Roy Morgan makes NEO Audiences available to media agencies & media owners

Roy Morgan today announced that it has reached an agreement with social scientist Dr Ross Honeywill to make the NEO high-value audience available to agencies and media owners free for a six-month trial period.

Since 2005, advertising agencies and media owners have paid $50,000 annually to unlock the NEO profiles on their Roy Morgan database.

Configured on Roy Morgan’s Single Source consumer database, the NEO algorithm with 194 variables identifies a two-speed consumer economy. There are 5 million Australians with a NEO mindset driving the fast or premium lane, and 10.5 million Australians with a traditional mindset in the slow or commodity lane.

It also reveals that consumers with the NEO mindset are significantly more optimistic and confident than those with a traditional mindset.

According to Roy Morgan CEO, Michele Levine, “NEO consumers spend between 260 and 300% more than traditional consumers. Put another way, just under 90% of NEOs are in the Roy Morgan Big Spender category, while just 6% of Traditionals (many of whom are wealthy) are Big Spenders.

“NEOs’ spending propensity and actual spending behaviour demonstrate that they are leading Australia’s consumer spending recovery and will continue to lift the rest of the economy during 2023 and beyond.

“In the two-speed consumer economy, many brands are stuck in the slow lane, the commoditised lane. In times of economic pressure, many brands believe that everything starts and ends with price.

“It may seem counter-intuitive, but that is simply not true. Customer-facing brands running premiumisation strategies not only get higher margins from the NEOs driving the fast lane, but they also pull the slow lane consumers up, giving them something to aspire to,” she said.

But spending alone doesn’t define NEOs.

Dr Honeywill said, “The NEO algorithm has its roots deep in neuroscience. It reveals not only a consumer’s spending propensity and high value potential, but what makes it revolutionary is that it provides a 3-dimensional picture of the consumer: what they desire, how they feel, and what makes them fall in love with a brand, a product or an experience.

“This enables brands to develop NEO value propositions and guides NEO creative execution. And it all starts with neuroscience.

“The limbic system is the critical part of our brain that produces emotions, memories, and, most importantly, actions. And given that emotions are at the heart of most decisions, they’re also at the root of most purchases.”

On the database, agencies and media owners will find 6 profiles in all. The core profiles are NEOs, Aspiring NEOs (they think like NEOs but don’t spend enough), and Traditionals. It also includes the top 10% of NEOs called Hyper NEOs – they’re essential for luxury brands. And the top 50% of NEOs known as Super NEOs – they’re essential for premium clients. The sixth profile is High-Value Traditionals, and while they’re affluent, they spend significantly less than NEOs.

Since it was first developed in the early 2000s when Dr Honeywill was head of KPMG’s Centre for Consumer Behaviour (Asia/Pacific) and then expanded and configured on the Roy Morgan Single Source database in 2003, the premium NEO consumer typology has provided a value-creation asset to national and global brands, including NAB, Qantas, Telstra, LVMH, David Jones, JB Hi-Fi, Citibank, Macquarie Bank, A.H. Beard, Lexus, Four Seasons Hotels and Resorts, and many more.

“Importantly, the NEO algorithm undergoes continuous evaluation and is refreshed as required,” said Ms. Levine.

MORE INFORMATION

Additional information can be found at Roy Morgan Premium.

The Premium Brand rankings are determined in the Roy Morgan Single Source database by analysing the consumption behaviour of Australia’s 2.5 million ‘Super NEOs’ – the top 50 percent of NEOs.

Contact Roy Morgan to learn more about our premium consumer data:

Roy Morgan Enquiries: +61 (3) 9224 5309