MEMORANDUM. TO: Liberal Party of Australia FROM: Beast Digital DATE: March 22, 2018 RE: Winning in Australia, Online and Off

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1 MEMORANDUM TO: Liberal Party of Australia FROM: Beast Digital DATE: March 22, 2018 RE: Winning in Australia, Online and Off Thank you for the opportunity to share our thoughts about your coming campaign. As an American firm with a track record of domestic and international success, we are excited to apply our skills, systems and insights in Australia. Our roster of successful clients in the US includes Senators, Governors, many members of Congress, and some of the leading corporate brands in the nation. Last year, we executed a digital content and advertising strategy that propelled the Free National Movement in the Bahamas to the greatest landslide victory in the history of that nation s parliamentary elections. We also maintain several long-term relationships with incumbent members of Congress - unusual for firms in our space. We ve helped several members weather the storm of difficult election cycles and retain the trust of their constituencies. We hope to do the same for the Turnbull government. As you know, the expectation of a constant campaign is higher than ever before. 24/7 connectivity creates insatiable need for quick hits of news, hot takes and calls to action. In a word: content.

2 But content alone won t persuade and activate voters. It must resonate with them on an individual level. It must spur offline action and genuine understanding. The message must be tailored to the medium. We succeed for leading brands by winning battles of ideas. Our focus is the intersection of emerging movements, politics and culture. We are experts in Instant Perception, a new reality that requires brands - especially those in the political space - to think and act quicker than ever before. New Realities Several new realities about how information is distributed and consumed define how we approach political communication. Facebook, Instagram, Snapchat and Twitter are replacing traditional TV networks as a source for news and entertainment. Google, leveraging search advertising and YouTube pre-roll, has long since surpassed traditional media companies in revenue. To the surprise of many, 2016 was the first time Facebook has surpassed the revenues of the major television networks in the United States. This is a worldwide trend we expect to continue, even if not platform-specific to Facebook.

3 Thus, we believe three realities define the current media landscape and directly impact your coming campaign. Reality #1: Attention is more fractured than ever. Infinite noise means a lack of genuine connections. It is not enough to merely communicate a message. We must connect with supporters on a more meaningful level, and build steadily on that foundation over time. We must build audiences for our content and share stories, not simply deploy messages to screens in Melbourne. Reality #2: Faith in institutions is at an all-time low. Here in America, only 6% of voters approve of Congress as a whole, all other government institutions besides military and police hardly do better. We note that Edelman s Trust Index shows lower levels of trust in government in Australia. We see a consistent theme throughout liberal democracies worldwide: no longer do constituents look up to their elected officials because they hold positions of power; often just the opposite. Reality #3: The mobile revolution is fully realized. Smartphones are now the dominant platform for consuming , Facebook and the web. With everything we create, our first question is How do mobile users experience this content? One side-effect of the mobile revolution is that every spare second pumping petrol, standing in line at the grocery store or waiting to pick kids up from school is now spent consuming content that informs and entertains. Consumption of information in digestible bites is a reorientation for content producers in campaigns. No longer can we rely on a short series of 30 second ads accompanied with a few pieces of mail deployed immediately before election day. We must enter the stream of information early, and remain there over a sustained period.

4 We will rigorously test and iterate our content and advertising choices to build these audiences over time - and our targets and strategies will evolve. Our Role To Advance The Liberal Party s Strategic Goals We pride ourselves on being in the trenches partners. We look forward to integrating deeply with our on-the-ground partners to ensure each message we deploy is consistent with how Australians would communicate one to one. Our team is ready to: Execute an integrated content strategy that leverages digital assets for the benefit of the entire campaign. Build robust social media audiences by creating powerful content that inspires action, engagement and sharing. We will launch landing pages, polls, petitions, surveys, and other tools that create stronger relationships and lead to action. Maximize engagement and raise money by building the plans and programs necessary to grow your subscriber base and convert audiences into supporters invested in our cause. We combine the best in copywriting and creative with technical tools to ensure compelling, actionable messages are properly delivered. We will host your data and create all the custom list segmentations required. Get the most branding value from your web properties by updating on a continuous basis with news and positive media coverage. Deploy and manage digital advertising by employing the latest tools, technology, and our relationships to ensure your campaign receives the most precise and creative targeting with best-possible pricing. We develop all creative assets for the digital advertising program in-house, and we are platform

5 agnostic. We deploy resources on platforms that will provide the campaign with the greatest value and political return. Leverage the power of digital video to build brand awareness, energize supporters and educate voters about the benefits of our cause. We optimize video for digital-specific consumption with subtitles and visuals that are compelling with or without sound. We also ensure the right audiences engage with it by integrating all deployments with your campaigns broader political and data strategy. Digital Video as an Essential Tactic for Winning Stories Increasingly, feeding the beast of the internet requires a robust digital video program - distinct from essential efforts on television. For clarity, we define digital video as follows: Video that can be produced quickly Low-cost relative to TV advertising Does not require a shoot or the candidate s time Is primarily or exclusively distributed through digital channels like social media and pre-roll advertising The Turnbull government is already doing good work incorporating Facebook Live into its regular content cadence. We would hope to maximize opportunities for engagement by incorporating video into all aspects of the campaign, to achieve these goals: Make acquisition more eye-catching on social media platforms. Increase click-through rates in by inviting people to watch a video. Message the party s key points in a compelling and memorable way. Consistently deploy Facebook Live videos for key campaign events, or tactical face-to-camera messaging opportunities.

6 That s why you ll find on this page compilation of some of our favorite creative work, rendered in video format. In summation, we re fast. We contribute our expertise every day. We take ownership of your message. And we re all in to win, every day. We d be thrilled to speak to you in greater depth about your needs and the best staffing structure to reach your goals.