NZME DIGITAL OVERVIEW – NOVEMBER 2018

NZME DIGITAL OVERVIEW – NOVEMBER 2018

GLOBAL INTERNET USERS HAVE NOW PASSED THE FOUR BILLION MARK SOURCE: The Global Digital Report 2018 (we are social)

MEDIA LANDSCAPE TIMELINE Nearly two hundred years ago we saw the first newspapers published – to this day they still form an important part of media. Between the 1830’s to 1960’s billboards, Radio and Television were introduced, then came the internet and the acceleration of technology. As the older millennials were hitting their young adult years, the technology evolution got kick started with the launch of google in 1998….

The reliance on mobile phones has caused some (most) people THE CRITICAL YEARS FOR TECHNOLOGY Between 1998-2007 there were numerous platforms and technologies released. Today, we cannot imagine life without them. GOOGLE started in 1998 and since then we have witnessed a technological revolution, which is still changing at an exponential rate. Wi-Fi – would you choose a hotel without free internet? iPod/iTunes – would you travel without music? Phones with Camera – do you go on holiday with a camera or your phone? The release of the iPhone impacted the world, to the point that we now rely on a handheld device for most things, and many of us might admit that we cannot live without it. 1998 2000 2001 2003 2002 2004 2005 2006 1999 2007 The reliance on mobile phones has caused some (most) people to develop….

NOMOPHOBIA [noh-muh-foh-bee-uh] An abnormal, irrational fear of being without one’s mobile device, or of being unable to communicate using one’s mobile device.

Messenger Video Calling THE LAST TWO YEARS It’s hard to keep up with the fast-paced nature of technology nowadays. In the last 2 years, there have been countless tech moments that continue to shape our world and the ways in which we interact. Messenger Video Calling No need to sign up for a separate calling APP, all your friends are a click of a button Facebook Live Pokemon Go Messenger App A preferred way to message friends over text messaging Instagram Stories Share a moment in time with friends, that will then disappear in 24 hours Snapchat discover Facebook stories Snap Maps You got ‘snapped’ track your friends where ever they will go Uber EATS No more takeaway menus - ‘laziness’ has become more efficient 2015 2016 2017 Virtual Reality A new way to ‘game’ – the world just got infinitely bigger

9 IN 10 NEW ZEALANDERS ARE NOW INTERNET USERS SOURCE: The Global Digital Report 2017 (we are social)

NZ: MEDIA CHANNELS USED IN THE LAST 24 HOURS 76% are on Social Media channels 48% are watching videos 27% are listening to music 30% are watching free or paid TV 42% have read or views online news Source: Nielsen CMI Fused July 18 Q3 2017 – Q2 2018. *Doesn’t include Email

AUDIENCES ARE NOW MORE DISTRACTED – LIVING MULTIPLE ONLINE LIVES! A typical modern audience – watching online video or listening to the radio, whilst reading/researching online, catching up on social media, browsing the newspaper.

HOW DO WE TARGET THEM? Video (smart TVs) Radio Social Media Print -Facebook, Twitter, Instagram across all our news, sport and entertainment brands Online -Grabone, Restaurant Hub, RateBroker, Driven, Bite, Viva, nzherald.co.nz, Radio websites, Spy, WatchMe, Chinese Herald and our NZH & iHeart APPs Radio -ZM -The Hits -Hauraki -Coast -Flava -Newstalk ZB -Radio Sport -iHeart Radio Video (smart TVs) -WatchMe -Herald Focus -Herald Features -Video content throughout our brand websites Print -The NZ Herald (North Island) -The NZ Herald NIMs -Regional Newspapers (North Island) -Print partnerships (ODT) -NZME Communities

Nearly a third are reading the Newspaper mid-morning THE CONSUMER JOURNEY IN NZ Online is the most popular media across the day, peaking in the evening, with a total of 72% using the internet between 6pm-8pm TV is popular in the evenings, however when watching their favourite programme, the target audience are using other media – i.e. texting friends or going online Radio is the 2nd most popular morning media, reaching over 40% during the morning commute Nearly a third are reading the Newspaper mid-morning Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018

ONLINE CONSUMPTION IN NZ Social Media is the most popular online media across the day, peaking in the morning with fairly consistent use across the day. Reading News online plays an important role online in the morning, for some replacing newspapers and TV to get their updates. With kiwis now having a subscriptions to Netflix or other similar services, we have seen online TV/Video rise. Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018

CONSIDERATION FUNNEL: MULTI TOUCHPOINT

AN EFFECTIVE INTEGRATED APPROACH Brand development We’ll take existing brand advertising , assets and partnerships and build upon these to grow the brand in New Zealand via an effective, integrated approach. Engaging content Relevant content is the inspiration, conversation starter and problem solver. It earns permission to engage and convert your audiences.  We will develop custom created NZ content which offers a value exchange Experiences We will give the target audience more opportunity to engage with the  brand deepening the consumer relationship Lead Generation After experiencing the brand the target audience has given permission to communicate to them in a targeted way. Advocacy & Loyalty Lead conversations, connects and inspires trust & action

FOCUS ON NORTHLAND – NOVEMBER 2018 NZME REGIONAL DIGITAL FOCUS ON NORTHLAND – NOVEMBER 2018

151,000 people live in northland NORTHLAND AUDIENCE Overview 151,000 people live in northland 53% are home owners and about a third are renters Average household income is $84,100. 38% identify as Māori –higher than overall NZ population 41% are over 55, and the average age is 48 – compared to 44 across the country Key Industries in the Northland are: Agriculture & Farming Horticulture NZ’s only oil refinery SOURCE: Nielsen CMI Fused Q2 17 - Q1 18 May 18 TV/Online - NZME. *Northland

NORTHLAND AUDIENCE Cultural identity 57,000 people live in THE NORTHLAND area identify as MĀORI Compared to the rest of the country, Northland has 24% more people who identify as Māori. Northland has 17% less people who identify as Pacific Islander, Asian and ’Other’ ethnicities. Tend to be younger, 20% are dependent children and 30% are independent young adults 63% live in households with children (15% higher than overall Northland population) Almost half speak te reo Māori at home 4 out of 5 believe NZ should make sure it keeps its Māori culture and grow the Māori language SOURCE: Nielsen CMI Fused Q2 17 - Q1 18 May 18 TV/Online - NZME. *Northland

NORTHLAND AUDIENCE Lifestage breakdown INDEPENDENTS 28,000 60% Female Average HHI $78,000 42% are in paid employment In the next 12 months: 68% intend to study tertiary level 43% will buy a car 43% will travel overseas OLDER FAMILIES 30,000 61% Female Average HHI $117,000 15,000 homeowners have no mortgage They love radio, with over half listening to it for more than 7 hours Spend more time on leisure activities with their kids YOUNG FAMILIES 22,000 53% Female Average HHI $97,000 57% are home owners Main household shoppers 4 out 5 research online Prefer to shop online as it suits their busy lifestyle EMPTY NESTERS 52,000 57% Male Average HHI $65,000 They are retired (48%) or planning their retirement 71% are home owners without mortgage They have more time and disposable income than ever SOURCE: Nielsen CMI Fused Q2 17 - Q1 18 May 18 TV/Online - NZME. * Northland

NZME reach 90% of those based in Whangarei MEDIA CONSUMPTION NZME REACH 122,000 81% OF KIWIS IN NORTHLAND NZME RADIO REACH – 37% NZME PRINT REACH – 52% NZME DIGITAL REACH – 47% NZME reach 90% of those based in Whangarei Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018 *Northland

THE CONSUMER JOURNEY IN NORTHLAND Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018 *Northland

ONLINE CONSUMPTION IN NORTHLAND Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018 *Northland

THE NORTHERN ADVOCATE Digital Audience The Northland Advocate newspaper reaches 59,000 people across a week, and 34,000 people in Whangarei alone + Northland Age Monthly Unique Audience* for nzherald.co.nz/northern-advocate -105,000 Average Weekly Unique Browsers** for nzherald.co.nz/northern-advocate -41,800 Average Weekly Page Impressions** for nzherald.co.nz/northern-advocate -129,200 No readership numbers due to low sample sizes Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018 *Northland *SOURCE: Nielsen Online Ratings Sept 18 **Nielsen Market Intelligence Domestic Traffic Sept 18

NORTHLAND RADIO AUDIENCE 12,800 7,400 3,000 5,400 6,300 4,800 10,800 9,800 51,700 sessions in the Northland Source: GfK, RAM, Commercial Radio Stations, Total 3/2018, M-S 12mn-12mn, Cume *iHeart AdWizz Sept 2018

The Northern Advocate – 59,000 NZME REACH EXAMPLE + Radio Reach + Digital Reach Print Reach 64% of Kiwis based in Northland The Northern Advocate – 59,000 + Coast & Mix 71,000 + nzherald.co.nz 96,000 Source: Nielsen CMI Fused Aug 18 Q3 2017 – Q2 2018 *Northland

APPENDIX