Education & Training market Briefing notes and sales support for news media sales teams

What’s in this deck? This deck is split into two sections: Section 1 An overview of the Australian Education & Training market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section one provides some key industry insights on the Education & Training sector. The information contained in this section won’t make you an instant expert but it will help get you up to speed on some important facts about each category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Section two contains research about how news media can help education & training providers engage with key target markets.

Section 1 Education & Training market: An overview Training & Education industry includes both public and private providers: formal (primary, secondary and tertiary general and vocational education), non‑formal (on‑the‑job training, voluntary education, self‑guided learning and learning provided by companies, organisations, networks in structured contexts).

Education & Training: Industry snapshot $118.7 billion Revenue 5.6% Annual growth rate (2015-16) 5.1% Annualised increase over the fives years through 2011-16 $3.6 billion Profit The Training & Education Industry revenue for 2015–16 is projected to total $118.7 billion, an increase of 5.6 per cent from the previous year and an annualised growth rate of 5.1% over five years through to 2016. Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: A growth industry The Education & Training sector has grown strongly over the past five years on the back of solid demand and higher government funding. Revenue Growth Year Revenue $ million Growth % 2010-11 92,600.2 2.3 2011-12 98,040.9 5.9 2012-13 101,704.6 3.7 2013-14 105,998.1 4.2 2014-15 112,387.5 6.0 2015-16 118,670.2 5.6 Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: Major markets A breakdown of the revenue derived from major market segments as a percentage of total industry revenue shows domestic students aged five to 14 are the largest contributors, accounting for 46% of revenue, while domestic students aged four and under make up just 3.5%. Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: Services segmentation Government Schools is the largest services segment operating in the Education & Training industry, while the Sports Instructors segment is the smallest. Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Key Drivers of Growth Key Drivers: Population growth and an increase in the secondary school retention rate. Changes to government policy and an increase in funding. Increased demand for private school education. Increased international student enrolments. The number of foreign students increased by an estimated 10.6% over 2014-15. Growth in domestic demand for education is mainly attributable to population growth, particularly among those aged five to 25 years. However, the division’s expansion has outstripped population growth over the past five years due to more government funding, government policies that have stimulated demand for preschool and university education, and faster enrolment growth in private schools compared with public schools. Demand for tertiary education has also increased, as people look to upskill to gain an advantage in a competitive job market. International enrolments have also rebounded due to the depreciation of the Australian dollar and changes to student visa regulations. Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: Industry Outlook Australia’s education sector is one of the most concentrated areas of growth within our economy.  Revenue Outlook Education & Training sector revenue is expected to continue performing strongly, increasing at an annualised 4.5% over the five years through 2020-21, to reach $147.8 billion. Compared with Australian GDP growth of 2.6% annualised over the same period. This suggests that the division is growing at a faster rate than the overall economy. Year Revenue $ million Growth % 2016-17 127,523.6 7.5 2017-18 134,755.7 5.7 2018-19 139,641.8 3.6 2019-20 143,848.0 3.0 2020-21 147,816.9 2.8 Sources: Deloitte, Positioning for prosperity, 2014. IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: Industry Outlook cont. The performance of the Education & Training industry will continue to be influenced by changes in government funding and policy, and demographic and labour trends Demographic trends: The population aged between five and 18 is forecast to grow at a faster rate over the next five years leading to strong increases in demand for primary and secondary schools. Government funding and policy: Funding to primary, secondary and university education is expected to increase at a faster rate than the previous five years. A shift in the tertiary education subdivision towards a demand-driven model will propel growth, particularly at universities due to uncapping of the number of Commonwealth-supported places available. International enrolments: The anticipated depreciation of the Australian dollar over the next five years is expected to boost demand from international students. Staffing issues: Increasing numbers of private tertiary education providers and reform to preschool education is expected to compound the shortage of qualified personnel. Source: IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Education & Training: Competitive landscape Internal competition Competition between government and private schools is set to increase due to higher household discretionary income, increased marketing by private schools and a perception that private schools provide higher quality education. The demand-driven system introduced in 2012 is expected to continue to help level the playing field in post-school education by reducing price-based competition between operators. Competition is stiffening between vocational education providers and universities as TAFEs aggressively market their degree programs. However, the uncapping of university places over the past five years has led to some students studying at university that would have otherwise studied at TAFE. External competition Some higher education industries face increased pressure from global universities as online courses gain popularity. Tertiary education providers face competition from international organisations for international students. Sources: Deloitte, Positioning for prosperity, 2014. IBISWorld, Industry Report P: Education & Training in Australia, January 2016.

Section 2 Support slides for sales presentations

About these slides The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive course uptake, and to show how News media can help to influence the decision process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements. Recap client/agency brief Live sport industry support slides Client specific analysis Recommendations

News media hit key Education & Training segments emma data shows News media reaches consumer segments most likely to respond to Education & Training provider messaging News media reaches 92% of parents of school or preschool aged children – a key market for child education providers. 2.1 million readers with pre-school aged children aged 1 – 4. 3.4 million readers with primary school children aged 4 – 12. 2.7 million readers with high school children aged 13-17. Major target markets for high school and higher education are engaged with news media. 2.6 million readers aged 14 – 24. 5.7 million readers aged 25-44. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. Figures:: readers of News media in the last four weeks.

Our audiences value training and education News media audiences place great importance on quality Education & Training 6.3 million or 95% of tertiary educated Australians read news media 12.1 million or 93% of people who think ‘a formal education is vital to success in life’ read news media 61% of news media readers think ‘public schools are as good as private schools’ 14.7 million or 89% of the news media audience think ‘learning a trade is just as valuable as a university education’ Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. Figures:: readers of News media in the last four weeks.

Reach quality educators with news media Recruitment of quality education professionals will be an on-going issue in coming years as demand for Education & Training services increase. News media is a effective way to engage with in-demand, quality education professionals: News media reaches 609,000 or 97% of education professionals. 52% of education professionals read 3+ print newspapers every week. 524,000 or 83% of education professional are engaged with digital news media. Education professionals are 13% more likely to be heavy newspaper readers (7+ issues per week) than the average Australian. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. Figures:: readers of News media in the last four weeks.

News media audiences invest in education News media is a effective way to engage with top grade Education & Training consumers News media reached nine in ten of the top 20% of consumer spenders on education. Readers of print newspaper education sections are 26% more likely to be in the top 20% of consumer spenders on Education & Training fees. 1.6 million or 92% of the news media audience took part in a short course or seminar in the last three months. Readers of newspaper education sections are 56% more likely to have a attended a short course or seminar than the average Australian. Readers of national news media are 47% more likely to have a attended a short course or seminar than the average Australian. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

Newspapers offer Universities exceptional reach Gen Y (those aged 23-34) are the best educated generation in history with over 50 percent completing a tertiary course. News media has high penetration rates among professionals, providing universities with a direct channel to a key target market. More than nine in ten (96%) of managers and professionals in Australia engaged with news media in the last month. Forty per cent read a Business or Finance section in print in the same period. For universities targeting prospective students, many take advantage of the exceptional reach of print across each state and rely on metropolitan newspapers to cut through the noise. Universities can reach those actively considering a tertiary education in dedicated editorial supplements, careers pages, and The Australian’s respected Higher Education section published on Wednesdays. Local newspapers provide an additional dimension, especially because so many young Australians like to study in their home city. Some 7 million Australians read a regional or community newspaper each month, and local area marketing in these publications can increase ad visibility dramatically. Many readers rely on local newspapers to highlight services, including education opportunities, in their area. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

Newspapers: The perfect platform Newspapers provide Education & Training marketers with the time and space to tell their story The variety of Education & Training courses on offer presents a communications challenge. While it is important to maintain a consistent brand, Education & Training marketers must also convey the nuances and benefits of a range of courses across the social spectrum of potential students. Newspapers provide the perfect platform for Education & Training providers to showcase their services. They’re ideal for providing detailed information, in a highly engaging environment, where readers have the time to properly digest it. Newspapers offer Education & Training providers exceptional reach

94% 77% 71% Newspapers are also digital Print Digital The combined reach of print and digital news media: 94% of people who believe education is vital to success in life Print Digital Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

Education sections connect with audiences Every month 659,000 prospective students read a newspaper Education section Education & Training providers can reach those actively considering a Education & Training courses in dedicated editorial supplements, careers pages and Higher Education sections. This is a huge pool of highly engaged readers, and prime advertising territory. This is especially true for Education & Training providers who understand that gaining the maximum benefit from their advertising investment in an increasingly competitive industry requires creating relevant ads that put their brand in front of prospective students and their parents. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.