DMTI Spatial Inc.

DMTI Spatial Inc.

November 08, 2007 10:49 ET

DMTI Spatial and York University Validate the Effectiveness of Canadian 6 Digit Postal Code Boundaries in New Study

MARKHAM, ONTARIO--(Marketwire - Nov. 8, 2007) - DMTI Spatial (DMTI), a leading provider of Location Intelligence, has commissioned an independent research study conducted by York University that has concluded the use of 6 digit postal boundaries provides a significant increase in the discriminating capabilities of marketing analytics when compared to commonly used census dissemination areas. The analysis, conducted by York University's Spatial, Environmental and Action Research (SpEAR) Laboratory, compared measures of central tendency and variation among popular demographic variables typically used in market segmentation and trade area analysis applications. The findings validate that market analyses conducted and represented at the 6-digit postal code level provide a framework that yields the highest precision results and ultimately a better return on investment.

Taking a two pronged approach to the study, researchers analyzed the sampling distribution of the means of the two data sets and undertook an exploration of the variation of demographic information represented at the 6 digit postal code level contained within dissemination areas (DAs). The study found that: the mean variance of many demographic variables within a single DA can be significant; data represented at the DA level suppresses outlier values; and, postal geography at the true 6 digit postal code level revealed smaller homogeneous groupings of households.

"We found that data provided at the 6 digit postal code level will allow for the identification of smaller and more homogenous population units, such as, those with low incomes or those with the highest proportion of university educated populations, than is possible when employing census dissemination areas," stated Martin Bunch, PhD, Faculty of Environmental Studies, York University. The implications clearly point to superior targeting capabilities informing marketing campaigns that result in higher sales conversion rates, lower media production and distribution costs and ultimately a greater return on investment.

A whitepaper derived from the study generated by the York University Spatial, Environmental and Action Research (SpEAR) Laboratory will be published online by DMTI Spatial in the month of November 2007. Free samples of the national 6 digit postal code boundaries file are available from the DMTI Spatial website.

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DMTI Spatial has been providing industry leading enterprise location intelligence solutions for more than a decade to Global 2000 companies and government agencies. DMTI's world-class Location Hub™ platform uniquely identifies, validates and maintains a universe of location-based data. DMTI is the creator of the CanMap suite of geospatial data products, including CanMap® Streets and RouteLogistics, the gold standard for location data in Canada. DMTI also provides professional services and software tools bringing full solutions to the marketplace. For more information about Location Intelligence see:

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