Ad 2 San Diego Cause Marketing Night

Cause Marketing Partnerships…The Fifth “P” Ad 2 San Diego August 27, 2009 Christine Guardia, Cause Cultivator, KooDooZ

What is CSR? Source: www.industryplayer.com/corporate_social_responsibility.php

Corporate Sponsorship

41% of Americans said companies should increase their spending on cause marketing

13% of Americans said companies should increase their spending on sports sponsorships

20% of Americans said companies should increase their spending on cultural events

Sources: IEG 2009 Estimate and Performance Research Survey

Cause Marketing Spending Sources: Cause Marketing Forum and IEG

What is Cause Marketing?

Marketing involves brands and nonprofit organizations working together for their mutual benefit

Not the same as corporate giving or philanthropy

Win-Win-Win

Cause Marketing Benefits Nonprofit Brand Consumer Increased public awareness Increased brand recognition Increased knowledge of cause More funding More sales More purchasing power Enhanced reach Enhanced public relations Enhanced personal connection

Types of Cause Marketing: #1 Cause Promotion

Honey is used in more than 40% of Häagen-Dazs flavors

Campaign for Real Beauty targets women and girls

Heart disease is #1 killer of women in U.S. - not only a “man’s disease”

Key: Fit - good fit yields results up to 10 times better than a poor fit

Types of Cause Marketing: #2 Portion of the Proceeds

$1.7M for Statue of Liberty in 1983 and 28% increase in AMEX card use

$1 donated for each WWF Collectibear sold; $1.8M as of 2008

In three years, raised $130M and impacted 4M people

Key: Transparency - disclose the $ or % given to the nonprofit/cause

Types of Cause Marketing: #3 BOGO (Buy One Give One)

Over 140,000 shoes donated

Over 200,000 jeans donated

Over 31M life-saving vaccines provided

Key: Can be campaigns, but social entrepreneurs building into biz model

Traditional vs. Cause Marketing: Partnerships…The Fifth “P”

85% indicated it is OK for companies to include a cause in marketing

79% were likely to switch to a cause brand if comparable in price & quality

38% had purchased a cause-related product in the past 12 months

Source: 2008 Cone Cause Evolution Study

S.M.A.R.T.E.R. Approach

S trategy

M arketing Plan

A lignment

R elationships

T ransparent

E valuate

R evise and Repeat

Source: Bruce W. Burtch, CMO Club podcast 8/19/09

Gen Y / Millennials / Gen NET

Spend nearly $200B annually

More receptive to cause marketing:

88% were likely to switch to a cause brand if comparable in price & quality

51% had purchased a cause-related product in the past 12 months

41% prefer message includes the percentage of the purchase of each product that will go to the nonprofit

Sources: http://www.onpoint-marketing.com/generation-y.htm and 2008 Cone Cause Evolution Study

New Frontier: Social Media

10% of all time spent on the internet is on social media sites

It took radio 38 years to reach 50 million listeners, TV 13 years to reach 50 million viewers, but in less than nine months, Facebook added 100 million users

YouTube is likely to show over 75 billion video streams to around 375 million unique visitors during 2009

Source: http://econsultancy.com/blog/4402-20+-more-mind-blowing-social-media-statistics

Facebook Facebook Causes Facebook Pages

Twitter 4 Good Twestival: 200+ worldwide tweetups on 2/12/09 raised $250,000 for charity: water TweetsGiving: Raised $11,000 for school in Tanzania from 98% new donors 12for12K: Trying to raise $12,000 per month for 12 different charities in 2009 Pledge to End Hunger: 4,800 pledges signed and $28,000 raised primarily via online tools

Crowd-Sourced Philanthropy In its second year, awarded $2.5M to winning projects 167,000 Facebook users voted to allocate $3M to 10 nonprofits Five organizations will receive $20,000

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