2010 AOL Hispanic Cyberstudy results.

1. Hispanic
Cyberstudy
Marketing to the web’s
most rapidly growing population

2. Hispanic Cyberstudy
Marketing to the web’s most rapidly growing population
A study by AOL Advertising & Cheskin:
Why and how are Hispanics using the internet
in their daily lives?
Quantitative Methodology
Telephone Survey:
717 Hispanic households across the US
(90 via cell phone)
Online Survey:
616 Hispanic households across the US
634 General Market across the US
For years, marketers have struggled with the complexities of the
Hispanic market. Given the blistering growth of their population and
subsequent rise in purchasing power, AOL wants to help marketers
and agencies understand the changing Hispanic market, and improve
their advertising performance with this segment.
To stay ahead of market trends, AOL Advertising commissioned
Cheskin Added Value to conduct research about Online Hispanics.
This is a continuation of a study AOL began in 2004.

3. The basics

4. America, the diversified
A forecast of the 2010 Census
50 Million Hispanics will be
living in the US
Nearly one in six US residents
will be Hispanic
Los Angeles County is expected
to be home to the largest
Hispanic population in the US –
exceeding that of Costa Rica
Experts anticipate that the US will be more diverse
than ever, with only 22% of households expected
to be the iconic American family of mom, dad and
kids. The Hispanic population is expected to be
much younger compared to other racial groups.
SOURCE: Francese, Peter. (2009). 2010 America: What the 2010 Census means for Marketing and Advertising. Advertising Age.
Retrieved from http://adage.com/

5. The American Yardstick
Market segmentation of Online Hispanics based on acculturation
23% 31% 46%
Hispanic Dominant Biculturals US Dominant
• Predominantly speak • Speak both languages • Speak English at home
Spanish at home at home • Most media consumption
• Most media consumption • Most media consumption in English
in Spanish in English • US-born
• Foreign-born • Foreign and US-born • Mean age 37
• Mean age 40 • Mean age 34 • Lived in the US 36 years
• Lived in the US seven • Lived in the US 22 years average
years average average
Currently, marketers tend to divide Hispanics into three different categories: Hispanic Dominant,
Bicultural and US Dominant. Offline, the sizing of these groups is reversed, with Hispanic Dominants
representing 52% of the segment, Biculturals 19% and US Dominants 28%.

6. A Different Measure
Segmenting by life stage group
No Kids
Young and Free 30% Average 26 YO
Single
2 Kids (0-11)
Young Family 17% Average 33 YO
Married
2 Kids (12-17)
Mature Family 23% Average 40 YO
Married
No Kids
Prime of Life 18% Average 41 YO
Married
Kids 18+
Empty Nester 13% Average 57 YO
Married
Segmentation by life stage provides another way to understand the values and interests of
Hispanics, based on their preferences and behaviors, which are not necessarily unique to their
cultural background or acculturation level.

7. Pursuing
passions online

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9. Entering the mainstream
Internet usage among Hispanics is catching up to the general population
2002 2009
75%
71
65%
57
58
55%
45%
35%
41
Hispanic General Market
Since our first study in 2002, the number of Hispanics online has grown significantly – faster, in fact,
than the total US online population. The online adoption gap between Hispanics and the General
Market has narrowed to 13 points over the past few years.
*Note: General Market data provided by PEW Research Center in July 2008; Hispanic data provided by AOL Advertising Cyber Study in July 2008.

10. Who are they?
Hispanics vs. General Market users
General
Hispanic
Market
AGE: 37 AGE: 46
HOUSEHOLD INCOME: $50K+ HOUSEHOLD INCOME: $75K+
CHILDREN: YES! Sandra 6 and Danny 5 CHILDREN: YES! Stephanie, 22
Both offline and online Hispanics are much younger than the general population, with larger
households and younger children. 46% of Online Hispanics are under 35 years old, compared to
just 28% of the US internet population. Meanwhile, 30% of the General Market online population
are empty nesters – only 13% of Hispanics fall into this group.

11. Young Hispanics log on most
Online Offline
100%
23 34 44 40 67
77
66
56 60 50%
33
0%
Young and Free Young Family Mature Family Prime of Life Empty Nesters
Online Hispanics are younger than their offline counterparts,
who are also more likely to be empty nesters.

12. Hispanics love and
trust the internet
Hispanics are more enthusiastic about the benefits of the internet than
the General Market – so much so that they have more confidence in
online product ratings than the opinions of their friends.
28%
Friends’ Opinions
72% Product Rating Sites
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labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris
nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate

13. They view the internet as
a place of discovery
and connection
Hispanic General Market
64 51 57 43 44 25 36 30 27 15
The best place Always go to Use the internet Internet is an A great place
to keep up with the internet to to keep up with important tool to meet people
current events find deals pop culture for building a with similar
better life views
Hispanics have a high regard for the internet as a medium for information and socialization. Fully
one-third of all Hispanics, regardless of acculturation and life stage, view the internet as a key
component in building a better life.

14. The internet informs their purchase process
Hispanic General Market
90%
85%
80%
75%
70%
Start Learn about Learn about Get advice Where to Compare Make final
learning brands features on what to buy prices decision
process buy
Hispanic consumers view the internet as a very important information source in the purchase
decision-making process. They look to the internet to learn about products, brands, features,
stores and pricing.

15. Not only are they technology leaders...
Hispanic vs. the General Market:
How they access the internet
100% vs 100% 18% vs 11%
32% vs 20%
Compared to the General Market, Hispanics are more sophisticated technology users. Their use of
a wide range of devices (e.g. smartphones and gaming devices) to access the internet illustrates a
high level of comfort with and willingness to try new technologies.

16. ...Hispanics are early adopters
Hispanic General Market
“Online Hispanics are eager
and adventurous.”
27 13 36 22 33 24
Early adopters Considered tech expert Keep up with the
by friends and family latest technology
Compared to General Market users, Online Hispanics are more adventurous and eager to try new
media communication formats and technologies. They also keep up with the latest tech news, and
like to help friends and family with their purchases.

17. Everything you know is wrong
Acculturation doesn’t equate with technological sophistication
Hispanic Dominant Bicultural US Dominant
PC access 100% 100% 100%
Keep up with the
latest technology 29% 35% 34%
Considered tech
expert by friends 41% 40% 31%
and family
Early adopter 41% 25% 22%
Hispanics are universally embracing new technologies regardless of their acculturation level.
Furthermore, contrary to common stereotypes, the most acculturated Hispanics are not necessarily
the most technologically savvy. In fact, less acculturated Hispanics tend to be early adopters,
evaluating new formats and spreading the word in their communities.

18. A look at the
future

19. The Hispanic power user
AGE: 34
GENDER: Male
EMPLOYMENt: Full-time
FAMILY StAtUS: Married
with young kids
HOURS ONLINE:
24 hrs/week
One-fifth of Online Hispanics are power users who give us a glimpse of future adoption by mainstream
users. This group spends over 24 hours per week on the web, connecting over half the time via
mobile (57%) or other devices (47%). They also view themselves as innovators, keeping up with the
latest technology (100%), serving as tech experts to friends and family (100%) and adopting new
technologies first (100%).

20. Catching the viral bug
Power User Mainstream Hispanics
Via email
(message or link) 79% 91%
Over the phone/
in-person 38% 55%
IM to friends/
family 64% 51%
Write a blog
52% 21%
Social networking
site 68% 55%
Write a review on a
review site 28% 6%
Traditional Viral
Power users are also highly influential in their communities, spreading the word about deals (91%)
or the latest entertainment news (87%). They are content creators and use the web to broadcast their
point of view, while mainstream Hispanics are more traditional in how they communicate with others.

21. Connecting
through life
stages

23. The old view
traditional marketing to Online Hispanics
0 20 40 60 80 100
10 30 50 70 90
Hispanic
75
Dominant
25
Bicultural
12
88
US
1
Dominant
99
Spanish English
To date, messaging for the Hispanic community has been organized around acculturation and language.
While 75% of Hispanic Dominants prefer product marketing information in Spanish, there is an
overwhelming preference among Bicultural and US Dominants for marketing in English.

24. A new perspective
the importance of life stages
Spanish English
100%
96.8 71.6 65.6 56.9 81.2
50%
3.2 28.4 34.4 43.1 18.8
0%
Young and Free Young Family Mature Family Prime of Life Empty Nesters
Marketers should always take their target audience’s life stage
into account before determining the language/media mix.
If we look at the language preference for websites by life stage, English marketing messages are
favored by virtually all of the youngest Hispanics and most of the other market segments. This
has important implications for marketers, who should always take into consideration their target
segment’s needs and passions before determining the appropriate language/media mix.

25. Can you say it in English?
Can’t do all the same things
on Spanish site 25.3%
The English site is better /
more comprehensive 23.1%
English site has more detail
than the Spanish Site 21.1%
English site has more
useful information 17.9%
English site has better
deals than the Spanish 8.8%
In general, Hispanics recognize the disparity between the availability of English and Spanish language
content. They perceive English sites as more comprehensive, detailed and useful than Spanish-
language counterparts. This belief is prevalent across all levels of acculturation and life stages.

26. Biculturals and US Dominants are younger
Hispanic Dominant Bicultural US Dominant
100%
21 21 20
5 9 6
39 27 32
50%
18 15
21
25 27
14
0%
Young and Free Young Family Mature Family Prime of Life Empty Nester
The preference for English among the younger segments is also influenced by the demographic
composition of Bicultural and US Dominant Hispanics, who tend to be younger and more engaged
in the digital lifestyle – making them the sweet spot for most advertisers.

27. A closer look:
Audience
perspective

29. Media consumption
Online Hispanics prefer English language online media
14.36 9.3 12.42 2.5 20 3
Hispanic dominant Bicultural US dominant
Hours Online in English Hours Online in Spanish
Most Hispanics consume online media in English – even Hispanic Dominants. This reflects the
greater availability of English language sites. This is not unexpected, as 27.6% of web content is
created in English, with Chinese second at 22.1% and Spanish a distant third at 7.9%.
Source: Internet World Stats. (2009). Top 3 Internet Languages. Retrieved December 8, 2009 from www.internetworldstats.com/languages.htm

30. A tie between tongues
Online Hispanics seek out the best experience
60
Keep Up With Home
Country News
45 Entertainment
News
% Consume content
in English multiple
Follow Passions
times per week
& Hobbies
30
Keep Up With
US News
Financial
15 Information
Research
Purchases
0
0 15 30 45 60
% Consume content in Spanish multiple times per week
The chart above shows the language consumption patterns among consumers who prefer Spanish.
Clearly, they will consume similar types of content in both languages. This suggests that Online
Hispanics are not opting for one language over the other. Rather, they’re looking for the best online
experience regardless of language.

31. Quality matters
Hispanics distrustful of Spanish language sites
I trust the Spanish Site More
3.1%
Spanish site has more useful information
2.8%
One of the reasons why so many Hispanics prefer English content is their mistrust of sites
in Spanish, which often are little more than literal translations of English content. Only 3% of
respondents found Spanish language sites more trustworthy and useful than those in English,
leaving an important percentage of the Hispanic segment feeling underserved.

32. When Spanish is preferred…
Do it well
It’s more important than just straight translation
51.9 47
It takes into account my ties to home country
24 75
It reflects my experience in the US
44 56
0 20 40 60 80 100
% Consume content in Spanish multiple times per week
It Matters Very Important
Those who prefer Spanish marketing find that tailored content makes them feel closer to home.
They also favor a meaningful transcreation over a literal translation of an English site.

33. When English is preferred...
Don’t generalize – be relevant
It takes into account my ties to home country
36 33
It reflects my experience in the US
33 33
0 20 40 60 80 100
% Consume content in English multiple times per week
It Matters Very Important
Even where there is a high preference for English content and marketing – particularly among
young Hispanics – a remarkable 66% of the audience finds it important that content takes into
account their home country and their experience in the US.

34. Appearance counts
Be respectful with creative executions, images
It has pictures of people who look like me
For those who prefer Spanish marketing
40.8%
For those who prefer English marketing
57%
0 20 40 60 80 100
Media representation issues become more important for more acculturated and younger Hispanics.
Imagery should be carefully selected to provide positive identification with culture without stereotyping.

35. Summary
Hispanics are influencing Life stage is key tailor your message to
the mainstream Your language/media mix their experience
Online Hispanics have should be based on the life stage Hispanics prefer messaging
proven to be tech-savvy of your consumer. that takes into account their
media trendsetters. backgrounds and experiences.
For more information, please send your request to research.team@corp.aol.com

36. Notes

37. the team
Liz Bloom, Maria Pousa, Michele Resnick and Stu Rodnick
Special thanks to the 360 Creative Team at AOL for producing this booklet, Guy Garcia for his
feedback and time, Rebecca Abravanel for answering all of our questions, and Olivia Maloney,
Miguel Ferrer and Edgar Ochoa for sharing their Hispanic expertise.