T H E How Brands Can Navigate the New Era of Politics - Morning Consult
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+ TA B L E OF CONTENTS 1 Introduction 2 The Role of Brands in Politics What consumers expect from brands and their role in American society 3 Consumer Activism How Americans will respond when a brand gets involved in politics 4 Taking a Stand The issues that brands should champion, and the ones they should avoid 5 How 2020 Candidates Can Affect Consumer Views Who consumers say they’re most likely to listen to when it comes to boycotting
+ INTRODUCTION When Nike brought on Colin Kaepernick as a spokesperson in the fall of 2018, they were welcoming a political firestorm. A Morning Consult report conducted a month ago found that kneeling during the national anthem was the single most hazardous political issue for brands to support, even more than abortion or guns. The explosive response – shoe-burnings, boycotts, online tirades, a drop in stock price – confirmed the survey’s findings. While the immediate backlash was severe, it was hardly the end of the story. Nike’s calculation was that the audiences who will define their future would ultimately respond positively, even if other groups were aggrieved in the short term. Over the course of the last year, it’s become clear that gambit paid off as Nike’s stock hit all time highs on the back of strong earnings reports. Last year, when Morning Consult asked Americans to think of an ethical company and name the first one that came to mind, Nike was the 26th most frequently mentioned brand. When we asked again this year, after the Kaepernick campaign, they were the 4th most mentioned. Nike’s story is a potent example of how it’s possible to wade into controversial political waters, be comfortable taking a hit, and come out the other side stronger. By understanding their audience and leaning in on a high profile issue, Nike nurtured its reputation as an ethical leader. However, it’s also the case that Nike’s pre-meditated campaign is not indicative of how most brands engage with politics these days. More often, brands are reacting to the latest political flare-up on an ad hoc basis. And the results from this study indicate that, despite the potential for windfalls from political engagement, it’s more likely to present issues for brands. Most consumers don’t particularly want brands getting involved in politics. When brands do get involved, people are more likely to boycott than buycott, and negative responses are generally more pronounced than positive ones. For most brands, most of the time, it’s safer to stay out of politics. Of course staying out of politics isn’t always possible. In this environment, brands are regularly forced into political predicaments where silence is a response in its own right. In these scenarios, brands need to have a clear-eyed understanding of the terrain, and how that aligns with larger business goals. This year, Morning Consult has joined forces with Advertising Week to create a new roadmap for brands as they navigate 2020 and this new era of brand politics. We will walk you through the key issues, what stances are safe, which groups are most likely to boycott, which Democratic candidates are the most influential with consumers, how to engage with Trump, and how to think about generational divides.
+ INTRODUCTION REPORT AUTHORS M O R N I N G C O N S U LT Named one of the fastest growing technology companies in North America, Morning Consult is revolutionizing ways to collect, organize, and share survey research data globally to transform how leaders in business and government make decisions. L E A R N M O R E A B O U T M O R N I N G C O N S U LT https://morningconsult.com ADVERTISING WEEK Advertising Week is the premier event for marketing, brand, advertising, and technology professionals. Now in six different major cities across the globe – New York, London, Tokyo, Mexico City, Sydney and Johannesburg – each edition of Advertising Week presents endless opportunities to learn, network and liaise with the industry’s best. LEARN MORE ABOUT ADVERTISING WEEK http://www.advertisingweek.com HOW WE CONDUCTED THIS REPORT The primary results in this report stem from a survey conducted between August 13-August 15, 2019 among a national sample of 4,200 Adults, including an oversample of 1,000 millennials and 1,000 Gen Z’ers. The interviews were conducted online and the data were weighted to approximate a target sample of Adults based on age, educational attainment, gender, race, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points. On page 17 and 18 the results come from a separate survey conducted from August 21-23, 2019, among a national sample of 2,200 Adults. Results from the full survey have a margin of error of plus or minus 2 percentage points.
+ K E Y TA K E A W AY S CONSUMERS SEE BRANDS W E A LT H Y, W E L L- E D U C AT E D GETTING MORE POLITICAL AND LIBERALS ARE THE CONSUMER LESS IN TOUCH G R O U P T H AT B R A N D S S H O U L D BE MOST CONCERNED ABOUT 53 percent of adults say corporations have become more political in recent years - a much When it comes to boycotting and taking other higher share than those who say brands have actions around political issues, education, become more responsible, charitable, or in touch income, and political ideology are the biggest with average Americans. drivers of engagement. AMERICANS ARE TWICE AS I M M I G R AT I O N I S A M O N G T H E L I K E LY T O B O Y C O T T A S T H E Y M O S T G E N E R AT I O N A L LY D I V I S I V E A R E TO B U YC OT T ISSUES 29 percent of consumers say they have stopped If a brand were to advocate for stricter purchasing from a brand because of a political immigration policies, 48 percent of Boomers stance. Just 15 percent say they’ve spent money would have a more favorable impression of the to support a brand because of a political stance. brand, compared to just 22 percent of Gen Z. GEN Z AND MILLENNIALS EXPECT E N GAG I N G W I T H T R U M P I S ST I L L B R A N D S T O P L AY A L A R G E R A C O M P L I C AT E D T I G H T R O P E F O R ROLE BRANDS On a question relating to corporate involvement, Issuing a statement about Trump - whether 31 percent of Gen Z and 27 percent of Millennials positive or negative - is likely to draw a major agree that “Corporations play an important role in backlash. But among brand activists the reaction this country, and they should use their influence is likely to be stronger if the statement is positive. to impact political and cultural issues.” Just 16 percent of Gen X and 13 percent of Boomers say the same. SANDERS AND TRUMP’S BRAND CRITICISMS ARE THE MOST I M PA C T F U L H OW E V E R , AG E I S N ’ T A M A J O R When Trump criticizes a brand, 9 percent of DIVIDING LINE WHEN IT COMES Americans say they would definitely boycott it, TO H OW C O N S U M E R S I N T E R AC T and 7 percent say the same about Sanders. W I T H B R A N D S P O L I T I C A L LY Younger Americans have different political beliefs than older generations, but there isn’t a dramatic difference in how they interact with brands over these beliefs. For example, Gen Z and Millennials aren’t more likely to boycott brands over politics. 5
LIVE: 2020 S U R V I VA L G U I D E FOR BRANDS Join Morning Consult for a live presentation at Advertising Week 2019, featuring additional insights on the new challenges and opportunities brands are facing ahead of 2020 T H U R S D AY, S E P T E M B E R 2 6 AT 1 2 : 0 0 P. M – W O R K S H O P S TA G E 1 9 9 8 B R O A D W AY, N E W Y O R K , N Y 1 0 0 2 3
+ THE ROLE OF BRANDS C O N S U M E R S S E E C O R P O R AT E A M E R I C A G E T T I N G M O R E P O L I T I C A L , A N D LESS IN TOUCH WITH THE PUBLIC 53 percent of consumers say that brands have become more political in recent years, and just 24 percent say they’re more in touch with the public. 30 percent of Republicans think brands have become “much” more political, compared to 21 percent of Democrats. 53% 24% 23% Say corporations are Say they’re more in touch Say they’re more becoming more political with the American public ethical Additionally, 22 percent say corporations are becoming more accountable for their actions, 26 percent say more charitable, 43 percent say more environmentally friendly, and 27 say more value-conscious. Last July, when Morning Consult asked this question, 64 percent of consumers said that corporations were becoming more political – a signal that this sentiment is softening. A N D T H E P E R C E P T I O N I S T H E Y ’ R E B E C O M I N G M O R E C U LT U R A L LY LIBERAL IN THE PROCESS Consumers are 16 points more likely to say corporations are getting more culturally liberal than conservative. Among consumers who identify as conservative, the divide is particularly pronounced - a 34 point gap toward becoming more culturally liberal. In recent years, would you say corporations in America have become more or less: More No change Don’t know/No opinion Less Culturally 39% 13% 27% 22% liberal Culturally 23% 14% 25% 38% conservative
+ THE ROLE OF BRANDS GEN Z AND MILLENNIALS EXPECT MORE FROM BRANDS THAN OLDER G E N E R AT I O N S The youngest consumers have grown up watching brands engage with political and cultural issues – and they’re more likely to see that as an important role. Older Americans are far more skeptical as the graph below shows. Just 43 percent of Gen Z think corporations should stay out of politics, compared to nearly three quarters of Boomers. Corporations play an important role Corporations should stick to in this country, and they should use what they do, and generally not their influence to impact political get involved in political or cultural and cultural issues. matters. 31% 43% Gen Z adults 27% 50% Millennials 16% 63% Gen X 13% 72% Boomers Grey bars are the share who say don’t know or have no opinion.
+ THE ROLE OF BRANDS H O W E V E R , Y O U N G E R C O N S U M E R S D O N ’ T A C T U A L LY E N G A G E W I T H B R A N D S D I F F E R E N T LY O V E R P O L I T I C A L M AT T E R S Yes, younger consumers see brands playing a different role in society than older generations. It’s also the case that younger consumers have different political priorities, as detailed on page 14. But when it comes to how they interact with brands over political issues, younger Americans aren’t that different, as the tables below show. The share who say they pay “a lot” of attention to political and ethical matters relating to brands: 15% 16% 13% 9% Gen Z adults Millennials Gen X Boomers The share who say they are willing to overlook political and ethical issues relating to brands, if they otherwise like what the brand offers: 50% 51% 51% 45% Gen Z adults Millennials Gen X Boomers The share who say they stopped buying the products or services of a company because of a political action or stance it took: 31% 30% 28% 26% Gen Z adults Millennials Gen X Boomers
+ C O N S U M E R AC T I V I S M T H E P E R I L S O F TA K I N G A S TA N D : C O N S U M E R S A R E N E A R LY T W I C E A S L I K E LY T O B O Y C O T T A S T H E Y A R E T O B U Y C O T T 29% 15 % Stopped buying the products or services of a company because of a Spent money to support political action or a company because of a stance it took political stance Boycotters Buycotters M O S T A M E R I C A N S H AV E N E V E R TA K E N A N Y A C T I O N I N R E S P O N S E T O A P O L I T I C A L S TA N C E A B R A N D T O O K 47 percent of consumers say they have taken one of the below actions or buycotted or boycotted. The flipside - a slim majority (53 percent) has never taken any such action. Share who say they have done any of the following: Told family and friends to stop buying the 21% products or services of a company because of a political action or stance it took Posted something to one of your social 16% media accounts about a company because of a political action or stance it took 16% Signed a petition against a company because of a political action or stance it took Posted something to an online forum about 13% a company because of a political action or stance it took Protested in person, such as during a march 6% or outside a storefront, a company because of a political action or stance it took
+ C O N S U M E R AC T I V I S M W E L L- E D U C AT E D , L I B E R A L , A N D W E A LT H I E R A M E R I C A N S A R E M O S T L I K E LY T O B O Y C O T T Each dot represents the share who say they have stopped buying the products or services of a company because of a political action or stance it took. For example, 50% of post grads say they’ve boycotted. 15% 20% 25% 30% 35% 40% 45% 50% Millennials Gen Z Boomers Gen X Generation Black White Hispanic Race Under 50k 50k-100k 100k+ Income Moderate Conservative Liberal Ideology Female Male Gender
+ C O N S U M E R AC T I V I S M L I B E R A L S A N D C O N S E R VAT I V E S H AV E A N O TA B LY D I F F E R E N T R E L AT I O N S H I P W I T H B R A N D S One of the key demographic trends that emerged from this survey is the gap between how liberals and conservatives understand their relationship with brands, particularly when it comes to politics. Consistently, political ideology is a bigger dividing line on key political brand issues than other central demographics, like age, gender, and race. The data indicates that liberals are more likely to believe corporate America will be responsive to their interests. This shapes how they interact with brands, and what they expect in return. Liberals say it’s Liberals pay more Liberals are more more common for attention to political likely to take actions corporate political issues relating to like boycotting. stances to align with brands. 4 3 % of liberals say their views. 2 1 % of self-described they’ve boycotted a brand for political liberals say they pay 5 9 % of liberals say reasons, compared to “a lot” of attention and that when corporate 32% of conservatives, another 46% pay some brands take political and 22% of moderates. attention to political and stances, they often or ethical issues relating sometimes align with to brands. Among their own views. 41% of conservatives, 14% pay a conservatives and 42% lot of attention and 37% of moderates say the pay some. Moderates same. pay even less attention.
+ TA K I N G A S TA N D T H E M O S T A N D L E A S T C O N T R O V E R S I A L I S S U E S F O R B R A N D S T O CHAMPION, BY IDEOLOGY If a company advocated or supported one of the following, this is the share of consumers who would have a more favorable impression, minus the share would have a less favorable impression. Dark green indicates stronger support for the issue, and dark red is stronger opposition. All adults Liberals Moderates Conservatives The U.S. Military 60% 48% 66% 76% Reforming the criminal 49% 60% 55% 44% justice system The rights of racial 46% 72% 49% 31% minorities in America Affirmative action 27% 53% 30% 10% Gay rights 23% 62% 32% -13% Stricter gun control 23% 62% 32% -10% The #MeToo movement 22% 54% 26% -6% The #BlackLivesMatter 21% 60% 20% -17% movement The rights of 20% 60% 22% -17% transgender people Stricter immigration policy 9% -43% 10% 53% The campaign of a 0% 40% 5% -40% Democratic lawmaker Stricter policies -4% -51% -6% 28% preventing abortion The right of protestors to kneel -4% 44% -1% -49% during the national anthem The campaign of a -7% -50% -15% 33% Republican lawmaker
+ TA K I N G A S TA N D I M M I G R AT I O N I S A M O N G T H E M O S T G E N E R AT I O N A L LY D I V I S I V E ISSUES FOR BRANDS By a net 18 point margin, Gen Z is opposed to companies advocating for stricter immigration policy. Boomers, on the other hand, are overall supportive of this stance by a net 23 point margin. That generational divide between Gen Z and Boomers is one of the largest on the 15 issues tested below. If a company advocated or supported one of the following, this is the share of consumers who would have a more favorable impression minus the share who would have a less favorable impression. Dark green indicates stronger support for the issue, and dark red is stronger opposition. All adults Gen Z Millennials Gen X Boomers The U.S. Military 60% 34% 45% 66% 77% Reforming the criminal 49% 35% 43% 46% 56% justice system The rights of racial 46% 42% 41% 42% 50% minorities in America Affirmative action 27% 17% 23% 24% 39% Gay rights 23% 35% 23% 20% 18% Stricter gun control 23% 21% 19% 17% 33% The #MeToo movement 22% 29% 23% 15% 20% The #BlackLivesMatter 21% 33% 24% 15% 14% movement The rights of 20% 26% 22% 11% 16% transgender people Stricter immigration policy 9% -18% 2% 16% 23% The campaign of a 0% 8% 13% -8% -5% Democratic lawmaker Stricter policies -4% -17% -7% -2% -2% preventing abortion The right of protestors to kneel -4% 21% 10% -8% -18% during the national anthem The campaign of a -7% -16% -7% -7% -3% Republican lawmaker
+ R U L E S O F E N GAG E M E N T THE TRUMP CONUNDRUM B R A N D S S H O U L D G E N E R A L LY AV O I D E N G A G I N G W I T H T R U M P Issuing a statement about Trump – whether positive or negative will draw more backlash than benefit. But among Brand Activists* the reaction is likely to be stronger if the statement is positive. 35 percent of Brand Activists say they would have a much more unfavorable view of a company that issues a positive statement, double the share who would have a much more favorable view. If a brand issues a positive statement about Trump, here’s how consumers respond: Much more favorable Somewhat more favorable No difference Don’t know/No opinion Somewhat more unfavorable Much more unfavorable 14% 25% All adults 18% 35% Brand activists If a brand issues a negative statement about Trump: 16% 21% All adults 22% 26% Brand activists * Brand Activists are adults who have taken one of the following actions for political reasons: stopped purchasing from a brand, spent money to support a brand, told friends or family members not to buy from a brand, protested a brand in person, posted something about a brand to a social media account or online, or protested a brand in person. This group comprises 47% of U.S. adults.
+ TA K I N G A S TA N D C O N S U M E R S C L O S E LY T I E C E O S W I T H T H E B R A N D T H E Y R E P R E S E N T, B U T D O N ’ T F I N D T H E M T O B E PA R T I C U L A R LY E N D E A R I N G F I G U R E S When executives take political stances, this survey indicates most consumers will understand them to be speaking for the larger brand. Seventy-five percent of Americans say CEOs represent the views of a company either a lot or some - that’s more than for the board of the company, a large group of organized employees, or other high ranking executives. However the survey does not suggest that having this human face represent the brand provides a clear upside. CEOs are trusted about as much as politicians (not much) How much trust do you have in the following to do the right thing? A lot Some 48% 45% 36% 27% 23% 22% 16% 13% 15% 11% 6% 5% 7% 6% Politicians CEOs Government Corporate Religious Community Non-profits of major brands leaders leaders corporations Conservatives are more likely to think CEOs are in touch with average Americans How much do you think CEOs of major corporations represent the opinions of the average American? A lot Some Don’t know/No opinion Not too much None 7% 21% 13% 39% 20% All adults 7% 26% 8% 42% 16% Conservative 8% 21% 10% 42% 19% Moderate 5% 20% 6% 44% 25% Liberal
H O W 2 0 2 0 C A N D I D AT E S + CAN AFFECT CONSUMER VIEWS T R U M P A N D S A N D E R S A M O N G T H E M O S T I M PA C T F U L W H E N I T C O M E S TO I N S P I R I N G B OYC OT T S A N D S H A P I N G B R A N D P E R C E P T I O N S When President Trump calls for a bran boycott, 10 percent of consumers overall say they definitely would. An additional 27 percent say their perception of the brand would be impacted. When it comes to inspiring boycotts, newcomer Alexandria Ocasio-Cortez has as much clout as progressive leaders like Bernie Sanders and Elizabeth Warren. Share would definitely boycott if each Share who’s perceptions of a brand would political called for it be impacted by each politicians criticisms 10% Donald Trump 27% 8% Bernie Sanders 30% 7% Alexandria Ocasio-Cortez 18% 6% Elizabeth Warren 23% 6% Joe Biden 26% 6% Nancy Pelosi 22% 5% Kamala Harris 18% 4% Charles Schumer 15% 4% Mitch McConnell 12% 3% Kevin McCarthy 9%
H O W 2 0 2 0 C A N D I D AT E S + CAN AFFECT CONSUMER VIEWS T H E M O S T I M PA C T F U L P O L I T I C I A N S B Y D E M O G R A P H I C : T R U M P L E A D S W I T H O L D E R A M E R I C A N S , B E R N I E W I T H YO U N G E R O N E S Overall, 30 percent of consumers say that their perception of a company would change if Bernie Sanders were to be critical of it. But among Gen Z and Millennials, that jumps up to 40 and 38 percent respectively, meaning brands with an eye to younger consumers should be particularly mindful of his ire. Share of adults who say their opinion would shift if the following elected official criticized the company: G E N E R AT I O N GEN Z MILLENNIALS GEN X BOOMERS Bernie Sanders Bernie Sanders Donald Trump Donald Trump 40% 38% 26% 27% INCOME UNDER $50K $50-100K $ 1 0 0 K+ Bernie Sanders Bernie Sanders Joe Biden 29% 31% 29% E D U C AT I O N LESS THAN COLLEGE C O L L E G E G R A D UAT E P O S T- G R A D UAT E Donald Trump Elizabeth Warren Bernie Sanders 27% 36% 37% I D E O LO GY LIBERALS M O D E R AT E S C O N S E R VAT I V E S Bernie Sanders Joe Biden Donald Trump 54% 27% 43%
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