Tech-Telecom-Entertainment Hispanic Allocation Impact On Revenue Growth

Tech-Telecom-Entertainment Hispanic Allocation Impact on Revenue Growth
Section 1
Section 1
INTRODUCTION
2 2
About the Author & Sources

The study was commissioned by AHAAs Research Committee and developed and executed by Santiago Solutions Group (SSG), a growth strategy consultancy. Independent methodological review performed by Dr. Cristina Garcia, professor of mathematics & statistics at USC.
Data Contributors Financial revenue growth data extracted from companies 10Ks. Parent company advertising spend data for 2006-2010 Hispanic/Non-Hispanic media (TV, Radio, Print) collected from The Nielsen Company. Nielsen Video Census 2012; Mobile Insight Survey: Netview 2012, Mobile Bill Panel, Nielsen TV Panel 2011 GfK Roper & 2011 Doublebase GfK MRI - Base: All Adults 18+; n=6.6K Hispanics & 46.5K Non-Hispanics. (Sampling details in Appendix E). 2010 Geoscape - Consumer Spending Dynamix Scarborough USA+ 2011 Release 2 Total; Base: Adults 18+; Respondents: 151,099 White Non-Hispanics & 27,301 Hispanics
3
Background
Since 1998, AHAA has been helping its members serve its clients through breakthrough independent studies that
increase understanding of what it takes to win the market, share new concepts, and identify best practices of marketing to Latinos.
Study 2 Hispanic Ad Allocation Consumer Packed Goods Study 1 Hispanic Ad Allocation
Revenue Growth Study Series

AHAA has led the industrys first empirical studies to quantify the relationship and impact of Hispanic investment allocation on annual revenue rate of growth.
In October 2011, Part 1 uncovered a strong positive relationship between allocation of Hispanic ad resources and topline growth among Best-In-Class companies, those allocating over 14% of their budgets to Hispanic media.
Current Study (Study 3) Hispanic Ad Allocation Technology
In March 2012, Part 2 demonstrated that Hispanic Allocation positively affects revenue growth rates for Consumer Packaged Goods companies, explaining about 35% of changes in revenue growth.
This third part of AHHAs Revenue Growth study focuses on Technology, Telecom and Entertainment companies including:
manufacturers of consumer hardware (computers, TVs, cell phones) content (media, movies, games) connectivity providers (cable, satellite, wireless)
Top 500 Overall U.S. Advertisers
Other Sectors Future studies
Tech Sector Challenges

Tech Growth Rates Has Stalled
Domestic revenue growth rates for the tech-telecom-entertainment sector plunged from about 11% a year in 2006-2007 to just about 3% 20092010, about a third of what prerecession levels. Technology and new media will further redefine lifestyles and business models.
Marketers Face More Competing Needs

1. Identifying new growth opportunities 2. Capturing fair share of fewer growth markets 3. Holding on to diminishing importance of aging General Market
Reset beyond economic adjustment

Consumers changed over long run
More brand fickle More frugal value-oriented
Hispanic Market Highlights

MARKET SIZE
2010 Population 2011 Hispanic Share of US Population 2011 Hispanic Share of US adults 50.7M1 17%2 15%2
4.0% 3.5%
Population CAGR
7x
3.6%
3.0% 2.5%
2.0% 1.5% 1.0% 0.5%
GROWTH
Hispanic Population 2000-2010 CAGR8 v Non-Hispanic 3.6% v. 0.5%3 56%4 74%7 Hispanic Share of Total US Population Growth 2000-2010 Hispanic Share of Labor Force Growth 2010-2020
0.5%
0.0%
Hispanic
Non-Hisp
Share of Population
ECONOMIC
2012 Estimated Buying Power
Hispanic Buying Power 2000-2010 CAGR v. Non-Hisp
1, 3, 4 2010 2 SSG
Hispanic 17.0%
$1.2 Trillion5
7.8% v. 3.4%6
Buying Power CAGR
8% 7% 6% 5% 4% 3% 2% 1% 0% 2x
7.8%
Census ACS Analysis of Census 5,6 Selig Center at the University of Georgia 7 Bureau of Labor Statistics 8 CAGR = Compound Annual Growth Rate - the year-over-year growth rate of an investment over a specified period of time; the rate at which an investment would have grown if it grew at a steady rate.
3.4%
Hispanic
Non-Hisp
Hispanics have generated about a third of the Tech consumer base growth; expanding 3x faster than NH
While Hispanics accounted for 17% of the population in the US, they also contributed to 34.8% of the growth in the Tech-TelecomEntertainment consumer base. During 2006-2010, the Hispanic consumer base in the Tech-Telecom-Entertainment category grew 3 times faster than the NonHispanic consumer base.
Source: SSG Analysis of 2006-2010 GfK MRI
Study Objectives
To understand if there a significant difference in the revenue growth rate attained by Tech-Telecom-Entertainment advertisers which designate higher allocation of ad resources to the Hispanic market and those that focus less.
Study Variables
Aggregate Hispanic Allocation 2006-2010

The percentage of ad budgets dedicated to Hispanic media (Hispanic Allocation) possibly impacting Revenue growth rates*. The % of total advertisement dollars spent in TV, Radio, and Print (per Nielsen tracking) assigned to Hispanic-centric media channels throughout 2006 to 2010.
Accepted, standardized marketing spend measurement of below the line expenditures is not available, thus, not utilized. Online expenditures will be included in future studies. *CAGR = Compound Annual Growth Rate - the year-over-year growth rate of an investment over a specified period of time; the rate at which an investment would have grown if it grew at a steady rate.
Revenue CAGR 2006-2010

Revenue CAGR is the dependent variable which was tested against different levels of Hispanic Allocation.
Revenue reflected from US-only, organic, per 10Ks and SEC reports.
May have been adjusted to exclude extraordinary financial transactions. Revenues have been adjusted where possible to include streams from acquisitions, if enough clear data has been stated in corporate financials.
Methodology
Hispanic Allocation and organic revenue growth rates of 40 Tech-TelecomEntertainment companies, a subset of the Top 500 US advertisers which are publicly-held, were tested for 2006 to 2010.
First, we tested the linear association of the two variables through correlation analysis. Next, the causal nature of Hispanic allocation upon revenue growth rate was tested through linear regression analysis. Details of statistical analysis n Section 5.
10
Tech Sample Set

Out of about 35,000 US advertisers tracked by Nielsen, identified the Top 500 overall Advertisers (TV, Radio, Print) by year and in aggregate between 2006 and 2012. Matched each parent company to available US organic revenue data from 10Ks or published disclosure. Adjusted for extraordinary transactions and calculated 2006-2010 compounded annual growth rates. Companies with financials that were not adjustable such as some with undisclosed details around M&As, were eliminated from the final regression set. Ended with 40 companies in the Technology, Telecom, Media & Entertainment sector.
Top 500 U.S. Overall Advertisers 2006-2010
(500)
Public (418)
Private (-82)
Consistent Advertisers (246)
Inconsistent Advertisers (-172
Publicly Traded w/ clear Organic US Revenue (235)
Unadjustable M&As Inconsistent Data (-9)
Tech-TelecomEntertainment (40)
11
40 Tech-Telecom-Entertainment Companies In Sample Set
For GE, only its Media & Entertainment revenues while owners of NBCU were included in the analysis; excluded all other LOBs revenue streams.
12
Section 1
Section 2
TECH-TELECOM-ENTERTAINMENT STUDY FINDINGS

13 13
Finding 1: Tech-Telecom-Entertainment Growth Rates Are Directly and Positively Impacted by Hispanic Allocation
The study shows a direct & positive relationship between Tech-Telecom-Entertainments Hispanic ad allocation and overall topline revenue growth. The study shows that in general the higher the Hispanic allocation displayed on the horizontal axis, the higher propensity of organic revenue CAGR, indicated on the vertical axis, attained by companies in the sector, and vice versa.
Please see Appendix D (Graph 1) for Detailed Graph and Graphical Analysis.
14
Finding 1: Tech-Telecom-Entertainment Growth Rates Are Directly and Positively Impacted by Hispanic Allocation
The top 30 percentile of Allocation and top 30 CAGR percentile includes DirecTV, Echostar/Dish Network, Metro PCS, Leap Wireless, Time Warner Cable and Verizon.
Anomalies (See p 17 & Appendix F)
Top 30 Percentile
The mid 40 percentile in Allocation & Growth include: T-Mobile, Cablevision, AT&T, Lions Gate Entertainment, Comcast, Vonage, Best Buy and News Corp.
Please see Appendix D (Graph 1) for Detailed Graph and Graphical Analysis.
Mid 40 Percentile
Bottom 30 Percentile
15
Finding 2: Apple & Samsung are in a class apart

Deviations from the normal or anomalies
As the top global innovation leaders, Apple & Samsung have reinvented how the world communicates, gathers information and is entertained. In 2007 Apples iPhone reinvented the phone and ushered in the modern era of intelligent, connected devices. Samsungs Galaxy, the first set on Googles Android platform, was released in 2008 and has since overtaken the lead smartphone position.
In just five years, they forced a flurry of changes like tablets, apps, and mobile marketing as well as upheaval among tech manufacturers, retailers and data services revenues for connectivity providers.
See more details on Apple & Samsung in Appendix F 16
Finding 3: As Hispanic Allocation increases, the revenue rate of growth of Tech competitors soars sharply
Frequencies* Companies in the Top Tier allocate twice as much as the Mid Tier
but the Top Tier growth is 3 times larger than the Mid Tier
Average Allocation & Growth By Tier*
16.0%
14.0% 12.0% 10.0% 8.0%
13.3%
12.9%
06-10 Hisp Allocation 06-10 Revenue CAGR
The companies in the Bottom Tier see a decrease in growth

From these frequencies it seems that minimal allocation means no growth or even a reduction in growth.
This trend is what the regression model will test...
6.2%
6.0% 4.0% 2.0% 0.0% -2.0% -4.0%
All Avg Allocn 6.3% All Avg Rev CAGR 3.4%
3.4%
0.4%
-1.4%
Top Tier 71-100 Mid Tier 31-70 Bottom Tier 0Percentile Percentile 30
*Excludes Anomalies: Apple & Samsung

17
Finding 4: Every 1 point increase in Hispanic Allocation yields a boost of about two-thirds of a point in annual growth rate
The regression demonstrates that for every additional percentage point increase in Hispanic Allocation, we would expect an average annual organic revenue growth boost of 0.68%.
That is, on average, for allocating an additional 10% of the companys ad resources to Hispanic media over 5 years, an average increase of 6.8% in organic revenue annual growth rate would be expected.
+1 point Hispanic Allocation
+0.68 point Annual Revenue Growth Rate
Organic revenue growth rates decline sharply as Hispanic share of budgets decrease and vice versa.
18
Finding 5: Hispanic Allocation explains 30% of increase in Tech Sector Revenue Growth Rates*
Hispanic Allocation explains a substantial portion (30%) of Tech-Telecom-Entertainment increase in topline revenue growth
The other 70% may include other critical factors such as product innovation, user experience, brand equity/reputation, brand experience, strategic focus, price, operational alignment, distribution, sales force, past performance, talent, incentives, overall segmentation expertise, etc. Further analysis is needed to determine what other drivers could be measured in standard ways and what statistical contribution these may have in revenue growth. * Excluding Anomalies: Apple & Samsung
19
Tech-Telecom-Entertainment & Revenue Growth Drivers

Other Drivers of Growth 70%
Hispanic Marketing Allocation 30%
Finding 6: Including leading global innovators, Hispanic Allocation explains 17% of Revenue CAGR
Including Apple & Samsung, Hispanic Allocation alone explains about 17% of Tech-Telecom-Entertainment increase in topline revenue growth.
The other 83% may include other critical factors such as product innovation, user experience, brand reputation, brand experience, strategic focus, price, measurement tools, distribution, sales force, segmentation expertise, etc. Further analysis is needed .
Tech-Telecom-Entertainment & Revenue Growth Drivers

Other Drivers of Growth 83% Hispanic Marketing Allocation 17%
The study shows that an average revenue growth rate of 0.56% over the 5 years is expected for every additional percentage point increase in Hispanic allocation.
20
Summary Findings
1. There is positive relationship between Hispanic allocation and Revenue CAGR, meaning, the more a company allocates Hispanic budget, the higher the corporate growth.
As Hispanic Allocation increases, the revenue rate of growth of Tech competitors soars sharply
2.
Tech-Telecom-Entertainment companies show that Hispanic Allocation accounts for 30% of increase in revenue growth.
Including Apple & Samsung, Hispanic Allocation explains about 17% of the fluctuations in revenue growth rates, accentuating the need for Hispanic allocation among tech convergence companies that dont have revolutionary innovations and brand experiences.
21
Section 1
Section 3
HISPANIC OPPORTUNITY DRIVERS

22 22
Psychographic & Behavioral Drivers By Purchase Cycle Stage
23
Hispanics Needs of Technology Go Beyond Functionality!

Top Box: Agree Completely or Agree Mostly, or Very Important
To
Hispanic Index v NH
169
I want others to say "wow" when they see my electronics. My cell phone is an extension of my personality.
163
I am among the first of my friends and colleagues to try new technology products.
Source: 2011 Doublebase GfK MRI - Base: All (n= 6.6K Hispanics & 46.5K Non-Hispanics)
133
24
Hispanics Tend To Be Tech Early Adopters and Influential

Hispanic Index v NH 153
I give others advice when they are looking to buy technology or electronics products. I enjoy learning about technology or electronic products from others. I enjoy reading about new technology products.
131
131
25
Hispanics Are Ideal Tech Consumers!

Technology friendly and willing to pay more
Hispanic Index v NH
Im fascinated by new technology.

I prefer products that offer the latest technology. Im willing to pay more for top quality electronics.
130
129 125
26
Hispanics Use Tech As Extension of their Highly Social Culture

High tech adopters; leaped frog to mobile
Nearly as likely to have Internet at home More likely to have smartphone Monthly spend on cell phones Only cell
Hispanic Index to NH
90 128 115 129
Particularly social across all platforms

Calls per day Monthly time in social networks
144 113
Heavy video content users across all screens
Time spent streaming

Online Video monthly usage Mobile Video monthly usage
118 163 120
Source: Nielsen Video Census 2012; Mobile Insight Survey: Netview 2012, Mobile Bill Panel, Nielsen TV Panel 27
Hispanics Growth Opportunity Will Continue To Be Robust

Hispanics intent to purchase hottest Tech products exceeds that of White Non-Hispanics
Tech Gadget iPad Video Game system MP3 player Blu-ray disc player HDTV
2011 Household Penetration

Hisp Index (vs WNH)
Purchase Intent
Next 12 Months Hisp Index (vs WNH)
141 103 98 93 91
159 209 174 137 170
Source: Scarborough USA+ 2011 Release 2 Total; Base: Adults 18+; Respondents: 151,099 White Non-Hispanics & 27,301 Hispanics
28
Hispanics offer high Lifetime Value

Cumulative total Tech-Telecom-Entertainment spending is 38% greater for Hispanic households than that of White Non-Hispanic households
Driven by 16 years longer Hispanic household lifespan and higher expenditures than non-Hispanic Whites.
Average Aggregate Household Lifetime Spending

NH White Black Asian Hispanic $435,690 $319,359 $1,043,365 $601,991
Source: 2010 Geoscape Consumer Spending Dynamix. 29
Hispanics See Technology as Entertainment!

Top Box: Agree Completely or Hispanic Agree Mostly, or Index Very Important
I think of my mobile phone as a source of entertainment. Computers can be a good source of entertainment.
137
117
30
Section 1
Section 4
IMPLICATIONS
31 31
Hispanic Allocation Impact on Growth Key Takeaways

This study shows that Tech-Telecom-Entertainment companies which allocate higher share of their ad resources at Hispanics, return higher growth rates than those that apportion less.
Devoting adequate resources to Hispanic has a critical role in optimizing Hispanic growth
Hispanic allocation is a significant driver to healthy organic growth in this discretionary category
Hispanic Allocation is substantial enough in the winning equation to transform company results --propelling players, obstructing competitors, building sustainable advantages This is especially so for companies that dont have revolutionary product innovations in their pipeline like the first iPhones, iPads or Google/Android smartphones. Compromising Hispanic Allocation can have negative short and long-term growth effects.
Huge growth opportunity lies ahead as Hispanics continue to lead adoption and usage
Brand loyalties will be increasingly at stake as Hispanics dominate segment growth.
32
Implications for Tech Convergence Sector

Real bottom-line benefits come from consistent allocation investments. Allocations to communications is only the beginning; decisively as important is corporate-wide strategic and operational integration
Developing holistic strategies from communications and product innovation to brand-customer experience. Broad use of all elements of marketing: above and below the line. Responding to the most appropriate cultural insights. As in the CPG sector, successful sustainable growth advantages in Hispanic market might enhance valuation differentials.
Many companies may be falling short of their optimal revenue generation or handing off growth points to competitors with higher allocation and cohesive Hispanic-centric strategies.
33
Section 1
Section 5 STATISTICAL DETAIL & MODEL VALIDATION

Presented by Dr. Cristina Garcia, Math & Statistics Professor at USC Tech-Telecom-Entertainment AHAA Methodology Advisor Hispanic Allocation Impact on Revenue Growth
34 34
Sectors/Super Categories Breakdown

Super Categories (Included) Omitted Advertisers (Reasons)
Tech-TelecomEntertainment
Auto Private
Government
Retail
Consumer Packaged Goods
B2B Insurance/Finance
Unadjustable Mergers & Acquisitions
Non-Profit
35
Test Validations
Main Regression
All validation tests corroborated the same findings. Hispanic Allocation has a direct & significant impact on companies overall revenue growth.
36
Other Key Findings

Three additional validation test regressions corroborated the same findings with 95% statistical significance including:
larger sample size among Top 500 advertisers which are publicly held, 235 companies, looking at allocations relationship with aggregate revenue CAGR
same sample but looking at relationship between allocation and individual years growth changes (between 2006 & 2010), Similar statistical significant findings across 5 other categories. See Detailed Findings after Psychographics section.
37
Main Regression Model (w/o Anomalies)

Hispanic Allocation alone explains about 30% of changes in revenue growth over a 5 year period for TechTelecom-Entertainment (R2=0.30)
An R squared of .30, tells us that roughly 30% of a companys revenue growth is driven by changes in Hispanic Allocation.
Revenue Growth over 5 year period (CAGR 06-10)

Tech-Telecom-Entertainment (N=38)
38
Tech-Telecom-Entertainment Model Findings (w/o Anomalies)

We would expect an average revenue growth of 0.678% over the 5 years for every additional percentage point increase in Hispanic allocation.
Revenue Growth Drivers for Tech-Telecom-Entertainment
In other words, the expected range for allocating 10% of the companys ad resources to Hispanic media over 5 years is an increase of 3.26% to 10.29% in overall corporate revenue growth rate.
All Other Drivers of Growth 70%
Hispanic Allocation 30%
N=38
39
Main Regression Model

Hispanic Allocation alone explains about 17% of changes in revenue growth over a 5 year period for Tech-Telecom-Entertainment (R2=0.17)
An R squared of .17, tells us that roughly 17% of a companys revenue growth is driven by changes in Hispanic Allocation.
Revenue Growth over 5 year period (CAGR 06-10)

Tech-Telecom-Entertainment (N=40)
40
Tech-Telecom-Entertainment Model Findings

We would expect an average revenue growth of 0.559% over the 5 years for every additional percentage point increase in Hispanic allocation.
Revenue Growth Drivers for Tech-Telecom-Entertainment
In other words, the expected range for allocating 10% of the companys ad resources to Hispanic media over 5 years is an increase of 1.48% to 9.7% in overall corporate revenue growth rate.
All Other Drivers of Growth 83%
Hispanic Allocation 17%
N=40
41
Test 1: Is Aggregate Hispanic Allocation Important? YES! Hispanic Allocation directly impacts topline revenue growth for Top 500 Advertisers
On average, for every additional percentage point increase in Hispanic allocation, we would expect revenue growth of .47% over the 5 years. In other words, allocating 10% of the companys ad spend to Hispanic media over 5 years would generate revenue growth of 4.7% over the 5 year period
Aggregate Growth CAGR 06-10

TOP ADVERTISERS (N=235)
42
TEST 2: Individual Years Growth and Aggregate Hispanic Allocation Revalidated! Both directly impact topline revenue growth
Of course, each years CAGR most significantly affects the companys revenue growth over 5 years
CAGR 06-07, 07-08, 08-09, 09-10
R-square 0.305 In other words, 30.5% of the variation in growth over the 5 years (CAGR 06-10) is explained by the ad spend in Hispanic media over the 5 years and each years annual growth.
On average, for every additional percentage point increase in Hispanic allocation, we would expect revenue growth of .468% over the 5 years. In other words, allocating 10% of the companys ad spend to Hispanic media over 5 years would generate revenue growth of 4.68% over the 5 year period.
Revenue Growth over 5 year period

43
Test 3: Hispanic Allocation, Super Categories and Revenue CAGR Revalidated Again! Hispanic Allocation Is Relevant to Revenue Growth!
CAGR: 06-07, 07-08, 0809, 09-10 Categories: Auto, Tech & Entertainme nt, Retail, CPG, Finance/Insu rance Hispanic Allocation: 06-10
R-square .376, in other words, 37.6% of the variation in growth over the 5 years (CAGR 06-10) is explained by the ad spend in Hispanic media over the 5 years and each annual years growth. On average, for every additional percentage point increase in Hispanic allocation, we would expect revenue growth of 0.464% over the 5 years. In other words, allocating 10% of the companys ad spend to Hispanic media over 5 years would generate revenue growth of 4.64% over the 5 year period.
Revenue Growth over 5 year period

44
Section 1
Section 6
APPENDIX
45 45
Appendix A Ranking By Hispanic Allocation

Company 2006-2010 Hispanic Allocation Percentage
26.0% 24.8% 16.9% 16.8% 13.8% 13.6% 12.6% 11.0% 7.9% 7.6% 5.9% 5.2% 4.1% 3.9% 3.9% 3.7% 3.3% 3.2% 2.9% 2.8%
Rank
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Percentile
100.0% 97.4% 94.8% 92.3% 89.7% 87.1% 84.6% 82.0% 79.4% 76.9% 74.3% 71.7% 69.2% 66.6% 64.1% 61.5% 58.9% 56.4% 53.8% 51.2%
2006-2010 Revenue Growth Rate

12.3% 10.4% 12.5% 21.6% 27.4% 4.2% 9.5% 0.1% 6.5% 13.6% -5.6% 2.1% 10.4% -11.4% 8.0% 10.8% -4.0% 3.4% 6.0% 10.7%
TOP TIER 71-100 PERCENTILE IN ALLOCATION

MID TIER 31-70 PERCENTILE
ECHOSTAR /DISH NETWORK DIRECTV GROUP INC TIME WARNER CABLE LEAP WIRELESS INTL INC METROPCS INC DEUTSCHE TELEKOM/T-MOBILE CABLEVISION SYSTEMS CORP RADIOSHACK CORP AT&T INC VERIZON COMMUNICATIONS INC SPRINT NEXTEL CORP WALT DISNEY CO LIONS GATE ENTERTAINMENT MOTOROLA INC BEST BUY CO INC COMCAST CORP GENERAL ELECTRIC CO TELEPHONE & DATA SYSTEMS INC NEWS CORP VONAGE HOLDINGS CORP
46
Ranking By Hispanic Allocation Cont.

Company
TIME WARNER INC
2006-2010 Hispanic Allocation Percentage

2.2% 2.1% 2.0% 1.8% 1.3% 1.1% 0.9% 0.4% 0.3% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%
Rank
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Percentile
48.7% 46.1% 43.5% 41.0% 38.4% 35.8% 33.3% 30.7% 28.2% 25.6% 23.0% 20.5% 17.9% 15.3% 12.8% 10.2% 7.6% 5.1% 2.5% 0.0%

-6.0% -5.0% 3.1% 6.1% -9.9% 6.3% 6.7% -2.7% 27.0% -2.5% -1.4% -9.8% 0.1% -0.1% -0.3% 10.8% 17.1% -6.6% 8.2% -0.5%

BOTTOM TIER 0-30 PERCENTILE IN ALLOCATTION
SONY CORP COX ENTERPRISES INC LIBERTY MEDIA CORP EASTMAN KODAK CO ELECTRONIC ARTS INC MICROSOFT CORP HEWLETT-PACKARD CO APPLE INC ROYAL PHILIPS ELECTRONICS NV LG GROUP MATSUSHITA ELECTRIC INDUSTRL CO LTD/PANASONIC SEIKO CORP/EPSON SEGA SAMMY HOLDINGS INC DELL INC GARMIN LTD SAMSUNG ELECTRONICS CO LTD SHARP CORP TOSHIBA CORP TEXAS INSTRUMENTS INC
47
Appendix B Ranking By Growth Rate Company

METROPCS INC APPLE INC LEAP WIRELESS INTL INC SAMSUNG ELECTRONICS CO LTD VERIZON COMMUNICATIONS INC TIME WARNER CABLE ECHOSTAR/DISH NETWORK COMCAST CORP GARMIN LTD VONAGE HOLDINGS CORP DIRECTV GROUP INC LIONS GATE ENTERTAINMENT CORP CABLEVISION SYSTEMS CORP TOSHIBA CORP BEST BUY CO INC MICROSOFT CORP AT&T INC ELECTRONIC ARTS INC LIBERTY MEDIA CORP NEWS CORP

27.4% 27.0% 21.6% 17.1% 13.6% 12.5% 12.3% 10.8% 10.8% 10.7% 10.4% 10.4% 9.5% 8.2% 8.0% 6.7% 6.5% 6.3% 6.1% 6.0%
Rank
1 2
Percentile
100.00% 97.40%
2006-2010 Hispanic Allocation

13.8% 0.3%
TOP TIER 71-100 PERCENTILE IN GROWTH
3
4 5 6 7 8 9 10 11 12 13 14
94.80%
92.30% 89.70% 87.10% 84.60% 82.00% 79.40% 76.90% 74.30% 71.70% 69.20% 66.60%
16.8%
0.0% 7.6% 16.9% 26.0% 3.7% 0.1% 2.8% 24.8% 4.1% 12.6% 0.0%
15
16 17 18 19 20
64.10%
61.50% 58.90% 56.40% 53.80% 51.20%
3.9%
0.9% 7.9% 1.1% 1.8% 2.9%
48
Ranking By Growth Rate Cont. Company

DEUTSCHE TELEKOM AG/T-MOBILE TELEPHONE & DATA SYSTEMS INC COX ENTERPRISES INC WALT DISNEY CO SEIKO CORP RADIOSHACK CORP SEGA SAMMY HOLDINGS INC

4.2% 3.4% 3.1% 2.1% 0.1% 0.1% -0.1%
Rank
21 22 23 24
Percentile
48.70% 46.10% 43.50% 41.00%
2006-2010 Hispanic Allocation

13.6% 3.2% 2.0% 5.2%
25
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
38.40%
35.80% 33.30% 30.70% 28.20% 25.60% 23.00% 20.50% 17.90% 15.30% 12.80% 10.20% 7.60% 5.10% 2.50% 0.00%
0.1%
11.0% 0.1% 0.1% 0.0% 0.1% 0.1% 0.4% 3.3% 2.1% 5.9% 2.2% 0.0% 0.1% 1.3% 3.9%
DELL INC
TEXAS INSTRUMENTS INC LG GROUP
-0.3%
-0.5% -1.4% -2.5% -2.7% -4.0% -5.0% -5.6% -6.0% -6.6% -9.8% -9.9%
BOTTOM TIER 0-30 PERCENTILE IN GROWTH
ROYAL PHILIPS ELECTRONICS NV HEWLETT-PACKARD CO GENERAL ELECTRIC CO SONY CORP SPRINT NEXTEL CORP TIME WARNER INC SHARP CORP MATSUSHITA ELECTRIC INDUSTRL CO LTD/PANASONIC EASTMAN KODAK CO
MOTOROLA INC
-11.4%
49
Appendix C1 Regression Analysis Results

Test 1 Variable in Model Unstandarized Beta Standardized Beta (Significance) NA Test 2 Unstandarized Beta Standardized Beta (Significance) Test 3 Unstandarized Beta Standardized Beta (Significance) .025 .146 (.007) .024 .190 (.001) .002 .027 (.636) .335 .476 (.000) .464 .200 (.000) -8.385 -.224 (.000) -.027 -.001 (.991) 2.344 .082 (.190) -1.659 -.057 (.362) 2.065 .068 (.269) .376 235 Technology Model Unstandariz ed Beta Standardized Beta (Significance ) NA Technology( 2) Model Unstandariz ed Beta Standardized Beta (Significance ) NA
CAGR 06-07
CAGR 07-08
NA
CAGR 08-09
NA
.021 .121 (.029) .026 .202 (.000) .003 .033 (.567) .328 .465 (.000) .468 .202 (.000) NA
NA
NA
NA
NA
CAGR 09-10
NA
NA
NA
Hispanic Allocation 06-10 Auto
.471 .142 (.019) NA
.559 .408 (.009) NA
.678 .546 (.000) NA
Insurance/Fina nce Technology
NA
NA
NA
NA
NA
NA
NA
NA
Retail
NA
NA
NA
NA
CPG
NA
NA
NA
NA
R-Square N = Dependent Variable
.020 235
.305 235 CAGR 06-10
.166 40
.298 38
50
Appendix C2: w/o Apple & Samsung anomalies Regression Analysis Results
Test 1 Variable in Model Unstandarized Beta Standardized Beta (Significance) NA Test 2 Unstandarized Beta Standardized Beta (Significance) .021 .121 (.029) .026 .202 (.000) .003 .033 (.567) .328 .465 (.000) .468 .202 (.000) NA Test 3 Unstandarized Beta Standardized Beta (Significance) .025 .146 (.007) .024 .190 (.001) .002 .027 (.636) .335 .476 (.000) .464 .200 (.000) -8.385 -.224 (.000) -.027 -.001 (.991) 2.344 .082 (.190) -1.659 -.057 (.362) 2.065 .068 (.269) .376 235 Technology Model Unstandarized Beta Standardized Beta (Significance) NA
CAGR 06-07
CAGR 07-08
NA
NA
CAGR 08-09
NA
NA
CAGR 09-10
NA
NA
Hispanic Allocation 06-10 Auto
.471 .142 (.019) NA
.559 .408 (.009) NA
Insurance/Finance
NA
NA
NA
Technology
NA
NA
NA
Retail
NA
NA
NA
CPG
NA
NA
NA
R-Square N= Dependent Variable
.020 235 CAGR 06-10
.305 235
.166 40
51
Appendix D Graphical Analysis
Graph 1
52
Appendix D Graphical Analysis
Chart 2
53
Appendix E
GfK MRI Hispanic Data Notes

GfK MRI has measured Hispanics within its National Study (Survey of the American Consumer). Since 2003, GfK MRI began translating all survey materials into Spanish and hiring bilingual interviewers to capture the Spanish dominant Hispanic. Other enhancements to data sampling since then include:
Hispanic language capability sample balanced against Nielsen Language estimates Additional Hispanic specific demographics (language capability outside the home, language capability inside the home, country of origin, foreign born, length of time in the U.S., additional Hispanic adults in the home, how well do you speak English) Hispanic specific media (3 Magazines, 135+ Television Programs, 2 Cable stations, 3 Radio formats, 3 websites) Hispanic specific segmentations (Geoscape Hispanicity, Hispanic Cohorts, Hispanic PersonicX) Hispanic Networks/Programs available in NPM Fusion database
54
Appendix F: Leading Global Innovators
Apples a leading global innovator has become Americas most valuable company and most influential stock on the psychology of the investor market. Apples iPhone noted as the phone that changed phones forever, was designated as the Top Invention in 2007 by Time magazine. Apples Macbook Pro has consistently been one of the best selling laptops since its inception in 2006. The iPad was named as the Top Gadget in 2010.
55
Appendix F: Leading Global Innovators
Samsung is a global leading tech innovator breaking repeated records of slimmer products such as LCD TVs & Blu Ray Disc Players, highest resolution cameras, and smartest cell phones such as the Galaxy, the first Droid in 2008. Recognized in industry for best gadgets only behind Apple.
A global market leader Samsung took No. 1 spot in U.S. cellphone market in 2008. Enjoys #1 market share position for TVs worldwide. 56

Tech-Telecom-Entertainment Hispanic Allocation Impact On Revenue Growth

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Tech-Telecom-Entertainment Hispanic Allocation Impact On Revenue Growth

Caricato da

Copyright:

Tech-Telecom-Entertainment Hispanic Allocation Impact on Revenue Growth