Redhanded media optimiser Regional market review April 2011

Free to Air TV in Regional Australia Getting the best out of regional TV – understanding consumer and market profile Power and role of TV in regional Australia Building brands in regional Australia Measuring effectiveness in regional markets Future of TV

RTM is the marketing bureau for Regional free to air TV

Play 60 second RTV Eyeballs TVC

Regional TV covers all areas outside capital cities and reaches 36% of population QLD NNSW SNSW TAS VIC REG. WA DIARY

Urbanisation and high population growth changing the profile of regional Australia Seachange: Baby boomers and young families Lower cost of living and lifestyle are main attractions Rural populations moving to regional hub towns Less than 4% of households depend on farming

Populations of major regional TV markets are comparable with the metros People Source: ATR & OZTAM 2011, Nielsen Media Research 2010 NNSW 2,079SNSW 1,410

Population Increase: 2001 vs Source: ATR & OZTAM 2011 Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas National average QLDNSWVICTASMETRO

Seachange… … for baby boomers …for families

“Typical” Seachanger Ryan, 36. Wollongong NSW Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade Above average income & primary focus is kids and lifestyle. Loves footy, cars and teaching kids surfing.

Source: Roy Morgan Single Source (12mths to Dec 2010) Regional consumers have similar demographic profile to metro

People with HHI $130k+ or Investments $500K+ Doubling in number of wealthy people living in regional Australia in past five years Source: Roy Morgan Single Source (12mths to Sep 2010, 2009, 2008, 2007, 2006, 2005 )

Why has regional spending been more stable and the outlook more positive? Lower cost of living – less debt Huge investment in infrastructure Population growth driving development of local economies Resources growth impacting many parts of regional: NSW, QLD, WA, SA.

Culturally Australia is a divide nation: Regional is representative of the majority Experiential International Libertarian Practical Communitarian Self Reliant Upwardly Mobile Materialist Family Focused Pragmatic Functional Patriotic Youthful Technological Energetic Conservative Institutional Self-Controlled Inner Metro 23% Outer Metro 41% Regional 36%

According to David Chalke social researcher….

Media landscape in regional markets is broadly similar to capital cities – but FTA TV is more popular Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010

Source: Roy Morgan Research (12 months to Dec 2010) Media Consumption: Farm Owner/Workers vs. P18+ Media Use – Farmer Owner FTA Regional Television offers greatest reach of any medium

Farmers’ TV day FTA Television offers highest reach for farmers - Dinner, After Dinner and Breakfast It is up to the respondent to indicate their media preference during periods – RMR don't provide a time-frame for what is considered breakfast, dinner, after dinner etc. Farm Owner / Worker Source: Roy Morgan Research (12 Months to Dec 2010)

Farmers favourite TV shows Source: Roy Morgan Research (12 Months to Dec 2010)

Farmers favourite TV shows

Audience share of the new commercial “digital” channels has more than tripled since June 2010 Source: Mediaweek, Metro data from OzTAM and Regional data from Regoional TAM. All People 18: :59 June 2010 Sept 2010 Dec 2010March 2011

Subscription TV audiences are down in all key dayparts for the Survey Year to Date FTA viewing is up & commercial TV even more Source: Regional TAM; Survey 1-2, 2011 vs. 2010; Consolidated Data New commercial channels driving Free to air TV audiences up in 2011 Audience Year on Year % Change; Combined Agg Markets (QLD, NNSW, SNSW, VIC & TAS) Total People; Sun-Sat; Survey 1-2, 2011 vs. 2010

News & current affairs Local TV ads Promotions Community sponsorships Regional TV is part of the community… “We live here too” …means greater engagement

Regional TV delivers higher engagement through… …Play RTV sizzle reel of local news, programme content and promos 5 mins

Creating a regional voice for a brand will improve preference, loyalty and cut through True local (Newcastle Permanent, Southern Phone Company) Product offer localised (TCW, Rural bank) Tone of voice or context localised (youi, Greater Building Society, LaTrobe Uni) Support for local community (CBA Kids Cricket, NAB AFL, Surf Life Saving etc etc)

…Play and comment on TVC’s by previously mentioned advertisers

Measurement is the key to advertising effectiveness…

RTV Effectiveness and ROI: Listerine case study 4 W/E Period Listerine Smart Rinse for Kids share of total sales vs. TV Spend Source: Scan Data (4 W/E 6/1/08 to 28/12/08) Coles /Woolworths/Bi Lo (Excludes NT)

40 % of national Listerine sales growth came from regional markets

Drill down to as small a market as possible: EG Navara 4x4 had best performance vs. segment in Reg. NSW and TAS…Rural markets need a boost. Nissan Narava YOY change * Jan to Dec 2010 vs Source: VFACTS Jan to Dec 2010 vs (excl T&B, incl Utes)

Source: AGBNMR Panorama 12 months to Dec 2010 vs %-16%+12%-10% YOY change Consumer surveys: NAB only bank to improve recommendation in regional YOY Regional ONLY: People with MFI as labelled, who would recommend this bank to others P3M

Cost efficiency: Reg. TV CPM is 45% below metro TV average and delivers double the ROI Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2010

Share of national population Share of national TV budget Higher cost efficiency of regional TV means more can be invested to refine and target communications

2020 Vision The Future of TV Pt 1: The Multi screen Experience ….PLAY VIDEO 4 mins

Regional TV will continue to offer higher ROI and engagement than any other media alternative Regional markets will continue to grow in affluence, population and urbanisation