US sponsorship spending on cause marketing will hit $1.44 billion in 2007. In 1990 it was only $120 million. (IEG Sponsorship Report). According to IEG, projected spending and category share in 2006 were:
- Sports: $9.9 billion, 66%
- Entertainment Tours/Attractions: $1.6 billion, 11%
- Causes: $1.44 billion, 10%
- Arts: $820 million, 5%
- Festivals, fairs, annual events: $701 million, 5%
- Associations, membership orgs: $466 million, 3%
Frankly, cause is not about sponsorship; it’s more about actively supporting, promoting and living as good corporate citizens. Getting your logo up on ice-rink clapboards does not count as cause in the “Good Book”. Number 3 in the list above is strongly validated by consumers. This includes global warming, everything “green”, disease, longevity, global child poverty, education, literacy, political injustice and even genocide. Here are the top ranking brands on the 2006 Golin Harris Citizenship “Do Well by Doing Good” Index of 152 brands:
- Ben and Jerry’s
- Target
- Patagonia
- SCJohnson
- Gerber
You can participate in your own cause as I explained in my post the other day, becoming transparent in all your actions. “Cleaning up your act”, as they say. Read below the survey results on how this could affect your customers’ behavior with praise, resonance and loyalty. (I hesitate to mention sales, but it is a corollary to good behavior.) You simply cannot leave cause out of your top priorities in 2007.
Did you know?
- 72%of American employees want to work for companies that support charitable causes (Deloitte Touche Survey, 2004)
- 87% of students want to work for companies that support charitable causes (Harris Interactive)
- 92% of Americans think it is important for companies to donate to charities in the community (Deloitte Touche 2004)
- In an October 2001 survey of consumers conducted by Cone Inc. (Omnicom), respondents stated that they were “likely to switch brands, if the other brand was associated with a good cause”
Sorry these are US stats but still, they are directional about North Americans.
In Golin and Harris’ 2005 study, respondents scored these eye-openers “High” or “Very High” as to what, in a cause context, will drive them to a brand:
1. Values and treats its employees well and fairly (85%)
2. Executives and business practices are ethical, honest, responsible and accountable (83%)
3. Goes beyond what is required to provide safe and reliable products and services (75%)
4. Responsibly markets and advertises its products and services (72%)
5. Committed to social responsibility, economic opportunity, environmental protection, etc. (72%)
6. Listens to community or customer input before making business decisions (68%)
7. Is active an involved in the communities where it does business (68%)
8. Committed to diversity (gender, race, etc) in the workplace and its business practices (65%)
9. Company’s products and services enhance peoples’ lives (64%)
10. Corporate values and business practices are consistent with my own beliefs (62%)
11. Supports a cause or issue that has led to improvement and positive change (61%)
12. Donates or invests its fare share of profits, goods or services to benefit others (59%)
DDB Brand Integrity Group in conjunction with IdealBite released their findings on Eco-Living Consumer Preferences (hence consumer trust):
• Respondents cited insincerity with first-party seals of approval and rejected campaigns that lacked specificity and transparency.
• Respondents did not find donation-with-purchase programs compelling. Instead, aligning a corporate cause with a company’s DNA received a favorable response.
• Partnerships between corporations and non-profits were often seen as self-serving efforts.
Now I have given you a little more cause to pause about cause. I’ve done my bit for cause this month in my blog; but, it is only a start. I aim to earn my wings.
