W/C 01.06.2020

T H E C O V I D F I L E S W/C 01.06.20 | 2

News Corp Australia Impact

OVERVIEW:Australians want a holiday from Covid-19.

In 4 of the last 5 weeks, Escape held the top spot for engagement.

Vogue is guiding readers through a changed fashion/beauty world.

Top dayPage view increase

over same date last month

Escape Wed 20th 112%

Vogue Mon 25th 68%

G.C. Bulletin Fri 22nd 60%

Delicious Fri 22nd 51%

Body+Soul Thu 21st 45%

ENGAGEMENT

The shift in Australia’s focus As Australians begin entering beauty salons, department stores and fashion retailers for the first time in months they are faced with new challenges such as the simple act of trying colour samplers for lipstick - most stores have removed all testers from their displays.

Vogue will be there to guide readers through the new fashion and beauty landscape.

TOP READ ARTICLES* (18 May - 24 May 2020)

* All in news.com.au and state publications

Adapting to the changing marketVogue readers are turning to magazines and books for screen downtime and distancing. Our readers shared they have screen fatigue from working from home and are turning to print for escapism, indulgence and long-form reads.

Working with Optus we launched Vogue Fashion Relief to help Australian designers in need during Covid-19. The two-day online shopping event saw 144 brands and designers take part. The social media campaign reach was more than 10.8M and more than 40% of designers saw sales growth of 25% or more when most fashion retailers were still closed except for online.

FOCUS ON Vogue

Article Name

1 Full list of Target stores that will close or be converted to Kmarts revealed

2 Coronavirus: man gives 52 people virus in 2.5 hours at choir practice

3 Target closes 167 stores in massive company restructure

4 Sun Yang abandoned by China fans, Mack Horton gets apology

5 Coles shopper roasted after Facebook complaint about burger patties

Last week – May 18-24, 2020● Major focus on celebrities and designers● Minor focus on Covid-19 and entertainment

A month ago – April 18-24, 2020● Major focus on beauty and Covid-19 isolation ● Minor focus on celebrity and lifestyle

A year ago – April 20-26, 2019● Major focus on celebrities and fashion● Minor focus on beauty/accessories

T H E C O V I D F I L E S W/C 01.06.20 | 3

Media Landscape

OVERVIEW:This week, Foxtel launched its new streaming service Binge, promising ‘unturnoffable’ shows and movies. Meanwhile, TikTok looks to take a bigger share of Australian ad spend and brands are looking to give practical advice to consumers after weeks of ‘we are here to help’ messaging.

Foxtel rolls out its Binge streaming content play This week, Foxtel launched its new streaming service, Binge. Subscriptions for the new streaming service start at $10 a month with content from WarnerMedia, NBCU, FX, BBC and Sony. Foxtel signed off on a deal with HBO earlier this month, securing rights to popular HBO content such as Game of Thrones, Succession and The Wire.

COMPETITOR CHANNELS BRANDS

Best-in-class ads:

NIKE - Never too far down (here)Part of Nike’s “You can’t stop sport” campaign message, this ad is designed to provide consumers with motivation to persevere through these tough times.May 23, 2020

How brands can take action during this time Research from Kantar’s C-19 Barometer suggests that after being inundated with messages of ‘we are here to help’ in the first 4-6 weeks, brands should now be be giving practical advice to customers and thinking about how they can guide positive change for the future.

There are some key demographic differences. People 55+ are looking for brands to be practical and realistic with advice that can help them now in their everyday life. People aged 18-34 are more interested in seeing how brands have led by example to guide change and their efforts in facing this pandemic (27%).

nbn - home internet help (here)Recognising the increasing importance of remaining connected at home, nbn has provided tips for how to best optimise your connection depending on household type at nbnco.com.au/optimise.May 25, 2020

Australian media companies ad spend share is about to fall According to analysis by Morgan Stanley, the big tech players, social media and emerging players such as TikTok (which Kantar reports has seen a significant jump in usage by 18-34 year old Australians) will take a bigger share of digital ad spend in Australia post Covid-19.

The investment bank’s analysts forecast the share held by domestic media companies – TV, radio, print and outdoor – will shrink, unless they innovate quickly.

Source: AdNews 26 May, 2020

T H E C O V I D F I L E S W/C 01.06.20 | 4

ConsumerImpact

OVERVIEW:As confirmed active cases slip below 500 for the first time in over two months, a sense of normality is slowly returning. Spending in many categories is strengthening, enabled by fewer restrictions, stimulus measures and recovering consumer confidence.

HOW LONG CAN THE CONFIDENCE RALLY CONTINUE?● Consumer confidence improved for the eighth

straight week, up a modest 0.4 percentage points week on week.

● However, 3 of the 5 sub indices went backwards or were flat compared to last week. Weekly improvements have been slowing recently, despite loosening restrictions and sustained good news surrounding the virus domestically.

● Consumers are approaching positive territory regarding major household items, with 35% saying now is a good time to buy, only just behind “Bad time to buy” at 38%.

● Recent trade disputes with China and headlines around weak economic activity are dampening short term economic views.

FEELINGS OF NORMALITY BEGINNING TO RETURN● As students begin to return to classrooms and

restrictions ease across the country, a sense of normality is slowly but surely coming back.

● For the first time since the start of March, Australians are searching more for “weather” updates than for “Coronavirus” updates.

● Commuters are returning to roads across the country, with driving back to levels seen around March 23rd, but remaining 23% lower than at the start of the year. Melbourne’s road traffic has been slower to return than Sydney’s. Public transport remains subdued at -60%.

● CBA Credit and debit card spending in the week ending May 22nd was actually up 3.9% on the same time last year (note, many cash transactions are being replaced by card).

STIMULUS BEING SPENT IN NEGLECTED CATEGORIES● As restrictions ease, many Australians will look

to spend, some of which inspired by stimulus or the $11.1 billion of accessed superannuation.

● Late May has seen spending in some of the worst affected categories show signs of improving. At their lowest points, credit and debit card spending on clothing and footwear was down by 60% YOY in early April, but has returned to parity in recent weeks.

● Spend on home-improvements has shown significant YOY growth for several months, as food and alcohol spends settle back to normal levels following earlier stockpiling.

● Spend in the recreation, education and transport categories has been improving in recents weeks.

ANZ-ROY MORGAN CONSUMER CONFIDENCE

AUSTRALIANS WITH A NUANCED LOVE OF LOCAL● A stronger sense of local affinity has emerged

thanks to social distancing and lockdown measures, but seems to stem more from place than from people.

● 84% of Australians say that local is more important now than before, but only 35% agree that they associate more with their neighbours than before.

● This preference for local does extend to businesses however - 84% say they prefer to shop local and buy from local retailers, and 83% say they are happy to pay more for Australian products.

● The most preferential ways brands can support local communities is by sourcing products and produce locally, manufacturing in Australia and by getting involved in local communities.

GROCERY BRANDS SEEN TO BE DEALING WITH CRISIS BEST● Supermarket brands are seen to be leaders in

dealing with the coronavirus crisis, with Woolworths (18%), Coles (17%) and Aldi (8%) making up 3 of the top 4 brands seen to be doing a good job.

● This reflects the feelings of normality that are returning to the grocery shop - Australian’s feel that their “ability to buy groceries,medications, and household items as needed” is 82% of normal levels, up from 50% in late March.

● Commonwealth Bank (3%) is the only bank or financial brand to feature in the top 10.

● Australia Post, ABC, Bunnings, McDonalds, Telstra and Netflix all also feature in the top 10.

● Convenience, safety measures, helpful acts and adaptation are the main ingredients that inspire consumers.

T H E C O V I D F I L E S W/C 01.06.20 | 5

CulturalImpact

OVERVIEW:Australians are balancing concern and cautious optimism as we reopen the economy. Where some consumers are worried for their finances, there are also moves being made across the board to improve the future post Covid-19, from mental health to small business and beyond.

Brazil COVID concerns result in easing of our China trade tensionBrazil’s worsening Covid-19 crisis is making waves in the commodities world lifting the price of Iron ore by 30%.Brazil is Australia’s major competitor in the iron ore market. The current state of Brazil in crisis is likely to prevent the trade war with China worsening, as Australia is now a crucial supplier to Chinese steel mills which have returned to full production. McKinsey & Co, a management consultancy, estimates that the production disruption in countries such as Brazil and South Africa could see a 5% fall in global iron ore production creating an almost perfect storm for Australian miners.

Federal Government to work on Industrial relations systemPrime Minister Scott Morrison says the Government will look towards an overhaul of Australia's industrial relations system. The PM said he was heartened by the "constructive" approach unions and employers took during the height of the coronavirus pandemic and that the economic recovery presented an opportunity for major change. There will be a lot of work to do for Morrison’s Government as relations between the Liberal party and the Unions are politically opposite. The announced changes form part of the Government's new JobMaker plan aimed at driving the post-pandemic recovery.

ECONOMICALGovernment revise Jobkeeper figures… by $60 BillionThe Government had said more than 6 million workers would receive its $1,500 fortnightly wage subsidy but was forced to concede it would only cover about half that number, after a miscalculation by both the Treasury and the ATO. The Government are trying to find the silver lining by stating that now Australians won’t have to borrow as much, and future generations wouldn’t have as much debt to pay. There are now calls for the program to be extended to include more casuals, as currently a casual staffer would have had to work for over a year with the same employer to receive the benefits.

Amount of Seeker payments in question againJust over one-third of Australians think the JobSeeker allowance should be lowered as the economy improves, new data suggests, despite the payment being due to halve in September. Scott Morrison suggested paying unemployed people $1,100 per fortnight in normal times could amount to a "disincentive" to look for work. Pressure to extend the Seeker and Keeper programs have grown after the Govt’s $60bn overestimate.

SOCIALThe Federal Government injects $48.1M into mental health planThe Federal Government has injected $48.1 million into the development of a mental health plan designed to help Australians who are doing it tough as a result of Covid-19. The implementation of this plan will potentially save many lives and will be helpful in supporting many Australians as we enter our new normal.

Push for increased Post-COVID JobSeeker paymentsExperts have warned that returning Job Seeker welfare payment to pre-Covid levels would be ‘frankly cruel’ potentially plunging millions of Australians into poverty in September. A failure to address this as the economy begins to rebalance could potentially place more pressure on the economy causing many more consumers to become more frugal. In turn, reducing discretionary spending power.

TECHNOLOGICALUS company trials COVID-19 vaccine in AustraliaNovavax has commenced the first phase of their Covid-19 vaccine trial which will be undertaken on volunteers in both Melbourne and Brisbane. Novavax will be testing the safety of the vaccine whilst looking for early signs of the vaccine’s effectiveness. The vaccine has already undertaken animal testing and has shown to be effective in low doses. If the trials are effective Novavax is confident that they will be able to start deploying the vaccine out by the end of this year.

Facebook launches ‘shops’ for 160 million small retail businessesMark Zuckerberg has launched Facebook Shops for 160 million small businesses. Through this new platform retailers will be able to showcase and sell their products directly through their social platforms. In turn opening up many significant opportunities for small businesses and consumers.

POLITICAL

T H E C O V I D F I L E S W/C 01.06.20 | 6

Contents● Finance● FMCG● Automotive● Travel● Telecommunications● Retail● Real Estate

● Education● SMB● Entertainment● Health &

Pharmaceutical ● Sport

Category InsightsIn addition to these

insights, we have category insights including:

Ask your News Corp Australia sales representative for a detailed report

W/C 01.06.2020

T H E C O V I D F I L E S W/C 01.06.20 | 8

Sources● http://www.roymorgan.com/findings/8425-anz-roy-morgan-consumer-confidence-may-26-2020-202005252338● https://www.commsec.com.au/content/dam/EN/ResearchNews/2020Reports/May/ECO_Insights_260520-Consumer_confidence_lifts.pdf● https://www.abc.net.au/news/2020-05-21/road-to-recovery-from-the-covid-19-coronavirus-pandemic/12229514?nw=0● 10.55am: Weather search activity beats COVID-19

https://www.theaustralian.com.au/business/trading-day/trading-day-asx-set-to-open-lower-despite-wall-street-rally/news-story/cfe816d12b0cf52be69821999d521d40?keyevent=10.55am

● https://forethought.com.au/wp-content/uploads/2020/05/Forethought-Australian-Normality-Index-Week-8.pdf● https://www.abc.net.au/news/2020-05-25/coronavirus-early-access-superannuation-young-people/12282546● https://www.commsec.com.au/content/dam/EN/ResearchNews/2020Reports/May/ECO_Insights_260520-Consumer_confidence_lifts.pdf● Social Soup and Pollinate Covid webinar May 27th. https://growthops.com.au/aus-home-research/27-may/● https://forethought.com.au/wp-content/uploads/2020/05/Forethought-Australian-Normality-Index-Week-8.pdf

Consumer Impact

● https://www.forbes.com/sites/timtreadgold/2020/05/25/history-repeats-as-brazil-delivers-another-iron-ore-boom/#27f8914b4f52● https://www.abc.net.au/news/2020-05-26/scott-morrison-industrial-relations-business-unions-coronavirus/12287072● https://www.abc.net.au/news/2020-05-24/coronavirus-jobkeeper-wage-subsidy-josh-frydenberg-60-billion/12280716● https://www.abc.net.au/news/2020-05-27/jobseeker-coronavirus-supplement-survey-one-third-reduce/12288630?section=business● https://www.news.com.au/world/coronavirus/australia/coronavirus-australia-481m-to-mental-health-and-wellbeing-plan/news-story/1ed82e2c376743a5627b70de935555b5● https://www.news.com.au/lifestyle/health/health-problems/coronavirus-in-australia-returning-jobseeker-welfare-payment-to-precovid-level-would-be-frankly-cruel/news-story/559f1d5

30f62557451d637f2ab6e5709

Cultural Impact