TERRA.COM CONTINUES TO LEAD IN BRAND LOYALTY AND USAGE AMONG SPANISH-LANGUAGE SITES

TERRA.COM CONTINUES TO LEAD IN BRAND LOYALTY AND USAGE AMONG SPANISH-LANGUAGE SITES

U.S. Hispanic Audience Growing at Three Times the Rate of Rest of U.S. Internet Audience Terra.com shows high retention and loyalty; Latinos engage in more complex on-line transactions - closing digital divide


SHARE THIS ARTICLE

MIAMI, FL–(HISPANIC PR WIRE)–June 11, 2002–The recently released Roslow Hispanic Internet Usage Study, conducted in spring 2002, shows that Terra.com continues to lead in brand loyalty with almost 63 percent of users aware of terra.com, visiting the site in the past 30 days. Visitors to Terra are spending almost 35 minutes with the site each time they visit; the highest average of time-spent-per-visit of the top three Hispanic sites.

“Terra.com’s high awareness and usage bodes well for advertisers as advertising campaigns will have longer and more frequent exposure, leading to higher brand awareness and purchase intention,” said Manuel Bellod, Terra.com, CEO.

Internet usage among U.S. Hispanics remains high at 50 percent and Hispanics are spending significantly more time on-line compared to their general market counterparts. “Hispanics are spending more time on-line, purchasing more products and services and feeling more comfortable with newer technology and on-line navigation,” said Peter Roslow, author of the recent study.

“This strong confidence in Internet services and resources indicates that the Digital Divide is shrinking for Latinos as they further explore the benefits of the Web, such as e-mail, paying bills, downloading music, booking travel, playing games and using personal financial services,” Roslow added. All of these services have seen a growth in usage since the fall 2001 Roslow study.

In another study published by ComScore, the researcher reporter that from Q1 2001 to Q1 2002, the U.S. Hispanic Internet population grew by 19 percent, a rate more than three times that of the non-Hispanic online population in the U.S. With 14.5 million unique online users in the average month in the first quarter of 2002, Hispanics now comprise 11 percent of the total U.S. online population, up from 9.9 percent in the prior year.

Terra.com experienced a strong growth of 41 percent in unaided awareness since the last Roslow study in the fall of 2001. The recent study also showed that 94 percent of users who have ever visited Terra.com, have visited it in the last 30 days.

“We have succeeded not only in attracting new Latino users, but also establishing a growing loyal base. This is evident in the duration of visits of the average user to our site,” continued Bellod. “We are encouraged by these trends among Hispanics of using more advanced services and products on-line, an indication that Latinos are making the Internet a part of their daily lives.”

Among other important findings, the Roslow study showed that the average age of the U.S. Hispanic Internet user is approximately 30-years-old. Roughly half of them are bilingual, and 74 percent have computers at home. Hispanic incidence of Internet use remains at 50 percent among U.S. Hispanics 16 years and older. The percentage of men and women using the Net is nearly equal, at 53 and 47 percent respectively. In particular, the study revealed that U.S. Hispanic users continue to spend more than half, 53 percent, of their on-line time using the Internet in Spanish instead of English.

The Roslow findings offer positive news for the Spanish-language Internet industry. Recent studies indicate the U.S. corporations generally under-spend on the Hispanic segment *( Missed Opportunities: Vast Corporate Underspending in the U.S. Hispanic Market ). The latest Roslow Study is further evidence that Spanish-language Internet sites comprise a valuable channel for reaching Hispanic audiences in a segmented, interactive and integrated method.

This progression on the Internet learning curve supports Terra’s strategy as it continues to add to its music and multimedia search tools and financial services. Terra’s high user loyalty, retention and duration can be attributed to its high-quality, popular content and programming. For example, Terra.com was the official site of Protagonistas de Novela, the first-ever Spanish-language reality TV show in the U.S. During the show’s spring broadcast, the Protagonistas mini-site attracted more than 450,000 unique visitors who generated 43 million page views and spent 12 minutes on average in each visit following the show’s story line, voting, viewing behind-the-scenes clips and exclusive photo galleries, and chatting with the program’s participants. “This was the most successful user interface since we launched Terra.com less than two years ago,” Bellod added. “It demonstrates the power of what strategically branded, promotional opportunities can do for advertisers.”

* (Santiago Valdes Solutions study: Missed Opportunities: Vast Corporate Underspending in the U.S. Hispanic Market)

About Terra Lycos

Terra Lycos is a global Internet group with a presence in 43 countries in 20 languages, reaching 115 million unique users per month around the world. The group, which is the result of Terra Networks S.A.’s acquisition of Lycos, Inc. in October 2000, operates some of the most popular Web sites in the United States, Canada, Europe, Asia and Latin America, and is the largest access provider in Spain and Latin America.

The Terra Lycos network of sites includes Terra in 17 countries, Lycos in 26 countries, Angelfire.com, Atrea.com, ATuHora.com, Azeler.es, Bumeran.com, Direcciona.es, Educaterra.com, Emplaza.com, Gamesville.com, HotBot.com, Ifigenia.com, Invertia.com, Lycos Zone, Maptel.com, Matchmaker.com, Quote.com, RagingBull.com, Rumbo.com, Tripod.com, Uno-e.com and Wired News (Wired.com), and others.

With headquarters in Barcelona and operating centers in Madrid, Boston and elsewhere, Terra Lycos is traded on the Madrid stock exchange (TRR) and the Nasdaq electronic market (TRLY). For more information, please visit our corporate Web site at http://www.terralycos.com.

About Roslow Research

Roslow Research Group, Inc. (RRG) was founded in 1984, as a service-oriented marketing research and consulting firm specializing in the Hispanic market and other “diversity segments” in the U.S. and Latin America.

About Study Methodology: Interviewing was conducted by telephone in six major Hispanic markets (DMAs): Los Angeles, New York, Miami, San Francisco, Chicago and San Antonio. 600 interviews were completed with Internet users. Specific (disproportionate) sample size-targets were assigned in each market to approximately reflect the relative Hispanic population size by market. The sample was selected at random from local area phone directories, by Spanish-surname. The interview process began with a short screening interview, to determine respondent eligibility as a Hispanic Internet user.

©2002 Lycos, Inc. Lycos® is a registered trademark of Carnegie Mellon University. All other product or service marks mentioned herein are those of Terra Networks, S.A., Lycos, Inc. or their respective owners. All rights reserved.

–30–

CONTACT:

Bromley/MS&L

Michelle Cobas

(210) 244-2184

(210) 244-2116

or

Terra Lycos

Ana Sanchez

(305) 714-8564

(305) 372-8153

TERRA.COM CONTINUES TO LEAD IN BRAND LOYALTY AND USAGE AMONG SPANISH-LANGUAGE SITES