WHAT THE DATA SAY: 53% of young people say they are overspending on streaming

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking:

ADVERTISING AND NEWS GOOD FOR BUSINESS AND DEMOCRACY

Americans are smart enough to know the difference between a news story and an ad, and many fears about the “brand safety” of advertising are unwarranted, according to new Stagwell research on the “Future of News.”

• In a study of 50,000 U.S. adults, Stagwell examined the concept of brand safety – the measures taken to ensure a brand’s advertisements do not appear alongside editorial content that could potentially harm that brand’s reputation.
• The data reveal that ads placed adjacent to news topics like politics, inflation and crime perform as effectively as those placed next to business, entertainment and sports stories.
• 25% of Americans today consider themselves “news junkies,” 23% “sports junkies” and 17% “entertainment junkies.”
• Among Gen Z, average purchase intent for brands with ads placed next to high-quality news articles on the Middle East conflict was 65%, compared with 66% for inflation and 67% for crime – differences that are statistically insignificant.
• Purchase intent was 69% for sports – widely considered a “safe” news topic – illustrating a minimal 4 percentage point difference between the “riskiest” and “safest” topics.
• Among affluent Americans, average favorability for brands with ads placed next to high-quality, yet political news articles on former President Trump and President Biden were each 72% – just 2 percentage points less than brands with ads were placed next to a non-political entertainment story.
• Recognizing that news is the foundation of a thriving democracy and a critical communications and marketing vehicle, Stagwell also is launching a series of Future of News studies and events to fuel discussions on the importance of advertising for a thriving news industry.
• To get a copy of the research, visit the Stagwell Future of News webpage. 

SOUTHERNERS DON’T SPLURGE ON STREAMING

If you live in the south or are Gen X or a Boomer, you likely spend the least on streaming each month, based on our Harris Poll study with Tubi.

• Residents in the country’s 16 states across the South are saving $111 annually compared with people in the Northeast, who spend the most at nearly $685 per year, or $57 a month.
• 53% of Gen Z and Millennials believe they are overspending on streaming services each month.
• Gen Z and Millennials spend $57 a month on average on streaming.
• That is higher than the $45 Gen X and Boomers spend on streaming.
• 27% of Gen Z and Millennials say they use more streaming services now than they plan to use in the future.
• 58% of consumers would rather have a free streaming account that is theirs than have a paid subscription they have to share with others.

BUY NOW PAY LATER CREATING PHANTOM DEBT ISSUE

“Buy now, pay later” (BNPL) is increasingly popular, yet it’s also racking up “phantom debt” that is difficult to track, according to new Harris Poll research with Bloomberg.

• Americans saving for college think it will cost more than $77,000 – a debt they don’t expect to pay off until age 45.
• 54% of BNPL users say it allows them to purchase more than they can afford.
• 24% say their BNPL spending is “out of control.”
• 43% of BNPL users who owe money said they were behind on payments, and 28% said they were delinquent on other debt because of spending on the platforms.
• 48% say they have started or have considered using BNPL to pay bills or buy essential items, including gas and groceries

CHILD CARE REMAINS KEY STRESSOR FOR PARENTS

Parental burnout is rising due to worries about access to child care, according to our latest Harris Poll Parent Confidence Index with KinderCare.

• 71% of parents say they constantly are thinking about childcare issues, a 7 point increase from 2023.
• 50% say providing childcare coverage causes substantial stress.
• 61% want their employer to implement flexible start and end times – to make child care easier.
• 64% think their employer should offset the cost of childcare.
• 88% believe access to consistent, high-quality childcare would improve their mental health.
• See also: Mothers cannot work without child care, so why aren’t more companies helping?

2024 CORPORATE REPUTATION RANKINGS

Stagwell’s Harris Poll and Axios will release the 2024 annual corporate reputation rankings next week.

• We are hosting an in-person working lunch for business leaders at Stagwell’s offices in New York City beginning at noon ET Wednesday, May 22.
• Joined by leaders from Stagwell and The Harris Poll, we will discuss what the latest reputation results mean for business, communications and marketing.
• Those who attend will receive detailed reputation insights, including specific data across industries and companies.
• If you would like an invitation to attend, please e-mail Alexis.Williams@stagwellglobal.com.

ICYMI

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

• New study reveals that Gen Z believes most in dealer relevance and online vehicle buying processes
• Harris Poll shows slight uptick in those who plan to buy houses
• Swing state voters on the crypto biz
• The $3bn question: What brands can learn from political campaign