As Social Media Grows, Marketing Spend Increases

A recent Bellwether Report of 300 UK marketing executives reveals that companies tended to cut their marketing budgets in Q2 of this year. A waning of business confidence and general optimism amongst the executives seemed to be the main explanation, which confirms that the economic recovery remains tentative at best.

The survey also found that direct marketing and the internet are the only marketing budgets likely to have seen an increase – demonstrating the continued attraction of social media as a marketing tool for a broad range of organizations. From a research perspective, the fact that social media marketing is data-driven offers a level of measurability and accountability that is particularly valuable to executives grappling with stretched marketing budgets. 

PSB ‘s A More Social Future survey found that social media is becoming ubiquitous, even though it’s still driven by mainly younger users.  Given its increasing prevalence and the increasing comfort of all age groups with the concept – 57% of those aged 50+ surveyed in our poll had social media accounts – it is hardly surprising that businesses are using these platforms to market their products and brands. 

Though the Bellwether study is focused on the UK, it's likely that this trend is also affecting marketing budgets in other developed countries. Furthermore, with internet and social media marketing still in its infancy, it will be fascinating to find out whether certain industries find the tactic to be more effective than others in delivering a greater bang for their marketing buck.

Economic Confidence among Elites is up, but What of Spending?

The New York Times  reports that affluent consumers, whose increased spending last year was largely credited with reviving hope in the US economy, may have now entered another period of retrenchment.

In November 2009, PSB released a report  which looked at the general American population and identified a trend of increased spending among high income consumers. The headline result then was that Americans earning more than $70,000 a year planned to increase their holiday spending by 27% over the previous year, while those earning less than $40,000 a year were planning to reduce their spending by 14%.

The relative upswing in consumer sentiment forecast in our study, particularly among high income consumers, continued into the first half of 2010, and the article confirms that affluent consumers’ spending  was on the up until very recently– hence the increase in sales of Mercedes and high end properties in the Hamptons and Manhattan mentioned in the Times article.

Indeed, for some time the hopes of US retailers, and the US economy in general, have been pinned on the continuing willingness of affluent Americans to maintain or increase their spending in 2010. The latest data, therefore, is likely to leave many businesses nervous about the ongoing unpredictability of the American consumer.

The picture becomes even more nuanced when one considers today’s Politico poll, also conducted by PSB. This survey suggests that 45 percent of “Washington elites” feel the country and the economy are headed in the right direction, while only 25 percent of the general population feels that way. What is not clear, however, is how the spending patterns of Elites will be affected by these higher confidence levels.

In such a perplexing environment, companies may need to take the temperature of their customers more often than they have historically. One month of disappointing data, particularly if it emanates from higher end consumers, is proving itself able to undermine confidence everywhere, so companies should be looking to research their customers’ spending patterns, as well as their general sentiments, as often as possible.

Pew poll: more evidence of A More Social Future?

A new Pew report on the future of social networking reveals that most tech experts believe that the Internet has been a mostly positive force, but that social networks can be used in harmful ways.This view supports the findings of PSB’s own study on the growth of social media from earlier this year, entitled “A More Social Future”. 

Overall, the data clearly suggests that social media is here to stay, with 85% of respondents to the Pew survey agreeing with the prediction that by 2020 the internet will have been a mostly positive force on their social world.This chimes well with the findings of our study of the general US population, which revealed that 6 in 10 respondents, and 3 in 4 of the 18-34 year-olds we polled, believe that social media networks will become more integrated into our lives. Furthermore, 56% of the Americans we polled feel that they will make friends in the future because of social networks.

So, with such a consensus believing in the pivotal role of social media in people’s lives, which networks will build lasting, profitable business models?

One clue comes from the question we asked about social media’s impact on purchase decisions; 80% of 18-34 year olds think that recommendations received from a social media network are the same or better than recommendations from traditional methods.

The winning social media sites in the future will be those which can build an enthusiastic community of users who believe in social media as a long term concept. It is within this environment that social-context advertisements (where data is collected on the preferences of other members of the network and displayed as an effective word-of-mouth tool) can gain traction. Companies will be very keen to pay for these advertisements if they feel that the endorsements of fellow users will lead to a greater ROI.

The American Constitution Survey 2010

The American people are solidly behind the basic principles of the Constitution. But they are deeply divided as to how it should be interpreted, and they're frustrated with its current implementation. Penn Schoen Berland's June 2010 poll of 1000 Americans (presented today at the Aspen Ideas Festival) addresses their attitudes toward the past and future of the Constitution - as well as the changes they want to make to give people more power.

Mark Penn, Karen Hughes speak on midterm elections at George Washington University

(left to right: Dean Chris Arterton of George Washington University, Karen Hughes, Mike Allen of Politico, Mark Penn)

This morning, PSB CEO Mark Penn and Burson Marsteller Vice Chair Karen Hughes took part in a discussion hosted by Politico's Mike Allen about what to expect from the upcoming 2010 US Elections. During the event, held at the George Washington University School of Graduate and Political Management and simultaneously webcast via Ustream, both participants drew on their experiences as senior communications strategists for Presidents Clinton and Bush respectively to offer some fascinating insights into the changing electoral landscape, and how Republicans and Democrats should look to position themselves.

Mark and Karen agreed that the overriding anti-Washington sentiment in the country poses significant challenges to both parties, though Karen feels that candidates who can empathize with the frustration felt by Americans about the nation’s capital will have the best chance of success, pointing to Rick Perry’s recent primary election win in Texas. Mark countered that despite all the negative publicity facing President Obama, his approval ratings remain much higher than either President Clinton’s at the same point in his presidency or President Bush’s on the eve of the 2006 elections. He further observed that the key for success for the Democrats will be to convey the message that more time is needed to ensure that their agenda can begin to work to fix the problems created by the previous Administration, and that now is not the time to turn back to the old policies which have left the country in its current position. Mark also mentioned that the rise of Independent voters could play a significant role in the election; up to 40% of Americans are currently unaligned with Republicans or Democrats, and membership of both traditional parties is at an all-time low.

Mark and Karen also discussed the current and future role of technology in political campaigns. Karen noted that technology now allows content to be delivered to specific audiences in a way that is unparalleled in history – and that political communications will only become more targeted in the future.  Mark agreed that this theme was essential to understanding the new dynamics of political messaging, and also pointed to the exponential growth of Facebook as a global phenomenon which has allowed for political issues to be advanced on a global platform and to a global audience for the first time ever. Continuing the technology discussion, Mark noted that he expects the first 3D political advertising to be coming soon, and that such ads will again transform the way campaigns interact with voters.

In the final minutes of event, the audience benefitted from further insightful questioning and discussion thanks to Mike Allen’s adept moderation. For more information about this morning's event, check out Politico's own reporting. 

Green Brands Survey 2010

Today we are pleased to announce our the 6th wave of our Green Brands Survey. Conducted in partnership with WPP agencies Cohn & Wolfe and Landor Associates, as well as independent strategy consulting firm Esty Environmental Partners, the 2010 Green Brands Survey polled more than 9,000 people in 8 countries - the United States, United Kingdom, France, Germany, Brazil, China, India and (for the first time) Australia. The global topline findings and analysis can be found in the presentation below. Our press release is here. And of course, feel free to contact us if you have any questions or would like to request further information from this extensive study.

Sovereign Brands Survey 2010

The Sovereign Brands Survey 2010 Penn Schoen Berland conducted in partnership with Hill & Knowlton is the most comprehensive study ever of attitudes towards sovereign wealth as a concept, individual sovereign wealth funds (SWFs), and the reputation of their host nations. The study covered elite attitudes in seven countries (US, UK, Germany, Egypt, Brazil and China) towards 19 SWFs in Norway; Singapore; Hong Kong; Malaysia; Abu Dhabi; Dubai; Kuwait; Qatar; China; Bahrain; Oman; Mexico; Russia; Libya; Kazahkhstan; Brunei; Algeria; Nigeria and Botswana.

Technology by the Bay

The Value of Research to PR: A view from having been on both sides

By Shoshana Deutschkron 

I can tell you from firsthand experience, as a PR practitioner over the past decade, that compelling data helps land dream targets. I’ve used it to get coverage in The Wall Street Journal, NY Times and USA Today, and to generate social media buzz. Plus, leveraging data turns up overall volume. The head of communications at online real estate search site Trulia.com told me that approximately 80% of their media coverage is data-driven. Surprised? You shouldn’t be in today’s information economy.

Probably no one would dispute that being able to provide information for industry discussions -- or show thought leadership -- is critical to a company’s success. But anyone can spout visionary claims. How do you sound credible and rise above the clutter? Three words: Cold Hard Data. With it, you are going to stand out because a) you have something to offer that truly is currency and b) you become more credible. Reporters will use your survey results to back their story up with scientific evidence. They’ll also be grateful for the jumpstart the numbers provide to their reporting process.

One of the major benefits of research I’m not sure people realize also is that it levels the playing field. Whether you’re a big name or an up-and-comer, with data your voice carries weight. Yet, I suspect many PR people haven’t commissioned surveys. Having been on both the PR and research side now, I wanted to offer some perspective. Here’s an abbreviated version of my 10 Steps For PR To Use Research. If you’d like to see more of my thinking around each step and some related examples of good PR polls, I’ve posted a complete version here.

10 Steps for PR To Use Research

1.   Set clear business objectives – What you’re trying to achieve for your business guides your research methodology and topic.

2.   Figure out your associated PR objectives – Establish media goals that tie back to your business objectives.

3.   Craft your media strategy – Determine this before drafting your survey, you may want to involve media in the process.

4.   Find a trusted research partner – This is important for the credibility necessary to generate coverage (especially with elite media) and for your own counsel.

5.   Have fun telling a story – Research really is fascinating. It reveals surprises and informs stories you would never arrive at otherwise.

6.   Make the story a good one -- Cause a reaction… empathy, astonishment, frustration or any range of emotions. Also, tie into hot media topics to draw attention, but be careful not to gather data that’s already available elsewhere.

7.   Maintain focus -- You won’t want to overwhelm media with too much data and after about 20 minutes (approx. 50 questions) you risk losing survey-takers.

8.   Make sure you have pretty pictures –Visually represent your results. Everyone likes pretty pictures, right?

9.   Invite everyone – Put press materials and data online where everyone can access to it once it’s public. This, combined with the visuals, extends your online reach.  

10. Create a data legacy – Trended data is even more powerful. To get the best impact from research for PR efforts, provide a regular “pulse” by tracking key measures ongoing.