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CULTURE
                  SUM M ER 2011




The 2010 Census
& the Rise of
Multicultural
Welcome
    Bienvenidos
          Only a few years ago, I spent a great deal of time talking to people about the new
          realities in the U.S. consumer market. Some of it was based on my own perception
          and thinking about what was happening in the U.S. Hispanic market. Then there were
          two major Spanish-language television networks, a handful of local radio stations, just
          a few dailies and a limited number of online sites catering to Hispanic consumers.
          Many marketers weren’t yet convinced of the opportunity. We heard such things as
          “we can reach Hispanics through general market media” and my favorite “Hispanics
          aren’t spending.” That was 1999. Today, with the 2010 Census out, marketers have
          been forced to rethink their strategy toward the new realities shaping the U.S.
          consumer market.

          What’s driving this long-awaited shift? The sheer numbers, of course. Multicultural
          groups are not only the fastest growing segment of the market, but they are quickly
          creating a multiculturally-influenced general market.

          The size of the U.S. Hispanic market alone grew by nearly 50% since 2000 to more
          than 50 million people, or nearly 16% of the total population. The Census data
          also reflects how minorities continue growing, now comprising 35% of the total
          U.S. population.

          The new estimates reveal a country of larger and younger minorities, with Hispanics
          having the greatest growth rate due to their higher birth rates. Hispanics represented
          more than half of the total growth in the U.S. population since the last Census and the
          larger portion of this increase, two-thirds, was to births, not immigration, which has
          actually fallen off to some degree in recent years.

          For the moment, non-Hispanic whites number approximately 200 million, but are
          14% less than their percentage in 2000, when the country’s white non-Hispanic
          population was calculated to be 195 million. This signals a major transformation.
          One that we have not seen since the post-World War II Baby Boom.

          The country is taking on an ever more diverse character and even more so when one
          takes into account that Americans are defining themselves more and more as belonging
          to different cultural groups.

          The question we need to ask is... will this transformation finally end our fascination with
          thinking about the total market in segments? Only when we honestly look at the new
          realities of the market, will we truly grasp the vast marketing and business opportunities
          that exist.




          Armando Azarloza
          President
          Axis

2
What’s Inside




                     4                             6                                   8
Growing Trends:               Culture Movement                  Move Over,
Census Highlights             Marketing                         Baby Boomers
Demographic Shifts




                    12                           14                                   16
Why Our Role as               Bilingual & Bicultural            Reaching Mexicans
Multicultural                 What it Means for Brands          in The U.S.—
Marketers Matters                                               The Facts Behind it




10                   20                    21                       22
Case Study:          Media News —          Can’t-Miss Digital       The Infamous
Kraft Foods          May 2011 Upfronts     Conferences              Question #7




                                                                                           3
Growing Trends:
    Census Highlights
    Demographic Shifts
    Future growth in the digital population will come from minority audiences.

    The overall growth of the online population in the U.S. is    While the census has consistently projected strong growth
    stagnating, and most future growth will come from increases   in minority populations through 2050, the new figures for
    in minority audiences including Hispanics, Blacks, seniors    all races may change more than projected. The census’
    and children.                                                 open-ended questions on racial and ethnic background —
                                                                  including a write-in answer for filers who did not feel their
    Hispanics are the fastest-growing segment of the U.S.         background could be explained by a single check-box
    population, and eMarketer expects the Hispanic online         answer — caused much confusion and comment. It is
    population to grow by nearly 10 million people between        still unclear how respondents identified themselves and
    2010 and 2014. Next year, eMarketer forecasts                 their families.
    32.2 million Hispanics, or 62.9% of the U.S. Hispanic
    population, will be online. The results of the 2010 census
    could push those estimates up even further.




4
The Black internet user population is somewhat smaller but
also on the rise. eMarketer forecasts nearly 26 million Blacks
will go online at least monthly in 2011, for a penetration rate   U.S. Hispanic Internet Users and Penetration,
of 66.9%. By 2014, 72.3% of Blacks will be online.                2009-2014 (millions and % Hispanic population)
Marketers who are beginning to up their budgets as they                                                                                     39.2
                                                                                                                             36.8         (70.0%)
put the recession behind them will do well to remember that                                                    34.3        (67.6%)
                                                                                                 32.2        (65.0%)
minority groups are only increasing in importance online.                         29.6         (62.9%)
Advertisers must remember they make up an ever-greater               27.2       (59.5%)
                                                                   (56.5%)
portion of the audience of all media, but spending on
Spanish-language and African-American media is also
a must. According to research from the Association of
National Advertisers, more than half of U.S. marketers will
be increasing multicultural spending on both traditional and
newer media.


According to research                                                2009         2010             2011        2012          2013          2014

from the Association                                               Note: can be of any race
                                                                   Source: eMarketer, March 2010

of National Advertisers,                                           114300                                                      www.eMarketer.com



more than half of U.S.
marketers will be increasing                                      Change in Marketing Spending on All
multicultural spending                                            Multicultural Media vs. Newer Media
                                                                  Platforms According to U.S. Marketers, 2010
on both traditional and                                           % of respondents
newer media.                                                                 Spending less                                Spending less
                                                                             13%                                          9%

“These audiences appreciate genuine efforts by marketers
to understand them and communicate messages that
resonate, which means more than including a                                             Spending                                   Spending
demographically diverse cast in a mainstream television                 Spending        more                     Spending          more
                                                                        same            56%                      same              56%
commercial or high gloss magazine ad,” said Lisa E.                     31%                                      35%
Phillips, senior analyst at eMarketer. “Brands that ignore
the multicultural audience will find themselves ignored by
a powerful segment of the population.”
                                                                        All Multicultural media                        Newer media

                                                                   Note: n=54; change vs. 2009; *company websites, email marketing, mobile, online
                                                                   ads, online games, online video, paid search, RSS, SEO and social media (blogs,
                         ©2010 eMarketer Inc. All rights           location-based services, podcasting, Twitter, webinars, wikis, virtual worlds)
                         reserved. www.emarketer.com               Source: Association of National Advertisers (ANA) survey provided to eMarketer,
                                                                   Nov 22, 2010

                                                                   122174                                                      www.eMarketer.com




                                                                                                                                                     5
Culture Movement
    Marketing
    What is it and why is it the most effective marketing
    communications approach for your brand?

    Culture Movement Marketing is about identifying and aligning brands with ideas that are generating
    new movements in culture. These ideas and the movements they spawn are powerful because they
    appeal to people on a personal level. They captivate and make them want to belong, and more
    importantly, they motivate people to want to share the cultural movement with others — think urban
    car culture, fusion cuisine, hip hop/reggaeton, among many others.

    The strength of cultural movement marketing is that it starts and ends with what consumers like
    and are most compelled by in their daily lives. It’s not about creating campaigns that seek to
    influence short-term changes in purchase behaviors, rather it’s about aligning brands longer-term
    with large movements that consumers already espouse or want to belong to.

    At Axis, that’s exactly what we do. We help identify key cultural movements on the rise with
    multicultural consumers; we then uncover groundbreaking insights that help us create big ideas
    and communications strategies to organically link our client’s brands to these cultural movements.
    It’s that simple; we focus on movements that inspire multicultural consumers, and we find creative
    ways to help make a brand an authentic part of that movement so that it can profit from as many
    aspects of it over time.



    The strength of Culture Movement Marketing is
    that it starts and ends with what consumers like
    and are most compelled by in their daily lives.




6
7
Media News:
    Move Over,
    Upfronts 2011
    Baby Boomers
    The top similarities between these two cultural movements are religion, use of
    technology (tech savvy), popularity among sports, movie-going and food.




                                                       However, the Baby Boomers differ from multicultural
                                                       consumers because they are much older, the majority
                                                       are white males, have smaller average household
                                                       sizes, are more educated, are less brand loyal and
                                                       not nearly as receptive to ads.

                                                       A multicultural movement is transforming America in
                                                       many ways. Not since the birth of the Baby Boomer
                                                       generation have we seen such a profound and
                                                       dramatic shift in the demographics of the country.
                                                       With the end of post-war baby boom, we are seeing
                                                       far reaching changes in society and the marketplace.
                                                       In food choices — salsa outsells ketchup, tortillas
                                                       are preferred over white bread, and the list goes on.
                                                       Multicultural groups are also fusing foods together
                                                       to create a new and modern cuisine such as Korean
                                                       BBQ & Mexican tacos, and Chinese and Cuban
                                                       dishes (Chino Latino). Entertainment is leveraging
                                                       multicultural celebrities like never before; just watch
                                                       Jennifer Lopez and Christina Aguilera judging on
                                                       American Idol and The Voice. Athletes like Kobe
                                                       Bryant, Alex Rodriguez and Matt Kemp are the
                                                       authority for all. And music has become universal,
                                                       appealing to all cultures; just ask the fans of Ricky
                                                       Martin, Rihanna, Neyo and Pitbull. This impact is
                                                       moving the economy. For years, brands have been
                                                       adjusting their marketing to speak to the Baby
                                                       Boomers. Today, however, they are re-evaluating




8
their strategies in order to compete in the new America.
The assumptions of the past are giving way to the
transformational reality that is taking place. Marketers
have to recognize the rise in multicultural consumers,
particularly Hispanics and the emergence of millennials
as the next generation, with significant influence in the
marketplace. The right way for brands to engage with
multicultural audiences is to understand their culture. It’s
important that they feel connected to a brand’s message.
Now more than ever, a brand has to know what’s relevant
to the target consumer in order to create relatable ads
and messages, and represent the target in all its marketing    The right way for
efforts. An essential part of the strategy is to get behind
movements and concerns that mean something to                  brands to engage with
consumers and address the issues of lifestyle, culture
and language. Get involved in the multicultural community
                                                               multicultural audiences is
and they’ll get involved with your brand.                      to understand their culture.
To reach the multicultural audience, a brand’s marketing
and communications must be delivered through increased
targeted media, leveraging the unique American
multicultural experience. This means acknowledging
American culture while at the same time preserving the
audience’s culture and traditions of origin. This allows for
targeting of specific cultures in diverse communities.




                                                                                              9
Media News:
     UpfrontsKraft’s
     Comida 2011
     Share Your Latin Flavor
     In May 2011, Axis led efforts to increase awareness of Comida Kraft,
     Kraft Foods’ Hispanic recipe platform that includes a website, magazine,
     e-mail newsletter and mobile site all designed to help U.S. Hispanic moms
     find simple and delicious food solutions.




10
Case Study: Kraft Foods




                                                 Comida Kraft’s Share Your
                                                 Latin Flavor has already
                                                 doubled the benchmark set at
                                                 the beginning of the program.




The 2011 program added a celebrity
element by launching a partnership with
Chef Alfredo Oropeza, focusing on providing
recipes that unite Kraft’s simple and easy
approach with Latin flair and traditions. Axis
led the launch that first targeted influencers
via a blogger event at Kraft Kitchens in
Glenview, Illinois, sharing the Comida Kraft
mission and offering a master class with
Chef Oropeza over two exciting days. In
addition, a traditional media launch was
complemented by a satellite media tour
that demonstrated the Chef preparing
three of the recipes from the 60-recipe,
6-month program.

Fifteen Univision or Azteca America
television stations from across the nation,
tuned in to watch the Chef invite viewers
to Comida Kraft. Ten radio affiliates,
including CNN en Español, also interviewed
the Chef. To date, the team has garnered
nearly 5 million impressions, already
doubling the benchmarks set at the
beginning of the program.




                                                                                   11
12
Why Our Role as
                                      Multicultural
                                  Marketers Matters
At one point or another, we have all pondered why our job as multicultural marketers
is important and to find the answer we don’t have to look very far. The proliferation of
technology has brought the global community even closer and in many ways has spurred
the interest of cultural norms and trends characteristic of multicultural audiences.

In recent years, according to the U.S. Census, the growth   Companies such as Unirush, marketers of the Prepaid Visa
of multicultural populations is outpacing that of Whites.   RushCard, understand how important it is to communicate
The Hispanic community leads that growth and has now        to multicultural consumers. Philanthropist and entrepreneur
surpassed African-Americans as the largest multicultural    Russell Simmons co-founded RushCard introducing an
community. Though the two groups represent two different    innovative financial tool designed to give underserved
cultures, together they embody the largest and most         and unbanked communities access to traditional financial
powerful minorities in the country. When we look around,    services. For the past 5 years, RushCard and Axis have
we observe the influence that multicultural audiences       worked together to develop effective PR strategies and
exert in nearly every aspect of American life including     media campaigns that resonate with the card’s largely
food, politics, music fashion and entertainment, which is   African-American audience. Most recently RushCard and
something, companies and general market consumers           Axis worked together to create an online community forum,
cannot overlook.                                            Flexyourfreedom.com, that connects users of alternative
                                                            banking products, giving them a platform to share relevant
While there are similarities that unify both the African    news, tips and financial resources.
American and Hispanic consumer markets, there are also
differences. Education, employment and media continue       Beyond sheer population growth and cultural influence,
to be areas where these groups are markedly different.      marketing inclusively to the largest minority groups in
For example, the U.S. Census shows that more African-       America is the only way to move our global community
Americans have received a high school diploma, yet          toward a more inclusive future. Today’s communicator must
Hispanic families are earning more and have more disposal   understand the unifying trends and the key differences
income. Additionally, the Hispanic media landscape is       between multicultural audiences to effectively help clients
substantially larger than the African-American media        speak to them in a way that matters most.
landscape, as Spanish-language television programming
has seen tremendous growth in recent years.




The influence that multicultural audiences exert in nearly
every aspect of American life is something companies and
general market consumers cannot overlook.
                                                                                                                          13
Media News:
     Bilingual & Bicultural
     Upfronts 2011 for Brands
     What it Means
     Language is a tremendously powerful component of our cultural construct, one that
     alongside other key cultural markers plays a crucial role in defining our collective identity.

     So it’s no surprise that when it comes to communicating to     These preferences clearly paint a picture of bilingual,
     the U.S. Hispanic market, many brands still hold on to the     bicultural U.S. Hispanics that are consuming media in
     belief that by virtue of simply being in Spanish, a campaign   both languages, and broadcasters have certainly picked
     will automatically resonate with the U.S. Hispanic audience    up on this. The Máximo Report recently revealed that
     and achieve the intended communications goals.                 nearly 50% of New Generation Latinos (a term commonly
                                                                    used to define young, first generation Hispanics) seek more
     But what is really going on among the U.S. Hispanic market     bilingual/bicultural programming and over 30% look for
     in terms of language preference when consuming media?          ‘mainstream’ English-only content. Hispanics hunger for
                                                                    more bilingual, bicultural programming, specifically content
     The latest U.S. Census data showed beyond a shadow             where “they are the star,” “their lives, entertainment interests
     of a doubt that U.S. Hispanics are a consumer force to         and issues are authentically represented,” and “their
     be reckoned with: more than 50 million strong and with         American and Latino sides meet.”
     a spending power estimated at $1.2 trillion for 2011.
     Undoubtedly a figure every brand should clearly have           We are currently witnessing the birth and evolution of a new
     top-of-mind. What’s not yet too clear for many brands is       bilingual television format taking hold. New (and relatively
     how to invest their media buying and marketing dollars to      new) channels like MTV Tr3s, Mun2 and NuVo cater to the
     effectively reach U.S. Hispanics. Are brands missing their     bilingual, bicultural Hispanic and they do so in both English
     mark with Spanish-only campaigns?                              and Spanish. Is this indicative of the demise of the “old
                                                                    guard” all-Spanish Univision and Telemundo networks?
     To answer this we need to examine current media                Not in the least, these networks continue to increase their
     consumption preferences. According to research firm            ratings with spectacular results, often displacing general
     Mintel International’s 2011 Hispanic Media Consumption         market networks, particularly in the novelas and sports
     report, 75% of Hispanics regularly watch English-language      segments. In the third quarter of 2010 Univision had the
     television programs. At the same time, 61% of Hispanics        second highest age 18-34 ratings of all broadcast networks.
     regularly watch Spanish-language television. Consumption
     of print and online media is more segmented (reflective of     So what does this means for brands? For brands with
     the differences between Hispanics who speak the language       vision and a deep understanding of the U.S. Hispanic
     versus read the language); and, according to a recent          culture, the U.S. Hispanic media consumption patterns we
     Ipsos U.S. Hispanic Omnibus Study, Hispanics’ radio            are witnessing today translate into a wealth of opportunity.
     preferences are almost evenly split, with 49% listening to     As marketers continue their journey to understand the
     English radio and 45% listening to Spanish language radio.     market they must deepen their knowledge on how
                                                                    Hispanics express their “Latinicity” beyond language,
                                                                    and understand their unique habits and interests.




14
Nearly



50%
of New Generation Latinos seek more
bilingual/bicultural programming.




                                      15
According to the
     2010 U.S. Census,
     there are almost

     32 Million
     Mexican-origin Hispanics
     in the U.S. that account
     for 10.3% of the entire
     U.S. population.




16
Reaching Mexicans in the
U.S.—The Facts Behind it
Marketing to Mexicans who live in the U.S. is not easy, especially if you have
the mindset of a Mexican company whose operations have not crossed the
northern border. There are significant differences between the ways brands
target Mexicans who reside here (U.S.), as opposed to the strategies that are
used to target Mexicans who live in their native country.

MOTIVATIONS                                                    develop an effective targeted campaign, it is imperative
According to the 2010 U.S. Census, there are almost 32         for companies to consider the age of the audience. Yet,
million Mexican-origin Hispanics in the U.S. that account      companies should always keep in mind that in addition to
for 10.3% of the entire U.S. population and 65.5% of the       the language, cultural relevance plays a major role.
U.S. Hispanic market. The main reason Mexicans immigrate
to the U.S. can be described with two words: American          On the contrary, according to Mexico’s Secretary of
Dream. Even though, immigrants arrive here with the desire     Public Education, in Mexico only two out of 100 people
of attaining financial security, only 23% of Hispanics feel    speak English.
that they have already achieved the American Dream, as
reported in the 2010 MetLife Study of the American Dream.      MEDIA
The economic downturn has also had an impact in Mexico         A survey by the National Opinion Research Center in
and, thus, job security is also a priority. However, Mexican   2010, found that Hispanics are heavy users of electronic
immigrants are more strongly motivated by employment           media and light users of print media. Moreover, the
needs, compared to those who live in Mexico, since their       Simmons study shows that 87% of Mexican Hispanics
main goal is to succeed in this nation and secure a better     spent some time watching TV each week and 77%
life for their families.                                       listening to the radio. In contrast, newspaper and
                                                               magazine usage numbers are significantly lower,
LANGUAGE                                                       accounting for 51% and 57%, respectively.
The different acculturation and language levels of Mexican
Hispanics in the U.S. represent an important challenge         A similar trend is seen in Mexico, however, numbers from
for marketers. The 2011 Simmons study shows that 19%           a 2009 eMarketer report show that there were more
of Mexican Hispanics prefer to speak only English, 23%         people in Mexico who used TV (98.2%) and a smaller
prefer only Spanish and 55% prefer to speak both with          proportion of people (58.4%) who listened to the radio.
predominance either for English or Spanish. Since using        In terms of print media, there were fewer people who read
the right language is one of the key factors needed to         newspapers (33.2%) and magazines (36.4%) in Mexico.




                                                                                                                          17
The 2010 Latinos and Digital Technology
                                                 study by Pew Hispanic Center reports that
                                                 69% of U.S. Hispanics are Internet users
                                                 with at-home broadband access.




     There is also a big difference between paid TV viewership      in Mexico have broadband access. By comparing these
     numbers among Mexican Hispanics and Mexicans.                  numbers, you can assume that there are more chances for
     According to Simmons, 57% of Mexican Hispanics are             brands in the U.S. to reach a larger portion of the audience
     cable subscribers and 42% are Satellite subscribers, which     of Mexican Americans through online strategies, than for
     means that they are also exposed to a great variety of         brands in Mexico to reach Mexican consumers.
     Hispanic and non-Hispanic channels and advertisements.
     In contrast, in Mexico, only 11% of the households are cable   Social networks are also widely used among Hispanics in
     subscribers meaning they are largely watching programming      the U.S., particularly Facebook, which accounts for 13.5
     from one of the two leading Mexican TV networks.               million U.S. Hispanics users that represent a 70% online
                                                                    penetration. Latino Facebook users in the U.S. grew
     There are 13.5 million                                         167% and Twitter only 22% in the past year, as reported
                                                                    by comScore.
     U.S. Hispanics on
                                                                    MOBILE MARKETING
     Facebook, a growth of                                          The 2011 Simmons study reports that 87% of U.S.
     167% in the past year.                                         Mexicans own a cell phone and that 14% use their phone
                                                                    to access the Internet. According to Nielsen, smartphone
                                                                    penetration among U.S. Hispanics is high and 45% of
     ONLINE MARKETING                                               Hispanic mobile users have a smartphone. Moreover,
     According to the latest Simmons study, in the U.S., 59%        56% of Hispanics who recently bought cell phones
     of Mexican-origin Hispanics are online users with Internet     chose smartphones.
     access at home. In Mexico, there are 40.4 million Internet
     users that accounts for only 35.5% of the population, as       In Mexico there are 59.1 million (52%) mobile phone users,
     reported by eMarketer. Moreover, only 31.2% of households      according to eMarketer. A study developed by IAB Mexico




18
and Televisa Interactive found that the use of smartphones     20,000 organizations but only 6,000 are authorized to issue
increased from 10% to 14%, and the smartphone users            tax-deductible receipts and, therefore, can give donations.
who use it to connect to the Internet increased from 7% to     However, in April 2010 a study developed by Letsheal.org
14%. Even though mobile phone penetration is high, the         revealed that in the 16 highest-ranked countries in terms
use of more advanced smartphones in Mexico is still lagging    of GDP, including Mexico, consumers prefer brands that
compared to use of smartphones among U.S. Hispanics.           implement strategies of social responsibility.

NON-TRADITIONAL ADVERTISING AND MARKETING
According to the SFN World Digital Media Trends report,        Companies shouldn’t
in 2012 traditional advertising and marketing in the U.S.
will decrease from 41% to 32% and from 46% to 42%,
                                                               ignore that one third of U.S.
respectively. On the contrary, the share of alternative,       Hispanics almost always
interactive channels will increase from 13% to 27%.
Experiential and guerrilla marketing, for instance, have       choose brands if they come
become important components of Hispanic marketing
campaigns. Mexican-origin Hispanics are now exposed
                                                               from companies that support
to non-traditional marketing programs that include word        causes they believe in.
of mouth tactics, pop up events, concerts, flash mobs,
urban video projections, giant 3D items and interactive
mobile billboards.                                             Due to the slowly growing domestic market in Mexico, many
                                                               companies have reached market saturation and are looking
Yet these trends are not seen in Mexico, where massive         at expanding into the United States. The increasing spending
advertising has been king. It’s interesting to note that in    power of Mexican-origin Hispanics makes them an appealing
2009, traditional advertising in Mexico accounted for 50%      target and, obviously, more Mexican companies are eager to
of the total share, a percentage that is even higher than      get a piece of this huge $616 billion pie.
the share this category accounted for in the U.S. in 2002!
                                                               According to the latest statistics from the U.S. Department
CORPORATE SOCIAL RESPONSIBILITY PROGRAMS                       of Commerce, new investment in the U.S. by Mexican
Almost three-fourths of organizations report engaging in       companies increased from $3.6 billion in 2005 to almost
sustainable workplace or business practices, according         $8 billion in 2008. Mexican companies like Lala, Bimbo,
to a study conducted by the Society for Human Resource         Gruma, Corona, Cemex and Famsa have successfully
Management (SHRM.) Another recent study conducted              entered the U.S. market by inspiring trust among Mexican-
by Weber Shandwick in partnership with KRC Research,           Americans and making them feel at home. In the future,
revealed that the main reason U.S. corporations undertake      we can expect more Mexican companies to follow this
in these activities is to have an impact on critical issues.   trend and take full advantage of their brand recognition
Moreover, companies shouldn’t ignore that one third of         among Mexican immigrants and move into the U.S. This
U.S. Hispanics almost always choose brands if they             strength, along with the development of targeted marketing
come from companies that support causes they believe           campaigns based on culture, language and lifestyle,
in, according to results from the Yankelovich MONITOR          represents invaluable opportunities for newcomers.
Multicultural Study 2010.

Although CSR is a key component in U.S. companies’
strategic plans, in Mexico this is not the case. According
to CEMEFI, the organization that promotes philanthropy
and corporate social responsibility in Mexico, there are



                                                                                                                              19
Media News:
     Media News:
     Upfronts 2011
     Upfronts 2011
     Recently, broadcast networks unveiled their upcoming 2011-2012 programming.
     What’s the biggest news coming from the Hispanic upfronts? Univision’s launch
     of three new networks — 24/7, TLNovelas and Univision Deportes.


                          OTHER PROGRAMMING HIGHLIGHTS:
                            U.S.-based dramas are the new programming trend and includes Telefutura’s
                            MIA and La Mariposa, Telemundo’s Fisico o Quimica and Mun2’s RPM2

                            Telenovelas that will very soon be getting record audience ratings include
                            Univision’s Dos Hogares and Talisman and Telemundo’s Amor de Película
                            and Una Maid en Manhattan

                            New series to watch include Galavision’s Kdabra and Telefutura’s El Capo
                            and La Mariposa

                            Reality shows to catch include Univision’s Sí Se Puede, Galavision’s Prime
                            Gourmet — El Reto, Mun2’s El Mas Ching*n and Tr3s’ Quiero Mi Baby

                            Nights will be more fun with Telefutura’s Noche de Perros and Telemundo’s
                            two-hour variety show with Cristina Saralegui (the Hispanic Oprah)

                            In sports, Telemundo announced a partnership with the NFL and will air the
                            Summer Olympics and Fox Sports will continue to air its new original shows —
                            Crónica, Crónica + and Sin Códigos

                            Awards season got more exciting with Univision’s Premios Univision and
                            Telemundo’s multi-year agreement to air the Billboard Latin Music Awards
                            and the new Premios Billboard de la Música Regional Mexicana



                            The biggest news in the Hispanic upfront?
                            Univision’s launch of three new networks —
                            24/7, TLNovelas and Univision Deportes.



20
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September 14, 2011                                 October 19-22, 2011
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The 2011 Social Media Summit presents              leadership conferences offering great network
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entrepreneurship, training and education,          the best artistic performances, and innovative
world affairs, and the local news to accurately    ideas. Attendees learn about current issues,
examine the impact of social networks beyond       trends and technologies that impact the future
marketing and brand building. Every year, the      of businesses, economy, society and world.
summit is attended by parents, journalists,        poptech.org
corporate leaders, advocates, non-profit groups,
military personnel, HR directors and managers,     Social Media World Forum –
business owners, and college students.             North America
www.harrisburgu.edu
                                                   November 1-2, 2011
                                                   The Jacob K. Javits Convention
Digital Hollywood Fall                             Center of New York
October 17-20, 2011                                New York, NY
The Ritz Carlton                                   The Social Media World Forum is one of the
Marina del Rey, CA                                 leading key events in its field. The forum provides
Digital Hollywood is one of the nation’s           engaging workshops and social media debates
premier entertainment and technology               by respectable industry experts. Public relations
conferences. Over 15,000 top executives            specialists, marketers, corporate leaders and
in the film, television, music, home video,        others attend the forum to learn about the latest
cable, telecommunications and computer             tools, technologies, platforms, and emerging
industries attend each year.                       trends within social media marketing.
www.digitalhollywood.com                           www.socialmedia-forum.com/northamerica




                                                                                                         21
Month               Day                 Year of birth
ome, or

re else
most
                       NOTE: Please answer BOTH Questions 7 and 8.

—              7. Is Person 1 Spanish/Hispanic/Latino? Mark                                                             the "No"
                       box if not Spanish /Hispanic /Latino.
                             No, not Spanish / Hispanic / Latino            Yes, Puerto Rican
 a
                             Yes, Mexican, Mexican Am., Chicano             Yes, Cuban
 and                         Yes, other Spanish / Hispanic / Latino — Print group.




               8. What is Person 1’s race? Mark             one or more races to
                       indicate what this person considers himself/herself to be.
 each
mobile
people
               TheWhite African Am., or Negro
                   Infamous Question #7
                  Black,
 his                       American Indian or Alaska
               “You are not Spanish/Hispanic/Latino!                     Native -No, Print name of in Argentina but our culture tribe.
                                                                                — I wasn’t! I was born enrolled or principal
e is no        You have Ukrainian, Polish, Romanian
                                                                              doesn’t have anything to do with the Latin culture!

 staying        and Swedish blood pumping through
                                                                                     -Really?
                                                                                     -Oh, come on, Sebastián. You can’t be serious.
n 1.            your veins! And let’s not forget that
                                                                              I will never, ever consider myself Latino. You know why?
                                                                              Because whenever you write that you are Latino, a red
                you are half Jewish,”                                         light goes off in people’s minds and they immediately
low.                         Asian Indian     Japanese
               Martín scoffed at Sebastián one cold and rainy night while
                                                                                        Native Hawaiian
                                                                              start thinking that you’re Mexican.
                                                                                     -I can’t believe you are saying that in this day and
                             Chinese          Korean
               they were having dinner at an overhyped, overpriced Tapas
               bar in Los Angeles.
                                                                                        Guamanian or Chamorro
                                                                              age people still lump all Latinos together and assume
                                                                              we are all Mexicans.
                             Filipino         Vietnamese
                    “You are Argentine, and as far as I know, the fact that
               you were born in Argentina does not make you Latino.
                                                                                        Samoan
                                                                                     -I can’t believe you consider yourself Latino.
                                                                                     -Oh, yes. And I quite like being part of the fastest
                             Other Asian — Print race.
               Look at your skin, for heaven’s sake. You are white. You are
               Caucasian! Why on Earth would you tell the government you
                                                                                        Other Pacific Islander — Print race.
                                                                              growing minority in America.
                                                                                     -Why? Why do you like it?
               are Latino? ” Martín added.
     MI             -Question number 7.
                                                                                     -Because I like who I am. I like my background, my
                                                                              culture and my values. And I’m certainly captivated by this
                    -Was that the number of the question on the               exciting, multicultural movement. That’s the truth. And let’s
               Census Form?                                                   be honest. The only thing “Caucasian” you have going is
                    -I’m sorry to ask you this, but do you know what          your infatuation with Vodka, or as a real Caucasian would
               Caucasian means?
                             Some other race — Print race.
                    -Of course! White people. All the white people here
                                                                              say it, “Wodka.”
                                                                                     -So, you’re saying that I’m Latino?
               in the U.S. call themselves Caucasian, don’t they?                    -Yes. Loud and clear.
                    -That is not technically correct. The term Caucasian             -Wow. Let me think about that and I’ll get back to you.
               only applies to someone originating from the Caucasus                 -Take your time, man.
               region – Russia, Armenia, Georgia or Azerbaijan are
               Caucasian countries. I was not born there, nor do I            It took Martín ten months to talk to his half-brother again. But
               have any blood ties with them. I was born in Argentina,        the night of their reunion, Sebastián heard Martín tell some
                       If more people live here, continue with Person 2.
               a Latin American country, and I was raised in Latino
               Culture. So were you!!!!
                                                                              hot Armenian girls that were sitting across their table, that
                                                                              both he and Sebastián were the new Latin lovers in town.


          22
CONTACT
Armando Azarloza
President
Axis
8687 Melrose Ave., 9th Fl.
Los Angeles, CA 90069
aazarloza@theaxisagency.com




                              23
Los Angeles   New York Miami Chicago     Dallas   Austin
                      www.theaxisagency.com



24

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Culture Summer 2011 Issue

  • 1. CULTURE SUM M ER 2011 The 2010 Census & the Rise of Multicultural
  • 2. Welcome Bienvenidos Only a few years ago, I spent a great deal of time talking to people about the new realities in the U.S. consumer market. Some of it was based on my own perception and thinking about what was happening in the U.S. Hispanic market. Then there were two major Spanish-language television networks, a handful of local radio stations, just a few dailies and a limited number of online sites catering to Hispanic consumers. Many marketers weren’t yet convinced of the opportunity. We heard such things as “we can reach Hispanics through general market media” and my favorite “Hispanics aren’t spending.” That was 1999. Today, with the 2010 Census out, marketers have been forced to rethink their strategy toward the new realities shaping the U.S. consumer market. What’s driving this long-awaited shift? The sheer numbers, of course. Multicultural groups are not only the fastest growing segment of the market, but they are quickly creating a multiculturally-influenced general market. The size of the U.S. Hispanic market alone grew by nearly 50% since 2000 to more than 50 million people, or nearly 16% of the total population. The Census data also reflects how minorities continue growing, now comprising 35% of the total U.S. population. The new estimates reveal a country of larger and younger minorities, with Hispanics having the greatest growth rate due to their higher birth rates. Hispanics represented more than half of the total growth in the U.S. population since the last Census and the larger portion of this increase, two-thirds, was to births, not immigration, which has actually fallen off to some degree in recent years. For the moment, non-Hispanic whites number approximately 200 million, but are 14% less than their percentage in 2000, when the country’s white non-Hispanic population was calculated to be 195 million. This signals a major transformation. One that we have not seen since the post-World War II Baby Boom. The country is taking on an ever more diverse character and even more so when one takes into account that Americans are defining themselves more and more as belonging to different cultural groups. The question we need to ask is... will this transformation finally end our fascination with thinking about the total market in segments? Only when we honestly look at the new realities of the market, will we truly grasp the vast marketing and business opportunities that exist. Armando Azarloza President Axis 2
  • 3. What’s Inside 4 6 8 Growing Trends: Culture Movement Move Over, Census Highlights Marketing Baby Boomers Demographic Shifts 12 14 16 Why Our Role as Bilingual & Bicultural Reaching Mexicans Multicultural What it Means for Brands in The U.S.— Marketers Matters The Facts Behind it 10 20 21 22 Case Study: Media News — Can’t-Miss Digital The Infamous Kraft Foods May 2011 Upfronts Conferences Question #7 3
  • 4. Growing Trends: Census Highlights Demographic Shifts Future growth in the digital population will come from minority audiences. The overall growth of the online population in the U.S. is While the census has consistently projected strong growth stagnating, and most future growth will come from increases in minority populations through 2050, the new figures for in minority audiences including Hispanics, Blacks, seniors all races may change more than projected. The census’ and children. open-ended questions on racial and ethnic background — including a write-in answer for filers who did not feel their Hispanics are the fastest-growing segment of the U.S. background could be explained by a single check-box population, and eMarketer expects the Hispanic online answer — caused much confusion and comment. It is population to grow by nearly 10 million people between still unclear how respondents identified themselves and 2010 and 2014. Next year, eMarketer forecasts their families. 32.2 million Hispanics, or 62.9% of the U.S. Hispanic population, will be online. The results of the 2010 census could push those estimates up even further. 4
  • 5. The Black internet user population is somewhat smaller but also on the rise. eMarketer forecasts nearly 26 million Blacks will go online at least monthly in 2011, for a penetration rate U.S. Hispanic Internet Users and Penetration, of 66.9%. By 2014, 72.3% of Blacks will be online. 2009-2014 (millions and % Hispanic population) Marketers who are beginning to up their budgets as they 39.2 36.8 (70.0%) put the recession behind them will do well to remember that 34.3 (67.6%) 32.2 (65.0%) minority groups are only increasing in importance online. 29.6 (62.9%) Advertisers must remember they make up an ever-greater 27.2 (59.5%) (56.5%) portion of the audience of all media, but spending on Spanish-language and African-American media is also a must. According to research from the Association of National Advertisers, more than half of U.S. marketers will be increasing multicultural spending on both traditional and newer media. According to research 2009 2010 2011 2012 2013 2014 from the Association Note: can be of any race Source: eMarketer, March 2010 of National Advertisers, 114300 www.eMarketer.com more than half of U.S. marketers will be increasing Change in Marketing Spending on All multicultural spending Multicultural Media vs. Newer Media Platforms According to U.S. Marketers, 2010 on both traditional and % of respondents newer media. Spending less Spending less 13% 9% “These audiences appreciate genuine efforts by marketers to understand them and communicate messages that resonate, which means more than including a Spending Spending demographically diverse cast in a mainstream television Spending more Spending more same 56% same 56% commercial or high gloss magazine ad,” said Lisa E. 31% 35% Phillips, senior analyst at eMarketer. “Brands that ignore the multicultural audience will find themselves ignored by a powerful segment of the population.” All Multicultural media Newer media Note: n=54; change vs. 2009; *company websites, email marketing, mobile, online ads, online games, online video, paid search, RSS, SEO and social media (blogs, ©2010 eMarketer Inc. All rights location-based services, podcasting, Twitter, webinars, wikis, virtual worlds) reserved. www.emarketer.com Source: Association of National Advertisers (ANA) survey provided to eMarketer, Nov 22, 2010 122174 www.eMarketer.com 5
  • 6. Culture Movement Marketing What is it and why is it the most effective marketing communications approach for your brand? Culture Movement Marketing is about identifying and aligning brands with ideas that are generating new movements in culture. These ideas and the movements they spawn are powerful because they appeal to people on a personal level. They captivate and make them want to belong, and more importantly, they motivate people to want to share the cultural movement with others — think urban car culture, fusion cuisine, hip hop/reggaeton, among many others. The strength of cultural movement marketing is that it starts and ends with what consumers like and are most compelled by in their daily lives. It’s not about creating campaigns that seek to influence short-term changes in purchase behaviors, rather it’s about aligning brands longer-term with large movements that consumers already espouse or want to belong to. At Axis, that’s exactly what we do. We help identify key cultural movements on the rise with multicultural consumers; we then uncover groundbreaking insights that help us create big ideas and communications strategies to organically link our client’s brands to these cultural movements. It’s that simple; we focus on movements that inspire multicultural consumers, and we find creative ways to help make a brand an authentic part of that movement so that it can profit from as many aspects of it over time. The strength of Culture Movement Marketing is that it starts and ends with what consumers like and are most compelled by in their daily lives. 6
  • 7. 7
  • 8. Media News: Move Over, Upfronts 2011 Baby Boomers The top similarities between these two cultural movements are religion, use of technology (tech savvy), popularity among sports, movie-going and food. However, the Baby Boomers differ from multicultural consumers because they are much older, the majority are white males, have smaller average household sizes, are more educated, are less brand loyal and not nearly as receptive to ads. A multicultural movement is transforming America in many ways. Not since the birth of the Baby Boomer generation have we seen such a profound and dramatic shift in the demographics of the country. With the end of post-war baby boom, we are seeing far reaching changes in society and the marketplace. In food choices — salsa outsells ketchup, tortillas are preferred over white bread, and the list goes on. Multicultural groups are also fusing foods together to create a new and modern cuisine such as Korean BBQ & Mexican tacos, and Chinese and Cuban dishes (Chino Latino). Entertainment is leveraging multicultural celebrities like never before; just watch Jennifer Lopez and Christina Aguilera judging on American Idol and The Voice. Athletes like Kobe Bryant, Alex Rodriguez and Matt Kemp are the authority for all. And music has become universal, appealing to all cultures; just ask the fans of Ricky Martin, Rihanna, Neyo and Pitbull. This impact is moving the economy. For years, brands have been adjusting their marketing to speak to the Baby Boomers. Today, however, they are re-evaluating 8
  • 9. their strategies in order to compete in the new America. The assumptions of the past are giving way to the transformational reality that is taking place. Marketers have to recognize the rise in multicultural consumers, particularly Hispanics and the emergence of millennials as the next generation, with significant influence in the marketplace. The right way for brands to engage with multicultural audiences is to understand their culture. It’s important that they feel connected to a brand’s message. Now more than ever, a brand has to know what’s relevant to the target consumer in order to create relatable ads and messages, and represent the target in all its marketing The right way for efforts. An essential part of the strategy is to get behind movements and concerns that mean something to brands to engage with consumers and address the issues of lifestyle, culture and language. Get involved in the multicultural community multicultural audiences is and they’ll get involved with your brand. to understand their culture. To reach the multicultural audience, a brand’s marketing and communications must be delivered through increased targeted media, leveraging the unique American multicultural experience. This means acknowledging American culture while at the same time preserving the audience’s culture and traditions of origin. This allows for targeting of specific cultures in diverse communities. 9
  • 10. Media News: UpfrontsKraft’s Comida 2011 Share Your Latin Flavor In May 2011, Axis led efforts to increase awareness of Comida Kraft, Kraft Foods’ Hispanic recipe platform that includes a website, magazine, e-mail newsletter and mobile site all designed to help U.S. Hispanic moms find simple and delicious food solutions. 10
  • 11. Case Study: Kraft Foods Comida Kraft’s Share Your Latin Flavor has already doubled the benchmark set at the beginning of the program. The 2011 program added a celebrity element by launching a partnership with Chef Alfredo Oropeza, focusing on providing recipes that unite Kraft’s simple and easy approach with Latin flair and traditions. Axis led the launch that first targeted influencers via a blogger event at Kraft Kitchens in Glenview, Illinois, sharing the Comida Kraft mission and offering a master class with Chef Oropeza over two exciting days. In addition, a traditional media launch was complemented by a satellite media tour that demonstrated the Chef preparing three of the recipes from the 60-recipe, 6-month program. Fifteen Univision or Azteca America television stations from across the nation, tuned in to watch the Chef invite viewers to Comida Kraft. Ten radio affiliates, including CNN en Español, also interviewed the Chef. To date, the team has garnered nearly 5 million impressions, already doubling the benchmarks set at the beginning of the program. 11
  • 12. 12
  • 13. Why Our Role as Multicultural Marketers Matters At one point or another, we have all pondered why our job as multicultural marketers is important and to find the answer we don’t have to look very far. The proliferation of technology has brought the global community even closer and in many ways has spurred the interest of cultural norms and trends characteristic of multicultural audiences. In recent years, according to the U.S. Census, the growth Companies such as Unirush, marketers of the Prepaid Visa of multicultural populations is outpacing that of Whites. RushCard, understand how important it is to communicate The Hispanic community leads that growth and has now to multicultural consumers. Philanthropist and entrepreneur surpassed African-Americans as the largest multicultural Russell Simmons co-founded RushCard introducing an community. Though the two groups represent two different innovative financial tool designed to give underserved cultures, together they embody the largest and most and unbanked communities access to traditional financial powerful minorities in the country. When we look around, services. For the past 5 years, RushCard and Axis have we observe the influence that multicultural audiences worked together to develop effective PR strategies and exert in nearly every aspect of American life including media campaigns that resonate with the card’s largely food, politics, music fashion and entertainment, which is African-American audience. Most recently RushCard and something, companies and general market consumers Axis worked together to create an online community forum, cannot overlook. Flexyourfreedom.com, that connects users of alternative banking products, giving them a platform to share relevant While there are similarities that unify both the African news, tips and financial resources. American and Hispanic consumer markets, there are also differences. Education, employment and media continue Beyond sheer population growth and cultural influence, to be areas where these groups are markedly different. marketing inclusively to the largest minority groups in For example, the U.S. Census shows that more African- America is the only way to move our global community Americans have received a high school diploma, yet toward a more inclusive future. Today’s communicator must Hispanic families are earning more and have more disposal understand the unifying trends and the key differences income. Additionally, the Hispanic media landscape is between multicultural audiences to effectively help clients substantially larger than the African-American media speak to them in a way that matters most. landscape, as Spanish-language television programming has seen tremendous growth in recent years. The influence that multicultural audiences exert in nearly every aspect of American life is something companies and general market consumers cannot overlook. 13
  • 14. Media News: Bilingual & Bicultural Upfronts 2011 for Brands What it Means Language is a tremendously powerful component of our cultural construct, one that alongside other key cultural markers plays a crucial role in defining our collective identity. So it’s no surprise that when it comes to communicating to These preferences clearly paint a picture of bilingual, the U.S. Hispanic market, many brands still hold on to the bicultural U.S. Hispanics that are consuming media in belief that by virtue of simply being in Spanish, a campaign both languages, and broadcasters have certainly picked will automatically resonate with the U.S. Hispanic audience up on this. The Máximo Report recently revealed that and achieve the intended communications goals. nearly 50% of New Generation Latinos (a term commonly used to define young, first generation Hispanics) seek more But what is really going on among the U.S. Hispanic market bilingual/bicultural programming and over 30% look for in terms of language preference when consuming media? ‘mainstream’ English-only content. Hispanics hunger for more bilingual, bicultural programming, specifically content The latest U.S. Census data showed beyond a shadow where “they are the star,” “their lives, entertainment interests of a doubt that U.S. Hispanics are a consumer force to and issues are authentically represented,” and “their be reckoned with: more than 50 million strong and with American and Latino sides meet.” a spending power estimated at $1.2 trillion for 2011. Undoubtedly a figure every brand should clearly have We are currently witnessing the birth and evolution of a new top-of-mind. What’s not yet too clear for many brands is bilingual television format taking hold. New (and relatively how to invest their media buying and marketing dollars to new) channels like MTV Tr3s, Mun2 and NuVo cater to the effectively reach U.S. Hispanics. Are brands missing their bilingual, bicultural Hispanic and they do so in both English mark with Spanish-only campaigns? and Spanish. Is this indicative of the demise of the “old guard” all-Spanish Univision and Telemundo networks? To answer this we need to examine current media Not in the least, these networks continue to increase their consumption preferences. According to research firm ratings with spectacular results, often displacing general Mintel International’s 2011 Hispanic Media Consumption market networks, particularly in the novelas and sports report, 75% of Hispanics regularly watch English-language segments. In the third quarter of 2010 Univision had the television programs. At the same time, 61% of Hispanics second highest age 18-34 ratings of all broadcast networks. regularly watch Spanish-language television. Consumption of print and online media is more segmented (reflective of So what does this means for brands? For brands with the differences between Hispanics who speak the language vision and a deep understanding of the U.S. Hispanic versus read the language); and, according to a recent culture, the U.S. Hispanic media consumption patterns we Ipsos U.S. Hispanic Omnibus Study, Hispanics’ radio are witnessing today translate into a wealth of opportunity. preferences are almost evenly split, with 49% listening to As marketers continue their journey to understand the English radio and 45% listening to Spanish language radio. market they must deepen their knowledge on how Hispanics express their “Latinicity” beyond language, and understand their unique habits and interests. 14
  • 15. Nearly 50% of New Generation Latinos seek more bilingual/bicultural programming. 15
  • 16. According to the 2010 U.S. Census, there are almost 32 Million Mexican-origin Hispanics in the U.S. that account for 10.3% of the entire U.S. population. 16
  • 17. Reaching Mexicans in the U.S.—The Facts Behind it Marketing to Mexicans who live in the U.S. is not easy, especially if you have the mindset of a Mexican company whose operations have not crossed the northern border. There are significant differences between the ways brands target Mexicans who reside here (U.S.), as opposed to the strategies that are used to target Mexicans who live in their native country. MOTIVATIONS develop an effective targeted campaign, it is imperative According to the 2010 U.S. Census, there are almost 32 for companies to consider the age of the audience. Yet, million Mexican-origin Hispanics in the U.S. that account companies should always keep in mind that in addition to for 10.3% of the entire U.S. population and 65.5% of the the language, cultural relevance plays a major role. U.S. Hispanic market. The main reason Mexicans immigrate to the U.S. can be described with two words: American On the contrary, according to Mexico’s Secretary of Dream. Even though, immigrants arrive here with the desire Public Education, in Mexico only two out of 100 people of attaining financial security, only 23% of Hispanics feel speak English. that they have already achieved the American Dream, as reported in the 2010 MetLife Study of the American Dream. MEDIA The economic downturn has also had an impact in Mexico A survey by the National Opinion Research Center in and, thus, job security is also a priority. However, Mexican 2010, found that Hispanics are heavy users of electronic immigrants are more strongly motivated by employment media and light users of print media. Moreover, the needs, compared to those who live in Mexico, since their Simmons study shows that 87% of Mexican Hispanics main goal is to succeed in this nation and secure a better spent some time watching TV each week and 77% life for their families. listening to the radio. In contrast, newspaper and magazine usage numbers are significantly lower, LANGUAGE accounting for 51% and 57%, respectively. The different acculturation and language levels of Mexican Hispanics in the U.S. represent an important challenge A similar trend is seen in Mexico, however, numbers from for marketers. The 2011 Simmons study shows that 19% a 2009 eMarketer report show that there were more of Mexican Hispanics prefer to speak only English, 23% people in Mexico who used TV (98.2%) and a smaller prefer only Spanish and 55% prefer to speak both with proportion of people (58.4%) who listened to the radio. predominance either for English or Spanish. Since using In terms of print media, there were fewer people who read the right language is one of the key factors needed to newspapers (33.2%) and magazines (36.4%) in Mexico. 17
  • 18. The 2010 Latinos and Digital Technology study by Pew Hispanic Center reports that 69% of U.S. Hispanics are Internet users with at-home broadband access. There is also a big difference between paid TV viewership in Mexico have broadband access. By comparing these numbers among Mexican Hispanics and Mexicans. numbers, you can assume that there are more chances for According to Simmons, 57% of Mexican Hispanics are brands in the U.S. to reach a larger portion of the audience cable subscribers and 42% are Satellite subscribers, which of Mexican Americans through online strategies, than for means that they are also exposed to a great variety of brands in Mexico to reach Mexican consumers. Hispanic and non-Hispanic channels and advertisements. In contrast, in Mexico, only 11% of the households are cable Social networks are also widely used among Hispanics in subscribers meaning they are largely watching programming the U.S., particularly Facebook, which accounts for 13.5 from one of the two leading Mexican TV networks. million U.S. Hispanics users that represent a 70% online penetration. Latino Facebook users in the U.S. grew There are 13.5 million 167% and Twitter only 22% in the past year, as reported by comScore. U.S. Hispanics on MOBILE MARKETING Facebook, a growth of The 2011 Simmons study reports that 87% of U.S. 167% in the past year. Mexicans own a cell phone and that 14% use their phone to access the Internet. According to Nielsen, smartphone penetration among U.S. Hispanics is high and 45% of ONLINE MARKETING Hispanic mobile users have a smartphone. Moreover, According to the latest Simmons study, in the U.S., 59% 56% of Hispanics who recently bought cell phones of Mexican-origin Hispanics are online users with Internet chose smartphones. access at home. In Mexico, there are 40.4 million Internet users that accounts for only 35.5% of the population, as In Mexico there are 59.1 million (52%) mobile phone users, reported by eMarketer. Moreover, only 31.2% of households according to eMarketer. A study developed by IAB Mexico 18
  • 19. and Televisa Interactive found that the use of smartphones 20,000 organizations but only 6,000 are authorized to issue increased from 10% to 14%, and the smartphone users tax-deductible receipts and, therefore, can give donations. who use it to connect to the Internet increased from 7% to However, in April 2010 a study developed by Letsheal.org 14%. Even though mobile phone penetration is high, the revealed that in the 16 highest-ranked countries in terms use of more advanced smartphones in Mexico is still lagging of GDP, including Mexico, consumers prefer brands that compared to use of smartphones among U.S. Hispanics. implement strategies of social responsibility. NON-TRADITIONAL ADVERTISING AND MARKETING According to the SFN World Digital Media Trends report, Companies shouldn’t in 2012 traditional advertising and marketing in the U.S. will decrease from 41% to 32% and from 46% to 42%, ignore that one third of U.S. respectively. On the contrary, the share of alternative, Hispanics almost always interactive channels will increase from 13% to 27%. Experiential and guerrilla marketing, for instance, have choose brands if they come become important components of Hispanic marketing campaigns. Mexican-origin Hispanics are now exposed from companies that support to non-traditional marketing programs that include word causes they believe in. of mouth tactics, pop up events, concerts, flash mobs, urban video projections, giant 3D items and interactive mobile billboards. Due to the slowly growing domestic market in Mexico, many companies have reached market saturation and are looking Yet these trends are not seen in Mexico, where massive at expanding into the United States. The increasing spending advertising has been king. It’s interesting to note that in power of Mexican-origin Hispanics makes them an appealing 2009, traditional advertising in Mexico accounted for 50% target and, obviously, more Mexican companies are eager to of the total share, a percentage that is even higher than get a piece of this huge $616 billion pie. the share this category accounted for in the U.S. in 2002! According to the latest statistics from the U.S. Department CORPORATE SOCIAL RESPONSIBILITY PROGRAMS of Commerce, new investment in the U.S. by Mexican Almost three-fourths of organizations report engaging in companies increased from $3.6 billion in 2005 to almost sustainable workplace or business practices, according $8 billion in 2008. Mexican companies like Lala, Bimbo, to a study conducted by the Society for Human Resource Gruma, Corona, Cemex and Famsa have successfully Management (SHRM.) Another recent study conducted entered the U.S. market by inspiring trust among Mexican- by Weber Shandwick in partnership with KRC Research, Americans and making them feel at home. In the future, revealed that the main reason U.S. corporations undertake we can expect more Mexican companies to follow this in these activities is to have an impact on critical issues. trend and take full advantage of their brand recognition Moreover, companies shouldn’t ignore that one third of among Mexican immigrants and move into the U.S. This U.S. Hispanics almost always choose brands if they strength, along with the development of targeted marketing come from companies that support causes they believe campaigns based on culture, language and lifestyle, in, according to results from the Yankelovich MONITOR represents invaluable opportunities for newcomers. Multicultural Study 2010. Although CSR is a key component in U.S. companies’ strategic plans, in Mexico this is not the case. According to CEMEFI, the organization that promotes philanthropy and corporate social responsibility in Mexico, there are 19
  • 20. Media News: Media News: Upfronts 2011 Upfronts 2011 Recently, broadcast networks unveiled their upcoming 2011-2012 programming. What’s the biggest news coming from the Hispanic upfronts? Univision’s launch of three new networks — 24/7, TLNovelas and Univision Deportes. OTHER PROGRAMMING HIGHLIGHTS: U.S.-based dramas are the new programming trend and includes Telefutura’s MIA and La Mariposa, Telemundo’s Fisico o Quimica and Mun2’s RPM2 Telenovelas that will very soon be getting record audience ratings include Univision’s Dos Hogares and Talisman and Telemundo’s Amor de Película and Una Maid en Manhattan New series to watch include Galavision’s Kdabra and Telefutura’s El Capo and La Mariposa Reality shows to catch include Univision’s Sí Se Puede, Galavision’s Prime Gourmet — El Reto, Mun2’s El Mas Ching*n and Tr3s’ Quiero Mi Baby Nights will be more fun with Telefutura’s Noche de Perros and Telemundo’s two-hour variety show with Cristina Saralegui (the Hispanic Oprah) In sports, Telemundo announced a partnership with the NFL and will air the Summer Olympics and Fox Sports will continue to air its new original shows — Crónica, Crónica + and Sin Códigos Awards season got more exciting with Univision’s Premios Univision and Telemundo’s multi-year agreement to air the Billboard Latin Music Awards and the new Premios Billboard de la Música Regional Mexicana The biggest news in the Hispanic upfront? Univision’s launch of three new networks — 24/7, TLNovelas and Univision Deportes. 20
  • 21. Search and Social Woot! Hawaii Can’t-Miss September 26-29, 2011 Kauai Marriott Resort Social Media Kauai, Hawaii The Search and Social Hawaii Conference & Digital brings together highly recognized industry experts to debate and provide in-depth discussions on search marketing and social Conferences media marketing. The conference offers great network opportunities and strategies to compete with the ever-changing industry. www.wappow.com/searchandsocial Social Media Summit Pop! Tech September 14, 2011 October 19-22, 2011 Harrisburg University of Science Camden Opera House and Technology Camden, ME Harrisburg, PA Pop!Tech is one of the world’s best The 2011 Social Media Summit presents leadership conferences offering great network respectable specialists in politics, parenting, opportunities, demos of advanced technologies, entrepreneurship, training and education, the best artistic performances, and innovative world affairs, and the local news to accurately ideas. Attendees learn about current issues, examine the impact of social networks beyond trends and technologies that impact the future marketing and brand building. Every year, the of businesses, economy, society and world. summit is attended by parents, journalists, poptech.org corporate leaders, advocates, non-profit groups, military personnel, HR directors and managers, Social Media World Forum – business owners, and college students. North America www.harrisburgu.edu November 1-2, 2011 The Jacob K. Javits Convention Digital Hollywood Fall Center of New York October 17-20, 2011 New York, NY The Ritz Carlton The Social Media World Forum is one of the Marina del Rey, CA leading key events in its field. The forum provides Digital Hollywood is one of the nation’s engaging workshops and social media debates premier entertainment and technology by respectable industry experts. Public relations conferences. Over 15,000 top executives specialists, marketers, corporate leaders and in the film, television, music, home video, others attend the forum to learn about the latest cable, telecommunications and computer tools, technologies, platforms, and emerging industries attend each year. trends within social media marketing. www.digitalhollywood.com www.socialmedia-forum.com/northamerica 21
  • 22. Month Day Year of birth ome, or re else most NOTE: Please answer BOTH Questions 7 and 8. — 7. Is Person 1 Spanish/Hispanic/Latino? Mark the "No" box if not Spanish /Hispanic /Latino. No, not Spanish / Hispanic / Latino Yes, Puerto Rican a Yes, Mexican, Mexican Am., Chicano Yes, Cuban and Yes, other Spanish / Hispanic / Latino — Print group. 8. What is Person 1’s race? Mark one or more races to indicate what this person considers himself/herself to be. each mobile people TheWhite African Am., or Negro Infamous Question #7 Black, his American Indian or Alaska “You are not Spanish/Hispanic/Latino! Native -No, Print name of in Argentina but our culture tribe. — I wasn’t! I was born enrolled or principal e is no You have Ukrainian, Polish, Romanian doesn’t have anything to do with the Latin culture! staying and Swedish blood pumping through -Really? -Oh, come on, Sebastián. You can’t be serious. n 1. your veins! And let’s not forget that I will never, ever consider myself Latino. You know why? Because whenever you write that you are Latino, a red you are half Jewish,” light goes off in people’s minds and they immediately low. Asian Indian Japanese Martín scoffed at Sebastián one cold and rainy night while Native Hawaiian start thinking that you’re Mexican. -I can’t believe you are saying that in this day and Chinese Korean they were having dinner at an overhyped, overpriced Tapas bar in Los Angeles. Guamanian or Chamorro age people still lump all Latinos together and assume we are all Mexicans. Filipino Vietnamese “You are Argentine, and as far as I know, the fact that you were born in Argentina does not make you Latino. Samoan -I can’t believe you consider yourself Latino. -Oh, yes. And I quite like being part of the fastest Other Asian — Print race. Look at your skin, for heaven’s sake. You are white. You are Caucasian! Why on Earth would you tell the government you Other Pacific Islander — Print race. growing minority in America. -Why? Why do you like it? are Latino? ” Martín added. MI -Question number 7. -Because I like who I am. I like my background, my culture and my values. And I’m certainly captivated by this -Was that the number of the question on the exciting, multicultural movement. That’s the truth. And let’s Census Form? be honest. The only thing “Caucasian” you have going is -I’m sorry to ask you this, but do you know what your infatuation with Vodka, or as a real Caucasian would Caucasian means? Some other race — Print race. -Of course! White people. All the white people here say it, “Wodka.” -So, you’re saying that I’m Latino? in the U.S. call themselves Caucasian, don’t they? -Yes. Loud and clear. -That is not technically correct. The term Caucasian -Wow. Let me think about that and I’ll get back to you. only applies to someone originating from the Caucasus -Take your time, man. region – Russia, Armenia, Georgia or Azerbaijan are Caucasian countries. I was not born there, nor do I It took Martín ten months to talk to his half-brother again. But have any blood ties with them. I was born in Argentina, the night of their reunion, Sebastián heard Martín tell some If more people live here, continue with Person 2. a Latin American country, and I was raised in Latino Culture. So were you!!!! hot Armenian girls that were sitting across their table, that both he and Sebastián were the new Latin lovers in town. 22
  • 23. CONTACT Armando Azarloza President Axis 8687 Melrose Ave., 9th Fl. Los Angeles, CA 90069 aazarloza@theaxisagency.com 23
  • 24. Los Angeles New York Miami Chicago Dallas Austin www.theaxisagency.com 24