Understanding the Real America: What Brands Need to know Moving Forward
The recent election results may have surprised many people, but the signs were there if you knew where to look. Our research from June 2024 uncovered key insights that help explain what many missed: Americans are changing the way they think, behave, and shop, and these shifts are deeply linked to their political beliefs.
For brands and agencies, this is a big moment that will change how consumers think, feel, and spend. With political tensions high, brands need to to be careful—avoiding alienating core consumers while also finding key opportunities.
So, how can brands effectively connect with audiences in such a politically charged time?
The Role of Consumer Insights Amid Polarization
Consumer motivations are always changing, but election years add a unique layer of unpredictability. Right now, America is very divided—and it's affecting how people shop.
Recent Lab42 research found that 70% of consumers are influenced by a brand's stance on social or political issues, and that influence is at an all-time high in 2024. The country is split almost evenly: 30% identify as Liberal, 30% as Conservative, and 40% as Moderate. This polarization is driving shifts in brand loyalty and purchasing habits.
In fact, 55% of consumers say they’re likely to switch brands if they disagree with how the brand handles key cultural moments.
Brands can’t afford to ignore these trends—they need to understand their audience and adapt their messaging to fit.
The Consumer Shift
Our research highlights several key insights that brands need to understand:
Conservative Consumer Impact: Conservative consumers have the strongest reactions to brand stances. Among Very Conservative consumers, 50% have stopped buying from brands that took positions they disliked, compared to just 21% of Moderates.
The Moderate Majority: Moderates make up 40% of consumers, and they’re growing wary of brand activism. Only 42% support brands taking political stances, while 79% of Very Liberal consumers are in favor.
Shifting Brand Perceptions: Over the past five years, 47% of Conservative consumers believe brands have become "more political," and 42% see them as "more culturally liberal." These perceptions directly influence purchasing decisions.
For brands, understanding these differences is crucial. Messaging should align not only with core values but also with the preferences of diverse consumer segments.
The Business Impact
Craig Elimeliah, Chief Creative Officer at Code and Theory, says that brands need to better understand America’s complexities. As quoted in Adweek, he advocates for "a more sophisticated, empathetic approach to storytelling — one that acknowledges the spectrum of beliefs in America, without alienating any specific audience."
The financial risks of ignoring these shifts are real:
40% of consumers stop buying from brands that take opposing positions.
25% actively boycott brands whose stances they oppose.
"Hot Button" brands (those taking strong stances) experience a net usage loss of -0.34%, while "Apple Pie" brands (neutral brands) show a net gain of +1.39%.
Strategic Implications
Scott Goodson, founder and CEO of Strawberry Frog, warns against misinterpreting current trends as a license to abandon purposeful initiatives. However, he predicts that as government involvement in social areas potentially decreases, agencies will need to fill this gap with more purposeful work.
Our research suggests a balanced approach may work best:
Universal Connectors: Activities like charitable giving and volunteering enjoy support across all consumer segments, with positive favorability scores regardless of political ideology.
Risk Zones: Political contributions and religious discussions have negative impacts across segments, with net favorability scores below -20% across the board.
Safe Engagement Areas: Focus on product quality, customer service, and community involvement to resonate with consumers without triggering backlash.
Looking Forward
Brands need to understand how people’s attitudes and behaviors are changing in these divided times. By staying aware of what people care about, avoiding divisive topics, and focusing on positive actions like charity, brands can build trust and loyalty without pushing people away.
The key to success in 2024 and beyond lies in understanding and respecting America's complexity. As Alison Pepper, Executive Vice President of Government Relations and Sustainability at the 4A's, notes, "The advertising industry will need to work harder than ever to understand their consumer."
These times are tricky, but with the right insights, brands can make smart choices that connect with all kinds of people.
