1. Newspaper Creative Benchmark Report Medibank Private Pet Insurance June 2011

2. 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 Medibank was included in the June 2011 study

3. 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:

4. 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

5. Medibank Private was one of six ads tested in Syndey Sample: Australians 16+ Sample size: 110 Fieldwork: 9 – 15 June 2011 Conducted online by Ipsos MediaCT Benchmarks used: All Newspapers Norm (see appendix for details)

6. Branded Newspaper Benchmarks

7. ‘Pet Insurance’ Market: Sydney Size: Half Page Position: Body & Soul Tested: June 2011 Ad benchmarked

8. Creative performed well against all positive metrics with respondents agreeing it ‘looks good’, ‘has a great photo’ and ‘highlights an important feature’ Newspaper Norm

9. A solid performance with recognition and interest in line with norms. Respondent verbatims showed a strong understanding of the category but very little connection to Medibank Private or any other pet insurance brand (one respondent attributed the ad to the RSPCA) Brand linkage (no logos etc.) may be affected by the timing of research, the weight of the campaign or in this case, an unexpected advertiser. 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. * Newspaper Norm

10. Strong visual imagery coupled with informative and relevant copy had a positive affect on Brand Equity scores. Significantly different to Retail Average at 90% c.l. +11 +23 Newspaper Norm

11. Example of verbatim opinions of the ad include: ‘good picture and feel good image for’ ‘The photo is heart warming’. ‘Its a good ad, it’s aimed at people that really care for their pets’. ‘Well written and eye catching’.

12. A very high majority of respondents were able to comprehend the key message of this ad, even without being able to identify the brand. Example verbatims of comprehension: ‘I didn't realise that they offered pet insurance so it told me something I didn't know’. ‘I feel that the ad is a very positive reminder that pets need insurance too. It highlights the reasons why this is important and creates awareness’.

13. This ad has outperformed Role Map norms across 5 of 6 metrics with significantly high scores for Affinity (ads with animal pictures tend to test well against this metric), Public Agenda and Reappraisal, an important result that encourages brand consideration. Newspaper Norm

14. The ad encourages ‘remembering for later’ (for when the product becomes more relevant to individual respondents) and WOM. Web search and intention to visit the store are in line with averages. % scores Newspaper Average

15. 6.2x Higher than norm 5x Higher than norm 2.1x Higher than norm 2.9x Higher than norm 7.8x Higher than norm 3.8x Higher than norm All newspaper norm. June 2011 (Updated monthly)

16. The creative has tested well with very positive results against all metrics This ad has performed very well at driving Affinity, Public Agenda and Reappraisal Brand recognition is low (but on very small sample sizes), which may be a result of the weight and timing of the campaign, but may also reflect that Pet Insurance is a relatively new category, not closely associated with a well known insurance brand like Medibank Private Certainly, the ad helped Medibank Private generate a key point of difference from other insurance brands Achieving strong results for reappraisal, affinity and differentiation may provide Medibank Private with a worthwhile strategic platform for ongoing communication

18. 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

19. 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

20. 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.

21. 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.

22. 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.