Regional TV Essentials August 2011 Brian Hogan General Manager RTM.
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Transcript of Regional TV Essentials August 2011 Brian Hogan General Manager RTM.
Regional TV Essentials
August 2011
Brian HoganGeneral Manager RTM
www.regionaltvmarketing.com.au
RTM is the marketing bureau for Regional free to air TV
Training agenda
• Market structure
• Demographics & social outlook
• Spending and economic outlook
• Media consumption and outlook
• Effectiveness studies
Regional TV Markets
Regional TV provides three main networks and FTA multi channels to all areas outside 5 cap. cities
QLD
NNSW
SNSW
TAS
VIC
REG.SA, MILDURA,
GRIFFITH
REG. WA
SATELLITE
Regional TV markets total 36% of Australian population
SydneyMelbourne
Reg NSWBrisbane
PerthReg QLDAdelaideReg VIC
SA/SAT/DAR/MIL/GRIFWATAS
0m 1m 2m 3m 4m 5m
4,6354,528
3,4892,982
1,8561,764
1,4081,171
969585
510
People
Source: ATR & OZTAM 2011, Nielsen Media Research 2010
NNSW 2,079 SNSW 1,410
Major regional markets are know as “Aggregated markets”
• Rural markets
QLD
NNSW
SNSW
TAS
VIC
REG.SA, MILDURA,
GRIFFITH
REG. WA
SATELLITE
Regional TV markets do not follow state lines or expected “regional and rural” profile
• Rural markets
QLD
NNSW
SNSW
TAS
VIC
REG.SA, MILDURA,
GRIFFITH
REG. WA
SATELLITE
Aggregated markets can be split to “sub-markets”
• Rural markets
QLD
NNSW
SNSW
TAS
VIC
REG.SA, MILDURA,
GRIFFITH
REG. WA
SATELLITE
Aggregated Markets
QLD NNSW SNSW VIC TAS
Sub markets
Cairns Northern Rivers
Canberra Albury Hobart
Townsville Tamworth/Taree
Orange/Dubbo/Wagga
Bendigo Launceston
Mackay Newcastle Wollongong Shepparton
Rockhampton
Gippsland
Maryborough
Ballarat
Toowoomba
Aggregated Markets
QLD NNSW SNSW VIC TAS
Sub markets
Cairns Northern Rivers
Canberra Albury Hobart
Townsville Tamworth/Taree
Orange/Dubbo/Wagga
Bendigo Launceston
Mackay Newcastle Wollongong Shepparton
Rockhampton
Gippsland
Maryborough
Ballarat
Toowoomba
Further non-surveyed signal splits available:Sunshine CoastCentral CoastGold CoastWollongongWagga Wagga
Rural markets – aka “diary markets”
Regional WAGWN (7)
WIN (9,10)
Port Pirie/ Broken
HillGTS/BKN (7)
STHN X 10 (10)
SatelliteIMPARJA (9)
SEVEN CENTRAL (7)
GriffithWIN (9), WIN (7)
MilduraWIN (9), PRIME (7)
DarwinNINE/NTD-8 (9)
STHN X DARWIN (10)DARWIN DIGITAL TV
These markets have two FTA stations, except Darwin and Mildura which have 3.
Loxton/Mt Gambier
RTS/SES (10)WIN SA(7)
Satellite broadcasts into 5 states and territories
PORT PIRIE & BROKEN HILLPop: 137,000
GTS/BKN (7)STHN X 10 (10)
NTPop: 94,136
22% of SATELLITE
IMPARJA (9)7CEN (7)
Rural QLDPop: 173,381
41% of SATELLITE
Rural NSWPop: 80,366
19% of SATELLITERural VIC
Pop: 33,8138% of
SATELLITE
Rural SAPop: 42,481
10% of SATELLITE
Loxton/Mt Gambier
Pop: 126,000WIN SA (7)RTSSES (9)
Source: Nielsen Media Research Regional TV Diary Markets
Gold Coast
Cairns
Townsville
Mackay
Sunshine CoastToowoomba
Newcastle
Wollongong
Central Coast
Bendigo
> 500,000> 500,000
> 250,000> 250,000
> 100,000> 100,000
> 50,000> 50,000
Population:Population:
Bundaberg
Rockhampton
Tweed/Byron
Ballarat
Launceston
Hobart
Albury/Wodonga
MandurahMandurah
BunburyBunbury
Canberra
Canberra
80% Urbanised
www.regionaltvmarketing.com.au
RTV Google maps API
RTV Google maps API: Submarket level
Gippsland Wikipedia link
WORKSHOP - in pairs
match markets to map
Sub-markets & rural markets
1. Maryborough2. Northern
Rivers3. Canberra4. Bendigo5. Cairns6. Newcastle7. Wollongong8. Albury9. Tamworth/
Taree10.Launceston11.Toowoomba12.Gippsland13.Hobart
14. Rockhampton15. Ballarat16. Orange / Dubbo / Wagga17. Mackay18. Shepparton19. Townsville20.Satellite21.Pt. Pirie/Broken Hill22.Loxton/Mt. Gambier23.Griffith24.Darwin25.Regional WA26.Mildura
1
3
2
5
4
6
78
9
10
11
12
13
23
26
21
22 1
5
142
0
17
16
19
24
M
25
18
P P
A
B
S
Demographics
Urbanisation and high population growth changing the profile of regional Australia
• 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 %7live in Regional TV markets
Source: OzTam AGB Nielsen 2011
1,573,000
Australian teens age 13-17
3 %3live in Regional TV markets
Source: OzTam AGB Nielsen 2011
3,035,000
Australian youths age 16-24
3 %9Source: OzTam AGB Nielsen 2011
3,141,000
Australian 55+
live in Regional TV markets
Regional Hyundai buyers
slightly older, affluent and
female vs. metro buyer
Source: Roy Morgan Research (12 months to Sep 2010 - own new Hyundai bought in the last 5 years)
% Hyundai buyers Metro Regional
Average age 50yrs 54yrs
Male: Female 42:58 39:61
Already retired 22% 28%
Own home outright 44% 49%
Household income $100k+ 28% 28%
Seachange…
… 20% for baby boomers
…80% 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.
Population Increase: 2001 vs. 2011
Source: ATR & OZTAM 2011
Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas
MARYB
MACKA
YBRIS
NOR RIV
CAIRNS
TOW
NS
PERTH
ROCK
TOOW
CANB
GIPPS M
EL
TAM/T
AR
ALBURY
WOLL
BALLSY
DADEL
NEWC
HOBART
BEND
LAUNCE
SHEP
P
O/D/W
0%5%
10%15%20%25%30%35%40%45%
National average
QLD NSW VIC TAS METRO
Regional people start their family life
younger than in the capital cities
Source: Roy Morgan Single Source (12mths to March 2011)
Women 18-24 Metro Regional
Employed full/part time 61% 66%
Married/De facto 19% 30%
Children in the household 31% 37%
HHI $100k + 16% 18%
Personal income $50 + 7% 9%
Regional Mum’s spend more on
groceries due to more kids
GBs with Kids Met Reg
$200 or more spent on grocery P/Wk 46% 53%
Have favourite brands and tend to stick to them 69% 65%
Quality is more important than price 70% 69%
Have 3 or more kids 19% 22%
Source: Roy Morgan Single Source (12mths to March 2011)
Regional is perfectly representative of the dominant Australian lifestyle: Suburban
ExperientialInternationalLibertarian
ExperientialInternationalLibertarian
PracticalCommunitarian
Self Reliant
PracticalCommunitarian
Self Reliant
Upwardly MobileMaterialist
Family Focused
Upwardly MobileMaterialist
Family Focused
PragmaticFunctionalPatriotic
PragmaticFunctionalPatriotic
YouthfulTechnological
Energetic
YouthfulTechnological
Energetic
ConservativeInstitutional
Self-Controlled
ConservativeInstitutional
Self-Controlled
InnerMetro23%
Outer Metro41%
Regional36%
www.regionaltvmarketing.com.au
According to David Chalke social
researcher….
Spending and economics
Savings are at an all time high in both regional and metro markets
2006 2007 2008 2009 2010 20110
100
200
300
400
500
Metro Regional
Saving per discretionary $1000
Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey
The need to pay debt continues to decline in regional but is growing in metro markets
Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey
2006 2007 2008 2009 2010 20110
100
200
300
400
500
Metro Regional
Loan Repayment per discretionary $1000
Regional consumers’ willingness to spend grew this year by 9% – against national trend
Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey
2006 2007 2008 2009 2010 20110
50
100
150
200
250
300
350
Metro
Spending per discretionary $1000
2003
2004
2005
2006
2007
2008
2009
2010
Jan-
Jun
2011
-10%
-5%
0%
5%
10%
15%
10%
4% 3%
-1%
9%
-4%
-9%
13%
-7%
11%
8%
5%
-5%
8%
-4% -4%
7%
-5%
Metro Regional
New car sales grew in regional by 7% YOY – off back off better 2009 than metro
YOY change in new car sales
Source: VFACTS (excluding trucks and buses, including utes)
Home price to income ratio is significantly lower in regional TV markets
Sydney Melbourne
Brisbane Adelaide
Perth
5.6 5.6 4.2 4.3 4.3
NNSW SNSW Reg. VIC Reg. QLD Tasmania Rural
4.2 3.9 3.1 3.7 3.8 2.8
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
Regional Metro
NNSW $89,690 Sydney $112,380
SNSW $102,500 Melbourne $101,840
Victoria $84,470 Brisbane $104,970
Queensland $95,080 Adelaide $91,530
Tasmania $84,170 Perth $119,600
Rural $106,690
Source: Roy Morgan Single Source (12mths to Mar 2011 )
P25-54: Average household Income
20%
of regional consumers are willing and able to spend
20%+13% YOY
of regional consumers are willing and able to spend
Incomes in regional and rural Australia are growing well above the national average
Metro National Regional Rural0%
20%
40%
60%
80%
+38% +42% +48%+63%
Average household income growth since 2004 (P25-54)
Source: Roy Morgan Single Source (12mths to Mar 2011 – 2004 )
2005 2006 2007 2008 2009 2010 20110%
5%
10%
15%
20%
25%
Metro Regional
Rapid growth in the number of affluent consumers in regional Australia
Source: Roy Morgan Single Source (12mths to Mar 2011 – 2004 )
People 18-64 with HHI $130k+ or Investments $500K+
Regional consumers are more optimistic about their current financial outlook…
…and are more likely to spend on discretionary items over the coming year.
MEDIA
Media landscape in regional markets is broadly similar to capital cities
People 25-54 Metro Reg
Watch 2hrs+ TV per day 50% 58%Listened to any commercial radio
weekday 66% 62%
Accessed the internet 87% 85%
Watch daytime TV 71% 76%
Own digital TV at home 74% 79%
Whether subscribe to Pay TV 28% 27%
Saw outdoor 51% 26%
Source: Roy Morgan Single Source 12 months to March 2011, *AGB NMR Panorama 12 mths to May 2011
• News & current affairs• Local TV ads• Promotions • Community sponsorships• Lifestyle shows
TV plays a greater role in regional life…it’s part of
the community
Reg. TV CPM (cost per thousand) is 40% below national TV average – proportional investment 23% of national TV budget to reach 36% of audience
SYD MEL BRI ADE PER NNSWSNSW VIC QLD TAS40
60
80
100
120
140
160
180164
104
98
7989
71 70
5361
70
Ind
ex
TV market CPM indicesNational average CPM P18+ = 100
Source: Regional TV Agency Survey 2010
SYD19%
MEL19%
BRI12%
ADE6%
PER8%
Reg36%
SYD34%
MEL21%
BRI12%
ADE5%
PER7%
Reg23%
Share of national population
Share of national TV budget
Higher cost efficiency of regional TV is opportunity to push growth harder than in metro
13/06/2010
27/06/2010
11/07/2010
25/07/2010
8/08/2010
22/08/2010
5/09/2010
19/09/2010
3/10/2010
17/10/2010
31/10/2010
14/11/2010
28/11/2010
12/12/2010
26/12/2010
9/01/2011
23/01/2011
6/02/2011
20/02/2011
6/03/2011
20/03/20110%
5%
10%
15%
20%
25%
Metro Regional
Launch week of 7mate &
Gem
Launch week of Eleven
Audience share of the new commercial “digital” channels has more than tripled since June 2010
Source: Mediaweek, Metro data from OzTAM and Regional data from Regoional TAM. All People 18:00 - 23:59
June 2010 Sept 2010 Dec 2010 March 2011
• Subscription TV audiences are down in all key dayparts for the Survey Year to Date• FTA viewing is up & commercial TV even more
Source: Regional TAM; Survey 1-2, 2011 vs. 2010; Consolidated Data
New commercial channels driving Free to air TV audiences up in 2011
Audience Year on Year % Change; Combined Agg Markets (QLD, NNSW, SNSW, VIC & TAS)
Total People; Sun-Sat; Survey 1-2, 2011 vs. 2010
Proving effectiveness& “ROI” of Regional TV
Vaseline Market Mix Modelling
Analysis
Case Study
July 2011
Key findings summary
• The study found a re-alignment of TV market investment using the same 2010 TV budget could increase annual TV generated sales by 38%.
• And improve ROI by 43%• The model recommends 40% share of
total TV budget should be allocated to regional markets to achieve this outcome
• TV flighting patterns in regional to be continuous lower weights
Current Adstock investment in regional areas could be increased to maximise total advertising generated sales.
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Predicted sales driven by weekly TV Adstock levels
Sydney Melb Bris NNSW SNSW RQLD RVIC TAS
Weekly Adstock
Sa
les $
= Average Weekly Adstocks
Current Adstock investment in regional areas could be increased to maximise total advertising generated sales.
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Predicted sales driven by weekly TV Adstock levels
Sydney Melb Bris NNSW SNSW RQLD RVIC TAS
Weekly Adstock
Sa
les $
= Average Weekly Adstocks
Over the period of the study regional areas deliver 38% of advertising generate sales for only 16% of budget and hence better ROI compared to metro areas.
Melbourne and Sydney have a greater capacity to generate high volume sales but require large levels of spend
Region Spend Sales Generated ROI
Overall 4.9 mill 100% 100
Sydney 1.96 mill 26% 71
Melbourne 1.2 mill 21% 86
Brisbane 891K 15% 86
NNSW 197K 7% 186
SNSW 190K 11% 286
RQLD 200K 11% 271
RVIC 142K 6% 214
Tasmania 74K 2% 143
RegionCurrent Adstock
Possible Mix% of weekly
budget
Sydney 42K 20K 18.59%
Melbourne 28K 24.6K 22.86%
Brisbane 19.5K 19K 17.66%
NNSW 4.8K 10K 9.29%
SNSW 3.9K 10K 9.29%
RQLD 4.9K 13K 12.08%
RVIC 3.2K 7K 6.51%
Tasmania 1.3K 4K 3.72%
Total 108K 108K
Optimum allocation to Regional TV is 41% of total TV budget
Due to higher decay in regional areas, a continuous flighting pattern may be more appropriate. Whereas in Sydney where advertising decay is lower, a large burst followed by shorter ones is most efficient.
Region
2010 Spend
2010 Rev.
2010 ROI
Poss.Spend
Approx
Rev.ROI
Sydney
762K 36K 0.047c 331K 16K 0.048c
Region
2010 Spend
2010 Rev.
2010 ROI
Poss.Spend
Approx
Rev.ROI
NNSW 71K 9.6K 0.14c 165K 22.8K 0.14c
Region2010 Spend
2010Rev.
2010ROI
Poss.Spend
ApproxRev. ROI
SNSW 70K 14.6K 0.21c 166K 33K 0.2c
Region2010 Spend
2010 Rev.
2010 ROI
Poss.Spend
ApproxRev. ROI
TAS 25K 2.8K 0.11c 66K 7K 0.11
Inve
stm
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Sales
Week Number
Inve
stm
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stm
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Sales
Week Number
Inve
stm
ent
Sales
Week Number
40%of potential national growth is in regional
markets…
40%of potential national growth is in regional
markets…
…for no more than 25% of national TV budget
Regional TV offers your clients growth, accountability and engagement
• Discretionary spending outlook very positive
• Regional media consumption favours FTA TV
• Opportunities for localised messaging in support of national brand strategy
• RTM can provide effectiveness measures and opportunity analysis
Regional Quiz
Thank you