hs news pitch deck
TRANSCRIPT
Hispanically Speaking News
Latinos Preferred Online Casita and Virtual Cultural Center
www.hispanicallyspeakingnews.com
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Wednesday, June 19, 2013
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. [email protected]
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Wednesday, June 19, 2013
Problem /SolutionEstelle G. Walgreen
- 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
CONTENTTURNED INTO VALUE
AUTHENTICLATINO VOICE
HSN Solution
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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
Market ValidationEstelle G. Walgreen
$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 Thousand Views4
Wednesday, June 19, 2013
Market Size“Latinos are most engaged and dynamic population on digital space” - Nielsen
52 Million20.8
Million
39.4 Million
$104 Million
U.S. Latino/Hispanic MarketU.S. Latinos Seeking Hispanic Content Sites
Potential HSN Market Value
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
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
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Wednesday, June 19, 2013
Com
petit
ive
COMPETITIONEstelle G. Walgreen
Traditional Media
Spanish Language
Digital Media
Digital Networks
Community Newspaper
(online)
LandscapeEnglish
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
Num
ber 1
Number 1
Number 1Competitive
Top 10
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Wednesday, June 19, 2013
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
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User AcquisitionEstelle G. Walgreen
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
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Wednesday, June 19, 2013
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
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Wednesday, June 19, 2013
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 1Yr 2Yr 3Yr 4
500,0001,000,0002,500,0005,000,000
What We’ve Done Where We’re Going
$250,000$765,000$2.65 M $5.6 M
Market Value **
*Worst case scenario: digital ads/user-fees/affiliate programs but no eCommerce $
$2.2 M$4.45M$14.9M $29.5M
** $7-10 Value for monthly uniques plus 3x earnings11
Wednesday, June 19, 2013
Funding NeededEstelle G. Walgreen
What we Need:$400,000 to $500,000
3827,998154982 -6379,996924969 Mexican Peso
150000000.0-250000000.0Costa Rican colon
817501.06-1362501.77Peruvian 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
OROR
How we’ll Take it:
NOT
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Preferably Good Old U.S. Dollars!
OR
Wednesday, June 19, 2013
Risk & OffsetEstelle G. Walgreen
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
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Wednesday, June 19, 2013
Exit StrategyEstelle G. Walgreen
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
* Enterprise Value**Data does not Include Yahoo acquisition Tumblr, May 2013, $1.1B, @ $9.47/monthly uniques
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Wednesday, June 19, 2013
Meet The PlayersEstelle G. Walgreen
Estelle W.Co-‐Founder, Editor-‐in-‐Chief
Martin KProgrammer
Cristian GFinance Contributor
Kim K.Co-‐Founder, COO
La Communidad Contributors
Nicole L. Editorial
Dena M.Health Contributor
Elizabeth LEducation Contributor
Jessie R. Editorial
Alfredo LSports Contributor
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Wednesday, June 19, 2013
Gracias
www.hispanicallyspeakingnews.com
EWalgreen @HS-News.com
Estelle Gonzales Walgreen
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Wednesday, June 19, 2013