origin energy regional market review november 2011
TRANSCRIPT
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Origin Energy
Regional Market Review
November 2011
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www.regionaltvmarketing.com.au
RTM is the marketing bureau for Regional free to air TV
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Regional markets require a nuanced approach to fulfill maximum return to Origin
• Regional people have bigger homes and more kids – likely to be high consumers of energy and engaged with the category
• Regional consumers – like all Australians – are very aware of corporate social and environmental responsibility
• Community invovlement and support through the media has far greater meaning in Regional Oz than in the capital cities
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Regional TV covers all areas outside capital
cities and reaches 36% of
populationQLD
NNSW
SNSW
TAS
VIC
REG. WA
DIARY
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Regional TV coverage
includes large cities and fast
growing coastal suburbs
Newcastle & Central Coast
Gold Coast
Wollongong & Illawarra
Canberra
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Diary markets: 19% of total regional population
Regional WA
Port Pirie/ Broken
Hill
Satellite
Griffith
Mildura
Darwin
Loxton/Mt Gambier
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Populations of major regional TV markets are comparable with the metros
People
Source: ATR & OZTAM 2011, Nielsen Media Research 2010
NNSW 2,079
SNSW 1,410
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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
National average
QLD NSW VIC TAS METRO
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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
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Regional energy consumers are more
likely to live in a house and have bigger family
Source: Roy Morgan Research (12 months to June 2011)
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3 %7live in Regional TV markets
Source: OzTam AGB Nielsen 2011
1,573,000
Australian teens age 13-17
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3 %8live in Regional TV markets
Source: OzTam AGB Nielsen 2011
1,547,000 Australian GB’s with
children 5-12
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3 %8Source: OzTam AGB Nielsen 2011
3,141,000
Australian 55+
live in Regional TV markets
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Seachange…
… for baby boomers
…for families
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“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.
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Savings are at an all time high in both regional and metro markets
Saving per discretionary $1000
Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey
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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
Loan Repayment per discretionary $1000
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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
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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
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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
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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 )
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Regional consumers are more optimistic about their current financial outlook…
…and are more likely to spend on discretionary items over the coming year.
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Attitudes to environment and corporate social responsibility – foreseechange Nov. 2011
• Australian are overwhelmingly favourable to the participation of companies in social and environmental good.
• The degree of support does not vary significantly between adults in Metro, Regional city, and rural areas
• There is a high degree of skepticism about what companies say they do for the good of the community and the environment.
• Corporate social responsibility should, therefore, be genuine, both in appearance and delivery.
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Source: Roy Morgan Single Source (12mths to June 2011)
Regional attitudes towards the environment marginally more conservative – age is a bigger
differentiator
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Companies should concentrate on making profits and forget about social & environmental issues
Source: foreseechange 2011
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Companies should not donate to charities
Source: foreseechange 2011
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Companies should not donate to political parties
Source: foreseechange 2011
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So long as the quality is the same, would pay up to 5% more for a product made by a company that did good things for the community
Source: foreseechange 2011
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So long as the quality is the same, would pay up to 5% more for a product made by a company that did good things for the environment
Source: foreseechange 2011
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Most companies talk about being socially & environmentally responsible but don’t actually do much about it
Source: foreseechange 2011
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•News & current affairs•Local TV ads•Promotions •Community sponsorships
Regional TV is part of the community… “We live here
too”
…means greater engagement
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Creating a regional voice for a brand will improve preference, loyalty and cut through
• True local (Newcastle Permanent, Southern Phone Company)
• 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)
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Regional consumers will reward Origin’s overt support and communication
• Opportunity is for Origin to take a leadership role in regional communities on environmental energy issues
• Regional consumers will reward value and honesty in business
• Regional FTA TV has reach and credibility far beyond any local media