Weve identified W e ve segmented The ABC1 a high capital these - - PowerPoint PPT Presentation

We’ve identified a high capital group, of which 1 in 5 are not classified as ABC1 We’ve segmented these high capitals and identified the most valuable audience – the ‘Proactives’ The ABC1 classification has lost relevance in today's complex society

We’ve segmented these high capitals and identified the most valuable audience – the ‘Proactives’ The ABC1 classification has lost relevance in today's complex society We’ve identified a high capital group, of which 1 in 5 are not classified as ABC1

Rufus earns £90,000 pa, collects fine wines, partner in law firm

ABC1

Natasha earns £15,000 pa, watches Geordie Shore, HR assistant

ABC1

Ian earns £80,000 pa, reads the Guardian, highly skilled electrician

NOT ABC1 Not as easy as you think…

Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)

98% got it right 32% got it right 27% got it right

The ABC1 knowledge gap

...but

• f media industry

planners and buyers claim to have a good knowledge of this target group…

72%

Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)

mistakenly believe that affluence defines social grade...

almost two thirds

(62%)

identified the correct definition

• f an ABC1 Adult

...and only

• ne

in ten

(12%)

Understanding of ABC1 Adults

Channel 4 & Kantar Media 2014

1:54 54 mins

Video available at: www.channel4sales.com/updatedupmarkets

and the answer is...

Social grade is determined by the profession

• f the highest

income earner in the household

It’s no google algorithm

The old world order

“I look up to him because he is upper class, but I look down on him because he is lower class”

1:02 02 mins

Video available at: https://www.youtube.com/watch?v=K2k1iRD2f-c

The one income household

ABC1 came about in an age where most households were of the single earner type. It was not a model designed to reflect the idea that there would ever be multiple incomes within a household widespread across the nation. With the rise of office professions, the number of people within traditionally manual labour jobs has decreased. With less competition, the going rate for today’s plumber or builder is far more handsome than it once was.

Not the whole story

Investments Credit ratings Private pensions Properties

Foreign investments, shares, credit ratings, private pensions,

• wnership of multiple properties – all of which add to an individual or

households wealth, were not viable options to many people. Defining people purely by occupation has ignored the myriad of

• ther kinds of wealth people are party to.

Not as niche as you think...

Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)

1968 2014

24%

What %

• f Adults

are ABC1?

34% 44% 54%

Problems with current system

Channel 4 & Kantar Media 2014

1:33 33 mins

Video available at: www.channel4sales.com/updatedupmarkets

We’ve segmented these high capitals and identified the most valuable audience – the ‘Proactives’ The ABC1 classification has lost relevance in today's complex society We’ve identified a high capital group, of which 1 in 5 are not classified as ABC1

And now it’s time for a change

So we think that it’s time for a change! Although there are problems, ABC1 isn’t dead – it’s still a hugely important trading audience and this won’t change in the foreseeable future. However, we can make it better! The arrival of the smartwatch hasn’t made time less important… but it has made it more modern and more relevant to 2014. So we want a Smart ABC1 for the industry.

Economic Capital Cultural Capital

Introducing the social DNA

So that made us think…what does an upmarket look like in the UK today? We wanted to create a new way of classifying ‘upmarket people’ which is more descriptive, more relevant and actionable for media agencies and advertisers. Given this requirement for the ‘actionable’, we approached Kantar to investigate this possibility by using TGI data. They looked at the two main factors which influence consumers personal tastes and preference: 1. Cultural capital i.e. someone’s general knowledge – this includes social background, academic achievement, cultural practices etc and 2. Economic capital – somebody’s wealth including income, savings, investments, value of property We call these combined factors The Social DNA.

High

• verall

amount

• f capital

Low

• verall

amount

• f capital

Economic capital dominant Cultural capital dominant

Source: GB TGI 2014 Q3. Base All Adults

Introducing the social DNA

Everybody has a combination of economic capital and cultural capital. This forms the “overall level of capital” We can partition the population in three bands that reflect high, medium and low level of overall capital.

High

• verall

amount

• f capital

Low

• verall

amount

• f capital

Economic capital dominant Cultural capital dominant

Source: GB TGI 2014 Q3. Base All Adults

Introducing the social DNA

The high capital population is the combination of these top three social DNA groups and represents the top third of GB adults.

169

Dig a bit deeper...

Source: GB TGI 2014 Q3. Base All Adults

29

82% of the three high capital groups are ABC1s but 18% wouldn’t qualify via the traditional definition

55 103

High

• verall

amount

• f capital

Low

• verall

amount

• f capital

Economic capital dominant Cultural capital dominant

100 145 58 97 142

This means that when you target an ABC1 Adult, you’re potentially not targeting 3 million adults who fit into the top third of society for cultural and economic capital.

Putting the niche back into upmarkets

Source: GB TGI 2014 Q3. Base All Adults

100% 0% 50%

C2DE 46%

(23.9m)

ABC1 54%

(27.6m)

High Capital Group 33% (17.1m)

We’re confident that these high capital’s are the portion of society which are of most value to advertisers. Interestingly, this high capital group represents a third of all adults. This is almost the same number as ABC1s did back in 1968 when the definition was more relevant. This new group puts the niche back into upmarkets.

A significant upgrade on the ABC1 audience

Source: GB TGI 2014 Q3. Base All adults – Index vs. ABC1s.

+20% +13% +45% +25%

+37% more likely than ABC1s to say they are comfortable

• n their present income

SAVINGS

113 112 111 112 108 109 108 102 134 130 127 126 122 118 117 116 ABC1 High Capital

Who have money to spend

Source: GB TGI 2014 Q3. Base Adults 16+.

I tend to go for I enjoy I am prepared I have It’s worth I enjoy owning I buy goods Sometimes I premium rather splashing out to pay more for expensive paying extra for good quality produced in my treat myself to than standard

• n a meal in

products that tastes quality goods things

• wn country

something I goods/services a restaurant make life easier whenever I can don’t need

NET Agree

I n d e x

We’ve segmented these high capitals and identified the most valuable audience – the ‘Proactives’

The ABC1 classification has lost relevance in today's complex society

We’ve identified a high capital group, of which 1 in 5 are not classified as ABC1

Within the ‘High Capital’ group are three segments

Older Younger More Forward Thinking Less Forward Thinking

Primes

11% (5.6m)

Practicals

10.5% (5.4m)

Proactives

12% (6m)

Source: GB TGI 2014 Q3.

Introducing the Proactives

1:54 54 mins

Video available at www.channel4sales.com/updatedupmarkets

Proactives - Brands

Introducing the Practicals

2:20 20 mins

Video available at www.channel4sales.com/updatedupmarkets

Practicals - Brands

Introducing the Primes

2:00 00 mins

Video available at www.channel4sales.com/updatedupmarkets

Primes - Brands

To Recap…

Older Younger More Forward Thinking Less Forward Thinking

Primes

11% (5.6m)

Practicals

10.5% (5.4m)

Proactives

12% (6m)

Source: GB TGI 2014 Q3.

• 1. Proactives – Forward thinkers who

display high levels of early adopter behaviour

• 2. Practicals – Younger, Less forward

thinking and display low levels of early adopter behaviour

• 3. Primes – Older, less forward thinking

and display low levels of early adopter behaviour

Practicals Primes

Proactives are brand promoters…

Likely to recommend product or service to others

Proactives

229 144 132 186 114 103 183 123 64 171 122 69 166 124 67 165 137 99 159 115 30 148 105 61 147 112 56 142 86 72

Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.

Financial Home Computers/ TV/Audio Alcoholic drinks Cars Mobile phones Tolietries & Clothes & Household Services appliances Laptops & & visual and apps cosmetics accessories products Tablets equipment

I n d e x

T end to buy products from companies who sponsor TV programmes I often notice products/brands in TV programmes/films I enjoy TV ads as much as programmes TV ads are interesting to talk about

140 72 16 127 76 51 112 59 34 110 80 42

Proactives Practicals Primes

Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+. I n d e x

…Commercially receptive

Proactives Practicals Primes

Health/ Parmaceutical products Alcoholic drinks Household products Food T

• lietries/cosmetics

Non-alcoholic drinks

38

Snacks Confectionary

170 159 106 153 118 92 151 129 97 134 103 69 171 144 42 133 124 48 126 139 118 134 50

Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.

And have a greater brand Repertoire

Heavy repertoire: Over 3 brands in each category

I n d e x

They have premium tastes

Proactives Practicals Primes

Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.

I tend to go for premium rather than standard goods/services

98

I am prepared to pay more for products that make life easier Product reviews have a major influence on my purchasing decisions It’s worth paying extra for quality goods

77

If a trust a brand, I buy it without looking at the price

189 174 160 139 128 111 103 67 118 113 123 107 98

I n d e x

The best place to find the Proactives is

• n Channel 4

Proactives Practicals Primes

Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.

104 96 95 95 103 102 107 147 141 127 117 128 109 114 118

I n d e x

And now you can plan campaigns against these audiences

Access to the three High Capital groups via:

• TGI
• TGRs
• More information, videos

and nickable charts at:

We’re making these audiences actionable for agencies and advertisers

www.channel4sales.com/updatedupmarkets

In summary

We’ve segmented these high capitals and identified the most valuable audience – the ‘Proactives’

The ABC1 classification has lost relevance in today's complex society

We’ve identified a high capital group,

• f which 1 in 5

are not classified as ABC1