Unilever Regional TV Effectiveness Review April 2011.

UnileverRegional TV Effectiveness Review

April 2011

www.regionaltvmarketing.com.au

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

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

Population Increase: 2001 vs. 2011

Source: ATR & OZTAM 2011

Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas

MARYB

MACKA

YBRIS

NOR RIV

CAIRNS

TOW

NS

PERTH

ROCK

TOOW

CANB

GIPPS M

EL

TAM/T

AR

ALBURY

WOLL

BALLSY

DADEL

NEWC

HOBART

BEND

LAUNCE

SHEP

P

O/D/W

0%5%

10%15%20%25%30%35%40%45%

National average

QLD NSW VIC TAS METRO

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)

% of people 25-54 Metro Regional

Employed Full Time 56% 53%

Employed Part Time 23% 22%

Household Income $80K+ 41% 42%

More than one income in household 64% 58%

Children in household 50% 52%

Own or Paying Off Home 59% 61%

Regional consumers have similar

demographic profile to metro

Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-100%

5%

10%

15%

20%

25%Metro Regional

People 18-54 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

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%

www.regionaltvmarketing.com.au

According to David Chalke social

researcher….

Regional GB’s have higher purchasing in all Unilever food segments…

Main Grocery BuyerPurchased… Metro Regiona

l

Tea L4W 52% 54%

Margarine L4W 45% 55%

Ice Cream L4W 31% 34%

Pasta Sauces L4W 38% 41%

Soups L4W 27% 29%

Meal bases in packets/sachets L4W 16% 19%

Source: Roy Morgan Single Source (12mths to Dec 2010)

…and in most household and personal care

segments too

Main Grocery BuyerPurchased… Metro Regiona

l

Liquid Hand Wash/Soap L4W 34% 34%

Deodorant P6M 70% 74%

Shower Gel/Body Wash P6M 28% 29%

Shampoo and conditioner P6M 57% 62%

Laundry powder P3M 55% 61%

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 2008. 34% of sales in regional markets

SYD

BRI

PER

VIC

TAS

$0.0m $5.0m $10.0m $15.0m $20.0m $25.0m $30.0m $35.0m

27,375

28,662

19,768

7,539

10,056

20,151

7,624

11,529

3,362

5,633

Total Rexona sales: Sept 2007 to July 2008

19.3%

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 10,814 SNSW 9,338

Rexona No.1 brand in all markets – regional share slightly higher in QLD,VIC & SNSW

SYD

MEL BR

IAD

EPE

R

NNSWSN

SW VIC

QLD TAS

SA/W

A0%

10%

20%

30%

40%

50%

60%

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 2Ix

Source: Scan Data (4 W/E 9/9/07 to 13/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

Rexona 2008 Sales

2008TV $ ROI

Metro $54m $1.8m $3.00

Regional $28m $419k $6.68

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

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

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

Women aged 18-39 Metro Reg

Watch 2hrs+ TV per day 49% 60%Listened to any commercial radio

weekday 65% 66%

Accessed the internet 85% 86%

Watch daytime TV 71% 74%

Own digital TV at home 85% 90%

Whether subscribe to Pay TV* 24% 23%

Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010

13/06/2010

27/06/2010

11/07/2010

25/07/2010

8/08/2010

22/08/2010

5/09/2010

19/09/2010

3/10/2010

17/10/2010

31/10/2010

14/11/2010

28/11/2010

12/12/2010

26/12/2010

9/01/2011

23/01/2011

6/02/2011

20/02/2011

6/03/2011

20/03/20110%

5%

10%

15%

20%

25%

Metro Regional

Launch week of 7mate &

Gem

Launch week of Eleven

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 18:00 - 23:59

June 2010 Sept 2010 Dec 2010 March 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

www.regionaltvmarketing.com.au

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