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Suncorp Group Insurance Regional Market Review March 2011

Suncorp Group Insurance Regional Market Review March 2011

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Page 1: Suncorp Group Insurance Regional Market Review March 2011

Suncorp Group Insurance

Regional Market Review

March 2011

Page 2: Suncorp Group Insurance Regional Market Review March 2011

• Benefits of RTV: Population, spending power, demographics

• Media: Efficiency, investment levels• Insurance brand regional focus• Regionally focused communication

strategies• Digital TV multichannel opportunities

Agenda

Page 3: Suncorp Group Insurance Regional Market Review March 2011

www.regionaltvmarketing.com.au

RTM is the marketing bureau for Regional free to air TV

Page 4: Suncorp Group Insurance Regional Market Review March 2011

Regional TV covers all areas outside capital

cities and reaches 36% of

populationQLD

NNSW

SNSW

TAS

VIC

REG. WA

DIARY

Page 5: Suncorp Group Insurance Regional Market Review March 2011

Regional TV coverage

includes large cities and fast

growing coastal suburbs

Newcastle & Central Coast

Gold Coast

Wollongong & Illawarra

Canberra

Page 6: Suncorp Group Insurance Regional Market Review March 2011

Diary markets: A diverse mix of urban and rural

Regional WA

Port Pirie/ Broken

Hill

Satellite

Griffith

Mildura

Darwin

Loxton/Mt Gambier

Page 7: Suncorp Group Insurance Regional Market Review March 2011

Populations of major regional TV markets are comparable with the metros

SydneyMelbourne

Reg NSWBrisbane

PerthReg QLDAdelaideReg VIC

DiaryWATAS

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

Page 8: Suncorp Group Insurance Regional Market Review March 2011

RTM website Google maps to regional submarket level

Page 9: Suncorp Group Insurance Regional Market Review March 2011

Regional TV maps have Wikipedia link for all towns

Page 10: Suncorp Group Insurance Regional Market Review March 2011

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

Page 11: Suncorp Group Insurance Regional Market Review March 2011

Seachange…

… for baby boomers

…for families

Page 12: Suncorp Group Insurance Regional Market Review March 2011

“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.

Page 13: Suncorp Group Insurance Regional Market Review March 2011

Population Increase: 2001 vs. 2011

Source: ATR & OZTAM 2011

Australian population moving North and to the coast. Over 25% growth in 10 years in some centres

SYD MEL BRI ADE PER NNSWSNSW VIC QLD TAS0%

5%

10%

15%

20%

25%

30%

35%

Metro +18% Regional East Coast (Aggs) +18%

National average

Page 14: Suncorp Group Insurance Regional Market Review March 2011

Lower housing cost is key factor in maintaining regional spending and attracting new arrivals

Sydney Melbourne

Brisbane Adelaide

Perth

6.4 6.3 4.6 4.6 4.6

NNSW SNSW

Victoria Queensland

Tasmania

Diary

4.6 3.7 3.2 4.0 3.9 2.9

House price vs. income multiple

Source: Residex median house price Jul - Sep 2010 & Roy Morgan Single Source 12 mths to Jun 2010

Page 15: Suncorp Group Insurance Regional Market Review March 2011

Highest income growth has been in regional – shift to white collar + resources

MarketsSep

2010Sep

2004%

Change

Regional aggregate markets

$93,560 $66,100 +42%

Rural markets $99,280 $67,730 +47%

Metro markets $105,750 $79,090 +34%

Average Household Income 2010 vs. 2004 for P25-54

Roy Morgan Single Source 12 mths to Sep 2010 & Sep 2004

Page 16: Suncorp Group Insurance Regional Market Review March 2011

Regional people start their family life younger and

have more children

Source: Roy Morgan Single Source (12mths to September 2010)

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%

Page 17: Suncorp Group Insurance Regional Market Review March 2011

Regional new car buyers slightly

older, more likely to be retired

empty nester

Source: Roy Morgan Research (12 months to Sep 2010)

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%

Page 18: Suncorp Group Insurance Regional Market Review March 2011

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.

Page 19: Suncorp Group Insurance Regional Market Review March 2011

Regional consumers’ willingness to spend remained very steady through GFC compared to metro volatility

2005 2006 2007 2008 2009 20100

100

200

300

400

500Metro Regional

Dollars allocated for spending from discretionary $1000

Source: foreseechange 2005 - 2010

$

Page 20: Suncorp Group Insurance Regional Market Review March 2011

Regional consumers have been increasing their saving for past 5 years: national mood now cautious

2005 2006 2007 2008 2009 20100

100

200

300

400

500

Metro Regional

Source: foreseechange 2005 - 2010

Dollars allocated for saving from discretionary $1000

$

Page 21: Suncorp Group Insurance Regional Market Review March 2011

Metro Regional0

10

20

30

40

50

60

70

80

90

100

5.9 7.3

40.4 42.7

29.0 24.5

24.8 25.7

Half of all Australians say they are able to spend on discretionary items ... no significant change YOY

% o

f Po

p.

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”

Source: foreseechange June 2010 & October 2010

Page 22: Suncorp Group Insurance Regional Market Review March 2011

Media landscape in regional markets is broadly similar to capital cities

P25-54Metr

oReg

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

Page 23: Suncorp Group Insurance Regional Market Review March 2011

Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI

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

Page 24: Suncorp Group Insurance Regional Market Review March 2011

SYD19%

MEL19%

BRI12%

ADE6%

PER8%

Reg36%

SYD34%

MEL21%

BRI12%

ADE5%

PER7%

Reg23%

Share of national population

Share of national TV

budget

Page 25: Suncorp Group Insurance Regional Market Review March 2011

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0m

$20m

$40m

$60m

$80m

$100m

$120m

$140m

$160m

$180m

$200m

0%

5%

10%

15%

20%

25%Total TV Spend Regional Share (%)

Regional TV currently gets 17% of $180M insurance category TV advertising spend

TV

Spe

ndR

egional Share

Source: Nielsen Media Research AdEx. (Jan – Dec For All Years)

Page 26: Suncorp Group Insurance Regional Market Review March 2011

17%

41%10%

22%

10%

APIAMETREGSYDMELBRI

10%7%

49%

34%

SuncorpMETREGBRIQLD

16%

29%

23%

32%

AAMIMETREGSYDMEL

26%

6%

42%

27%

GIOMETREGSYDNSW

Distribution of Suncorp Group insurance customers by brand: Over 40% from regional

AGB NMR Panorama 12 mths to Dec 2010

Page 27: Suncorp Group Insurance Regional Market Review March 2011

AAMI Insurance Australian

Pensioners In-surance Agency

Bingle.com

GIO Insurance

InsureMyRide

Just Car In-surance

Shannons Insurance

Suncorp In-surance

Suncorp Bank

Grand Total

12%

19%

10%

8%

1%

4%

20%

20%

13%

MTV % RTV %

Suncorp Group national spend and share into Regional TVSuncorp Group national spend and share into Regional TV

Period: January – December 2010

Category: Insurance

Total TV spend

$18.4m

$6.1m

$2.9m

$5.6m

$339k

$169k

$2.1m

$3.2m

$3.3m

$42.1m

Source: Nielsen Media Research AdEx Jan-Dec 2010

Page 28: Suncorp Group Insurance Regional Market Review March 2011

Car insurance advertising share of voice by market: Youi, Allianz, NRMA and AAMI dominant

SYD NSW MEL VIC BRI QLD ADE PER TAS WA/NT

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Other Youi P/L Suncorp Shannons NRMA Real Insurance GIO Apia Australian Insurance Allianz AAMI

Period: January to December 2010Source: Nielsen Media Research AdEx Jan-Dec 2010

$29.4m

$5.5m $18m $1.7m $12m $1.8m$4.2m$7.8m $197k $441kTotal $80.9m

Page 29: Suncorp Group Insurance Regional Market Review March 2011

Home/Content Insurance SOV by market

SYD NSW MEL VIC BRI QLD ADE PER WA TAS0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SGIO (WA) SGIC (SA) RACV RACQ RAC (WA) QBE NRMA Real Insurance HBF GIO

Period: January to December 2010Source: Nielsen Media Research AdEx Jan-Dec 2010

$2.6m $484k $2.4m $271k $1.2m $171k $318k $1.4m $108k $0 Total $9m

Page 30: Suncorp Group Insurance Regional Market Review March 2011

Regional customer satisfaction with

Suncorp Group insurance varies from

metro

Source: NMR Panorama (12mths to Dec 2010) *P25+ filter have insurance with named brand

Satisfaction above average to excellent Metro Regiona

lAAMI (NSW) 24% 19%AAMI (VIC) 32% 24%GIO (NSW) 17% 15%GIO (VIC) 7% 6%

Suncorp (QLD) 22% 31%APIA 7% 10%

Page 31: Suncorp Group Insurance Regional Market Review March 2011

Source: NMR Panorama (12mths to Dec 2010)

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%

Regional insurance customers want a balance of price and service

Page 32: Suncorp Group Insurance Regional Market Review March 2011

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

Page 33: Suncorp Group Insurance Regional Market Review March 2011

Hearts & Minds: Corporate responsibility is important to regional people

Consumer activistsAgree… Metro Regiona

l

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%

Page 34: Suncorp Group Insurance Regional Market Review March 2011

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)

Page 35: Suncorp Group Insurance Regional Market Review March 2011

• News & current affairs• Local TV ads• Promotions • Community sponsorships

Regional TV is part of the community… “We live here

too”

Page 36: Suncorp Group Insurance Regional Market Review March 2011

www.regionaltvmarketing.com.au

Local content reel…

Page 37: Suncorp Group Insurance Regional Market Review March 2011

• 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

Higher cost efficiency of RTV allows opportunities to create customised communications strategies not possible elsewhere

Page 38: Suncorp Group Insurance Regional Market Review March 2011

• 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

Regional markets are essential to success and growth in for Suncorp Group brands

Page 39: Suncorp Group Insurance Regional Market Review March 2011

www.regionaltvmarketing.com.au

David Chalke social researcher….

Page 40: Suncorp Group Insurance Regional Market Review March 2011

The Great Divide

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%

Page 41: Suncorp Group Insurance Regional Market Review March 2011

New digital FTA had higher share of viewing than pay TV in late 2010…before launch of 11

STV share of all people

13.3%Digital FTA TV share of all people

14.3%

Source: RegTam survey 10.