The Attention Economy Quantitative Research Results New Zealand

“Marketing is a contest for people’s attention” -seth godin

OUTDOOR’S PROPOSITION ALERT POSITIVITY ATTENTION AD RECALL PEOPLE TEND TO BE IN AN ALERT AND ATTENTIVE STATE OF MIND WHEN THEY ARE TRAVELLING OUTSIDE OF THE HOME DUE TO ITS NON INTRUSIVE NATURE, PEOPLE GENERALLY FEEL QUITE POSITIVE TOWARDS OUTDOOR ADVERTISING THIS POSITIVITY, INFLUENCES THEIR ATTENTION AND DRIVES THEIR BEHAVIOUR - MORE LIKELY TO PAY ATTENTION AND LESS LIKLEY TO ACTIVELY AVOID OUTDOOR ADVERTISING THESE THINGS COMBINE TO CONVERT LESS TIME SPENT WITH THE MEDIUM INTO NOTABLY HIGH AD RECALL Simple Formula Outdoor has the ability to reach and impact large audiences at scale The fact is, people spend a lot of time outside of their home – and when they do, they’re generally in an ATTENTIVE mood state (ALERT, ACTIVE, INTERESTED, IMPULSIVE) primed and ready for receiving messages – such as advertising. People generally feel positive about advertising on outdoor platforms, which tends have a halo effect on their behaviour – 1. Making them more likely to Pay Attention and 2. less likely actively avoid advertising on the platform All these things combine to ensure that people notice and recall outdoor advertising very strongly Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

KEY FINDINGS People spend a lot of time outside When people are outside they are alert People generally feel quite positive towards ads on outdoor formats Outdoor ads are the least avoided Outdoor is up there with TV and Online for Ad Recall Outdoor converts more efficiently Outdoor has the ability to reach a large audience, as well as a targeted audience Outdoor is complimentary to most other media due to the way it is consumed Different markets exhibit slightly different behaviours Different formats have different strengths Summary of findings Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

People spend a lot of time TRAVELLING outside GIVING OUTDOOR A HUGE OPPORTUNITY TO REACH AND IMPACT AUDIENCE TIME SPENT TRAVELLING Across an average 19 individual journeys per week 18 hrs 11 mins 2 hrs. 52 mins AVERAGE WEEKDAY 1 hr. 57 mins AVERAGE WEEKEND People spend a lot of time outside, giving Outdoor plenty of opportunities to reach and impact audience through advertising 90% of people have travelled within the CBD of their home city in the past two months In comparison to time spent with other media, Outdoor ranks #3 AVERAGE WEEK Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

AT HOME OUT OF THE HOME RELAXED ALERT SLEEPY ACTIVE CALM IMPULSIVE When people are outside THEY Are alert READY TO RECEIVE COMMUNICATION/BRAND MESSAGES AT HOME OUT OF THE HOME RELAXED ALERT [91%] [82%] SLEEPY ACTIVE [88%] [77%] CALM IMPULSIVE [87%] [68%] Q10 Which of the following emotions/moods would you associate most with being at home and which would you associate most with being out and about? Out of home: Attentive mood states Alert Active Impulsive In the Home: Passive mood states Calm, Sleepy, Relaxed For obvious reasons these mood states are a massive positive for Outdoor advertisers and the type of mindset they will reach in an Outsider audience ‘Outsiders’ are a primed (alert and attentive) audience ready to receive content/brand information Advertisers need to harness that attentiveness and turn it into an audience for brand messages MY TIME INTERESTED [84%] [63%] TOP 4 MOODS ASSOCIATED WITH EACH ENVIRONMENT Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

Overall people are quite positive towards outdoor advertising Q13 How would you characterize your attitude towards advertising in each of the following media? % Net positive about advertising in this medium *average of 11 different formats - prompted When it came to peoples feelings or attitudes towards media advertising platforms – Overall people felt positive about all off line ad media platforms including outdoor ads and quite negative towards online advertising platforms, especially on their mobile/tablet Why does this matter… Evidence shows (and so will our results) that this ‘Positivity’ has a halo effect on the advertisers ability to ‘cut through’ and be recalled by its audience The study also revealed that – Younger metropolitan audiences are more likely to be positive towards outdoor Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

OUTDOOR ADS ARE THE LEAST AVOIDED Q14 Advertising in which of these media do you actively choose to avoid? *Any one or more of 11 different formats – prompted The way people feel about specific ad media platforms is very strongly reflected in their behaviour of actively avoiding it For example – their negativity towards online advertising platforms, especially on their mobile/tablet – was strongly reflected in the active avoidance of ads on the platform Concerning that there is such rapid ad spend growth , despite the very strong rejection of advertising on this platform Outdoor is the least avoided advertising platform – most likely due to its non intrusive nature. As an advertising platform – outdoor is unimposing, almost invited by the audience at their leisure as they often seek to be entertained /fill the gap Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

outdoor is up there with TV and online for ad recall Q12 In which of these places have you seen, heard or read any advertising in the past week. And question 6a/6b for time spent with medium. *Any one or more of 11 different formats – prompted Outdoor advertisings ability to cut through, is just as good (even better than online) Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

Outdoor converts more efficiently conversion = Time spent with media vs. ad recall Q12 In which of these places have you seen, heard or read any advertising in the past week. And question 6a/6b for time spent with medium. *Any one or more of 11 different formats – prompted Levels of ad recall is among the highest for Outdoor, despite lower levels of time spent with the medium (compared to TV and Online) Outdoors ability to convert less time spent outside in comparison to the time people spend watching TV (10 hrs. less) into the same high ad recall – demonstrates its efficiency and its ability to cut through and impact audience Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

Outdoor has the ability to reach A BROAD AUDIENCE… as well as A targeted audience ie AIRPORT VISITORS OUTDOOR REACHES A LARGE AND BROAD SECTION OF THE COMMUNITY “OUTSIDERS” [PEOPLE WHO GO OUTSIDE] THESE PEOPLE ARE GENERALLY IN LINE WITH THE OVERALL POPULATION [DEMOGRAPHICALLY] MALE 18-39 AUCKLAND UNIVERSITY EDUCATED 96% of people go outside As we’ve already uncovered. Outdoor advertising reaches a large and broad section of the community - we like to call them ‘The Outsiders’ This means Outdoor has the potential to reach EVERYBODY Airport visitors P7D Audience profile: HEAVY male skew Skew towards 18-39 AB/C socio-economic skew, higher levels of education Lighter watchers of FTA, but heavier watchers of STV More likely to physically engage with an outdoor ad Heavier consumers of all ‘portable’ media including social, mobile and print – presumably related to doing that during dwell time. They are also enthusiastic consumers: more likely to: drink more alcohol (of any type); more likely to shop online be in the market for or change of telco; spend more on personal entertainment; AB/C LIGHT FTA VIEWERS HEAVY FTA VIEWERS HEAVY CONSUMERS OF PORTABLE MEDIA AIRPORT VISITORS PROFILE BASED ON AUDIENCE SKEWS COMPARED TO THE POPULATION 14-64 IN NZ However, certain outdoor environments have the ability reach and impact a very targeted audience. Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

Outdoor is complimentary to most other media due to the way it is consumed Some media (such as TV) only really have the opportunity to reach and impact people when they are inside, suggesting outdoor can have a complimentary relationship with most media. TV is a key example of a medium that is largely complimentary to outdoor due to the sharp contrast in the way they are each consumed. There are many case studies that demonstrate their synergistic benefits. We also know that when people are commuting on public transport, or waiting at the airport there is often high smartphone/mobile usage, suggesting a mobile/outdoor strategy could also be an effective way to prompt consumers to engage with a brand campaign. 60% of people are typically outside of their homes from 8am to 5pm on a weekday WEEKDAY 40% of people are typically outside of their homes from 9am to 5pm on a weekday WEEKEND Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

different markets exhibit slightly different behaviours AUCKLAND Heavier viewers of TV More of a skew towards families Spend more time at the airport Generally more positive and attentive towards advertising in general, including outdoor (this is common for big cities) WELLINGTON More likely to have travelled through the CBD Spend more time walking or running, and less time in shopping centres Listen to less radio and spend more time online or on their mobile phones More likely to visit office blocks Different markets exhibit different behaviours when it comes to the way people move or travel around them This behaviour can impact where and which formats/platforms are best suited to reach and impact them CHRISTCHURCH Light users of public transport Spend a moderate amount of time driving or riding, usually in suburban areas or the CBD, less so on major roads Lighter readers of newspapers/magazines Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

Different formats, different strengths LARGE FORMAT BILLBOARD DIGITAL BILLBOARDS HIGH AD RECALL [61%] MOST NOTICEABLE FORMAT BRAND FAME IMPACT + SCALE REACH A LARGE AND ALERT AUDIENCE MEMORABLE NOTICEABILTY BETTER AT ATTRACTING ATTENTION AIRPORT FORMATS INTERACTIVE ZONES APN Outdoors's key formats are well positioned in market and each have different strengths A more strategic approach should be considered, rather than a ‘one size fits all’ when planning campaigns HIGH AD RECALL [62%] REACH A TARGETED AUDIENCE [WHITE COLLAR, MALES , 30-39 ] HIGH MOBILE/SMART PHONE USAGE HIGH DWELL TIME DEEPER AUDIENCE ENGAGEMENT PERCEIVED AS DIFFERENT SETS TRENDS MAKES BRANDS STAND OUT Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

APPENDIX

People spend a lot of time TRAVELLING outside GIVING OUTDOOR A HUGE OPPORTUNITY TO REACH AND IMPACT STV 10.5 FTA 17.7 Q6a/6b Thinking about the last week or two, roughly how long did you spend doing these activities on a typical day during the week/at the weekend? (Aggregated into weekly hours) People spend a lot of time outside, giving Outdoor plenty of opportunities to reach and impact audience through advertising On average across all media time spent with TV still dominates, however outdoor has a huge opportunity to influence (after TV and Online Media) In comparison to time spent with other media, Outdoor ranks #3 90% of people have travelled within the CBD of their home city in the past two months Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results

OUT OF THE HOME AT HOME When people are outside THEY Are alert READY TO RECEIVE COMMUNICATION/BRAND MESSAGES OUT OF THE HOME Q10 Which of the following emotions/moods would you associate most with being at home and which would you associate most with being out and about? Out of home: Attentive mood states Alert Active Impulsive In the Home: Passive mood states Calm, Sleepy, Relaxed For obvious reasons these mood states are a massive positive for Outdoor advertisers and the type of mindset they will reach in an Outsider audience Outsiders are a primed (alert and attentive) audience ready to receive content/information Advertisers need to harness that attentiveness and turn it into an audience for brand messages AT HOME Source: Millward Brown & APN Outdoor Attention Economy Study 2014. New Zealand Results