Technology Sector’s Hispanic Allocation Impact on Overall Revenue Growth

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Tech‐Telecom‐Entertainment Hispanic Allocation Impact on Revenue Growth

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Section 1
INTRODUCTION
Section 1
2

3
About the Author & Sources
• The study was commissioned by AHAA’s 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

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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.
Revenue Growth Study Series
AHAA has led the industry’s 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.
• 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 AHHA’s 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)
Study 1
Hispanic Ad
Allocation
Top 500
Overall U.S.
Advertisers
Study 2
Hispanic Ad Allocation
Consumer Packed Goods
Current Study (Study 3)
Hispanic Ad Allocation
Technology
Other Sectors
Future studies

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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%
2009‐2010, about a third of what
pre‐recession levels.
• Technology and new media will
further redefine lifestyles and
business models.
• “Reset” beyond economic adjustment
– Consumers changed over long run
• More brand fickle
• More frugal value‐oriented
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’

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Hispanic Market Highlights
MARKET SIZE
• 2010 Population 50.7M1
• 2011 Hispanic Share of US Population 17%2
• 2011 Hispanic Share of US adults 15%2
GROWTH
• Hispanic Population 2000‐2010 CAGR8 v Non‐Hispanic 3.6% v. 0.5%3
• Hispanic Share of Total US Population Growth 2000‐2010 56%4
• Hispanic Share of Labor Force Growth 2010‐2020 74%7
ECONOMIC
• 2012 Estimated Buying Power $1.2 Trillion5
• Hispanic Buying Power 2000‐2010 CAGR v. Non‐Hisp 7.8% v. 3.4%6
1, 3, 4 2010 Census ACS
2 SSG 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.

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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‐Telecom‐
Entertainment consumer base.
During 2006‐2010, the Hispanic consumer
base in the Tech‐Telecom‐Entertainment
category grew 3 times faster than the Non‐
Hispanic consumer base.
Source: SSG Analysis of 2006-2010 GfK MRI

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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.

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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.
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.
*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.

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Methodology
Hispanic Allocation and organic revenue
growth rates of 40 Tech‐Telecom‐
Entertainment 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.

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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)
Consistent Advertisers
(246)
Publicly Traded
w/ clear Organic US Revenue
(235)
Tech-Telecom-
Entertainment
(40)
Unadjustable M&As
Inconsistent Data
(-9)
Inconsistent Advertisers
(-172
Private
(-82)

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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.

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Section 2
TECH‐TELECOM‐ENTERTAINMENT
STUDY FINDINGS
Section 1
13

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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‐Entertainment’s
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.

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• 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.
• The mid 40 percentile in
Allocation & Growth
include: T‐Mobile,
Cablevision, AT&T, Lions
Gate Entertainment,
Comcast, Vonage, Best
Buy and News Corp.
Finding 1: Tech‐Telecom‐Entertainment Growth Rates Are
Directly and Positively Impacted by Hispanic Allocation
Please see Appendix D (Graph 1) for Detailed Graph and Graphical Analysis.
Top 30
Percentile
Anomalies
(See p 17 & Appendix F)
Mid 40
Percentile
Bottom 30
Percentile

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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 Apple’s iPhone reinvented the phone and
ushered in the modern era of intelligent,
connected devices.
• Samsung’s Galaxy, the first set on Google’s
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

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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
• 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...
13.3%
6.2%
0.4%
12.9%
3.4%
‐1.4%
‐4.0%
‐2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Top Tier 71‐100
Percentile
Mid Tier 31‐70
Percentile
Bottom Tier 0‐
30
Average Allocation & Growth By Tier*
06‐10 Hisp Allocation
06‐10 Revenue CAGR
All Avg Allocn 6.3%
All Avg Rev CAGR 3.4%
*Excludes Anomalies: Apple & Samsung

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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 company’s
ad resources to Hispanic media over
5 years, an average increase of
6.8% in organic revenue annual
growth rate would be expected.
• Organic revenue growth rates
decline sharply as Hispanic share
of budgets decrease and vice
versa.
+1 point ↑
Hispanic Allocation
+0.68 point ↑
Annual Revenue Growth Rate

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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.
Hispanic
Marketing
Allocation
30%
Other
Drivers of
Growth
70%
Tech‐Telecom‐Entertainment &
Revenue Growth Drivers
* Excluding Anomalies: Apple & Samsung

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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 .
• 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.
Hispanic
Marketing
Allocation
17%
Other
Drivers of
Growth
83%
Tech‐Telecom‐Entertainment
& Revenue Growth Drivers

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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 don’t have revolutionary
innovations and brand experiences.

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Section 3
HISPANIC OPPORTUNITY DRIVERS
Section 1
22

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Psychographic & Behavioral Drivers By
Purchase Cycle Stage

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Hispanics Needs of Technology Go Beyond
Functionality!
• To
Top Box: Agree Completely
or Agree Mostly,
or Very
Important
Hispanic
Index v NH
I want others to say
"wow" when they see my
electronics.
169
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.
133
Source: 2011 Doublebase GfK MRI - Base: All (n= 6.6K Hispanics & 46.5K Non-Hispanics)

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Hispanics Tend To Be Tech Early Adopters
and Influential
Top Box: Agree Completely
or Agree Mostly,
or Very Important
Hispanic
Index v
NH
I give others advice when
they are looking to buy
technology or electronics
products.
153
I enjoy learning about
technology or electronic
products from others.
131
I enjoy reading about new
technology products.
131

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Hispanics Are Ideal Tech Consumers!
Top Box: Agree Completely or
Agree Mostly, or
Very Important
Hispanic
Index v
NH
I’m fascinated by new
technology.
130
I prefer products that offer
the latest technology.
129
I’m willing to pay more for
top quality electronics.
125
• Technology friendly and willing to pay more

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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 90
• More likely to have smartphone 128
• Monthly spend on cell phones 115
• Only cell 129
Particularly social across all platforms
• Calls per day 144
• Monthly time in social networks 113
Heavy video content users across all screens
• Time spent streaming 118
• Online Video monthly usage 163
• Mobile Video monthly usage 120
Source: Nielsen Video Census 2012; Mobile Insight Survey: Netview 2012, Mobile Bill Panel, Nielsen TV Panel
Hispanic
Index to NH

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Hispanics Growth Opportunity Will Continue To Be Robust
Source: Scarborough USA+ 2011 Release 2 Total; Base: Adults 18+; Respondents: 151,099 White Non‐Hispanics & 27,301 Hispanics
Tech Gadget
2011 Household
Penetration
Hisp Index (vs WNH)
Purchase Intent
Next 12 Months
Hisp Index (vs WNH)
iPad 141 159
Video Game system 103 209
MP3 player 98 174
Blu‐ray disc player 93 137
HDTV 91 170
• Hispanics intent to purchase hottest Tech products exceeds that of White Non‐Hispanics

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Hispanics offer high Lifetime Value
Average Aggregate Household
Lifetime Spending
NH White $435,690
Black $319,359
Asian $1,043,365
Hispanic $601,991
• 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.
Source: 2010 Geoscape Consumer Spending Dynamix.™

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Hispanics See Technology as Entertainment!
Top Box: Agree
Completely or
Agree Mostly, or
Very Important
Hispan
ic
Index
I think of my mobile phone as
a source of entertainment.
137
Computers can be a good
source of entertainment.
117

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Section 4
IMPLICATIONS
Section 1
31

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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 don’t 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.

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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.

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Section 5
STATISTICAL DETAIL & MODEL VALIDATION
Presented by Dr. Cristina Garcia, Math & Statistics Professor at USC
AHAA Methodology Advisor
Section 1
34

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Sectors/Super Categories
Breakdown
B2B
Tech‐Telecom‐
Entertainment
Consumer
Packaged
Goods
Government
Private
Auto
Retail
Insurance/Finance Unadjustable
Mergers &
Acquisitions
Omitted
Advertisers
(Reasons)
Super
Categories
(Included)
Non‐Profit

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Test Validations
All validation tests
corroborated the same
findings.
Hispanic Allocation has a
direct & significant
impact on companies
overall revenue growth.
Main Regression

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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.

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Main Regression Model (w/o Anomalies)
• Hispanic Allocation alone explains
about 30% of changes in revenue
growth over a 5 year period for Tech‐
Telecom‐Entertainment (R2=0.30)
– An R squared of .30, tells us that roughly
30% of a company’s revenue growth is
driven by changes in Hispanic Allocation.
Revenue Growth over 5
year period (CAGR 06-10)
Aggregate
Hispanic
Allocation
2006-2010
Tech‐Telecom‐Entertainment (N=38)

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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.
• In other words, the expected
range for allocating 10% of the
company’s ad resources to
Hispanic media over 5 years is
an increase of 3.26% to 10.29%
in overall corporate revenue
growth rate.
Hispanic
Allocation
30%
All Other
Drivers of
Growth
70%
Revenue Growth Drivers for
N=38

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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 company’s revenue growth is
driven by changes in Hispanic Allocation.
year period (CAGR 06-10)
Aggregate
Hispanic
Allocation
2006-2010
Tech‐Telecom‐Entertainment (N=40)

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Tech‐Telecom‐Entertainment Model Findings
– We would expect an average
revenue growth of 0.559% over the
5 years for every additional
Hispanic allocation.
– In other words, the expected range
for allocating 10% of the company’s
ad resources to Hispanic media over
5 years is an increase of 1.48% to
9.7% in overall corporate revenue
growth rate. Hispanic
Allocation
17%
All Other
Drivers of
Growth
83%
Revenue Growth Drivers for
N=40

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Test 1: Is Aggregate Hispanic Allocation Important?
YES! Hispanic Allocation directly impacts topline revenue
growth for Top 500 Advertisers
• On average, for every additional
Hispanic allocation, we would
expect revenue growth of .47% over
the 5 years.
• In other words, allocating 10% of
the company’s 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
Aggregate
Hispanic
Allocation
06‐10
TOP ADVERTISERS (N=235)

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TEST 2: Individual Years Growth and Aggregate Hispanic Allocation
Revalidated! Both directly impact topline revenue growth
year period
Aggregate
Hispanic
Allocation
06-10
CAGR
06-07, 07-08,
08-09, 09-10
• Of course, each year’s CAGR most significantly
affects the company’s revenue growth over 5
years
• 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 year’s 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 company’s
ad spend to Hispanic media over 5 years would
generate revenue growth of 4.68% over the 5 year
period.

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Test 3: Hispanic Allocation, Super Categories and Revenue CAGR
Revalidated Again! Hispanic Allocation Is Relevant to Revenue Growth!
Revenue Growth over 5 year
period
Categories:
Auto, Tech &
Entertainme
nt, Retail,
CPG,
Finance/Insu
rance
CAGR:
06-07, 07-08, 08-
09, 09-10
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 year’s 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
company’s ad spend to Hispanic media
over 5 years would generate revenue
growth of 4.64% over the 5 year period.

45
Section 6
APPENDIX
Section 1
45

46
Appendix A
Ranking By Hispanic Allocation
Company
2006-2010 Hispanic
Allocation Percentage
Rank Percentile
2006-2010 Revenue
Growth Rate
ECHOSTAR /DISH NETWORK 26.0% 1 100.0% 12.3%
DIRECTV GROUP INC 24.8% 2 97.4% 10.4%
TIME WARNER CABLE 16.9% 3 94.8% 12.5%
LEAP WIRELESS INTL INC 16.8% 4 92.3% 21.6%
METROPCS INC 13.8% 5 89.7% 27.4%
DEUTSCHE TELEKOM/T‐MOBILE 13.6% 6 87.1% 4.2%
CABLEVISION SYSTEMS CORP 12.6% 7 84.6% 9.5%
RADIOSHACK CORP 11.0% 8 82.0% 0.1%
AT&T INC 7.9% 9 79.4% 6.5%
VERIZON COMMUNICATIONS INC 7.6% 10 76.9% 13.6%
SPRINT NEXTEL CORP 5.9% 11 74.3% ‐5.6%
WALT DISNEY CO 5.2% 12 71.7% 2.1%
LIONS GATE ENTERTAINMENT 4.1% 13 69.2% 10.4%
MOTOROLA INC 3.9% 14 66.6% ‐11.4%
BEST BUY CO INC 3.9% 15 64.1% 8.0%
COMCAST CORP 3.7% 16 61.5% 10.8%
GENERAL ELECTRIC CO 3.3% 17 58.9% ‐4.0%
TELEPHONE & DATA SYSTEMS INC 3.2% 18 56.4% 3.4%
NEWS CORP 2.9% 19 53.8% 6.0%
VONAGE HOLDINGS CORP 2.8% 20 51.2% 10.7%
TOP TIER
71‐100 PERCENTILE IN ALLOCATION
MID TIER
31‐70 PERCENTILE

47
Ranking By Hispanic Allocation Cont.
Company
2006-2010 Hispanic
Allocation
Percentage
Rank Percentile
2006-2010 Revenue
Growth Rate
TIME WARNER INC 2.2% 21 48.7% ‐6.0%
SONY CORP 2.1% 22 46.1% ‐5.0%
COX ENTERPRISES INC 2.0% 23 43.5% 3.1%
LIBERTY MEDIA CORP 1.8% 24 41.0% 6.1%
EASTMAN KODAK CO 1.3% 25 38.4% ‐9.9%
ELECTRONIC ARTS INC 1.1% 26 35.8% 6.3%
MICROSOFT CORP 0.9% 27 33.3% 6.7%
HEWLETT‐PACKARD CO 0.4% 28 30.7% ‐2.7%
APPLE INC 0.3% 29 28.2% 27.0%
ROYAL PHILIPS ELECTRONICS NV 0.1% 30 25.6% ‐2.5%
LG GROUP 0.1% 31 23.0% ‐1.4%
MATSUSHITA ELECTRIC INDUSTRL CO
LTD/PANASONIC 0.1% 32 20.5% ‐9.8%
SEIKO CORP/EPSON 0.1% 33 17.9% 0.1%
SEGA SAMMY HOLDINGS INC 0.1% 34 15.3% ‐0.1%
DELL INC 0.1% 35 12.8% ‐0.3%
GARMIN LTD 0.1% 36 10.2% 10.8%
SAMSUNG ELECTRONICS CO LTD 0.0% 37 7.6% 17.1%
SHARP CORP 0.0% 38 5.1% ‐6.6%
TOSHIBA CORP 0.0% 39 2.5% 8.2%
TEXAS INSTRUMENTS INC 0.0% 40 0.0% ‐0.5%
MID TIER
31‐70 PERCENTILE
BOTTOM TIER
0‐30 PERCENTILE IN ALLOCATTION

48
Appendix B
Ranking By Growth Rate
Company
2006-2010 Revenue
Growth Rate
Rank Percentile
2006-2010
Hispanic
Allocation
METROPCS INC 27.4% 1 100.00% 13.8%
APPLE INC 27.0% 2 97.40% 0.3%
LEAP WIRELESS INTL INC 21.6% 3 94.80% 16.8%
SAMSUNG ELECTRONICS CO LTD 17.1% 4 92.30% 0.0%
VERIZON COMMUNICATIONS INC 13.6% 5 89.70% 7.6%
TIME WARNER CABLE 12.5% 6 87.10% 16.9%
ECHOSTAR/DISH NETWORK 12.3% 7 84.60% 26.0%
COMCAST CORP 10.8% 8 82.00% 3.7%
GARMIN LTD 10.8% 9 79.40% 0.1%
VONAGE HOLDINGS CORP 10.7% 10 76.90% 2.8%
DIRECTV GROUP INC 10.4% 11 74.30% 24.8%
LIONS GATE ENTERTAINMENT CORP 10.4% 12 71.70% 4.1%
CABLEVISION SYSTEMS CORP 9.5% 13 69.20% 12.6%
TOSHIBA CORP 8.2% 14 66.60% 0.0%
BEST BUY CO INC 8.0% 15 64.10% 3.9%
MICROSOFT CORP 6.7% 16 61.50% 0.9%
AT&T INC 6.5% 17 58.90% 7.9%
ELECTRONIC ARTS INC 6.3% 18 56.40% 1.1%
LIBERTY MEDIA CORP 6.1% 19 53.80% 1.8%
NEWS CORP 6.0% 20 51.20% 2.9%
TOP TIER
71‐100 PERCENTILE IN GROWTH
MID TIER
31‐70 PERCENTILE

49
Ranking By Growth Rate Cont.
Company
2006-2010
Revenue Growth
Rate
Rank Percentile
2006-2010
Hispanic
Allocation
DEUTSCHE TELEKOM AG/T‐MOBILE 4.2% 21 48.70% 13.6%
TELEPHONE & DATA SYSTEMS INC 3.4% 22 46.10% 3.2%
COX ENTERPRISES INC 3.1% 23 43.50% 2.0%
WALT DISNEY CO 2.1% 24 41.00% 5.2%
SEIKO CORP 0.1% 25 38.40% 0.1%
RADIOSHACK CORP 0.1% 26 35.80% 11.0%
SEGA SAMMY HOLDINGS INC ‐0.1% 27 33.30% 0.1%
DELL INC ‐0.3% 28 30.70% 0.1%
TEXAS INSTRUMENTS INC ‐0.5% 29 28.20% 0.0%
LG GROUP ‐1.4% 30 25.60% 0.1%
ROYAL PHILIPS ELECTRONICS NV ‐2.5% 31 23.00% 0.1%
HEWLETT‐PACKARD CO ‐2.7% 32 20.50% 0.4%
GENERAL ELECTRIC CO ‐4.0% 33 17.90% 3.3%
SONY CORP ‐5.0% 34 15.30% 2.1%
SPRINT NEXTEL CORP ‐5.6% 35 12.80% 5.9%
TIME WARNER INC ‐6.0% 36 10.20% 2.2%
SHARP CORP ‐6.6% 37 7.60% 0.0%
MATSUSHITA ELECTRIC INDUSTRL CO
LTD/PANASONIC
‐9.8%
38 5.10% 0.1%
EASTMAN KODAK CO ‐9.9% 39 2.50% 1.3%
MOTOROLA INC ‐11.4% 40 0.00% 3.9%
MID TIER
31‐70 PERCENTILE
BOTTOM TIER
0‐30 PERCENTILE IN GROWTH

50
Appendix C1
Regression Analysis Results

51
Appendix C2: w/o Apple & Samsung anomalies
Regression Analysis Results

52
Appendix D
Graphical Analysis
Graph 1

53
Appendix D
Graphical Analysis
Chart 2

54
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

55
Appendix F: Leading Global Innovators
• Apple’s a leading global innovator has become America’s most valuable company and
most influential stock on the psychology of the investor market.
• Apple’s iPhone noted as the “phone that changed phones forever”, was
designated as the Top Invention in 2007 by Time magazine.
• Apple’s 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.

56
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.

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