Where two big industry funds spent their money
Two of Australia’s largest industry funds have confirmed spending millions of dollars on advertising, and marketing with AustralianSuper revealing how much it spent on its Qantas Frequent Flyer membership recruitment effort.
The AustralianSuper Qantas Frequent Flyer campaign cost the big industry fund $732,050 to develop and implement with respect to 2019, $624,356 in broadcasting and publishing costs and delivered 14,029 online applications which resulted in 13,801 contribution members.
This equates to the Frequent Flyer program having generated new members at a cost of around $98 a time.
This compares with AustralianSuper’s confirmation that the same campaign in the current financial year cost $248,736 to develop and implement, $239,468 in broadcasting and publishing costs and generated 5,936 online applications resulting in 3,874 contributing members as at 23 October, this year.
The AustralianSuper data, revealed as a result of questions on notice from the House of Representatives Standing Committee on Economics also revealed the extent of the superannuation fund’s multi-million advertising spend over the past five years starting at just over $11 million in the 2016 financial and rising to just under $19 million last financial year.
It also noted that in each of those years, AustralianSuper had made contributions to Industry Super Australia (ISA) joint marketing campaigns starting at around $3.5 million in 2016 and rising to $5.1 million last financial year.
This compares with the advertising and marketing efforts of big building industry fund, Cbus which revealed that in broadcasting and publication costs alone it had spent over $7.7 million in the 2015 financial year rising to nearly $14 million in the 2019 financial year.
Cbus also revealed that it had consistently spent more than $3 million a year on ISA just marketing campaigns.
The fund also revealed what it had spent on corporate boxes and venue hire, noting that it was the naming rights sponsor of the Gold Coast’s Robina Stadium and that following amendments to section 68A of the Superannuation Industry (Supervision) Act on 5 April, this year, and the introduction of Regulatory Guide 68A “the corporate box is not used for entertaining employers or prospective employers”.
Hostplus, the industry superannuation fund which came to note during the Royal Commission over its expenditure on corporate hospitality revealed that it had spent between $18.3 million in FY15 to $21.6 million in FY18.
In similar fashion to Cbus and AustralianSuper it revealed it had apportioned more than $3 million a year to ISA joint marketing campaigns.
HostPlus said it had not used corporate boxes at sporting events over the last five years but had previously entertained employers, industry partners and stakeholders, through corporate hospitality at sporting venues through its sponsorship arrangements.
“Through these sponsorship benefits Hostplus can utilise tickets and food and beverage packages at sporting events, but these do not include the use of corporate boxes,” it said. “During FY15 to FY19, Hostplus purchased ticket packages, including food and beverage, for the specific use of corporate hospitality at the Australian Tennis Open.”
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