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The SAARFThe SAARF
Universal LSMUniversal LSM®®
"YOUR "YOUR WINDOW TO WINDOW TO THE WORLD THE WORLD
OF OF RESEARCH"RESEARCH"
Industry Presentation On Industry Presentation On The SAARF Universal LSMThe SAARF Universal LSM®®
2006RA2006RA
ByBy
Michelle BoehmeMichelle Boehme
Tshifhiwa MulaudziTshifhiwa Mulaudzi
Paul HauptPaul Haupt
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM33
ContentsContents
- Introduction- Introduction
- History/development of LSM - History/development of LSM®® - Early LSM - Early LSM®® - 1993/1995/2000 LSM - 1993/1995/2000 LSM®®
- New SAARF Universal LSM - New SAARF Universal LSM®® - Conclusions - Conclusions
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM44
The The TTripartite ripartite NNature Of ature Of SAARFSAARF
SAARFSAARF
MarketersMarketersMedia Media OwnersOwnersCINEMACINEMA
INTERNET INTERNET
OUTDOOROUTDOOR
PRINTPRINT
RADIO RADIO
TVTVAdvertising Advertising AgenciesAgencies
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM55
SAARF Living Standards SAARF Living Standards Measure (LSMMeasure (LSM®®) - 1) - 1
The SAARF LSM is just one type of The SAARF LSM is just one type of segmentation tool based on wealth, segmentation tool based on wealth, access and geographic indicatorsaccess and geographic indicators
Because wealth is a very stable and Because wealth is a very stable and dependable differentiator and the dependable differentiator and the AMPS variables are particularly AMPS variables are particularly suited to this, this approach was suited to this, this approach was retained in the design of the new retained in the design of the new SAARF Universal LSMSAARF Universal LSM®®
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM66
The SAARF Universal LSMThe SAARF Universal LSM®® and its and its predecessors are Target Marketing Tools predecessors are Target Marketing Tools that are also used for the selection of that are also used for the selection of appropriate media, therefore, no media appropriate media, therefore, no media related variables are used in its related variables are used in its constructionconstruction
No personal attributes (except in 1995 No personal attributes (except in 1995 and 2000 LSMs)and 2000 LSMs)
Income never usedIncome never used
SAARF Living Standards SAARF Living Standards Measure (LSMMeasure (LSM®®) - 2) - 2
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM77
Rationale For SegmentationRationale For Segmentation
WHY CLASSIFY PEOPLE ?WHY CLASSIFY PEOPLE ?
Some Some people tend to behavepeople tend to behave in a in a different different fashion from othersfashion from others
Some people tend to beSome people tend to behave in have in similarsimilar fashionfashion
ThusThus
Try to group similar people togetherTry to group similar people together Try to distinguish between differentTry to distinguish between different
peoplepeople
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM88
IInn StatisticalStatistical TermsTerms
Maximise variation between Maximise variation between groupsgroups
Minimise variation within groupsMinimise variation within groups
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM99
FFor Advertising/Marketing or Advertising/Marketing PurposesPurposes
Identify theIdentify the target market / audience target market / audience as as accurately as possibleaccurately as possible
Aim is to reach 100% of target marketAim is to reach 100% of target market, i.e. , i.e. Maximise reachMaximise reach
With 0% With 0% (minimum) (minimum) wastagewastage
ThereforeTherefore
Important to know your targetImportant to know your target market market Important to know which tools areImportant to know which tools are
availableavailable
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1010
Traditional Traditional ApproachApproach
Single variables, usually Single variables, usually demographics (profiles)demographics (profiles)
Shortcoming ?Shortcoming ?
Useful, but often not strongUseful, but often not strong didifferentiators on their ownfferentiators on their own
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1111
Solution?Solution?
Find the best Combination of Find the best Combination of variables to:variables to:•group people group people with with similar similar behaviour behaviour togethertogether
•distinguish between peopledistinguish between people with with differentdifferent behaviour behaviour
LSMLSM index index developed to find the best developed to find the best combination of variables from AMPScombination of variables from AMPS®®
AA MultivariateMultivariate differentiatordifferentiator
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1212
Important StimuliImportant Stimuli The urban/rural debateThe urban/rural debate Community size classificationCommunity size classification Lever Brothers’ experienceLever Brothers’ experience Technological developmentsTechnological developments - -
sophisticatedsophisticated hardware/ hardware/powerful powerful softwaresoftware
AMPSAMPS®® data not fully utilised – data not fully utilised – mainly single variable cross mainly single variable cross tabulations were usedtabulations were used
UK and USA - realised importance of UK and USA - realised importance of variables other than demographicsvariables other than demographics
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1313
It’s Not Just About DemographicsIt’s Not Just About Demographics
Admap December 1990Admap December 1990
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1414
DDevelop an index whichevelop an index which ddifferentiatesifferentiates better than any single demographicbetter than any single demographic
plusplus It must have broad application across It must have broad application across
the total marketthe total market Must be simple to use, easy to link to Must be simple to use, easy to link to
other surveysother surveys Must be stable over time, but Must be stable over time, but
sensitive enough to registersensitive enough to register changeschanges
Main Main Aim Of The SAARF Aim Of The SAARF LSMLSM®®
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1515
0
10
20
30
40
50
1994 2000 2006RA
SAARF SAARF LSMLSM®® – National – National
%
1993 LSMs1993 LSMs
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1616
0
10
20
30
40
50
1994 2000 2006RA
SAARF SAARF LSMLSM®® – Gauteng – Gauteng
%
1993 LSMs1993 LSMs
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1717
0
10
20
30
40
50
1994 2000 2006RA
SAARF SAARF LSMLSM®® – KZN – KZN
%
1993 LSMs1993 LSMs
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1818
0
10
20
30
40
50
1994 2000 2006RA
SAARF SAARF LSMLSM®® – Western Cape – Western Cape
%
1993 LSMs1993 LSMs
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM1919
Common MisunderstandingsCommon Misunderstandings
Income not an LSMIncome not an LSM®® variable variable LSM is not a political construct but LSM is not a political construct but
harnesses the power of multivariate harnesses the power of multivariate statisticsstatistics
Only AMPS variables are usedOnly AMPS variables are used It is a misconception that income is a It is a misconception that income is a
better differentiator than wealth.better differentiator than wealth. That LSMThat LSM®® on its own is the only on its own is the only
differentiator required for effective differentiator required for effective segmentationsegmentation
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2020
0
10
20
30
40
50Femina Cosmopolitan
SU-LSMSU-LSM®® – Monthly Magazines – Monthly Magazines
SAARF AMPS 2006RA
2001 LSMs2001 LSMs
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2121
0
10
20
30
40
50
Bona Caravan&Outdoor life Cosmopolitan
Age – Monthly MagazinesAge – Monthly Magazines
SAARF AMPS 2006RA
2001 LSMs2001 LSMs
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2222
0
20
40
60
80
100
Bona Caravan&Outdoor life Cosmopolitan
Gender - Monthly MagazinesGender - Monthly Magazines
SAARF AMPS 2006RA
2001 LSMs2001 LSMs
Bought Lottery Tickets By SU-LSMBought Lottery Tickets By SU-LSM®® – Past 4 – Past 4 WeeksWeeks
Bought Lottery Tickets By SU-LSMBought Lottery Tickets By SU-LSM®® – Past 4 – Past 4 WeeksWeeks
0
20
40
60
80
100
2004 40.5 9.1 24 34.4 41.9 48 53 54.5 54.4 53.8 51.2
2005RA 37.6 10 19.2 30.5 39.6 45.1 47.9 47 49.1 49.5 46.2
2006RA 34.5 10.1 16.3 28 36.2 39.5 43.8 44 42 44.8 42.2
TOTAL LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10
SAARF AMPS 2004, 2005RA & 2006RAPopulation, all South Africans 16+: 30 903 000
%
2001 LSMs2001 LSMs
Cellphone Penetration Within Cellphone Penetration Within SU-LSMSU-LSM®®Cellphone Penetration Within Cellphone Penetration Within SU-LSMSU-LSM®®
0
2732.7
42.1
49.5
59.4
69.774.4
80.2
90.5
0
20
40
60
80
100
Penetration 0 27 32.7 42.1 49.5 59.4 69.7 74.4 80.2 90.5
LSM 1
LSM 2
LSM 3
LSM 4
LSM 5
LSM 6
LSM 7
LSM 8
LSM 9
LSM 10
%
SAARF AMPS 2006RA
AMPSAMPS® 2006RA 2006RA
6.7
6.7
7.1
8.2
11.8
12.6
15.7
21.8
0 10 20 30 40 50
YFM 99.2
Motsweding FM
Ikwekwezi FM
Thobela FM
Total Community Radio
METRO FM
Ukhozi FM
Lesedi FM
% Listenership: SU- LSM% Listenership: SU- LSM®® 1-5 1-5 Gauteng (1) Gauteng (1)
Source: RAMS Wave 6 2006
2.6
2.9
3.5
3.5
3.6
3.9
4.8
5.1
0 10 20 30 40 50
Munghana Lonene FM
94.7 Highveld
Umhlobo Wenene FM
Phalaphala FM
Thetha FM 100.6
Jacaranda FM
Jozi FM
Kaya FM
% Listenership: SU-LSM% Listenership: SU-LSM®® 1-5 1-5 Gauteng (2) Gauteng (2)
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2727
6.7
6.9
7.2
8.9
10
11.1
12.7
14.7
0 10 20 30 40 50
Ukhozi FM
Kaya FM
YFM 99.2
94.2 JACARANDA FM
Lesedi FM
Total Community Radio
METRO FM
94.7 Highveld Stereo
% Listenership: SU-LSM% Listenership: SU-LSM®® 6-10 Gauteng (1) 6-10 Gauteng (1)
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2828
1.7
1.9
2
3.5
4.1
4.6
5.4
5.9
0 10 20 30 40 50
Radiokansel/Pulpit
SAFM
Classic FM
702 Talk Radio
5FM
Thobela FM
RadiosonderGrense
Motsweding FM
% Listenership: SU-LSM% Listenership: SU-LSM®® 6 -10 Gauteng (2) 6 -10 Gauteng (2)
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM2929
Approximately 70 AMPSApproximately 70 AMPS®® variables selected variables selected onon logical logical groundsgrounds
Analysed multi-dimensionally by Analysed multi-dimensionally by applyingapplying::
•principle component analysisprinciple component analysis•stepwise regression analysisstepwise regression analysis
LSMLSM®® Input Variables Input Variables
Looking At The SkyLooking At The Sky
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3131
Early SAARF Early SAARF LSMLSM®®
LSMs were stronger LSMs were stronger differentiator than any single differentiator than any single demographicdemographic
BUTBUT
Variables and weights were Variables and weights were adjusted annuallyadjusted annually
ConsequentlyConsequently Trending not possibleTrending not possible
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3232
1993 SAARF 1993 SAARF LSMLSM®®
Decided to keep variables and Decided to keep variables and weights constant from year to weights constant from year to yearyear
1993 and 1994 SAARF LSM1993 and 1994 SAARF LSM®® comparablecomparable
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3333
1993 SAARF 1993 SAARF LSMLSM®® Variables Variables
1.1. Fridge/freezerFridge/freezer
2.2. No water or No water or electricityelectricity
3.3. Polisher/vacuum Polisher/vacuum cleanercleaner
4.4. Non-Non-Supermarket Supermarket shoppershopper
5.5. No car in hhNo car in hh
6.6. TV setTV set
7.7. Microwave ovenMicrowave oven
8.8. Rural dweller (not Rural dweller (not PWV & W.cape)PWV & W.cape)
9.9. Hi-fi/music centreHi-fi/music centre
10.10. No domesticNo domestic
workerworker
11.11. Washing Washing machinemachine
12.12. Sewing Sewing machinemachine
13.13. MetropolitanMetropolitan
dwellerdweller
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3434
1995 SAARF 1995 SAARF LSMLSM®®
In 1995 the list of variables was In 1995 the list of variables was expanded to 20 to include some expanded to 20 to include some personal variables, namely:personal variables, namely:
Non supermarket shopper Non supermarket shopper No financial services / No financial services / insurance usedinsurance used
No credit facilityNo credit facility
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3535
1995 SAARF 1995 SAARF LSMLSM®® Variables Variables
1.1. Flush toiletFlush toilet2.2. Fridge/freezerFridge/freezer3.3. Hot running water Hot running water 4.4. Polisher/vacuum cleanerPolisher/vacuum cleaner5.5. Non-Supermarket Non-Supermarket
shopper (personal)shopper (personal)6.6. No car in hhNo car in hh7.7. TV setTV set8.8. Microwave ovenMicrowave oven9.9. No financial services No financial services
usedused10.10. No insurance No insurance
policypolicy
WhiteWhite = personal = personal
11.11. Rural dweller (outside Rural dweller (outside Gauteng & W.Cape)Gauteng & W.Cape)
12.12. Hi-fi/music centreHi-fi/music centre13.13. No domestic workerNo domestic worker14.14. Washing machineWashing machine15.15. Sewing machineSewing machine16.16. Metropolitan dwellerMetropolitan dweller17.17. Household supermarket Household supermarket
shoppershopper18.18. No credit facilityNo credit facility19.19. Hut dwellerHut dweller20.20. Home telephoneHome telephone
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3636
2000 SAARF 2000 SAARF LSMLSM®® VVariables - 1ariables - 1
1.1. Built-in kitchen sinkBuilt-in kitchen sink2. Flush toilet2. Flush toilet3. Polisher/vacuum cleaner3. Polisher/vacuum cleaner4. Supermarket shopper (personal)4. Supermarket shopper (personal)5. Fridge/freezer5. Fridge/freezer6. No car in household6. No car in household7. No financial services used7. No financial services used8. Hot running water8. Hot running water9. No insurance9. No insuranceNOTE: New variables in whiteNOTE: New variables in white
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3737
2000 SAARF 2000 SAARF LSMLSM®® VVariables – 2ariables – 2
10. 10. Hi-Fi/music centreHi-Fi/music centre 11. Home telephone 11. Home telephone 12. 12. Electric stove/hotplateElectric stove/hotplate 13. Video cassette recorder 13. Video cassette recorder 14. Sedan car 14. Sedan car 15. Credit/retail card facility15. Credit/retail card facility 16. TV set 16. TV set 17. Microwave oven 17. Microwave oven 18. Washing machine 18. Washing machine 19. Hut 19. Hut 20. No domestic worker 20. No domestic worker
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3838
NEW SAARF NEW SAARF UNIVERSAL LSMUNIVERSAL LSM®®
AUGUST 2001AUGUST 2001
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM3939
Shortcomings Of The 1995 And Shortcomings Of The 1995 And 2000 SAARF LSMs2000 SAARF LSMs
Some of the variables used in the Some of the variables used in the 1995 and 2000 SAARF LSMs 1995 and 2000 SAARF LSMs introduced Gender and Age biasesintroduced Gender and Age biases
Young adults and females were less Young adults and females were less likely to use financial services and likely to use financial services and have credit facilities than Maleshave credit facilities than Males
Equally Males were less likely to be Equally Males were less likely to be supermarket shopperssupermarket shoppers
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4040
Other Shortcomings Of The Other Shortcomings Of The 1995 And 2000 SAARF LSMs1995 And 2000 SAARF LSMs
The 1995 and 2000 SAARF LSM’s The 1995 and 2000 SAARF LSM’s could be used for AMPS/RAMS, could be used for AMPS/RAMS, where only one person per where only one person per household is interviewed household is interviewed
For TAMS, where households rather For TAMS, where households rather than individuals are sampled, only than individuals are sampled, only household variables could be used household variables could be used (1993 SAARF LSM)(1993 SAARF LSM)
This meant that the LSMs used in This meant that the LSMs used in AMPS/RAMS and TAMS were not AMPS/RAMS and TAMS were not comparable. comparable.
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4141
2000 SAARF 2000 SAARF LSMLSM®® VariablesVariables Not Carried ForwardNot Carried Forward
Personal Variables:Personal Variables:
Supermarket shopper (personal)Supermarket shopper (personal)
No financial services usedNo financial services used
No insuranceNo insurance policy policy
Credit facility including retail cardCredit facility including retail card
Other:Other:
No car in householdNo car in household
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4242
Other Factors That Influenced Other Factors That Influenced The Design Of The New SAARF The Design Of The New SAARF
Universal LSMUniversal LSM®®
Conflict between the need for Conflict between the need for trends on the one hand, and trends on the one hand, and sensitivity to change on the sensitivity to change on the otherother
Concern that the LSM does not Concern that the LSM does not differentiate sufficiently at the differentiate sufficiently at the Top end.Top end.
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4343
New SAARF Universal LSMNew SAARF Universal LSM®® - - The BriefThe Brief
The new SAARF Universal LSMThe new SAARF Universal LSM®® was designed to:was designed to:
Make it a more effective Make it a more effective segmentation tool,segmentation tool,
Remove known biases,Remove known biases, Make it universally applicableMake it universally applicable
to all SAARF products, and to all to all SAARF products, and to all future AMPS/RAMS/TAMSfuture AMPS/RAMS/TAMS®® surveyssurveys
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4444
New SAARF Universal LSMNew SAARF Universal LSM®® – – The ProcessThe Process
Extensive analysis by Prof Jacky Extensive analysis by Prof Jacky Galpin - presented to the joint SAARF Galpin - presented to the joint SAARF Councils during July 2001.Councils during July 2001.
The councils decided to implement The councils decided to implement the new SAARF Universal LSMthe new SAARF Universal LSM®® as as from SAARF AMPS 2001Afrom SAARF AMPS 2001A
The SAARF TAMS panel implemented The SAARF TAMS panel implemented the new SAARF Universal LSMthe new SAARF Universal LSM®® in in August 2001August 2001
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4545
Naming The New SAARF Naming The New SAARF LSMLSM®®
The design of the new SAARF Universal LSM The design of the new SAARF Universal LSM also lead to the new name:also lead to the new name:
1.1. It applies universally to all respondents, It applies universally to all respondents, i.e. it is designed so that all respondents i.e. it is designed so that all respondents 16+ can be fairly indexed with no biases16+ can be fairly indexed with no biases
2.2. It is designed to be universally It is designed to be universally applicable to all of SAARF’s products, applicable to all of SAARF’s products, AMPS, RAMS and TAMSAMPS, RAMS and TAMS
3.3. It is designed to be universally It is designed to be universally applicable to all future surveys, i.e. it applicable to all future surveys, i.e. it will not be necessary to have a new LSM will not be necessary to have a new LSM every second or third year like in the every second or third year like in the pastpast
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4646
New SAARF Universal LSMNew SAARF Universal LSM®® – – The Improvements - 1The Improvements - 1
In the design of the new SAARF In the design of the new SAARF Universal LSMUniversal LSM®® a number of a number of improvements have been built in:improvements have been built in:
1.1. To allow finer differentiation, the To allow finer differentiation, the number of variables has been number of variables has been increased to 29increased to 29
2.2. Variables have been carefully chosen Variables have been carefully chosen to avoid biases being introduced and to avoid biases being introduced and to ensure that they are universally to ensure that they are universally applicable to all respondentsapplicable to all respondents
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4747
New SAARF Universal LSMNew SAARF Universal LSM®®– – The Improvements - 2The Improvements - 2
3.3. The variables have been chosen The variables have been chosen such as to be universally applicable such as to be universally applicable to AMPS/RAMS/TAMSto AMPS/RAMS/TAMS
4.4. The scale has been extended to 10 The scale has been extended to 10 groups to allow finer segmentationgroups to allow finer segmentation
5.5. The groups at the top end of the The groups at the top end of the scale from LSM 7 and up has been scale from LSM 7 and up has been made smaller to allow finer made smaller to allow finer segmentation of this important segmentation of this important market segmentmarket segment
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4848
New SAARF Universal LSMNew SAARF Universal LSM®® – – The Improvements - 3The Improvements - 3
6.6. As South African society develops, As South African society develops, the groups can be extended beyond the groups can be extended beyond 10. This will obviate the need for a 10. This will obviate the need for a new LSM every now and thennew LSM every now and then
7.7. This new feature of the design will This new feature of the design will enable trending from one year to enable trending from one year to the other, even when new variables the other, even when new variables are introducedare introduced
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM4949
New SAARF Universal LSMNew SAARF Universal LSM®® – – The Improvements - 4The Improvements - 4
8.8. The proven stability of the measure The proven stability of the measure will thus be complemented with a will thus be complemented with a sensitivity to the changing sensitivity to the changing landscapelandscape
Note:Note:
No comparisons should be made to No comparisons should be made to previous LSMprevious LSM® ® scales as this is a scales as this is a new benchmark. new benchmark.
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5050
15 Variables From The 2000 15 Variables From The 2000 LSMLSM®®
1.1. Electric stove / Electric stove / hotplatehotplate
2.2. Microwave ovenMicrowave oven
3.3. Flush toilet in Flush toilet in
house or on plothouse or on plot
4.4. No domestic No domestic
workerworker
5.5. VCR in householdVCR in household
6.6. Vacuum cleaner / Vacuum cleaner /
floor polisherfloor polisher
7.7. Traditional hutTraditional hut8.8. 1/more sedan cars 1/more sedan cars9.9. Washing machine Washing machine10.10. TV set TV set11.11. Home Telephone Home Telephone12.12. Hi-Fi/music centre Hi-Fi/music centre13.13. Built-in kitchen Built-in kitchen
sink sink 14.14. Hot running water Hot running water15.15. Fridge/freezer Fridge/freezer
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5151
The 14 New VariablesThe 14 New Variables
1.1. Deep freezerDeep freezer
2.2. Water in home / on Water in home / on plotplot
3.3. Mnet / DStv Mnet / DStv subscriptionsubscription
4.4. DishwasherDishwasher
5.5. ElectricityElectricity
6.6. Sewing machineSewing machine
7.7. GautengGauteng
8.8. Western CapeWestern Cape
9.9. No cellphone inNo cellphone in
householdhousehold
10.10. PC in homePC in home
11.11. Tumble dryerTumble dryer
12.12. Less than two radioLess than two radio
sets in Householdsets in Household
13.13. Non-urban outsideNon-urban outside
Gauteng/WesternGauteng/Western
CapeCape
14.14. Home securityHome security
serviceservice
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5252
SU- LSMSU- LSM®® Update 2004 Update 2004
Variables Dropped (4)Variables Dropped (4)
Traditional hutTraditional hut ElectricityElectricity GautengGauteng Western CapeWestern Cape
New Variables (4)New Variables (4)
House/cluster house, town houseHouse/cluster house, town house Metropolitan dwellerMetropolitan dweller DVD playerDVD player One Cellphone in householdOne Cellphone in household
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5353
Weights Of Some Variables - 1Weights Of Some Variables - 1
Built in kitchen sinkBuilt in kitchen sink 0.1330630.133063Electric stoveElectric stove 0.1301340.130134Hot running waterHot running water 0.1766970.176697Motor vehicle in HHMotor vehicle in HH 0.1537060.153706Fridge/freezerFridge/freezer 0.1195280.119528
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5454
Weights Of Some Variables - 2Weights Of Some Variables - 2
No domestic worker No domestic worker - 0.291472- 0.291472 1 Cellphone in household 1 Cellphone in household - 0.115220 - 0.115220 No cellphone in No cellphone in
householdhousehold - 0.213628- 0.213628 Less than two radio setsLess than two radio sets
in Household in Household - 0.289211- 0.289211
CONSTANTCONSTANT -0.230409-0.230409
SAARF Universal LSMSAARF Universal LSM®® Groups Groups
: Significant decrease
Penetration Average Household Income
2004
% 2005RA
% 2006RA 2004
2005RA
2006RA
SU-LSM 1 9.1 7.6 6.1 R 878 R 905 R1 003
SU-LSM 2 12.7 12.2 12.2 R 1 075 R 1 093 R 1 210
SU-LSM 3 14 13 12.6 R 1 407 R 1 417 R 1 509
SU-LSM 4 14.7 14.9 14.9 R 1 783 R 1 870 R 1 924
SU-LSM 5 13.1 13.5 13.5 R 2 427 R 2 495 R2 674
SU-LSM 6 14 14.5 14.4 R 4 063 R 4 207 R 4 400
SU-LSM 7 6.2 7.1 7.8 R 6 437 R 6 466 R6 880
SU-LSM 8 4.8 5.2 5.7 R 8 458 R 9 247 R 9 304
SU-LSM 9 5.9 6.4 6.7 R11 516 R11 951 R12 647
SU-LSM 10 5.3 5.5 6.0 R18 664 R18 955 R19 974
: Significant increase
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5656
Number Of People In Each SU-Number Of People In Each SU-LSMLSM®®
LSM 1LSM 1LSM 2LSM 2LSM 3LSM 3LSM 4LSM 4LSM 5LSM 5LSM 6LSM 6LSM 7LSM 7LSM 8LSM 8LSM 9 LSM 9 LSM 10LSM 10
PopulationPopulation1 895 0001 895 0003 784 0003 784 0003 878 0003 878 0004 603 0004 603 0004 176 0004 176 0004 454 0004 454 0002 413 0002 413 0001 759 0001 759 0002 085 0002 085 0001 857 0001 857 000
RespondentRespondentss
4994991 1781 1781 6461 6462 4692 4692 9542 9544 2604 2602 9212 9212 4282 4283 2813 2813 1773 177
% Pop% Pop6.16.112.212.212.612.614.914.913.513.514.414.47.87.85.75.76.76.76.06.0
SAARF AMPS 2006RA
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5757
Mpumalanga
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Northern Cape
North West
Western Cape
Limpopo
Lsm 1- 4Lsm 1- 4Lsm 5Lsm 5Lsm 6Lsm 6Lsm 7Lsm 7Lsm 8Lsm 8Lsm 9Lsm 9Lsm 10Lsm 10
% of Province that is Rural% of Province that is RuralMore than 60 More than 60 %%31 to 60 %31 to 60 %
11 to 30 %11 to 30 % up to 10 %up to 10 %
SAARF Universal SAARF Universal LSMLSM®® By Province By Province
SAARF AMPS 2006 RA
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5858
LSM 1LSM 1 (6.1%) (6.1%) DEMOGRAPHICSDEMOGRAPHICSFemaleFemale16 - 24, 50+16 - 24, 50+Primary CompletedPrimary CompletedRuralRuralTraditional HutTraditional Hut
R1 003 per monthR1 003 per month
MEDIAMEDIARadio a major channel of medium Radio a major channel of medium communication communication - Commercial radio; mainly African - Commercial radio; mainly African Language Services (ALS) Language Services (ALS)
GENERALGENERALMinimal access to servicesMinimal access to servicesMinimal ownership of durables, Minimal ownership of durables, except radio setsexcept radio sets
Summary Of New SAARF SU-LSMSummary Of New SAARF SU-LSM® ®
Groups Groups (from SAARF AMPS 2006RA)(from SAARF AMPS 2006RA)LSM 2LSM 2 (12.2%) (12.2%) DEMOGRAPHICSDEMOGRAPHICSFemaleFemale16 - 3416 - 34Primary CompletedPrimary CompletedRuralRuralHouse/Matchbox houseHouse/Matchbox house
RR1 2101 210 per month per month
MEDIAMEDIARadio: Commercial, mainly ALSRadio: Commercial, mainly ALS
GENERALGENERALWater on plotWater on plotMinimal ownership of durables,Minimal ownership of durables,except radio sets and stovesexcept radio sets and stoves
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM5959
LSM 3LSM 3 ( (12.6%12.6%) ) DEMOGRAPHICSDEMOGRAPHICS16 - 2416 - 24Up to some highUp to some high RuralRuralHouse/Matchbox houseHouse/Matchbox house
R1 509 per monthR1 509 per month
MEDIAMEDIARadioRadio: commercial mainly : commercial mainly ALS ALS stations, Ukhozi FM, Umhlobo stations, Ukhozi FM, Umhlobo Wenene FM Wenene FM TV: TV: SABC 1SABC 1OutdoorOutdoor
GENERALGENERALElectricity, water on plotElectricity, water on plotMinimal ownership of durables, Minimal ownership of durables, except radio sets and stovesexcept radio sets and stovesActivities – lottery ticketsActivities – lottery tickets
Summary Of New SAARF SU-LSMSummary Of New SAARF SU-LSM®® Groups Groups (from SAARF AMPS 2006RA)(from SAARF AMPS 2006RA)
LSM 4LSM 4 (1 (144.9%).9%)
DEMOGRAPHICSDEMOGRAPHICS
16 - 4916 - 49
Schooling up to some highSchooling up to some high
R1 924 per monthR1 924 per month
MEDIAMEDIA
RadioRadio: commercial mainly : commercial mainly ALS stations, ALS stations, Metro fmMetro fm
TVTV: : SABC 1,2, ETVSABC 1,2, ETV
OutdoorOutdoor
GENERALGENERAL
Electricity, water on plot, flush toiletElectricity, water on plot, flush toilet
TV sets, hi-fi/radio set, electric hotplates, TV sets, hi-fi/radio set, electric hotplates, fridgefridgeActivities - stokvel meeting, Activities - stokvel meeting, lottery tickets, eat and buy take away lottery tickets, eat and buy take away foodfood
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6060
Summary Of New SAARF SU-LSMSummary Of New SAARF SU-LSM®® Groups Groups (from (from SAARF AMPS 2006RA)SAARF AMPS 2006RA)
LSM 6LSM 6 (14.4%) (14.4%)DEMOGRAPHICSDEMOGRAPHICSMaleMale25-4925-49Matric and higherMatric and higher, , UrbanUrban
R4 400 per monthR4 400 per month
MEDIAMEDIAWide range of commercialWide range of commercial//community community radioradioTVTV: : SABC 1,2,3, e.tvSABC 1,2,3, e.tvDailyDaily//Weekly Newspapers, MagazinesWeekly Newspapers, MagazinesCinema Cinema & & OutdoorOutdoorGENERALGENERALElectricity, hot running water, flush Electricity, hot running water, flush toilet toilet Ownership of a number ofOwnership of a number ofdurables plusdurables plus cell phonecell phoneParticipated in a numberParticipated in a numberof activitiesof activities
LSM 5LSM 5 (1 (13.5%3.5%))
DEMOGRAPHICSDEMOGRAPHICS
MaleMale
16-4916-49
Up to matricUp to matric, , UrbanUrban
R2 674 per monthR2 674 per month
MEDIAMEDIA
RadioRadio: commercial mainly : commercial mainly ALS ALS stationsstations, , Metro fmMetro fm
TVTV: : SABC 1,2,3, e.tvSABC 1,2,3, e.tv
Daily/Weekly Newspapers, MagazinesDaily/Weekly Newspapers, Magazines
OutdoorOutdoor
GENERALGENERAL
Electricity, water, flush toiletElectricity, water, flush toilet
TV sets, hi-fi/radio set, stove, fridgeTV sets, hi-fi/radio set, stove, fridge
ActivitiesActivities:: started exercising, painted started exercising, painted interior of house, stokvel meeting, interior of house, stokvel meeting, purchase take-away food, lottery purchase take-away food, lottery ticketstickets
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6161
Summary Of New SAARF SU-LSMSummary Of New SAARF SU-LSM®® Groups Groups (from (from SAARF AMPS 2006RA)SAARF AMPS 2006RA)
LSM 8LSM 8 (5.7%) (5.7%) DEMOGRAPHICSDEMOGRAPHICSFemaleFemale35+35+Matric and higherMatric and higher, , UrbanUrban
R9 304 per monthR9 304 per month
MEDIAMEDIAWide range of commercialWide range of commercial//community community radioradioTVTV: : SABC 1,2,3, e.tv, M-Net, DStvSABC 1,2,3, e.tv, M-Net, DStvDailyDaily//Weekly Newspapers, MagazinesWeekly Newspapers, MagazinesAccessed internet 4 weeksAccessed internet 4 weeksCinemaCinema & & OutdoorOutdoorGENERALGENERALFull access to servicesFull access to servicesFull ownership of durables, incl. DVD, PC Full ownership of durables, incl. DVD, PC and satellite dishand satellite dishIncreased participation inIncreased participation inactivitiesactivities
LSM 7LSM 7 ( (7.87.8%)%)
DEMOGRAPHICSDEMOGRAPHICS
25+25+
Matric and higherMatric and higher, , UrbanUrban
R6 880 per monthR6 880 per month
MEDIAMEDIA
Wide range of Wide range of commercialcommercial//community radiocommunity radio
TVTV: : SABC 1,2,3, e.tv, M-NetSABC 1,2,3, e.tv, M-Net
DailyDaily//Weekly Newspapers, MagazinesWeekly Newspapers, Magazines
Accessed internet 4 weeksAccessed internet 4 weeks
CinemaCinema & & OutdoorOutdoor
GENERALGENERAL
Full access to servicesFull access to services
Increased ownership of durables plus Increased ownership of durables plus motor vehiclemotor vehicle
Participation in all activitiesParticipation in all activities
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6262
Summary Of New SAARF SU-LSMSummary Of New SAARF SU-LSM®® Groups Groups (from (from SAARF AMPS 2006RA)SAARF AMPS 2006RA)
LSM 10LSM 10 (6.0%) (6.0%) DEMOGRAPHICSDEMOGRAPHICSMale, 35+ Male, 35+ Matric and higherMatric and higher, , UrbanUrban
R19 974 per monthR19 974 per month
MEDIAMEDIAWide range of commercialWide range of commercial//community community radioradioTVTV: : SABC 2,3, e.tv, M-Net, DStvSABC 2,3, e.tv, M-Net, DStvDailyDaily//Weekly Newspapers, MagazinesWeekly Newspapers, MagazinesAccessed internet 4 weeksAccessed internet 4 weeksCinemaCinema & & OutdoorOutdoorGENERALGENERALFull access to servicesFull access to servicesFull ownership of durables,Full ownership of durables,Incl. PC, DVD and satellite dishIncl. PC, DVD and satellite dishIncreased participation inIncreased participation inactivities,activities, e exclxcluding uding stokvelstokvelmeetingsmeetings
LSM 9LSM 9 (6.7%) (6.7%) DEMOGRAPHICSDEMOGRAPHICSFemaleFemale, , 35+35+Matric and higherMatric and higher, , UrbanUrban
RR12 64712 647 per month per month
MEDIAMEDIAWide range of Wide range of commercialcommercial//community radiocommunity radioTVTV: : SABC 2,3, e.tv, M-Net, DStvSABC 2,3, e.tv, M-Net, DStvDailyDaily//Weekly Newspapers, MagazinesWeekly Newspapers, MagazinesAccessed internet 4 weeksAccessed internet 4 weeksCinemaCinema & & OutdoorOutdoorGENERALGENERALFull access to servicesFull access to servicesFull ownership of durables,Full ownership of durables,Incl. PC, DVD and satellite dishIncl. PC, DVD and satellite dishIncreased participation in activities, Increased participation in activities, exclexcluding uding stokvel meetingsstokvel meetings
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6363
Conclusions - 1Conclusions - 1
Variation between groups is Variation between groups is maximised.maximised.
Variation within groups is Variation within groups is minimised.minimised.
BUTBUT Respondents in one group do not Respondents in one group do not
differ in all respects from those in differ in all respects from those in other groups.other groups.
Respondents in one group are not Respondents in one group are not all all exactly exactly the same.the same.
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6464
Conclusions - 2Conclusions - 2
It’s clear that the new SAARF It’s clear that the new SAARF Universal LSMUniversal LSM®® is a significant is a significant improvement on the previous oneimprovement on the previous one
HoweverHowever
LSM is only one of many measuresLSM is only one of many measuresPreferably, you should know about Preferably, you should know about all these tools all these tools
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6565
Conclusions - 3Conclusions - 3
Be aware of what is available and Be aware of what is available and select the one that fits your select the one that fits your purposes bestpurposes best
Develop your own or modify an Develop your own or modify an existing one to suit you betterexisting one to suit you better
The market is not static but dynamic The market is not static but dynamic and changes can take place rapidlyand changes can take place rapidly
A model which is useful now may A model which is useful now may soon be outdated if it is not revised soon be outdated if it is not revised regularlyregularly
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6666
Conclusions - 4Conclusions - 4
Remember that there are many Remember that there are many other powerful differentiators in other powerful differentiators in AMPS that should be used in AMPS that should be used in conjunction with the LSMs, e.g. conjunction with the LSMs, e.g. Life-stages, Education, Mothers Life-stages, Education, Mothers with children, Household with children, Household purchaser, Large item purchaser, Large item purchaser, Occupation, Gender, purchaser, Occupation, Gender, Language, Family size and AgeLanguage, Family size and Age
THE SOUTH AFRICAN THE SOUTH AFRICAN ADVERTISING RESEARCH ADVERTISING RESEARCH
FOUNDATIONFOUNDATION(SAARF)(SAARF)
TTHANK YOUHANK YOU
Visit us atVisit us at
www.saarf.co.zawww.saarf.co.za
0.9
1.1
2.1
5.8
6.1
7.6
7.9
68.3
0 20 40 60 80 100
Imbokodo Community Radio
Ligwalagwala FM
Umhlobo Wenene FM
iGagasi 99.5 FM
Total Community
East Coast Radio
METRO FM
Ukhozi FM
% Listenership - % Listenership - SU-LSM™ 1-5SU-LSM™ 1-5 in in KwaZulu-NatalKwaZulu-Natal
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM6969
2.4
3.7
6.8
7.6
9.9
12
23
28.2
0 10 20 30 40 50
RSG
5FM
Total Community
Lotus fm
Metro FM
iGagasi 99.5 FM
Ukhozi FM
East Coast Radio
% Listenership - % Listenership - SU-LSM™ 6-10SU-LSM™ 6-10 in in KwaZulu-NatalKwaZulu-Natal
Source: RAMS Wave 6 2006
3.1
3.5
4.5
8.4
11.3
15
20.3
24.5
37
0 20 40 60 80 100
Heart 104.9 FM
Bush Radio
Good Hope FM (GHFM)
METRO FM
Radio Zibonele 98.2 FM
Radiosondergrense (RSG)
KFM
Tot Community
Umhlobo Wenene FM
% Listenership - % Listenership - SU-LSM™ 1-5SU-LSM™ 1-5 in in Western Cape - 1Western Cape - 1
Source: RAMS Wave 6 2006
0.4
0.5
0.9
1.1
1.1
1.4
1.9
0 20 40 60 80 100
Algoa FM
CCFM
Radio 786
Radiokansel/Pulpit
KC FM
Ukhozi FM
Tygerberg
% Listenership - % Listenership - SU-LSM™ 1-5SU-LSM™ 1-5 in in Western Cape - 1Western Cape - 1
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7272
4
4.7
6.4
7.1
12.3
12.5
15.6
20.8
25.9
0 10 20 30 40 50
Radio 786/VOC
Umhlobo Wenene FM
5FM Music
Tygerberg
Radiosondergrense (RSG)
Good Hope FM (GHFM)
Heart 104.9 FM
Total Community Radio
KFM
% Listenership - % Listenership - SU-LSM™ 6-10SU-LSM™ 6-10 in in Western Cape - 1Western Cape - 1
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7373
1.2
1.3
1.5
1.5
1.6
2
2.8
3.7
0 10 20 30 40 50
Bush Radio
Ziboneli
RadioKansel/Pulpit
KC FM
SAFM
CC FM
Metro FM
567 Cape Talk
% Listenership - % Listenership - SU-LSM™ 6-10SU-LSM™ 6-10 in in Western Cape - 1Western Cape - 1
Source: RAMS Wave 6 2006
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7474
0
10
20
30
40
50
lsm
1
lsm
2
lsm
3
lsm
4
lsm
5
lsm
6
lsm
7
lsm
8
1994 2000 2006RA
SAARF LSM – Northern CapeSAARF LSM – Northern Cape
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7575
0
10
20
30
40
50
1994 2000 2006RA
SAARF LSM – Free StateSAARF LSM – Free State
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7676
0
10
20
30
40
50
1994 2000 2006RA
SAARF LSM – Eastern CapeSAARF LSM – Eastern Cape
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7777
0
10
20
30
40
50
1994 2000 2006RA
SAARF LSM – MpumalangaSAARF LSM – Mpumalanga
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7878
0
10
20
30
40
50
1994 2000 2006RA
SAARF LSM – LimpopoSAARF LSM – Limpopo
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)
SAARF UNIVERSAL LSMSAARF UNIVERSAL LSM7979
0
10
20
30
40
50
1994 2000 2006RA
SAARF LSM – North-WestSAARF LSM – North-West
%
1993 weights1993 weights
Sample size: 14 498 (’94), 35 069 (’00), 24 813 (’06)Population, all South Africans 16+: 24 539 000 (’94), 28 488 000 (’00), 30 903 000 (’06)