Anytime you attend a gathering of marketers these days, the discussion inevitably turns to when will traditional forms of advertising be declared officially dead. Some would say newspaper and television advertising is already dead. Maybe they are right. But at this week’s ANA conference in New York City, here is what I saw and heard.
We heard from conference sponsor The New York Times that they have made the decision to begin charging a subscription for their online content. And why shouldn’t that be the case? When was it decided that the same level of journalistic content and the effort it takes to produce it is suddenly free because it isn’t thrown on your driveway every morning. Why it took The Times so long to do is another debate, but they have put a stake in the ground that says our content has value. And advertisers who look on now know that the readers of the Times from this point forward are different than those that were reading it for free. They have an investment in it now and advertisers will be able to target these readers better.
We also saw one of the truly great television campaigns of the past few years and heard the back story. Dos Equis’ “Most Interesting Man In The World” is smart, funny and risky. The marketing team and the agency had to convince executive management that it would be a fantastic idea to have a 70-year-old spokesperson who told the world that he doesn’t drink beer, but if he did, it would be Dos Equis. It is the kind of campaign that seems to have no boundaries for where it can go and it is primarily driven by television. Sure, it gets huge viral play, but from the beginning it has been :15 and :30 spots that built the foundation.
What this teaches us is that we have to know how to adapt today. Newspapers aren’t dead yet, but the ones that are surviving are learning to adapt to the new world. One year from now, the concern about The Times charging for on-line subscriptions will be a distant memory. And I would also bet one year from now that the “Most Interesting Man In The World’ will still be telling us to “Stay Thirsty My Friends.”
I attended the ANA to do a presentation on cause branding with our client, Danielle Vona, of Sonic. She and I talked about cause in general and about the two-year-old cause program we worked with Sonic to create – Limeades For Learning. We had a lot of great feedback and questions and my last learning from the ANA is that cause branding is here to stay. But like every other marketing strategy, we must be ready to adapt. I will talk more about in the future.
Thursday, April 07, 2011
Tuesday, June 01, 2010
The Death of Cause Marketing
AdAge has asked me to provide an occasional point of view on cause marketing and this is my latest effort. I am the last person on the planet who wants cause marketing/branding to die because I do believe in it when it is done right. I will let my column take it from here:
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The Day Cause Marketing Died
How to Keep Consumers From Getting Fed Up With Corporate Efforts
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| Mike Swenson | |
It seemed to happen so quickly. One day the marketplace was full of companies and nonprofits working together for the common good. And then it was over. The blame game is in full swing. Various theories are being debated as to what happened. But looking back, it seems clear why cause marketing died.
It wasn't a natural death. It was murder. The very people who created and nurtured cause marketing through the end of the 20th century and into this century lost control of it at some point. Cause marketing was turned over to the promotions departments of agencies and companies and morphed into something unrecognizable. Cause was no longer about unique engagements with consumers. It had become just another homogenized marketing program fighting to grab its share of the consumer dollar.
From the moment consumers awoke each day until they fell asleep at night, they were inundated with opportunities to give back every time they made a purchase. In between, regardless of what store they were in, point-of-purchase shelf talkers virtually screamed at consumers every 10 feet to buy this or that product and help this or that cause. Consumers were under siege at every checkout lane of every store they shopped to give a dollar for this or a dollar for that. With online shopping continuing to overtake old-fashioned retail, cause banner ad after cause banner ad intruded on that shopping experience as well.
How do we keep this scenario from happening? Those of us engaged in cause branding in 2010 can't conceive of its demise. But as true believers, we also must avoid being naive about practices that can erode its effectiveness as a brand builder and a vehicle for societal change. A recent unscientific poll conducted here on AdAge.com asked for our collective opinions about whether or not cause marketing was doomed because of overexposure to the consumer. A wide margin of those who responded said consumer fatigue was going to happen. Are they right, or were they just the usual vocal minority of people who find it easy to criticize without offering suggestions?
What I do believe consumers will grow tired of are product promotions that masquerade as cause marketing programs. Product promotions are designed to do one thing: Sell products. Simply adding a donation from the sales proceeds doesn't qualify as real cause branding anymore. Cause has to be about engaging the consumer beyond the sale of one product. Companies need to demonstrate that they care about the cause every day, not just the day of the transaction.
Likewise, nonprofits need to be mindful of the types of corporate partnerships they pursue. While the money from a purely transactional cause-marketing program may be tempting, nonprofits should make sure the partnership makes sense. Is there a natural tie between the corporation and the nonprofit, or is it forced? Will the consumer remember anything about the cause once the promotion ends? And what will the money being donated specifically fund?
When cause marketing is done well, no explanation is needed. The partnership instantly makes sense. The consumer is engaged repeatedly throughout the year. And everyone knows where the money is going and what it will accomplish. The true power and reach of cause marketing is missed if companies are simply slapping a nonprofit logo on a consumer product and thinking the consumer will remember them after the transaction is over.
The fictitious dispatch from the future at the beginning of this column should remain just that: fictitious. There are enough companies and nonprofits today that are doing it right. But with increased scrutiny from both corporate and nonprofit watchdogs, we have to make sure we are all doing it the right way all the time.
As always, the consumer will be the ultimate watchdog. The cause formula for success with consumers is very simple: Engage, don't just sell. Educate, don't just market. Find a nonprofit partner that makes sense. And if consumer donations are involved, be open and specific about what they are accomplishing.
In the end, you might just sell some more product, too.
Friday, August 28, 2009
Wednesday, July 29, 2009
Cause a Survivor
AdAge asked me to write a column about cause marketing and branding in a tough economy. Here it is. Please join the discussion.
Marketing's True Survivor
Why Advertisers Should Turn to Cause Strategies When Times Are Tough
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| Mike Swenson | |
If you compare our current economic abyss to a game of "Survivor," with marketing programs vying to avoid being voted off the island, it appears we have a winner. Cause-related marketing might just be the true survivor in this economy.
Anecdotal evidence is everywhere. Entire ad campaigns by major brands range from simple hints about the good they are doing for society to entire campaigns centered on causes and giving back. At Barkley, we have two clients that made cuts in their marketing budgets but did not stop the development of cause programs set to launch later this year.
The primary reason is consumer demand. Giving back is part of the consumer mind-set now. A perfect example is a study from Opinion Research Corp. telling us that 76% of consumers are willing to pay more at the cash register for environmentally friendly products. This debunks the perception that consumers will buy green only if it doesn't cost them.
Our most recent Barkley cause survey, done in partnership with PR Week, brings consumer support for cause marketing into even sharper focus when you consider the female consumer. Since women are responsible for more than 80% of all spending, what women want matters to marketers. Two of three women have purchased a brand because it supports a cause they believe in, and three of four have recommended a brand to others for the same reason.
The headlines tell us that philanthropic giving is down during the economic slump. So why is cause marketing surviving? It's simple: As a person's disposable income drops, his or her ability to make philanthropic donations drops as well. Cause marketing provides outlets for consumers of all financial means to give back, since most programs carry a modest level of donation.
Simply stated, cause marketing is surviving in this economy because consumers not only want to give back but also can afford to do it through cause-marketing programs. And since we see the mountain of evidence telling us consumers will reward companies that offer cause-marketing programs, the reasons not to make cause a part of the marketing mix are dwindling.
The benefits are numerous for a brand that commits itself to cause marketing. One of the most important is the internal impact of support for a cause. When consumers put on their employee hats, they want to work for companies that care. Two out of three CMOs Barkley surveyed in late 2008 said their cause programs resulted in improved employee morale and retention. That was especially true for employees in their 20s and 30s.
A second benefit is directly linked to the troubled economy. We all know that value pricing has its limits. A competitor can always undercut a price point. Think of value a different way. A brand can hold steady on some prices when it adds value to the purchase, such as support for a cause. Consumers will be willing to pay a bit more if they know the product they purchased will support a good cause.
With consumers living their lives more and more online today, marketers can offer a year-round cause-marketing presence, thus reinforcing their status as brands that care. It also makes it easier for consumers to engage with the brand. Our client Lee Jeans has experienced this firsthand through Lee National Denim Day, which supports the fight against breast cancer. Denim Day began 14 years ago as a workplace program using traditional methods of marketing and communication to spread the word. Today, the entire program exists online atdenimday.com, where anyone can form a team, make donations and learn new ways to get engaged in this grass-roots cause program.
Finally, brands engaging in cause marketing can fill a big need in today's economy. Nonprofits are being hit hard right now, which means the people they serve are being hit harder. Nonprofits are being squeezed from all sides. They have less help from government, foundations, direct donations and volunteers.
Combine that with the fact that companies today are searching for any edge they can find to drive business and grow their brands, and it will bring you to a simple conclusion: Cause marketing will give a brand the edge it is looking for and will help the nonprofits collect much-needed dollars to support their missions.
Brand marketers need to ask themselves a question right now: If your best customer asks you what you stand for, do you have an answer? Cause marketing will help give you that answer.
Friday, July 17, 2009
Wednesday, March 04, 2009
Teens behind the Wheel
More teens die in car crashes than any other single cause of death. 5,000 per year. The Ad Council just released a new campaign aimed at curbing teenage reckless driving. The campaign is in concert with Attorneys General around the country and was developed by Y&R/NY.
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