September 2011 Newspaper Creative Benchmark Report Challenger

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 Challenger was included in the September 2011 Study

Pre/post effectiveness studies, measuring in-market effects and how newspaper work with Television Comparison of creative against category averages Comprehensive analysis of how newspapers can best be used to influence purchase behaviour The Newspaper Works’ effectiveness partner:

Recognised industry measures + Newspaper measures Proprietary newspaper measures The Newspaper Works’ effectiveness partner: Ad Recognition Brand Linkage Message Comprehension Brand Equity Impact Role Map Action Map Newspaper Creative Diagnostics

Challenger was one of three ads tested in Sydney Sample: Australians 16+ Sample size: 105 Fieldwork: 8 th -15 th September 2011 Conducted online by Ipsos MediaCT Benchmarks used: Newspaper Norm(see appendix for details) Appeared: ¼ page ad in Sydney Morning Herald, News Section, Page 5, Tuesday 9/8/11 Nb: Ad appeared on page containing contextual editorial

Branded Newspaper Benchmarks

Newspaper Norm The ad achieves high scores for ‘Highlights an Important Feature’, but does tend to skew negatively in Creative Diagnostics. In verbatims, we can identify that some of the younger respondents (36% of our sample are under 40) lack understanding or cannot see the relevance of the ad to them at this time, and this may affect overall positive results.

Recognition is close to Newspaper Norms which speaks well of the ongoing presence this campaign has had in newspapers. Brand linkage is lower than might be hoped and this may be due to the specific nature of the advertising category versus our broader sample. Upon reading the ad, interest is above Norms. Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research Significantly different to Retail Average at 90% c.l. Caution small sample n=11 Ad shown without branding Newspaper Norm

Brand Equity scores are all slightly higher than Newspaper Norms Significantly different to Retail Average at 90% c.l. Newspaper Norm

Given the focused targeting and specific nature of the messaging, it’s encouraging that 37% (bottom 2 boxes) of respondents were able to feedback a correct interpretation of the message and a further 32% were in the ballpark of the subject matter.

What did the respondents say about the ‘Spirit’ ad? The picture and caption drew me in and it gave me information on annuities, which I didn't think about too much previously Interesting. Eye catching. Relevant information for those nearing or in retirement. Having a photo of an old person suggests that the ad is only aimed at old people. This type of ad is depressing and upsetting and I avoid looking at them Raised an important issue Gave me something to think about Not as relevant to the young? It appeals to older readers. I’m not worried about the market so I didn’t feel the need to absorb it. It is putting forward an important fact for retired people, continuing income. Compared to other ads, it is good in that it ties income into an ongoing problem - bills. It highlights the need to look at other investments for retirement apart from super

The word cloud demonstrates that respondents have many angles from which they approach the issue of Super, using words such as ‘secure’, ‘problems’ and ‘bills’

The ad has achieved significantly high scores for raising an issue on the Public Agenda. Ads that do this tend to be raising an issue pertinent for the category. The ad has achieved or exceeded Norms for all 5 other Roles of Newspapers including a strong performance for Reappraisal. Significantly different to Retail Average at 90% c.l. Newspaper Norm

Obviously Super and related products are a complex set of issues and the Action Map reflects this with respondents more likely to ‘Remember for Later’ than take immediate action. Score for Visit Store/Look Out for and Web Search meet Newspaper Averages. Other actions ‘written in’ by respondents included ‘Talk to my financial adviser’ and ‘Research annuities’ % scores Significantly different to Retail Average at 90% c.l. Newspaper Average

Comparison with other Finance Category ads

Achieving high scores for addressing the Public Agenda is usually a result of category driving behaviour November 2009March 2011 Examples

Ads that achieve strong scores against Public Agenda tend be addressing category issues Newspaper Norm The ANZ ad achieves a highly successful Role Map (in no small part due to the use of the bloodhound…ads with dogs tend to be winners!). The Suncorp ad was in response to the nab ‘Break up’ campaign and respondents liked seeing a smaller brand challenging the ‘Big 4’

The changing nature of consumer response in Finance Category ads we’ve tested March 2010 June 2011 Examples

Response is more likely to come via the web or after a longer period of contemplation by the consumer Newspaper Norm The Insurance segment of the Finance category is obviously highly response driven, and it may be surprising to know that ads that successfully drive consumers to make a phone call, are now quite rare. A more likely result is Web Search and driving Word of Mouth, before the final decision is made towards making a commitment. The ad from AAMI leverages their strong TV presence and brand awareness to drive a strong level of direct response via both phone and web. The Medibank Pet Insurance ad uses strong Affinity levels to drive intentions for ‘Remember for Later’ and ‘Tell Friends or Family’

Top Performers on Rolemap

6.2x Higher than norm 5x Higher than norm 2.4x Higher than norm 2.9x Higher than norm 8.0x Higher than norm 3.8x Higher than norm All newspaper norm. September 2011 (Updated monthly)

This ad has scored high results in many aspects of our Creative Benchmarking process including ‘Highlights an important feature’ Interest Speaking to the Public Agenda Generating Reappraisal It’s fair to say based on results that the ad offers a benefit for the category, stimulating the conversation around Super and diversifying retirement products We surmise that in a more tightly targeted respondent group (our sample is a population weighted group of P16+), we may have seen even stronger results. And we’d see a fewer number of respondent verbatims referring to the ad as being for older readers etc We know that there have been other versions of this ad with younger people depicted in them and we believe these would largely overcome any barriers in reaching an under 40’s respondent These are very encouraging results from Challenger and the ad shows that a complex topic can be presented in a way that will get the reader thinking.

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 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. Retail average Statements are tailored to be appropriate to the advertising category.

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.

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. Retail average Statements are tailored to be appropriate to the advertising category.