Newspapers reach extends deeply into the Hispanic market

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1 Newspapers reach extends deeply into the Hispanic market Newspapers are uniquely positioned to grow your share in the Hispanic market A copy of this presentation can be found at:

2 National Association of Hispanic Publications Overview NAHP is a nonprofit trade advocacy organization Founded in 1982 Represents Hispanic publications serving 41 markets with a combined circulation of over 14 million NAHP member publications reach over 50% of the Hispanic households in the United States NAHP furthers the excellence, recognition and usage of Hispanic publications by providing them access to professional development opportunities to better serve and empower our Hispanic communities Alloy Access is the official rep firm of the NAHP

3 IMPORTANCE OF HISPANICS

4 Hispanics Fastest growing consumer segment 49+ million estimated Hispanic population today 1 in 6 will be Hispanic in 2010 census 1 in 5 will be Hispanic by 2020 census Hispanic annual income exceeds $700 billion in 2008 Top 20 markets represent 73% of Hispanic total income The Hispanic market is varied New immigrants and US residents across multiple generations Broad range of language usage from Spanish only to predominately English with majority of Hispanics having some fluency with both languages Varied Hispanic culture from 22 different countries with different customs, behaviors, and attitudes

5 Marketers still under invest in the Hispanic market even though they say it s important Only 4% of total marketing spending targets Hispanics This underestimates the economic power of the Hispanic market by a factor of 2X to 3X Near term marketing opportunity is to build share by spending at a level closer to segment s economic value Use of general market media narrows spending gap but doesn t eliminate it

6 CHANGING MEDIA LANDSCAPE

7 Hispanics increasingly embrace the Internet as they acculturate US Dominant 39%% Speak English at home Most media consumption in English US-born Mean age 37 Lived in US 36 year average Hispanic Dominant 35% Mainly speaks Spanish at home Most media consumption in Spanish Foreign-born Mean age 40 Lived in US 7 year average Bicultural 26% Speaks both languages at home Most media consumption in English Foreign-born and US-born Mean age 34 Lived in US 22 year average Source: AOL Hispanc CyberStudy 10 Conducted By Cheskin Research, Chart by: Nile Wendorf, EXTRA Bilingual Newspaper, Chicago, IL

8 Print usage approximates Internet usage across all acculturation levels Source: Synovate 2008 Diversity Study Chart by: Nile Wendorf, EXTRA Bilingual Newspaper, Chicago, IL

9 Hispanics are more influenced by the media than the general market Hispanics consistently rely on the media to sort out purchase decisions Newspapers significantly out perform radio as a purchase influencer Newspapers are preferred outlet for shaping Hispanic opinions PR Releases New Products Corporate Responsibility

10 The Internet increasingly moving towards multi-faceted entertainment content Source: Wired, August, 2010 Hispanic print opportunity is to change their content delivery consistent with changes in how their readers want to access news, information, and other content about their communities

11 CURRENT STATE OF HISPANIC NEWSPAPERS AND WHY

12 Hispanic newspaper segment remains stable with minimal impact from the recent economic downturn In aggregate, the number Hispanic newspapers has not materially changed over the last 3 years Weekly publications remain the backbone of the industry Dailies are an important factors in the larger markets Hispanic newspaper content is generally available no where else which builds reader loyalty and commitment

13 Hispanic circulation remains flat versus a 17% decline for daily Anglo newspapers over last 5 years Hispanic newspaper circulation remains stable over the last 4 years Expectation is for a return towards circulation growth as the economy improves Basis for circulation stability is the focused Hispanic content targeting local communities

14 Hispanic readers are younger than readers of Anglo daily newspapers 57% of the Hispanic newspaper readers are between the ages of 18 and 34 as compared to 19% of the Anglo daily newspaper readers 84% of Hispanic newspaper readers are below the age of 55 as compared to 57% of Anglo daily newspaper readers

15 Hispanics are highly engaged with their newspapers Hispanic newspapers enjoy an 86% readership as compared to 48% readership of Anglo daily newspapers Hispanics are also regular readers and spend a significant amount of time with their Hispanic newspaper of choice Source: NAA, Scarborough Research, Top 50 markets, 2007 Source: 2008 National Hispanic Readership Study, Alloy Access, New York, NY Graphic by: Nile Wendorf, Extra Bilingual Community Newspaper, Chicago, IL

16 Hispanic newspaper s readership strength rooted in its unique role as a community conduit Focus on the news, the needs, and the aspirations of the Hispanic community Acts as the primary funnel to engage the community Advertiser s benefit from deep reader involvement to build grass root support for their products and services Minority newspapers are an inseparable part of the local community. They deliver what no mass medium can: news that is specifically geared to the needs and concerns of individual minority communities. IPSOS Hispanic Presentation, May 2007

17 Hispanic newspapers can out reach radio in many markets at a competitive CPM THE HIDDEN REACH OF HISPANIC NEWSPAPERS

18 Hispanic newspapers target their distribution to where Hispanics live Hispanics tend to cluster into relatively well defined communities Pattern true for newer and well-established markets Hispanic newspapers leverage this pattern by aligning their distribution into those same areas Hispanic newspaper s competitive advantage is its ability to Target content to local neighborhoods Efficiently target advertising to those areas where Hispanics predominately live Leverage business relationships since many Hispanic newspapers are locally owned by people that live in these communities Advertisers benefit from a deep reach at a competitive CPM that builds the economic strength of Hispanic neighborhoods

19 80% of Hispanics live within 20% to 30% of the ZIP codes within a DMA Basic pattern is true across broad range of markets Even in markets with large Hispanic populations, this pattern of geographic concentration exists Hispanic newspapers target their content and advertising to those areas that connect Hispanics to their communities

20 Specific examples of Hispanic newspaper s reach and cost advantage High Hispanic Population: Los Angeles (45% Hispanic, 80% of Hispanics live in 45% of all ZIP codes) Buying 16 newspapers reach 61.5% of the population at a weekly cost of $78,730 versus buying 4 radio stations reaching 60.9% of the population at a weekly cost of $68,074. Mid Hispanic Population: Dallas (26% Hispanic, 80% of Hispanics live in 28% of the of all ZIP codes) Buying 8 newspapers reach 74.8% of Hispanics at a weekly cost of $34,261 versus buying 4 radio stations reaching 51.7% of all Hispanics at a weekly cost of $24,325 Low Hispanic Population: Washington DC (11% Hispanic, 80% of Hispanics live in 21% of all ZIP codes Buying 4 newspapers reach 67% of Hispanics at a weekly cost of $13,153 versus buying 4 radio stations reaching 39% of all Hispanics at a weekly cost of $22,105

21 Los Angeles Key Facts Hispanic DMA Rank 1 Hispanic Pop 3,196,000 Hispanic % of Total 45% 80% live in % of ZIPs 45% Los Angeles Newspapers Radio TV # of Papers/Stations Net Cost $78,730 $68,074 $97,285 Gross Rating Points Reach 61.5% 60.9% 65.9% Frequency

22 Los Angeles Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

23 Dallas Key Facts Houston DMA Rank 6 Hispanic Pop 777,000 Hispanic % of Total 26% 80% live in % of ZIPs 28% Dallas Newspapers Radio TV # of Papers/Stations Net Cost $34,261 $24,325 $60,970 Gross Rating Points Reach 74.6% 51.7% 46.1% Frequency

24 Dallas Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

25 Washington DC Key Facts Hispanic DMA Rank 17 Hispanic Pop 305,000 Hispanic % of Total 11% 80% live in % of ZIPs 21% Washington DC Newspapers Radio TV # of Papers/Stations Net Cost $13,153 $22,105 $33,416 Gross Rating Points Reach 67.0% 39.2% 9.9% Frequency

26 Washington DC Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

27 Newspaper s has strong reach in all markets and compares favorably to other media

28 Key Point Summary Hispanic newspapers are very different from their general market counterparts Strong circulation trends Young engaged reader A unique relationship with their readers drives the strength of Hispanic newspapers Exclusive local content Bond of trust around news, shopping, and information Hispanic newspapers reach deep into the market ZIP code distribution places Hispanic newspapers where they do the most good Superior reach to radio with a visual platform Very competitive CPM Lower absolute cost than local radio and TV

29 Contributors Nile Wendorf Associate Publisher Greg Anthony Senior Vice President, Sales mwww.alloymarketing.com A copy of this presentation can be found at: Data Sources Synovate Latino Print Network Editor and Publisher Information Resources, Inc Readership Institute Center for Hispanic Marketing Communication

30 APPENDIX ADDITIONAL MARKET SPECIFICS

31 Miami Key Facts Hispanic DMA Rank 4 Hispanic Pop 840,000 Hispanic % of Total 46% 80% live in % of ZIPs 44% Miami Newspapers Radio TV # of Papers/Stations Net Cost $40,916 $67,366 $107,171 Gross Rating Points Reach 49.1% 56.6% 97.5 Frequency

32 Miami Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

33 Houston Key Facts Houston DMA Rank 3 Hispanic Pop 843,000 Hispanic % of Total 33% 80% live in % of ZIPs 27% Houston Newspapers Radio TV # of Papers/Stations Net Cost $33,741 $65,030 $58,874 Gross Rating Points Reach 67.7% 71.6% 35.1% Frequency

34 Houston Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

35 San Francisco Key Facts Hispanic DMA Rank 7 Hispanic Pop 621,000 Hispanic % of Total 33% 80% live in % of ZIPs 27% San Francisco Newspapers Radio TV # of Papers/Stations Net Cost $16,669 $34,170 $71,797 Gross Rating Points Reach 48.3% 51.4% 28.8% Frequency Sources: Hispanic Population: Nielsen Claritas, Hispanic Circulation: Reported by publications Radio: Arbitron, TV, Nielsen

36 San Francisco Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

37 New York Key Facts Hispanic DMA Rank 2 Hispanic Pop 1,824,000 Hispanic % of Total 21% 80% live in % of ZIPs 21% New York Newspapers Radio TV # of Papers/Stations Net Cost $63,620 $68,074 $81,233 Gross Rating Points Reach 54.5% 54.4% 45.2% Frequency

38 New York Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

39 Chicago Key Facts Hispanic DMA Rank 5 Hispanic Pop 782,000 Hispanic % of Total 20% 80% live in % of ZIPs 22% Chicago Newspapers Radio TV # of Papers/Stations Net Cost $26,860 $38,496 $51,383 Gross Rating Points Reach 52.9% 66.5% 50.8% Frequency

40 Chicago Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

41 Philadelphia Key Facts Hispanic DMA Rank 18 Hispanic Pop 252,000 Hispanic % of Total 8% 80% live in % of ZIPs 22% Philadelphia Newspapers Radio TV # of Papers/Stations Net Cost $10,471 $10,844 $55,351 Gross Rating Points Reach 69.0% 16.7% 43.8 Frequency

42 Philadelphia Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

43 Milwaukee Key Facts Hispanic DMA Rank 42 Hispanic Pop 66,000 Hispanic % of Total 8% 80% live in % of ZIPs 23% Milwaukee Newspapers Radio TV # of Papers/Stations Gross Cost $1,257 $6,069 $20,712 Gross Rating Points No Nielsen data Reach 20.2% 29.8% Frequency Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

44 Milwaukee Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

45 Seattle Key Facts Hispanic DMA Rank 27 Hispanic Pop 147,000 Hispanic % of Total 8% 80% live in % of ZIPs 35% Seattle Newspapers Radio TV # of Papers/Stations 2 2 Net Cost $3,744 $3,727 Gross Rating Points No Nielsen Data Reach 41% 32.5% Frequency Net CPM $25.60 $11.94

46 Seattle Hispanic newspaper distribution in key Hispanic ZIP codes Sources: Hispanic Population: Nielsen Claritas Hispanic Circulation: Reported by publications

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