Suncorp Group
Insurance
Regional Market
Review
March 2011
Agenda
• Benefits of RTV: Population, spending power,
demographics
• Media: Efficiency, investment levels
• Insurance brand regional focus
• Regionally focused communication strategies
• Digital TV multichannel opportunities
RTM is the
marketing bureau
for Regional free to
air TV
www.regionaltvmarketing.com.au
Regional TV covers
all areas outside
capital cities and
reaches 36% of
population
QLD
REG. WA
DIARY
NNSW
SNSW
VIC
TAS
Regional TV coverage
includes large cities
and fast growing
coastal suburbs
Gold Coast
Canberra
Newcastle &
Central Coast
Wollongong
& Illawarra
Diary markets: A diverse mix of urban
and rural
Darwin
Satellite
Regional WA
Mildura
Griffith
Port Pirie/
Broken Hill
Loxton/Mt
Gambier
Populations of major regional TV markets are
comparable with the metros
Sydney
Melbourne
Reg NSW
Brisbane
Perth
Reg QLD
Adelaide
Reg VIC
Diary
WA
TAS
4,635
4,528
SNSW 1,410 3,489
NNSW 2,079
2,982
1,856
1,764
1,408
1,171
969
585
510
0m
1m
People
Source: ATR & OZTAM 2011, Nielsen Media Research 2010
2m
3m
4m
5m
RTM website Google maps to regional submarket level
Regional TV maps have Wikipedia link for all towns
Urbanisation and 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
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.
Australian population moving North and to the coast.
Over 25% growth in 10 years in some centres
35%
30%
25%
20%
National average
15%
10%
5%
0%
SYD
MEL
BRI
ADE
Metro +18%
PER NNSW SNSW
VIC
QLD
TAS
Regional East Coast (Aggs) +18%
Population Increase: 2001 vs. 2011
Source: ATR & OZTAM 2011
Lower housing cost is key factor in maintaining
regional spending and attracting new arrivals
House price vs. income multiple
Sydney
Melbourne
Brisbane
Adelaide
Perth
6.4
6.3
4.6
4.6
4.6
NNSW SNSW
Victoria
Queensland
Tasmania
Diary
3.2
4.0
3.9
2.9
4.6
3.7
Source: Residex median house price Jul - Sep 2010 & Roy Morgan Single Source 12 mths to Jun 2010
Highest income growth has been in regional –
shift to white collar + resources
Average Household Income 2010 vs. 2004 for P25-54
Markets
Sep 2010
Sep 2004
% Change
Regional aggregate
markets
$93,560
$66,100
+42%
Rural markets
$99,280
$67,730
+47%
Metro markets
$105,750
$79,090
+34%
Roy Morgan Single Source 12 mths to Sep 2010 & Sep 2004
Regional people start their
family life younger and have
more children
Women 25-39
Metro
Regional
Employed full/part time
67%
61%
Married/De facto
67%
67%
HHI $100k +
28%
28%
Children in the household
60%
70%
2+ kids
39%
49%
3+ kids
14%
21%
Source: Roy Morgan Single Source (12mths to September 2010)
Regional new car
buyers slightly older,
more likely to be
retired empty nester
Profile: New car buyers
Metro
Regional
Average age
51yrs
54yrs
Male:Female
50:50
49:51
Already retired
21%
29%
Children in household
33%
27%
Household income $100K+
36%
32%
Own home outright
46%
49%
2+ cars in household
70%
69%
Brought a car in the last year
14%
16%
Source: Roy Morgan Research (12 months to Sep 2010)
Why has regional spending been
more stable and the outlook more
positive?
• Lower cost of living – less debt
• Government investment in infrastructure
• High population growth driving
development and local economies
• Resources growth impacting many parts
of regional: NSW, QLD, WA, SA.
Regional consumers’ willingness to spend remained very
steady through GFC compared to metro volatility
$
500
450
400
350
300
250
200
150
100
50
0
Metro
2005
2006
Regional
2007
2008
2009
Dollars allocated for spending from discretionary $1000
Source: foreseechange 2005 - 2010
2010
Regional consumers have been increasing their
saving for past 5 years: national mood now cautious
Metro
500
450
400
$ 350
300
250
200
150
100
50
0
2005
2006
2007
Regional
2008
2009
Dollars allocated for saving from discretionary $1000
Source: foreseechange 2005 - 2010
2010
Half of all Australians say they are able to spend on
discretionary items ... no significant change YOY
100
% of Pop.
90
80
24.8
25.7
29.0
24.5
40.4
42.7
5.9
7.3
Metro
Regional
70
60
50
40
30
20
10
0
Source: foreseechange June 2010 & October 2010
No Worries
“Few financial concerns being
able to both save and buy what I
want”
Comfortable
“Afford to spend on the extras
that make life worthwhile”
Getting By
“Manage to meet expenses but
nothing left over”
Broke
“Never seem to have enough
money”
Media landscape in regional markets is broadly similar
to capital cities
P25-54
Metro
Reg
Watch 2hrs+ TV per day
50%
58%
Listened to any commercial radio weekday
68%
62%
Accessed the internet
87%
83%
Watch daytime TV
73%
77%
Own digital TV at home
71%
74%
Whether subscribe to Pay TV*
28%
27%
Source: Roy Morgan Single Source 12 months to Sep 2010, *AGB NMR Panorama 12 mths to Dec 2010
Reg. TV CPM is 45% below metro TV average and
delivers double the cost efficiency and ROI
180
164
160
Index
140
120
104
100
98
80
79
60
89
71
70
53
40
SYD
MEL
BRI
ADE
PER NNSW SNSW VIC
TV market CPM indices
National average CPM P18+ = 100
Source: Regional TV Agency Survey 2010
61
QLD
70
TAS
Reg
36%
Reg
23%
SYD
19%
MEL
19%
PER
8%
BRI
12%
ADE
6%
Share of national
population
SYD
34%
PER
7%
ADE
5%
BRI
12%
MEL
21%
Share of national
TV budget
Regional TV currently gets 17% of $180M insurance
category TV advertising spend
Total TV Spend
Regional Share (%)
$200m
25%
$180m
$160m
20%
TV Spend
$120m
15%
$100m
$80m
10%
$60m
$40m
5%
$20m
$0m
2001
2002
2003
2004
2005
2006
2007
2008
Source: Nielsen Media Research AdEx. (Jan – Dec For All Years)
2009
2010
0%
Regional Share
$140m
Distribution of Suncorp Group insurance
customers by brand: Over 40% from regional
AAMI
16%
32%
29%
23%
APIA
MET
REG
SYD
MEL
10% 17%
22%
10%
Suncorp
34%
10%
7%
49%
41%
MET
REG
SYD
MEL
BRI
GIO
MET
REG
BRI
QLD
27%
26%
6%
42%
AGB NMR Panorama 12 mths to Dec 2010
MET
REG
SYD
NSW
Suncorp Group national spend and share into Regional TV
MTV %
RTV %
Total TV
spend
12%
AAMI Insurance
Australian
Pensioners…
$18.4m
$6.1m
19%
Bingle.com
10%
$2.9m
GIO Insurance
8%
$5.6m
1%
InsureMyRide
$339k
Just Car
Insurance
Shannons
Insurance
Suncorp
Insurance
20%
$3.2m
Suncorp Bank
20%
$3.3m
$169k
4%
13%
Grand Total
Period: January – December 2010
Category: Insurance
Source: Nielsen Media Research AdEx Jan-Dec 2010
$2.1m
$42.1m
Car insurance advertising share of voice by market:
Youi, Allianz, NRMA and AAMI dominant
100%
Other
90%
Youi P/L
80%
Suncorp
70%
Shannons
60%
NRMA
Real Insurance
50%
GIO
40%
Apia
30%
Australian Insurance
20%
Allianz
AAMI
10%
0%
$29.4m $5.5m $18m $1.7m $12m $1.8m $4.2m $7.8m $197k $441k
Period: January to December 2010
Source: Nielsen Media Research AdEx Jan-Dec 2010
Total $80.9m
Home/Content Insurance SOV by market
100%
90%
80%
SGIO (WA)
70%
SGIC (SA)
RACV
60%
RACQ
50%
RAC (WA)
40%
QBE
30%
NRMA
Real Insurance
20%
HBF
10%
0%
GIO
$2.6m
$484k
$2.4m
SYD NSW MEL
$271k
VIC
$1.2m
BRI
$171k
$318k
$1.4m
QLD ADE PER
Period: January to December 2010
Source: Nielsen Media Research AdEx Jan-Dec 2010
$108k
WA
$0
TAS
Total $9m
Regional customer satisfaction
with Suncorp Group
insurance varies from metro
Satisfaction above average to excellent
Metro
Regional
AAMI (NSW)
AAMI (VIC)
GIO (NSW)
GIO (VIC)
Suncorp (QLD)
APIA
24%
32%
17%
7%
22%
7%
19%
24%
15%
6%
31%
10%
Source: NMR Panorama (12mths to Dec 2010) *P25+ filter have insurance with named brand
Regional insurance customers
want a balance of price and
service
P25-54:
Most important issue…
Metro
Regional
Hassle Free
12%
13%
Security of dealing with large co.
12%
9%
Good Prices
38%
37%
Being paid what I am owed
27%
30%
Source: NMR Panorama (12mths to Dec 2010)
Regional man is more likely
to be a car enthusiast
Profile: Men 30+
Agree/ strongly agree…
Metro
Reg
Look for thing increase car performance
21%
25%
Work on my car myself
22%
29%
Consider myself a bit car enthusiast
26%
29%
Would buy an Aust Car if could
40%
46%
Need car that can tow a load
27%
41%
Really love to watch Top Gear
13%
12%
Source: *Roy Morgan Single Source 12 months to Sep 2010, AGB NMR Panorama 12 mths to Dec 2010
Hearts & Minds: Corporate responsibility is
important to regional people
Consumer activists
Agree…
Metro
Regional
I make active decisions to buy products from ethical companies
47%
49%
I avoid products from companies who are unethical overseas
85%
91%
I would pay extra for products from a company that helps the
community
80%
88%
I prefer to buy Australian made
75%
83%
Creating a regional voice for a financial services
brand will improve preference, loyalty and cut
through
• True local (Newcastle Permanent)
• Product offer localised (TCW, Rural bank)
• Tone of voice or context localised (youi,
Greater Building Society, LaTrobe Uni)
• Support for local community (CBA Kids
Cricket, NAB AFL, Surf Life Saving etc etc)
Regional TV is part of the
community… “We live here too”
•
•
•
•
News & current affairs
Local TV ads
Promotions
Community sponsorships
Local content reel…
www.regionaltvmarketing.com.au
Higher cost efficiency of RTV allows opportunities to
create customised communications strategies not
possible elsewhere
• Invest in regional variations in TVC’s: Product offer,
imagery, customer profile.
• Promote existing local community support or develop
appropriate programmes
• Increase regional media dominance: Share of voice,
news and programme sponsorship and content
development
Regional markets are essential to success and growth
in for Suncorp Group brands
• Up to 40% of customers are in regional
• High cost efficiency of advertising improves national
marketing ROI
• Opportunities to increase satisfaction and loyalty
through localised strategies
• Competitors are increasing regional targeting in
markets of greatest opportunity
David Chalke social researcher….
www.regionaltvmarketing.com.au
The Great Divide
Upwardly Mobile
Materialist
Family Focused
Youthful
Technological
Energetic
Inner
Metro
23%
Experiential
International
Libertarian
Outer Metro
41%
Pragmatic
Functional
Patriotic
Regional
36%
Practical
Communitarian
Self Reliant
Conservative
Institutional
Self-Controlled
New digital FTA had higher share of
viewing than pay TV in late 2010…before
launch of 11
13.3
%
STV share of all
people
Source: RegTam survey 10.
14.3 %
Digital FTA TV share
of all people