Category Archives: Marketing

Examining Colorado’s Political Leanings

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This article was also posted at http://smartblogs.com/leadership/2012/09/17/examining-colorados-political-leanings/

Colorado is one of the key swing states in the upcoming presidential election.  With 9 electoral votes up for grabs, it is an important state for both Barack Obama and Mitt Romney to win.

The map and data below tell the story of the demographic and political makeup of the Colorado prior to the election.  What will sway the voters in this state?  What do we know about them?  We’ll be sure to check back after Nov. 6 to see what the election results reveal.

General Population Statistics

Known as the “The Centennial State,” Colorado has a population of just over 5.1 million people.  Denver is the capital and the state’s most populous city with a population of about 620,000.  Here are some key demographic statistics about Colorado:

 

Colorado

US
Median Age

36.1

37.2
% Male / % Female

50.4%/49.6%

49.2%/50.8%
Median Household Income

$54,595

$50,227
% Hispanic Population

17.1%

16.6%
Median Home Value

$224,880

$157,913

Source: Esri Updated Demographics 2011/2016

The residents of Colorado are more liberal overall than the average American.  Esri, the world’s leader in  geographic information systems (GIS), provides Market Potential data that includes a Market Potential Index (MPI). The Index measures the probability that adults or households in a specific area will exhibit certain consumer behaviors compared to the US average. The index is tabulated to represent a value of 100 as the overall demand for the U.S.

Market Potential Variable

Index
Consider self very conservative

102
Consider self somewhat conservative

105
Consider self middle of the road

102
Consider self somewhat liberal

111
Consider self very liberal

107

Source: Esri Market Potential Database, GfK MRI

A resident of Colorado is 2% more likely than the average American to consider himself very conservative and 5% more likely to consider himself somewhat conservative.  Although a Colorado resident is a little more likely to consider himself conservative than the average American, they are a bit more likely to consider themselves liberal.  A resident of Colorado is 11% more likely than average American to consider himself somewhat liberal and 7% more likely than the average American to consider himself very liberal.

Colorado Politics Market Potential Index

Where people live in Colorado does seem to somewhat sway their political leanings.   For Democrats, it is important to know that the zip code with the highest likelihood of very liberal voters is 80203 – located in Denver.  The index for someone considering themselves very liberal is 302 – meaning a resident there is 3.02 times more likely to consider themselves more liberal than the average American.  For Republicans, the most conservative zip code is 80912 – located in Colorado Springs.  The index for considering themselves very conservative there is 214 meaning a resident is 2.14 times more likely than the average American to consider themselves very conservative.

Colorado Tapestry Segmentation

Esri also developed the Tapestry Segmentation system that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.  The top tapestry segments for the Colorado are:

Tapestry Segment

% Adults
Up and Coming Families

8.1%
Boomburbs

6.7%
Exurbanites

4.9%
In Style

4.3%
Main Street USA

4.2%
Sophisticated Squires

4.1%
Suburban Splendor

3.9%
Aspiring Young Families

3.8%
Metropolitans

3.6%
Rural Resort Dwellers

3.3%

 Source: Esri

Residents of Tapestry’s Up and Coming Families neighborhoods, for example, are young, affluent families with younger children. Eighty percent of the households are families. The median household income is $69,522 and nearly two-thirds of the residents aged 25 years and older have attended college; more than one in five holds a bachelor’s degree.  Boomburbs neighborhoods have high concentrations of young families with children.  The median age for Boomburbs is 36.1 years. There is little ethnic diversity in the population; most of the residents are white.  Over half have a college education and the median household income is $104,395.

Colorado Tapestry Segmentation

Unemployment

One key factor in the upcoming election is unemployment.   This has varied by state.  When Barack Obama was sworn in as president in January 2009 Colorado had an unemployment rate of 7.2%.  In July 2012 (the latest figures available by the Bureau of Labor Statistics) that number had risen to 8.3%.  Of course, each county in the state varies based on their individual situations.

Colorado Unemployment Change – January 2009 – July 2012

Most counties in Colorado have higher unemployment rates now than when Obama took over as president.   The county with the biggest increase in unemployment was Lake County which went from 6.8% in January 2009 to 10.0% in July 2012.  San Juan County went the other way with unemployment in January 2009 at 9.1% and down to 5% in July 2012.

Why Does This Matter?

Understanding the type of people who live in Colorado can help Barack Obama and Mitt Romney target their campaigns and even messaging.  Knowing what the local issues are, what the demographic make-up of an area is, what the political leanings are of an area, or knowing what types of activities they participate in can help them find their supporters – at a very local level – and help them be in a better position win an election.

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.

Pam Allison is a digital media, marketing strategist, and location intelligence consultant.  You can visit her blog at www.pamallison.com.

 

Hikers and Backpackers – Who are They?

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On Monday I am going to do something I never thought I would do – I am going to climb Mt. Whitney.  Located in the eastern Sierras of California, Mt. Whitney is the highest mountain in the continental US at 14,505 feet above sea level.  I have no idea if I will make it to the top – but I will certainly do my best.  I am an avid reader of non-fiction about places like Mt. Everest, but climbing it is something I never had the desire to do – in part because I don’t like the cold weather – but even more than that, the difficulty is simply astounding. I decided to attempt Mt. Whitney because a friend of mine from Esri invited me.  I certainly couldn’t turn that down.  And it isn’t as cold as Everest there.

All of this had me thinking, of course, who are the hikers in the US – and where do they live?  Am I even in the demographic that would normally do this?  And who lives in Lone Pine, CA – the town at the base of the mountain.  Do people who live there love hiking?

Lone Pine, CA

Let’s start out by looking at Lone Pine.   The town’s population in 2011 was 2,330.  The median age is 44.8 years.  There are slightly more men than women (50.5% vs 49.5%) and Hispanics are 25.5% of the population.

Esri, a geographic information systems company which also does data analysis, developed the Tapestry Segmentation system that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.  The households in Lone Pine can be classified primarily into 3 main tapestry segments:

Tapestry Group % of HH
Rooted Rural 42.5%
Simple Living 41.2%
Senior Sun Seekers 16.1%

 

Residents of the Rooted Rural tapestry segment, for example, are married-couple families, though 23% are singles who live alone.   Many employed residents work in the service and manufacturing industry sector.  Seventy percent of residents live in single-family dwellings and twenty-six percent live in mobile homes.  Home improvement and remodeling projects are common activities among this group.

Hiking is not a popular activity for Lone Pine residents despite its proximity to one of the tallest peaks in the world.  In the US, 7.2% of adults go hiking or backpacking.  In Lone Pine, just 5.7% of residents (or 25% less than the US average), go hiking or backpacking.  I guess the avid hikers aren’t there.  Where are they?

Hiking/Backpacking Participation

Hiking and backpacking is a popular activity in many areas of the country.  As mentioned above, 7.2% of American adults hike or backpack.  This activity includes everything from overnight backpack trips to a simple 1-2 hour hike.

There are a few areas around the country where backpacking and hiking is most popular.  This includes the west (especially the northwest), around Denver, and the northeast.   It is popular in parts of Hawaii and Alaska as well.  Some of the zip codes with the highest index for backpacking and hiking are 93106 (Santa Barbara, CA), 47405 (Bloomington, IL), and 70893 (Baton Rouge, LA).  Each of the zip codes has an index of 252 for backpacking and hiking meaning residents in these zip codes are 2.52 times more likely than the average American to participate in the activity.

What type of person is typically most likely to participate in hiking or backpacking?  What type is least likely?  The Dorms to Diplomas segment is the one most likely to participate in hiking or backpacking.  The index for the neighborhoods where this segment is dominant is 200 for hiking and backpacking meaning they are 2 times more likely than the average American to participate in the activity.

Residents of Connoisseurs, Exurbanites, Laptops and Lattes, Metro Renters, Metropolitans, Suburban Splendor, Top Rung, and Urban Chic are also likely hikers and backpackers.  The index for residents in these neighborhoods to hike or backpack is 150 meaning they are 1.5 times more likely than the average American to hike or backpack.

Not everyone enjoys hiking and backpacking.   Residents of Home Town, International Marketplace, Modest Income Homes, NeWest Residents, Rural Bypasses, Southern Satellites, and Urban Villages have an index of 50 or less for participating in hiking or backpacking.  This means they are ½ as likely (or less) than the average American to participate.

International Marketplace residents, for example, are located primarily in cities in “gateway” states on both US coasts.  They are developing urban markets with a rich blend of cultures and household types.  Their median age is 32 years and is extremely diverse with more than half of the population being Hispanic, 11.6% Asian, and 7% two or more races.

Hiking or Backpacking on a Domestic Vacation

Some Americans actually plan vacations around hiking or backpacking.  About 2.3% of adults go on a hiking or backpacking domestic vacation each year.  Who are they?  Where do they live?

The avid backpackers and hikers who use their vacation time for backpacking primarily live on the eastern seaboard and in a few places on the west coast.  There are also pockets in Alaska, Wyoming, Colorado, and Arizona.  Some of the zip codes with the highest indexes for backing on a domestic vacation are 07092 (Mountainside, NJ), 94563 (Orinda, CA), and 85266 (Scottsdale, AZ).  Each of these have an index of 175 or higher meaning residents of these zip codes are 1.75 times more likely than the average American to go backpacking on a domestic vacation.

What type of people like to do this?  Several tapestry segments have an index of 150 or higher for backpacking on their domestic vacation.  They are Connoisseurs, Exurbanites, InStyle, Laptops and Lattes, Metro Renters, Metropolitans, Main Street USA, Prosperous Empty Nesters, Silver and Gold, Suburban Splendor, Top Rung, and Urban Chic.  The residents in the neighborhoods where these segments are dominant are 1.5 times more likely than the average American to plan a backpacking vacation.  No one group seems to dominate over others though.

Urbanization summary groups, which are based on geographic and physical features along with income, can also be used to classify consumers.  65% of Suburban Periphery I neighborhoods have an index of 150 or higher for going backpacking on a domestic vacation.  These neighborhoods are typically lower-density housing development located in metropolitan and micropolitan statistical areas throughout the United States.   Married-couple families dominate, approximately half with children, primarily living in their own single-family homes with two cars.

Residents of some tapestry segments are very unlikely to plan a backpacking vacation.  They are City Dimensions, High Rise Renters, International Marketplace, Las Casas, Newest Residents, and Pacific Heights.  These segments have an index of 50 or below for going on a backpacking vacation.  This means they are ½ as likely (or less) as the average American to do so.  Many of these tapestry groups are part of the Global Roots LifeMode group.  Ethnic diversity is a common thread within this group.  Global Roots’ residents are young, earn modest incomes, and tend to rent in multiunit buildings

Why Does This Matter?

Understanding the activities that consumers like to participate in locally can help businesses target potential customers.  Consumers who like hiking – either just for a weekend adventure or for a longer vacation – may be interested in a certain product or service or movie.  This information can aid in advertising or marketing or determining where to open a new retail store or restaurant that targets a particular type of customer or a service provider who is looking for that perfect customer.

As for me – I guess I am not in the demographic that is the normal hiker – either for day hikes or vacation.  I didn’t really need this analysis to tell me that (I knew that already) but it certainly helps companies that want to target consumers who would normally be the hikers.

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.

92101 – Who lives Here?

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Every year Esri, a geographic information systems company which also does data analysis, and its users congregate at the San Diego Convention Center for its annual user conference.  Its 12,000+ attendees take over the Gaslamp district and surrounding areas.  Since the company collects all this data, we know what type of people live in the neighborhood.  So who are they?  What type of people might we come across?  What are they interested in?

The zip code where the conference is location is 92101.  Here are some key stats about the area:

  • 2011 Population: 39,880
  • 2011 Households: 22,423
  • 2011 Median Age: 37.3
  • 2011 Median HH Income: $28,219

Esri developed the Tapestry Segmentation system that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.   The dominant tapestry segment in the 92101 zip code is Metro Renters.  They make up 72.5% of households in the zip code.  This segment is made up of young, educated singles just beginning their professional career in some of the largest US cities.  Most rent their apartments.  They are also, as a whole very active.

Some of the popular activities of people living in 92101 include the following:

  • 20.6% participated in weight lifting (176)
  • 12.1% participated in yoga (207)
  • 19.6% attended baseball game (133)
  • 14.9% played billiards/pool in last 12 months (155)

Not everyone in the 92101 zip code is the same.  One way to break down the zip code is to look at census block groups, which tell a more granular story about the residents.  This information can be used by retailers, product distributors, or advertisers to micro-target segments.

Median Age

As mentioned above, the median age of the 92101 zip code is 37.3.  This is just higher than the US median age of 37.1.  This is a bit surprisingly given the young Metro Renters segment that lives in the neighborhood, but this also shows that there is a range.

Zip Code 92101: Median Age by Block Group

It’s clear that there are some distinctly “older” and “younger” parts of the zip code like differentiated by cost of housing and type of housing.

Dining Out

The Gaslamp Quarter in San Diego is one of the top destinations for dining out in the area.  It has over 100 restaurant options from fast food to casual to high-end.  Households of the 92101 zip code spend $1,055 annually on dinner out.  While this may sound like a lot, it is actually about 25% less than the US average of $1,386.  In some ways, some might expect that since many of these residents live in apartments with small kitchens that they may eat out – especially with all of the dining options, but many residents are young with lower than average incomes, so that may not be an option.  There are areas of the zip code, though that do spend much more than the US average.

Zip Code 92101: Average Spent Dining Out per Household by Block Group

Exercise at Club

Not everyone loves to exercise, but people in the 92101 zip code seem to – as a whole – at least compared to other Americans.  The index for the likelihood for a resident of that neighborhood to exercise at least twice a week at a gym is 209.  This means that a resident of 92101 is 2.09 times more likely than the average American to go to the gym at least twice a week.  Approxmiately 9.5% of Americans go to a gym at least twice per week.  This, of course, doesn’t count people who exercise at home or do other activities, so it isn’t necessarily a measure of activeness.  The residents in 92101, though, do love the gym – comparatively.

Zip Code 92101: Likelihood of a Resident Going to Gym 2+ Times per Week by Block Group

Most block groups in the 92101 zip code have residents who love the gym.  Overall – it appears to be a love/hate thing in this area.  Block group either have a very high or low index – not a whole lot in between.

Baseball

The 92101 zip code is home to the San Diego Padres stadium – Petco Park.  One would think that residents who  live so close(some of who can walk) to the ball field would attend baseball games – and they do – at least more than the average American.  The index of the likelihood that a resident of 92101 attends baseball games is 133.  This means they are 1.33 times more likely than the average American to attend a baseball game. About 11.3% of Americans attend a baseball game each year.

Zip Code 92101: Likelihood of a Resident to Attend a Baseball Game by Block Group

Most block groups in the 92101 zip code have an above average likelihood of attending a baseball game – not surprisingly.   There is one small block group with a below average likelihood.  While I would expect all areas to be at least average in this neighborhood, one area that is below average isn’t unlikely.  I’m sure they are mostly Padres fans too.

Overall – what did we learn?  This is clearly a very active and young neighborhood – who apparently doesn’t mind all of the conference goers hanging out with them.

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.

Online Video – Who is Buying?

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Online video is an evolving new business for content creators.  Most video on the Internet is free.  It may be supported by advertising, but the consumer does not have to pay in order to consume it other than with time.  There are many companies, though, who charge for their content.  Content owners, of course, want to make money on their content – and if they get direct revenue for it, that is what they prefer.  There are few business models for online video today.

The first business model is video-on-demand.  This is where a consumer pays to rent a piece of content for a limited amount of time, typically 24-48 hours.  The content is usually downloaded on to a device, but it could be streamed as well.  Companies using this model include Amazon and Apple.  The second business model is subscription.  This is where a consumer pays a set price per month to watch all of the content he or she wants.  Companies using this model include Netflix and Hulu.  The third business model is download-to-own.  This is where a consumer purchases a digital copy of a piece of content and downloads it to their device.  Companies that use this model include Apple.

Consumers in some part of the country are willing to pay more than others.  Combing the revenues for the three business models mentioned above, we can analyze who spends and where they live.  Consumers on the coast of California, living in and arond Chicago, and on the east coast are more likely to pay more for online video than consumers in other parts of the country.

The zip codes where people are, on average, willing to spend the most per resident are:

  • 07078 – Short Hills, NJ
  • 22066 – Great Falls, VA
  • 10007 – New York, NY
  • 10514 – Chappaqua, NY
  • 60043 – Kenilworth, IL

Residents in each of these areas spend $4.57 or more per resident per year for streaming and downloading video.

Another method of looking at 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.

A recent analysis of online video viewers (both those who did and did not pay) found that the segment that has the biggest presence in the top online video viewers are Dorms to Diplomas, Metro Renters, Laptops and Lattes, Trendsetters, and Military Proximity residents.  Residents of these segments, though, are not as willing as others to pay for online video.  For example almost no segments where Dorms to Diplomas residents are dominant have an online video spend index of 200 or more.  That means this group is willing to watch online – if it’s free.

Residents of Top Rung are willing to pay for online video.  Over 99% of the census block groups dominated by this segment have an average of at least $2.72 spent on online video per resident per year – and many have much more.  This is twice the average American household.  This is clearly a segment to target.  Connoisseurs are also willing to spend.  Over 73% of the census block groups where that segment is dominant is willing to spend at least $2.72.

Who are the residents in these lucrative segments for online video?   Residents of Top Rung neighborhoods are mature, married, highly educated, and wealthy. The median age is 44.2 years and the median household income is $182,041.

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. Urbanization groups share a locale, from the urban canyons of the largest cities to the rural lanes of villages or farms.  High Society (one of the LifeMode segments) residents are willing to pay for online video.  Over 80.5% of census block groups where this tapestry segment is dominant have residents who, on average, spend $2 or more per year on online video.  This information can be used to help inform companies on who and where to target their services.

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.

Green Bay vs. Pittsburgh – Who Wins the Super Bowl of Beer?

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Beer and football have more in common than just drafts, especially at Super Bowl party time. And whether Green Bay or Pittsburgh wins the NFL’s Super Bowl XLV, we already know which city’s fans are less about six-pack abs than six packs of beer, thanks to Esri’s 2010 Consumer Spending database. Combined with the company’s powerful mapping technologies, we can visually analyze the data in just a few clicks and quickly learn the winners of the year’s Beer-Buying Bowl.

So what does our deep drink of data show? When it comes to beer, residents in Green Bay’s Designated Market Area outpour Pittsburgh in nearly every way, on a per-household basis, and both for in-home and out-of-home purchases. Pittsburgh, with nearly 2.5 times as many residents, buys more beer total, but on a per household basis, Green Bay’s thirsty Cheeseheads pack it in across every category:

Category Green Bay Pittsburgh
Beer and Ale, Home Purchases per Household $144.91 $133.58
Beer, Full-Service Restaurants per Household $82.47 $76.97
Beer, Fast-Food Restaurants per Household $18.29 $17.64

Neither town can claim the national beer-buying championship, however. Despite the nearby Napa Valley wine region, for instance, California’s Bay Area DMA (which includes San Francisco and Oakland) spends more on beer for in-home consumption than any other football town, some $236.49 per household. Some cynics might suggest that beer-buying bonanza has been fueled by the hometown teams’ flat performance in recent years, but it’s also been helped along by the region’s higher cost of living, and of drinking.

By contrast, while New Orleans has a reputation for letting les bon temps roulez in support of its beloved Saints, the DMA’s residents spend about half as much as those thirsty Bay Area folks, at just $122.51 per year for in-home beer consumption per household, Esri’s data analysis shows.

Bay Area residents also spend more in restaurants on beer than any other city, at $156.36 per household. That’s more than five times the average in Detroit, whose team’s less-than-leonine record in recent years might have left fans crying in their beers at the corner bar, but only at a kitten-sized rate of just $29.39 per household.

Want to learn more, whether about American beer-buying habits or any of hundreds of other products and services that consumers purchase every year? Consult Esri’s 2010 Consumer Spending database, which identifies hundreds of items in categories such as Apparel, Financial, Food & Beverage, Entertainment & Recreation, and Household Goods & Services.  You can use this database to:

  • Learn what products consumers want, and compare regional differences;
  • Compare your customers’ spending patterns to broader consumer trends;
  • Identify profitable customer types by their spending habits;
  • Tailor promotions to fit consumer demand.

To learn more about how Esri can help build your business, visit http://www.esri.com/data/esri_data/consumer-spending.html.