March, 2018

Local Digital Market Future

● Focus on developing 10x strategies for emerging business platforms and products

● Work with Google Premier Partners

● Live in Mountain View, CA

● MBA, The Wharton School

● Systems Engineer, Universidad Nacional de Ingeniería

Karina CanalesSales Insights Manager

Agenda

Overview1

2Puerto Rico landscape

3Current trends

4How to stay ahead

2005...

2013

República Dominicana

10.7M|6M|57%|3.8M

Puerto Rico

3.4M|3M|83%|2.5M

5M + 3-5M

Aruba

104K|92K|89%|66.5k

Trinidad y Tobago

1.3M|950K|69%|841KM

1-3M < 1M

Users of Internet

POPULATION | INTERNET USERS | INTERNET PENETRATION | MOBILE INTERNET USERS

18.7M 11.8M 63% 8.6M

Aruba, Bahamas y Puerto Rico are the leaders in the region for internet penetration

República Dominicana, Puerto Rico y Jamaica are the countries with the highest number of

users of internet

Bahamas

397K|333K|84%|200K

Jamaica

2.8M|1.5M|56%|1.2M

Fuente: Usuarios y penetración de internet: We are social 2017 (LINK) - Población: Banco Mundial 2017 - Internet móvil: GSMA Intelligence 2017 (LINK)

Data referring to the main Caribbean markets

The Caribbean digital and mobile landscape

Puerto Rico is a true digital oasis

Fuente: Usuarios y penetración de internet: We are social 2017 (LINK) - Usuarios Internet móvil y penetración: GSMA Intelligence 2017 (LINK)*Países seleccionados: Bahamas, Rep. Dominicana, Jamaica, Puerto Rico, Aruba y Trinidad y Tobago

2nd country in the Caribbean * with

more internet users

3rd country with the most internet

penetration in the Caribbean *

Growing 8% between 2016 and

2017

1st country with the most mobile internet

penetration in the Caribbean *

3M 83% 68.8%Internet users

2017

Internet penetration

2017

Internet

penetration via

mobile

2017

2.5MInternet users via

mobile

2017

2014

NU

MB

ER O

F IN

TER

NET

US

ERS

,P

UER

TO

RIC

O

3M

56% 83%% Penetration

2017

2M

50%

Less than once a week

1 to 2 times per

week

3 to 4 times a week

5 to 6 times a week

EverydayAlways

connected

FREQUENCY OF CONNECTION OF USERS IN PUERTO RICO

Source: Internet users: Digital in 2017, Global Overview. We are social 2014, 2017 (LINK) (LINK) Connection Frequency: Technical Studies 2016 (LINK)

Number of internet users in Puerto Rico is 83% of the population

12 to 17 18 to 24 25 to 39 40 to 54 55 to 64

Fuente: Digital Mobile Behavioral Study 2016. Estudios Técnicos 2016 (LINK)

65+

96%98.3%

92.9%

75.6%

52.8%

15.7%

INT

ERN

ET P

ENET

RA

TIO

N B

Y A

GE

IN P

UER

TO

RIC

O

All ages in Puerto Rico are using the internet, with young people between 18 and 24 being the highest users

70%Of Google searches

are done through mobile devices

+ 86% of businesses in Puerto Rico are connected to Broadband Internet

... And they are constantly looking for solutions to grow

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem

- Tomorrow -- Today -- Yesterday -

Shift in Technology

Artificial IntelligenceMobile Web

Over the next 5 years, the changes to the global market will be substantive

MOBILE VIDEO MACHINE LEARNING

So what are the key global trends?

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem

Proprietary + Confidential

Proprietary + Confidential

Google Data, “How People Use Their Devices,” Mobile Technology Monitor, 2017

MOBILE

We spend almost 3

hours a day on our

mobile phones

89%Of smartphone users in

Central America/Caribbean

search online before buying

a product or service

A consumer takes less than 20 sec. to purchase online.

Decisions happen faster than ever, making it critical for marketers to be present with the right message and engage potential customers in the moments that matter.

Increased mobile use

92%people who search on

their phone and make a related purchase in

subsequent 24 hours

76%of people who conduct a

local search on their phone visit a business

within 24 hours

People spend more time on their phone than PC

Source: Google data

Proprietary + Confidential

Of users will leave a site that takes longer than 3 seconds to load53%

Source: Doubleclick: "The need for mobile speed: How mobile latency impacts publisher revenue"

Rate by which conversion increases with every second of

improved load time on a mobile site

27%

Puerto Rico has the highest number of mobile searches in Central America and the Caribbean

Source: Google. Internal Data. Central America and the Caribbean, representative verticals, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Puerto Rico and the Dominican Republic, 2017.

Opportunity to invest more where people spend most of their time

Source: eMarketer, April 2016

VIDEO

Audiences are

shifting from

traditional to digital

video

82%Of internet traffic

will stem from video by 2020

Source: SMB Trends Report InfusionSoft 2017

“Video is King”

Source: SMB Trends Report InfusionSoft 2017

4xConsumers

prefer video to reading about a

product

Video humanizes what it is you’re doing and makes your story real and tangible.

Source: BIA/Kelsey, 2016

$3.8B

$4.3B

$1.4B

$2.1B

$2.8B

$3.3B

Advertisers tripling online video and mobile video spending

Opportunity to grow even more customers

Min

ute

s

Source: Emarketer 2017

People are spending more time watching digital videos

306%Improvement in

video click-through over mobile

+20%Of digital advertising

dollars now being spent on video

Customers pay attention to video

1.8XMore likely that

people will pay

attention to ads on

YouTube vs. Social

networksSource: Nielsen Consumer Neuroscience: U.S., Video Ad Cross-Platform Research Commissioned by Google.

Video growth in Central America and the Caribbean

63%Of smartphone users

acknowledge access to

internet for online

videos every day

YouTube is 2.5x more efficient than TV when it comes to generating reach

9 out of 10

Users in Puerto Rico consider YouTube as the preferred page to watch videos

55%Users consider that advertising on YouTube is more focused on their interests and therefore enjoy it more

Fuente: Estudio Micro-Momentos IPSOS, Centroamérica y Caribe. 2016 Nota: “Usuarios” hace referencia a los usuarios de smartphone de Puerto Rico

Video users are getting more mobile

Costa Rica

Puerto Rico

Panamá

República Dominicana

El Salvador

Guatemala

Honduras

Nicaragua

3.8

2.7

2.5

5.4

3.1

5.6

2.7

2.0

Google Users in Millions

(Buscador & Red de Páginas Afiliadas; est. 2017*)

*Fuente: Usuarios de Internet: DIgital in 2017, Global Overview, WeAreSocial 2017; estimaciones Google Centroamérica y el Caribe: Estimaciones de Google aplicando benchmarks regionales

3.4

2.5

2.2

4.7

2.7

4.7

2.3

1.7

YouTube Users in Millions

(est. 2017*)

Users in Millions (% de penetración)

de Internet(est. 2017*)

4.2 (87%)

3.0 (83%)

2.8 (70%)

6.0 (57%)

3.4 (55%)

6.2 (37%)

3.0 (36%)

2.2 (36%)

MACHINE LEARNING

80%of marketing execs

believe AI will

revolutionize their

industry by 2020

Source: DemandBase, 2016

UNIQUE

AUDIENCE

INFORMATION

MACHINE

LEARNING TO

UNDERSTAND

INTENTION

Leading brands use audience information intelligently

Leading brands understand and segment their most valuable customers, interacting with everyone in

a different and assertive way, building relationships beyond the initial acquisition

SearchSearch ranking

Speech recognition

AndroidKeyboard & speech input

PlayApp recommendations

Game developer experience

GmailSmart reply

Spam classification

ChromeSearch by image

AssistantSmart connections

across products

YouTubeVideo recommendations

Better thumbnails

MapsParsing local search

TranslateText, graphic and

speech translation

CardboardSmart stitching

PhotosPhotos search

DriveIntelligence in Apps

A.I. & Machine Learning already in our products

Confidential + Proprietary

Machine Learning spreading across every industry

Manufacturing

Predictive maintenance

Demand forecasting

Process optimization

Travel & Hospitality

Aircraft scheduling

Consumer interaction analysis

Traffic patterns

Retail

Predictive inventory planning

Upsell and cross-channel marketing

Market segmentation and targeting

Financial Services

Risk analytics

Customer segmentation

Credit worthiness evaluation

Health & Life Sciences

Real-time alerts and diagnosis

Disease identification

Patient triage optimization

Energy & Utilities

Power usage analytics

Carbon emissions and trading

Smart grid management

A.I. & Machine Learning opportunities in marketing

Better Service

SharperFocus

DeeperEngagement

36%More conversions at

the same cost per conversion Hotel search platform

Used: Smart Display Campaigns

Success story: Trivago

Machine Learning to save time

In 2017, most of the people in Puerto Rico are already online and their "gateway" is mobile.

People live their passions on many digital platforms: The "Digital Journey" is multi-platform.

Stay ahead of these trends to reach the most relevant audiences for brands on this "Digital Journey."

In Summary...

Proprietary + Confidential

Mobile First Strategy

Reach more customers with video

Applying machine learning to increase efficiency

Thank you!