Banking & Finance market Briefing notes and sales support for news media sales teams

This deck is split into two sections: Section 1 An overview of the Australian travel market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section one provides an overview of the banking and finance industry, specifically around retail banking, superannuation and credit cards. The information contained in this section won’t make you an instant expert but it will help get you up to speed on some important facts about the category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Sections two contains research about how news media can help finance brands win customers. What’s in this deck?

Section 1 Finance market: an overview

Major banks: record earnings result in FY2015 $30 billion (+5.4% YoY) cash profit after tax in FY2015 Source: PWC, Banking Matters: Major Banks Analysis, November 2015.

But growth moderating for 1h2016 Source: KPMG, Australian Banks: Half Year Results 2016.

CBA dominates the retail banking sector Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April *Main bank used.

Impressive customer satisfaction scores Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April Strong loyalty and positive customer satisfaction overall, despite large numbers Net Promoter Score “detractors”.

Insurance top of mind for finance customers Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Visa leads as credit card debt rises Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Housing market has softened but remains positive 5.3 million home mortgage holders in Australia 1.9 million investment property mortgage holders 801,000 thinking about getting a home mortgage in the next 12 months 790,000 thinking about getting an investment mortgage in the next 12 months Sources: ; emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April

Superannuation market share Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Average super savings not enough $106,045.3 $130,779.9 $221,212.6 $243, Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April ASFA Retirement Standard, March Quarter ASFA estimates the lump sum needed to support a comfortable lifestyle for a couple is $640,000 (or $545,000 for a single person). Average superannuation balance

3 in 5 own investment products Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April Average value of financial investments among those with a portfolio is $440,229

Section 2 Support slides for sales presentations

The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive financial decisions, and to show how news media can help to influence the sales process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements. About these slides Recap client/agency brief Finance industry support slides Client specific analysis Recommendations

News media reaches finance customers 3.8 million intending to buy a new financial product or service this year read print newspapers. News media in print and digital formats read by 93% of those planning to buy a financial product or service in the next 12 months. Three in four planning to get a mortgage this year read digital news media. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

77% of people planning to get home and contents insurance in the next year read printed newspapers. Readers of digital news media are 11% more likely to be planning to get a personal loan compared to non-readers. Three in five customers intending to sign up for a new credit card read a metro newspaper in the last 4 weeks. Get the best from news media platforms Some forms of news media are more efficient than others at reaching specific finance customer segments. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

Finance customers regularly engage with newspapers Consumers planning to get an investment loan are 8% more likely to be heavy newspaper readers (i.e. 7+ editions a week) than the general public. Credit card customers are 10% more likely to be heavy newspaper readers than the general public. Consumers planning to obtain landlord insurance are 10% more likely to be heavy newspaper readers. Finance customers likely to be mid- or heavy- print newspaper readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Digital news media readers are prime targets People who read digital news media are 6% more likely to buy finance products in the next 12 months than non- readers. Sources: emma, 12 months to April 2016; Deloitte Media Consumer Survey 2015 – Australian media and digital preferences – 4 th ed, 72% of consumers spend over 2 hours/day on their mobiles. 75% research purchases on mobiles.

76% 73% Combine and conquer The combined reach of print and digital news media: 93% of finance customers. Print Digital Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

Business and Finance readers earn $9,387 more than the average Australian Read by 61% of CEOs Business & Finance Sections reach an elite audience Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April Read by 39% of business owners

Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.

About The Author Adrian Fernandes is Research & Insights Specialist at NewsMediaWorks. He is an award winning researcher with over a decade of experience in advertising and brand research for leading market research agencies in Europe & Australia. His previous experience includes 4 years at Fairfax Media as Consumer Insights Manager. Adrian combines data analytics with market research to provide publishers, advertisers and their agencies with actionable insights relating to the newspaper audience on print and digital platforms. For more information on this deck, please

newsmediaworks.com.au