THE ESTABLISHMENT SURVEY SEP 2017 FULL YEAR RELEASE

THE ESTABLISHMENT SURVEY SEP 2017 FULL YEAR RELEASE

THE ES JOURNEY 2

THE ES JOURNEY Future proofing model BRC and PRC begin ES talks ES tender process ES tender awarded ES contract signed ES work begins Jul 13 Oct 14 Feb-Aug 15 Aug 15 Oct 15 Oct-Dec 15 4

THE ES JOURNEY CONTINUED Q re design workshop Sample design workshop Pilot study Pilot debrief workshop Final q re Interviewer training In field Jan 16 Mar 16 Feb-Mar 16 May 16 June 16 1 July 16 Scrutiny of 2 month data SEM development Launch (first 6 month data release) Further industry workshops Full year release Sep-Oct 16 Sep-Oct 16 Mar 17 Jul-Sep 17 Sep 17 5

THE ES REPRESENTATIVE OF THE SA POPULATION DEMOGRAPHIC / GEOGRAPHIC / LIFESTYLE / PRODUCTS & MULTI-MEDIA LANDSCAPE CROSS PLATFORM / CROSS DEVICE MEDIA CONSUMPTION SINGLE SOURCE (IHS POPULATION DATA) HUB & DONOR NEW SEGMENTATION MODEL 6

ES SAMPLE CLOSELY REFLECTS THE SA POPULATION ES (unweighted) IHS Population Black 81% Coloured 10% Indian / Asian 2% White 8% Black 79% Coloured 9% Indian / Asian 3% White 9% Source: ES Jul 2016-Jun 2017 (n=25,082) Source: IHS Individual Population estimates Jun 2016 7

AREA DEFINITIONS Metro Urban Rural Example: Craighall Park, City of JHB Plumstead, City of CT Berea, Durban New Brighton, NMMP Definition: Within the borders of one of the 8 Metropolitan Municipalities and defined as an Urban Geography Type Examples: Polokwane Central, Polokwane Willowton, Pietermaritzburg Jouberton, Klerksdorp Definition: Within the borders of an Other Municipality and defined as an Urban Geography Type OR Within the borders of one of the 8 Metropolitan Municipalities and defined as a Farm or Traditional Geography Type Example: Khakhala, Greater Giyani Amelia, Zamdela Definition: Within the borders of an Other Municipality and defined as a Farm or Traditional Geography Type 8 Metropolitan Municipalities: These are defined by the Municipal Demarcation Board and include the municipalities of Ekurhuleni, City of Johannesburg, City of Tshwane, Mangaung (Bloemfontein), Buffalo City (East London), Nelson Mandela Bay (Port Elizabeth), ethekwini (Durban), City of Cape Town Geography Types (Geo-types): Based on Stats SA classifications using input from the Surveyor General. These include three classifications i.e. i. Urban, ii. Farm and iii. Traditional. 9

ES VITAL SIGNS NATIONAL SAMPLE 25,082 sample JUL 2016 JUN 2017 41% Metro 28% Urban 31% Rural Universe: Population aged 15+ 39.5 million 10

CURRENCY VITAL SIGNS ES BRC RAM BRC TAMS PAMS 41% Metro 60% Metro 46% Metro 50% Metro 28% Urban 20% Urban 30% Urban 30% Urban 31% Rural 20% Rural 24% Rural 20% Rural 11

DEMOGRAPHIC LANDSCAPE 12

DEMOGRAPHIC LANDSCAPE BLACK WHITE COLOURED INDIAN 79% 9% 9% 3% 15.8 million HOUSEHOLDS 39.5 million ADULTS 15 YEARS+ AGE % LANGUAGES SPOKEN IN HOME % 15 25 8 15-24 24 25-34 35-49 50-64 28 65 + 52% 48% Zulu English Xhosa Afrikaans Sesotho Sepedi Setswana Tsonga Swati Ndebele Venda 31 29 18 18 14 13 12 5 3 2 2 13

DEMOGRAPHIC LANDSCAPE MONTHLY HOUSEHOLD INCOME % AVERAGE: R10,497 18 9 2 1 10 R0 - R1 999 26 R 10 24 R2 000 - R3 999 R4 000 - R4 999 R5 000 - R9 999 R10 000 - R19 999 R20 000 - R39 999 R40 000 - R59 999 R60 000+ Below Matric Matric Tertiary 14 44 42 Working full-time Working part-time 11 38 CHILDREN UNDER 15 YEARS LIVING AT HOME % Unemployed Not looking for work 49% WORKING 51% NOT WORKING Student Retired Home executive 21 4 13 9 4 45% CHILDREN 55% NONE 14

PRODUCTS AND LIFESTYLES 17

ALMOST EVERY HOME (98%) HAS A CELLPHONE 50% Smartphone (a cellphone that has a touchscreen and that can access the internet) 24% Feature phone (not a smartphone; a cellphone that can access the internet. It has no touchscreen) 46% Ordinary cellphone (used only for calls and SMS. It has no internet capability)

LIFESTYLES Past week destinations % Black 61 Coloured Indian/Asian 6 4 White 29 11% Restaurant 20

PRODUCT % Black 46 Coloured 14 Indian/Asian 7 White 33 25% Motor car in home 24

MEDIA LANDSCAPE 25

QUESTIONNAIRE DESIGNED BY INDUSTRY THOUGHT LEADERS AND USES A TOP-DOWN STRUCTURE Questionnaire introduction Media sections Profiling Literacy test Multi-media screener Equipment in home Common questions for all media Number of days used in average week Time spent per weekday/sat/sun Devices/platforms Media-specific questions On the go Demographics Geographic's Lifestyles Products SEM variables 26

MEDIA LANDSCAPE REACH % 100 90 80 70 60 50 40 30 20 10 0 90 94 71 41 13 5 Yesterday 84 50 52 53 54 55 43 45 47 40 33 32 29 26 22 14 1 3 In the last week 95 96 97 97 88 89 90 91 In the last month 6 In the last 3 months 9 In the last 6 months 13 In the last 12 months TV Radio Internet Newspapers Magazines Cinema 27

P4WEEK MEDIA LANDSCAPE DEVICE % TV set Cellphone Paper/ printed copy Radio set/ hi-fi Car/Taxi/ Bus radio Desktop/ laptop Tablet Games console 97 9 - - - 3 2 1 24 43-88 76 3 - - 17 91 - - 7 6 - - 17 83 - - 8 7 - - 95 - - - 23 11 - Note: Devices used in past month amongst past month users of each medium 28

SNAPSHOTS BY MEDIA TYPE 29

LISTENING Past 7 days 30

LISTENING REACH 71% of the population in a day 84% of the population in a week 88% of the population in a month 31

LISTENING DEVICE Radio 86% Car/taxi/bus 62% Cellphone 38% TV set 21% Laptop/ desktop 2% 35

VIEWING Past 7 days 37

VIEWING REACH 90% of the population in a day 94% of the population in a week 95% of the population in a month 38

READING Past 7 days 44

ADVERTISE TO HOUSEHOLDS WHO CAN AFFORD YOUR BRAND NO. HH: AVG HH INCOME SEM 1-4 8.2m R4,754 SEM 5-7 4.4m R9,781 SEM 8-10 3.1m R26,524 % 60 50 HOUSEHOLDS VS MONEY 52 50 40 30 20 10 28 24 26 20 Households Households Money Money Households Money SEM 1-4 SEM 5-7 SEM 8-10 45

READERS EARN 63% MORE THAN VIEWERS OR LISTENERS Personal monthly income Rand per month R 10 000 R 9 000 R 9 153 R 9 236 R 8 000 R 7 000 R 7 728 +63% R 6 000 R 5 661 R 5 823 R 5 000 TV Radio Internet Newspapers Magazines ES Jul 2016 Jun 2017 (n=25,082) filtered on A1 Yesterday audience per medium 46

READERS EARN MORE THAN NON-READERS ACROSS THE ENTIRE SPECTRUM OF SOCIETY HH monthly income Rand per month R25 000 R20 000 142 TYPE OF DWELLING : Average HH Income 170 168 179 R22 053 Earning Index 180 150 R15 000 R13 871 R12 304 120 R10 000 R7 267 R8 688 R8 252 90 R5 000 R5 110 R5 096 60 R0 Single Room in Dwelling/Backyard Traditional hut Formal House Gated Community 30 NON READERS READERS INDEX : READERS vs NON READERS 47

JUST OVER 4 IN 10 SOUTH AFRICANS READ, BUT ALMOST TWO-THIRDS OF SEM 8-10 DO 56% 44% 37% 63% Non-readers Series2 Readers Series1 Total Market SEM 8-10 48

READERS VS. NON-READERS PROFILE BY SEM Newspapers Magazines % 76 70 National Average 44% 24 30 62 38 58 42 47 53 51 49 54 46 58 42 63 37 67 33 Readers Non-readers TV Radio 1 2 3 4 5 6 7 8 9 10 SEM 49

THE MORE YOU READ, THE MORE YOU EARN Personal monthly income Rand per month R 25 000 R 22 331 R 20 000 R 15 000 R 10 000 R 10 439 R 5 000 National Average R5,485 R 1 512 R 1 775 R 2 617 R 5 331 R 0 No schooling or Some primary Primary school completed Some high school Matriculated University incomplete University completed 50

THE MORE YOU LISTEN TO RADIO, THE LESS YOU EARN SEM 8-10 Personal monthly income Rand per month R 18 000 R 16 857 R 16 454 R 16 000 R 14 000 R 14 272 R 12 000 R 11 776 R 10 000 <30 mins 30 mins - 1 hour 1-6 hours >6 hours 51

P7D NEWSPAPER READERS DEMOGRAPHIC LANDSCAPE BLACK WHITE COLOURED INDIAN 69% 14% 13% 4% 13.1 million ADULTS 15 YEARS+ AGE % 7 15-24 20 17 25-34 35-49 28 50-64 28 65 + 47% 53% LANGUAGES READ AND UNDERSTAND % English Afrikaans Zulu Xhosa Sesotho Setswana Sepedi Swati Tsonga Ndebele Venda 33 31 15 14 12 11 3 3 2 2 93 53

P7D NEWSPAPER READERS DEMOGRAPHIC LANDSCAPE MONTHLY HOUSEHOLD INCOME % AVERAGE: R13,951 24 5 13 3 2 R0 - R1 999 16 R 28 8 R2 000 - R3 999 R4 000 - R4 999 R5 000 - R9 999 R10 000 - R19 999 R20 000 - R39 999 R40 000 - R59 999 R60 000+ Below Matric Matric Tertiary 20 34 46 Working full-time Working part-time Unemployed Not looking for work 56% WORKING Student 44% NOT WORKING Retired Home executive 10 16 3 11 10 5 46 MARITAL STATUS 61% SINGLE/ DIVORCED/ WIDOWED 39% MARRIED/ PARTNER 54

NEWSPAPER PLATFORM OVERLAP PAST 7 DAY READERS any platform (Universe 12.5m) ONLINE 2.5m 20% PAPER 11.6m 93% ONLINE ONLY 0.9m 7% BOTH 1.6m 13% PAPER ONLY 10.1m 80% Average Age 35 35 39 57

P7D MAGAZINE READERS DEMOGRAPHIC LANDSCAPE BLACK WHITE COLOURED INDIAN 67% 19% 12% 3% 5.7 million ADULTS 15 YEARS+ AGE % 15 6 15-24 23 25-34 28 28 35-49 50-64 65 + 58% 42% LANGUAGES READ AND UNDERSTAND % English Afrikaans Zulu Xhosa Sesotho Sepedi Setswana Ndebele Swati Tsonga Venda 35 30 17 11 11 10 3 3 3 2 92 58

P7D MAGAZINE READERS DEMOGRAPHIC LANDSCAPE MONTHLY HOUSEHOLD INCOME % AVERAGE: R15,519 16 25 5 2 5 R0 - R1 999 15 R2 000 - R3 999 R 25 7 R4 000 - R4 999 R5 000 - R9 999 R10 000 - R19 999 R20 000 - R39 999 R40 000 - R59 999 R60 000+ Below Matric Matric Tertiary 24 29 47 Working full-time Working part-time Unemployed Not looking for work 56% WORKING Student 44% NOT WORKING Retired Home executive 10 15 3 12 9 5 47 MARITAL STATUS 62% SINGLE/ DIVORCED/ WIDOWED 38% MARRIED/ PARTNER 59

MAGAZINE PLATFORM OVERLAP PAST MONTH READERS any platform (Universe 7.8m) ONLINE 1.9m 24% PAPER 7.2m 93% ONLINE ONLY 0.6m 7% BOTH 1.3m 17% PAPER ONLY 5.9m 76% Average Age 34 34 37 62

DIGITAL Past 7 days 63

P7D INTERNET USERS DEMOGRAPHIC LANDSCAPE BLACK WHITE COLOURED INDIAN 75% 14% 8% 3% 19.6 million ADULTS 15 YEARS+ AGE % 8 2 15-24 33 25-34 24 35-49 50-64 33 65 + 50% 50% LANGUAGES READ AND UNDERSTAND % English Zulu Afrikaans Xhosa Sesotho Sepedi Setswana Tsonga Swati Ndebele Venda 35 27 15 14 11 11 4 3 2 2 94 64

P7D INTERNET USERS DEMOGRAPHIC LANDSCAPE MONTHLY HOUSEHOLD INCOME % AVERAGE: R14,114 5 14 4 2 R0 - R1 999 16 24 R 28 8 R2 000 - R3 999 R4 000 - R4 999 R5 000 - R9 999 R10 000 - R19 999 R20 000 - R39 999 R40 000 - R59 999 R60 000+ Below Matric Matric Tertiary 24 23 54 Working full-time Working part-time Unemployed Not looking for work 55% WORKING Student 45% NOT WORKING Retired Home executive 2 3 3 9 19 19 46 MARITAL STATUS 71% SINGLE/ DIVORCED/ WIDOWED 29% MARRIED/ PARTNER 65

DIGITAL DEVICE % Cellphone Desktop/ laptop Tablet 94 18 9 Note: Device used to access internet in past 7 days 67

DIGITAL ACTIVITY BY DEVICE % Cellphone Desktop/ laptop Tablet WhatsApp/IM/chat 93 17 45 Social media 76 33 53 Search for things 57 77 62 Use/download apps 45 35 44 Download music/podcasts 40 26 36 Play games 31 18 34 Check the weather 21 21 25 Email 20 61 43 Banking 20 35 27 Note: Activities by device used to access internet in past 7 days 68

ONLINE ACCESS BY DEVICE PAST MONTH USERS any platform (Universe 19.9m) COMPUTER 4.7m 24% CELL PHONE 19.4m 98% TABLET 2.2m 11% COMPUTER ONLY 0.3m 2% COMP AND TABLET 32k 0.2% COMPUTER AND CELL PHONE 3.2m 16% ALL 3 1.2m 6% TABLET ONLY 0.1m 0.5% CELL AND TABLET 0.9m 5% CELL PHONE ONLY 14.1m 71% 69

Email Banking Search for things Check the weather Use or download apps Download music or podcasts Play games Use social media Use Whatsapp or instant messaging or chat 60% 75% 76% 84% 86% 87% 88% 92% 96% 40% 25% 24% 16% 14% 13% 12% 8% 4% ONLINE ACTIVITY MOBILE VS COMPUTER 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Series1 Mobile Series2 Computer 70

INTERNET FREQUENCY % Several times a day 69 Once a day 10 Several times a week 14 Once a week 3 Several times a month 2 Average no. of times per month 56.9 71

THE QUESTION USED TO DERIVE PROPORTIONATE SPEND Z35. Imagine that these 11 matches represent all the money that you spent in the past month. Look through this list of items and place these matches according to how you spent your money in the past month. (Total must add up to 11)

PROPORTIONATE SPEND BY SEM % 14 15 15 15 14 14 14 13 13 13 14 13 13 13 12 12 12 12 14 15 12 13 14 14 14 15 15 15 15 16 5 6 7 7 7 7 8 9 10 8 10 8 9 9 9 9 10 11 11 12 16 16 15 14 15 14 15 14 13 12 31 30 29 28 29 28 27 26 24 23 1 2 3 4 5 6 7 8 9 10 SEM Personal spending (e.g. haircuts, gym, entertainment) Other HH items (e.g. medicine, petrol) Other HH expenses (e.g. rent, water, electricity) Savings and investments Financial payments (e.g. car instalments, insurance) Airtime/internet payments Food, drink and other groceries

THE 14 ESTABLISHMENT SURVEY SEM VARIABLES Final variables: Post Office nearby Police station nearby Built-in kitchen sink Home security service Motor car Deep freezer which is free standing Microwave oven Floor polisher or vacuum cleaner Washing machine Floor material Water source Type of toilet Roof material Focus on structural items Low reliance on durables No reliance on technology items Short and easy to use Number of sleeping rooms 89

ES SEM VS ES LSM SEM : % 12 16 13 11 11 8 9 7 6 7 SEM 1 SEM 2 SEM 3 SEM 4 SEM 5 SEM 6 SEM 7 SEM 8 SEM 9 SEM 10 LSM: % 34 21 0 1 4 13 12 5 6 3 LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10 90

MONTHLY HH INCOME BY SEM R34 574 R26 683 R18 464 R12 914 R3 404 R4 275 R5 210 R6 434 R7 442 R9 432 SEM 1 SEM 2 SEM 3 SEM 4 SEM 5 SEM 6 SEM 7 SEM 8 SEM 9 SEM 10 97

EQUIPMENT IN HOME BY SEM % Avg. no. of equipment items in home: 2.5 2.7 2.8 2.9 2.9 3.0 3.2 3.3 3.6 4.2 98 TV set 74 81 Smartphone 56 Desktop/ laptop 22 27 Tablet 1 16 Wifi/ fibre 1 2 3 4 5 6 7 8 9 10 SEM 98

MEDIA CONSUMPTION BY SEM Past 12 month usage: % 99 91 95 88 66 55 43 33 18 2 1 2 3 4 5 6 7 8 9 10 SEM 99

ESTABLISHMENT SURVEY SEM VISUAL REPRESENTATIONS 100

Avg HH Income R3,404 101

Avg HH Income R4,275 102

Avg HH Income R5,210 103

Avg HH Income R6,434 104

Avg HH Income R7,442 105

Avg HH Income R9,432 106

Avg HH Income R12,914 107

Avg HH Income R18,464 108

Avg HH Income R26,683 109

Avg HH Income R34,574 110

Thank you. Questions? 122