Emerging Spaces Edition 3

LIFESTYLE SPACESA trends briefing by SMG Research

Designed to keep you up-to-date with the consumer issues that are affecting your business, Lifestyle Spaces brings you the latest in consumer trends insight from SMG. The third edition includes:

• The role of social media in the upcoming general election

• How can your brand get involved with sports?

EDITION 3

From election to election - through the digital revolutionLooking back to 2005, when Tony Blair was re-elected for a third term, the UK digital landscape was fundamentally different. While a number of social networks were already bubbling under the surface, social media was yet to reach a mainstream audience. YouTube was a new born, Facebook was still the preserve of the Harvard elite, and Twitter didn’t even exist. Five years later, on the cusp of the next general election, there are 24 million1 Britons on Facebook, 6 million on Twitter, and YouTube is the second largest search engine in the world.

Nowadays, it is hard to recall the media landscape without social media. For increasing numbers of both consumers and brands, social media is now a key part of their communications toolkit. Reacting to the breadth of information now available on the web, social media allows connected consumers to create, discuss, and amplify content at breakneck speed. And of course, savvy brands are now looking for ways to infiltrate these conversations, and to create a few of their own. However, it was only in 2008 that a certain American pioneer applied this thinking to a whole new area.

The first digital PresidentIntegrating social media into his presidential campaign, Barack Obama activated a wide range of social platforms. He wove together established channels such as Twitter, Facebook, and YouTube with a bespoke social network: My Barack Obama. Direct messaging mechanisms such as email and SMS were also used.

Acting like a digital native, Obama created interactive content that empowered people to participate in his campaign. In practical terms, Obama used social media to encourage a large number of individuals to make small sized donations, rather than the conventional model of accepting larger

donations from a wealthy minority. As a result, the use of the ‘donate now’ button is estimated to have raised $500 million online2.

Obama’s ‘Conversationalists’ In the run up to the 2008 Presidential election, a study conducted by MediaVest USA found that Obama’s supporters were more likely to be ‘conversationalists’ – a group defined by their increased likelihood to discuss politics with their friends and family, rather than seeking out political media specifically. In addition, MediaVest USA found that Obama’s supporters were more likely to be ‘media generalists’ than followers of McCain. This meant that Obama’s fans were more open to a range of media outlets (both on and offline), whereas fans of McCain tended to favour television. Capitalising on the nuances in his support groups, Obama managed to involve these ‘conversationalists’ in his campaign by providing the tools to empower his supporters to amplify his message digitally. At the end of the campaign it was no coincidence that Obama had more friends on Facebook and more videos on YouTube than McCain. But what can brands learn from this? Obama gives us a great example of how to create accessible content and plan it across many platforms, generating momentum and amplifying buzz.

How have UK leaders been inspired by Obama? On the verge of the UK election, the two main political parties are attempting to replicate Obama’s strategy by harnessing social media. Labour is investing in social media by using Twitter to collect real-time feedback directly from the public, and by launching ‘The Change We See’ campaign using Facebook and Flickr. They have also set up the ‘Labourspace’ platform, which enables people to start up an online campaign and share ideas

within the Labourspace community. Conservatives on the other hand, have deployed digital as a support platform for their traditional media campaign. They have translated their latest billboard campaign: ‘I’ve never voted Tory before, (but)…’ into Facebook as a series of video interviews with citizens who have decided to switch allegiance. Furthermore, ‘Blue Blog’ and YouTube ‘Webcameron’ are updated regularly with Cameron’s speeches, news, and debates.

Of course, both of the main parties and their leaders have profiles on Facebook and Twitter, however they differ by level of engagement. The Labour party currently has 11k followers on Twitter versus 21k for the Conservatives. On Facebook, combining the number of ‘friends’, ‘members’, and ‘fans’ for each party’s MPs, prospective party candidates and the official party page on Facebook, the Labour party counts over 63k connections on Facebook, while the Conservative party boasts almost 154k3. However, both are small figures compared to the 708k fans of Aleksandr Orlov - founder of Compare the Meerkat, which might make us wonder about the UK leaders’ grasp of social media campaigning!

But could these numbers have any real impact on the outcome of the forthcoming election? How do online users respond to the social media strategies that have been put into place by the parties? To answer these questions we used Whitevector to explore what lies beneath the digital surface.

Whitevector: a social listening tool Whitevector is SMG’s preferred social listening tool. It quantifies the online discussions by tracking 200+ million sites (forums, blogs, news, product reviews and social networking sites). Its outputs include: brand visibility measures (i.e. share of voice, conversations/mentions over time), brand associated topics,

TREND IN THE SPOTLIGHT: A Social Media election?

1 Nielsen Netview 2 Washington Post

By Alice Bresciani, Senior Research Executive

most influential online sites/forums/blogs and sentiment for brands and topics. Using this data, SMG research adds an extra layer of human analysis and provides clients with actionable insights and recommendations. Using Whitevector in the political context, we had a look at how online share of voice for the three main parties and their respective leaders has changed in the past four months.

The Conservatives’ digital share of voice is growingAccording to Whitevector, the Labour party currently commands just over half of the online share of voice. However, as the election date closes in, our analysis shows that the Conservative party has been steadily increasing their share of online conversations over the past few months. But, do online users feel warmer to any particular leader?

Online sentiment to UK political leadersBy exploring the sentiment (or tone of discussion) associated to party representatives, we have uncovered some evidence of political apathy towards the main party leaders in the UK. By looking at the percentage of densely positive or negative tone of online discussions around Brown and Cameron, we can see that there isn’t a clear preference towards either

leader. However, leader of the Liberal Democrats Nick Clegg did appear to attract a greater proportion of negative sentiment (albeit from a smaller base).

According to a member of our own online panel The Street, this online apathy seems to be symptomatic of a bigger issue in the UK generally: ‘The main problem all of the parties have is the apathy of the public to actually voting, If they cannot get enough people interested in what is going on then it is not going to be representative of what the real feeling is (Female, 32)’.

The real influencers As mentioned previously,

Whitevector also enables us to identify the actual conversations that are taking place online, beyond measuring share of voice quantitatively. This allowed us to pinpoint the most committed and vocal supporters and detractors of the two main parties. Whilst politicians (and brands) should undoubtedly be aware of what these commentators are posting, the most dedicated digital commentators are not necessarily the most influential overall.

Referring back to the strength of Obama’s campaign, his success was in reaching the ‘conversationalists’ – the much broader audience of people interested in sharing informative content with their friends and family on Facebook and Twitter, and therefore infiltrating everyday conversations.

The first digital Prime Minister?According to the latest voting intention opinion polls, the Conservatives are currently 9 percentage points ahead of Labour4. In addition, our analysis suggests that the Conservatives are also a step ahead in the social media world. While we do not believe this to be a coincidence, it seems a little early for whoever becomes next British Prime Minister to claim it a digital victory - unlike their visionary American counterpart.

What can your brand learn from politicians’ use of social media?

Listen: Social media can really empower your brand and help it to become part of everyday conversation. Use social listening tools, such as Whitevector to monitor your audience’s conversations and to pin-point the real influencers.

Create: After listening to your target audience’s discussions, create relevant and engaging content to suit your audience’s passions points and thereby provide chances to become involved with your brand.

Amplify: Place your social media content in front of the right users and influencers, giving them the opportunity to weave it into their everyday online conversations.

If you would like further information on buzz monitoring and analysis for your brand, please contact Melpo Gkofa in SMG Research on 020 7190 8758.

3 www.metro.co.uk 4 The Guardian/ICM

Fostering passion, enthusiasm and sociability, sport presents brands with an opportunity to reach consumers in a highly desirable mindset. Providing the foundation for a variety of marketing objectives to be realised, sport is an extremely fertile ground for brands to play in.

Increased viewing opportunitiesSuperior technology and coverage are increasingly helping to deliver to both mass and niche audiences; uniting and fragmenting simultaneously. Dedicated channels, red button technology, mobile and the internet are offering more people more opportunities to watch sport, exactly where and when it suits them. The Olympics reflect these trends most vividly - 41 million5 UK adults tuned in to the Beijing Olympic Games. The BBC revealed that internet and digital television coverage allowed it to increase its Olympic output from 250 hours for Sydney 2000 to 2,750 hours for Beijing 20086, evidence of both technology and variety of events reaching out to a wider audience.

Captivating and engagingDivisive on occasions, yet inclusive at all times, sport is one of the few things with the power to engage nations and unite communities. Research from Starcom China found that the Beijing Olympics fuelled national pride, recording increased positivity towards statements such as ‘I am proud to be Chinese’. SMG are especially interested in this potential, launching SMG Sports in 2009, and Vange Kourentis, Director of our sporting arm, is acutely aware of the opportunity, “To many, sport is a religion and opportunities to communicate with fans at the height of their passion, at their place of worship, are becoming ever more sophisticated and integrated into their experiences whether that be on TV, via web or mobile”.

The UK is actively involvedSeven in ten UK adults play or take part in sport occasionally or regularly7. We’re increasingly being encouraged and inspired to take part - the popularity of the

Nike Run programme, Bupa Great Run series, Race for Life and even Sports Relief are leading examples. Sport has always been fundamental to society, but we are witnessing an increasingly structured role in communities led by the Government, charities and brands. In fact, half a billion pounds is going to 46 sports governing bodies that’ll go direct to the grass roots and increase opportunities for people of all ages and backgrounds to play sport8.

The opportunity for brands lies in accessibility The diverse nature of sporting engagement, whether viewing or participating, populist or niche, has created fertile ground for sponsorship opportunities and they appear in numerous shapes and sizes. Fundamental to success is the largely symbiotic relationship present in sport with both sponsor and sponsored property capable of benefiting in a number of ways, including financially, enhancing profile and benefits of association .

High profile sporting properties provide the platform for the big and the bold, such as international brand building, mass consumer engagement or brand positioning. Reaching viewers at the height of engagement, harnessing the passion and the excitement, can establish positive emotional benefits for the brand beyond pure exposure. Furthermore, positioning a brand with a sporting property can generate a transfer of values, with the potential to reap positive associations and change attitudes10.

A DECADE OF SPORTING OPPORTUNITY FOR BRANDSSport is an established communication space with potential for all brands to get involved.

By Trevor Moody, Senior Research Executive

“Sport plays a huge role in our family, both my boys and my husband play and support the game of football… as for me I love the Olympics”. Female 37. The Street.

It is equally possible to achieve cut through at lower price points at a niche or community level. Supporting smaller projects, by providing kit, facilities, pure sponsorship and so on, allows brands - even those with no natural association with sport - to succeed in creating meaningful connections through commitment, innovation and carefully thought-out strategies11. Such ‘Strategic philanthropy’ can have significant influence on consumer perceptions of a company’s CSR efforts, an important benefit considering three out of four consumers consider environmental and social aspects when making purchase decisions12.

Entering a Decade of SportOur evaluation of sport in the UK leads us to believe that sport will become an increasingly prominent leisure pursuit across the next decade. Mounting societal pressure to live a healthy lifestyle, combined with growing accessibility of sport across a range of touchpoints are encouraging consumers to get involved. Over the next ten years, a variety of sporting events on home turf will only act as a catalyst for this trend. In turn, savvy brands will take up a range of rich opportunities to leverage both the short and long term effects of association.

5 IOC (International Olympic Committee) 6 IOC

7 TGI 2009 8 Minister for Sport Gerry Sutcliffe 9 The Fundamentals of Sport

10 Admap 11 Mintel: UK Sport 12 Hartman Group

A decade of Sport events in the UK2010: Ryder Cup, Celtic Manor

2011: Champions League Final, Wembley

2012: Olympic Games, London

2013: Rugby League World Cup

2014: Ryder Cup, Gleneagles

2015: Commonwealth Games, Glasgow

2018: Football World Cup (Additional Bid)

2019: Cricket World Cup

For further information on Lifestyle Spaces please contact: Donna Booth at [email protected]