4 How Brand Advertising in Newspapers works best   AAMI   June 2009

About The Newspaper Works 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

Why has The Newspaper Works developed an Effectiveness metric? To measure and identify the effectiveness of newspaper campaigns To improve understanding of how to use newspapers effectively To improve our understanding of the roles advertising can effectively play in newspapers To improve the standard of newspaper creative To provide a consistent metric that is accepted as the industry standard There has never been a more important time for newspapers to demonstrate their influence than in the current economic climate. Advertisers are rightfully demanding even greater accountability and return on investment. Media agencies have increasingly developed their own tools in recent years, but most of the measures don’t include an understanding of how the actual creative is working in market and metrics are not specifically designed for newspapers. This metric is the first of its kind in Australia, providing previously unavailable insights into how consumers respond to newspaper advertising.

Newspaper creative benchmarking Applications for the metric Case studies Newspaper creative benchmarking Category deep dives Pre/post effectiveness studies, measuring in-market effects Comparison of creative against category averages Comprehensive analysis of how newspapers can best be used to influence purchase behaviour The Newspaper Works has embarked on an extensive and rigorous Effectiveness programme, applying the Newspaper Effectiveness metric broadly to: - in-depth case studies with incredibly robust samples of 1300 pre and 900 post same (rather than matched) samples. - key category deep dives, focussing on categories with a more complex path purchase. And for today’s presentation, newspaper creative benchmarking in the retail category. the effectiveness programme allows us to create a database of norms, developing scores by advertiser category as time passes against which ads can be benchmarked The Newspaper Works’ effectiveness partner:

Creative benchmarking measures Recognised industry measures + Newspaper measures Ad Recognition Brand Linkage Brand Equity Impact Role Map Newspaper Creative Diagnostics The findings in the retail 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

Proprietary newspaper measures

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 ads tested (40 in total) reinforces this. What is less well known is that newspapers can also be used by 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) All newspaper norm 7

The second 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. All newspaper norm 8

Retail Creative Benchmarking June 2009

Key research details 9 newspaper ads tested Benchmark: Retail average All ran in Sydney and were tested in Sydney All ran in EGN Ads ran mid-late May Benchmark: Retail average Sample: Australians 16+ in Sydney (n=311 in total) 100+ observations for each ad Fieldwork: 4-10 June 2009 Conducted online by Ipsos MediaCT

Ad tested Market: Sydney Size: Full page Position: EGN

Top line measures +18 +18 Very strong recognition and interest. Brand linkage is understandably lower given it’s a one-off topical ad Significantly different to Retail average at 90% c.l. Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research

All Newspaper Norm Strong brand advertising making use of a public agenda angle and linking with TV AAMI

Comments Clever topical ad that successfully reinforces previous AAMI advertising to build the brand Capitalising on an issue in the public arena can also impact positively on brand values and generate reappraisal Strong showing across all main measures A great use of newspapers