2016Makovsky Energy Report

How Americans Make Energy Decisionsand the sources and channels they trust the most

2016 Makovsky Energy Report

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?

53% Societal Impact 38% Personal Impact

29%

58%

27%

42%

26%

Environment

Finances

Health

Personal Health

Future Generations

Societal energy choices are driven by concerns for the

Personal impact energy concerns are motivated by

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%

4%10%

3%

Solar

Natural Gas

Wind

Nuclear

Oil

Coal

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2016 Makovsky Energy Report

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.

1%1%

9%11%

12%

16%

28%

19%

TV newschannels

Online news sources

Newspapers or magazines

Social media

Family, friends or coworkers

Radio Environmental advocacy websites

Corporate websites

Other None of the above

TOTAL RESPONSES Millennials

GenX Baby Boomers

1%2%

9%11%

12%

18%

23%

28%

14%

20%

13%

12%

21%

20%

- Wind

- Solar

- Nuclear

- Coal

- Natural gas

- Oil

*U.S. Energy Information Administration (EIA) Data

Respondent Perceived

1%9%

17%

31%

39%

3%1%

8%

19%

27%

36%

EIA Actual* Respondent Perceived in 5 Years

EIA Forecast in 5 Years*

2%

Where do Americans get 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”

indicated they get information or hear about energy issues more than a few times a week

87% 34% 83%

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Consumers are Actively Seeking Energy Information

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%.

2016 Makovsky Energy Report

Americans Overestimate How Fast Renewables are Coming Online.

Perception vs. Reality in Energy Use 1%1%

9%11%

12%

16%

28%

19%

TV newschannels

Online news sources

Newspapers or magazines

Social media

Family, friends or coworkers

Radio Environmental advocacy websites

Corporate websites

Other None of the above

TOTAL RESPONSES Millennials

GenX Baby Boomers

1%2%

9%11%

12%

18%

23%

28%

14%

20%

13%

12%

21%

20%

- Wind

- Solar

- Nuclear

- Coal

- Natural gas

- Oil

*U.S. Energy Information Administration (EIA) Data

Respondent Perceived

1%9%

17%

31%

39%

3%1%

8%

19%

27%

36%

EIA Actual* Respondent Perceived in 5 Years

EIA Forecast in 5 Years*

2%

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.

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Where do Americans think energy comes from?

2016 Makovsky Energy Report

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 eight-point 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.

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%).

55

What are the most important energy solutions?

75%

Energy Efficient Technologies

62%

Solar

49%

Wind

48%

Natural Gas

2016 Makovsky Energy Report

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?

More frequently

With the right messages

At the right times

On the right platforms

The energy industry needs to communicate...

Survey MethodologyMakovsky’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 - 21%$75K-<$100K - 15%$100K+ - 18%

Millennials - 32%GenX - 27%Baby Boomers - 33%

HS Grad or less - 41%College Incomplete - 27%College Grad - 32%

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Makovsky is among the nation’s leading integrated communications agencies and a four-time 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: 202-587-5634 Email: abeck@makovsky.com

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