Hispanic Media Insights: From Advertising To Online Behavior

transcript

Hispanic Media Insights Webinar:

From Advertising To Online Behavior

July 31, 2012

Hispanic Media Insights Webinar: From Advertising To Online Behavior Today We’ll Cover…

Promoted by:

• Kantar Media Overview

• Kantar Media Intelligence:

Advertising Insights

• A Look at the Creative

• Kantar Media Compete:

Online Behavior Analysis

• Our Conclusions

• Your Questions

• N °1 worldwide in advertising

monitoring (adex and creatives)

• N °1 worldwide in single source market

research with TGI

• N °1 in TV audience measurement

systems (TAM) outside US

• N °1 worldwide in news monitoring

Helping clients master the

world’s multimedia momentum

Kantar Media

A World Leader in Marketing, Media and Advertising Information

Globally, we measure:

96% of all ad expenditures

2M consumers’ online behavior

1 million digital TV HH’s

Promoted by:

Kantar Media

Our Business Units

Audiences

Marx Intelligence CMAG

Compete Professional Health Consumer Health SRDS

Advertising Expenditure,

Occurrence & Creative

US Political

Advertising Intelligence

FSI/Coupon

Promotion Intelligence TV Audience Analytics

from Return Path Data

Physician’s Media

Consumption Study

Consumer Healthcare

Media Intelligence Media Rates/Contacts

Search Engine Digital Marketing

& Analytics Intelligence

Promoted by:

Audiences

Kantar Media Intelligence

Leading Provider of Marketing Intelligence Since 1926

www.KantarMediaNA.com

Globally, we measure:

96% of all ad expenditures

• Global network in 50+ countries

In the U.S. we monitor:

• Traditional and digital media

• 3.5 million brands

• $140 billion in ad investments

• 750 million ad occurrences per year

• 2 million occurrences daily

Promoted by:

We Track A Diverse Range of Media

Promoted by:

General Market Hispanic Market (Spanish Language)

Television Television

• Network, Cable, Syndication, Spot • Network (4), Cable (4), Spot (77)

Magazine Magazines (17)

• Consumer, Sunday, Local Mkts., B2B

Newspaper Newspaper

• National, Local Markets • 48 papers in 17 markets

Digital Digital

• Internet Display, Search • Internet Display (56 sites)

• Network, National Spot, Local Mkts.

Outdoor

U.S. Monitoring Coverage

Promoted by:

• All data from Kantar Media unless otherwise noted

• Definitions

– Unless specified, figures are for Hispanic Market

– “Hispanic Market” = Spanish language media

– “General Market” = English language media

• 2012 ad spend data – actual figures through April

• “2012 (e)” = 2011 dollars X 2012 YTD growth rate

Notes On Ad Spend Data

We estimate ad expenditures based on rate card costs

Media Spending Trends

Promoted by:

10.0% 7.9%

-12.4%

0.9% 1.7%

2009 2010 2011 2012 YTD

Hispanic Mkt General Mkt

Ad Spend Growth Rates.

All Media

Source: Kantar Media

Promoted by:

10.7% 8.3%

1.9% 5.5%

2009 2010 2011 2012 YTD

Hispanic Mkt General Mkt

Ad Spend Growth Rates.

Television

Source: Kantar Media

Promoted by:

2008 2009 2010 2011

Hispanic TV

# of Unique Advertisers 912 911 972 942

Retention Rate 59% 51% 55% 51%

English TV

# of Unique Advertisers 7,155 7,206 7,218 7,281

Retention Rate 56% 56% 58% 58%

TV Advertiser Retention

National TV Channels

Promoted by:

2008 2009 2010 2011

Index of # of Advertisers

Spot TV

Magazine

Newspaper

Digital

Non-TV Media: Advertiser Contraction

Leading Advertisers

Promoted by:

Rank Parent Company

($ Millions)

Change

1 Broadcasting Media Partners $132.5 $372.3 181.0%

2 Procter & Gamble $197.7 $220.6 11.6%

3 Dish Network $90.4 $154.7 71.1%

4 Verizon Communications $137.9 $114.6 -16.9%

5 McDonalds $117.3 $114.2 -2.7%

6 AT&T Inc. $132.1 $110.4 -16.4%

7 General Mills $91.8 $97.0 5.7%

8 Toyota Motor $79.9 $86.2 7.9%

9 Kraft Foods $36.3 $83.7 130.6%

10 General Motors $102.5 $79.4 -22.5%

TOTAL $1,118.4 $1,433.1 28.1%

Top 10 Parent Companies

Hispanic Market: 2011

Promoted by:

Parent Company 2011 $

(Millions)

1 AT&T $52.4 -34.7%

2 Broadcasting

Media Partners $34.4 -1.1%

3 DirecTV Group $33.1 -93.6%

4 Time Warner

Cable $31.5 +14.7%

5 Comcast $26.0 +27.5%

Top 5 Parent Companies

Local Media

Spot TV

Parent

Company

(Millions)

1 Sears Holdings $7.4 -1.2%

2 Novartis AG $5.2 14.9%

3 Interbond Corp. $4.6 -9.2%

4 Target $4.4 +19.0%

5 Macys $3.4 +20.8%

Local Newspapers

Promoted by: 2012 Budget Increases

Hispanic Market

+114% +48% +43%

+36% +26% +25%

Category Trends

Promoted by:

Rank on

2011 $ Category

(Millions)

% Change

2012 YTD

% Change

1 Telecom $ 823.7 -7.8% -10.4%

2 Direct Response $ 554.0 -3.6% +7.1%

3 Automotive $ 477.2 +18.2% +39.8%

4 Financial Svc $ 439.4 +177.5% +135.1%

5 Food & Candy $ 389.0 +4.3% +27.8%

6 Restaurants $ 356.1 +0.2% +3.8%

Top Categories

Promoted by: Financial Service Gains Driven By One Advertiser

(Million)

(Million) Difference

Total Category $156.6 $437.4 +$280.8

Univision Pre-Paid

MasterCard $13.3 $284.8 +$271.5

All Other $143.3 $152.6 +$9.3

Jan-Apr 2011: $28 Million

Jan-Apr 2012: $117 Million

Promoted by: Telecom Category

$354.0, 43%

$284.9, 35%

$179.0, 22% Wireless

TV Providers

2011 Ad Spend

(Millions)

2011 2012 YTD

Wireless -6.0% -6.1%

TV Providers -6.4% -27.1%

Segment Growth Rates

What About Automotive Ad Spending?

Promoted by:

2009 2010 2011 2012 (e)

Factory

Dealers

Automotive

Spending Has Rebounded On Improved Vehicle Sales

Vehicles Sold

Ad Spend

Promoted by:

Advertiser 2011

(Millions)

2012 (e)

(Millions) % Change

Toyota $85.4 $94.3 10.5%

Chevrolet $70.6 $73.7 4.4%

Ford $62.5 $85.0 36.0%

Nissan $32.4 $33.8 4.6%

Dodge $26.7 $64.3 141.1%

Volkswagen $22.7 $34.5 51.9%

Honda $20.8 $36.1 73.2%

Top Factory Advertisers

Record Setting Spending Pace

Promoted by:

• Budgets concentrated around fewer models as compared to General market

• Majority (and growing) share of spend allocated to passenger cars

• Ad spending for hybrid and electric models has been minimal

• Dodge, Ford, VW and Honda budgets on pace to set a record

Factory Automotive

Hispanic Market Spending

Quick Service Restaurants

Promoted by:

2008 2009 2010 2011 2012 (e)

Hispanic Market Ad Spending

Quick Serve Restaurants

Promoted by:

Advertiser 2011

(Millions)

2012 (e)

(Millions) % Change

McDonalds $113.4 $113.3 -0.1%

Burger King $26.1 $30.9 +18.5%

Sonic $21.2 $18.8 -11.5%

Subway $20.4 $20.9 +2.3%

Wendy's $16.0 $17.0 +5.9%

Top QSR Advertisers

1. 2. 3. Hisp.

Burger 8% 11%

Chicken 12% 10%

Bkfst. 16% 16%

Cold Bvg. 19% 17%

McDonalds Burger King Sonic

Product Advertising Strategies

Hispanic vs. General Market: 2011

Burger 55% 46%

Chicken 32% 14%

Cold Bvg. 8% 8%

Kid Meal 1% 8%

Burger 1% 8%

Sandwich 11% 17%

Cold Bvg. 69% 48%

Breakfast 0% 8%

How to read: McDonalds spent 8% of its Hispanic Market ad spend on Burger products

Promoted by:

$0 $5 $10 $15 $20 $25 $30

2011 Hispanic Market Spend (millions)

Hispanic vs. General Market Ad Spend

Burger King

Popeye

Jack In Box

Bell Subway

Hispanic Creative Analysis

Promoted by:

Advertiser Grand Total Has Price Point No Price Point

McDonalds Restaurant $18,208.8 35.56% 64.44%

Burger King Restaurant $6,957.4 84.23% 15.77%

Subway Restaurant $6,373.2 50.38% 49.62%

Sonic Restaurant $3,803.0 0.00% 100.00%

Wendy's Restaurant $3,414.7 35.22% 64.78%

Hispanic Q1 2012 TV Creative Analysis Snapshot of Top 5 Advertisers

47% of QSR TV Expenditure in Q1 was supporting price points

Promoted by:

• The Burger King product with the most support in Hispanic TV in Q1 2012 was the BK Value Menu, offering a range of menu items for $1.

• Kantar Media AdScope tracked the below :15 spot running 1680 times across Network, Spot, and Cable in Q1.

Creative Snapshot – Burger King Hispanic Price Point Advertising

The ad consists of all product shots with an announcer talking about the Value Menu from Burger King

and all the different products available for only one dollar.

Promoted by:

Creative Snapshot

McDonald’s Hispanic

The spot features a man marveling at the big taste of the new Chicken McBites. The announcer tells us that

the product is made from premium chicken breast and is available for a limited time. As with most of the

McDonald’s TV spots running in this time period there was no price point.

• McDonald’s Top Weighted Hispanic

TV Creative in Q1 2012 supported

the new product Chicken McBites

and ran 1774 times across Cable,

Network, and Spot.

Promoted by: Breaking Creative – July 2012 McDonald’s “Win When USA Wins Gold” Olympic Promotion

• McDonald’s broke both General Market

and Spanish-Language creative

supporting the promotion on July 23.

• To tie in with the Olympic ideal of a

healthy lifestyle McDonald’s will have

game pieces on their menu items only

with 400 calories or less.

• The TV spots feature USA Olympic

athletes practicing for their events with

help from consumers hoping to win

prizes.

Promoted by: Creative Snapshot – McDonald’s Olympic Promotion

Hispanic Creative Breaking July 23

The creative talks about when you purchase menu items of 400 calories or less you get a chance to win

a trip to London and cash prizes.

• USA Boxer Marlen Esparza is shown

working out, helped by a man eating

McDonald’s French Fries.

• :15 and :30 versions.

• Spanish and English language

versions.

Kantar Media Compete

We are passionate about

understanding

consumers to inspire

great marketing.

• Provide brands, agencies and media owners with insights across consumers’ path-to-purchase

• Insights focus on the intersection of channels and media

• Largest behavioral panel, linked with additional consumer data

• Partnerships across the Kantar family provide broad capabilities

Promoted by:

• Largest behavioral and attitudinal panel in the US, UK and France

• Multiple data sources ensure diversity and representativeness

• Patent-pending meter provides a web-wide view of consumers

• Behavioral classifiers create rich segmentation and KPIs across the path-to-purchase

• Offline and cross-media views enabled via Kantar and third-party data partnerships

Massive Behavioral Panels

Promoted by:

An Overview of the Online Hispanic Shopper

Hispanic shoppers indexed to the internet browsing population

Promoted by:

Promoted by: There is Untapped Potential in the Hispanic Market

32% 35%

FinancialServices

Travel Auto Telecom Retail

Hispanic Asian African American

Share of Hispanic shoppers engaging with these categories online,

May 2012

Promoted by: Hispanic Automotive Shoppers Visit 3rd Party Sites More Heavily than OEMs

34% 37%

Online SalesOperations

AutomotiveBrand Sites

Parts & Service Third PartySites

Share of Hispanic Auto shoppers engaging with these categories

online, May 2012

Promoted by: Hispanic Telecom Shoppers Most Likely to Engage with Wireless Sites

2% 10%

59% 63%

Software PC Laptop ConsumerElectronics

Cable Wireless

Share of Hispanic Telecom shoppers engaging with these categories

online, May 2012

Promoted by: T-Mobile, the Only Carrier to Increase Total Online Traffic to Spanish Section of Website

AT&T Sprint T-Mobile VZW

Q2 2011 Q2 2012

-38% -32% +67% -23%

Year-over-year percentage change in volume of Spanish Language

Wireless traffic, Q2 ’12 vs. ‘Q2 ‘11

Compete Clickstream

Promoted by:

This includes Attracting New and Retaining Existing Customers to Spanish Language Section of Site

AT&T -31% -49%

Sprint -40% -27%

T-Mobile +89% +46%

VZW -37% +14%

Prospects Customers

Compete Clickstream

Year-over-year percent change in volume of traffic to Spanish

Language section of Wireless sites Q2 ’12 vs. Q2 ’11

Promoted by: T-Mobile Hispanic Oriented Ads

T-Mobile Hispanic oriented ads are centered around family with

messaging focused on plans, price and features

Compete Summary

• Prepaid has grown increasingly vital to T-Mobile

• Less expensive Smartphone's and plans than other carriers including prepaid

• Strong Spanish language content on site

• Have they been catering to Hispanics longer?

• Do they have a younger internet savvy demographic compared to other carriers?

• Has there been a change/increase in Hispanic oriented advertising in 2012?

Kantar Media

Hispanic Media Insights: From Advertising To Online Behavior

1. Ad Spend is trending upwards.

2. Leading blue chip advertisers are

increasing their investment.

3. Category spending growth patterns are

tracking the General Market.

4. The Hispanic online population share

many of the same behaviors as the

general population- but they also distinctly

seeking out content that is culturally

relevant.

5. As overall Hispanic ad spending is

growing, online destinations should benefit

from the increased budgets.

Promoted by: Q&A

Hispanic Media Insights: From Advertising To Online Behavior

Thank You!

Master The Momentum of Multimedia

www.KantarMediaNA.com

Jon Swallen

Kantar Media Intelligence

Jon.Swallen@kantarmedia.com

Yaakov Kimelfeld

YKimelfeld@compete.com