We’ve identified W e’ ve segmented The ABC1 a high capital these high capitals classification has group, of which and identified the lost relevance in 1 in 5 are not most valuable today's complex classified as society audience – the ABC1 ‘ Proacti ves’
We’ve identified W e’ ve segmented The ABC1 a high capital these high capitals classification has group, of which and identified the lost relevance in 1 in 5 are not most valuable today's complex classified as society audience – the ABC1 ‘ Proactives ’
Not as easy as you think… Rufus earns £90,000 pa, Ian earns £80,000 pa, Natasha earns £15,000 collects fine wines, reads the Guardian, pa, watches Geordie partner in law firm highly skilled electrician Shore, HR assistant ABC1 NOT ABC1 ABC1 98% got it right 32% got it right 27% got it right Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)
The ABC1 knowledge gap one in ten of media industry planners and almost (12%) 72% buyers claim to have a good two knowledge of this thirds tar get group… identified the ...but correct definition (62%) of an ABC1 Adult mistakenly believe that ...and only affluence defines social grade... Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)
Understanding of ABC1 Adults 1:54 54 mins Video available at: www.channel4sales.com/updatedupmarkets Channel 4 & Kantar Media 2014
and the answer is... Social grade is determined by the profession of 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, ownership 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 other kinds of wealth people are party to.
Not as niche as you think... 1968 2014 What % 24% 34% 44% 54% of Adults are ABC1? Source: Channel 4/eDigital Research Industry survey October 2014: All respondents (n=85)
Problems with current system 1:33 33 mins Video available at: www.channel4sales.com/updatedupmarkets Channel 4 & Kantar Media 2014
We’ve identified W e’ ve segmented The ABC1 a high capital these high capitals classification has group, of which and identified the lost relevance in 1 in 5 are not most valuable today's complex classified as society audience – the ABC1 ‘ Proactives ’
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.
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 Economic classifying ‘upmarket people’ which is more descriptive , Capital 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 Cultural consumers personal tastes and preference: Capital 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 .
Introducing the social DNA High overall amount of capital Everybody has a combination of economic capital and cultural capital. This forms the “overall level of capital” Cultural Economic capital capital dominant dominant We can partition the population in three bands that reflect high , medium and low level of overall capital. Low overall amount of capital Source: GB TGI 2014 Q3. Base All Adults
Introducing the social DNA High overall amount of capital The high capital population is the Cultural Economic combination of these top three social capital capital dominant dominant DNA groups and represents the top third of GB adults. Low overall amount of capital Source: GB TGI 2014 Q3. Base All Adults
Dig a bit deeper... 169 82% of the three high capital groups 142 145 High overall are ABC1s but amount of capital 18% wouldn’t qualify via the Cultural Economic 97 100 103 traditional definition capital capital dominant dominant Low This means that when you target an overall amount ABC1 Adult, you’re potentially not of capital 58 targeting 3 million adults who fit into 55 the top third of society for cultural and economic capital. 29 Source: GB TGI 2014 Q3. Base All Adults
Putting the niche back into upmarkets ABC1 54% C2DE 46% (27.6m) (23.9m) 0% 50% 100% 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 . High Capital Group 33% (17.1m) Source: GB TGI 2014 Q3. Base All Adults
A significant upgrade on the ABC1 audience SAVINGS +20% +13% +45% +25% +37% more likely than ABC1s to say they are comfortable on their present income Source: GB TGI 2014 Q3. Base All adults – Index vs. ABC1s.
Who have money to spend NET Agree ABC1 High Capital I 134 n d 130 e 127 126 x 122 118 117 116 113 112 112 111 109 102 108 108 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 on a meal in products that tastes quality goods things own country something I goods/services a restaurant make life easier whenever I can don’t need Source: GB TGI 2014 Q3. Base Adults 16+.
We’ve identified W e’ ve segmented The ABC1 a high capital these high capitals classification has group, of which lost relevance in and identified the 1 in 5 are not today's complex most valuable classified as society audience – the ABC1 ‘ Proactives ’
Within the Older ‘High Capit al’ group Primes are three 11% (5.6m) segments Proactives Less More Forward Forward Thinking Thinking 12% (6m) Practicals 10.5% (5.4m) Younger Source: GB TGI 2014 Q3.
Introducing the Proactives 1:54 54 mins Video available at www.channel4sales.com/updatedupmarkets
Proactives - Brands
Introducing the Practicals Video available at www.channel4sales.com/updatedupmarkets 2:20 20 mins
Practicals - Brands
Introducing the Primes 2:00 00 mins Video available at www.channel4sales.com/updatedupmarkets
Primes - Brands
To Recap… Older Primes 11% (5.6m) 1. Proactives – Forward thinkers who display high levels of early adopter behaviour Proactives Less More Forward Forward 2. Practicals – Younger, Less forward Thinking Thinking 12% (6m) thinking and display low levels of early adopter behaviour Practicals 3. Primes – Older, less forward thinking 10.5% (5.4m) and display low levels of early adopter behaviour Younger Source: GB TGI 2014 Q3.
Proactives are brand promoters… Likely to recommend product or service to others Proactives Practicals Primes 229 I n 186 183 d 171 166 165 e 123 124 159 122 114 x 115 148 112 144 147 103 105 142 137 132 99 72 64 69 67 61 56 86 30 Financial Home Computers/ TV/Audio Alcoholic drinks Cars Mobile phones Tolietries & Clothes & Household Services appliances Laptops & & visual and apps cosmetics accessories products Tablets equipment Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.
… Commercially receptive Proactives Practicals Primes 140 I n 112 110 d 127 e x 80 76 72 59 51 42 34 16 T end to buy products I often notice products/brands TV ads are interesting I enjoy TV ads from companies who in TV programmes/films to talk about as much as programmes sponsor TV programmes Source: GB TGI 2014 Q3. Base All adults – Index vs. Adults 16+.
Recommend
More recommend
