This week’s update comes from Shannon Lancaster, research analyst for Ravenscroft, who is based in our Guernsey office.
As the second quarter draws to a close, this week we can expect the last trickle of earnings to come through and the very eagerly anticipated nonfarm payroll report for June (nonfarm being a compiled name for goods, construction and manufacturing companies in the US. It does not include farm workers, private household employees, or non-profit organisation employees). This year has been dominated by economically sensitive cyclical stocks and while we don’t think their full potential is exhausted, we have been pleased to see quality recover over the past month. As a result of the rapid roll out of vaccines in some parts of the world, and substantial fiscal stimulus, we are optimistic about the outlook for the rest of the year.
Moving away from the markets and onto our screens, we are spoilt for choice this week in terms of viewing options.
The Euros continue as the remaining teams battle it out to join Czech Republic, Denmark, Belgium and Italy in the quarter finals of the competition. If football doesn’t take your fancy, the influencer factory Love Island returns to our screens for its seventh season in the UK. For those of you who aren’t familiar with the biggest dating show since Cilla Black gave us a "lorra lorra laughs" in Blind Date, Love Island brings a group of singles to a villa in Majorca with the aim of coupling up and winning a cash prize. Whether you have tonight marked in your calendar, are an anonymous watcher or you are an outright despiser of the show, what cannot be denied is the impact reality shows like this have on the advertising playing field.
In an age where television struggles to pull in as many viewers as video streaming platforms like Amazon Prime and Netflix, ITV’s Love Island attracts millions of devoted eyeballs for weeks over the summer. As soon as one manicured toe enters the villa, islanders become household names and are ‘verified’ on Instagram, with thousands of new followers on social media. Even while the stars are in the villa, family and friends at home run their social media profiles, posting perfectly curated images and organising PR opportunities. Islanders are keen to boost their profile and have their fame continue long after the cameras have stopped rolling, and for many retail brands, reality contestants make perfect collaborators as they are authentic and relatable (read - brand advertising gold). They are inundated with requests for brand collaborations and PR representation, with many going on to become millionaires. A quick search shows that top of the Love Island rich list is Olivia Buckland and Alex Bowen who met on the show back in 2016, got married in 2018 (with a rumoured £25,000 wedding deal with OK magazine) and have made a massive £4.4m since leaving the villa (www.unifresher.co.uk) with numerous paid partnerships.
With around 43% of Love Island viewers aged under 30, the advertising emphasis is on fast fashion, and brands like Boohoo have in the past struck deals with winners of the show to launch collections. The outfits worn on screen are often supplied by Misguided or other fashion brands which provide great social media content for the brands for the weeks during the show and leaves the potential for deals long after the sun has set on the villa.
Unlike many other reality shows, contestants are allowed access to a mobile phone providing the perfect opportunity for Samsung to promote its new model through user-generated content, like selfies and texts, shown on the show and shared on social media.
Even if you aren’t watching it, you will likely be involved in, or overhear, conversations about who is getting mugged off and who is gaslighting who. These ups and downs are all part of the conveyer belt that moulds influencers of tomorrow who become trusted and revered by the public.
While you might think a dating show has nothing to do with modern marketing, it is clear there is a wealth of opportunities for brands to cash in on the newly found fame of contestants and the concentrated eyeballs of Love Island fans and that in turn drives up revenues and shareholder returns. If you are tuning in enjoy, I will be watching the football!!