T H E How Brands Can Navigate the New Era of Politics - Morning Consult

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T H E How Brands Can Navigate the New Era of Politics - Morning Consult
THE
         2020
  S U R V I VA L
       GUIDE

How Brands Can Navigate
the New Era of Politics
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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
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                                                                                    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.
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                                                                                        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.
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                                                                                         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
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                                                                                    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
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       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.
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                                                                                     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
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                                                                                  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
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                                                                                                       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
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                                                                                         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.
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                                                                                                               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
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                                                                                                                  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
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       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.
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                                                                                                               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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