Author Archives: Pam Allison

Who’s Watching Sports in LA?

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Now that the Los Angeles Kings have won their first Stanley Cup, this seems like a great time to look at who the sports fans are in LA and where they live.  Of course, each major sport has a slightly different type of fan – though some are quite similar.  This analysis looks at consumers who watch hockey, basketball, baseball, and football on television in the Los Angeles CBSA (Core Based Statistical Area).

Hockey

Of course LA Kings fans area all over the LA area – especially during a winning season.  The LA Kings aren’t the only team in the LA CBSA. Anaheim Ducks are also in the CBSA.    About 10% of US consumers watch hockey on television.  In LA just 8% of consumers watch hockey on TV. Who are the consumers most likely to watch and where do they live?

There are several areas in the LA CBSA with likely hockey fans.  There are a lot of likely fans located just east of Anaheim.  These are likely Anaheim Ducks fans.  Closer to LA the neighborhoods with the highest likelihood of hockey fans are places like Edwards AFB, Lake Hughes, Santa Clarita, Acton, and Pacific Palisades.  The area around the University of Southern California has a lot of fans as well.

Index of Watching Ice Hockey on TV – Los Angeles

To better understand sports fans, we can use a tapestry segmentation to classify consumers.  Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The most avid hockey fans are Dorms to Diplomas.  The neighborhoods where this segment is dominant have a likelihood of watching hockey on television of 150 or above.  This means that someone who lives in that neighborhood is 1.5 times more likely than the average American to watch hockey on TV.

Several tapestry segments have a higher than average index for watching hockey on television.  They are Boomburbs, Cozy and Comfortable, In Style, Laptops and Lattes, Main Street USA, Retirement Communities, Sophisticated Squires, Suburban Splendor, Top Rung, and Wealthy Seaboard Suburbs.  The neighborhoods where each of these segments is dominant have an index of 125 or higher for watching hockey on television.  This means that residents of these neighborhoods are 1.25 times more likely to watch hockey than the average American.  Boomburbs neighborhoods, for example, are home to busy, affluent young families.  The median age is 36.1 years old.  This population is primarily white.

A few segments have very low indexes for watching hockey on TV.  Neighborhoods of, Las Casas, Rural Bypass Southern Satellites, and Urban Villages have an index of 50 or less.

Baseball

The Dodgers and Angels are a big part of the culture here in southern California with fans very divided, often, on who they root for.  Fans can be extremely passionate.  While neither LA team has won a World Series title in a while – that doesn’t stop the passionate fans.  In the US, 23% of the population watches baseball on television.  In LA, that number is 22% – so we are just below the national average.  Where do those passionate fans live?

Baseball fans are really all over the city – at least the ones that watch it on television.   There are few areas with low indexes – below 75.  There is likelihood in most neighborhoods that people do watch baseball on television.  The highest index in the LA CBSA is just 146.  These zip codes are 92617 (Irvine) and 90089 (USC).  Other top zip codes are 92055 and 93524, which are both locations of military bases (Camp Pendleton and Edwards AFB).

Index of Watching Baseball on TV – Los Angeles

While it doesn’t seem that any particular group is significantly more passionate about baseball than others, there are a few that are a bit more likely to watch it on television.  They are Boomburbs, Dorms to Diplomas, Military Proximity, Pleasant-Ville, Prosperous Empty Nesters, Sophisticated Squires, and Wealthy Seaboard Suburbs.   Each of these neighborhoods has an index of 125 or higher for watching baseball on television.  No neighborhood has an index higher than 147.

Residents of Military Proximity neighborhoods, which have some of the highest indexes, are young, married, and just beginning parenthood.  More than three-fourths of the labor force are on active duty or have civilian jobs on military bases.  The median household income is $41,240.

Southwestern Families are not big consumers of baseball on television.  The index for those neighborhoods is 50 or less.   These families live in the southwest and about 83% of them are Hispanic.

Football

NFL Football is certainly described as the all-American sport.  About 30% of the US population watches it on television each weekend during the season.  This is higher than any of the other sports discussed in the blog.  This could be due to the fanaticism, the culture around the sport, or the fact that it is a much shorter season so there is more hype in a shorter amount of time.  Or it is just more fun to watch – at least according to the fans.  In Los Angeles, just 25% of the population watches football on television.  This may be due, of course, to the fact that we don’t have a local team to root for.  The closest team is the San Diego Chargers, but that’s still 120 miles away and just too far for us to root for.  Hopefully with the potential of Farmers Field (fingers crossed) to bring a team to LA that will change.  In the meantime, there are still fans here.

Football fans live all around the LA CBSA.  A couple of zip codes have a very high likelihood of people watching football on television over the weekend.  Similar to the other sports discussed here, the top zip codes are 92055 and 93524, which are Camp Pendleton and Edwards AFB.   Where aren’t people watching?  Well, in the middle of the Los Angeles area.   The lowest index is in the 91210 zip code.  The index there is 41 meaning people there are less than half as likely as the average American to watch football on TV on a weekend.

Index of Watching Football on TV – Los Angeles

Residents of Dorms to Diplomas and Military Proximity neighborhoods are most likely to watch football on television.  The indexes for these neighborhoods are 150 or higher meaning they are 1.5 times more likely to watch football on television than the average American.  Both of these tapestry segments are very young.  Additionally, they are part of the same LifeMode and Urbanization groups.  LifeMode groups are based on lifestyle and lifestage.  Urbanization groups are based on geographic and physical features along with income.   The Dorms to Diplomas and Military Proximity are part of the Scholars & Patriots LifeMode group and the Metro Cities II Urbanization group.  Boomburbs neighborhoods also have a high index for those who watch football on television.  Those neighborhoods have an index of 125 or higher.

Who doesn’t watch?  Residents of Urban Melting Pot.  The index for those very diverse neighborhoods is 50 or less.  This means they are less than half as likely to watch football on television as the average American.

Basketball

Basketball in LA was very exciting this last season with both of our teams make the NBA playoffs (and of course losing in the same around unfortunately).  It certainly made residents much more involved in the playoffs than in years where just one team has made it.  In the US, 19% of the population watches pro basketball on television.  In LA, it’s, well, the same – 19%.  We, as a city, are on average.

The most avid basketball viewers live the zip codes 90089 (near USC) and 92617 (Irvine).  The indexes for these neighborhoods are 161 and 160, respectively.   The zip codes in LA with the lowest indexes are 90001, 90003, 90023, 90201, 90270, and 93040. Each of these have an index of 78 meaning that residents in those zip codes are about 25% less likely than the average American to watch basketball on TV.

Index of Watching Pro Basketball on TV – Los Angeles

The tapestry segment, like in the case of many other sports that watches basketball the most on television is Dorms to Diplomas.  The residents of this segment have an index of 150 or higher.  Many of these residents are students, so they have a lot of time on their hands.  Residents of Boomburbs, City Strivers, Enterprising Professionals, Family Foundations, Metro City Edge, Modest Income Homes, and Silver and Gold are also likely viewers of basketball on TV.  The index in these neighborhoods is 125 or higher meaning residents living there are 1.25 times more likely than the average American to watch basketball on television.

Southwestern Families is the segment that is least likely to watch basketball on television.  The index in those neighborhoods is 50 or less.  There are very few neighborhoods in LA though that is part of that segment.

Biggest Sports Fans

The biggest sports fans in the US come from the Dorms to Diplomas segment.  This group has an index of 150 or above for the likelihood of watching basketball, football, and hockey on television.  Only residents of Military Proximity of an index of 150 or higher for any sport viewing on television – football.  The Boomburbs tapestry segment is interesting.  In those neighborhoods, they have an index of 125 or higher for the likelihood of watching baseball, basketball, football, and hockey on television.  Clearly these are just sports lovers across the board, as a whole.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Ice Cream – Who Buys It?

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Now that summer is here, people start to think more and more about ice cream. Though many people eat it year-round, there’s something about eating ice cream on a hot summer’s day.  Certainly there is the nostalgia of eating it as a kid while on summer vacation but it seems popular as ever now. How much do people spend on it?  Who eats it?

Ice Cream Spending

The average American household spends approximately $75.46 per year on ice cream.  Many zip codes with really hot weather have averages much higher than this but some have much lower.  The biggest spenders on ice cream are on the eastern seaboard and in California.  The zip code with the highest average spend per household is 07078 in Short Hills, NJ. They spend $213.40 per year, on average.

What do we know about the households that spend so much on ice cream?  One method to classify consumers is through tapestry segmentation.  Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The tapestry segments that spend the most on ice cream are Top Rung, Connoisseurs, Suburban Splendor, and Wealthy Seaboard Suburbs.  More than 90% of the neighborhoods where these are dominant the average household spending on ice cream is $100 per year or more.  Top Rung households are actually the biggest spenders. 93% of the neighborhoods where that segment is dominant have an average of $150 or more spent on ice cream per year.  That’s a lot of ice cream!  Hopefully they will invite me over to have some sundaes!

There are some groups that spend very little on ice cream.  90% or more of the City Commons, Modest Income Homes, and Southwestern Families spend, on average, $50 or less per household per year on ice cream.  Each of these segments have very low median incomes ranging from $16,830 to $28,307.  Most likely they are spending their money on things much more needed items.

Convenience Stores

People buy ice cream at lots of different locations including grocery stores, ice shops, warehouse stores, and convenience stores. A little less than 8% of the population buys at least some of their ice cream convenience stores.  Who are they?  Where do they live?

Consumers that live in the southern part of the US, in general, are more likely to purchase ice cream at convenience stores.  This could be because they are simply more likely to purchase ice cream in general (since it’s warmer throughout out the year) or that it is cultural.

The tapestry segments that are most likely to purchase ice cream at convenience stores are City Commons, City Dimensions, Inner City Tenants, Industrious Urban Fringe, International Marketplace, and Rural Bypass.  Each of these neighborhoods have an index of 150 or higher.  This means that residents of these neighborhoods are 1.5 times more likely to purchase ice cream at a convenience store.  In City Commons neighborhoods, the index is 200 or higher.   City Commons neighborhoods are in large metropolitan areas, mainly in the South and Midwest and are comprised of single-parent families or singles who live alone.  They have a median age of 26.7 years and a median household income is $16,339.

One method of looking at populations is through LifeMode and Urbanization groups.  Each tapestry segment consists of one of these.  LifeMode summary groups are based on lifestyle and lifestage.  Urbanization summary groups are based on geographic and physical features along with income.  While there is no trend for ice cream and convenience stores among the Urbanization groups, there is one a LifeMode group.  62% of the Global Roots neighborhoods have an index of 150 or higher for purchasing ice cream at convenience stores.  Global Roots’ residents are very diverse and are young, earn modest incomes, and tend to rent in multiunit buildings.

Why Does this Matter?

Knowing how much people spend and where people purchase a particular item can help companies figure out their distribution and marketing strategies.    This information can show locations of opportunity.  There may be neighborhoods where consumers are likely to buy but don’t because the products simply isn’t available there.  Companies wanting to distribute complimentary items can use this information to find out where best to distribute – they can understand where their customers are already going.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Junk Food – Who Eats It?

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Americans love junk food – perhaps too much.  Disney announced yesterday that it is going to limit junk food ads on its kids-targeted stations and only advertise products with minimum nutritional standards.  (link) This is important as nutrition has decreased and obesity has increased.  According to Esri, the average American household spends $101.45 annually on candy and gum.  That’s a lot of sugar!  Who is buying the most?  Is there certain candy that is more attractive to a certain type of person?  Are there areas or specific types or people that organizations can target advertising and healthcare to reduce this consumption?

The highest amount of spending on candy and gum per household is on the eastern seaboard and a few California coastal cities in California.  This shows that although many Californians are healthy, many like to eat junk food too.  In these areas, people spend at least $150 annually on candy and gum – and as much as $351.50.  One of the zip codes that has one of the highest average amounts per on junk food is 07078, which is in Short Hills, NJ.

One method to classify consumers is through tapestry segmentation.  Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The tapestry segments that spend the most, on average, on junk food are Top Rung, Connoisseurs, and Suburban Splendor.   95% of neighborhoods where Top Rung is the dominant tapestry segment spend $200 or more annually on junk food.  Residents of Top Rung neighborhoods are mature, married, highly educated, and wealthy.  At least 95% of the neighborhoods where Connoisseurs and Suburban Splendor residents are dominant spend at least $150 or more per year, on average, on junk food.  Residents of both of these neighborhoods have median incomes of over $120,000.

The tapestry segments that spend the least on junk food, on average per year, are City Commons, Modest Income Homes, and Southwestern Families.  At least 97% of the neighborhoods where those are dominant spend an average $75 or less annually.

The type of candy people like varies across the board.  Although I don’t have data for specific brands, data is available for candy categories.

Hard Roll Candy

Hard roll candy is things like Lifesavers and Werther’s candy.  Basically candy that you suck on.  The areas where people are most likely to purchase it are in various parts of Arizona, South Dakota, and a few areas around the south.  One of the zip codes with the highest indexes for purchasing hard candy is 38631, which is in Friars Point, MS.  Its index is 188 meaning a household in this area is 1.88 times more likely than the average American to purchase hard roll candy.  The dominant tapestry group in this zip code is Modest Income Homes.

Certain tapestry segments seem to like hard candy more than others.  The tapestry segments Modest Income Homes, Metro City Edge, City Dimensions, Family Foundations, City Commons, and Urban Rows all have indexes of 150 or higher.  This means that residents of these segments are 1.5 times more likely than the average American to purchase hard roll candy.   City Dimensions residents, for example, are young with a median age of 29.5 years.  They are a diverse group with nearly half white, one-fourth black, and one-third Hispanic. Their median household income is $26,383.

Prepackaged Loose Candy

Many consumers like to purchase pre-packaged loose candy.  This enables them to choose from multiple varieties so they have choices when eating the candy.  There are very few places that have high index for prepackaged loose candy.   One of the places with the highest indexes in 19142 in Philadelphia, PA with an index of 138 meaning a resident of that zip code is 1.38 times more likely than the average American to buy prepackaged loose candy.

A few tapestry segments standout in having more residents interested in prepackaged loose candy than others.  They are Metro City Edge, Modest Income Homes, Urban Rows, City Commons, and Crossroads. The index for each of these segments is 125 or higher meaning they are 1.25 times more likely than the average American to purchase prepackaged loose candy.  The first four segments are also big consumers of hard roll candy.  Crossroads neighborhoods, the segment without big consumers of hard roll candy, are growing communities in small towns in the South, Midwest, and West. They have a median age of 33.6 years; nearly half are younger than 45. One in five is Hispanic, a higher proportion than the United States.

Several tapestry segments stand out as having few residents interested in purchasing prepackaged loose candy.  They all have an index of 75 or less meaning they are 25% less likely than the average American to purchase loose candy.  The segments are Dorms to Diplomas, Laptops and Lattes, Top Rung, Trendsetters, Urban Villages, Urban Chic, and City Lights.

Regular Sized Candy

Regular sized candy is purchased by all types of consumers.  In fact, there is little variation throughout the US in terms of likelihood to purchase.  Zip code 36115 in Montgomery, Alabama has one of the highest indexes of 123. This means a resident there is just 23% more likely to purchase regular-sized candy, which is pretty close to average.

Because the indexes for regular candy don’t vary much, tapestry segmentation doesn’t really work.  In fact, all zip codes have indexes between 82 and 124.  For candy manufacturers – it just means they need to better understand exactly which type they are buying since size doesn’t matter in this case.

King Size

Many consumers love to buy king-sized candy as it is, well, bigger.  And it is often a better “deal” than regular sized candy – at least for the pocketbook (not so much the belly though).  There are a handful of zip codes where king sized candy is more popular than others.  Interestingly, this includes some zip codes in Alaska (they need the warmth there?) as well as in Arizona, Louisiana, and South Dakota. One of the zip codes with the highest indexes is 92055, which is camp Pendleton, CA.  The index there is 205 meaning residents are 205 times more likely than the average American to purchase king sized candy.

The tapestry segments that are most likely interested in purchasing king sized candy are Metro City Edge, Urban Rows, City Commons, Inner City Tenants, Military Proximity, and Modest Income Homes.  This is very similar to the tapestry segments who like to buy hard roll candy and prepackaged candy. The exceptions are Inner City Tenants and Military Proximity.  These groups seem more interested in king sized candy.  Inner City Tenants residents are a microcosm of urban diversity; their population is represented primarily by white, black, and Hispanic cultures.  Their median household income is $30,873.  Military Proximity residents are young, married, and beginning parenthood.  More than three-fourths of the labor force are on active duty or have civilian jobs on military bases.

What does all this mean?  Well, it means that some groups eat or want candy or junk food more than others.  The tapestry groups are not necessarily segmented by weight or obesity but this analysis can help you identify who is likely buying junk food, which can aid in advertising (and where to offer) more healthy alternatives.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Fast Food – What’s Most The Most Likely Visited Restaurant in a Zip Code?

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Updated 5/31/2012

As a follow-up to the blog Fast Food – Who Eat’s Where? many were curious as to the most popular fast food restaurant by zip code.  Although restaurants like McDonalds are very popular nationwide, they aren’t necessarily the most popular on a local level.  In fact, there are only a handful of zip codes in the United States where McDonalds is the most popular.  Rather, many local or regional chains are the more likely choice with consumers.

Taco Bell, Subway, Wendy’s, and KFC – though popular nationwide like McDonald’s are similarly less likely to be the restaurant of choice on a local level.  In fact, none of these chains are most likely to be visited at least once in the last six months in more than 10 zip codes, so they were not included in this map.  Rather, chains such as Hardees are more likely to be visited on a local level, as displayed above.  Captain D’s is very popular in the Midwest towards the east.  Panera is very popular on the eastern seaboard and Carl’s Jr is popular in California.

Part of what is interesting about this, is some chains are very popular in areas where they don’t have many restaurants – or maybe even any restaurants.  This can mean a couple of things.  First, people travel to other areas to frequent them – or always make sure they visit the restaurant when they are in nearby cities that have locations.  One example is Captain D’s in the Omaha, NE Core-Based Statistical Area (CBSA).  There are no Captain D’s in the CBSA, but there are in nearby Kansas City, MO and other towns relatively close by.  It may also mean that people who live in one area and are part of the same tapestry segment as another area are more likely to visit a given restaurant, if available.  Therefore, although the restaurant isn’t in their area – they are likely to visit it if they are in an area where it does exist.

Captain D’s Index by Zip Code in Omaha CBSA

As shown in the map above, there are many zip codes on the outer part of the Omaha CBSA where consumers are big fans of Captain D’s.  These areas have a minimum index of 150 for Captain D’s.  This means are 1.5 times more likely (or greater) to have visited a Captain D’s in the last 6 months than the average American.  This information informs the owners of Captain D’s that this may be an area of opportunity to expand their restaurant chain.  Further analysis of locations is required to determine an optimal location, but this analysis can give a first pass to find new potential locations.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Fast Food – Who Eats Where?

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Fast food is a core part of the US culture. It’s easy. It’s cheap. It’s everywhere. McDonalds is the main restaurant of choice with over 18,000 locations in the US alone. Over 42% of Americans visited McDonalds at least once in the last 6 months. There is little diversity in the types of people that go to McDonalds as it appeals to all types. Other fast food chains, however, are not quite as popular – and target different types of people and locations. How do these vary? What type of consumer visits each of these chains? Does geography matter?

While there are a significant amount of fast food chains, this article will focus on just a few of them – the ones that are most visited in the last 6 months (after McDonalds of course). They are: Burger King, Taco Bell, Subway, Wendy’s, and KFC.

Burger King

With over 12,500 stores worldwide, Burger King is one of the most popular hamburger franchises in the world. Over half of their franchises are located in the US. The majority of these are located in the eastern part of the United States – but franchises are all over. Over 27% of the US population has visited a Burger King in the last 6 months. No one area of the country seems to dominate the visits, though consumers living in the mid-west and east tend to frequent the restaurant as a whole more than those in the west.

One method to classify consumers is through tapestry segmentation. Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The tapestry segmentation groups that frequent Burger King the most are Metro City Edge and Dorms to Diplomas. 100% of the census block groups where these segments are dominant have an index of 125 or higher for likely visiting Burger King at least once in the last 6 months. This means that a consumer in these groups is at least 1.25 times more likely than the average American to have visited Burger King at least once in the last 6 months. These are the avid Burger King consumers. Who are they?

Metro City Edge residents live in older suburban neighborhoods of large metropolitan cities, primarily in the Midwest and South. Their median income is $29,269. About 72% of the residents are black. Dorms to Diplomas residents are college students. 90% of these consumers rent. Most of these communities are in urban locations or part of a major campus in a n urban cluster.

Taco Bell

Mexican food is a very popular fast food choice – and Taco Bell is the most popular Mexican fast food chain in the US. The company has over 5,800 restaurants throughout the country which almost 25% of the US population visited in the last 6 months.

The zip code with the highest index for visiting Taco Bell in the last 6 months is 06269, which is Storrs Mansfield, CT.  This is the zip code for the University of Connecticut.  In fact the top 5 zip codes all have colleges located there.  The top 5 zip codes are:

  • 06269 – Storrs Mansfield, CT (University of Connecticut)
  • 13244 – Syracuse, NY (Syracuse University)
  • 27411 – Greensboro, NC (Bennett College)
  • 27710 – Durham, NC (Duke University)
  • 29424 – Charleston, SC (College of Charleston)

Not surprisingly, the most avid visitors of Taco Bell are residents of the tapestry group Dorms to Diplomas.  As mentioned above, these are college students.  All of the census blocks where this segment is dominant have an index for visiting Taco Bell at least once in the last six months is 150 or higher meaning they are 1.5 times more likely than the average American to go to Taco Bell.

Other tapestry segments with residents that are frequent Taco Bell customers are Up and Coming Families and Aspiring Young Families.  Census block groups where these segments are dominant have an index of 125 or higher for visiting Taco Bell at least once in the last 6 months.

Subway

Known for submarine sandwiches, Subway is the largest sandwich restaurant in the United States.  It has approximately 20,000 locations in the US and over 35,000 worldwide.  This is even more than McDonald’s 33,000 worldwide locations.

With Subway being everywhere, this means their customers are everywhere too.  There are 36 zip codes that are tied for the highest index for visiting Subway at least once in the past 6 months.  They have an index of 158.  This means that someone in those zip codes is 1.58 times more likely than the average American to have visited Subway in the past 6 months.  To put this in perspective, about 24.1% of Americans have visited Subway in the past 6 months.

Like Taco Bell, the tapestry segment that visits Subway the most is Dorms to Diplomas.  Made up of primarily college students, this group is looking for quick, inexpensive food on the go.  All of the census block groups where Dorms to Diplomas is the dominant tapestry segment have an index of 125 or higher for having visited Subway at least once in the past 6 months.

Wendy’s

Known for its old-fashioned hamburgers, Wendy’s is the third largest hamburger chain the world with over 6,650 locations.  Its popularity is increasing.  With fewer locations than Burger King, it surpassed Burger King’s sales in 2011.  About 23.6% of Americans visited a Wendy’s in the last six months.

Wendy’s seems to be most popular in the south and east but also in some parts of the west.  The chain is less popular in the Midwest – at least people don’t frequent the restaurant too often there.

Residents from two tapestry groups frequent Wendy’s the most: Family Foundations and Great Expectations.  100% of the census block groups where these two segments are dominant have an index of 125 or higher for visiting Wendy’s at least once in the last 6 months.  This means that residents in these groups are 1.25 times more likely to have visited Wendy’s.

Family Foundations neighborhoods are small urban communities are located in large metro­politan areas, primarily in the South and Midwest. They have a median household income is $38,460.  Young singles who live alone and married-couple families dominate the Great Expectations neighborhoods.  Their median household income is $35,406.

Kentucky Fried Chicken

Founded by Colonel Sanders in 1952, KFC is the most popular fast food chicken restaurant in the United States.  The company has over 15,000 stores in 105 countries worldwide.  In the US, almost 21% of the population visited KFC in the last 6 months.  The restaurant is particularly popular in the south.

Several tapestry segments are composed of residents who frequent KFC.  They are Family Foundations, Heartland Communities, Southern Satellites, City Strivers, Urban Rows, Rural Bypasses, and Rooted Rural.  100% of the census block groups where each of these are dominant have an index of 125 or higher for visiting KFC at least once in the last 6 months.  The majority of these tapestry segments are part of the Urbanization segment Rural II.  Urbanization summary groups share a locale, from the urban canyons of the largest cities to the rural lanes of villages or farms.

Over 80% of the Rural II neighborhoods have an index of 125 or higher for KFC.  Most of this population lives in rural farm areas; the rest live in the country or in small villages.

Each of these restaurants is popular to a different type of segment of the population.  Consumers have preferences based on food selection, taste, price, convenience, and many other factors.  It is important to understand which types of consumers frequent a restaurant to best target new customers and to understand the best opportunity for expansion.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Atlanta – How Does it Compare to “Typical” America?

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Home to companies like The Coca-Cola company, Turner Broadcasting, The Home Depot, IPS, and Delta Airlines, the city is a major business city for both the US and the world.   But what are people like in Atlanta?  How do they compare to the “average” American?  How does each neighborhood differ throughout the area?

According to the 2010 Census, there are 5,611,180 people living in the Atlanta, GA Core Based Statistical Area (CBSA). What do we know about the people living there?  How do they vary?

As a whole, the Atlanta CBSA population is 49.4% male and 50.6% female.  57.3% of the population identifies themselves as White only.  31.4% of the population identifies themselves as Black (compared with 12.4% of the US population).  10.6% of the population identifies themselves as Hispanic. The median income in 2010 was  $68,106, which is over 25% higher than the US median income of $54,442.

People in Atlanta are “average” Americans in some ways, but also index high or low in many parts of the city depending on the demographics.  A high index means they spend more than the average America  on a product and service or a higher percentage of households participate in an activity the average US household. Here are some key statistics for selected variables for the overall Atlanta CBSA:

Activity Index Average Spend per HH per Year
Watch baseball on TV

103

N/A
Watch American Idol

105

N/A
Own a DVR

118

N/A
Coffee at Home

104

$67.30
Health Insurance

102

$1,916.56

All neighborhoods in Atlanta are not the same.  Just like the rest of the US, there is diversity in the area.  Retailers, marketers, distributors, and others who do business with direct consumers need to know where their customers live – or where the opportunity may lie.  Understanding what activities consumers are engaging in or what they are purchasing is critical to knowing where customers and opportunities lie.

Baseball is one of the key all-American sports.  Home to the Atlanta Braves, baseball is as popular in Atlanta as anywhere.   Much of Atlanta is relatively average when it comes to watching baseball on TV.  There are a few areas on the outskirts of the CBSA and right in the middle of the CBSA that are below average.

Baseball TV Viewing Index by Zip Code

The zip code that indexes the highest when it comes to watching baseball is 30290, which is Tyrone, GA. Its index is 127 meaning that someone in a household in this zip code is 1.27 times more likely than the average American household to watch baseball.  The dominant tapestry segment of this zip code is Green Acres.  Seventy-one percent of the households in Green Acres neighborhoods are married couples with and without children. Many families are blue-collar Baby Boomers, many with children aged 6–17 years.  This segment is not ethnically diverse; 92 percent of the residents are white. More about tapestry segments and segmentation can be found at www.esri.com/tapestry.

American Idol is one of the most popular television shows today with a wide range in its viewing audience from age to demographics.  While it isn’t as popular as it once was, millions are still tuning in to watch and vote every week.  On May 3, 2012, 15.05 million households tuned in to view the show, according to Nielsen (prior seasons have had 20-30 million viewers per show).  That’s more than 13% of all households in the US.  Residents of Atlanta are typically American when it comes to American Idol with an index of 105.

American Idol Viewing Index by Zip Code

There is little variation for American Idol viewing among neighborhoods in Atlanta – most fall within the “average” index range of 75-125.  The zip codes with the highest indices are 30336 and 30332 – both with an index of 131.  These zip codes have different dominant tapestry groups.  They are Sophisticated Squires and Family Foundations, respectively.  It isn’t surprising that this varies as the American Idol viewer is very diverse.  The zip code with the lowest index for watching American Idol in the Atlanta CBSA was 30326 with an index of 59.  This means that a household in that zip code is 40% less likely to watch American Idol as the average American household.  The dominant tapestry segment in that neighborhood is Metro Renters.  Residents of this segment are young, educated singles, who are just beginning their professional careers in some of the largest US cities.

DVRs have changed the way many consumers watch television.  Enabling consumers to shift their television viewing from appointment viewing to on-demand has greatly affected how media companies market and distribute their content.  Many think that everyone has a DVR since it’s so prevalent it places like Los Angeles and New York where many in the media market live.  It’s not quite true – it’s somewhere around 50% of US households.  While this isn’t something to ignore, knowing that half the country still watches much of their TV live is important and can affect what type of content is developed and how it is distributed.  How does Atlanta compare to the rest of the nation?

Overall, Atlanta has a higher adoption of DVRs than the average American.  Its index is 118.   Not all areas of Atlanta are the same though.

DVR Ownership Index by Zip Code

While overall the city falls in the average range for DVR ownership, it is on the higher end of the average scale as it has an index of 118 meaning residents of the Atlanta CBSA are 1.18 times more likely to have a DVR than the average American household.  The city, itself, though, is quite diverse in DVR ownership.  There are several zip codes with indices of above 150 for DVR ownership meaning they are 1.5 times more likely to have a DVR than the average American household.  The zip code with the highest index of 196 is 30097.  The three zip codes with the next highest zip codes are 30024, 30022, and 30005.  All 4 of these zip codes have Boomburbs as their dominant tapestry segment.  Residents of this segment busy, affluent young families with the highest concentrations of young families with children. There is little ethnic diversity in the population; most of the residents are white.

With an index of 47, the zip code 30734 has the lowest index in the Atlanta CBSA.  Households in this zip code are less than half as likely to have a DVR than the average American household.  The dominant tapestry segment is Southern Satellites.

Knowing what consumers spend their money on and how much is key to understanding their preferences and what they may or may not buy in the future.  This information can help retailers, marketers, and distributors decide on what products to offer and where to offer them.

Coffee is a key part of many people’s day – especially in the morning.  While many go to a coffeehouse to consume their favorite caffeinated beverage – or they get it at work, many also brew it at home and consume it there or on their way to work.  The average American household spends about $64.20 on coffee each year.  The average household in the Atlanta CBSA spends just a bit more than that – $67.30. Atlanta, overall, is just average in terms of spending on coffee – but neighborhoods differ.

Average HH Annual Coffee Spend for Home Consumption by Zip Code

There are a few zip codes in the Atlanta CBSA where the average household spends over $100 per year on coffee.  Interestingly, there are multiple tapestry groups that are dominant for each of these zip codes: Top Rung, Social Security Set, Boomburbs, Suburban Splendor, and Metro Renters.  The average household in zip code 30313 spends just $30.96 per year on coffee, which is the lowest in the Atlanta CBSA.

Health insurance is a concern of most Americans and has been on the agenda of politicians for many years.  It is one of the foremost topics for the 2012 presidential election.  The average American household pays about $1,865 annually for it.  Many factors go into how much an individual or family pays including family size, age, health condition, and much more.  It can also vary based on where you live – from the state, city, and even neighborhood.  The average household in Atlanta pays $1,916.56 which is just above the amount of the average American household.

Average HH Health Insurance Spend by Zip Code

There are many reasons that are hard to pinpoint as to why one area has higher health insurance costs than other.  The formulas are very complex.  While much of the city falls within the “average” of the American household, there are a few areas that are either above or below average.  There are three zip codes where the average household spends over $3,000 per month.  Each of these has median incomes over $120,000.  Households in zip code 30327 on average spend the most – $3,163.01.  The dominant tapestry group for this zip code is Top Rung.  Information about health insurance costs can help health industry professionals determine what services or clinics may be needed in an area.

What does this all mean in terms of Atlanta? 

In the criteria analyzed here, its indices are just slightly higher than the typical American household – but it’s really pretty much average as a whole.  There are some differences throughout the city.  This is due to the varying demographics in the city showing that there is a spectrum of consumers throughout.  Companies wanting to target the Atlanta area should fully understand who their market is then use segmentation to find the neighborhoods that match their consumers.

This blog is part of a series about various local markets around the country.

More information about Esri’s data can be found at www.esri.com/data  or to learn more about Esri in general, go to www.esri.com.

Boston – How Does it Compare to “Typical” America?

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Settled in 1630 and incorporated in 1822, Boston is one of the oldest cities in the US. It is home to many major league sports teams including the Boston Red Sox, Boston Celtics, Boston Bruins and the New England Patriots. It is also home to more than 100 colleges and universities, which bring in more than 250,000 students from around the world.

What are people like in Boston? How do they compare to the “average” American? How does each neighborhood differ?

According to the 2010 Census, there are 4,391,344 people living in the Boston, MA Core Based Statistical Area (CBSA). What do we know about them? How do they vary?

As a whole, the Boston CBSA population is 48.5% male and 51.5% female. 79% of the population identifies themselves as White only. 8.9% of the population identifies themselves as Hispanic. The median income in 2010 was $74,931, which is over 35% higher than the US median income of $54,442.

People in Boston are “average” Americans in some ways, but also index high in many parts of the city. This means they spend more than average on many products and services and a higher percentage of consumers participate in an activity the average US household.

Here are some key statistics for selected variables for the overall Boston CBSA:

Activity Index Average Spend per HH per Year
Watch baseball

114

N/A
Watch American Idol

100

N/A
Own a DVR

117

N/A
Coffee at Home

133

$85.58
Health Insurance

124

$2,315.78

All neighborhoods in Boston are not the same. Just like the rest of the US, there is diversity in the area. Retailers, marketers, distributors, and others who do business with direct consumers need to know where their customers live – or where the opportunity may lie. Understanding what activities consumers are engaging in or what they are purchasing is critical to knowing where customers and opportunities lie.

Baseball is one of the key all-American sports. As noted above, Boston is home to the Boston Red Sox, which plays out of America’s oldest ballpark – Fenway Park. The question is – with this rich history in baseball – does that then translate to people watching baseball on TV?

Baseball TV Viewing Index by Zip Code

 

Much of Boston is relatively average when it comes to watching baseball on TV, though there are many areas that are above average.  The zip code that indexes the highest when it comes to watching baseball is 01731.  This zip code belongs to Hanscom AFB.  Its index is 138 meaning that someone in a household in this zip code is 1.38 times more likely than the average American household to watch baseball.  The dominant tapestry segment of this zip code is Military Proximity.  Residents of Military Proximity are young, married, and beginning parenthood.  More than three-fourths of the labor force in this segment are on active duty or have civilian jobs on military bases.  More about tapestry segments and segmentation can be found at www.esri.com/tapestry.

American Idol is one of the most popular television shows with a wide range in its viewing audience from age to demographics.  While it isn’t as popular as it once was, millions are still tuning in to watch and vote every week.  On April 25, 2012, 15.66 million households tuned in to view the show, according to Nielsen (prior seasons have had 20-30 million viewers per show).  That’s more than 13% of all households in the US.  Residents of Boston are typically American when it comes to American Idol with an index of 100.

American Idol Viewing Index by Zip Code

 

Interestingly, there is little variation for American Idol viewing among neighborhoods in Boston. Most neighborhoods fall within the “average” index range of 75-125. The zip code with the highest index is 01731 just like in baseball viewing. The zip code with the lowest index for watching American Idol was 02110 with an index of 53. This means that a resident in that zip code is ½ as likely to watch American Idol as the average American. The dominant tapestry segment in that neighborhood is Laptops and Lattes. This segment is very affluent and young. They enjoy life in the big city.

DVRs have changed the way many consumers watch television. Enabling consumers to shift their television viewing from appointment viewing to on-demand has greatly affected how media companies market and distribute their product. I live in Los Angeles where media is one of the main industries and almost everyone is connected to the “industry,” so there is a skew in the adoption of DVRs – many think that everyone has one. It’s not quite true – it’s somewhere around 50% of US households. While this isn’t something to ignore, knowing that half the country still watches much of their TV live is important and can affect what type of content is developed and how it is distributed. How does Boston stack up?

Overall, Boston has a higher adoption of DVRs than the average American. Its index is 117. Not all areas of Boston are the same though.

DVR Ownership Index by Zip Code

While overall the city is average in terms of DVR ownership, there are distinct differences in areas around the city. The zip codes with an index of 150 (considered well above average as they are 1.5 times more likely than the average American household to have a DVR) or above all have high median incomes – over $80,000. All of these zip codes are located in or very close to the actual city of Boston versus areas around the outskirts of the CBSA. The zip codes with the highest index in the CBSA are 02030 and 01741. Their indices are 195. Both zip codes have a dominant tapestry group of Top Rung. With an index of 56, the zip code 01841 has the lowest index in the Boston CBSA. Households in this zip code are approximately half as likely to have aDVR than the average American household. The dominant tapestry segment is International Marketplace, which is a very diverse segment.

Knowing what consumers spend their money on and how much is key to understanding their preferences and what they may or may not buy in the future. This information can help retailers, marketers, and distributors decide on what products to offer and where to offer them.

Coffee is a key part of many people’s day. While many go to their favorite coffeehouse to consume their favorite caffeinated beverage – or they get it at work, many also brew it at home and consume it there. The average American household spends about $64.20 on coffee each year. The average household in the Boston CBSA spends over 25 % more – $85.58. This higher than average spending on coffee could be due to factors such as higher cost of living as well as the cold Boston winters.

Average HH Annual Coffee Spend for Home Consumption by Zip Code

 

The zip codes around the center of Boston spend much more than the average American on coffee.    All of the zip codes that spend $100 per year on coffee to drink at home have median incomes of $80,000 or more.  The 5 zip codes with the highest average household spending on coffee were 02493, 02030, 02481, 01770, and 02468.  Each of these zip codes had an average of $158.10 spent per household on coffee.  The dominant tapestry segment for all of these zip codes is Top Rung.  Residents of Top Rung neighborhoods are mature, married, highly educated, and wealthy.

Health insurance is a concern of most Americans and has been on the agenda of politicians for many years.  It is one of the foremost topics for the 2012 presidential election.  The average American household pays about $1,865 annually for it.  Many factors go into how much one pays including family size, age, health condition, and much more.  It can also vary based on where you live – from the state, city, and even neighborhood.  The average household in Boston pays $2,272.75 which is about 20% more than the average American household.

Average HH Health Insurance Spend by Zip Code

While it’s difficult to say why one area has higher health insurance than another as there is so many complex factors, we can determine that overall in Boston, the range that a household pays is “typical”. That said, there are areas that pay significantly more than average. The top five are all have a dominant tapestry segment of Top Rung. They are 02493, 02030, 02481, 01770, and 02468. Their indices are 233 or higher meaning they pay, on average, 2.33 times more than the average American household. Each of these zip codes have median incomes of $169,297 or higher. These higher incomes may result in the households purchasing more comprehensive health insurance. Information about health insurance can help health industry professionals determine what services or clinics may be needed in an area.

What does this all mean in terms of Boston?

Well, in these criteria, its indices are slightly higher than the typical American. The higher spending on coffee and health insurance may be due to the higher incomes as well as the higher cost of living. I am sure there are other criteria where it is much different due to interests and available of products. It’s important for companies to understand each individual market – and even neighborhood – as there are distinct differences among them.

This is the part of a series about various local markets around the country.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Omaha – Is it “typical America”?

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Let me start this blog off by saying I live in Los Angeles.  Often when talking with my friends or colleagues about new devices and gadgets, I hear someone say “everyone has that” where ”that” is a DVR or iPhone or other new high tech gadget.  Or they talk about a movie or television show and assume everyone has seen it.  My response is – what are people doing in Omaha?  I don’t mean this in a disparaging way – rather for some reason I have classified Omaha as place where people are typical Americans – and the people in LA are not – especially ones working in entertainment.  Many of us surround ourselves with people just like ourselves – and assume everyone else is just like us, which we all inherently know is not right.  Most of my friends have some sort of smartphone.  Almost all have a DVR (including my 92-year-old grandmother – no, she doesn’t have a smartphone though she does have a cell phone).  What does the average American do though?  What are people in Omaha doing?  How “average American” are people in Omaha?

According to the 2010 Census, there are 1,080,375 people living in the Omaha, NE Designated Market Area (DMA), which includes 24 counties; 14 in Nebraska, 9 in Iowa and 1 in Missouri.  What do we know about them?

As a whole, the Omaha DMA population is 49.4% male and 50.6% female.  84.4% of the population identifies themselves as White.  9.1% of the population identifies themselves as Hispanic. The median income in 2010 was $55,142, which is just above the US median income of $54,442.

People in Omaha are “average” Americans in many ways.  Here are some key statistics for the overall Omaha DMA:

Activity Index Average Spend per HH per Year
Watch baseball

99

N/A
Own a DVR

101

N/A
Watch American Idol

98

N/A
Health Insurance Cost

101

$1,888.61
Coffee at Home

97

$62.31

All neighborhoods in Omaha are not the same.  Just like the rest of the US, there is diversity in the area.  Retailers, marketers, distributors, and others who have direct consumers need to know where their customers live – or where the opportunity may lie.  Understanding what activities consumers are engaging in or what they are purchasing is critical to knowing where customers and opportunities lie.

Baseball is one of the key all-American sports.   It is popular with millions of Americans who visit ballparks and watch it on television every year.  Unfortunately for Omaha, it does not have a major league team.  The closest team is the Kansas City Royals – almost 200 miles away.  This means that many Omaha residents who are baseball fans watch it on TV.

Baseball TV Viewing Index by Zip Code

Overall, the city is relatively “average” in terms of its baseball viewing.  Residents in zip codes on the outer edge of the area tend to be less interested in watching on television.  One zip code, though, stands out as having an above average viewing index of 143 meaning residents there are 1.43 times more likely to watch baseball on TV.  The zip code is 68113, which is the location of Offutt Air Force Base.

American Idol is one of the most popular television shows on today with a wide range in its viewing audience from age to demographics.  While it isn’t as popular as it once was, millions are still tuning in to watch and vote every week.  On April 16, 2012, 15.3 million households tuned in to view the results show, according to Nielsen (prior seasons have had 20-30 million viewers per show).  That’s over 13% of all households in the US.  Residents of Omaha are typically American when it comes to American Idol with an index of 98.  Neighborhoods around Omaha do vary.

American Idol Viewing Index by Zip Code

The index of American Idol viewers is similar to that of baseball viewers.  People living closer to the city of the Omaha DMA have average viewing habit and people living near the edges have below average viewing habits, as compared to the typical American.  This may indicate that these are simply the people who watch TV.  The zip code with the highest index (147) is again 68113 indicating that those on The Offutt Air Force Base are much more likely to tune in.

Digital video recorders (DVRs) have made a big impact in the media industry.  Enabling consumers to shift their television viewing from appointment viewing to on-demand has greatly affected how media companies market and distribute their product.  Living in a city where media is one of the main industries and everyone knows someone in the “industry”, there is a skew in the belief about DVRs – that everyone has one.  It’s not quite true – it’s somewhere around 50% of US households.  While this isn’t something to ignore, knowing that half the country still watches TV live (or on VHS tapes) is important and can affect what type of content is developed and how it is distributed.  How does Omaha stack up?

As pointed out above, Omaha is average in terms of households owning a DVR.  It has an index of 101.  Not all areas of Omaha are the same though.

DVR Ownership Index by Zip Code

While overall the city is average in terms of DVR ownership, there are distinct differences in areas around the city.  The zip codes with a high index all have high median incomes – over $65,000.  All of these zip codes are located in or very close to the actual city of Omaha.  The zip codes with lower indices for DVR ownership all primarily away from Omaha and on the outskirts of the Omaha DMA.

Knowing what consumers spend their money on and how much is key to understanding their preferences and what they may or may not buy in the future.  Coffee is a key part of many people’s day.  While many go to Starbucks to consume their favorite caffeinated beverage, many also simply buy it at home and consume it there.  The average American household spends about $64.20 on coffee each year.  The average household in the Omaha DMA spends slightly less – $62.31.

Average HH Annual Coffee Spend at Home by Zip Code

There are just a few neighborhoods in Omaha where, overall, the spending on coffee is either well above or below average.  There are a couple of neighborhoods, though, where either coffeehouses or coffee distributors want to understand their demographics as they are big purchasers of coffee at home.  Three zip codes have an average household spending of coffee of over $100 per year.  They are 68130, 68135, and 68118.  These are all high income zip codes with median incomes over $90,000.  Their dominant tapestry groups are all Boomburbs.  More about tapestry segments and segmentation can be found at www.esri.com/tapestry.

Health insurance is a concern of most Americans.  The average American pays about $1,865 annually for it.  Many factors go into how much one pays including family size, age, health condition, and much more.  It can also vary based on where you live – from the state, city, and even neighborhood.  The average household in Omaha pays slightly more – $1888.61.

Average HH Health Insurance Spend by Zip Code

While it’s difficult to say why one area has higher health insurance than another as there are so many complex factors, we can determine that overall in Omaha, the range that a household pays is “typical”.  That said, there are areas that pay much higher than average.  The top three are the same top three zip codes as the coffee ones – 68130, 68135, and 68118.  This may speak to the fact that these are higher income areas whose residents are able to spend on items they want and need.  Households in these top three zip codes spend, on average, $2,878.09 per year on health insurance.  This is 50% more than the average American household.  This information can help health industry professionals determine what services or clinics may be needed in an area.

What does this all mean in terms of Omaha?  Well, in these criteria, it is fairly “typically American.”  I am sure there are other criteria where it is much different.  It’s important for companies to understand each individual market – and even neighborhood – as there are distinct differences among them.

This is the first in a series about various local markets around the country.

More information about Esri’s data can be found at http://www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

DVD vs. Online Spending – Who is Buying What?

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The home video market for movie studios is rapidly changing.  Consumers are watching content online or subscribing to services like Netflix rather than purchasing DVDs.  IHS Screen Digest predicts that for the first time more movies will be watched online than on DVD in 2012.  That said, people are still buying DVDs.  Who are these consumers, where do they live, and how much do they spend?  Are these the same consumers who are paying for online video or are they different?

Let’s first tackle how much people spend on DVDs.  The average household in the United States spends approximately $50.76 per year on DVDs and video cassettes.  (Going forward we will just refer to DVDs since the VHS market is very small, but the numbers encompass both.)  The zip codes where households spend the most on DVDs live primarily along the eastern seaboard and in some California coastal cities.  The zip codes with the top average household spending on DVDs are:

Zip Code City Average Spent per HH per Year
10007 New York, NY

$146.36
33965 Fort Myers, FL

$145.35
10282 New York, NY

$130.28
22066 Great Falls, VA

$129.60
07078 Short Hills, NJ

$127.46

The online video market is similar to the DVD market in some areas of the country and different than others.  For example, more people in the Midwest spend a higher than average amount on DVDs than on online video.  It’s clear that some people are just simply fanatics about content and will purchase it whatever form is available.  Others prefer one platform over the other.  The top online video markets for spending are:

Zip Code City Average Spent per HH per Year
07078 Short Hills, NJ

$4.70
22066 Great Falls, VA

$4.66
10007 New York, NY

$4.60
10514 Chappaqua, NY

$4.58
60043 Kenilworth, IL

$4.57

Note that 3 of the top 5 zip codes for online video spending are the same as DVD spending. Also, 2 out of 3 of these zip codes have median incomes of over $200,000 (07078 and 22066).

Knowing something about the consumers that spend the most on a product or service can be extremely helpful to marketers, product developers, and distributors.  Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.  This information combined with consumer spending data can give a very telling picture about consumers.

There are 7 tapestry segments in which at least 75% of the census block groups where the tapestry segment is dominant have an average annual spend of $63.51 or more on DVDs.  This is 1.25 times more than the average US household of $50.76.  The segments with the highest percentage of DVD spenders of $63.51 or more are Top Rung, Suburban Splendor, Connoisseurs, and Boomburbs. Residents of Top Rung neighborhoods are mature, married, highly educated, and wealthy.  Boomburbs residents are a similar segment with busy, affluent, young families.  City Commons residents are very young with an average age of 24.6 years and very ethnically diverse.

The people who are willing to pay for online video are very similar to those willing to pay for DVDs, but there are a few that are different.  The ones that overlap indicate that many of the consumers may be platform agnostic – they just want to consume video wherever they area.  The top segments are for online video spending are Top Rung, Connoisseurs, Suburban Splendor, and Wealthy Seaboard Suburbs – which are all in the top 7 for DVD spenders where 75% or more of the census block groups where the segment is dominant spend $63.96 or more per year. In each of these, over 99.8% of the census block groups dominated by those segments have an average of at least $1.70 spent on online video per household per year – and many have much more.   The amount $1.70 is 1.25 times the amount the average American household is spends of $1.36 per year.

There are a few segments with very different purchasing patterns.  For example 92% block groups with City Lights as the dominant tapestry segment have an index of 125 or greater for spending at least $1.70 for online video.   Only 8% of block groups where City Lights is dominant spend at least $63.51(representing an index of 125) on DVDs each year.  This segment is above average in online video spending but below average in DVD spending.  Residents of City Lights are composed of diverse neighborhoods primarily in the Northeast.   The median age is 38.3 and a median household income of $60,149.

It should be noted that DVD spending is still significantly greater than online video spending, so this analysis focusing on the norm for each distribution mechanism, but displays where opportunity is in the immediate future for content distributors.

More information about Esri’s tapestry segmentation can be found at http://www.esri.com/tapestry or to learn more about Esri in general, go to www.esri.com.

US Car Industry – Who is Buying Domestic vs Imported?

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In 2011, Americans spent $206 billion on new cars.  The big three US Car Manufacturers – General Motors, Chrysler, and Ford were 47% of those sales.  What type of consumer is choosing to buy domestic cars over imported ones?  Is there a difference?

The likelihood of someone owning or leasing a domestic vehicle versus an imported vehicle does vary based on where one lives as well as their socioeconomic status as well as other factors.  This piece details some of those differences.

Consumers living in the Midwest, overall, are more likely to own a domestic vehicle than someone in another part of the country.  Some of the zip codes where people are most likely to own a domestic vehicle are:

  • 66442 – For Riley, KS
  • 62225 – Scott Air Force Base, IL
  • 73503 – Fort Sill, OK
  • 85708 – Tucson, AZ
  • 30905 – Augusta, GA

Each of these zip codes have an index of 151 for domestic car ownership or lease meaning a household is 1.51 times more likely to own or lease a domestic-made vehicle than the average American.

People who live in the western part of the US, on the eastern seaboard, and in Florida ore more likely than people in other parts of the country to own or lease imported cars.  Some of the zip codes with the highest index are:

  • 10514 – Chappaqua, NY
  • 02493 – Weston, MA
  • 90263 – Malibu, CA
  • 60022 – Glencoe, IL
  • 06883 – Weston, CT

Each of these zip codes had an index of 167.  This means that a household in that area is 1.67 times more likely than the average American to own or lease an imported vehicle.

Knowing where people live can live and their tendency to purchase a particular item or type of item can be very helpful to marketers and distributors.  Knowing something about the people can be even more critical and helpful.  Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The tapestry segments that have a high likelihood of owning or leasing a domestic vehicle are much different than ones who own or lease an imported vehicle.  There are four tapestry segments in which 100% of the census block neighborhoods where the segment dominates have an index of at least 125.  This means that people in those neighborhoods are at least 1.25 (some are much more) times more likely than the average American to own or lease a domestic vehicle.  These segments are Green Acres, Military Proximity, Prairie Living, and Salt of the Earth.  These segments are pretty different.  Green Acres neighborhoods are located throughout the country, though they are found primarily in the Midwest and South.  They live in pastoral settings of developing suburban.

There are 16 tapestry segments in which 100% of the census block neighborhoods where the segment dominates and have an index of at least 125 for households owning or leasing an imported vehicle.  These segments include Up and Coming Families, Sophisticated Squires, and Wealthy Seaboard Suburbs.  Like the neighborhoods where a household is more likely to own or lease a domestic vehicle, these neighborhoods vary greatly.  Residents of Up and Coming Families neighborhoods are young, affluent families with younger children.  Wealthy Seaboard Suburbs residents are affluent and are primarily located along the California, New York, New Jersey, and New England coasts.

LifeModes and Urbanization can also be used to classify consumers.  Segments within a LifeMode group share an experience such as being born in the same period or a trait such as affluence.   Interestingly, there are few trends of ownership behavior of domestic and imported vehicles using these metrics.  One note is that 100% of the census block neighborhoods where High Society (a LifeMode segment) residents is dominant have an index of 125 or higher for owning or leasing an imported vehicle.

More information about Esri’s tapestry segmentation can be found at http://www.esri.com/data/esri_data/tapestry.html or to learn more about Esri in general, go to www.esri.com.