Implications for RAMS when SAARF moved to a new demographer for the universe updates The May RAMS 2012 release used the new 2011 population updates from IHS Global Insight estimates. These updates, which see the adult 15+ population growing by 2.7%, had a significant impact on the RAMS results due to the fact that there are some differences in the model they use to determine the population profile compared to the model used by the previous demographers. The industry should carefully examine these population changes, bearing them in mind when dealing with changed audience results as there can be some trend-line breaks. POPULATION UPDATE The new 2011 population updates from the IHS Global Insight estimates have had a significant impact on RAMS results. In total, the 15+ population has increased by 2.7%, from 34.02-million to 34.934-million, with a number of demographics changing because of this. For many media, the new population estimates have affected audiences in thousands, even if incidence does not reflect any change. By understanding the effects of the population update, the industry will be able to get a better understanding of what has happened to audience results. BACKGROUND TO THE POPULATION CHANGE The previous population update for RAMS reflected mid-year 2010 estimates supplied by the Bureau of Market Research of UNISA (BMR). The next population update was deferred to 2012, in order to take into account the mid-year 2011 estimates from Stats SA. This update was implemented in the May RAMS 2012 IHS Global Insight’s demographic model differs from the previously employed BMR model in a number of technical areas: The cohort component model handles mortality in a different way, specifically with regard to the impact of HIV/Aids. Specifically, the BMR model shows a greater impact. For regional distribution, slightly different techniques are employed. The model is checked for consistency with the economic, labour, income and development factors of every region in South Africa. The resultant population updates are, therefore, different to the previous population estimates for a number of demographics. RAMS Page 1 (2010 figures are derived from BMR population estimates, and 2011 figures are derived from IHS Global Insight population estimates.) SEX While the changes in male and female proportions have not been significant, the percentages are none the less closer together, indicating slightly more males. 2010 2011 ‘000 % ‘000 % Male 16 113 47.4 16 879 48.3 Female 17 907 52.6 18 055 51.7 AGE There are less 15-24 year olds in the IHS estimate. Numbers for the 25-49 age groups remain similar, while the estimates for 50+ are higher than they were with BMR. 2010 2011 ‘000 % ‘000 % 15-24 10 048 29.5 9 820 28.1 25-34 7 749 22.8 7 905 22.6 35-49 8 569 25.2 8 814 25.2 50+ 7 654 22.5 8 395 24.0 Significant increase POPULATION GROUP Significant decrease Most of the population increase has come from the black community, which has risen by over one million adults. The number of coloureds remains similar, as has the number of Indians. There has been a decrease in the white population by about 300 000. Media which target these population groups may see a difference in their audience in thousands. 2010 ‘000 2011 % ‘000 % Black 25 613 75.3 26 784 76.7 Coloured 2 942 8.6 3 006 8.6 Indian 927 2.7 936 2.7 White 4 538 13.3 4 208 12.0 Significant increase RAMS Significant decrease Page 2 COMMUNITY SIZE There have been many shifts in the classification of places. There has been growth in the metros, and two new metros have emerged: Krugersdorp and Germiston. Many places have had their community size either upgraded to city/large town status, such as Knysna and Barberton, while others, such as Brits and Vryheid, have lost this classification. 2010 2011 ‘000 % ‘000 % $ 250 000+ 11 541 33.9 12 700 36.4 $ 40 000-249 999 4 626 13.6 4 735 13.6 $ 500 -39 999 4 148 12.2 4 223 12.1 Total urban 20 314 59.7 21 658 62.0 Less than 500/rural 13 706 40.3 13 276 38.0 Significant increase; PROVINCE Significant decrease; $ Movement of places in urban categories The Western Cape, Northern Cape, Mpumalanga and Limpopo have remained fairly unchanged in terms of proportion to the total population. The Free State has declined significantly, down by 100 000. The Eastern Cape is down slightly. KwaZulu-Natal grew significantly in the previous BMR update, and has maintained these numbers. North-West is significantly down, by 400,000. The greatest difference has occurred in Gauteng, which is up by 1.3million, which makes sense intuitively, as this is where the country’s growth is. 2010 2011 ‘000 % ‘000 % Western Cape 3 524 10.4 3 556 10.2 Northern Cape 718 2.1 796 2.3 Free State 2 210 6.5 2 078 5.9 Eastern Cape 4 734 13.9 4 672 13.4 KwaZulu-Natal 7 148 21.0 7 117 20.4 Mpumalanga 2 340 6.9 2 487 7.1 Limpopo 3 752 11.0 3 724 10.7 Gauteng 6 882 20.2 8 201 23.5 North West 2 712 8.0 2 303 6.6 Significant increase RAMS Significant decrease Page 3 METROPOLITAN AREA In general, metros as a group have increased in size. All the Gauteng metros have grown – Pretoria and Reef in particular – with the exception of Soweto which has declined by 100 000. Durban has maintained but there has been a slight decrease in Pietermaritzburg as is the case for Cape Town. These changes could affect radio stations and other regional media. 2010 ‘000 2011 % ‘000 % Cape Town 2 298 6.8 2212 6.3 Cape Town Fringe 332 1.0 313 0.9 PE/Uitenhage 853 2.5 885 2.5 East London 386 1.1 388 1.1 Durban 2 063 6.1 2096 6.0 Pietermaritzburg 372 1.1 317 0.9 Kimberley 133 0.4 139 0.4 Bloemfontein 317 0.9 358 1.0 Vaal 716 2.1 840 2.4 Greater Johannesburg 1 934 5.7 2127 6.1 Soweto 907 2.7 804 2.3 Reef 2 710 8.0 3365 9.6 Pretoria 1 344 3.9 1615 4.6 Significant increase Significant decrease In addition to the new IHS Global Insight estimates, the RAMS May 2012 release also included the latest small urban/rural data, covering July to December 2011 fieldwork. SUGGESTIONS ON HOW TO LOOK AT THE RAMS DATA BEARING THE NEW UNIVERSE CHANGES IN MIND As different radio stations have different target markets not all of them will have been affected to the same degree by the new universe updates i.e. if a big part of your specific radio station’s target market is white, the fact that in the new universe update whites as a group are significantly down will influence your radio station more than one where this is not a big part of their target market. Although the new universe profile makes it difficult to establish what movement is due to the population changes and which are not, it is possible to see movements above and beyond those imposed by the new demographer when users drill down into the data. RAMS Page 4 If you look at East Coast Radio for example and you look within KwaZulu-Natal (compare province within province as that takes care of any variation between provinces due to the new update) for the February RAMS 2012 release (BMR figures) and the RAMS May 2012 release (IHS figures) you can compare the universe movements for certain demographics versus the station’s movements for these demographics. KwaZulu-Natal Feb Rams 2012 (BMR) 7 148 000 May RAMS 2012 (IHS) 7 117 000 Population change = East Coast Radio change - Population Group % % Black 80.2 82.8 + + Coloured 1.0 1.1 = = Indian 10.3 9.4 = - White 8.5 6.7 - - Please note that only the Indian audience moved in a different direction to the population changes, with the rest of the changes being in line. From the above table we can see that KwaZulu-Natal as a province has stayed stable in the population update, but that East Coast Radio has lost listeners To understand what is happening, it is important to also look at the station’s profile within the province: East Coast’s profile is only 50% Blacks, and this is the group showing growth within KwaZulu-Natal. The population drop in White adults is impacting on East Coast’s total thousands. In addition, there was some real decline in Indian audience. Users should also note that when there is a universe update (whether done by a new demographer or the same demographer) the figures in thousands that you look at may not be directly comparable with one another. In this instance the figures for the 15+ population in total went from 34.02-million to 34.934-million. When calculating the change from one year to another, it is extremely important that you use the percentage figures and not the thousands as a percentage is based on the relevant population total. Before deciding if a station is going up or down, you should review at least three releases, although it might take longer to understand a trend. Since the May 2012 RAMS release, there are now also a June and August 2012 RAMS release and thus one can use three RAMS releases to see if your radio station is declining or growing since the demographer change. Smoothing the data helps to detect patterns within the data, while cancelling out “noise”. That is, if you look at an average of the data, outliers or extreme incidences become moderated by the previous releases. This can be done using a linear, or moving average equation to show an average across the releases in Excel. It is also very important when you compare data over a period of time to take the margin of error, or significant difference into account. Margin of Error is the relationship between the sample and the population it represents. It helps to determine whether a figure has changed significantly from survey to RAMS Page 5 survey. That is, if the change has been a statistically meaningful change. For more information on how to calculate the Margin of Error go to: http://www.saarf.co.za/amps/calculatesignificant/Significant%20Difference%20User's%20Guide.pdf Other aspects that users should bear in mind when comparing one RAMS release with another are the following: Make sure you have not eroded your sample size with too many filters Look at the whole picture i.e. even if you are only interested in LSM 8-10, do a run that has LSM 1-4, LSM 5-7 and LSM 8-10 in. This way you can look at your “target market” in relation to the rest. In fact you might find out that your “true” target market is actually LSM 5-7 and not LSM 8-10. Make sure there were no unusual events like the “World Cup Soccer” in your fieldwork period Don’t just look at your station, also look at competing media and other activities Look at extraneous factors like a bad economic downturn Look at all the internal changes you have made at your own radio station, remembering that the effect of this can be in the “system” for a long time. For more detailed information on the “Best Practice for using RAMS Survey Data” go to: http://www.saarf.co.za/RAMS/Best%20Practice%20Note.docx END RAMS Page 6