Unilever Regional TV Effectiveness Review April 2011

RTM is the marketing bureau for Regional free to air TV

Regional TV punches above its weight for Unilever brands for both sales and ROI Regional markets contribute up to 40% of national Unilever brand sales Regional consumers have higher consumption in most Unilever brand categories Case studies prove double rate of return from RTV investment FTA TV more dominant media channel in regional – 20%+ share of total FTA TV spend will deliver optimum results

RTM EYEBALLS VIDEO 60SEC

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

Regional TV coverage includes large cities and fast growing coastal suburbs Newcastle & Central Coast Gold Coast Wollongong & Illawarra Canberra

Diary markets: A diverse mix of urban and rural Regional WA Port Pirie/ Broken Hill Satellite Griffith Mildura Darwin Loxton/Mt Gambier

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

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

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 divided 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….

Regional GB’s have higher purchasing in all Unilever food segments… Source: Roy Morgan Single Source (12mths to Dec 2010)

…and in most household and personal care segments too Source: Roy Morgan Single Source (12mths to Dec 2010)

RTM case studies are opportunity for Mindshare to demonstrate effective media strategy Rexona regional sales grew by 9% from TV and return 6 times investment Lynx grew by 10% from RTV and indentified BDI opportunities in QLD and SNSW Dove grew by 20% in regional and 38%+ of national sales Examples

Total Rexona sales for Sept 2007 to July % of sales in regional markets Total Rexona sales: Sept 2007 to July % 20.2% 14.0% 5.3% 7.1% 14.2% 5.4% 8.1% 2.4% 4.0% Source: Scan Data (4 W/E 9/9/07 to 13/7/08) Coles /Woolworths/Bi Lo (Excludes NT) NNSW 10,814SNSW 9,338

Rexona No.1 brand in all markets – regional share slightly higher in QLD,VIC & SNSW Rexona share of total deodorant category sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 9/9/07 to 13/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

RO 2 I x Regional TV delivered double the rate of return on TV investment vs. metro

Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and 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

Regional consumers more likely to watch FTA TV but otherwise have same media habits as metro Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010

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

Regional TV delivers higher engagement through… RTM SIZZLE REEL

Regional Australia is a key opportunity for growth and increased ROI for Unilever Growing population and spending power Consumer profile is aligned with Unilever brands CPM half metro = double the ROI 23% of budget to achieve up to 40% of growth and sales