••• health care research
Medicare, Medicaid valued but future uncertain
Health care pros, patients weigh in
Eighty percent of health care professionals and 70 percent of consumers are concerned about the sustainability and affordability of government-funded health care, yet more than two-thirds of both groups don’t feel that they have the ability to preserve it for future generations, according to research conducted by Omaha, Neb.-based StrategicHealthSolutions and research firm W5, Durham, N.C.
The survey, conducted during the height of the health care debate last summer, aimed to understand how industry professionals – doctors, nurses, nurse practitioners and physician assistants – and their patients feel about the state of government-funded health care in America, specifically Medicare and Medicaid. More than 80 percent of respondents said federal and state elected officials hold the greatest responsibility for preserving the health care safety net and nearly 70 percent of consumers and health care professionals agreed that access to affordable health care for all Americans is a right, not a privilege.
Comparatively, more than half of both groups said they felt a personal responsibility to act to preserve these programs. “What we’re seeing is that consumers and health care professionals in general feel disenfranchised by the health care debate in Congress,” says Peg Stessman, CEO of StrategicHealthSolutions. “Individual responses from the research showed that many feel their representatives simply aren’t listening to them. This signals, to me, that we need to move past ‘what can Congress do’ and start focusing on where we can all make a difference.”
The research also addressed specific issues impacting the sustainability of Medicare and Medicaid, such as shifting costs from the government to individuals – a concern for nearly 70 percent of consumers and professionals. Both groups showed willingness to change specific behaviors that would curb rising Medicare and Medicaid costs and extend the lifespan of these programs. Health care professionals were willing to encourage their patients to participate in wellness programs (83 percent) and to complete educational activities for themselves and their staff (66 percent) to help keep costs of Medicare and Medicaid down. Consumers said they would be “willing to comply with doctor’s orders” to prevent exacerbations of current health conditions (72 percent), use tools to calculate costs (63 percent) and participate in wellness programs to more proactively manage their health (63 percent).
“While this data is encouraging, consumers and health care professionals are still skeptical that they can impact the lifespan of Medicare and Medicaid,” says Stessman. “The gap between feeling a responsibility to change health care and their ability to do so is an area we need to address, regardless of what Congress does or doesn’t do. We all need to check our health care habits and start getting serious about what we can do to preserve these programs for future generations.”
••• shopper insights
Supporting those who support them
Military veterans like U.S. brands
Military veterans are confident in their brand choices and place a great deal of importance on brands they feel support them and their country, according to a study conducted by military media brand We Are The Mighty and research firm Maru/Matchbox.
Over 1,700 active and retired military servicemen and women were surveyed on attitudes, behaviors and brand use across numerous categories. In addition, 1,500 non-military individuals were interviewed using the same methodology for comparison to census.
Sixty-six percent of servicepeople surveyed agree that they are “more likely to buy brands that are made in the U.S.” (versus 49 percent for civilians). Sixty-one percent say that “buying American products is important to me” (versus 44 percent for non-military). More than half (57 percent) of current and former servicemen and women “seek out brands that support the troops or are militarily friendly” (versus 16 percent civilians). Seventy percent (significantly above the 29 percent of civilians) are “more likely to buy brands that support U.S. veterans.” Sixty-one percent say that “quality [of a product] is more important than price” (versus 54 percent non-military). Thirty-eight percent are “willing to pay more for a product that supports the causes I care about” (versus 33 percent non-military).
Military members and their families engage in both online and in-store shopping. Expect to find military members and their families shopping in superstores like Target and Walmart (80 percent), drug stores like CVS and Walgreens (57 percent) and sporting goods stores like Dick’s and REI (47 percent versus 25 percent of non-military) but also online on Amazon (75 percent).
Active-wear is also a significant purchase category, with 29 percent making a purchase online (versus 26 percent non-military) and 55 percent in-store (versus 45 percent).
The military is the gaming industry’s best consumer: 73 percent own a gaming console, well above the 54 percent of the non-military. Thirty percent plan to purchase a new gaming console in the next year, nearly double the 17 percent of non-military. And they are gaming on all devices: 66 percent play games at least once a week on a smartphone (versus 50 percent of non-military), 44 percent on a play games on a computer and 32 percent play games on a tablet and 17 percent use a handheld gaming device such as a Nintendo 3Ds.
Those who purchased games spent an average of $114 in the past year on console games (versus $104 for non-military), $75 for computer games ($66 for non-military) and $49 on gaming apps ($43 for non-military).
Service members are also embracing subscription-based music and video. Active and veteran members who engage in each media spend an average of 6.5 hours listening to satellite radio (versus 4.7 for non-military gen-pop), 7.6 hours streaming music from free sites or apps (versus 6.5) and 10 hours streaming music from paid streaming sites (versus 7.6).
They are also more likely to subscribe to pay services such as Sirius XM (19 percent vs. 13 percent), Spotify (paid) (17 percent vs. 11 percent), Amazon Music Unlimited (13 percent vs. 9 percent), Apple Music (paid) (12 percent vs. 7 percent) and Pandora (paid) (9 percent vs. 6 percent).
They spend an average of 9.8 hours a week streaming from sites like Netflix and Hulu (versus 9.0 non-military). They are more likely to subscribe to Netflix (72 percent vs. 57 percent), Amazon Prime Video (45 percent vs. 36 percent) and Hulu (29 percent vs. 21 percent) than gen-pop. Sixty-six percent watch movies on streaming subscription services like Netflix at least once a week (versus 48 percent of non-military). Military families are also more likely to go over-the-top with subscriptions to stand-alone TV services like HBO Now and CBS All Access (12 percent vs. 5 percent).
Technology brands also connect with those who serve. Nearly half of active and retired military personnel (45 percent) say they “like to stay up to date on the latest technology trends and products” (versus 40 percent of non-military). They are more likely than the general population to own a tablet (63 percent vs. 59 percent), a smart TV (53 percent vs. 44 percent), a device for streaming to TV (40 percent vs. 34 percent), an e-reader (33 percent vs. 24 percent), a wearable device like an Apple Watch or Fitbit (32 percent vs. 24 percent) and a connected-home device like an Amazon Echo or Google Home (17 percent vs. 14 percent). Besides owning these devices, they are also in the market to buy them, with 38 percent looking to purchase a new mobile device and 31 percent looking to purchase a new TV in the next year.
••• technology research
Thermostats, yes. Diagnoses, no.
Canadians generally comfortable with AI
Canadians report that they are comfortable using AI technology in areas like controlling their house temperature but less so in areas that affect their personal lives. These findings are from the annual Canadian Artificial Intelligence Tracker, which was conducted by the Research and Analytics Services team of Toronto-based research firm Sklar Wilton & Associates.
While Canadians are comfortable using artificial intelligence to control their house temperature (73 percent), utilities and appliances (59 percent), scheduling and appointments (70 percent) and shopping/eating recommendations (59 percent), they aren’t so open when it comes to areas directly affecting their well-being. Less than half of Canadians are comfortable with AI diagnosing their medical conditions without doctor involvement (43 percent) and even fewer are comfortable with AI driving vehicles without human involvement (39 percent).
While comfort levels vary among different areas of work and home life, adoption of AI at a personal level is still in its infancy. Just 12 percent report that they already use AI technologies in their personal life and a similar number (11 percent) say that they use them at work. Trust is also precarious and rests highly on transparency from companies – more than three-quarters (78 percent) of Canadians say they require to know whether they are talking to a human being or a chatbot. Many consumers feel suspicious towards the companies that implement them, with 41 percent stating that companies using AI are focused on reducing their costs at the expense of people.
What does this mean for marketing and business? Most businesses are gearing up to adopt and develop AI strategies into their products and services. However, if they want to be successful, they must put the consumer dimension at the forefront of their AI strategy. They will need to:
Foster consumer-driven innovation: Shape the end-user experience in a positive way by satisfying specific needs rather than simply using AI for upselling.
Establish high ethical standards: Personalize content so it’s useful for consumers and not simply a manipulation of human psychology. Rather than using AI technologies to maximize short-term gains leading to increased customer attrition, create AI technologies that help to build trust and foster long-term customer satisfaction and engagement.
Be transparent and honest in communications: Be prepared to raise business standards and increase transparency around how AI technologies are used. Take advantage of AI capabilities to dramatically improve customer service and engagement.
The full report is available at https://goo.gl/akPDHn.
The Canadian Artificial Intelligence Tracker was conducted by Sklar Wilton & Associates among Canadians 18+ with data collected from July 31 to August 7, 2017. Participants were selected from among those who have volunteered to participate in online surveys. The data were weighted to reflect the demographic composition of adult Canadians. Estimates of sampling error cannot be calculated. All sample surveys are subject to error, including, but not limited to sampling error, coverage error and measurement error.
••• advertising research
Top-scoring ads show power of emotion
Digital over broadcast
Research firm System1 released its most recent FeelMore50 list, an analysis of consumer emotional response to brand advertising. The global survey asked over 55,000 consumers about 700 ads, chosen from a base of industry award-winning or virally-successful TV commercials and digital films.
The list – published online at www.feelmore50.com – shows the diversity of emotional advertising in the digital age. The top 10 emotional commercials cover categories from cars to biscuits to zippers and represent markets around the world.
For the first time, a British ad took the top spot. “Next Stop: Good Mornings,” made by agency Gravity Road for snack brand Belvita, takes its cue from the concept of Blue Monday, the most depressing day of the year. Belvita puts a comedian on a train to entertain its passengers and turns the blues into a great start to the day.
“Belvita is a great example of emotional advertising. It does two things particularly well. It has a terrific emotional idea – beating the blues on Blue Monday – and it has a brilliant central character in George, the comedian guard. It can be tough to make British consumers smile, so for a British ad to get the best results out of any of the 700 we tested is quite an achievement,” says Sarah Patterson, commercial director, System1 Research.
All the ads on the FeelMore50 list scored the highest five-star ranking in System1’s tests, which measure what people feel about an ad and how intensely they feel it. The method is based on studies showing that emotional response is a predictor of long-term profitable growth from an ad.
“Emotional advertising gives you more bang for your buck. We’ve shown that at the same level of investment, a five-star ad delivers three times the long-term share growth of an average, two-star ad,” says Alex Hunt, president, System1 Research.
The top 10 ads are:
Belvita – “Next Stop: Good Mornings” (U.K.) (Gravity Road). Train guard makes people happy.
YKK – “Zipper & Bears” (Japan) (Adk Asatsu DK). Cute bears on child’s top come to life.
Jameson Whiskey - “The Long Lost Barrel” (U.S.) (EVB). Parody of heritage-based whisky ads.
Netto Marken Discount – “Die Oster-Überraschung – #DerWahreOsterhase” (Germany) (Jung von Matt). Animated story of the Easter Bunny.
President’s Choice – “Eat Together” (Canada) (John St.). Guests in hotel eat together in corridor.
Coldwell Banker – “Somebody to Love” (U.S.) (Siltanen & Partners). Sad man adopts sad dog.
Monoprix – “Lait Drole La Vie” (France) (ROSAPARK). Romance communicated via supermarket own-brand labels.
Nespresso – “Coming Home” (U.S.) (McCann New York). George Clooney travels the world in search of Nespresso.
Kia – “Hero’s Journey” (U.S.) (David&Goliath LA). Melissa McCarthy as eco-warrior getting into comical trouble.
McDonald’s – “McLanche Feliz” (Brazil) (DPZ&T). Monster drawn by child brought to life by McDonalds.
The big themes coming out of this FeelMore50 relate to brands dealing with two huge cultural shifts – a shift in media as digital consumption becomes more and more vital and a political shift as consumers reel from an era of shocks and uncertainty.
For the first time, none of the top five FeelMore50 ads were aired on TV. There are still great TV ads being made – and it’s still the single biggest medium for advertising – but emotional advertising and digital fit well together, as the lower media cost and wider storytelling canvas democratize emotional communications. When a brand like Japanese zipper manufacturer YKK can score the second-most emotional ad of the year, you know emotional advertising really is open to anyone.
Advertisers for global brands don’t want to ally themselves with political nationalism but they’re happy to celebrate national traits and stereotypes – as long as it’s done with love and self-knowledge. The FeelMore50 Top 10 includes grumpy Brits, French lovers, footballing Brazilians and hospitable Canadians – all presented by brands leaning in to national traits and scoring emotionally. As for the new age of political conflict, brands are as liberal as ever. But even ads with a heavy dose of brand purpose balance it with laughter, like Kia’s “Hero’s Journey” spot with Melissa McCarthy.