2. Mission Statement
Our
goal
is
to
become
the
next-generation
digital
media
brand
for
U.S.
Latinos
and
Latin
American
audiences
creating
premier,
culturally
anchored
content
platforms
while
cultivating
viable
eCommerce
around
uniquely
Hispanic
cultural
experiences
and
underserved
needs.
Estelle G.Walgreen
EWalgreen@hs-news.com
2
Wednesday, June 19, 2013
3. Problem /Solution Estelle G.Walgreen
EWalgreen@hs-news.com
- Information gap between how Latinos get talked about in media and how Latinos view themselves
- No established digital brand Latinos can identify with
- Vacant niche: 21M online Latinos seeking culturally anchored platforms - market value $478M
- Market lag in meeting surging demand for English-preferred culturally relevant content
- No digital platform integrating Latino editorial content with culturally connected eCommerce
CULTURALLY
RELEVANT
CONTENT
CONTENT
TURNED INTOVALUE
AUTHENTIC
LATINOVOICE
HSN Solution
3
Problem
• 1% of evening news stories about Latino and not much of that is positive or fair – Study: UCLA Prof. Dr. Otto Santa Ana
• 53% of all online Hispanics prefer to read digital content that relates to their specific ethnicity – Study: comScore 2008
eMarketer Report
• Media stereotypes about Latinos fuel negative attitudes toward Latinos – Study: 2013 Latinos Decision
• There is a gap between how media portrays Latinos and how Latinos view themselves – 2012 National Hispanic Media
Coalition Study
Opportunity
• In digital no prominent Latino/a columnists; less than half of 1% of op-ed bylines in traditional media by Latinos –
Study : FAIR
• 66 % Hispanics say it is important to be recognized as Hispanic—through culturally relevant content. Study: ANA.Net
through comScore &Terra Networks research
• Online cultural anchors critical and language increasingly less important though English preferred – Study :
MultiCultural Agency 2013
• Latinos seek brands that empower their cultural relevancy Study :Building websites for Latinos / Nielsen Study: The
Hispanic Market Imperative
Wednesday, June 19, 2013
4. Market Validation Estelle G.Walgreen
EWalgreen@hs-news.com
$36.6 Billion* $7 Billion $420 Million
U.S. Hispanic
Media- Ad Spend
U.S. Hispanic
Online Media-Ad
Spend
$$$$$$$$$ $23 CPM** Hispanic Digital Leader
$$$$$$$ $10 CPM Online News Sites
$$$$$ $5 CPM HSN Average earned
$$$ $3.5 CPM Weighted Market Average
U.S. Digital Media-Ad
Spend
Source: Nielsen, IAB, AdAge* Zenith OptiMedia: 14% annual growth projected through 2015 ** Cost per ThousandViews
4
Wednesday, June 19, 2013
5. Market Size
“Latinos
are
most
engaged
and
dynamic
population
on
digital
space” - Nielsen
52 Million
20.8
Million
39.4
Million
$104
Million
U.S. Latino/Hispanic Market
U.S. Latinos Seeking
Hispanic Content Sites
Potential HSN
MarketValue
U.S. Latinos/Hispanics OnLine
Total Available Market Serviceable Available Market HSN Potential Market avg. $5 CPM
$1.2
Trillion
$21.6
Billion
$6.8
Billion
U.S. Latino Purchasing Power
U.S. Latino Online
eCommerce spend
avg. purchase $103.19
U.S. Latino
Cultural purchases
Avg. Quince cost
$15,000
Sources-‐
U.S.
Census,
IAB,
comScore,
Nielsen,
ClickZ5
Wednesday, June 19, 2013
6. Our Product
10 sections
40 verticals
30,000+ articles
eCommerce
Pin boards
Affiliate
Programs
User Fees
Original content
Contributors
Network
Home to leading
Latino community
voices
24,000
active
members
6
Wednesday, June 19, 2013
7. Competitive
COMPETITION Estelle G.Walgreen
EWalgreen@hs-news.com
Traditional
Media
Spanish
Language
Digital Media
Digital
Networks
Community
Newspaper
(online)
Landscape
English
Language
Digital
Latino
Magazines
(online)
______________________________________*
Traditional
Media:
HSN
;irst
to
market
amongst
traditional
media,
offering
latino-‐centric
news;
has
dominant
position
over
NBC
Latino
and
competitive
amongst
others.
Most
do
not
report
independent
numbers
* Spanish
-Language
Digital
Media:
Mature
Digital
Properties
af;iliated
w/traditional
media&
TV
networks.
Upstart
HSN
projected
to
eclipse
Telemundos
online
presence
within
3
years
* English
Language
Digital:
Direct
competitor
category
where
HSN
enjoys
number
1
position
* Community
Newspapers
Online:
HSN
has
a
dominant
market
position
over
many
English
and
Spanish
language
on-‐line
community
newspaper.
HSN
has
a
larger
online
audience
them
both
popular
Chicago
Spanish-‐Language
newspapers
* Digital
Networks:
Most
of
HSN
competition
comes
from
digital
networks
and
ad
networks
offering
Latino-‐centric
news
site.
HSN
has
a
dominant
position
over
all
of
them
except
for
Latinos
Post
which
it
expects
to
surpass
in
2013-‐14.
* Latino
Magazines:
HSN
has
dominant
market
position
over
leading
online
magazines,
including
The
“Leading
Latino
“Magazine
PODER
HISPANIC
Number1
Number 1
Number 1
Competitive
Top 10
7
Wednesday, June 19, 2013
8. Competitive Advantages
Market Leader Market Traction
Digital Asset
Optimization
Respected
Source
Strong Earnings
Potential
Sought After
Latino-Centric
Content
•
First
to
market,
quickly
garnering
critical
mass
•
Top
ranked
English-‐language
Hispanic
website
•
2013:
Primed
to
break
into
top
10
Largest
Hispanic
websites
per
comScore
(English
&
Spanish)
• Year-‐over-‐year
double-‐digit
audience
growth
•
Annual
increases:
page
views,
time
on
site,
direct
audience
•
20,000+
forum
members
•
Content
distribution
agreements
•
Content
used
by
premier
general
market
sites
as
their
“Preferred
Latino
Source”
•
Branding
across
social
platforms,
newsletters,
forums,
RSS
feeds,
mobile
feed
•
Authentic
independent
Latino
voice
•
Award
winning
•
High
Google
page
rank,
Klout
score
•
Award
winning
curation
of
leading
Latino
voices
•
Scalable:
monthly
burn
rate
@
$12,500
•
HSN
media
buy
provides
value,
reach
and
relevancy
•
Highest
CPM
rates
for
news
platforms
•
Operating
within
two
large
opportunity
markets:
Hispanic
and
Digital
•
Primed
for
lucrative
af;iliate
programs
and
user
fees
•
Over
1
M
monthly
ad
impressions
(US)
•
24/7
publishing,
breaking
news,
current
affairs
•
Vast
archived
content
and
evergreen
articles
•
Trendspotter
and
viral
content
capture
•
Extensive
contributors
network,
content
partnerships
8
Wednesday, June 19, 2013
9. User Acquisition Estelle G.Walgreen
EWalgreen@hs-news.com
Reader User/Fan Consumer
SEO,
social
media,
newsletters,
forums,
content
distribution,
mobile,
paid
search,
Latino-‐centric
content,
content
recommendation
engines,
word
of
mouth,
brand
development,
create
digital
network
Tech
talent,
recommendation
boards,
buzz
marketing,
targeted
email
lists,
unique
mobile
experiences,
user
rewards,
distributed
promotion,
enhance
audience
experience,
cultural
anchors
Dedicated
eCommerce
site,
PR,
strategic
partnerships,
sponsored
content,
internet
advertising,
quince
expos,
event
sponsorships,
quince-‐only
search
&
shopping
engine
9
Wednesday, June 19, 2013
10. Revenue/Business Model
Digital Advertising User Fees Affiliate Programs Quince E-Commerce
(In Development)
+
Af;iliate
Marketing:
Davids
Bridal,
TBDress,
Dress
for
Quinces
+
Sales
Partnerships
+
Sales
Commission
Agreements
+
Af;iliate
Marketing
:
Commission
Junction,
linkShare,
ShareaSale
+
NGL
Video
+
Job
Board/Indeed
+
Surveys
+
Content
Distribution
Agreements
+
CPM
based
ad-‐revenue
+
Real
Time
Bidding
Ad
Networks
+
In-‐house
Sales
Staff
+
Sponsored
Content
+
Embedded
Microsites
Hispanically Speaking News
Where Two Opportunity Markets -
Latino and Digital - Meet
10
Wednesday, June 19, 2013
11. Milestones-Projections
• 18-month market research prior to launch (January
2009)
• Launched Site (June
2010)
• Recognized for a Demographic Target of “Up-
Scale Latinos 25-59, Earning $50,000-
$100,000” (January
2011)
• Lean: (3) editorial staff w/ $12,500 burn rate
(July
2011)
• Named National Top Content Provider for
Hispanic Audiences (July
2011)
• 75% avg. Audience Growth since inception
(January
2012)
• Names One of Chicago Top Content Curators
(September
2012)
• Over 1M monthly ad impressions (December
2012)
• Achieve Google Page Rank of 5 (November
2012
)
• Raised 600K seed capital (January
2013)
• Full Site Upgrade for SEO Optimization(January
2013)
• 6.0M Page-views(April
2013)
• Strong traffic growth without additional
staffing
(May
2013)
1000000
2000000
3000000
4000000
5000000
2010 2011 2012 2013 2014 2015 2016
Monthly PageViews
Post Funding # Readers/Users/mo Earnings*
Yr 1
Yr 2
Yr 3
Yr 4
500,000
1,000,000
2,500,000
5,000,000
What We’ve Done Where We’re Going
$250,000
$765,000
$2.65 M
$5.6 M
MarketValue **
*Worst case scenario: digital ads/user-fees/affiliate programs but no eCommerce $
$2.2 M
$4.45M
$14.9M
$29.5M
** $7-10Value for monthly uniques plus 3x earnings
11
Wednesday, June 19, 2013
12. Funding Needed Estelle G.Walgreen
EWalgreen@hs-news.com
What we Need:
$400,000 to $500,000
3827,998154982 -6379,996924969
Mexican Peso
150000000.0-250000000.0
Costa Rican colon
817501.06-1362501.77
Peruvian Nuevo Sol
No Venezuelan
Bolivares
Please
For What:
+ 6 employees @ 18 months of Operation
+ Sales and Tech Talent Acquisition
+ User Acquisition & Marketing
+ Launch of Digital Media Enterprise Sites
+ Develop eCommerce Quince Site
OR
OR
How we’ll Take it:
NOT
12
Preferably Good Old U.S.
Dollars!
OR
Wednesday, June 19, 2013
13. Risk & Offset Estelle G.Walgreen
EWalgreen@hs-news.com
RISK OFFSET
Low barrier to entry; new
competitors
Develop name brand , high market penetration
ensuring continuous audience growth
Existing Competitors adding similar content
offerings
Heavy reliance on online ad revenue thats
cyclical, with CPM rates under pressure and
trending toward lower based mobile rates.
Slow monetization of site
Additional investment capital needed to continue
as ongoing concern
Leverage HSN’s unique Latino voice, cultural
anchors;move engaged user base to highly
engaged; technology to drive creativity
Diversify revenue sources,engage marketers
seeking Latino consumer,develop viable
enterprise around unique cultural experiences
Move focus from editorial to sales; hire digital
media sales staff to meet revenue targets,
marketing objectives
Seek external funding sources,partners
13
Wednesday, June 19, 2013
14. Exit Strategy Estelle G.Walgreen
EWalgreen@hs-news.com
0 200 400 600 800 1,000
(In Millions)
IPO
Aquisitions
Investor Buyouts
Digital Media; Activity 2011-1st Qtr. 2013
$912 M*
$700 M
$230 M
* EnterpriseValue
**Data does not IncludeYahoo acquisition Tumblr, May 2013, $1.1B, @
$9.47/monthly uniques
14
Wednesday, June 19, 2013
15. Meet The Players Estelle G.Walgreen
EWalgreen@hs-news.com
Estelle W.
Co-‐Founder,
Editor-‐in-‐Chief
Martin K
Programmer
Cristian G
Finance
Contributor
Kim K.
Co-‐Founder,
COO
La Communidad
Contributors
Nicole L.
Editorial
Dena M.
Health
Contributor
Elizabeth L
Education
Contributor
Jessie R.
Editorial
Alfredo L
Sports
Contributor
15
Wednesday, June 19, 2013
