Suncorp Group Insurance
Regional Market Review
March 2011
• Benefits of RTV: Population, spending power, demographics
• Media: Efficiency, investment levels• Insurance brand regional focus• Regionally focused communication
strategies• Digital TV multichannel opportunities
Agenda
www.regionaltvmarketing.com.au
RTM is the marketing bureau for Regional free to air TV
Regional TV covers all areas outside capital
cities and reaches 36% of
populationQLD
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
SydneyMelbourne
Reg NSWBrisbane
PerthReg QLDAdelaideReg VIC
DiaryWATAS
0m 1m 2m 3m 4m 5m
4,6354,528
3,4892,982
1,8561,764
1,4081,171
969585
510
People
Source: ATR & OZTAM 2011, Nielsen Media Research 2010
NNSW 2,079 SNSW 1,410
RTM website Google maps to regional submarket level
Regional TV maps have Wikipedia link for all towns
Urbanisation and 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
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.
Population Increase: 2001 vs. 2011
Source: ATR & OZTAM 2011
Australian population moving North and to the coast. Over 25% growth in 10 years in some centres
SYD MEL BRI ADE PER NNSWSNSW VIC QLD TAS0%
5%
10%
15%
20%
25%
30%
35%
Metro +18% Regional East Coast (Aggs) +18%
National average
Lower housing cost is key factor in maintaining regional spending and attracting new arrivals
Sydney Melbourne
Brisbane Adelaide
Perth
6.4 6.3 4.6 4.6 4.6
NNSW SNSW
Victoria Queensland
Tasmania
Diary
4.6 3.7 3.2 4.0 3.9 2.9
House price vs. income multiple
Source: Residex median house price Jul - Sep 2010 & Roy Morgan Single Source 12 mths to Jun 2010
Highest income growth has been in regional – shift to white collar + resources
MarketsSep
2010Sep
2004%
Change
Regional aggregate markets
$93,560 $66,100 +42%
Rural markets $99,280 $67,730 +47%
Metro markets $105,750 $79,090 +34%
Average Household Income 2010 vs. 2004 for P25-54
Roy Morgan Single Source 12 mths to Sep 2010 & Sep 2004
Regional people start their family life younger and
have more children
Source: Roy Morgan Single Source (12mths to September 2010)
Women 25-39 Metro Regional
Employed full/part time 67% 61%
Married/De facto 67% 67%
HHI $100k + 28% 28%
Children in the household 60% 70%
2+ kids 39% 49%
3+ kids 14% 21%
Regional new car buyers slightly
older, more likely to be retired
empty nester
Source: Roy Morgan Research (12 months to Sep 2010)
Profile: New car buyers Metro Regional
Average age 51yrs 54yrs
Male:Female 50:50 49:51
Already retired 21% 29%
Children in household 33% 27%
Household income $100K+ 36% 32%
Own home outright 46% 49%
2+ cars in household 70% 69%
Brought a car in the last year 14% 16%
Why has regional spending been more stable and the
outlook more positive?
• Lower cost of living – less debt• Government investment in
infrastructure • High population growth driving
development and local economies• Resources growth impacting
many parts of regional: NSW, QLD, WA, SA.
Regional consumers’ willingness to spend remained very steady through GFC compared to metro volatility
2005 2006 2007 2008 2009 20100
100
200
300
400
500Metro Regional
Dollars allocated for spending from discretionary $1000
Source: foreseechange 2005 - 2010
$
Regional consumers have been increasing their saving for past 5 years: national mood now cautious
2005 2006 2007 2008 2009 20100
100
200
300
400
500
Metro Regional
Source: foreseechange 2005 - 2010
Dollars allocated for saving from discretionary $1000
$
Metro Regional0
10
20
30
40
50
60
70
80
90
100
5.9 7.3
40.4 42.7
29.0 24.5
24.8 25.7
Half of all Australians say they are able to spend on discretionary items ... no significant change YOY
% o
f Po
p.
No Worries “Few financial concerns being able to both save and buy what I want”Comfortable“Afford to spend on the extras that make life worthwhile”Getting By“Manage to meet expenses but nothing left over”Broke“Never seem to have enough money”
Source: foreseechange June 2010 & October 2010
Media landscape in regional markets is broadly similar to capital cities
P25-54Metr
oReg
Watch 2hrs+ TV per day 50% 58%Listened to any commercial radio
weekday 68% 62%
Accessed the internet 87% 83%
Watch daytime TV 73% 77%
Own digital TV at home 71% 74%
Whether subscribe to Pay TV* 28% 27%
Source: Roy Morgan Single Source 12 months to Sep 2010, *AGB NMR Panorama 12 mths to Dec 2010
Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI
SYD MEL BRI ADE PER NNSWSNSW VIC QLD TAS40
60
80
100
120
140
160
180164
104
98
7989
71 70
5361
70
Ind
ex
TV market CPM indicesNational average CPM P18+ = 100
Source: Regional TV Agency Survey 2010
SYD19%
MEL19%
BRI12%
ADE6%
PER8%
Reg36%
SYD34%
MEL21%
BRI12%
ADE5%
PER7%
Reg23%
Share of national population
Share of national TV
budget
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0m
$20m
$40m
$60m
$80m
$100m
$120m
$140m
$160m
$180m
$200m
0%
5%
10%
15%
20%
25%Total TV Spend Regional Share (%)
Regional TV currently gets 17% of $180M insurance category TV advertising spend
TV
Spe
ndR
egional Share
Source: Nielsen Media Research AdEx. (Jan – Dec For All Years)
17%
41%10%
22%
10%
APIAMETREGSYDMELBRI
10%7%
49%
34%
SuncorpMETREGBRIQLD
16%
29%
23%
32%
AAMIMETREGSYDMEL
26%
6%
42%
27%
GIOMETREGSYDNSW
Distribution of Suncorp Group insurance customers by brand: Over 40% from regional
AGB NMR Panorama 12 mths to Dec 2010
AAMI Insurance Australian
Pensioners In-surance Agency
Bingle.com
GIO Insurance
InsureMyRide
Just Car In-surance
Shannons Insurance
Suncorp In-surance
Suncorp Bank
Grand Total
12%
19%
10%
8%
1%
4%
20%
20%
13%
MTV % RTV %
Suncorp Group national spend and share into Regional TVSuncorp Group national spend and share into Regional TV
Period: January – December 2010
Category: Insurance
Total TV spend
$18.4m
$6.1m
$2.9m
$5.6m
$339k
$169k
$2.1m
$3.2m
$3.3m
$42.1m
Source: Nielsen Media Research AdEx Jan-Dec 2010
Car insurance advertising share of voice by market: Youi, Allianz, NRMA and AAMI dominant
SYD NSW MEL VIC BRI QLD ADE PER TAS WA/NT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% Other Youi P/L Suncorp Shannons NRMA Real Insurance GIO Apia Australian Insurance Allianz AAMI
Period: January to December 2010Source: Nielsen Media Research AdEx Jan-Dec 2010
$29.4m
$5.5m $18m $1.7m $12m $1.8m$4.2m$7.8m $197k $441kTotal $80.9m
Home/Content Insurance SOV by market
SYD NSW MEL VIC BRI QLD ADE PER WA TAS0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SGIO (WA) SGIC (SA) RACV RACQ RAC (WA) QBE NRMA Real Insurance HBF GIO
Period: January to December 2010Source: Nielsen Media Research AdEx Jan-Dec 2010
$2.6m $484k $2.4m $271k $1.2m $171k $318k $1.4m $108k $0 Total $9m
Regional customer satisfaction with
Suncorp Group insurance varies from
metro
Source: NMR Panorama (12mths to Dec 2010) *P25+ filter have insurance with named brand
Satisfaction above average to excellent Metro Regiona
lAAMI (NSW) 24% 19%AAMI (VIC) 32% 24%GIO (NSW) 17% 15%GIO (VIC) 7% 6%
Suncorp (QLD) 22% 31%APIA 7% 10%
Source: NMR Panorama (12mths to Dec 2010)
P25-54:Most important issue… Metro Regional
Hassle Free 12% 13%
Security of dealing with large co. 12% 9%
Good Prices 38% 37%
Being paid what I am owed 27% 30%
Regional insurance customers want a balance of price and service
Regional man is more likely to be a car
enthusiast
Profile: Men 30+ Agree/ strongly agree… Metro Reg
Look for thing increase car performance 21% 25%
Work on my car myself 22% 29%
Consider myself a bit car enthusiast 26% 29%
Would buy an Aust Car if could 40% 46%
Need car that can tow a load 27% 41%
Really love to watch Top Gear 13% 12%
Source: *Roy Morgan Single Source 12 months to Sep 2010, AGB NMR Panorama 12 mths to Dec 2010
Hearts & Minds: Corporate responsibility is important to regional people
Consumer activistsAgree… Metro Regiona
l
I make active decisions to buy products from ethical companies 47% 49%
I avoid products from companies who are unethical overseas 85% 91%
I would pay extra for products from a company that helps the community 80% 88%
I prefer to buy Australian made 75% 83%
Creating a regional voice for a financial services brand will improve preference, loyalty and cut through
• True local (Newcastle Permanent)
• 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)
• News & current affairs• Local TV ads• Promotions • Community sponsorships
Regional TV is part of the community… “We live here
too”
www.regionaltvmarketing.com.au
Local content reel…
• Invest in regional variations in TVC’s: Product offer, imagery, customer profile.
• Promote existing local community support or develop appropriate programmes
• Increase regional media dominance: Share of voice, news and programme sponsorship and content development
Higher cost efficiency of RTV allows opportunities to create customised communications strategies not possible elsewhere
• Up to 40% of customers are in regional• High cost efficiency of advertising improves
national marketing ROI• Opportunities to increase satisfaction and
loyalty through localised strategies• Competitors are increasing regional
targeting in markets of greatest opportunity
Regional markets are essential to success and growth in for Suncorp Group brands
www.regionaltvmarketing.com.au
David Chalke social researcher….
The Great Divide
ExperientialInternationalLibertarian
ExperientialInternationalLibertarian
PracticalCommunitarian
Self Reliant
PracticalCommunitarian
Self Reliant
Upwardly MobileMaterialist
Family Focused
Upwardly MobileMaterialist
Family Focused
PragmaticFunctionalPatriotic
PragmaticFunctionalPatriotic
YouthfulTechnological
Energetic
YouthfulTechnological
Energetic
ConservativeInstitutional
Self-Controlled
ConservativeInstitutional
Self-Controlled
InnerMetro23%
Outer Metro41%
Regional36%
New digital FTA had higher share of viewing than pay TV in late 2010…before launch of 11
STV share of all people
13.3%Digital FTA TV share of all people
14.3%
Source: RegTam survey 10.