Optimism pays, PHD tells brands

Amid a volatile climate, brands should do their part in cultivating optimistic consumers because optimism pays, a new study from PHD found.

The Omnicom Media Group agency announced a new cultural thought leadership platform, Culture Currents, last week at the PHD Connect event at The Royal Institution. It also unveiled its new research, Is Optimism Dead?.

Currently, the general mood in the UK may feel pessimistic, due to a combination of factors including Covid-19 and Brexit repercussions, the high cost of living, political turmoil in the Middle East and the climate crisis, according to PHD chief strategy officer Eva Grimmett.

People are “cognitively exhausted” not just because of macro issues but also because of everyday stresses, such as health concerns and life admin, Louise Twycross-Lewis, PHD’s head of insight, added.

Moreover, there is a perception that things are getting worse: PHD’s research found that 44% thought the future won’t be better than the past, while 24% disagreed with the suggestion that quality of life is better now than 50 years ago.

Optimistic mindset

However, Is Optimism Dead? found that messages of optimism pay dividends for three key reasons.

First, across every product category, optimismistic individuals are more likely to be in market. As Grimmett explained: “The more optimistic they are, the more likely they are to think about spending money.”

Secondly, optimists are more likely to take risks and much less likely to be cautious. “If you’re a brand and want to convince people to try you, target optimists,” Grimmett added.

Finally, a study from Universiteit van Amsterdam found that if people are in a good mood, they are more likely to notice ads, enjoy them and believe what they say. This leads to greater opportunities for brands.

As part of the research, PHD identified four key strategies for brands to harness optimism to gain a commercial edge over competitors.

1. Feeling good

The first strategy is called “dopamine doses” — if optimists seek everyday reasons to feel good, brands need to find ways to fuel and inform this.

According to PHD’s study, 80% of optimists say they will buy from a company again if it makes them feel good and 73% say they will choose that company over a competitor for that reason.

For brands, this could translate to small rewards for customers and creating moments that lift the mood, such as leaning in to passion points rather than product stories in their content.

2. Looking back

The second strategy is referred to as “nostalgic comforts” — as Twycross-Lewis put it, consumers can look to brands “when they want to be reminded of better times”.

Citing the continual prevalence of nostalgia in pop culture — contemporary examples include Rivals and Stranger Things — as well as a University of Southampton study that found feeling nostalgic can help people increase optimism in the future, Twycross-Lewis highlighted that only 3% of brands are using nostalgia in their campaigns currently.

Ways that brands can leverage this trend include using well-known celebrities to front campaigns and taking a “time machine” approach, such as how Global launched the Heart 80s station and Derry Girls brought back Smash Hits.

Another way for brands to tap into nostalgia is to raid their own archives, such as McDonald’s reintroducing the McRib sandwich and Müller recapturing the 1990s with its Müller Corner campaign.

Linked to this, brands can also utilise user-generated memories — both Cadbury and Volkswagen have featured real-life stories and footage of consumers using their products in recent campaigns.

3. Finding tribes

The third strategy put forward by PHD is “unbound authenticity”, leveraging the notion that optimists like spending time with others and seek their approval. This shows brands the importance of “like-minded tribes”.

One key way to tap into this is to “think niche to go big”, PHD suggested — engaging with a micro community who can then amplify the brand’s message.

For example, Skoda identified a subreddit of super-fans and gave them a chance to test-drive cars ahead of others. Taking feedback and customer reviews from this small-scale campaign, Skoda amplified the message in a wider above-the-line campaign that led to a 255% increase in sales in the model tested.

Another way to wield the power of micro communities is to ensure brands are consistent in their own internal culture and communications, as super-fans tend to consider all aspects of a brand and will actively seek out more information away from marketing campaigns.

Currys leaned in to this in an effective way when it made its shop-floor staff the heroes of its social media content to promote products, such as an American Psycho spoof featuring air fryers.

4. Small acts

PHD labelled the final strategy “sparks of change”, where brands can support optimists in believing in the power of their actions, including “small acts” that play their part in their lives for the better.

For instance, the British Heart Foundation created ads during pause screens on video that encouraged viewers to use that time to undertake CPR training, while Ovo Energy promoted a “greener” way to use energy in OOH ads specifically during off-peak energy times to remind passers-by.

Brands have a myriad of ways to harness optimism to their advantage. As Grimmett reminded the audience of advertisers, these findings go “way beyond media — it’s about product, it’s about messaging, it’s about content”.