Lloyds TSB builds mortgage business through local press advertising

Background As one of the UK’s leading financial services groups, Lloyds TSB serves both urban and rural communities through a network of more than 2,000 branches, coupled with internet and telephone banking services. In a highly competitive market, Lloyds TSB set out to leverage local press to promote its lowest rate fixed term mortgage and new, full- term tracker mortgages. 62% of UK adults move home within a 5 mile radius - life is very local. Local press is second only to estate agents* as a channel for those looking for a property and, as such, is a totally relevant environment for mortgage advertising. Using a concentrated local press campaign in Wales and the West of England, Lloyds TSB communicated effectively to the local target audience and successfully delivered incremental mortgage applications in the region. *TNS/Consumers Choice V

The Campaign Lloyds TSB ran a 4 week campaign in June 2006 in Wales and the West region*, with fractional colour sizes (25x4 and 10x8) across 10 titles. Exeter Express & Echo, Plymouth Evening Herald, Bristol Evening Post, Gloucestershire Echo, The Citizen (Gloucester), South Wales Evening Post, Western Daily Press, Western Morning News, Bath Chronicle, Torquay Herald Express. Wales and West region *As defined by Lloyds TSB **Quantitative ongoing tracker used by Lloyds TSB The Research WoodHolmesGroup, an independent research company, conducted 19 in-depth face-to-face interviews in Bristol with key target audiences for Lloyds TSB Mortgages. The qualitative research explored the value of financial services advertising in the local press platform and took place in February The qualitative research complimented the Billetts Marketing Sciences mortgage sales analysis, which showed a very positive ROI based on media costs across the whole test region.

Unique audience engagement The qualitative research in Bristol emphasises the importance of the local titles for the whole community. Reading the local paper is integral to Bristol life with local titles being the most trusted and reliable source of local news and information. The news editorial is valued in the local paper and the information considered more relevant than other communications channels. And, there is a strong relationship between the reader and the local press medium. “ If I had to choose whether to read the same story in a local or national paper, I’d choose the local – I’d believe them more ” “ It’s got a more direct impact on you… ” “ You can relate to it more if it’s happening locally ” Local press provides a unique and powerful platform for national brands Shared brand & media values The local press platform provides a trusted environment for financial services advertising. The qualitative research showed that decisions around mortgages are more considered than other financial services and therefore require more information before any action is taken. “ Your mortgage is a big chunk of money so you need to get the best deal ” The connection between Lloyds TSB’s core customer proposition and local press core values ensured relevance and impact of communication.

Impact of national brands with a localised message Some of the key findings from the interviews show how national advertisers can maximise their communications message through local advertising. The local press platform benefits otherwise ‘remote’ national advertisers. The regional context implies regional perspective and involvement and reinforces messages elsewhere. “ It makes you trust them more. They’re obviously giving time to The Evening Post, local issues. ” “ If there was an ad in the Bristol Evening Post for a mortgage I would definitely take notice… ” “ I’d assume that advertiser was in the area, used to dealing with that area. ” The respondents also underlined the opportunity to increase impact by using a local message, making the advertising even more interesting and relevant. The highly valued Property and Personal Finance sections of the newspaper provide a natural alignment and targeted positioning for mortgage advertising. Named highlights of the paper from the interviews included the Property section, which supports the findings from the wanted ads research that found that nearly 1 in 3 UK adults read the property pages of a local newspaper

“Regional press was found to be an effective tool to drive sales for Lloyds TSB Mortgages. Lloyds TSB Research indicated that regional press has a very positive ROI which was reinforced by qualitative research undertaken by the Newspaper Society. The research highlighted that regional press provides both a trusted environment and suitable editorial for Lloyds TSB Mortgages. Such positive results mean regional press will certainly be considered in future campaigns for Lloyds TSB.” David Ace, planner, Zenithoptimedia “The Lloyds TSB test has clearly demonstrated the power and relevance of local press for the financial sector.” Robert Ray, marketing director, The Newspaper Society