Cause Marketing: Publicly Philanthropic Actions as a Marketing Strategy

“Some experts criticize cause marketing campaigns for leveraging good deeds as a public relations stunt rather than a means to drive authentic social transformation. In response, many purposeful business leaders now use metrics and benchmarks to quantify and scale initiatives that create real social change and the term ‘corporate purpose’ has prevailed to reference measurable social impact in the private sector.” — Chuck Joe

Enterprises around the globe may not emerge from the coronavirus pandemic in the best shape financially. But some companies seem to be thriving during a time when so many others face an unsure future.

Unsurprisingly, major travel websites such as TripAdvisor, Kayak, Lola, and Hopper topped the list of companies facing a void of uncertainty.

Nevertheless, through it all, the Tripadvisor Charitable Foundation donated $1 million to organizations assisting the most vulnerable in response to the coronavirus pandemic.

TripAdvisor’s initiative is to deliver vital economic relief to communities around the world. It hopes to help small businesses in the long term recovery of the travel and hospitality industry.

As noble as it may sound, “donating” $1 million towards the recovery of the travel and hospitality industry is wise. Rather than flushing it down the toilet on futile online advertising, publicly philanthropic actions are better than nothing.

“Tripadvisor has always been a platform where humans help other humans by generously sharing their experiences (both good and bad) so that the next person, a complete stranger, can benefit.” — Lindsay Nelson, Chief Experience and Brand Officer at Tripadvisor

Cause Marketing: A Tax Deductable Marketing Strategy?

How many of you have wished you didn’t have to pay so much for marketing campaigns? How about not paying anything for certain marketing activities? It sounds too good to be true.

And we all know what they say about things that sound too good to be true.

It’s crucial to remember that people often use the terms philanthropy and cause marketing interchangeably. But they’re both inherently different under the law. This is because the first goal of cause marketing is marketing for both the cause and the company.

Philanthropy might be an objective of cause marketing, but philanthropy is not its principal aim.

An Example of How Cause Marketing Works

A great example comparable to cause marketing is a major brand sponsoring a professional athlete.

The brand equips the athlete with the best gear money can buy (usually a drop in the bucket for the brand). In most cases, the gear showcases the brand’s logo, slogan, or some other type of identifier for the athlete’s fans to see each and every time they perform.

Essentially, companies brand famous athletes hoping to engrain themselves in the hearts and minds of spectators — one of the most effective market tactics in the history of marketing.

The fact that it costs between $5 and $35 million for a logo on the front of a NASCAR hood is a testament to its effectiveness. And if you’re wondering what the return on investment (ROI) might possibly be for such outrageously expensive advertisements, you’re in luck.

2013 № 88 National Guard Roi Total Impressions and Media Value

The National Guard’s 100% cumulative Media Equivalency for 2013 is $53,981,937. Total Impressions: 220,362,000

Cause marketing and sponsorship share a common thread: they’re both win-win solutions. A company sponsors a noble cause and gets the desired publicity in return.

A Rise in Cause Marketing During COVID-19

There seems to be a debate on whether or not it’s cool to engage in cause marketing during the COVID-19 pandemic. While some say it depends on the presentation, others think it’s tacky all the way around. Of course, you can bet your bottom dollar that there are some brands taking full and unabashed of cause marketing at the moment.

“What you have is wasted time, resources and money. And from what we’ve seen so far, none of the current creative COVID-19 campaigns have accomplished anything. The risks of losing time and getting it wrong are too high in health marketing, especially in these circumstances. If you haven’t noticed, people are scared.” -AdWeek

AdWeek recently posted an article entitled Now Is Not the Time for Cause Marketing Around COVID-19. The headline read:

“Find a way to help without thinking about potential award wins.”

Mike Shaheen wrote that it takes a lot of time and creative energy to create a successful cause marketing campaign like the one Ford pulled off. The COVID-19 pandemic is evolving fast; not weekly or daily but hourly. People don’t exactly have time to plan things out, despite most of them spending a lot of time at home.

Ford doesn’t just say they’ll be there, they actually find tangible ways to do so.

People need supplies now.

Trying to rush an imaginative campaign seldom yields good results. It’s a race against time, and when brands are wasting time and money with celebrities versus getting out there and helping others, it conveys a pretty obvious message that their priorities are all wrong.

It’s understandable for companies to want to continue reaching consumers but it’s also important not to overstep the boundaries. If you’re a business owner thinking about investing in a cause marketing campaign, it’s a good idea to rethink that idea — unless you’re completely sure you can pull it off.

Other than that, why not simply do something genuinely kind for others with no expectations; America needs more of that right now.