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Where Did Your $197 Million Go?

In the intricate domain of financial services, the relentless battle for attention takes place daily.

Behind closed doors, industry super funds engage in a high-stakes maneuver, allocating large sums in advertising and marketing endeavours aimed at solidifying the allegiance of their members.

Let us take a look at the intricate web of figures and strategies that orchestrate this elaborate marketing spectacle.

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Dictionary with a closeup of the word lies.

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The Surge of Industry Super Fund Advertising

In the year 2018, industry super funds collectively funnelled an astronomical $37 million into their advertising pursuits.

Industry Super Australia (ISA) spearheaded this extravagant display, lavishing $9.4 million in the 12 months leading to June 30, constituting a formidable 34% increase from the preceding year.

An estimated substantial $3 million was strategically allocated to secure prime advertising slots.

However, delving into media spending figures alone provides only a partial glimpse, as these numbers conveniently omit the expenses incurred in the actual creation of advertisements.

Industry insiders estimated that crafting impactful ads, exemplified by the iconic 'compare the pair' series, exacts a staggering toll, hovering around the princely sum of $500,000.

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APRA's Unyielding Scrutiny

The Australian Prudential Regulation Authority (APRA), with an unwavering gaze, meticulously scrutinised the marketing expenditures of 12 funds, appraising a colossal sum of $87 million.

In a surprising turn of events, certain funds found themselves struggling to justify why such large sums of money were needed for marketing purposes.

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Extravagant Corporate Hospitality

Beyond the conventional realm of advertising, industry super funds immerse themselves in the realms of corporate hospitality for their growing list of stakeholders.

For instance, HostPlus, peeling back the layers of its activities, disclosed a history of utilising corporate boxes at sporting events for the lavish entertainment of employers, industry partners, and stakeholders.

The entry fee for these suites commences at a princely $134,000 annually, exclusive of catering, for a 20-person suite according to figures from Suncorp Stadium.

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Crowd of people having drinks at a networking event.

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The Web of Union Connections

The eight most prominent industry superannuation funds collectively disbursed an astounding $6 million in sponsorships, promotions, and directors' fees to unions in the last financial year as part of a massive $197 million marketing spend.

Leading the charge, Cbus, a construction industry fund, directed the majority of its $2.6 million to the Construction, Forestry, and Maritime Employees Union.

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Top Extravagant Spendings in 2023

In 2023, AustralianSuper spearheaded the charge, orchestrating an eye-watering $39.7 million in promotions, marketing, and sponsorships.

Australian Retirement Trust closely trailed, injecting a staggering $35.1 million into its marketing budget.

Astonishingly, HostPlus, despite being a third of AustralianSuper's size, nearly mirrored its lavish marketing expenditure, pouring a staggering $30 million into promotional marketing.

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