July 2011: View James Torr’s presentation at our recent Breakfast Seminar focused on the Business Elite, looking at the evolution of this hard to reach group since the first BE:Europe survey in 1973.
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Breakfast SeminarUnderstanding the Business Elite
14th July 2011
IntroductionLiz Landy, MD - Ipsos MediaCT
1973 – 2011The Evolution of the Business Elite James Torr, Director - Ipsos MediaCT
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Good morning everyone, just before we kick off this presentation it’s worth noting the data used is from the Business Elite surveys and the BE:Barometer, our Global recontact study.
1973
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Why 1973… Well this is when the first European Business Elite survey was released. This year, 38 years later, we will release the 20th BE:Europe survey. To mark this occasion this morning, I’m going to look back over the intervening years to see what has happened. First though lets just remind ourselves of what was going on in 1973.
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Hands up if you know who this person is… Nobody I see… Yet all of you probably have in your hand or your pocket something he introduced to the world in 1973. That was the year when Martin Cooper placed the first public telephone call on a portable cellular phone. This created a fundamental market shift in technology and communications towards the individual and away from the place.
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So since 1973 the mobile phone has now become ubiquitous. However, industrial relations don’t seem to have improved much in Britain.
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And the Greeks are still unhappy…
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Looking at travel, the first trans-Atlantic Concorde flight took place in 3 hours and 32 minutes. In 2011 I think the quickest commercial flight available is around 5 hours. So, while technology has made the world smaller the Business Elite still can’t get across the Atlantic as quickly as they could in 1973.
“Plus ca change, plus c’est la même chose”
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Now, a little more about the survey. In 1973 the Business Elite Europe survey was being run by Research Services Limited. In 1991 Ipsos acquired RSL so the surveys now fall under Ipsos MORI. We’re a French company so I thought it would be only fitting to draw on a French saying… (CLICK) ‘Plus ça change, plus c'est la même chose’. The literal translation of this is ‘the more things change, the more they stay the same’. So, while many things have changed, some have remained the same…
They lead the largest companies
Most influential
Wealthiest
Technologically savvy
Big
con
sum
ers
of m
edia
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One key thing that has not changed is that the Business Elite, the leaders of our industries, are as important now as they were 38 years ago. (CLICK) They are the people who lead the largest companies in the world. They are the most influential and wealthiest, while remaining technologically savvy and continuing to consume large amounts of media. So in terms of the business elite surveys what has and hasn’t changed?
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While of course the look of the report and how data is accessed is very different today, what hasn’t changed is the fact that we continue to reach the most senior people in the largest companies. As I’m sure many of you are aware it’s difficult enough to get a meeting with these people. However, we’ve had them complete 148,000 questionnaires since the first Business Elite survey in 1973. In 2008 the survey’s name was changed from the European Businessman Readership Survey to Business Elite Europe, BE:Europe. This recognized the change in questionnaire content to multi media measurement and the presence of women among the business elite.
The surveys have global reach
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It’s not just Europe anymore either. Europe is now part of the Global Business Elite series. Over the past 38 years we have run surveys in 42 countries. It’s our aim to increase both the reach of these surveys globally, and their harmonisation with one another. So that’s what has happened with the survey. The rest of the presentation will focus on what has and hasn’t changed in the business elite’s world, looking at: the impact of technology how their companies behave in light of increased scrutiny from the public eye the effect of the Global shift in power to the BRIC countries and their investing and spending habits
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Technology has been around ever since primitive man first sharpened a stick to use as a spear. What has changed is the speed at which technology now evolves and is being adopted. What hasn’t changed is that the Business Elite are always ahead of the curve when it comes to technological developments. We’ve lost our copy of the stone age report, but I’m pretty sure it would have been the business elite who had the longest and sharpest spears!!! And more recently this is still the case…
1986 1993 1996 2000 2011
31% had amicrocomputerfor their ownpersonal use
33% had car/portable cell phone
37%use email
51% have laptop/notebook
29% use a tablet computer
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In 1993 the Business Elite were over 17 times more likely, compared to the average population, to have a portable cell phone. Now, in 2011, almost a third have a tablet. The Ipsos tech Tracker puts the comparative figure in the UK population at around 5%. So, how has technology impacted the way they consume media and the businesses they control?
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The Business Elite have always been big consumers of information. What has changed is the growth and availability of information. The long tail of media content is becoming much more pronounced. At the same time, developments in technology, such as RSS feeds, smart phones and tablet computers, are allowing them to: pool relevant and quality information from numerous sources and keep up to date while on the move It’s all about the Business Elite having more control, allowing them to process the information they need, as quickly as possible. Changes in technology since 1973 are allowing the business elite to do this. This is something that Justin will come back to in the next presentation.
60
70
80
90
100
2008 2009 2010
%
Media consumption is increasing
Source: BE:Europe 2008, 2009 and 2010; Measurements: AIR print, daily TV and monthly web
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However, while they are utilising technology to consume more information what hasn’t changed is their consumption of traditional media. They continue to read newspapers and magazines and watch TV.
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Looking at their businesses, technological changes have had a profound effect on how they operate. The Business Elite have experienced these changes first hand. They are the people who implement infrastructure changes allowing corporations to profit from technology. With information travelling faster and faster and more reliably than ever, barriers of distance are disappearing. The Business Elite are outsourcing more work around the world helping them remain profitable. The internet allows the Business Elite, via email, tablets and smartphones, to always be connected. Conducting business from anywhere in the world in 1973 was not easy. In 2011 it is.
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Since 1973 the change in how information can now be accessed allows the public to easily monitor corporate activities. Just looking back at the BP oil disaster last year, there was public out cry when it emerged that Tony Hayward, the BP CEO, was out racing his yacht around the Isle of Wight, while at the same time people were seeing the devastating effects of the oil spill. Thinking back to 1973, who would have known, apart from his family or secretary where he was. And who would have even thought to ask.
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Maintaining consumer confidence and (CLICK) being viewed in the right way is vital to companies of today. Over the last two years there’s a 14% increase in the number of Business Elite that that say loss of consumer confidence is one of the biggest three challenges facing their company today.
95%
agree companies should pay more attention to the environment
think it’s important that their company is being responsible to society and environment
93%
Source: BE:Barometer 2010
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Corporate social responsibility has thus become a key focus for the Business Elite. 95% of the Global Business Elite think it’s important their company is being responsible to society and environment However, when asked about the three biggest challenges facing their company only 7% thought climate change and sustainability was one. Based around this we could ask ourselves whether CSR has really transformed how they do business or is it just a way of engaging potential customers.
5.8%
8.9%
2002
2010
8.5%
13.3%
2002
2010
3.4%
6.1%
2002
2010
Between 2002 and 2010 the number flying on business to…
Growth in new economies
53%
56%
79%
Source: BE:Europe 2002 and 2010 only data; where flown to on business
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Looking at the business elite’s flying habits what hasn’t changed since 1973 is that a large proportion of the business elite continue to fly frequently in first and business class. This audience continues to be vital to the profitability of most major airlines. What has changed is where they fly on business. This directly correlates with the shift in economic power to the BRIC economies.
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And half of the Global business elite view China as leading the world economy, a view I’m sure would have been very different in 1973, when it was in the midst of its cultural revolution.
77%
29%
11%
83%
38%
17%
71%
44%
25%
Volatile markets / managing economic uncertaintly
Attracting and keeping top talent
Technical advances
2009 2010 2011
Challenges facing companies
Source: BE:Barometer 2011
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By some, the recession we’re still struggling to emerge from, has been described as the worst since world war two. The Business Elite were affected by this in both their business and personal lives. Their corporate focus changed to managing economic uncertainty, and while this remains a key priority, only now are we starting to see a return to business fundamentals such as attracting and retaining talent, technical advancement and innovation.
€700,000
€750,000
€800,000
€850,000
€900,000
€950,000
€1,000,000
2008 2009 2010
€140,000
€150,000
€160,000
€170,000
€180,000
2008 2009 2010
Change in wealth
AverageNet worth
AverageIncome
Source: BE:Europe2008, 2009, 2010 only data
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They personally felt the hit of the recession. The value of their net worth and salaries changed.
25.1%
17.6%
29.7% 31.2%29.6%31.5%
Shares in own company Property
2008 2009 2010
They are financially astute
Source: BE:Europe 2008, 2009, 2010 only data
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Two key things didn’t change though. One, their financial astuteness. They made the most of a bad situation. Reduction in salaries was off set by an increase in shares in their companies. Some took advantage of others misfortunes saavily purchasing property at the lowest prices seen in many years.
The richest get richer
Net worth down 33%
>€370,000 <€90,000
Net worth up 22%
Source: BE:Europe 2008 and 2010 only data
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Secondly, they still remain the wealthiest people. And, as always, the upper echelons of the Business Elite – the super rich – continue to increase their wealth. It’s always the most knowledgeable investors who make more money during times of economic down turn, than people do during more upbeat times.
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Because the Business Elite still remained wealthy, with high disposable incomes their purchasing power hasn’t been affected. Between 2008 and 2010, the number owning in Europe: A watch worth more than 4,500 euros - UP 25% A holiday/second home – UP 14% Later this morning Simon will also talk about how important they remain for the luxury hotel market.
Key takeaways
§ The Business Elite remain as important as they always have been
§ They lead the world in technology adoption
§ They are not abandoning traditional media
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Presentation Notes
Taking into account their unwavering spending power, networth and budgets they control, the Business Elite remain the most important customers for a number of industries. They continue to be a key audience for b2b marketing and represent the key to profitability for sectors such as finance, luxury goods and cars, airlines and hotels. CLICK In both their business and personal lives the business elite are embracing the digital evolution. It allows them to maintain competitive advantage in the business world and remain informed at all times. CLICK While they are consuming more digital media this is certainly not at the expense of traditional media, where usage remains stable. Lastly, for the latest update on the Business Elite’s interaction with technology in 2011 keep an eye out for video update which we’ll be sending out soon.
The Business Elite: Up Close & PersonalJustin Gibbons, MD - Work with Ipsos
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I’ll now hand over to Justin who’s going to showcase the results of a Business Elite qualitative study.
An ethnographic approach
§ Adds new depth to qual and quant
§Works with ‘hard’ audiences
§Works for media
Elite introductions
§ Lifestage doesn’t just affect normal people
§ Survival of the fittest
§ Pioneers
§ Business men and women are generalists
§ Broad and quick NOT timely and deep
§ Pick n Mix bricoleurs
§ Efficient info surfers
The knowledge economy
§ Financiers are a very distinct group within the business community
§Usage of information is different
§ Feeding vs action
Business = Finance
§ But not everything changes
§ The media eco-system is alive and well
Everything changes
§ Attention is ‘limited’
§ Pre-digested and edited
CEO mentality
§ An increasingly visual age
§ The ergonomics of information
§ Info-tapas
The future
Guest SpeakerSimon Scoot, Vice President Global Brand ManagementInterContinental Hotels and Resorts
Q&AChaired by Martina Lacey, Features Editor - M&M
