Even in tough times, more and more marketers are seeking to boost their bottom line by adopting a charitable bent.
This holiday season, companies eager to align with good causes and appeal to socially responsible consumers have released a steady stream of “cause marketing” campaigns.
Despite the down economy and evidence that charitable donations are in decline during the recession, cost-conscious consumers still expect companies to help out in tough times and are more willing to reward brands that do.
Marketing experts also say that consumers with enough cash to spend in a recession feel “shopper’s guilt” about it, and will tend to gravitate toward purchases with charitable tie-ins as a result.
This explains why Starbucks, whose third-quarter profit plunged 97 percent, just began a promotion that allows consumers to donate five cents on a cup of coffee to combat AIDS.
A recent study from marketing firm Cone found that 52 percent of Americans expect companies to maintain their level of financial support for social and philanthropic causes, while 26 percent said it should be even higher.
Even luxury retailer Gucci has introduced a bag and jewelry collection to benefit UNICEF. The ads, featuring pop star Rihanna, will run in glossy fashion mags in December and January.
Spending on cause marketing will hit $1.5 billion this year, up 4.4 percent from $1.4 billion in 2007 despite evidence of an overall decline in charitable giving, according to the IEG Sponsorship Report.
“A lot of this is follow the leader, but if the company is authentic in its intentions to support a good cause, the marketing resonates with consumers,” said William Chipp, a senior editor at IEG.
New twists on giving, such as charitable gift cards that allow recipients to donate to the charity of their choice, have made it convenient for consumers to give the gift of giving.
For instance, Network for Good is a nonprofit that offers gift cards that can be redeemed at 1.5 million charities. Shoppers pay $5 for the card plus the face value of the donation.
The Internet has also made it easier to tap consumers’ wallets. A number of online shopping sites that donate a percentage of the purchase have sprung up in recent years.
One such site, We-Care.com, which launched in August, offers users a shop-and-give gadget that they can download or send to their friends, encouraging them and others to shop for a certain cause.
“People are trying to cut back on spending, but they still want to give gifts and support charities,” said Bill Strathmann, chief executive of Network for Good.. “You kill two turtledoves with one gift.”