2016 Makovsky Energy Report. How Americans Make Energy Decisions and the sources and channels they trust the most
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1 2016 Makovsky Energy Report How Americans Make Energy Decisions and the sources and channels they trust the most
2 Executives at energy companies across the spectrum may need to rethink how they are communicating and which channels they are using to reach American consumers, concludes a new national survey conducted by the Energy, Manufacturing & Sustainability Practice of Makovsky, one of the nation s leading integrated communications consultancies. Results from the survey of more than 1,000 consumers offer insights for energy providers into how Americans make energy consumption decisions, which energy industry sectors they trust the most for information, where they get energy news, and where they think energy comes from. How do Americans make energy choices? Societal energy choices are driven by concerns for the 29% 27% 26% Environment Health Future Generations 53% Societal Impact 38% Personal Impact Personal impact energy concerns are motivated by 58% 42% Finances Personal Health Therefore, tailoring marketing approaches and messaging to the concerns of the customer base should positively impact customer relationships. Which Energy Industries are considered most trustworthy for information? This is likely due to the positive media coverage received by the solar and natural gas industries as a cleaner source of energy in addition to fewer industry crises. 37% 29% 17% 10% 4% 3% Solar Natural Gas Wind Oil Nuclear Coal 2
3 Consumers are Actively Seeking Energy Information of respondents profess to be at least somewhat informed about energy sources and the industry overall described themselves as informed or very informed 87% 34% 83% indicated they get information or hear about energy issues more than a few times a week Where do Americans get energy information? 28% 19% 16% 12% TOTAL RESPONSES GenX Millennials Baby Boomers 1 9% 2% TV news channels Online news sources Newspapers or magazines Social media Family, friends or coworkers Radio Environmental advocacy websites Corporate websites Other None of the above TV News Stands Out as the Go-to Energy Information Resource for Most Americans. The wide gap between popular media (TV and online news) and corporate/environmental websites dramatizes the need for energy companies to re-evaluate their website content and user experience as well as the critical need to use video to better educate and influence target audiences. 26% of respondents felt none of the information disseminated from energy industries via digital channels ranging from LinkedIn and Twitter to advertisements and company websites was helpful. 3
4 Perception vs. Reality in Energy Use Where do Americans think energy comes from? - Wind - Solar 2% 9% 17% 9% 1 12% 14% 20% 3% 8% 19% - Nuclear - Coal - Natural gas - Oil 3 39% 18% 23% 28% 13% 12% 2 20% 27% 36% EIA Actual* *U.S. Energy Information Administration (EIA) Data Respondent Perceived Respondent Perceived in 5 Years EIA Forecast in 5 Years* Americans Overestimate How Fast Renewables are Coming Online. While in 2016, solar and wind together will make up just three percent of U.S. energy consumption, according to the U.S. Energy Information Administration (EIA), survey respondents put the figure at 20%. And, although coal, oil and natural gas together comprise 87% of energy used today, survey respondents estimated them at 69% of the mix-underestimating how much these fossil fuels still dominate today s energy mix by about 20%. In five years, survey respondents anticipate that U.S. dependency on oil and natural gas will shift towards solar & wind, and renewables will grow to nearly double the amount of nation s energy than it is today. However, EIA projects that in five years we will consume the same relative of solar and wind as we do today. 4
5 Fossil fuels were perceived to be on a decline to 53% of the mix, but still comprising the primary U.S. energy source. More specifically, Americans viewed the nation s dependency on oil to be in a trend of decline, providing only 20% of our energy needs in five years, an eightpoint drop from current perceptions. Coal is perceived to experience a similar decrease in five years to 12%, a six-point decline from today. Yet, EIA forecasts that oil and coal use will be about the same as they are today. What are the most important energy solutions? 75% 62% 49% 48% Energy Efficient Technologies Solar Wind Natural Gas Energy efficiency technologies are deemed the most important energy solution for the future, according to Millennials, Gen Xers and Baby Boomers. When asked to rate the importance of various energy solutions, consumers rated increased energy efficient technologies that reduce energy consumption the highest among solutions to meet the nation s current and future needs (67%; absolutely essential/very important), followed by solar (62%), wind (49%), and natural gas (48%). 5
6 Conclusion With an audience in search of energy information resources it can trust, energy companies across the power spectrum can benefit from reconsidering their strategies for connecting with their targets. Perceptions are realities and companies need to face and address them. How? The energy industry needs to communicate... More frequently With the right messages At the right times On the right platforms Survey Methodology Makovsky s Energy, Manufacturing and Sustainability practice fielded a national online survey through an ORC omnibus of representative general population of Americans. We found that our 1,103 survey respondents were fairly evenly split across U.S. regions. Demographic Breakdown Male - 48% Female - 52% <$35K - 29% $35-<$50K - 17% $50K-$75K - 2 $75K-<$100K - 15% $100K+ - 18% Millennials - 32% GenX - 27% Baby Boomers - 33% HS Grad or less - 4 College Incomplete - 27% College Grad - 32% 6
7 ABOUT Makovsky Makovsky is among the nation s leading integrated communications agencies and a fourtime consecutive winner of Mid-Sized PR Agency of the Year. As an independent NYC-based agency for 35 years, with an office in Washington, D.C., Makovsky is built on The Power of Specialized Thinking to spark connections and drive change. Sector expertise and a laser focus on client results have led to >95% year-to-year client retention-the ultimate measure of success. With a deep understanding of the energy, sustainability and manufacturing sectors, and today s overall complex and interconnected economy, the Makovsky s Energy, Manufacturing & Sustainability Practice is at the intersection of consumers, businesses, advocacy groups, trade associations, investors, government, and the media. We Are: A team of award-winning communications experts that deliver increased brand and product awareness, open new markets and fuel sales. Experts in brand-affinity building, establishing thought leadership, managing issues and crises, executing integrated digital programs, and securing top tier media coverage. A practice led by the former head of communications for the U.S. Environmental Protection Agency (EPA) and Depart ment of Energy (DOE), and with dedicated senior staff in Washington, D.C. and New York City. To learn more about our survey findings and Makovsky s capabilities, please contact: Andy Beck Executive Vice President of Energy, Manufacturing and Sustainability Phone: abeck@makovsky.com 7
8 Energy Health Technology Digital Consumer Finance 1775 I Street NW, Suite 1150, Washington, DC
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