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

1.4 million people live in AUCKLAND AUCKLAND AUDIENCE Overview 1.4 million people live in AUCKLAND Compared to the overall NZ population, people in Auckland are less likely to be home owners (55%) and are more likely to be renters (40%) Average household income: $122,100 – 21% higher than outside Auckland Only 55% were born in NZ – 15% lower than overall NZ population Auckland is young city. Half are under 44 years old, and the average age is 42 – compared to 46 across the rest of the country Key Industries in the Auckland are: Education & Training Prof, Scientific & Technical Services Manufacturing SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Oct 18 TV/Online - NZME. *Auckland

AUCKLAND AUDIENCE Cultural identity Compared to the rest of the country, Auckland has 35% less people identifying as European/New Zealander. It has more than twice as many people identifying as Pacific Islander, Asian and ’Other’ ethnicities. Nearly half of Auckland’s population are of non-European/New Zealander ethnicity 65% of the country’s Asian population and 68% of the Pacific Islander population live in Auckland SOURCE: Nielsen CMI Fused Q2 17 - Q1 18 May 18 TV/Online - NZME. AP10+ Auckland vs Rest of NZ (multiple choice question)

AUCKLAND AUDIENCE Lifestage breakdown INDEPENDENTS 367,000 56% Male Average Age 26 Average HHI $128,000 72% are in paid employment In the next 12 months: 47% will buy a car 51% will travel overseas OLDER FAMILIES 307,000 51% Female Average Age 55 Average HHI $143,000 23% homeowners with no mortgage Spend more time on leisure activities with their kids YOUNG FAMILIES 315,000 55% Female Average Age 37 Average HHI $123,000 54% are home owners Main household shoppers Prefer to shop online as it suits their busy lifestyle EMPTY NESTERS 283,000 57% Female Average Age 69 Average HHI $88,000 They are retired (65%) or planning their retirement They have more time and disposable income than ever SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Oct 18 TV/Online - NZME. *Auckland

NZME REACH 1,237,000 86% OF KIWIS IN AUCKLAND MEDIA CONSUMPTION 44% NZME RADIO REACH – 44% NZME PRINT REACH – NZME DIGITAL REACH – 71% SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Oct 18 TV/Online - NZME. *Auckland

THE CONSUMER JOURNEY IN AUCKLAND SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Sept 18 TV/Online - NZME. *Auckland

ONLINE CONSUMPTION IN AUCKLAND SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Sept 18 TV/Online - NZME. *Auckland

THE NEW ZEALAND HERALD Digital Audience The New Zealand Herald newspaper reaches 581,000 people across a week, and 534,000 people in Auckland City alone Monthly Unique Audience* for nzherald.co.nz -1,566,000 Average Weekly Unique Browsers** for nzherald.co.nz -3,320,800 Average Weekly Page Impressions** for nzherald.co.nz -22,144,400 Source: Nielsen CMI Fused Sept 18 Q4 2017 – Q3 2018 *Auckland *SOURCE: Nielsen Online Ratings Sept 18 **Nielsen Market Intelligence Domestic Traffic Sept 18

AUCKLAND RADIO AUDIENCE 141,500 95,300 157,600 59,100 116,100 51,200 218,000 57,400 1,139,200 sessions in Auckland Source: GfK, RAM, Commercial Radio Stations, Total 4/2018, M-S 12mn-12mn, Cume *iHeart AdWizz Sept 2018

The New Zealand Herald – 581,000 NZME REACH EXAMPLE + Radio Reach + Digital Reach Print Reach 77% of Kiwis based in Auckland The New Zealand Herald – 581,000 + NTZB & ZM 756,000 + nzherald.co.nz 1,105,000 SOURCE: Nielsen CMI Fused Q4 17 – Q3 18 Oct 18 TV/Online - NZME. *Auckland

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