Newspaper Creative Benchmark Report Toyota     December 2011

Toyota was included in the December 2011 study It’s a component of the Newspaper Effectiveness Metric which is run by the newspaper industry marketing body, The Newspaper Works. A monthly study designed; To measure and identify the effectiveness of newspaper creative To help improve understanding of how to use newspapers effectively To improve the understanding of the roles newspaper advertising can play To improve the standard of newspaper creative To provide a consistent metric that is accepted as the industry standard This metric is the first of its kind in Australia, providing previously unavailable insights into how consumers respond to newspaper advertising. It was developed for a number of reasons; Newspapers are pigeon-holed for certain advertising categories and roles Most tracking metrics are designed for TV, not newspapers There is no recognised approach to measuring effectiveness in relation to newspapers The Newspaper Works is the newspaper industry marketing body eestablished in 2006 by the major Australian newspaper publishers: Fairfax Media (including Rural Press), News Limited, APN News and Media and West Australian Newspapers They represents paid national, metropolitan, regional and community titles. Primary aims: To promote newspapers as a powerful medium for advertisers To ensure that newspapers are perceived as being contemporary and relevant in a transforming media landscape Toyota was included in the December 2011 study

Comparison of creative against category averages Pre/post effectiveness studies, measuring in-market effects and how newspaper work with Television Comprehensive analysis of how newspapers can best be used to influence purchase behaviour The Newspaper Effectiveness Metric was designed to be used across three applications; Newspaper Creative Benchmarking Designed to demonstrate how consumers are responding to newspaper advertising compared to all newspaper norms and category averages. It takes on two formats, one category report e.g. Retail and secondly as a regular monthly benchmark – The other applications are more in depth; Case studies: with incredibly robust samples of 1300 pre and 900 post same (rather than matched) samples which measure a campaign in totality Category Deep dives: key category deep dives, focusing on categories with a more complex path to purchase and investigating what role The Newspaper Works’ effectiveness partner:

Toyota was one of three ads tested in Sydney Sample: Australians 16+ , n=98 Fieldwork: 2nd – 12th December 2011 Conducted online by Ipsos MediaCT Benchmarks used: Automotive Averages Newspaper Norms Newspaper Averages ( for Action Map comparisons, data available from March 2010) The survey is conducted online. The ad is first seen with newspaper editorial facing it so it is quite clearly a newspaper ad (rather than a magazine ad or poster) and to get respondents into the newspaper ‘frame of mind’. For Ad Recognition and Brand Linkage, all logos, copy and price references to brand are masked out. Only those who recognised the ad answer the brand linkage question. For all questions after that, the logos, copy references and prices are visible. All respondents, whether they recognised the ad or not, then answer the remaining questions on Brand Equity, Role Map and Creative Diagnostic measures.

Proprietary newspaper measures Recognised industry measures + Newspaper measures Ad Recognition Brand Linkage Message Comprehension Brand Equity Impact Role Map Action Map Newspaper Creative Diagnostics The findings in the report are based on the ad-related measures contained in The Newspaper Effectiveness Metric. Alongside industry accepted measures The Newspaper Works has developed newspaper-specific measures that provide insights that advertisers and media agencies don’t have access to. Role Map graphically represents how consumers respond to newspaper advertising in terms of six strategic roles, which have been developed and validated in research both here and in the UK. The Newspaper Creative Diagnostics allow us to investigate the reasons behind the lower performing ads. Proprietary newspaper measures The Newspaper Works’ effectiveness partner: 5

Ad benchmarked Toyota ads being benchmarked

Branded Newspaper Benchmarks     Branded Newspaper Benchmarks

Automotive Average Newspaper Norm Newspaper Creative Diagnostics are to be used diagnostically, they measure consumer reaction to specific aspects of the creative execution. Provides an indication of the how/ why the ad is working or not working. Explanatory notes Newspaper Creative Diagnostics are asked as forced exposure. Respondents are given a series of statements and asked to indicate which apply to the ad i.e. Following is a series of statements that could be used to describe the newspaper ad for [BRAND]. Please indicate whether each statement describes well, describes somewhat or does not describe the newspaper ad for [BRAND]. The shape of the Creative Diagnostics map is close to that of Newspaper Norms and exceeds both Automotive Averages and Newspaper Norms for ‘Highlights an Important Feature’

Branding removed + 20 Automotive Average Newspaper Norm These top line measures provide an indication of how many people recall seeing an ad (ad recognition), what proportion of those who can name the brand it was for, and how interesting they found the ad’s content. The All Newspaper Norm is calculated from testing 40 randomly selected newspaper ads and quantitatively testing amongst almost 1,700 respondents. Explanatory notes: Top line measures reveal; Ad recognition (sometimes referred to as ad recall, prompted ad awareness, prompted recall, executional cut through). Indicates extent to which the advertising creative cuts through and is the main indicator against which media agencies are assessed It is affected by the weight of newspaper activity i.e. if it only appeared once, this could explain lower results. It is a prompted question i.e. respondents are shown a visual of the ad in situ (how it appears on the page) with all branding removed. Respondents are then asked: “Do you remember seeing the newspaper ad before?” Brand Linkage (sometimes referred to as brand recall) This measure is generally considered to be a creative indicator i.e. how well the name of the brand is recalled and attributed to the advertising message It can be affected by brand life-stage, consistency of approach, a lack of a point of difference to others in the category, on, or if the ad takes a similar approach to the category or another advertiser (who may reap the benefits of the advertising) It is asked immediately after the ad recognition question while the ad is de-branded: “You mentioned that you saw the newspaper ad; what brand was it for?” It is an important measure as it indicates of those who recognised, what proportion are able to attribute the message to the right brand. High brand linkage norms are a prominent benefit of newspapers as reading consumption and concentration is active. Interest Provides a measure (self reported) of the interest in the advertising message. The results are from forced exposure (i.e. the ad is branded and shown to all respondents. It is asked as a statement using an agreement scale i.e. “Following is a series of statements that could be used to describe the newspaper ad for [BRAND]. Please indicate whether you agree or disagree that the statement describes the newspaper ad for [BRAND]. What the ad said or showed was interesting to me The results used are those that reflect strongly or somewhat agree. Recognition and Brand Linkage are below Automotive Averages but Interest levels are significantly higher than both Newspaper Norms and Automotive averages. Ad recognition and brand linkage may be affected by the weighting of the campaign or the timing of the research, especially as these elements are tested unbranded. Significantly different to Auto Average at 90% c.l.

All Brand Equity scores are significantly above Automotive Averages. + 23 + 20 + 23 Automotive Average Newspaper Norm Brand Equity Impact as the title suggests measures how the ad influenced feelings towards the brand. Indicates the effect the ad is having on the key components of the brand’s brand equity Familiarity Relevance Uniqueness Here we can see the ad is working to benefit brand equity, by making the brand appear familiar, relevant and different Explanatory notes: Brand Equity Impact is tested by using forced exposure i.e. regardless of whether a respondent has recognised the ad it is shown to them and they are asked a series of statements: Following is a series of statements that could be used to describe the newspaper ad for [BRAND]. Please indicate whether you agree or disagree that the statement describes the newspaper ad for [BRAND]. The ad made the brand seem different from other brands in the category (uniqueness) The ad made the brand appear to be appropriate and fit in with my lifestyle and needs (relevance) The ad improved my familiarity and understanding of what the brand is about (familiarity) All Brand Equity scores are significantly above Automotive Averages. Significantly different to Auto Average at 90% c.l.

Newspaper Auto Diagnostics + 15 + 14 Automotive Average Respondents agreed that the ad depicted a ‘car to be proud of’ and they could ‘see myself driving’ Significantly different to Retail Average at 90% c.l.

Message comprehension (based on the specific intentions of this ad) for this ad is at the mid range of the scale with 50% generally correct, although most respondents understood it was a message about car safety.

What did the respondents say about the ad? Safety focus Ad looks ‘boring’ but content is interesting and different The design of the ad is not particularly interesting, but the content conveys some remarkable news regarding improved methods of testing car crashes and related crash injuries. This is unique, when compared with other ads.. It emphasises an important issue that is only touched on by ads by other car companies The ad makes me think about safety more than other ads which are more about performance and looks Toyota always gives you the best information Compares well with other ads. By using glass it illustrates the delicacy of humans and the research into producing safer cars. Other ads tend to emphasise comfort and performance I thought that the ad looked very boring in terms of colour - it did not stand out on the page Toyota focuses on safety features, innovation and safety technology unlike other brands

Automotive Average Newspaper Norm Rolemap investigates how consumers responded to the newspaper advertising. It measures response against 6 key advertising roles that newspaper advertising can perform Rolemap statements to the left of the graph show the statements that define the six roles. The respondent is asked: Thinking about the newspaper ad, which of the following statements below would you agree with?’ (Mark as many or as few as you want) Significantly different to Auto Average at 90% c.l. This ad performed significantly well against Automotive Averages and Newspaper Norms for key roles Affinity and Public Agenda. This positive result indicates that the strategy adopted was successful in highlighting an important issue which in turn gave the respondents a good feeling about the brand.

Newspaper Average* This ActionMap is typical of that generated by the Auto category given the long term and complex nature of decision making in this category. It is very encouraging that the ‘buy/try’ score achieved, slightly exceeds averages suggesting this message resonates well with those who have purchasing intentions.

Performance Comparisons     Performance Comparisons

Recently tested Toyota ads Lifetime of Advantages Sydney People 16+ =109 HP DPS Tested: July 2011 Toyotathon People 16+ = 109 Tested: September 2011

Three different messages generating three different RoleMaps Automotive Average Newspaper Norm Interestingly, each of the three ads deliver very different RoleMaps. Of these three, ‘Lifetime Advantages’ performed strongest at delivering to multiple strategic roles. ‘Fragile’ was unique in achieving high scores for Public Agenda as well as Affinity.

Toyota vs. other product benefit automotive ads July 2010 September 2009 December 2011

Toyota vs. other product benefit ads Automotive Average Newspaper Norm Prius’ ‘Perhaps’ has also generated a strong overall RoleMap. Mazda’s approach with ‘I in Family’ is similar to that of ‘Family is fragile’ with less impressive results on most measures.

Auto Affinity This ad from Toyota now ranks as #3 for Affinity scores achieved within Creative Benchmarking, within the Automotive category. The two Mazda examples and the Ford example are from our Automotive study completed in June 2009, while the Subaru ad is from July 2010

This safety and features from Toyota is a departure from the majority of Auto advertising which overwhelmingly focuses on offers. While the ad meets most averages for positive creative diagnostics, a few respondents mentioned via verbatims that they found the ad ‘lacking in colour’ or ‘did not stand out on the page’ The ad scored highly for being ‘different to other car ads’ which in this case is a strength overall The ad generated high levels of interest, and verbatims also demonstrated the ongoing strength in the Toyota brand to invoke trust and drive high levels of Affinity Importantly, this is a car our respondents can see themselves driving, and this was reflected in the ActionMap results which showed a slightly above average result for ‘buy/try’ the product, unusual for the auto category where the purchase decision making process is a long and complex one. Overall, this ad is a good demonstration of how an iconic brand in it’s category, can use a fresh strategic direction to drive long term business objectives. A good performance from the creative Top lines: best recognition score for any ad tested in June Equity: positive contribution to equity measures With 2 out of 3 significantly above average on all metrics Creative Diagnostic: creative on or above par on all metrics. Headline and clarity of offer making the creative eye catching Message Comprehension: Role Map: A solid performance with significantly above average affinity and call to action scores Action Map: Creative translates into strong retail action: from store visitation to research, and interestingly advocacy

Established in 2006 by the major Australian newspaper publishers: News Limited Fairfax Media (including Rural Press) APN News and Media West Australian Newspapers Represents paid national, metropolitan, regional and community titles. Primary aims: To promote newspapers as a powerful medium for advertisers To ensure that newspapers are perceived as being contemporary and relevant in a transforming media landscape

Creation of Automotive Averages Testing of randomly selected and hand picked newspaper display ads Over 3,000 ad observations in total 25 test ads (27 randomly selected, 9 hand picked) 100+ observations per ad Population representative sample of the five mainland state capitals Conducted online by Ipsos Media CT, 2009

Creation of All Newspaper norms Testing of randomly selected newspaper display ads 5,100 ad observations in total 40 test ads, 100+ observations per ad Population representative sample of the five mainland state capitals Conducted online by Ipsos Media CT, July-August 2008 Sample size 1,737

Newspapers are a powerful medium to utilise across a broad range of strategic roles. Six strategic advertising roles have been validated both qualitatively and quantitatively, resulting in the creation of Role Map, one of two proprietary newspaper metrics. Role Map demonstrates how consumers connect with newspaper advertising across the six roles, comparing the performance of creative against a footprint of all ads tested. The six strategic roles were originally identified via research by the Newspaper Marketing Agency in the UK and have subsequently been validated in both quantitative and qualitative research in Australia. It’s well known that newspapers are very powerful in delivering information and call to action campaigns, and the grey footprint on the Role Map chart of all retail ads tested reinforces this. What is less well known is that newspapers can also be used by advertisers, including retail advertisers, to effectively: build brands (Affinity) challenge people’s thinking (Re/appraisal) raise important social issues (Public Agenda) and build on other media activity, particularly television (Extension) Retail average Statements are tailored to be appropriate to the advertising category. 27

Newspapers are recognised as an effective medium for delivering a Call to Action. Action Map, the third proprietary newspaper metric, expands on this strategic role to provide an understanding of the types of action a newspaper ad inspires. Measured via forced exposure, people are asked about the actions they would consider taking (or have taken) as a result of seeing the ad. New measure introduced in March 2010, norm not yet available. 28

Another proprietary newspaper metric provides a set of creative diagnostics unique to the attributes of newspaper advertising. They’ve been developed to help identify areas for improvement where results across other brand and advertising measures may require further analysis and interrogation. The Newspaper Creative Diagnostics are tailored to unique attributes of newspaper advertising. These measures help better understand the ‘why’ behind lower performing ads. Statements are tailored to be appropriate to the advertising category. Retail average 29