1. Automotive market Briefing notes and sales support for newspaper media sales teams

2. This deck is split into two sections: Section 1 An overview of the Australian automotive 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 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the 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 2 contains research about how consumers buy cars, and the contribution newspaper media makes in the decision process. What’s in this deck?

3. Section 1 Automotive market: an overview

4. Auto industry: total sales In 2014 car manufacturers sold 1.1m new cars –Volume for the top 10 companies was down 5% YOY –Toyota tops the rankings, followed by Holden, Mazda, Hyundai and Ford 2015 sales YTD are up 2.5 per cent on STLY Top 10 manufacturers (by sales volume, rounded to nearest 000): RankBrand20142013% diff 1Toyota204,000215,000-5.2 2Holden106,000112,000-5.3 3Mazda101,000103,000-2.4 4Hyundai100,00097,0003.1 5Ford80,00087,000-8.6 6Mitsubishi69,00072,000-4.0 7Nissan66,00077,000-14 8Volkswagen55,000 -0.2 9Subaru41,00040,0000.8 10 Honda33,00039,000-15.9 Source: FCAI,2014 new car sales results, www.fcai.com.au/news/index/index/year/all/month/all/article/379

5. Auto industry: key segments New vehicle sales dominated by –Passenger cars 48% of 2014 sales in 2014, but a declining percentage of total sales –SUVs 32% of 2014 sales, rapidly increasing in popularity –Light commercial vehicles 17% in 2014, also increasing in popularity Source: FCAI,2014 new car market, www.fcai.com.au/Sales/2014-new-car- market

6. Auto industry: top selling models Top 10 individual models (by sales volume, rounded to nearest 000): RankVehicleSegment20142013% diff 1Toyota CorollaPsgr car44,00043,0000.5 2Mazda3Psgr car43,00042,0002.9 3Toyota HiluxLt comm’l38,00040,000-4.5 4Hyundai i30Psgr car32,00031,0003.0 5Holden CommodorePsgr car30,00028,0008.8 6Ford RangerLt comm’l27,00022,00022.4 7Mitsubishi TritonLt comm’l24,00025,000 8Toyota CamryPsgr car22,00025,000-11.3 9Mazda CX5SUV22,00020,0007.2 10Volkswagen GolfPsgr car20,00018,0009.7 The most popular models are still mainly passenger cars –Four of the top 5 best selling models, and 6 of the top 10, are passenger vehicles –Three light commercial vehicles make the top 10 –Although SUVs outsell light commercial vehicles, only 1 SUV in the top 10 Source: FCAI,2014 new car sales results, www.fcai.com.au/news/index/index/year/all/month/all/article/379

7. Auto industry: big spenders on main media 5 of the top 20 largest advertisers in 2014 were car companies BrandTotal AdexRank Toyota$82m7 th Mitsubishi$54m12 th Mazda$47m13 th Holden$45m16 th Hyundai$43m17 th Source: Ebiquity, 2014 Advertisers Report

8. Auto industry: big spenders on newspapers And 14 of the top 50 newspaper advertisers BrandNewspaper Adex Rank Toyota$30m5 th Mitsubishi$16m14 th Mazda$13m16 th Volkswagen$45m16 th Nissan$43m18 th Hyundai$12M19 th Mercedes-Benz$10m20 th Source: Ebiquity, 2014 Advertisers Report BrandNewspaper Adex Rank Ford$7.7m32 nd Audi$7.6m33 rd Lexus$7.3m36 th BMW$6.6m39 h Land Rover$6.2m41 st Suzuki$6.1m43 rd Honda$5.9m45th

9. Section 2 Support slides for sales presentations

10. 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 automotive sales, and to show how newspaper media can help to influence the sales 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. About these slides Recap client/agency brief Automotive industry support slides Client specific analysis Recommendations

11. The automotive market is intensely competitive Over 60 brands competing for 1.1 million new car sales/year

12. The marketing challenge: Consumers are spoilt for choice. So where do you start?

13. Start on the short list Most people buy a brand they considered before researching models and prices. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

14. It’s a very short list The average new car buyer only considers 3.9 models Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

15. “Despite the increase of online and mobile sources, traditional sources of research remain popular tools. Print media as an awareness and discovery mechanism is particularly popular among new car buyers with two-thirds (65%) using print resources at the awareness stage.” Source: The Nielsen Automotive Report 2012 Newspaper media influences initial consideration

16. …and continues to work at every stage of the purchase process From striking brand-building campaigns… …to offer-driven call-to-action retail

17. Newspaper media excels at reaching car buyers 820,000 People intend to buy a new car in the next year. 785,000 Potential buyers read newspaper media each month. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

18. 84% 79% In print and digital Print Digital The combined reach of print and digital newspaper media: 95% of new car buyers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

19. Readers are above average prospects Newspaper media readers are 61% more likely to buy a new car in the next year than non-readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

20. Readers use newspapers to help them buy Buyers turn to newspapers to help them when they’re buying a new car. Media most useful when buying a car Newspapers30% Magazines27% Television21% Radio4% Outdoor advertising3% Unaddressed mail or catalogues2% Cinema1% Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending May 2015

21. Automotive sections: high intention, high value Automotive section readers are high value new car prospects –83% more likely to buy than non-readers –Above average spenders: $41,500 vs $39,600 for non- readers

22. 72% of consumers spend over 2 hours/day on their mobiles. 75% research purchases on mobiles. Mobile readers are prime targets People who read newspaper media on mobile phones are 46% more likely to buy a new car in the next 12 months. Mobile newspaper media readership up 16% YOY. Sources: emma ™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending June 2015; Deloitte Media Consumer Survey 2015 – Australian media and digital preferences – 4 th ed.

23. Mobile critical for under 40s 58% of Millennials (born mid-80s – early 2000s) rank mobile as one of their top 3 devices. 34% of new car buyers 25 to 39 read newspaper media on their mobiles. Source: emma ™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending June 2015

24. 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.

25. About The Author Brian Rock, Research & Insights Manager at The Newspaper Works, is a media research professional with more than 30 years experience in the advertising, marketing and media industries. Prior to joining The Newspaper Works he spent 11 years at Network Ten as Strategic Insights Manager, and three years as Research Director at Mitchell Media Partners. He has also held account management positions at several leading advertising agencies, including George Patterson Bates and Saatchi & Saatchi, as well as six years in academia, lecturing in advertising and marketing at Melbourne's RMIT University. For more information on this deck, please email brianrock@thenewspaperworks.com.aubrianrock@thenewspaperworks.com.au