display screen at the register.” tising expenditures. Extrapolating this ratio to the Hispanic market, we get a total of between $30 to $35 million of Hispanic mobile advertising. 5 High Response Rates Advertisers can send offers to their subscribers via Smartphone Adoption... text messages. CPMs (cost per thousand) for these messages 2 can be $30 and higher. Recent campaigns that have used ...is driving mobile search adoption, so it stands to mobile texting to reach U.S. Hispanics have had high res- reason that as the population of smartphones increases so ponse rates. HBO PPV, for example, used HipCricket's will the local/mobile marketplace. The Smartphone offers a Hispanic Mobile Marketing Network to promote the better mobile Internet experience than other devices and Mayweather-Marquez fight and generate opt-ins for its interfaces. It makes it possible for the brands to obtain more mobile VIP club. Consumers were asked to text “PELEA” relevance in their marketing initiatives including reaching (FIGHT) for a chance to win a signed boxing glove. They new consumers for their products. received an SMS message inviting them to join the club - an offer on which 12.9% clicked. Of those, nearly 70% opted in. A similar Rite Aid campaign, which provided coupons 3G and Flat Rate Plans when consumers texted “MARCA” (BRAND), garnered a 3 7.6% clickthrough rate. Other brands running recent 3G coverage and the frequent launches of flat-rate Hispanic-targeted campaigns using HipCricket include plans will certainly improve the prospects of mobile adverti- Harley-Davidson, Arby's, and Cheetos. sing. “There are simultaneous movements influencing the rise in the audience and the content offerings on mobile. “Manufactures like Dell just announced their Smartphone 6 Media Properties are Adapting model. We can see a huge number of new devices in the market and this will warm up the competitiveness helping Hispanic media properties are also changing their the prices to fall down and accelerating the audience growth offerings to channel content to mobile phones. John Paton, on Internet Mobile”, says Riza Soares, Terra Latin America until recently CEO of ImpreMedia said at a recent conferen- and U.S. Ad Network Director. Terra's online ad network ce, that at ImpreMedia, each story of merit is first an SMS EZ-Target recently released a mobile advertising platform. alert. “We can send those alerts across our national network or geo-target them to our subscribers. We went from zero a year ago to 1.2 million mobile impressions in November Clients are Trying it Out 2010. That is 1.2 million tiny printed pages we didn't have 4 to print, each with its own small story and ad”. Retailer 7 - Eleven tried out a mobile campaign Online portals like Yahoo are making its Spanish- recently. Approximately 200 7-Eleven convenience stores in language counterpart, Mobile en Español, available on more San Diego tested a mobile marketing campaign through than 1,900 mobile device models. The Spanish-language Dec. 31, 2009, where consumers sent a text message to recei- mobile homepage is customized for the specific needs of the ve free beverages, the company reported last week. U.S. Hispanic consumer. During the test, residents sent a text with the word “FAST” or “RAPIDO” (“fast” in Spanish) to “72579.” Then 29

Food for Thought

What Books and Restaurants do the Latin Advertising and Media Shakers & Movers like? Find out here...

Portada asked Latin Media and Advertising the following three questions: 1. Which is your favorite restaurant in the city you live? 2. Which is your favorite Latin restaurant in the city you live? 3. What book would you recommend to your fellow Latin Advertising, Media and Business Professionals and why?

ALEX BANKS TREVOR HANSEN Managing Director for Latin CEO, EPMG America, ComScore

1. “In New York City, my favorite restaurant is Nino's Ristorante 1. “Favorite Restaurant: Phil's BBQ in San Diego” on 1354 1st Ave. Fantastic Italian food and world-class service.” 2. “Favorite Latin Restaurant: Santana's - not chic - just a 24 2. “Does Spain count as Latin? If so, the Despaña deli on hour place that serves the best Baja style food from hot carrots, Broome St. is the hands-down winner. If not, then I would say fish tacos to chili rellenos. We like it hot!” Azul Bistro in the Lower East Side of Manhattan. Authentic 3. “How to Win Friends and Influence People”, by Dale Argentine steaks in a really hip and exciting part of town.” Carnegie/1936. “The book is the original textbook for learning 3. “I am not a huge reader, but I recently finished a wonderful good communication skills —to summarize genuinely listen and book called “Futebol: The Brazilian Way of Life”. For anybody care about the other person. It's tragic that so many people like who is fascinated by Brazilian culture, their passion for football to talk— when what is needed most is good listening and pas- and the historic significance of the sport, I would strongly sionate, genuine participation.” recommend this book.”

GINA TINOCO MARLA SKIKO President, Gina Tinoco Media SVP, Director of Digital Innovation, Representation SMG Multicultural

1. “My favorite restaurant in Miami is Joe's Stone Crab” 1. “I love Japanese - Asian fusion cuisine. They have everything 2. “Favorite Latin restaurant: Chéen Huaye (a real Mexican- from sushi to cooked seafood to kobe beef. It's a fun, Chicago from Yucatán). It's hard to find a good Mexican in Miami so nightlife setting for dinner while also good for lunch as well. On when I found this little treasure neighborhood restaurant, I was top of that, they make some outstanding martinis!” the happiest!” 2. “My favorite is an Argentinean restaurant called Tango Sur. 3. “I liked “Consumer Behavior” from Henry Asael because it hel- The food is amazing and the atmosphere is cozy. It's also great ped me to understand consumer tendencies, how the consumer that you bring your own wine to have with dinner.” makes decisions, on the cognitive side since I'm psychologist.” 3. “I would recommend “The Search: How Google and its Rivals Rewrote the Rules of Business and Transformed our Culture”, by John Battelle. It's a good orientation into the history and inner workings of search and Google as a company. He provides great insight into the power of search at its earlier stages. It's RAFAEL URBINA an interesting read, especially for marketers looking to reach CEO, Batanga Latinos now as all areas of the digital arena are so important.

1. “Joe's Stone Crab in Miami (only in season —any month that has an “r” in it)” 2. “Francesco (best Peruvian in town)” 3. “Call Me Ted by Ted Turner”. “Very interesting life led by one of the most interesting and successful entrepreneurs the media business has known. Interesting stories about how industries get disrupted and new ones created by new technologies, ideas and people willing to put them to work.”

31 Advertiser Index

Company Page Website Contact Phone Number e-mail Address

V-Me 5 www.vmetv.com Michael Bollo (212) 273 4830 [email protected]

Maya 9 www.mayapublishinggroup.com Monica Angulo (305) 532-0204 [email protected]

Fox 11 www.foxnetworks.com Rafael Hernandez (305) 774-4184 [email protected]

En Español 15 www.en-espanol.com Michaelle Fastlicht (310) 850-9989 [email protected]

Eclipse 17 www.eclipse2.com Warren Zeller (973) 867-8327 [email protected]

Direct TV 19 www.directvla.com Jesus Mata (212) 205-0782 [email protected]

Ad-Tech 21 www.ad-tech.com Kristin Widergren (415) 464 8524 [email protected]

CVC 22 www.cvcaudit.com Tin Bingaman (800) 261-6391 [email protected]

USHCC 30 www.ushcclegislative.com NA NA NA

Al Día TX 35 www.aldiatx.com Rebecca Reyes (469) 977-3720 [email protected]

Starmedia 36 www.orangeadvertisingnetwork.com/ Alejandro Rodriguez (786) 497-6614 sales@.net americas

Many of our print advertisers also advertise on Portada's website. Links to their properties can be found at www.portada-online.com

To inquire about how to reach more than 80,000* highly qualified Advertising, Media and Business Professionals targeting Hispanics and , please call Marcos Baer at (212) 685-44 41.

* CVC Audit. And Google Analytics.

32 Statistics and Charts in Context

1 National Advertising Campaigns Targeting Hispanics and Account Movements

Comment Brand Media Used Period of Agency Comment Campaign

Casa Herradura El Jimador Tequila, NA 2009-2010 In House NA New Mix

Chrysler LLC. Jeep Online, TV, Outdoors 2009-2010 GlobalHue NA

Crown Imports Corona Extra, Multimedia 2010 Horizon Media NA Corona Light, Modelo Especial, Negra Modelo, Pacifico, St. Pauli Girl and Tsingtao

JP Morgan Chase Chase Hispanic newspapers 2010 Zubi Advertising/Ethnic Campaign to promote opening of Print Media Checking Accounts

Lifeway Foods Inc. Probiotic Kefir In-store promotional 2009-2010 In House NA Wellness Bars, advertising Lifeway's 8-oz, Probugs

Marshalls Marshalls NA 2010 LatinWorks Named LatinWorks as its Hispanic Advertising Agency

Nevada Secretary of Nevada Secretary of Multi-media 2010 Sawyer Miller Public outreach program designed State's Office State's Office Advertising/Axis Agency to ensure a complete and accurate 2010 Census.

Tecate Femsa/Heineken Online, Print, Mobile, 2010 SMG Boxing sponsorship ESPN Spanish TV, Radio and English content

The Idaho Meth The Idaho Meth TV, Print, Radio 2010 NA Campaign against methampheta- Project Project mine use among teenagers English and Spanish language

The Puerto Rico The Puerto Rico Television, Print and 2009-Jun. 2010 Ogilvy & Mather and De NA Tourism Company Tourism Company Online Webisodes La Cruz Advertising

U.S. Cellular U.S. Cellular NA 2010 Lapiz Advertising Lapiz won the Hispanic creative account

Ulta Beauty Ulta Beauty Radio, TV 2009-2010 In House NA

Unilever Degree Men TV, Radio, Online 2010 Mindshare TV: An eight-part series in ESPN (ESPN)

V&V Supremo Foods V&V Supremo Foods Television, Radio, Print 2010 Paco Communications “Ponle Amor A Tu Vida” campaign. and Online Media

Chicago White Sox White Sox Chicago White Sox Starting in San Jose Advertising San Jose was chosen White Sox March 2010 Hispanic Advertising Agency (print, online, radio and TV )

For more information about account movements, contacts and clients subscribe to Portada´s directory of corporate marketers and media buyers targeting Hispanics. Call us now at 1-800-397-5322!

33 Statistics and Charts in Context

2 What Media do Spanish-dominant Hispanics Prefer?

MEDIA % of Hispanic and Spanish dominant that used media below Read any Spanish Language Magazine, last 6 months 69.2 Radio: listened to any Hispanic format, last 7 days 62.1 Visited a Spanish Language website last 30 days 18.3 Television: watched a Spanish Language network last 30 days 70.7

SOURCE: 2009 Doublebase Mediamark Research & Intelligence weighted to Population (000) - Base: All

CONTEXT 69.2% of Hispanics read a Spanish-language magazine over the last 6 months, according to data by research firm MRI. Magazines are the clear leader when it comes to media that demand “undivided attention”, a category to which neither radio or TV belong to. In fact, even among all media types, magazines have a higher ratio than radio and only a slightly lower one than TV. Of course, the results are impacted by the fact that respondents were asked for different time frames they engaged with a particular media type (6 months for magazines, 7 days for radio, 30 days for website and TV). The relatively low ratio for usage of Spanish-language online media seems to be in line with the fact that most Hispanics not online yet are Spanish-dominant.

3 Hispanic Publications Spared of General Market Newspaper Circulation Malaise

City (Country) Publication FrequencyAvgr. For 6 Months 09/30/09 Avgr. For 6 Months 09/30/08 % Change Name Total Address Specific & Total Address Specific & Market Coverage Market Coverage

FRESNO, CA FRESNO BEE AVG M (M-F) 126, 398 139, 649 -9 %

FRESNO, CA VIDA EN EL VALLE (published by WED 159, 153 159, 153 -3.36 % Fresno Bee)

FORT LAUDERDALE, FL SOUTH FLORIDA SUN-SENTINEL AVG M (M-F) 153,563 183, 533 -16.00 %

FORT LAUDERDALE, FL EL SENTINEL (published by South FRI 64,761 99, 186 -2.35 % Florida Sun-Sentinel)

ORLANDO, FL ORLANDO SENTINEL AVG M (M-F) NA NA -12.00%

ORLANDO, FL EL SENTINEL (published by Orlando SAT 65, 199 78, 314 3.08 % Sentinel)

SAN ANTONIO, TX SAN ANTONIO EXPRESS-NEWS AVG M (M-F) NA NA -26.50 %

SAN ANTONIO, TX CONEXION (published by San THU 44, 421 47, 125 -2.41 % Antonio Express News)

NOTE: 2009 Changes in circulation during the six months ending in September 30, 2009 compared to the six month ending Sept. 20, 2008. As Filed With Audit Bureau of Circulations - Subject To Audit.

CONTEXT Portada compared the average circulation growth/decline of large general market dailies, Fresno Bee (McClatchy), South Florida Sun Sentinel (Tribune), Orlando Sentinel (Tribune) and San Antonio Express News (Hearst) with the circulation of Hispanic newspapers published by them, Vida en el Valle, El Sentinel Ft. Lauderdale, El Sentinel Orlando and Conexion. The table below compares circulation growth/decline data for all these newspapers. The percentage changes refer to changes in circulation during the six months ending in September 30, 2009 with the growth during the six month ending Sept. 20, 2008. In two cases, the Orlando and Ft. Lauderdale Sentinel, the circulation actually increased over the period, while there were low single digit circulation decline for Vida en el Valle and Conexion. The general market newspaper decline ranged from -9% (Fresno Bee) to -26.5% (San Antonio Express News).

34