What are the most and least valuable demographics (ie age bands) to advertisers, for passengers travelling through Changi Airport (Singapore).

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What are the most and least valuable demographics (ie age bands) to advertisers, for passengers travelling through Changi Airport (Singapore).

Hello! Thanks for asking Wonder! I understand that you are interested in finding out the most and least valuable demographics to advertisers, for passengers travelling through Singapore's Changi Airport.

The short answer is that the best audience to target for advertising at the Changi Airport are 25 to 50 year olds. This age band constitutes both the most affluent class of travelers, and homemakers, and are 2 to 5 times more likely to be engaged on their digital devices at the airport than other professionals.

Students are the least valuable audience, with engagement levels 25% to over 300% less than the affluent class and homemakers. However, most 37 to 50 year olds are repeat travelers.

Following reports from Lim Peck Hoon, Changi Airport Group’s Vice-President (commercial), the best advertisers would be Chocolate and Sweet companies, since demand for chocolates grows by 20% yearly.

Another category that advertisers can focus on are mid-priced fashion, as carried by brands like Charles & Keith, Uniqlo, Giordano and Pandora.
Due to volume of travelers, the best targeting by country market would be Indonesia, Malaysia, Thailand, Australia, China, Hong Kong, India, Japan, Philippines, and Vietnam.

What follows is a deep dive into how I arrived at these answers.

METHODOLOGY

I started my research by looking through authority reports on Changi Airport’s demographics. I read and carefully took note on demographic dynamics, and advertising in Changi Airport. Having researched through 8 authority sources, to gather information necessary for answering the question asked, I proceeded to providing this overview, back by expert opinion.

THE CHALLENGE WITH GETTING ADVERTISING DATA FROM AUDIENCES AT AIRPORTS

1. Legislation protects personal information of passengers. So airport shops cannot make passengers’ personal information available.

Ron Reed, Director at SITA for Airport Portfolio Marketing says “Data privacy, security and accuracy of data are vital for airports. A sample of passenger movements is typically collected on an anonymous basis. The data does not reveal any individual information but shows an aggregation of traffic counts and flows.”

2. Poor Passenger Data Quality: SITA reported, according to Passenger International Today, that as at 2013 only 8% of airports have reached the data-quality requirements for their existing Business Intelligence (BI) plans.

This stands in contrast to the fact that 44% of global airport revenues as at 2012, stood at $46 Billion USD from non-aviation sources like advertising, food and beverages, car parking and retail.

But drawing from research works done by AdNear, reports from The Jakarta Post, and resources from other authority sources, appropriate answers were provided for the question asked.

MONEY SPENT BY TRAVELLERS AT CHANGI AIPORT

As at July 27, 2016 Changi airport still ranked third in traveler spending, according to the Jakarta Post; bringing in more than $1.5 billion USD revenue from travelers in 2015.

Exact figures for each country was not published, but Singapore ranked third behind South Korea and Dubai, according to a research by Swedish duty-free and travel retail consultancy, Generation Research. Travelers, globally, spent $62 billion USD in total at duty-free and airport shops in 2015, falling 3% from the $63.8 billion USD earned in 2014. However, Asia was the only region where spending increased.

Global spend in order of preference: 33% of spend was on perfumes and cosmetics, and then followed by wines and spirits, and fashion and accessories.

According to Lim Peck Hoon, Changi Airport Group’s Vice-President (commercial), at Changi, demand for chocolates and sweets are growing by 20% yearly, in the first five months of the year. Another category with growing popularity among shoppers is mid-priced fashion, as carried by brands like Charles & Keith, Uniqlo, Giordano and Pandora.

In order to reach even more shoppers, in 2013 Changi Airport launched an online shop with over 6,000 items—iShopChangi.

CHANGI’S MOST POPULAR DESTINATIONS, MARKETS AND FASTEST GROWING ROUTES

Changi Airport had 55,448,964 passengers in 2015, which is a 2.5% increase over the previous year. With peak passenger numbers of 192,000 occurring on the Saturday before Christmas, 19th of December, 1015. More than 320 destinations from 80 countries are connected to Changi.

Changi Airport is the seventh busiest airport in the world by international traffic, served by more than 100 airlines worldwide.

The Top 10 COUNTRY MARKETS at Changi Airport, in order of popularity are:

1. Indonesia (Slowed down growth from previous year, at -7.3%)
2. Malaysia
3. Thailand (which grew by +12.5% in 2015)
4. Australia
5. China
6. Hong Kong (slowed down growth from 2014, -1.2%)
7. India
8. Japan
9. Philippines
10. Vietnam (+7.2% growth in 2015)

The Top 10 DESTINATIONS for travelers at Changi Airport, in order of popularity are:
1. Jakarta (Indonesia)
2. Bangkok (Thailand)
3. Kuala Lumpur (Malaysia)
4. Hong Kong (Hong Kong)
5. Manila (Philippines)
6. Tokyo (Japan)
7. Bali-Denpasar (Indonesia)
8. Ho Chi Ming City (Vietnam)
9. Taipei (Taiwan)
10. Sydney (Australia)

Changi Airport’s Fastest Growing Routes
1. Colombo — 17.9%
2. Bangkok — 16.6%
3. Guangzhou — 8.7%
4. Mumbai — 8.2%
5. Tokyo — 8.1%

TRAVELER BEHAVIOUR AND DEMOGRAPHIC ANALYSIS

Reports from a study conducted by AdNear, on travelers across Asia-Pacific—including Changi Airport—Indonesian, Philippine and Indian travelers spend the most time on their smartphone. This means that mobile marketing will readily reach these audiences.

The average traveler through the Changi Airport is on the property for 97 minutes.

Digital Engagement by Gender:

According to the AdNear studies, India had the highest discrepancy, with over 400% more male travelers engaging digitally than female travelers. Generally there are more male travelers than female engaging digitally. Australia has the most digitally engaged female travelers, having only 150% more male than female.

Here’s a breakdown of travelers’ digital engagement by gender:

1. Australia: Male (72%) and Female (28%)
2. Hong Kong: Male (74%) and Female (26%)
3. Japan: Male (76%) and Female (24%)
4. South East Asia: Male (77%) and Female (23%)
5. India: Male (17%) and Female (83%)

Changi Airport Mobile Engagement Statistics

Passenger Gender proportions: Male (79%) and Female (21%). This is the proportion of male to female mobile engagement at Changi Airport.

Age Demographics:
15% of passengers are 15-24 year olds
69% of passengers are 25-36 year olds
15% of passengers are 37-50 year olds
1.7% of passengers are above 50 years old

With affluent travelers 200% more likely to be engaged with internet connected mobile devices than average professionals. Home makers are 500% more likely to be engaged with mobile devices than professionals and students are only 150% more likely to be engaged on their mobile devices than professionals.

Singapore also has a higher percentage of repeat travelers. 81% of travelers through Changi are repeat travelers. Out of these repeat travelers, more than 85% of them have traveled through Changi Airport 3 times or more.

Authority reports say that the best audience to target at Changi Airport is the 37 to 50 age band, who constitute about 15% of travelers through Changi and have the highest volume of affluent travelers. Mobile engagement is usually focused on Gaming, Social Apps and Entertainment (music, videos and other).

SUMMARY

Based on available data, published research papers and reports from authority sources, the best audience to target for advertising at the Changi Airport are 37 to 50 year olds. This age band constitute the most affluent travelers through the airport, and have 2 times more likely to be engaged on their digital devices at the airport than other professionals.

Following reports from Lim Peck Hoon, Changi Airport Group’s Vice-President (commercial), the best advertisers would be Chocolate and Sweet companies, since demand for chocolates grows by 20% yearly.

Another category that advertisers can focus on are mid-priced fashion, as carried by brands like Charles & Keith, Uniqlo, Giordano and Pandora.
Due to volume of travelers, the best targeting by country market would be Indonesia, Malaysia, Thailand, Australia, China, Hong Kong, India, Japan, Philippines, and Vietnam.

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