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Conservative brands thrive amid polarization

October 18, 2023 Published by

Just In News | The Hill 

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The Big Story 

Political polarization spurs parallel economy

Companies that cater to conservatives are sprouting up as political polarization grows. 

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More than 1 million viewers tuned into the video-sharing platform Rumble, a YouTube alternative popular among conservatives, to watch the second GOP debate last month. 

 

While traditional cable viewers tuned in on Fox Business or Univision, the Republican National Committee used Rumble as its exclusive livestream provider and “online home” for the debate.  

 

The platform, backed by billionaire GOP donor Peter Thiel and Sen. J.D. Vance (R-Ohio), is also home to podcasts hosted by conservative firebrands Steve Bannon and Donald Trump Jr., and has cut deals with former President Trump’s social media company, Truth Social. 

 

During debate night commercial breaks, Rumble carried advertisements for sponsors including Black Rifle Coffee and Birch Gold Group that cater to conservative consumers. 

 

Some say the growing numbers suggest a “parallel economy” is emerging. 

 

“As more and more competition comes in and gets fiercer and fiercer in this world where [we have] what we as marketers refer to as the attentional deficit economy, it’s hard to stand out,” said Americus Reed, a marketing professor at the University of Pennsylvania Wharton School. 

 

“One way brands, products, services, organizations now stand out is to build a little bit of this ideological DNA into their argument for why you should become one of their customers,” he added. 

 

Political identity is also increasingly driving consumers’ choices amid political polarization, said Nailya Ordabayeva, a business administration professor at Dartmouth College’s Tuck School of Business. 

 

Companies’ efforts to tap into these political identities are not unique to the right, Ordabayeva added.

 

For example, Starbucks promised to hire 10,000 refugees over five years in 2017 in response to then-President Trump’s so-called “Muslim ban.” 

 

“As long as the political discourse continues to be divided, it might seem like an appealing strategy,” Ordabayeva said. “But it is fraught with risks of its own. And so, brands have to be really careful when they choose that as their main value proposition.” 

 

The Hill’s Julia Shapero has more here. 

 

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

 

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Essential Reads 

Key business and economic news with implications this week and beyond:

 

There was a historic surge in Americans’ net worth from 2019 to 2022, new Federal Reserve data released Wednesday reveals.


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A bipartisan group of lawmakers demanded answers from the Biden administration Tuesday about the role cryptocurrency played in financing the Palestinian militant group Hamas’s surprise attacks on Israel earlier this month.


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X, the social media platform formerly known as Twitter, announced it is testing a new program under which new users will be charged a $1 annual fee in an effort to fight spam and fake accounts on the website. 


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Lobbying Line 

The latest moves in some of Washington’s biggest lobbying battles:

The government affairs shop KDCR Partners will add Leslie Zelenko, who most recently served as the deputy assistant secretary for legislation at the Department of Health and Human Services, as a principal. Zelenko previously spent more than a decade in the U.S. House, including as legislative director for Rep. Mark Pocan (D-Wis.). The Hill’s Taylor Giorno has more here. 
 

The Ticker 

Upcoming news themes and events we’re watching:

The National Association of Realtors will release existing home sales for September on Thursday at 10 a.m. ET. 
The Federal Reserve Board announced it will hold an open meeting to discuss proposed revisions to the debit card “swipe fee” cap next Wednesday at 1 p.m. ET. 
 

In Other News 

Branch out with more stories from the day:

LOS ANGELES (AP) — Tesla’s net income slumped in the third quarter versus a year earlier, as …


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Good to Know 

Business and economic news we’ve flagged from other outlets:

The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar (CNBC) 
Wall Street warns of ‘Black Monday’ repeat just in time for 36th anniversary (MarketWatch) 
It’s Getting Too Expensive to Have Fun (WSJ) 
 

What Others are Reading 

Top stories on The Hill right now:

Fifteen days after Kevin McCarthy was removed as House Speaker, the chamber remains at a standstill and will not hold another vote to find a leader on Wednesday, a source familiar with the situation told The Hill. Read more

A New York judge asked former President Trump to pipe down after he grew animated while a witness testified against him in his civil fraud trial. Read more

 

What People Think 

Opinions related to business and economic issues submitted to The Hill:

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You’re all caught up. See you tomorrow! 

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Taylor Giorno