Peter Sleight: Geodemographic Classification Systems - The New Breed
08 July 2014

Since 1981, the two to three years after the publication of the UK population census has seen the launch of a new wave of geodemographic classification systems, and this decade has been no exception; over the past fifteen months or so, seven new systems have launched, with one more expected in the Autumn. It is a rich mixture of approaches to a common theme – how best to classify and target consumers in the second decade of the second millennium. Geodemographics reinvents itself yet again!

The most notable innovations this decade relate to two key factors; the ability to update, present in most systems this time, and the all-pervasive heightened importance of social media and digital marketing.

The first company to launch a new system in March 2013 was CACI with the new ‘Acorn’. Previously apparently wedded to the census source, CACI did not use any census data in this build, but a wide range of datasets, including public sector Open Data and administrative data in addition to proprietary databases created by CACI and data from lifestyle surveys. Postcodes are classified in a hierarchical structure. Click here for more information on CACI and Acorn.

The next new geodemographic system to launch this decade (in May 2013) was ‘Censation’, from AFD Software. The solution uses variables from the 2011 Census, plus interview and Land Registry data. It is a neighbourhood classification at unit postcode level and unusually, it is free with AFD name & address management software. Click here for more information on Censation and AFD.

Following delays waiting for small-area 2011 Census output, TRAC Consultancy’s ‘Sonar’ classification was launched in January 2014. In addition to census data, TRAC used additional public sector data sources and is post-stratified into groupings by lifestage and affluence. Click here for more information on TRAC and Sonar.

Next was ‘Personicx’, from Acxiom, the prime data input into Personicx being is its own on/offline lifestyle survey data - no Census data was used. The Personicx solution works across all levels of geography – postcode, household, and individual, and is apparently being increasingly used within online environments for ad targeting in partnerships with such as Facebook and eBay. It is key to the company’s cross-platform global Audience Operating System. The segmentation can be visualised via the Personicx ‘Eye’, click here for more information.

Experian was the next company to launch, with its latest version of ‘Mosaic’. Experian illustrated the launch with notable changes in UK Society since the 2001 census. Following an extensive exercise to assemble an very wide range of data inputs including new patterns of channel preference, the Mosaic segmentation was built on Experian’s ‘ConsumerView’ picture of all UK adults, using actual data at both individual and household level with the same Mosaic types being assigned to both individual households and postcodes. The visualisation tool also allows for client customisation. Click here for more information on Mosaic and Experian.

‘CAMEO’, from Callcredit Information Group followed. CAMEO uses Census data and Open Data, and is built with dynamic links to Callcredit’s consumer database, Define, containing actual, lifestyle, survey and transactional data. It will be updated dynamically so as to accurately reflect changing consumer characteristics by recognising that people move between segments when they experience a dramatic change in affluence or a key life event. It is built in three tiers; individual, household and postcode and CAMEO types can be explored via clicking here.

The 2011 Area Classification of Output Areas, or ‘OAC’, has been produced by University College London (UCL) in collaboration with ONS. It is currently being reviewed by ONS, and is scheduled to be launched on July 18th. OAC is a ‘classic’ census data only product and is unusual in being free to use (Open Data). It is a hierarchical classification and is ‘general purpose’, although specialised versions may be produced in future. The Open methodology means that it could also become a tool for creating bespoke classifications. The product is supported by the renowned mapping of UCL CASA and ‘Pen portraits’ of all clusters in the hierarchy have been produced. Details can be found by clicking here.

The final classification, expected to be launched in the Autumn, is ‘P² ‘ ( P-squared, People & Places) from Beacon Dodsworth. Unlike the 2001 census based product, it will incorporate economic factors, with the ability to update as regional economies change by defining Primary Urban Areas (aggregations of Local Authorities). Using Census variables they have analysed the factors that lead to ‘success or struggle’ and produced ‘Urban’ and ‘Rural’ clusters. The hierarchical P2 classification is being built inside the economic clusters. In addition to census data, P2 will use the British Population Survey to provide extra descriptive variables, such as lifestyle and income measures. More details can be found if you click here.

See the full unabridged article in the June issue of Database Marketing, available both online and in hard copy. 

Any views or opinions presented are solely those of the author and do not necessarily represent those of the MRS Census and Geodemographic Group unless otherwise specifically stated.