Rapid responses and targeted messaging: Matthew McGregor. Photo: Micha Theiner/Eyevine
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Labour’s most powerful weapon: its digital campaign

Cooler, younger and tech savvy – meet the team led by Obama’s former digital strategist which Labour hopes will win it the election. 

In the sprawling control room of Labour’s headquarters at One Brewer’s Green, thrumming activity signals the party’s election machine cranking into gear.

The sleek, glass-walled Westminster office – a far cry from the shabby premises in nearby Victoria Street that the party departed two years ago – is branded with flashes of red: the chairs, intrays and mugs all stand out in Labour’s trademark vermillion.

Beyond the fieldworkers manning the phones and the suited apparatchiks handling the finances lies Labour’s most powerful weapon in next year’s election battle – its digital campaign team.

The online campaigners resemble the staff body of a Silicon roundabout tech start-up: a senior female staffer wafts by in harem pants and a slouchy cardy. As Labour MP Michael Dugher, who heads the party’s communications and day-to-day election campaigning, mused: “They look different – a lot cooler than the rest of us. And they’re younger.”

The casually-attired team comprise individuals from a variety of backgrounds: some are long-established Labour campaigners, some rose up through specialist web-based strategy agencies, others hail from NGOs.

The star of the team is Matthew McGregor, the Norfolk-raised digital strategist who rose to prominence as Barack Obama’s online attack dog in the 2012 Presidential race.

Leading the US President’s online “rapid response unit”, the “Backroom Brit”, as he became known, became a darling of the American liberal media and a scourge of the Republican party.

He pioneered real-time defence against the opposition – shooting down Republican claims on social media as soon as they appeared – as well as digital attack tactics.

Even more significant than his contribution to the Twitter propaganda wars was McGregor’s use of digital media to raise funds and recruit volunteers.

Thanks in large part to McGregor’s online strategy, the Democrats raised more than £400m through online donations in 2012, according to Time magazine, and their digital campaign mobilised an army of grass-roots activists. Now Labour chiefs have placed their hope in him to repeat the phenomenon in the UK in the run-up to the general election next May.

Although the party’s finances are strained, and debts loom large, Labour has invested heavily in building its digital strategy and hiring a top team.

It will likely prove a canny decision: although Labour raised more money than the Conservatives last year, the Tories look set to outspend Labour by as much as three times, according to recent press estimates. Labour has calculated, wisely, that online advertising has the potential to reach greater swathes of the population for less money.

Digital content created in-house can be produced by staff or volunteers for nothing, while a single motorway billboard can cost up to £2,500 for three months.

Dugher explained: “Digital is the big leveller. The Tories can get their voter ID by paying private companies to canvass on their behalf. But while they can outspend us, they can’t out-campaign us.”

He elaborated: “We’ll tweet a survey with a ‘donate’ button at the end and people click on it,” said Dugher. He declined to specify how much they have raised via online donations so far, but said: “We’re starting from a low base, but it’s working.”

Small donations made to the party by members was Labour’s largest source of funding in 2013, raising more than £8m; it is likely that the party’s emotive online campaign, and the ease of donating on the web, will lead to even higher revenues from small donations this year.

After the Conservatives’ fundraising gala ball last month, in which £45,000 was paid for a bottle of champagne signed by Margaret Thatcher and a Russian donor controversially bid £160,000 for a tennis match with David Cameron and Boris Johnson, Labour is desperately hoping grassroots donations increase.

McGregor is defensive about repeating for Labour his online fundraising success in America: “No we aren’t the US – we’re not going to raise a billion dollars online, but I don’t think we actually want a billion sloshing around in political campaigns.”  

The party is preparing for their own gala fundraising event on the muggy July afternoon that I visit their headquarters (the star bid at the auction turns out to be £24,000 offered for two football matches with Ed Balls, the Shadow Chancellor). The fundraiser, explains McGregor, is the reason he has thrown on “a suit for the first time in nine months”, a slate two-piece that matches his badger-like hair, adorned with a pink patterned tie.

Eschewing tech jargon, he explains how Labour’s online campaign will reap modest financial dividends. The key is to “connects the dots” for supporters – that is, provide past and potential donors a concrete example of how funds have been used previously, in order to nudge them to donate again to secure a Labour win in 2015.

A recent Labour video thanks the party’s 18,000 donors for their financial support, which funded the recruitment of 100 regional organisers. The clip introduces Maddy, a wholesome, beaming Labour organiser in Cambridge, whose hard work swept the city’s council to Labour in last May’s local elections, ending 14 years of Lib Dem control. The narrative is upbeat and rousing.

McGregor has a knack for masterminding content that goes viral, such as the deftly-edited clips of Mitt Romney slip-ups that he created in 2012. The emphasis is on innovation, and he has his team on the lookout for fresh formats in online political campaigns the world over, including in the US, Canada, France, Scandinavia and Australia.

Not all digital campaign innovations are easily replicable in the UK; parliamentary and legislative systems lend themselves less easily to online campaigning than presidential systems, such as the US and France. It is easier to frame a single narrative around a handful of personalities vying for the top job and sell it to an entire nation, than promote hundreds of constituency candidates to small segments of the population.

A report by the Hansard Society in 2010 warned that “online campaigning works better in some contexts than it does in others and this is particularly true for personality-led or issue-based campaigns.”

It noted, however, that this online trend for British political parties had the potential to change, particularly as “local and national representatives in the UK make everyday use of the internet to establish stronger links with supporters.” The report stated: “Digital campaigns are increasingly significant in electoral contexts.”

All political parties in the UK were late to exploit the power of the internet in campaigning. Although they began harvesting information from early-era internet forums as early as the late 1990s, online communications were viewed as inherently risky until recently.

Now all three of the main political parties are catching up on social media. With 145,000 followers on Twitter, Labour has 30,000  more than the Tories and more than double the Lib Dems, but with 180,000 followers on Facebook, Labour still trails the Conservatives by 60,000.

While small, these numbers align with other nations’ political parties’ presence on social media. In the US, for example, the Democrats have 317,000 followers, while the Republicans have 285,000, and the US population is more than four times that of the UK. The difference in the online presence of political leaders is striking, however: Obama has 44m Twitter followers, while David Cameron has not yet reached 730,000 and Ed Miliband trails on 330,000.

He is clear all content serves a specific purpose. “If we can be funny or entertaining, great, if we can move people with tales of those who’ve lost out under this Government, then great... But it’s important to think: what is digital for? Our end goal isn’t creating content. Our goal is to win votes and get Ed into No 10.”

The party has experimented with new tools to see how many people it can reach at once. Last November, the team tried out a new tool called the Thunderclap, which allowed the party to tweet the same message from almost 850 consenting activists’ Twitter accounts simultaneously. The tweet, which promoted Labour’s energy bill price freeze policy, reached 4.5m users, the party claimed.

McGregor explains that more often, however, tailored content is narrowly targeted at specific demographics. While some emails reach 100,000 subscribers; other infographics are aimed at just 5,000 target voters.

The platforms the team use also take into account the demographics of users. “People in their twenties and thirties are more likely to be on Twitter than people in their fifties. Teens are more likely to be on snapchat,” says McGregor. So is SnapChat next? “No… it’s something Senator Rand Paul did, which I thought was a bit bizarre.”

Labour also uses Instagram, Twitter, YouTube, AudioBoo - “an audio platform where you can post and share audio files – so clips of speeches, interviews, soundbites”, and Stackla – an “innovative way of sharing visual content”.

Ed Miliband shared his first Vine last month – a six-second clip of the Tour de France passing in Westminster. A senior source close to the Labour leader admitted to me: “Ed’s not particularly tech-savvy himself,” but impressed Miliband’s support for digital political campaigning: “He’s engaged with the campaign and what it can do.”

Given the correlation between youth and the adoption of digital technologies and social media, is Labour’s support base, which pollsters show is younger than the Tories or Lib Dems, reached more easily and effectively by digital campaigning?

“I don’t think that applies as much as it used to, the age thing,” says McGregor, shaking his head vigorously. “My mother sends me pictures of her grandkids on her iPad, posts pictures on Facebook.”

He is diplomatic about the digital campaigns being launched by the Conservatives and the Lib Dems. “I respect them both” he says.

He adds, however: “I think the Tories are determined to run a really nasty, negative campaign. I don’t think that’s what people want, whether that’s online or offline.” Pausing pointedly, he says: “That’s their call.”

McGregor built his reputation on digital attacks, however, so I ask him about Labour’s own negative online campaigning. “Negative?” he asks, before correcting me with a mischievous smile: “I think you mean ‘contrast campaigning’. I think it’s important that people hear what we have to say is wrong with the Tory government and explain the contrast between the way that Ed will lead and this Government will lead.”

So far Labour has been assiduous in sharing information that demonstrates, they claim, the Conservatives’ “broken promises” on the NHS, education and the economy.

Although ruthless online, McGregor’s virtual reputation belies an enthusiastic, expansive and good-natured manner in real life. While he is the big name in the digital strategy community, he remains a team player – frequently impressing the importance of collaboration in all online campaigns, and deflecting any praise onto his colleagues.

Surprisingly, perhaps, he does not believe digital campaigning can overtake traditional doorstep campaigning.

He explains: “There’s intrigue with online – it’s new and exciting, and new tactics and tools are coming out all the time. But ultimately the most persuasive engagement someone in the Labour party can have with a voter is knocking on their door and talking to them about the issues that matter to them and people on their street.

The virtual world should be a complement to reality; Labour’s digital campaign is not about “making sure people are bent over their smart phones all day – that’s not right”. Instead, says McGregor: “Often it’s about persuading people to turn their computers off altogether and hit the streets.”

Lucy Fisher writes about politics and is the winner of the Anthony Howard Award 2013. She tweets @LOS_Fisher.

 

This article first appeared in the 13 August 2014 issue of the New Statesman, A century of meddling in the Middle East

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 13 August 2014 issue of the New Statesman, A century of meddling in the Middle East