March 2008 Gauteng Wealth Survey. Avusa Media, (previously incarnated as Johnnic Media Investments, …, SAAN) has a proven track record among advertising.

March 2008

Gauteng Wealth Survey

• Avusa Media, (previously incarnated as Johnnic Media Investments, …, SAAN) has a proven track record among advertising agencies, marketers and media buyers as the media owner that provides credible, regular, up-to-date, solid information on our own and competitive media

• Foundation of solid research is the sample design – random probability ensures reliable tracking and generalisability of data

• As AVUSA titles target primarily LSM 6 to 10, a research programme was initiated in 2007 which would use a solid and reliable random probability sample, drawn from “affluent” suburbs

• What is a “wealthy” individual? What differentiates their consumption of products and media? Where do they shop, what do they wear, how can we communicate with them successfully? Hypothesis that wealthy consumers have a positive mindset resulting in a higher level of engagement with the media, their environment, their acquisition of “things”

Background

• Media Wealth Surveys were conducted in two key areas of interest to Avusa Media - Gauteng and Eastern Cape

• The main marketing objective was to provide media buyers and their clients with current information for media scheduling among adults living in main urban areas

• The research objective was to provide the market place with valid and reliable media consumption for cinema, internet, outdoor, print, (including free sheets and community papers in the relevant areas), radio and television together with branded information on selected product categories that are current or potentially major advertisers in AVUSA publications

• In addition a Wealth Measure or Index was developed to differentiate respondents in terms of their financial status.

• A total sample of 5 000 in Gauteng and 2 000 in Eastern Cape – probability sampling selecting areas of relative financial well being according to personal income (weighted to a population of 2 168 000). Fieldwork – June to August 2007

Background

Some comments about Gauteng Wealth Survey

"In an ever increasingly fragmented media environment, research which offers new and more robust insights is welcomed. It is encouraging that

Media Owners are prepared to invest significant money and resources to providing new market

insights." “What is important about this survey is that AMPS is used as the benchmark against which

the wealth results are measured and the two complement each other. The Wealth Survey also

highlights the debate around the issue of how large the affluent black middle class is. However, one has to bear in mind that this is the first time this survey has been produced. Had a survey of this nature been conducted pre-1994, we would be able to track the growth of affluence among blacks more accurately.

This survey does not provide historical comparisons; it merely demonstrates the current scenario.“ Gordon

Patterson: Chairman of the media industry body AMF and managing director of Starcom

“It suggests to me that we are going in the right direction — normally, it takes a generation for people

to move from middle class to upper middle class,” Saki Macozoma (The Times 20th February)

Demos of Gauteng Wealth vs National Currency - AMPS

%

%

Demos of Gauteng Wealth vs. National Currency - AMPS

Top Ten Newspapers Read - % Reach

%

Business/Finance Magazines (AIR)

‘000

General Interest Magazines (Average Issue Readership)

‘000

Home/Gardening Magazines (Average Issue Readership)

‘000

‘000

Men’s/Sport Magazines (Average Issue Readership)

‘000

Motoring Magazines (Average Issue Readership)

‘000

Women’s Magazines (Average Issue Readership)

‘000

Health/fitness Magazines (Average Issue Readership)

‘000

Travel Magazines (Average Issue Readership)

• Bearing in mind that The Times was only launched in June 2007 and the research was completed in the second half of last year the results are very positive.

• Those who have ever read = 425 000 • 94% fall into LSM 7-10; 64% into LSM 9-10• 58% White, 34% Black • 51% Male, 49% Female • 70% aged 35+ • 65% have a tertiary education

• One in two come from households with an income in excess of R20 000

• 57% are economically active • 37% have read an average of five out of five

issues• Nine in ten read The Times on the issue day

only – good for same day response• 94% read the title between 8am and 2pm• Close on 9 in 10 read The Times at home

TV Channels watched in past 7 days (by percentage)

%

Radio Stations listened to in past 7 days (by percentage)

%

INTERNET

Internet Usage

%

Rebased on those who have accessed internet in past 4 weeks

493 000 have accessed internet in past 4 weeks

Internet Access from…

%814 000 people read Sunday Times, The Times, Sowetan and/or Sunday World

6% of AVUSA readers have an ADSL line

3% have broadband wireless technology

AVUSA Readers who access the Internet …

%Rebased on those who access the internet

Wealth Measure (WM)A-H by those who have accessed the internet in the past four weeks

%WM-A – most prosperous groupWM-H – least prosperous group

WEALTH MEASURE

• A composite measure based on a number of wealth variables (using Principle Components Analysis – like LSMs)

• Number of cars, type of car, car price, property value, household contents, collectables, cash on hand, business value if sold, expenditure on watch, jewellery, perfume, handbag, sunglasses determinants of cluster into which respondent will classified

• Gauteng Wealth Survey respondents divided into 8 approximately equal groups of increasing prosperity – – WMh = least prosperous– WMa – most prosperous

Wealth Measure definition

Wealth Measure definition

Wealth Measure (WM)A-H by monthly Household income

WM-A – most prosperous groupWM-H – least prosperous group

Wealth Measure (WM)A-H by monthly Personal income

WM-A – most prosperous groupWM-H – least prosperous group

WEALTH MEASURE A(Most Prosperous Group)

• Average age of 45• 36% work for a corporation; 20% have their own

business• 57% are male• Average HH income of R65 063• Average Personal income of R33 558• 53% English as home language; 34% Afrikaans;

13% any Black language• 70% married• 55% have a post-matric qualification• 28% are studying towards a further qualification• 94% claim not to be emigrating in the next 12

months (pre-Polokwane, pre-blackouts)• 18% enjoy visiting game farms

Demographics of WM-A consumers

• 32% engage in some form of exercise (in total)• 26% belong to a gym/health club• 13% enjoy watching sport at the match venue• 10% play golf• 8% cycle• 5% ride horses• 3% do fly-fishing• 3% meditate or engage in some form of spiritual

relaxation technique• 20% go to the movies• 16% enjoy attending concerts, opera, ballet, theatre• 19% enjoy interior decorating or renovating• 17% have an interest in cars or bikes• 9% enjoy gambling at a casino

Demographics of WM-A consumers

Wealth Measure WM-A by weeklies

28

13

7 7 7 7 7

4 4 4

Sunday Times Rapport Beeld-Naweek Mail & Guardian Saturday Star City Press Saturday Star Sunday World SundayIndependent

CitizenWeekend

%

Wealth Measure WM-A by dailies

25

18 17 16

11

7 6 5

Business Day The Times The Star Citizen Beeld Pretoria News Sowetan Daily Sun

%

Wealth Measure WM-A by TV Stations

63

5754 54

40

SABC 3 e-tv Any DStv SABC 2 SABC 1

%

Wealth Measure WM-A by Radio Stations

43

34

25

1915

1311

9 85

HighveldStereo

Jacaranda 5FM Talk Radio702

Classic FM Mero FM RSG Kaya-FM Safm Y-fm

%

Activities most enjoyed by WM-A sector

22

24

24

29

31

35

38

42

43

57

69

19

21

13

31

26

39

42

40

46

54

62

70

56

Using a PC at home

Gardening

Surfing the net

Cooking/creating intersting dishes

Dining out

Listening to DVDs

Watching DVDs

Watching sport on TV

Reading magazines

Reading newspapers

Listen to the radio

Watching TV

WM-A Total Pop%

FINANCIAL WELL-BEING

Financial Well-being/Wealth Manifestation

%

PERSONAL WELL-BEING

Personal Well-being

%

SOUTH AFRICAN WELL-BEING

South African Well-being

%

OPTIMISM INDEX

Composite of:

• Personal WellbeingPersonal Wellbeing

• Financial WellbeingFinancial Wellbeing

• Personal AchievementPersonal Achievement

• South African WellbeingSouth African Wellbeing

Optimism Index

Four levels:• Very Optimistic

(513,629 - 24%)

• Optimistic (568,912 – 26%)

• Neither Optimistic nor Pessimistic (526,349 – 24%)

• Pessimistic (559,295 – 26%)

Optimism Index

WM H WM G WM F WM E WM D WM C WM B WM A

0

10

20

30

40

50

60

70

80

90

100

Pesimistic Neither pesimistic noroptimistic

Optimistic Very Optimistic

<= -1.78 -1.77 - -1.10 -1.09 - -.62 -.61 - -.32 -.31 - -.08 -.07 - .35 .36 - 1.30 1.31+

Optimism by wealth

PRODUCT INFORMATIONFinancial Information

PRODUCT INFORMATIONBanking

Financial Services Make Use Of

%

Banking Group Used

%

Of those who are banked…

%

Base – 1 724 000 (80%) are banked

Types of accounts among those who are banked…

%

Base – 1 724 000 (80%) are banked

How easy is it to get credit?

%

Base – 1 724 000 (80%) are banked

Prevalence of credit cards

%

Base – 370 000 (21%) have credit cards

Brokers/advisors

%

Base – 1 724 000 (80%) are banked

Retail Store cards and Medical Aid Schemes

%

How optimistic are those who are banked?

%

Optimism is a composite measure derived from scores obtained on personal well-being, financial well-being, South African well-being and personal achievement

PRODUCT INFORMATIONLoyalty Programmes

Loyalty Programmes

%

PRODUCT INFORMATIONInvestments

Investments personally have

%

Base - 512 000 (24%) who have some type of investment

vs 72% (AMPS 2006/7-Gaut)

Investments

%

Rebased on those who have any investments (512 000 – 24%)

Details of shares

%


Details of property ownership

%


Average value of property (R)

‘000

30% do not have this asset

Average value of vehicles/boats (R)

‘000


Average value of household contents/jewellery (R)

‘000


Average value of collectables (art, antiques, coins etc) (R)

‘000


Average value of investments/policies (R)

‘000


Average value of cash (R)

‘000


Average value of business (R)

‘000


PRODUCT INFORMATIONInsurance

Policies personally have

%

Insurance Products

%

Insurance Company Used - long term insurance

%

Rebased on those who have any long term insurance (1 042 000 – 48%)

Insurance Company Used - long term insurance

%

Rebased on those who have any long term insurance (1 042 000 – 48%)

Insurance Company Used - short term insurance

%

Rebased on those who have any short term insurance (230 000 – 11%)

Insurance Company Used - short term insurance

%

Rebased on those who have any short term insurance (230 000 – 11%)

PRODUCT INFORMATIONCell-Phones

Number of Cellphones/bills personally pay for

16

49

12

25

7

14

20

32

17

10

2+ pre-paid bills resp for

One pre-paid bill resp for

2+ contract bills resp for

One contract bill resp for

5+ cells in HH

4 cells in HH

3 cells in HH

2 cells in HH

1 cell in HH

Cells in HH-None

%

vs. 14% (AMPS Gauteng 2006/7)

Cellphone detail

55

23

2

76

1

6

27

45

78

Prepaid

Contract

Company Maintained

Privately Maintained

Virgin Mobile

Cell C

MTN

Vodacom

Personally have a cellphone

%

vs 69% (AMPS Gauteng 2006/7)

vs. 39% (AMPS 2006/7)

vs. 25% (AMPS 2006/7)

vs. 4% (AMPS 2006/7)

vs. 12% (AMPS 2006/7)

vs. 56% (AMPS 2006/7)

Cellphone usage and AVUSA readers

29

56

28

2

82

1

7

30

46

84

22

55

23

2

76

1

6

27

45

78

Hands free kit

Prepaid

Contract

Company Maintained

Privately Maintained

Virgin Mobile

Cell C

MTN

Vodacom

Personally have a cellphone

Total sample

AVUSA Readers

%

681 000 (84%) readers of AVUSA readers also have cellphones

Makes of Cellphones and AVUSA readers

3

5

15

18

56

3

6

15

19

54

LG

Sony Ericsson

Motorola

Samsung

Nokia

Total sample

AVUSA Readers

%

681 000 (84%) readers of AVUSA readers also have cellphones

AVUSA readers have a monthly cell expenditure of R294

24 000 (4%) of AVUSA readers have a cellphone as a company benefit and 8 000 (1%) receive a cellphone allowance from their company

Wealth Measure (WM)A-H by those who have cellphones

11 1110

11 1112

109

WM-A WM-B WM-C WM-D WM-E WM-F WM-G WM-H


PRODUCT INFORMATIONLuxury Appliances in Household

Luxury Appliances in Household - ranked

6

15

19

20

57

72

40

51

48

21

69

80

73

80

15

18

28

38

40

55

63

74

Dishwashing machine

LCD/Plasma TV

Tumble Dryer

Home security

Laptop/pc

Home Theatre System

DVD Player

Hi-fi Music Centre

AMPS Gauteng 2006/7 Gauteng Wealth HH Income R30 000+ Gauteng Wealth Total

%

Luxury Appliances Personally Own - ranked

4

4

12

23

33

48

63

8

5

14

25

42

46

72

Palm Held Device

Hand-held portable TV

Portable DVD player

IPOD/MP3/iRiver

Memory stick/flash-stick

Blue Tooth

Digital camera

Gauteng Wealth Total Gauteng Wealth HH Income R30 000+

%

Base - 803 000 (37%) who personally own electronic equipment

AVUSA Readers who have electronic goods - ranked

1223

66

11111213

1620

2224

2829

4063

6576

1222

45

9910111213

1818

2326

5563

74

Skype/VOIP

Hand-held portable TV

Palm Held Device

Broadband w ireless

ADSL line

Portable DVD player

Sony Playstation

IPOD/MP3/iRiver

Car TV/DVD player

Video camera

Memory stick

Laptop/electronic notebook

Blue Tooth

LCD/plasma TV

Digital camera

Home security system

PC desktop

Home Theatre system

DVD player

HiFi Music Centre

AVUSA readers Total sample

%

Wealth Measure (WM)A-H by those who have any electronic device in HH

11 1110 10 10

1110 10



PRODUCT INFORMATIONMotor Vehicles

Make of Motor Vehicle

923344566777

1623

3148

89

Other

Renault

Fiat

Audi

Hyundai

Honda

Mazda

Ford

Mercedes Benz

Opel

Nissan

BMW

VW

Toyota

German marque

Pers Own a vehicle

Vehicle in HH

%1 041 000 (48%) personally own a

motor vehicle; 1 923 000 (89%) have at least one vehicle in

their household

Rebased on those who personally own a motor vehicle



Year of Manufacture/New or used

42

58

36

17

10

16

15

7

Previously owned

New

1999 or earlier

2000-2003

2004

2005

2006

2007 %


vs 45% (AMPS Gauteng

2006/7)

Two in three of Sunday Times Readers bought their

vehicle new

Of those who personally own their own vehicle…

97

3

2

2

7

6

82

22

46

32

2

1

1

7

6

85

18

43

39

98Personally owned

Company-owned

Kombi/minibus

2-seater sports car

Bakkie 2/4-wh drive

4-wheel drive

Car

Three+-veh-HH

Two veh-HH

One veh-HH

Total who pers own veh

AVUSA readers

%


Of those who personally own their own vehicle…

96

71

13

56

76

14

50

95Wholly/partly resp-

veh purchasedecision

Undecided whenwill replace veh

Purchase price -R450 000+

Veh recoverysystem

Total who pers own veh

AVUSA readers

%


Average Vehicle Purchase Price = R196 100Average Vehicle Purchase Price – AVUSA readers =

R201 400

How optimistic are those who personally own their own vehicle?

20

23

27

30

16

24

28

27

Pessimistic

Neither

Optimistic

Very optimistic

Total pop-pers own veh AVUSA readers and Pers own vehicle

%


Wealth Measure (WM)A-H by those who personally own a vehicle

1718

16

910

16

11

3



PRODUCT INFORMATIONTravel

Travel in past 12 months

22

11

3

6

18

7

9

15

Stayed hotel/B&B-Total

Hired a car-Total

Travelled by air outsideSA-Total

Travelled by air in SA-Total

SABRE 2007 AMPS 2006/7 Gaut* Gauteng Wealth

%

13% booked airline tickets/travel package using the internet in the past four weeks

Base: those who have traveled in past 12 months (637 000)

57

22

23

10

30

44

22

28

50

29

19

9

32

41

26

29

53

21

18

10

26

41

18

21

55

17

18

8

24

41

14

18

Stayed hotel/B&B-Pers

Stayed hotel/B&B-Bus

Hired a car-Pers

Hired a car-Bus

Flew outside SA-Pers

Flew in SA-Pers

Flew outside SA-Bus

Flew in SA-Bus

R30000HH+ AVUSA&R30000HH+ AVUSA readers Those who travel-p12m

%

20% of AVUSA readers whose HH income exceeds R30 000 have used the internet in the past 4 weeks to purchase air tickets or travel packages

How optimistic are those who travel?

26

24

26

24

12

26

31

32

Pessimistic

Neither

Optimistic

Very optimistic

Total pop Travel-p12m

%


Wealth Measure (WM)A-H by those who have traveled in the past 12 months

21

17

1412

10 108

3



INTERNET

Internet Usage

4

10

12

63

4

6

8

9

11

21

22

19

23

None of these

Watched TV online

Read a weekly online

Read a mag online

Listened to radio online

Read a daily online

Read current news online

Sent/received email p7d

Accessed internet in p7d

Accessed internet in p4w

AMPS 2006/7 Gauteng Wealth survey

%

Rebased on those who have accessed internet in past 4 weeks

493 000 have accessed internet in past 4 weeks

AVUSA Readers who access the Internet …

1

3

6

6

6

8

9

9

11

13

15

19

22

24

45

68

69

2

3

5

7

6

7

7

8

10

14

13

20

19

23

42

64

70

Gambling

Download a podcast

Purchase groceries

Dating

Access/contribute to blogs

Purchase CDs/DVDs

Share trading

Purchase books

Make a cinema/theatre reservation

Games

Purchase air tickets

Directory services

Music downloads

Chat

Banking

Email

Research/obtaining info

Readers of AVUSA titles Total sample

%Rebased on those who access the internet

PRODUCT INFORMATIONRetail

Retail Outlets used in past 4 weeks – food/groceries/toiletries

21

1

1

6

5

6

10

8

25

32

23

5

9

9

14

18

19

27

28

30

31

56

62

Makro

Pick n Pay Family Store

Clicks

Woolworths

Checkers

Checkers/Hyperama

Spar

Pick 'n Pay Supermarket

Pick 'n Pay Hyper

Shoprite

Checkers/Shoprite Total

Pick 'n Pay Total

Gauteng Media Wealth

AMPS-Gauteng Only

%

7

8

11

20

21

21

26

28

33

34

55

70

5

9

9

14

18

19

27

31

28

30

56

62

Makro

Pick n Pay Family Store

Clicks

Woolworths

Checkers

Checkers/Hyperama

Spar

Shoprite

Pick 'n Pay Supermarket

Pick 'n Pay Hyper

Checkers/Shoprite Total

Pick 'n Pay Total

Total Pop

AVUSA Readers

%

Retail Outlets used in past 4 weeks – food/groceries/toiletries

Clothing stores used- past 3 months

4

5

3

5

9

6

16

9

9

20

4

6

6

7

8

11

12

14

18

24

Pep

Markhams

Totalsports

Foschini

Ackermans

Truworths

Jet

Mr Price

Woolworths

Edgars

Gauteng Media Wealth

AMPS 2006/7 Gauteng

%

121 000 (6%) have a My School card

341 000 (16%) belong to a retail club

525 000 (30%) have a retail store card

Clothing stores used- past 3 months

4

5

5

6

6

11

11

12

12

16

19

21

33

41

4

2

3

4

3

8

6

6

7

12

14

11

18

24

Pep

Queenspark

Stuttafords

Legit

Miladys

Ackermans

Totalsports

Markhams

Foschini

Jet

Mr Price

Truworths

Woolworths

Edgars

Total pop

AVUSA readers who boughtclothing-p3m

%

569 000 (70%) AVUSA readers have bought clothing or shoes in the past three months

How optimistic are those who have bought clothing/shoes – p3m?

16

26

29

29

22

25

28

25

26

24

26

24

Pessimistic

Neither

Optimistic

Very optimistic Total pop

Those who have bought clothing/shoes

AVUSA readers who have boughtclothing/shoes

%


Furniture/appliance stores used- p12m

1

2

2

2

2

2

2

3

3

4

Mr Price Home

Joshua Doore

Hyperama House & Home

At Home

Bradlows

Geen & Richards

Morkels

Furniture City

HiFi Corp

Game

%

Furniture/appliance stores used- p12m

4

4

5

6

9

5

8

8

10

9

13

14

1

1

1

2

2

2

2

2

2

3

3

4

Dion

Boardmans

Mr Price Home

Joshua Doore


At Home

Bradlows

Geen & Richards

Morkels

Furniture City

HiFi Corp

Game

AVUSA Readers who have bought furn/appl Total Pop

%266 000 (33%) AVUSA readers have bought furniture or appliances in the past twelve months

How optimistic are those who have bought furniture/appliances – p12m?

14

24

28

33

17

25

29

29

26

24

26

24

Pessimistic

Neither

Optimistic


Bought furn/appl

AVUSA readers who have boughtfurn/appl

%


Computers/electronic goods- p12m

1

1

1

1

1

2

2

3

4

4

OK Furniture

Stax

Clicks

Pick n Pay Hyper


Dion

Makro

Incredible Connection

HiFi Corp

Game

%

Computers/electronic goods- p12m

3

3

4

5

7

7

9

9

17

23

25

1

1

1

1

1

1

2

2

3

4

4

OK Furniture

Electric Express

Clicks

Pick n Pay Hyper

Stax


Dion

Makro

Incredible Connection

Game

HiFi Corp

AVUSA readers who bought comp/electronic goods Total Pop

%

186 000 (23%) AVUSA readers have bought computers or electronic goods in the past twelve months

How optimistic are those who have bought computers/electronic goods – p12m?

13

26

27

34

16

26

29

29

26

24

26

24

Pessimistic

Neither

Optimistic


Bought computers/electronic goods

AVUSA readers who have boughtcomp/elec goods

%


Wealth Measure (WM)A-H by those who have bought computers or electronic goods in p12m

18

15

9

11 11

14

9

5



Watches/jewellery- p12m

5

2

2

6

6

6

13

15

4

3

14

18

13

31

6

2

2

6

7

7

11

3

1

1

3

4

3

7

Other outlet

Direct sales

Independentjeweller

Sterns

Edgars

Arthur Kaplan

American Swiss

Total Pop

AVUSA Readers/bought jewellery

Those who have bought jewellery

R30 000+ HH

%

(317 000) 39% of AVUSA readers have purchased

jewellery/watches in the past 12 months

Wealth Measure (WM)A-H by those who have bought jewellery in p12m

17 17

12

1415

13

8

3



How optimistic are those who have bought jewellery/watches – p12m?

13

20

31

37

26

24

26

24

Pessimistic

Neither

Optimistic

Very optimistic

Those who have bought jewellery Total pop

%


March 2008

Thanks for your time

March 2008 Gauteng Wealth Survey. Avusa Media, (previously incarnated as Johnnic Media Investments, …, SAAN) has a proven track record among advertising.

Documents

internet slide

home slide

wealth measure slide

gauteng wealth survey

prosperous group slide

tertiary education slide

avusa media gauteng

media wealth surveys