Revolutionary Measures

Google, tax and PR – do no evil?

On the PR side it has been a busy couple of weeks for Google. Firstly, it casually announced at Davos that it had agreed to pay £130m for ten years of UK corporate taxes, although obviously without any admission of guilt. Cue a storm of protest that this was nowhere near enough for a business that reputedly made £7.2 billion of profits over that period, essentially meaning it paid 3% corporation tax. Much of the vitriol came from other media companies, particularly newspapers, that have seen their own advertising revenues decimated by the search advertising giant.

Google Quick Search Box

Then earlier this week Alphabet, Google’s holding company, became the world’s most valuable company by market capitalisation, helped by strong financial results and worries about previous number one Apple’s future growth prospects.

Given the closeness of these two events, it would be easy to draw the conclusion that ethically debatable behaviour leads directly to outstanding corporate success. But has it actually made any difference to Google’s reputation in the UK? I’d argue that overall it hasn’t affected its business in any way, for three main reasons:

1.The public doesn’t buy from Google
For the majority of people Google is a utility – providing them with the ability to browse or search the internet, watch videos, manage emails and documents or run their mobile phones, without charging them a penny directly. What people don’t understand is that the price of this free stuff is that they become the product – Google has built its very lucrative business on selling this data on our activities and preferences to advertisers. In contrast Starbucks, another perceived tax avoider, sells physical products direct to the public, giving consumers a vested interest in seeing the right levels of tax paid out.

2.Google does no evil
It will probably surprise a lot of people that Google is as enormous as it actually is. From its beginnings it has cultivated a laid-back, anti-establishment brand, epitomised by its corporate slogan “Do no evil” and heavy investment in moonshot projects such as self-driving cars and research into cures for cancer. Despite its growth, it is still seen as a Silicon Valley upstart successfully battling the likes of Microsoft (search, browsers, productivity applications, operating systems) and Apple (with Android).

3.Is there an alternative?
Obviously you can use different search/email/operating system providers, including those that make it clear that they won’t either track your online behaviour or use it to target adverts based on your browsing. But how many people actually make the effort to go out and switch, particularly when Google makes it so easy to just carry on using its services. The figures speak for themselves – it has nearly 86% of the UK search market, which hasn’t changed much since the first mention of its tax affairs.

So, while as a PR person I agree that it has handled the whole tax situation badly by trying to claim that it is doing the right thing when its activities are ethically dubious at best, I don’t think it will have a major impact on the corporate brand. This is echoed by an (admittedly small) poll in PR Week, where 51% of PR professionals said it would leave its reputation unchanged – and 11% thought the tax settlement would improve the brand.

However, where it may cause issues, is by attracting further attention from regulators at the European Union, which have previously shown that they have more teeth when dealing with tech giants than national governments. Time will tell, but with the media already setting its sights on Facebook for potential even larger tax avoidance, I think Google will feel that the £130 million it spent is worth every penny.

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February 3, 2016 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , , , | 1 Comment

5 lessons marketers can learn from the UK general election

Essentially a general election campaign is an exercise in marketing. Parties are trying to reach distinct audiences with their key messages and convince them to put a cross in the box next to their candidate’s name. To confuse matters slightly you have both national and local campaigns, potentially with different issues that have to be addressed. For example in some constituencies it is simply a matter of defending a majority by making sure people go out to vote, while in the marginals where the election will be won or lost it is about securing every vote possible.

Rt Hon David Cameron, MP, Conservative Party l...

It is also a pressure cooker environment. General election marketing is carried out in an intense campaigning period, with the eyes of the media permanently trained on everything that the parties do. So, for normal marketers what lessons can we learn – both positive and negative? I’d pick out five key ones:

1. Show passion
One of the criticisms levelled against David Cameron is that he doesn’t seem to care about the election and potentially winning a second term in office. Whether this is true or not, his perceived insouciance stands in stark contrast to the firebrand rhetoric of the challenger parties such as UKIP and the SNP. If you want to connect with your audience, show that you really are engaged with them and demonstrate you understand their concerns.

2. Don’t take your audience for granted
The days of a two party system appear to be consigned to history, with some of the safest Tory and Labour seats under attack from challenger parties. This is part of a wider dissatisfaction with professional politicians, which the electorate feel is out of touch with their lives and concerns. The lesson for marketers is that challengers can pop up in any industry, no matter how high the barriers to entry, if you fail to deliver what your audience wants.

3. Check, check and check again
I’ve had an election leaflet that says “insert local message here” at the bottom, while Tory MP Matthew Hancock has been embarrassed by an unfortunate fold of a campaign flyer that removes the first three letters from his name. The message is clear – no matter how pressured you are, it is vital to check everything that goes out if you are to avoid slip-ups.

4. Innovate
There hasn’t been a lot of innovation in how the main parties have campaigned during this election. Speeches, battle buses, visits, kissing babies and celebrity endorsements have been the norm. Ed Miliband visited Russell Brand, but given that Brand had earlier told his followers not to bother voting it remains to be seen what the impact of his chat actually will be. The TV debates that helped Nick Clegg to power last time did happen, but in a variety of formats that meant they lost their overall potency – exactly as David Cameron had hoped. Perhaps what is really needed is innovation within the whole process. You can register online to vote, but you can’t yet vote online or via text. Surely it is time to change this to encourage greater participation?

5. Embrace all channels
One of the key differences between most marketing and a general election is that each party is aiming to appeal to a wide age range. So you have to have specific messages for older audiences and the millennials who could be voting for the first time. That’s one of the reasons that this was predicted to be an election that embraced social media, particularly to reach younger voters, who traditionally have been less likely to vote. I’m not convinced that any party really nailed social media – or even if that is possible – but think that most of them could have done more to build engagement on the channel. Still, Twitter saw some interesting memes, with #milifandom making Ed Miliband an unlikely sex symbol.

As I write this on the morning of polling day the expected result is a hung parliament, with no party having a sufficient majority to govern alone. So on that score the major parties’ marketing will have failed. However if you look at the campaign as a whole, there are plenty of lessons to learn about what to do – and probably most importantly, what not to.

May 7, 2015 Posted by | Creative, Marketing | , , , , , , , , , , , , , | 1 Comment

Would we Like a social media election?

We’re now well into the General Election campaign and commentators are examining which media politicians are going to use with engage with voters. I’ve already talked about the debacle around the televised debates, which David Cameron is doing his best to scupper, but what of social media?

Rt Hon David Cameron, MP, Conservative Party l...

Rt Hon David Cameron, MP, Conservative Party leader, during his visit to Oxfam headquarters in Oxford. Full version. (Photo credit: Wikipedia)

Predictions that the last election would revolve around social media were wide of the mark, proving less like Obama’s #Yeswecan campaign and more akin to a series of embarrassing mistakes perpetrated by politicians and their aides who’d obviously never used Twitter before. This has continued with further gaffes, such as ex-shadow attorney general Emily Thornberry’s patronising tweet during the Rochester and Strood by-election that cost the Labour frontbencher her job.

However, there are already signs that social media will pay a bigger role in this election. For a start, social media is a good way of reaching the core 18-24 demographic that is currently disengaged from politics. 56% of this age group didn’t vote at the last election, so winning their support could be crucial in a contest that is currently too close to call.

We are also in an election where the core support of the traditional big two parties is being swayed by the rise of UKIP, the SNP and the Greens. So, rather than just appealing to floating voters in a certain number of swing seats, the Conservatives and Labour both need to demonstrate to their supporters that they understand their concerns and have policies to win them over. This means that they are likely to be more aggressive than in the past, judging that alienating the middle ground is a price worth paying for retaining traditional voters.

How this plays out generally will be fascinating, but what can social media provide? Early indications suggest there are six areas where it will be most used:

1. Attacking the opposition
Unlike offline or TV advertising, social media is largely unregulated. Which means you can get away with more online – for example, the Tory party is financing 30 second pre-roll “attack” ads on YouTube the content of which would be banned on TV. Given the desire to reassure core voters, expect tactics like this to be used even more as the campaign unfolds.

2. Managing the real-time news cycle
CNN brought about the 24 hour a day news cycle. Twitter has changed that to give minute-by-minute, real-time news. Stories can gain traction incredibly quickly, and fade with the same speed. Parties will therefore look to try and control (or at the very least manage) social media during the campaign, monitoring for trends that they can piggyback and starting stories of their own. And given that the media will also be monitoring what politicians are saying, expect a rash of stories with a shelf life of minutes and hours, rather than days and weeks.

3. Reaching voters
One of the most powerful parts of social media is the demographic profiling it provides advertisers with. This means that spending on advertising can be extremely targeted towards potential supporters, with little wastage. Figures obtained by the BBC show that the Tories are on course to spend over a million pounds on Facebook during the course of the election, based on current activities. Of course, reaching voters is one thing, the next step is to actively engage with them, starting conversations, listening and responding to their concerns. That takes time and skill, so expect a lot of effort to be thrown at content and conversations.

4. Monitoring voting patterns
There’s a lot of excitement about Big Data, and in particular how you can draw insights from the conversations happening on social media. Party strategists will be able to monitor what is trending on networks, and then use this feedback to evolve or change their strategies to focus on areas that are resonating with particular groups. However this sort of monitoring is still in its infancy, so results will need to be cross-checked before parties decide to do a U-turn on key policies.

5. Amplifying success
Third party endorsement is always welcome, so politicians will look to share and publicise content, such as news stories, that position them in a good light, and also encourage their supporters to do the same. This has already happened with celebrity interviews with the likes of Ant and Dec and Myleene Klass. However, as journalist Sean Hargrave points out, the Tories have a problem here – much of the right leaning media (The Sun, The Times and Daily Telegraph) are behind full or partial paywalls, making sharing difficult. In contrast the likes of The Guardian, Mirror and Independent are completely free and design content to be as shareable as possible. That just leaves the Tories with the Daily Mail……..

6. Making it bitesize
Like any modern digital campaign, the election will run on content. And to appeal to time-poor voters it will need to be carved up into bitesize chunks, such as blogs, Vines, Tweets and Facebook posts. Politicians are meant to be masters of the soundbite, so this should be just a question of transferring their offline skills to the digital world.

Social media will definitely be more of a battleground at this election, if only because more people are on Twitter, Facebook and other networks compared to 2010. Parties and politicians will look to adopt the tactics above, but with varying degrees of success. Some, such as those that have been engaging with voters for years, will do it well, but expect more gaffes from those that don’t understand the difference between a public tweet and a private direct message and decide to show the world pictures of their underwear…………or worse.

February 18, 2015 Posted by | Marketing, PR, Social Media | , , , , , , , , , , , , , , , , , , , | 1 Comment