Pacific Brands Regional TV Effectiveness Review November 2011

RTM is the marketing bureau for Regional free to air TV

Regional markets justify first choice selection for Pacific Brands media investment Regional women are better off, have more kids, buy more of Pac Brands products and have higher usage of key retail channels Regional men are far more likely to buy work wear Regional spending outlook is better than metros Regional TV is 40% more cost efficient than metro TV and is guaranteed to deliver higher ROI

Regional TV covers all areas outside capital cities and reaches 36% of population QLD 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: 19% of total regional population Regional WA Port Pirie/ Broken Hill Satellite Griffith Mildura Darwin Loxton/Mt Gambier

Populations of major regional TV markets are comparable with the metros People Source: ATR & OZTAM 2011, Nielsen Media Research 2010 NNSW 2,079SNSW 1,410

Population Increase: 2001 vs Source: ATR & OZTAM 2011 Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas National average QLDNSWVICTASMETRO

Urbanisation and high 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

3 % 7 live in Regional TV markets Source: OzTam AGB Nielsen ,573,000 Australian teens age 13-17

3 % 8 live in Regional TV markets Source: OzTam AGB Nielsen ,547,000 Australian GB’s with children 5-12

3 % 9 Source: OzTam AGB Nielsen ,141,000 Australian 55+ live in Regional TV markets

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.

Regional women are more likely to live in a house and have bigger family Source: Roy Morgan Research (12 months to June 2011)

Younger regional women are 40% more likely to have two or more kids and have higher income Source: Roy Morgan Research (12 months to June 2011)

Source: Roy Morgan Single Source (12mths to June 2011), * Filter – Bought Clothing in past 4 weeks Regional buying in Pac Brands categories is same or stronger than metro

Big difference in regional retailing is higher use of mass retailers and lower department store Source: Roy Morgan Single Source (12mths to June 2011), * Filter – Bought Clothing in past 4 weeks

Regional mum’s show the same preference for mass retailers Source: Roy Morgan Single Source (12mths to June 2011), * Filter – Bought Clothing in past 4 weeks

New regional mums are most likely to shop online Source: Roy Morgan Single Source (12mths to June 2011), * Filter – Bought Clothing in past 4 weeks

Hard Yakka: Regional young men are almost twice as likely to be tradie or labourer % of M18-39 who work as a Tradesperson/Labourers Source: Roy Morgan Single Source (12mths to June 2011)

43% of all Oz tradies live in Regional TV markets – regional NSW a bigger market than Melbourne 000s of M18-39 who work as a Tradesperson/Labourers Source: Roy Morgan Single Source (12mths to June 2011)

Regional young men shopping in KMart and online – key channels for Hard Yakka Source: Roy Morgan Single Source (12mths to June 2011), * Filter – Bought Clothing in past 4 weeks

News & current affairs Local TV ads Promotions Community sponsorships TV plays a greater role in regional life…it’s part of the community

Watch TALKING REGIONAL VIDEO FROM RTM

Reg. TV CPM is 40% below national TV average CPM Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2010

Share of national population Share of national TV budget for equal weight campaign Lower regional CPM means regional TV needs only 23% of national budget to reach 36% of population

Free TV multi-channels are more popular in regional – higher penetration and desire for choice Source: Mediaweek, Metro data from OzTAM C1 and Regional data from Regoional TAM. All People 18: :59 June 2010Sept 2010Dec 2010March 2011June 2011Sept 2011

Media landscape in regional markets is broadly similar to capital cities – outdoor lower Source: Roy Morgan Single Source (12mths to June 2011)

Regional consumers’ willingness to spend grew this year by 9% – against national trend Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey Spending per discretionary $1000

Home price to income ratio is significantly lower in regional TV markets House price vs. income multiple Source: Residex median house *(includes apartment price) Jan – Jun 2011 & Roy Morgan Single Source 12 mths to March 2011

Average household incomes in regional TV markets are within 10% of national average Source: Roy Morgan Single Source (12mths to Mar 2011 ) P25-54: Average household Income

Incomes in regional and rural Australia are growing well above the national average Average household income growth since 2004 (P25-54) Source: Roy Morgan Single Source (12mths to Mar 2011 – 2004 )

Regional consumers are more optimistic about their current financial outlook… …and are more likely to spend on discretionary items over the coming year.

Regional markets justify first choice selection for Pacific Brands media investment Regional women are better off, have more kids, buy more of Pac Brands products and have higher usage of key retail channels Regional men are far more likely to buy work wear Regional spending outlook is better than metros Regional TV is 40% more cost efficient than metro TV and is guaranteed to deliver higher ROI