Another golden summer

Summer 2012 will be remembered for the Olympics and Paralympics. The recent Anniversary Games and media coverage of London 2012 rekindled the excitement and spirit that Team GB generated and which some 70% of the public felt had brought the country closer together.
A year ago Team GB had a golden summer winning 63 Olympic and Paralympic Gold medals with Brand Britannia dominating the media airwaves.

There has been no once-in-a-lifetime major event in summer 2013 but more a series of equally rare occasions to party. Sporting triumphs have continued at Wimbledon, in the US Open Golf, at The Tour de France and in regaining the Ashes. As well as sport, and the celebrations marking the birth of Royal Baby George, July 2013 will be remembered for being hot and sunny - the third warmest July on record behind 2006 and 1983 boosting retail sales.

Economic growth?

It will also be remembered as the month that the UK really seemed headed on the road to economic recovery.

UK consumer confidence jumped to its highest since April 2010 (-16), co-incidentally the month before the last general election. In July 2010 the country started its long journey to restore public finances. Three years later, things may be really improving. First estimate of Q2 GDP growth was announced at 0.6%, double the level in Q1 and already GDP growth estimates are being revised higher. The August Bank of England Inflation Report news conference under new Governor Mark Carney was the most upbeat on growth for many quarters. Since May 2010 confidence fell to a low of -33 in December 2011. Despite the Olympics boost confidence remained at recession levels of -29 during July and August. Only in November did an Olympics bounce occur with an 8- point surge to -22 following the announcement of a Games-fuelled jump in GDP taking the economy out of what was then a double-dip recession.

The November bounce in confidence was short-lived, falling back to -29 in December. Household finances came under growing pressure from rising inflation and little income growth. This pattern has continued for the first half of 2013. The JGFR Financial Wellbeing Index covering personal finances, spending and saving confidence stood at -85 in July 2013, dropping to a low of -103 in October and has averaged -70 in the first 6 months of 2013. In July the Index soared 22 points to -42, its best score since December 2010, still 51 points lower than its long-run average. In this first beyond London 2102 summer an emerging question is: what role does sport play on the nation’s psyche? Media coverage this past month would suggest substantial with considerable focus on the anniversary of the Games and the legacy. Research commissioned by JGFR last September from GfK found that just over two-thirds of the public believed that the Games showed what a role that sport can play in changing lives.

Inspiring participation

Lord Coe promised that the Olympics would inspire the nation – and by such inspiration to change behaviour. In the year since the Games the mood of the public to sport remains very positive. The success of the Anniversary Games reflected this on-going sporting legacy. Increasing sports participation and activity, rising economic benefits and greater volunteering are among the key legacy indicators.

Regular JGFR/GfK survey data shows the majority of the public pre-the Games (63%), immediately following the Games (67%) and this June (61%) believes that the London Olympics /Paralympics will boost sports participation. A similar majority expect there to be a sporting legacy -57% -66%-57%. Nudging people into activity has been a seeming success of the Games. Immediately following the Olympics / Paralympics 37% of adults were inspired to take up an activity. While the proportion of positive responses has fallen back to 24% in the June 2013 survey, this represents some 13 million adults. Greater adult activity may have a secondary impact on the activity and shape of the nation’s children as parents change lifestyle behaviour. The JGFR / GfK June 2013 research also found over 7 out of 10 adults believe that the government / NHS should use the Games to promote healthy lifestyles.

More people believe that the London Olympics/Paralympics have brought economic benefits to the UK – 47% compared to 29% across the surveys before the Games, and 39% last September. Such an increase in the public perception of the Games economic success suggest that sport has a key role to play in the coming years in helping to boost UK plc. A recent study by Grant Thornton suggested that the Olympics boost to the country could be between £28 billion - £41 billion by 2020.

Volunteers

Ask people about their Games experience and the role played by the 70,000 Games makers will be near the top of their memories. The inspiration of this army of volunteers has had a notable impact on the public. While the number of people intending to volunteer in sporting or community activity has fallen since the end of the Olympics, down from 16% to 8%, and a survey average of 10% pre-the Olympics, the numbers involved are still considerable – some 4 million. With great emphasis on mobilising sport in communities the high level of volunteer intentions suggests that grassroots sport should be a big beneficiary.

Funding will be a major issue to help support volunteers with company CSR budgets having a major role to play. A majority of the public (57% v 61%, September 2012) believe that for the legacy to succeed corporate sponsors need to understand more the role that sport plays in the lives of their customers, employees and communities. A number of sponsors are well ahead in such thinking but to ensure the sporting legacy continues there is considerable more that needs to be done – with social media an obvious channel of communication, especially with engaging young people.

Sports charities play a growing role in helping to change young peoples’ lives. In the latest research 45% of the public would support a charity that makes a difference to young peoples’ lives through sport, little changed on last September and before the Games. To get a feel for the work of this expanding sector- with Premiership Soccer and Rugby teams to the fore- a visit to the Beyond Sport website is recommended.

Elite sport has increasing numbers of followers – both attending live events and on television. For brands across a range of industries top-class sport provides considerable promotional opportunities that have increased following London 2012. The Olympics/Paralympics boosted the number of people following sport. Last September 31% of the public expected to watch more sport as a result of the Games; in the latest survey the proportion of people who said they watched / followed sport as a result of the Games was lower -18% - but still a significant rise (some 9 million adults)  as a direct result of the Games. Such an increase in viewing figures helps support the case for more investment by sponsors in sport and may benefit a broader range of sports.

This summer is certainly one to last in the memory – with sport and increased activity a central theme to the well-being of the country. This seems to be the good coming out of London 2012.

Read more from John Gilbert.