This presentation highlights key Canadian demographic trends. Presented by Dr. Doug Norris, Senior Vice President at Environics in March 2013 as part of IAB Canada's MIXX Conference. The first slide is a video from Jan Kestle, President & Founder of Environics. This may not play for viewers within SlideShare so forward through to the following slides for the data Environics compiled for this presentation.

1. The use of PRIZM to better target an
increasingly diverse consumer base
Doug Norris
Senior Vice President and Chief Demographer
Presented at IAB Canada MIXX Conference
Toronto
March 21, 2013

2. The use of PRIZM to better target an
increasingly diverse consumer base
Doug Norris
Senior Vice President and Chief Demographer
Presented at IAB Canada MIXX Conference
Toronto
March 21, 2013

3. Overview of Presentation
 Key demographic Trends
 Overview of PRIZM Segmentation System
 Some applications for digital media
3

4. Key Demographic Trends
4

5. A growing consumer base
More concentrated in large urban areas
5

6. Population will continue to grow due to immigration
Observed and Projected Population Growth, Canada
Actual
Projected
2.0%
1.5%
Immigration 7.5 per 1000 population
Medium Projection
1.0%
0.5%
0.0%
-0.5%
-1.0%
1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051
Total Population 2051
49 Million
Source: Statistics Canada, Population Estimates and Projections
6

7. Population has gradually shifted west for 50 years
Share of Total Population, (%)
1961
1971
34
29 28
26
25
1981
36 35
1991
2001
2011
38
37 38
24 24
20 21
16
10 10
9
9
10
8
Atlantic Provinces
Source: 1961-2011 Censuses
7
Quebec
Ontario
9
8
8
7
Manitoba and
Saskatchewan
23
24
18
7
Alberta and British
Columbia
7

8. Growth concentrated in large urban areas
Canada 2011 Population Estimate– 34,528,000
% Growth 2006-2011
10%
Rural Small
Town
18%
6%
6 Largest
CMAs
46%
Smaller
Urban
13%
9.0
8%
6.0
4.7
4%
3.4
2%
2.3
%
Other CMAs
23%
Source: Statistics Canada, Population Estimates Adjusted for Undercount
Canada
6 Largest Other
CMAs
CMAs
Smaller
Urban
Rural
Small
Town
8

9. Many more
older consumers
9

10. In a few years, more seniors than children;
in 20 years, seniors make up nearly a quarter of Canada’s population
Percentage of Population, Canada
0-14
65 and over
40
35
30
25
20
15
10
5
0
1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 2016 2021 2026 2031 2036 2041 2046 2051
Source: Statistics Canada, Census 2021-2006, Population Projections 2011-2041
10

11. Ready or not here come the Boomers
Boomers Born 1946-1965
 Today

9.5 Million aged 47-66

4.0 Million aged 67-86
 By 2032

7.9 Million aged 67-86
11

12. Aging will shift more expenditures to older ages
and slow growth in total spending
Percent of Households
aged 55 and over
Percentage of Expenditures
Age 55 and Over
Percent Change in Total
Expenditures
46
41
39
34
29
5
2012
2022
Source: Calculations by Environics Analytics
2012
2022
Households…
Households…
12

13. More diversity in families and households
13

14. Only one in four households is a couple with children under age 25
Households in Canada, 2011
Multiple family
2%
One person
28%
Lone
parent
10%
Source: Statistics Canada, 2011 Census
Other
4%
Couples with
children
26%
Couples
without
children
30%
14

15. Percentage of young adults living with parents has leveled off
Young Adults Living with Parents, Canada, 2011
20 to 24 years old
25 to 29 years old
60%
60%
56
50%
49
40%
57
60
59
50%
51
40%
42
30%
30%
20%
20%
10%
10%
0%
0%
1981
1986
1991
1996
2001
2006
Source: Statistics Canada, censuses of population, 1981 to 2011.
2011
21
15
23
1996
2001
25
25
2006
2011
17
11
1981
1986
1991
15

16. The mosaic is the new mainstream
16

17. Source countries for immigration have changed dramatically
Percent of Landed Immigrants by Region of Birth, Canada, 2006
25
36
19
3
16
4
11
4
69
8
90
17
11
17
7
11
9
10
6
3
Before 1961
50
40
49
Middle East and West
Central Asia*
31
11
1961-1970
1971-1980
Caribbean, South and
Central America
Africa
7
4
United States and
Oceania
7
6
3
8
3
Europe
1981-1990
1991-2000
2001-2006
Asia (except West
Central Asia)
Period of Immigration
* Includes Afghanistan, Turkey, and Central Asian Republics of former USSR
Source: Statistics Canada, 2006 Census
17

18. Cultural diversity will continue to increase
Projected Concentration of Visible Minority Population
48
Toronto
63
46
Vancouver
26
Montréal
Edmonton
Kitchener
39
26
Calgary
38
20
33
Ottawa-Gatineau
Winnipeg
59
Abbotsford
Windsor
% 2011
% 2031
Canada
2011 19%
2031 31%
20
31
Guelph
Hamilton
London
19
32
18
27
17
28
16
25
15
25
14
22
20
29
Source: Statistics Canada, Projections of the Diversity of Canada's Population, 2006-2031
18

19. Education And Income
19

20. Women are more highly educated and gap is widening
Percentage of Population with University Degree, Canada, 2012
Males
36
Females
36
30
26
25
24
24
21
20
11
25-34
35-44
45-54
55-64
65 and over
Age Groups
Source: Statistics Canada Labour Force Survey, May 2012
20

21. Males have higher incomes but gap is smaller
Median Individual Total Income, Canada
$45,000
$40,000
$35,000
Male
$30,000
Both
$25,000
Female
$20,000
$15,000
$10,000
$5,000
$0
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: Statistics Canada Income Statistics
21

22. In terms of income increases
Seniors have fared the best; young households the worst
Index of Median Income (2010$), All Family Units, Canada
170
25-34
35-44
45-54
55-64
65 and over
160
150
140
Index
100 = average
130
120
110
100
90
80
70
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Source: Statistics Canada, Income Statistics
22

23. How PRIZM can help digital media planning?

24. PRIZMC2 Segmentation System
• 66 segments or clusters that capture:

Socio-economic status

Urbanity (Urban, Suburban, Exurban, Town, Rural)

Ethnic diversity (13 clusters)

Francophones (15 clusters)

Lifestage (Young, Family, Mature)
24

25. Sample Customer Profile Using PRIZMC2
• Based on profile, target groups are
identified
• Typically 3 to 5
• Example of a target group – Affluent
Families
Affluent Families
Young and mature couples living in the
centre of large Canadian cities as well
as young families with new kids living
in the suburban and exurban areas of
those same cities

26. Coding surveys to PRIZMC2 provides
a wealth of information on population segments
Examples of Surveys that are coded to PRIZM

Private Sector
 Environics Research Social Values

Surveys of Consumer Behaviour/Media Use
•
•
•
•

Print Measurement Bureau (PMB)
Bureau of Broadcast Measurement (BBM)
Newspaper Audience Databank (NADBank)
Canadian Financial Monitor (CFM)
Social Media Use
• Delivinia’s AskingCanadians

Government Surveys
 Survey of Household Spending
 Canadian Community Health Survey (CCHS)
 Travel Attitudes & Motivations Survey (TAMS)
Environics Analytics 2012
26

27. Uses of PRIZM

Identify target groups based on PRIZM profile of some characteristic of
interest

Once a target group has been defined, make use of survey or other data
linked to PRIZM to get deeper understanding of consumer characteristics
(demographics, social values, shopping behaviour, expenditure patterns, etc.)
Environics Analytics 2012
27

28. Retail preferences for four sample segments
Social Values
eShopper Behaviour
eShopper Behaviour
Social Values
Need For Escape
Online Purchase Preference:
• Financial Products & Services
• Media (books, music, videos)
• Arts & Entertainment
Consumption Evangelism
Time Stress
Consumption Evangelism
• Open to receiving marketing
messages via mobile
Online Purchase Preference:
• Financial Products & Services
• Home Electronics/Computers
• Household Appliances/Furniture
• Media (books, music, videos)
• Beauty & Cosmetics
• Clothing
• Arts & Entertainment
Time Stress
• Likely to shop on mobile device
• Research online frequently
• Rate/Review products daily
• Share deals through Social
Media
Saving on Principle
Discriminating Consumerism
Consumptivity
Importance of Brand
Pursuit of Originality
• Research online frequently
• Search online classifieds (i.e.
kijiji) daily
Education
Ethnic Presence
Pursuit of Originality
Need For Escape
Importance of Price
Saving on Principle
Confidence in Advertising
• Open to receiving marketing
messages via mobile
Job Type
Ethnic Presence
• Likely to shop on mobile device
Social Values
eShopper Behaviour
eShopper Behaviour
Social Values
Time Stress
Online Purchase Preference:
• Household Appliances/Furniture
• Beauty & Cosmetics
• Clothing
Online Purchase Preference:
• Low across all categories
Financial Concern Regarding
• May consult 1 or 2 sources online
but tend to gather information
via phone more frequently than
any online sources
Control of Privacy
• Want the help of a customer
service associate when
shopping
Brand Genuineness
Saving on Principle
Importance of Price
Consumption Evangelism
Need for Status Recognition
Confidence in Advertising
Consumptivity
• Consult from 2 to 5+ sources
online when shopping
• Share deals through Social
Media
Enthusiasm for Technology
Education
Ethnic Presence
• Open to receiving marketing
messages via mobile
Joy of Consumption
• Likely to shop on mobile device
Concern for Appearance
• Above average indicated that
they do not own a mobile
device
the Future
Canadian Identity
Ethical Consumerism
Joy of Consumption
Education
Ethnic Presence

29. How are Canadians shopping online?

30. Canadian online purchase preferences
Percent of Canadians stating purchase preference as online via
computer by product category
Young, educated, urban

31. Who are big online spenders?
44% of Canadians spend $100+ on a monthly basis
Spent $100+ once or twice in the past month
High
Segments with an
index above 120 tend
to be urban and
educated
Index: 120
Above Average
A mix of
urban, suburban, exurb
an and town clusters
are above 100 but
below the 120 index
Note: Results are based on usage in the past 2 months

32. In which categories do Canadians spend the most?
Percent of Canadians who spent $100 or more
by product category
Vacation (31%)
Event Tickets (20%)
Gift Card (9%)
Beauty and Cosmetics (4%)
Home & Garden (3%)
Note: Results are based on usage in the past 12 Months

33. How has online shopping influenced
the way Canadians gather and share product information?

34. Where do Canadians gather information before shopping?
87% of respondents consult at least one source online before making a purchase; 44%
consult two or more sources
While most Canadians consult retailer
and manufacturer websites for
information when shopping, a wide
range of consumers also consult other
sources.
Urban, ethnic, young
segments
High proportion of
francophone segments
Urban, young segments
Ethnic segments

35. What information are Canadians looking for?
Information sought:
Mix of urban, exurban, town, rural

36. Which consumers are making their voices heard online?
Areas of Toronto CMA
with segments that
rate and review
products on a daily
basis tend to include
predominant ethnic
presence.
 56% of Canadians rate or
review products monthly
 12% do so weekly
 2% do so daily (3% of
Torontonians)
Top Toronto CMA clusters that
rate/review products daily (3%)
Note: Results are based on usage in the past 2 months

37. Emerging trends: Which segments are receptive to a
mobile marketing message? How do consumers combine
channels?

38. Which segments are receptive to
mobile and social marketing campaigns?
Both Profiles
Likely to share
shopping
deals/product
information through
social media
channels
(18%)
Open to receiving
relevant marketing
messages on mobile
device from trusted
retailers
(11%)
 Urban and suburban ethnic segments
 Cuts across all income levels

39. Segments responsive to a call to action
About once or twice a month: Visited website
after seeing an address on TV (53%)
Likely to be rural and older
Note: Results are based on usage in the past 2 months

40. Not all Canadians are eager to adopt
online shopping trends

41. Why do some consumers resist online shopping?
The eShopper PRIZMC2Link allows marketers to understand who prefers
bricks-and-mortar retail shopping over e-commerce and why
Urban young, upscale and elite
High proportion of
francophone segments

42. Understanding experiential shoppers
Top 10 clusters (by index) that enjoy the experience of shopping in a store vs. online
Social Values
Spend Categories for Prefer In-Store
Need For Status Recognition
Clothing
“It is important that people admire the things that I own”
Joy of Consumption
Men’s Clothing
Women’s Clothing
“To buy myself something new is always very gratifying for
me”
Footwear
Concern for Appearance
Personal Care
Pursuit of Novelty
Recreation
“I always choose my clothes with great care”
“I am willing to try new products, places for vacations, or
restaurants just for the pleasure of novelty”
Non-Athletic Footwear
Electric Hairstyling/Personal Care Appliances
Children’s Toys/Games
Artists' materials/handicraft/hobbycraft kits

43. Summary
 Key demographic trends mean an increasingly diverse consumer base
 Segmentation can help in identifying and better understanding the
diversity among consumers and Vancouver
43

44. The use of PRIZM to better target an
increasingly diverse consumer base
Dr. Doug Norris
Senior Vice President and Chief Demographer
doug.norris@environicsanalytics.ca
613-592-3402
44