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Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Jerry Rocha VP, Media SolutionsKety Esquivel VP, Ogilvy PRJames Andrews, Founder- Everywhere•Natalie Keng, Founder/Owner, Chinese Southern Belle

Email questions: [email protected]

The New Face of OpportunityGrowing when the marketplace isn’t

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1900 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 200510.012.014.016.018.020.022.024.026.028.030.0

Birth Rate - ...

The Roots of the 21st Century Lie in the 20th

Post WWIIBaby Boom

Population Aging/Changes in Immigration

Increases in Life Expectancy

Urbanization &Industrialization

The New Face of Opportunity

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And Lead to Six Key 21st Century Trends

UnevenPopulation

Growth

Declining% of HH with

Children

Immigration& Growth in

Ethnic Families

OlderConsumers with

New Needs

Declines inPer HH

Spending

Income Declines & Growing

Concentration


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Uneven Global Population Growth

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2010 to 2050: + 2.24 billion people (32%)

Only 1.7% from the More Developed Regions

Less Developed will grow 58 times faster than More Developed


Source: UN Population Division 2008 Revision

More developed regions

Other less developed

India

Africa

China

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Declining Family HH Share

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

2028

2031

2034

2037

2040

2043

2046

2049

25

30

35

40

45

50

% H

Hs

wit

h C

hild

ren

- U

.S.

• U.S. fertility rates lead the More Developed Regions, but still less than 30% of HHs will

have children

• Large families, who have formed the backbone of the consumer products

marketplace for decades, will be a niche market in much of the more developed

world.


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Immigration & Growth in Ethnic Families

Africa, Asia, South America, Middle East

United States, Canada, Europe, Australia

Immigrant Flows20MM+ per decade

Young people leave for opportunity

Leads to rapid growth in ethnic populations

among families

Bring families or start new ones

New immigrants & the children they will have account for over 80% of all HH growth to 2050

Account for all of the growth among HHs with children


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Slow Growth but a Lot of Change

0 5 10 15

Struggling

Lower Middle

Upper Middle

Affluent

Wealthy

-10.0 0.0 10.0 20.0 30.0 40.0

White

Black

Asian

Other

Hispanic

---------------------------------2010 – 2020 HH Growth Rates---------------------------------

Total HHs with Kids Growth Rate – 7.3%(Two Thirds the Rate of Total HHs)

Multi-cultural marketing will be mandatory throughout the More Developed World to reach families with children


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U.S. Change in Share by Affluence Groups

-30

-20

-10

0

10

20

30

40

50

Struggling Lower Mid Upper Mid Affluent Wealthy

To 2020 To 2050


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CY 2020 2030 2040 20503250

3300

3350

3400

3450

3500

3550

CPG Per HH Spending Impacts

+0.15%

-1.8%

-3.4%

-4.5%

(Percentages versus current year)


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The New Media Landscape

The New Face of OpportunityCopyright © 2010 The Nielsen Company. Confidential and proprietary.

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The New Media Landscape

• TV still dominates, but it has changed–Viewers watching as much as ever, despite growth of online

options–Time-shifting via DVR’s–High-definition

• Internet use is also changing–Online video–Social media

•Mobile phones are becoming all-purpose devices–For accessing Internet–For watching video


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The New Family with Children

Changing, Ethnic, Smaller, Older, Segmented



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The New Family Market

Shrinking in share & size

HHs forming later / having kids later

Varied HH composition

Majority multi-cultural soon

Becoming more downscale


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2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

2048

2050

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

White Black Asian Others Hispanic

Newborns Will Be Majority Multi-cultural Before 2020


U.S. Census Bureau

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The New American Family

•Hispanics largest and fastest growing segment within• Easier to reach with targeted media

•Non Hispanic groups are more diverse –Different languages–Few national media choices

•Need to be targeted on the local level –Multiple foreign language channels but no

national presence– In Charter cable system in LA, Armenian

Channel is a top ten channel


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Hispanics’ Media Use

• Increasingly, reaching the new family means reaching Hispanics

• Where can you reach them?

– How do their media habits compare to those of non-Hispanics?


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The Hispanic population is, indeed concentrated in certain parts of the US

Source: Pew Hispanic Center analysis of Decenial Censuses for 1980 and 1990 and U.S. Census Bureau county population estimates (vintage 2000 and 2008)

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But significant growth giving way to new Hispanic ‘hotspots’

Source: Pew Hispanic Center analysis of Decenial Censuses for 1980 and 1990 and U.S. Census Bureau county population estimates (vintage 2000 and 2008)

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Hispanic Households Watch Mostly English-Language TV-- Especially Kids and Teens

Source: National People Meter Panel 1Q10 (12/28/09 – 03/28/10); Share of total weighted viewing minutes based on HUT


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Hispanic Households Less Likely to Own Home Computer with Internet Access or Broadband

Source: National People Meter Panel 1Q10 (12/28/09 – 03/28/10)

Still…• 6 out of 10 have home computer with

Internet• Almost 6 out of 10 have broadband


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Hispanic Households with Home Internet Access Spend Just as Much Time on the Internet And Spend More Time Watching Online Video

Source: Nielsen 3-Screens Report 1Q 2010

Hispanic 18-34 year-olds watch twice as much online video as non-Hispanic counterparts

Monthly Time Spent in Hours:Minutes


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Hispanic Households More Likely to Own Internet and Video-Enabled Cell Phones

Source: National People Meter Panel 1Q10 (12/28/09 – 03/28/10)


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Hispanics Spend More Time Watching Video on Their Phones

Source: Nielsen 3-Screens Report 1Q 2010

Hispanics Use Cell Phones as Substitutes for Home Computer


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Advertising to Hispanics

•Does advertising need to target and address Hispanics directly, or will general market ads suffice?

–Nielsen IAG analysis found that ads created specifically for the Hispanic market had higher recall than repurposed general market spots:– 16% higher brand recall– 22% better message recall

–Higher recall apparently results from culturally relevant cues embedded in the advertising, such as Hispanic characters, music and themes.


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The New Face of OpportunityCopyright © 2010 The Nielsen Company. Confidential and proprietary.

Key Points to Take Away

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What it means for marketers

• All multicultural demos are connected, social and mobile today, looks like the general market of tomorrow

• They are uber connected and in fact a part of the mainstream online from a targeting standpoint. Understanding culture and mindset becomes even more important in targeting this population effectively.

• Mobile marketing is finally becoming a reality; AA, Hispanic consumers are an obvious consumer to target on this platform.

social media atlanta 111010

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