What Is Purpose-Driven Advertising? Does It Work？

(gettyimage)

Purpose-driven adverting focuses on promoting a brand’s social or environmental values or purpose rather than solely promoting its products or services. Purpose marketing aims to align a brand with a cause or value that resonates with consumers, build brand loyalty, and increase sales.

Purpose marketing permeates television and digital advertising. But is it effective? Does the consumer believe what they’re hearing and seeing? And what happens if it’s deemed as insincere?

What Is Purpose Marketing?

Purpose marketing is a strategic approach focusing on a brand’s purpose or mission. The product is secondary. It’s about connecting with customers on an emotional level.

Purpose marketing wants to show how a brand can make a difference in your life.

How Purpose Marketing Works

Purpose-driven marketing takes many forms, including cause-related, social-impact marketing, and sustainability.

For example, a company might partner with a nonprofit and donate a portion of its profits to support that cause. The shoe company Toms donated a pair of shoes for every pair they sold when they first started. They heavily advertised this charitable contribution.

Another form is a company promoting its sustainability efforts. This includes reducing carbon emissions or using eco-friendly materials in its products. The goal is to appeal to environmentally conscious consumers.

Amazon participates in purpose marketing by advertising they are going all-electric with their delivery vehicles; therefore, they are protecting the environment.

Promoting diversity is another way some companies use purpose-driven marketing.

The Unilever-brand bar soap Dove has a “Real Beauty” campaign focused on people of color, different ages and body types, and representatives from the LGBTQ community.

Purpose-driven marketing is the attempt to connect with consumers on an emotional level. The theory is that consumers are more likely to be brand-loyal when they feel they are a part of something bigger than themselves.

Who Does Purpose-Driven Marketing Target?

Generation Z and millennials are the main target demographic of purpose-driven marketing. After all, they are perceived to be the future consumers.

In 2018, a survey conducted by the British television station IAB revealed that 60 percent of those 16–35 noticed ads that dealt with purpose-driven issues. Fifty-five percent of people 35–44 noticed ads, but 37 percent of those aged 45 and over noticed purpose-driven advertising.

But that was in 2018; are these ads still noticed five years later?

Is Purpose-Driven Marketing Effective？

Perception has changed since 2018, at least in the United States.

According to a survey conducted by Growth from Knowledge (GFK), a data analytics company that’s made recommendations to advertisers for 85 years, purpose marketing isn’t as effective as originally thought.

It found that more than 50 percent of U.S. consumers couldn’t name a brand making a difference regarding diversity or the environment.

Overall, the survey found that 39 percent of the 2,000 respondents couldn’t think of a brand working to make things better.

Fifty-seven percent of those surveyed couldn’t think of a brand taking care of the environment or caring about climate change. And 57 percent couldn’t name a brand promoting inclusion and diversity.

The study also compared mainstream ads to purpose ads. It found that 74 percent of mainstream ads had a hook that grabbed the consumer’s attention. In contrast, 65 percent of purpose-driven ads had a hook that caught the audience’s attention.

The ability to hold the viewer’s attention was also studied. Fifty-six percent of mainstream ads held the consumer’s attention, but only 45 percent of purpose-driven ads were able to hold the viewer’s attention.

Woke Washing and Greenwashing a Factor

Woke washing is when a company appropriates diversity and inclusion concepts into its ads to improve its reputation. But the company doesn’t demonstrate a real commitment to these concepts.

There is also greenwashing, which is when a company gives a false impression or misleading information that their products or policies are environmentally sound.

The result of woke washing and greenwashing creates a numb consumer.

Purpose-Driven Advertising Can Backfire

As Pepsi found out with the Kendall Jenner ad, where during a demonstration she hands a Pepsi to a hot police officer, purpose-driven advertising can backfire.

Because of woke washing and greenwashing, some companies like Pepsi, Google, and Burger King have found themselves criticized.

This has caused consumers to doubt a company’s authenticity. Gen Z and millennials are now looking at companies with skepticism or just ignoring the purpose-driven efforts.

Consumers Less Aware of Purpose-Driven Advertising

While purpose-driven advertising is the latest marketing ploy by companies, it’s questionable as to whether it’s really working.

More than half of Americans don’t notice whether companies promote environmental, diversity, or inclusion practices. And several purpose-driven campaigns have backfired on advertisers.

Still, many advertisers continue to use purpose-driven campaigns in the hopes of generating profits.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.