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Yahoo Inks Venture with NBC to Target US Hispanics

News, 11 May 2006

The growing importance of the US Hispanic internet audience has been highlighted by search engine Yahoo's decision to enter a joint online venture with NBC Universal's Telemundo broadcast network.

The two companies have agreed to merge their Spanish-language websites, resulting in shared advertising revenue and a combining of their staff.

The deal has been described as a "test bed" for other possible ventures, which they declined to elaborate.

Says Randy Falco, chief operating officer of the NBC Universal Television Group: "This is taking advantage of a moment in time [and of] the incredible growth of the Hispanic marketplace."

Online adspend targeted at Hispanics is projected to increase 32% this year to $132 million (€103.2m; £70.8m), compared with a 25% increase to $15.6 billion for the overall US internet ad market, according to New York research firm eMarketer.

The population of 16 million US Hispanic internet users is projected to expand around 30% over the next five years. Hispanics are the third-largest racial or ethnic group online in the US after non-Hispanic whites and African-Americans.

Avers senior eMarketer analyst Debra Aho Williamson: "Companies are realizing this is a market to be reckoned with."

Data sourced from Wall Street Journal Online; additional content by WARC staff