The purpose of brand purpose

Brand purpose has been a hot topic for marketers and the industry for almost a decade. As we came out of the initial impact of the last global recession, there was a movement for brands and their organisations to embrace a high purpose than simply selling products and services as a way to engage an increasing number of ‘socially aware’ consumers.

But during this latest crisis, many are wondering what the role of brand purpose is when many people and organisations are simply struggling to stay alive. How does brand purpose translate to dealing with a global pandemic and the almost inevitable economic consequences to follow? This is the topic of our free webinar next Wednesday, August 5, 2020 08.30H CEST 14.30H SGT, 16.30 AEST, 18.30 NZST. Titled: Going beyond purpose to relevance in a disrupted world. You can find out more and register here.

Not surprisingly this is also a topic covered in much of the trade media in the past few weeks. Between the stories on the impact of COVID-19 and the social upheaval and protests regarding the lack of cultural diversity and justice, many are asking the question too. So, let’s take a look at what made me go WOW! when it comes to brand purpose this week.

ACCENTURE RESEARCH REINFORCES THE IMPACT OF PURPOSE ON BRAND PERFORMANCE

Building emotional connections with today’s modern consumer is crucial: brands that are successful in building an emotional connection will have a price elasticity and frequency of use advantage. 

For many of these brands, that means they look at people, community and planet in order to create a more sustainable ecosystem. Consumers and employees alike are discerning and will notice the brands that have a strong purpose and act on it. In fact, according to a new report by Accenture, 43% of consumers will walk away when disappointed by a brand’s words or actions on a social issue.

But as always, does what people say in surveys translate into actions in reality? Or is habit just too damn powerful?

WHY BRANDS NEED TO AVOID BEING HEROES IN THE WORLD’S STORY

In 2012, author Thomas Kolster released his first book, Goodvertising. Eight years ago, the thinking in the book was revolutionary, and had people like David Droga on stages around the world, preaching the gospel of purpose and impact.

But today, the world is a much different place. Brands have become global institutions, replacing the leadership void of traditional structures. With this awakening and newfound influence, the idea of brand purpose, according to Kolster, is changing.

In his new book, The Hero Trap, Kolster essentially smashes his original thinking and issues a crucial warning to brands. Beyond “goodwashing,” Kolster explores how brands try to overcorrect, knowing their station in the world, to become heroes—and unwittingly (or knowingly) being selfish in the process.

LONG-TERM EFFECT OF BRAND PURPOSE ‘UNCLEAR’, BUT IT’S HERE TO STAY

Issue and purpose-based marketing is here to stay, according to new research from Nine, with the media giant claiming “in a world where brands fight for attention and respect, having a point of view can be a way to do that”.

The long-term implications of this phenomenon, however, are unclear, as are the wider effects on consumer behaviour, Publicis Groupe’s global head of futures and insights, Tom Goodwin, said.

“We haven’t quite figured out what the long-term effect of purpose will be,” Goodwin said during a session on echo chambers at Nine’s Big Ideas Store. “Are people going to choose a shoe polish because they’re pro some political belief system? Should every brand aim to be an environmentally-friendly brand? Probably.”

MOST AMERICANS SAY BRANDS SHOULD RESPOND TO BLACK LIVES MATTER MOVEMENT

In the wake of the murder of George Floyd while in police custody, the Black Lives Matter movement has gained a wider global following among protesters demanding an end to racism and police brutality. As Opinium's study suggests, brands have a significant role in addressing these issues, but those efforts must be sincere to have a significant effect on consumer opinions.

The survey suggests that the recent protests are affecting what consumers want to see in ad creative, which is important for marketers that want to strike the right tone when addressing social issues. Three out of five Americans want advertising to respond to the recent BLM protests, while the remainder prefers to see content that isn't related to these issues.

WHAT IS THE ROLE OF BRAND PURPOSE DURING A GLOBAL CRISIS, KEITH WEED?

Each week, revered marketer and president of the Advertising Association Keith Weed, takes questions from marketers around the world, using his experience to help solve their problems.

This week, Tom Roach, executive strategy director, Adam & Eve/DDB asks: Lots of brands are discovering the importance of being helpful and supportive for their customers in this crisis, in ways that are consistent with their existing, core role in people’s lives. Many other brands, meanwhile, have talked a good game about being ‘purposeful’ in the past but seem rather less able to play a strong role in society right now. Does this mean that brand purpose is now a lot less useful as a business and marketing concept and that it needs to change significantly? Or is it still completely fit for, er, purpose?

EVEN A PANDEMIC COULDN'T MAKE THE PUBLIC CARE MORE ABOUT BRAND PURPOSE

There’s an old saying about never wasting a good crisis. As recent events have shown, if you are out to change the world, unexpected events that disrupt people’s habits and norms provide ideal ‘moments of change’. So, it’s unsurprising that many people in our industry believe that Covid-19 has ‘changed everything’.

The crisis has certainly amplified the brand purpose narrative. For many, it’s self-evident that ‘doing good’ will be a source of competitive advantage for brands as the crisis unfolds, and in the post-COVID world that follows.

IT'S TIME THE AD INDUSTRY REDISCOVERS ITS REAL PURPOSE

In the pursuit of brand purpose, have advertisers and their agencies have forgotten what their true purpose is? Advertising writer, producer and director Paul Burke argues it's time to put the emphasis back on selling.

Despite being hired to help their clients sell products, some agencies have spent an awful lot of time hectoring consumers about the environment, single-use plastics and other stereotypically worthy causes. I’ve heard industry leaders solemnly censuring the very consumerism that pays their salaries.

None of this seemed to matter as adland’s mantra declared that all brands must have a “purpose”. Ironically, the industry failed to see that the very thing it had lost was its purpose. Namely, to persuade people to buy things. Instead, agencies now seemed more interested in persuading people not to buy things.

‘IT'S NOT A MARKETING EXERCISE’: BEN & JERRY’S ON DISMANTLING WHITE SUPREMACY

“There are moments in the course of history when it’s important to stand up and be counted,” says Ben & Jerry’s global head of activism Christopher Miller, who believes that statement to be true of individuals and brands alike.

The self-described “rabble-rouser” has been managing Ben & Jerry’s activism efforts since 2012. He started his career working for Bernie Sanders in the US House of Representatives and has also worked as a climate campaigner for Greenpeace.

Now he works to translate the values of an outspoken ice-cream maker into successfully activist campaigns that demonstrate Ben & Jerry’s commitment to social good and its progressive political agenda.

FINALLY, ANA LAUNCHES LIST OF DIVERSITY-CERTIFIED AGENCIES

As brands increasingly look for diversity in the teams that create their marketing, the question is often whether the firm itself truly has a diverse makeup—or whether it just hired a few contractors to look more diverse for a project.

The Association of National Advertisers is trying to take some of the mystery out of the equation with a new supplier diversity list launched today. The initial list of over 100 marketing and advertising agencies will continue to grow, as the ANA asks the industry to contribute nominations.

On this last point, we have also taken action in capturing information on where agencies sit regarding cultural and gender diversity and inclusion, environmental sustainability, good corporate responsibility, and philanthropy. The TrinityP3 Agency Register now includes information on this for more than 4,000 agencies of all types – media, creative, digital, and more.

This follows on from and is an extension of the work we did last year supporting Bec Brideson’s “Women with Agency” initiative and also recognising those agencies who had become certified B-Corps.

As always, if any of this has piqued your curiosity or you simply want a more confidential discussion on any topic and the marketing implications and advertising opportunities let me know.

And stay safe. Stay healthy. Stay sane.

Cheers

Darren