Geodemography
Encyclopedia
Geodemography includes the application of geodemographic classifications for business, social research and public policy but has a parallel history in academic research seeking to understand the processes by which settlements (notably, cities) evolve and neighborhoods are formed. It links the sciences of demography
, the study of human population dynamics, geography
, the study of the locational and spatial variation of both physical and human phenomena on Earth,http://www.iowageographer.com/research.html and also sociology
. In short, geodemography is the art and science of profiling people based on where they live. Geodemographic systems estimate the most probable characteristics of people based on the pooled profile of all people living in a small area near a particular address.http://www.rdaresearch.com.au/resources.php
and his studies of deprivation and poverty in early twentieth century London
, and the Chicago School of sociology
. Booth developed the idea of 'classifying neighborhoods', exemplified by his multivariate classification of the 1891 UK Census data to create a generalized social index of London’s (then) registration districts. Research at the Chicago School - though generally qualitative in nature - strengthened the idea that such classifications could be meaningful by developing the idea of ‘natural areas’ within cities: conceived as geographical units with populations of broadly homogenous social-economic and cultural characteristics.
The idea that census outputs could serve to identify and to characterize the geographies of cities gathered momentum with the increased availability of national census data and the computational ability to look for patterns in such data. Of particular importance to the emerging geodemographic industry was the development of clustering techniques to group statistically similar neighborhoods into classes on a 'like with like' basis. More recently, data have become available at finer geographical resolutions (such as postal units), often originating from private commercial (i.e. non-governmental) sources.
Commercial geodemographics emerged from the late 1970s with the launch of PRIZM by Claritas in the US and ACORN
by CACI
in the UK. Geodemography has been used to target consumer services to 'ideal' populations based on their lifestyle and location. These parameters have been taken from geographical databases as well as from electoral lists and credit agencies. Combining these builds a picture of the population characteristics in different locations. The geodemographic data that this provides can then be used by marketers to target information towards those that they want to influence. This can be in the form of sales, services or even political information. At heart, geodemographics is just a structured method of making sense of complex socio-economic datasets.
in collaboration with Dan Vickers and Phil Rees
of the University of Leeds, released a free small scale social area classification of the UKhttp://www.statistics.gov.uk/about/methodology_by_theme/area_classification/oa/default.asp based on 2001 UK small area census data. Similar classifications had been developed for earlier censuses, notably by Stan Openshaw and colleagues at Newcastle and Leeds Universities, but access to these generally was restricted to the academic communities.
The 2005 Output Area Classification (OAC) of the UK is a move to 'open geodemographics' and reflects a concern that applications of commercial geodemographics in policy and social research can otherwise be 'black box': it is not always clear exactly what variables were used to classify small areas and to define their neighbourhood type, how those variables were weighted, or how similar (or otherwise) each of the neighbourhoods within a class type actually are. Open geodemographics provides such information (because it is not constrained by commercial interests) and is an important development for applied social research that also seeks to understand and to explain the roots causes or processes that generate aggregate spatial patterns of social behaviour and attitudes. The Output Area Classification is now supported by a user group here.
Geodemographic profiles have widened their application in the UK, with many life insurance companies and pension funds using them to assess longevity for pricing and reserving.
, general purpose geodemographic systems summarises a broad range of profiling data, largely derived from the Australian Census
to create a thumbnail sketch of the type of people living in a particular small area. These small areas are either CCD (Census Collection District)http://www.marketfind.com.au/index.php?action=help&helpcatID=670&helpID=5074 or a sub-CD area, like a Meshblock.
The types of characteristics mainly taken into account in geodemographic system construction are:
In 1987, geodemographic systems were first introduced as social analysis tools with CCN's (later Experian
) introduction of the MOSAIC system. In 1990, RDA Research built their first system, geoSmart.
This may not matter for commercial and service planning applications but is of some concern for public sector and social research. A way forward is to integrate geodemographics with more statistical frameworks of analysis, using multilevel methods for example.
NuMaps DemographicDrapes
Demography
Demography is the statistical study of human population. It can be a very general science that can be applied to any kind of dynamic human population, that is, one that changes over time or space...
, the study of human population dynamics, geography
Geography
Geography is the science that studies the lands, features, inhabitants, and phenomena of Earth. A literal translation would be "to describe or write about the Earth". The first person to use the word "geography" was Eratosthenes...
, the study of the locational and spatial variation of both physical and human phenomena on Earth,http://www.iowageographer.com/research.html and also sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
. In short, geodemography is the art and science of profiling people based on where they live. Geodemographic systems estimate the most probable characteristics of people based on the pooled profile of all people living in a small area near a particular address.http://www.rdaresearch.com.au/resources.php
Origins of Geodemography
The origins of geodemographics are often identified as Charles BoothCharles Booth (philanthropist)
Charles Booth was an English philanthropist and social researcher. He is most famed for his innovative work on documenting working class life in London at the end of the 19th century, work that along with that of Benjamin Seebohm Rowntree influenced government intervention against poverty in the...
and his studies of deprivation and poverty in early twentieth century London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and the Chicago School of sociology
Chicago school (sociology)
In sociology and later criminology, the Chicago School was the first major body of works emerging during the 1920s and 1930s specialising in urban sociology, and the research into the urban environment by combining theory and ethnographic fieldwork in Chicago, now applied elsewhere...
. Booth developed the idea of 'classifying neighborhoods', exemplified by his multivariate classification of the 1891 UK Census data to create a generalized social index of London’s (then) registration districts. Research at the Chicago School - though generally qualitative in nature - strengthened the idea that such classifications could be meaningful by developing the idea of ‘natural areas’ within cities: conceived as geographical units with populations of broadly homogenous social-economic and cultural characteristics.
The idea that census outputs could serve to identify and to characterize the geographies of cities gathered momentum with the increased availability of national census data and the computational ability to look for patterns in such data. Of particular importance to the emerging geodemographic industry was the development of clustering techniques to group statistically similar neighborhoods into classes on a 'like with like' basis. More recently, data have become available at finer geographical resolutions (such as postal units), often originating from private commercial (i.e. non-governmental) sources.
Commercial geodemographics emerged from the late 1970s with the launch of PRIZM by Claritas in the US and ACORN
ACORN (demographics)
ACORN is a geodemographic information system categorising all United Kingdom postcodes into various types based upon census data and other information such as lifestyle surveys....
by CACI
CACI
CACI International Inc is a professional services and information technology company headquartered in Arlington, Virginia. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. The company has approximately 13,700 employees in over 120 offices in the U.S. and...
in the UK. Geodemography has been used to target consumer services to 'ideal' populations based on their lifestyle and location. These parameters have been taken from geographical databases as well as from electoral lists and credit agencies. Combining these builds a picture of the population characteristics in different locations. The geodemographic data that this provides can then be used by marketers to target information towards those that they want to influence. This can be in the form of sales, services or even political information. At heart, geodemographics is just a structured method of making sense of complex socio-economic datasets.
Geodemography in the UK
In 2005 the Office for National Statistics (ONS)Office for National Statistics
The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the Parliament of the United Kingdom.- Overview :...
in collaboration with Dan Vickers and Phil Rees
Phil Rees (academic)
Professor Phillip Howell Rees FRGS, FBA, CBE is a British population geographer and demographer. He is currently Emeritus Professor of Population Geography at the University of Leeds.-Biography:...
of the University of Leeds, released a free small scale social area classification of the UKhttp://www.statistics.gov.uk/about/methodology_by_theme/area_classification/oa/default.asp based on 2001 UK small area census data. Similar classifications had been developed for earlier censuses, notably by Stan Openshaw and colleagues at Newcastle and Leeds Universities, but access to these generally was restricted to the academic communities.
The 2005 Output Area Classification (OAC) of the UK is a move to 'open geodemographics' and reflects a concern that applications of commercial geodemographics in policy and social research can otherwise be 'black box': it is not always clear exactly what variables were used to classify small areas and to define their neighbourhood type, how those variables were weighted, or how similar (or otherwise) each of the neighbourhoods within a class type actually are. Open geodemographics provides such information (because it is not constrained by commercial interests) and is an important development for applied social research that also seeks to understand and to explain the roots causes or processes that generate aggregate spatial patterns of social behaviour and attitudes. The Output Area Classification is now supported by a user group here.
Geodemographic profiles have widened their application in the UK, with many life insurance companies and pension funds using them to assess longevity for pricing and reserving.
Geodemography in Australia
In AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, general purpose geodemographic systems summarises a broad range of profiling data, largely derived from the Australian Census
Census in Australia
The Australian census is administered once every five years by the Australian Bureau of Statistics. The most recent census was conducted on 9 August 2011; the next will be conducted in 2016. Prior to the introduction of regular censuses in 1961, they had also been run in 1901, 1911, 1921, 1933,...
to create a thumbnail sketch of the type of people living in a particular small area. These small areas are either CCD (Census Collection District)http://www.marketfind.com.au/index.php?action=help&helpcatID=670&helpID=5074 or a sub-CD area, like a Meshblock.
The types of characteristics mainly taken into account in geodemographic system construction are:
- Age distributionPopulation pyramidA population pyramid, also called an age structure diagram, is a graphical illustration that shows the distribution of various age groups in a population , which forms the shape of a pyramid when the population is growing...
; - Socioeconomic statusSocioeconomic statusSocioeconomic status is an economic and sociological combined total measure of a person's work experience and of an individual's or family’s economic and social position in relation to others, based on income, education, and occupation...
indicators like income, education, and occupational status; - Household and family composition;
- Cultural factors, such as ethnicity, language spoken, country of birth, and (but not limited to) religion;
- Employment factors, such as type of job, type of industry, and hours of work;
- Household economic factors, like indebtedness, investments, and poverty;
- Regional factors (e.g. whether the resided area is classified as metropolitanMetropolitan areaThe term metropolitan area refers to a region consisting of a densely populated urban core and its less-populated surrounding territories, sharing industry, infrastructure, and housing. A metropolitan area usually encompasses multiple jurisdictions and municipalities: neighborhoods, townships,...
, provincial, or sparsely settled), and; - Residential stability.
In 1987, geodemographic systems were first introduced as social analysis tools with CCN's (later Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
) introduction of the MOSAIC system. In 1990, RDA Research built their first system, geoSmart.
Criticisms
Geodemographics has drawn critical attention. Some focus on the possible discriminatory and intrusive effects of geodemographic practices. Others wonder whether members of geodemographic groups really are sufficiently alike to be analysed together. The generally unknown variance within geodemographic groupings makes it difficult to assess the significance of trends found in data.This may not matter for commercial and service planning applications but is of some concern for public sector and social research. A way forward is to integrate geodemographics with more statistical frameworks of analysis, using multilevel methods for example.
Commercial demography systems
- CAMEOCameoCameo is a method of carving an object such as an engraved gem, item of jewellery or vessel made in this manner. It nearly always features a raised relief image; contrast with intaglio, which has a negative image...
by Eurodirect - OACOAC-Organizations:* Ohio Arts Council* Ohio Athletic Conference* One America Committee* Online Archive of California* Ontario Academic Credit* Ontario Access Coalition* Ontario Agricultural College* Ontario Arts Council...
by ONS/University of Leeds - ACORN by CACICACICACI International Inc is a professional services and information technology company headquartered in Arlington, Virginia. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. The company has approximately 13,700 employees in over 120 offices in the U.S. and...
- C-Australia by Pathfinder Solutions
- C-New Zealand by Pathfinder Solutions
- C-Japan by Pathfinder Solutions
- MosaicMosaic (geodemography)Mosaic UK is Experian’s system for classification of UK households. It is one of a number of commercially available geodemographic segmentation systems, applying the principles of geodemography to consumer household and individual data collated from a number of governmental and commercial sources...
by ExperianExperianExperian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US... - MicroVisionMicrovisionThe Microvision was the very first handheld game console that used interchangeable cartridges. It was released by the Milton Bradley Company in November . The Microvision was designed by Jay Smith, the engineer who would later design the Vectrex gaming console...
by NDS/Equifax - CrucibleCrucible (geodemography)Crucible is a geodemography computer system created by the United Kingdom-based grocery company Tesco. The system is run by a subsidiary Dunnhumby. The system collects information from the company's loyalty program, "Clubcard", as well as aggregating information from other geodemographic databases...
by TescoTescoTesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits... - geoSmart by RDA Research
- HomeTypes and ZoneTypes by Arvato Services (Bertlsmann)
NuMaps DemographicDrapes
External links
- Geodemographic mapping and reporting for the UK
- Output Area Classification User Group
- National Statistics 2001 Area Classification *Geodemographics Knowledge Base
- American Marketing Association definition of geodemography
- Demographic mapping and reporting for the UK
- Articles on geodemographics
- Claritas Geodemography History
- Health Geodemographics: Southwark Atlas of Health
- About Geodemographics - RDA Research
- Market Research Society of the UK Geodemographics Knowledge Base
- The Future of Geodemographics - conference presentations
- Internet-based neighbourhood information systems and their consequences