Jargon Buster
Area profiles or area profile reports
- What does this mean?
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A detailed summary of model data relating to a catchment area (based on a selected drivetime area) and the people who live in it.
A typical area profile includes:
- a map of the drivetime area being reported on
- a two-page overview table showing information on the people living in that area (such as age, social grade, car ownership, geodemographic profile, likely attendance at arts events, etc.)
- a postal sectors report giving the data shown in the overview and broken down by postal sector, and
- a postal sector percentage report that shows the relevant data items expressed as a percentage and compared with the relevant percentages for the given drive time area
- How did we get this definition?
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Effective planning for organisations at a local level is highly dependent on local data. Thus a potent and relatively new source of such data is the ‘area profiles’.
The area profiles (or area profile reports) are model data – statistical reports that provide indicative information for any defined area based on any given location in Great Britain. (These are not currently available for Northern Ireland.) Based on data commissioned from CACI (using its InSite system), these reports have been made available thanks to funding provided by Arts Council England.
Copies of an area profile report (for any given area) can be obtained from the three national audience development agencies that have been commissioned to undertake this role. However, they can only be provided once an initial order for them has been authorised by the relevant Arts Councils. The primary contacts here are:
- England – Peter Verwey, Arts Council England
- Scotland – Fiona Sturgeon, Scottish Arts Council
- Wales – Ann Kellaway, The Arts Council of Wales
While an authorised order placed through the relevant arts council is essential (in that the area profile data cannot be supplied unless an order has been authorised), there can be particular and additional value in asking your local audience development agency to work with you on the area reports once it has been obtained, especially since your local Agency will be able to discuss your particular needs, and help you with the interpretation of the reports once they have been received.
- Related and similar definitions
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Area profile reports are available for use by not-for-profit organisations in the arts sector (including those that are part of a local authority) and to venues receiving work from clients of one of the UK arts councils. To obtain reports and current charges, you should contact your local arts council using the primary contacts as follows:
- England – Peter Verwey, Arts Council England
- Scotland – Fiona Sturgeon, Scottish Arts Council
- Wales – Ann Kellaway, The Arts Council of Wales
An order form will shortly be available from each of the council’s websites.
The data contained in the area profiles is extremely valuable but commercially sensitive. Hence there are a number of stipulations and protocols that apply to their use.
Most importantly, they are provided for the sole use of the organisation applying for them, and should not be disseminated, circulated or published to other organisations. Also the reports are not directly available to consultants.
In all cases the source of the data should be made clear whenever and wherever it is used.
- When to use
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The area profile reports can be used to assess organisational performance relative to the local market potential. They can also be used to inform targeting activity by identifying ‘hot spots’ (i.e. sectors where your organisation seems to be doing better than might be expected from the relevant potential, and where presumably some other factor – such as an advocate or a bus route – is having an effect), together with ‘cold spots’ (places where penetration needs to be improved).
Formulae & Worked Examples
The area profile reports are a source of model data. That is a summary of statistical data that give a representation (or indication) of the nature of an area and the people who live in it. Linking data from an area profile report to that for a venue’s (or facility’s) actual attenders can be done as follows. And even if you don’t intend to do this yourself, understanding how the figures are arrived at will help your interpretation and use of an area profiles report. (Please note here that the data shown is for example purposes only and is not the real data for the area shown.)
First, analyse the venue’s bookers and users according to the number of them in each postal sector. These would be B1, B2 and so on. Also find and record the total for this.
Example of attender analysis based on an area profile - step 1 formulae
Postal sector No. of ticket buyers in sector Totals Btotal NE12 1 B1 NE12 2 B2 NE12 3 B3 For instance (using an example based on dummy numbers):
Example of attender analysis based on an area profile - step 1 example
Postal sector No. of ticket buyers in sector Totals 900 NE12 1 200 NE12 2 300 NE12 3 400 Next, for each postal sector included in the area profile, record the population figures shown on the Area Profile Report (hence these would be P1, P2 and so on.) Again, find the total here – this time for the population.
Example of attender analysis based on an area profile - step 2 formulae
Postal sector No. of ticket buyers in sector Population for sector Totals Btotal Ptotal NE12 1 B1 P1 NE12 2 B2 P2 NE12 3 B3 P3 Hence the worked example (again using hypothetical and thus not real data) would look like this:
Example of attender analysis based on an area profile - step 2 example
Postal sector No. of ticket buyers in sector Population for sector Totals 900 31,992 NE12 1 200 14,604 NE12 2 300 10,054 NE12 3 400 31,992 Now, again from the area profile report, write in the estimated numbers of potential attenders in each postal sector. (Here it is important to note that these numbers are not an absolute statement of the number of people in each sector who attend. Rather, they are an indicative estimate based on the numbers of people in each sector who have a particular geodemographic profile, which has been manipulated to reflect the known arts attendance of people who match that geodemographic profile). Hence this gives A1, A2 and so on. (Once more you will have to add these figures up to get a total.)
Example of attender analysis based on an area profile - step 3 formulae
Postal sector No. of ticket buyers in sector Population for sector Estimated number of potential attenders in sector Totals Btotal Ptotal Atotal NE12 1 B1 P1 A1 NE12 2 B2 P2 A2 NE12 3 B3 P3 A3 Example of attender analysis based on an area profile - step 3 example
Postal sector No. of ticket buyers in sector Population for sector Estimated number of potential attenders in sector Totals 900 31,992 4,095 NE12 1 200 14,604 1,919 NE12 2 300 10,054 1,115 NE12 3 400 31,992 1,061 Then work out the number of actual buyers for each sector as a proportion of the estimated attenders, (i.e. B1 divided by A1, B2 divided by A2, and so on), and multiply the results by 100. This is the sales penetration percentage, and is shown below as S1, S2 and so on.
Example of attender analysis based on an area profile - step 4 formulae
Postal sector No. of ticket buyers in sector Population for sector Estimated number of potential attenders in sector Sales penetration percentage Totals Btotal Ptotal Atotal Btotal ÷ Atotal × 100 = Soverall NE12 1 B1 P1 A1 B1 ÷ A1 × 100 = S1 NE12 2 B2 P2 A2 B2 ÷ A2 × 100 = S2 NE12 3 B3 P3 A3 B3 ÷ A3 × 100 = S3 Example of attender analysis based on an area profile - step 4 example
Postal sector No. of ticket buyers in sector Population for sector Estimated number of potential attenders in sector Sales penetration percentage Totals 900 31,992 4,095 21.98 NE12 1 200 14,604 1,919 10.42 NE12 2 300 10,054 1,115 26.91 NE12 3 400 31,992 1,061 37.70 You now need to work out the market potential percentages for each postal sector. This is done by dividing the estimated number of potential attenders (A) by the actual population (P) for each sector, and multiplying by 100. (i.e. A1 ÷ P1 × 100, A2 ÷ P2 × 100, and so on). These are show as M1, M2, M3, etc.
Example of attender analysis based on an area profile - step 5 formulae
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Totals Btotal Ptotal Atotal Btotal ÷ Atotal × 100 = Soverall Atotal ÷ Ptotal × 100 = Moverall NE12 1 B1 P1 A1 B1 ÷ A1 × 100 = S1 A1 ÷ P1 × 100 = M1 NE12 2 B2 P2 A2 B2 ÷ A2 × 100 = S2 A2 ÷ P2 × 100 = M2 NE12 3 B3 P3 A3 B3 ÷ A3 × 100 = S3 A3 ÷ P3 × 100 = M3 Example of attender analysis based on an area profile - step 5 example
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Totals 900 31,992 4,095 21.98 12.80 NE12 1 200 14,604 1,919 10.42 13.14 NE12 2 300 10,054 1,115 26.91 11.09 NE12 3 400 31,992 1,061 37.70 14.47 Now in the three last stages of this process, comparative indices can be used. These will compare both the sales penetration percentages and market potential percentages for each postal sector with the overall average percentages for the area in question (and here it is worth remembering that an index of 100 means that something is happening at the same rate for the area as a whole).
So first calculate the comparative index for sales penetration. This is found by dividing each of the sales penetration percentages (S1, S2, S3 and so on) by the overall sales penetration figure (Soverall), and then multiplying each result by 100. This produces the sales penetration indices (SI). Hence:
Example of attender analysis based on an area profile - step 6 formulae
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Sales penetration index Totals Btotal Ptotal Atotal Btotal ÷ Atotal × 100 = Soverall Atotal ÷ Ptotal × 100 = Moverall Soverall ÷ Soverall × 100 = SIoverall NE12 1 B1 P1 A1 B1 ÷ A1 × 100 = S1 A1 ÷ P1 × 100 = M1 S1 ÷ Soverall × 100 = SI1 NE12 2 B2 P2 A2 B2 ÷ A2 × 100 = S2 A2 ÷ P2 × 100 = M2 S2 ÷ Soverall × 100 = SI2 NE12 3 B3 P3 A3 B3 ÷ A3 × 100 = S3 A3 ÷ P3 × 100 = M3 S3 ÷ Soverall × 100 = SI3 Example of attender analysis based on an area profile - step 6 example
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Sales penetration index Market potential index Totals 900 31,992 4,095 21.98 12.80 100.00 100.00 NE12 1 200 14,604 1,919 10.42 13.14 47.42 102.66 NE12 2 300 10,054 1,115 26.91 11.09 122.42 86.64 NE12 3 400 31,992 1,061 37.70 14.47 171.54 113.02 Then a similar comparison is done in terms of the market potential of each sector. This time this provides the market potential index, and is worked out by dividing each of the market potential percentages (M1, M2, M3 and so on) by the overall market potential percentage (Moverall), and then multiplying each result by 100.
Example of attender analysis based on an area profile - step 7 formulae
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Sales penetration index Market potential index Totals Btotal Ptotal Atotal Btotal ÷ Atotal × 100 = Soverall Atotal ÷ Ptotal × 100 = Moverall Soverall ÷ Soverall × 100 = SIoverall Moverall ÷ Moverall × 100 = MIoverall NE12 1 B1 P1 A1 B1 ÷ A1 × 100 = S1 A1 ÷ P1 × 100 = M1 S1 ÷ Soverall × 100 = SI1 M1 ÷ Moverall × 100 = MI1 NE12 2 B2 P2 A2 B2 ÷ A2 × 100 = S2 A2 ÷ P2 × 100 = M2 S2 ÷ Soverall × 100 = SI2 M2 ÷ Moverall × 100 = MI2 NE12 3 B3 P3 A3 B3 ÷ A3 × 100 = S3 A3 ÷ P3 × 100 = M3 S3 ÷ Soverall × 100 = SI3 M3 ÷ Moverall × 100 = MI3 Example of attender analysis based on an area profile - step 7 example
Postal sector Ticket buyers Popn. Estimated potential attenders Sales penetration % Market potential % Sales penetration index Market potential index Totals 900 31,992 4,095 21.98 12.80 100.00 100.00 NE12 1 200 14,604 1,919 10.42 13.14 47.42 102.66 NE12 2 300 10,054 1,115 26.91 11.09 122.42 86.64 NE12 3 400 31,992 1,061 37.70 14.47 171.54 113.02 Finally, to interpret this table it needs to be remembered that:
- an index score of 100 indicates that the relevant factor (i.e. penetration or potential) is happening at a rate on a par with the overall average for that factor across the area under consideration
- an index score that is less than 100 indicates that the factor is happening at a rate below the average for the area being considered
- and an index score higher than 100 shows that the factor is occurring at a rate above the average for the area under consideration.
So the complete table can now be used to locate rapidly:
- sectors of relatively high sales penetration and moderately (i.e. above average) high potential (for instance, NE12 3) – therefore this is a sector where the organisation is doing relatively well in converting the estimated potential in actual attendances
- sectors with strong sales penetration but low potential (for instance NE12 2 in the worked dummy data) – hence this is a sector where the organisation is doing better than might be expected
- sectors with below-average sales penetration but average potential (NE12 1) – a case of somewhere where the organisation ought to be doing better than it is
and sectors with high levels of relative penetration and high relative potential (no example of this in data) – this is an area where the organisation would seem to be doing well and is exceeding the levels of attendance that might be expected, but where there is the potential to do even better. (See diagram.)
![[Diagram showing example sales potential]](http://www.aduk.org/images/jargon/large/sales-penetration.jpg)
