{"id":9636,"date":"2023-04-19T14:35:09","date_gmt":"2023-04-19T12:35:09","guid":{"rendered":"https:\/\/lion-test-sites.co.za\/provantage?p=9636"},"modified":"2023-04-19T14:35:38","modified_gmt":"2023-04-19T12:35:38","slug":"why-lsm-is-giving-way-to-sem","status":"publish","type":"post","link":"https:\/\/lion-test-sites.co.za\/provantage\/why-lsm-is-giving-way-to-sem\/","title":{"rendered":"Why LSM is giving way to SEM – How we live vs. what we have"},"content":{"rendered":"\n

ProActive<\/a>\u2122, the dedicated activation agency of leading marketing and Out of Home media owner, Provantage<\/a>, consistently gathers measured insight into consumer habits, economic segments and behaviours. LSM (Living Standards Measure) has traditionally served as the accepted audience measurement benchmark for many years. However, Proactive is upholding new industry standards by moving towards SEM (Socio-Economic Measure), which is becoming more widely used. ProActive explains why SEM is becoming increasingly more prevalent in the South African context.<\/p>\n\n\n\n

Makhetsi Phakoa, head of client service and sales at ProActive, explains the shift from LSM to SEM: \u201cMany economic analysts argue that what people own is not always an accurate reflection of their standard of living \u2013 particularly given the fact that most South Africans have a large amount of debt and live beyond their means.<\/em><\/p>\n\n\n\n

\u201cThe prevailing opinion is that LSM misrepresents and oversimplifies the South African household landscape. SEM relies less on durable goods and more on household and community infrastructure, which changes less gradually. The only four durables included are deep freezer, microwave oven, floor polisher or vacuum cleaner and washing machine.\u201d<\/em><\/p>\n\n\n\n

With the shift from LSM to SEM \u2013 which is relatively new \u2013 many brand custodians are not as familiar with SEM and what it means for their brands, begging the question, \u201cHow do you plan and engage around SEM?\u201d<\/em><\/p>\n\n\n\n

Phakoa answers, \u201cEach economic segment is unique in how they live different daily lives, have other ambitions, needs, wants, behaviours and interact with various touchpoints daily. SEM quantifies these variables more accurately, translating segmental data into answers about where and how to engage with different market segments.\u201d<\/em><\/p>\n\n\n\n

ProActive aims to understand audiences on a deeper, more personal level to create a differentiated and relevant brand experience for each segment. This data-informed approach is the backbone of the company\u2019s strategy. ProActive has also highlighted ideal activation strategies per segment, which can be personalised to drive different objectives.<\/p>\n\n\n\n

\u201cEverything evolves; this much we already know. The media landscape is changing; platforms change and audiences develop continuously. SEM metrics help us tailor interactions, communications, media, messaging and activation strategies \u2013 to make a real impact,\u201d<\/em> says Phakoa.<\/p>\n\n\n\n

Why SEM is replacing LSM<\/h3>\n\n\n\n

\u201cSEM speaks to how South Africans live, and not what they have\u201d<\/h3>\n\n\n\n

According to ProActive, one of the primary reasons to move from LSMs to SEMs is to reflect South African society more accurately.<\/p>\n\n\n\n

SEM metrics limit the number of variables included to 14, compared to 29 in LSM, meaning that questionnaires are shorter and easier to administer. Several inaccuracies within the LSM model have also become more evident in recent years.<\/p>\n\n\n\n

For example, LSM classifies rural living as part of the lower LSM bracket, with urban living on the upper end of the scale. However, there are prominent areas for improvement here, particularly because the gap between rural and urban lifestyles is narrowing with technological advancements.<\/p>\n\n\n\n

The 14 SEM Inputs<\/h3>\n\n\n\n

SEM was developed using data from the Establishment Survey<\/a>, a nationally representative survey of 25,000 adults across South Africa annually.<\/p>\n\n\n\n

Correspondence analysis determined the most differentiating variables drawn from various sources. Each person is given a score between 0 and 100, depending on what items they have in their household and what public services they have access to.<\/p>\n\n\n\n