The document summarizes a debate event on whether brand purpose has a point. Two speakers argued that brand purpose does not have a point, citing flawed research supporting it and that many brands falsely claim a purpose without taking action. Two other speakers argued that brand purpose can have a point if done authentically and in a way that is integrated into the business model and products, using examples like Dove and Tesla. While brand purpose is not always executed well, the debate suggested that when done authentically it can make a real difference and have business benefits.

1. GET PLANNING
SMART
Does Brand Purpose
have a point?

2. G E T P L A N N I N G S M A R T W I T H A P G
Does Brand Purpose have a point?
The BBDO Knows team recently attended the APG Noisy Thinking Event ‘Does Brand
Purpose have a point?’ held at Google HQ in London, which featured two speakers
arguing against brand purpose, with another two making the case for. The arguments
covered fundamental questions regarding brand purpose, which are important to revisit
as it becomes a more established concept – does brand purpose have a point? Does it
create a measureable impact on brand sales? And is it currently being done right?
Brand Purpose has no point. Discuss…
First up was Richard Shotton, Head of Evidence at Manning Gottlieb OMD, who
approached the question on whether brand purpose had a point by interrogating the
methodology behind the research that initially led us to believe that brand purpose was
an effective tool – Jim Stengel’s book ‘Finding your Brand Purpose’. Shotton suggested
Stengel’s research was scientifically flawed and his finding – that brand purpose leads to
brand growth - was therefore invalid; “Stengel was less effective at predicting a
company’s future success than a blindfolded man throwing darts at an open copy of the
FT”. According to Shotton, because the research proving brand purpose’s value is flawed,
there is no point to brand purpose.
Author and marketing strategy consultant Ian Leslie’s approach to explaining why there is
no point to brand purpose was more of a philosophical one:
"Everybody wants to change the world. There is a
difference between saying that's what you want to do and
doing it."
Leslie argued that brands were jumping to a conclusion that “doing good equals good
business”, leading to what he called “empty virtue signaling” (brands claiming a purpose
and not actively contributing to it). He postulated that empty virtue signaling leads to
consumer distrust of brands and as a result nullifies the point of brand purpose: "A brand
that gives a signal that doesn't cost anything is an empty virtue… it's a pollutant because it
lowers trust in other brands". He put the blame of this empty virtue signaling squarely on
the shoulders of advertisers, suggesting that we are mainly interested in brand purpose as
it is something that our industry lacks. Leslie did, however, propose what he thought
advertising’s brand purpose should be – “frivolity can drive brand social and economic
progress... Creating pleasure is a purpose in itself… Our purpose is to delight people.”

3. G E T P L A N N I N G S M A R T W I T H A P G
Does Brand Purpose have a point?
There is a point to Brand Purpose. Discuss...
Marie Maurer, Planning Director at Oglivy & Mather argued for brand purpose, pointing
out that having a purpose of doing good in the world doesn’t have to be mutually
exclusive of a business wanting to be profitable, using Dove as an example; "Dove does
good, but also does well". Maurer argued that a brand purpose can unlock distinctiveness
and therefore future profit.
Daianna Karaian, founder of ‘Thoughtful Works, put together a similar case to Maurer,
defining brand purpose as a "social decision that makes business sense”. She quipped:
“The whole point of brand purpose is to grow a successful
business… If making a difference isn’t making you money,
you’re doing it wrong”.
According to Karaian, many brands are doing this wrong either at a fundamental product
level or at the point of integrating a brand purpose that doesn’t align with the brand or
their products. But this doesn’t mean that brand purpose doesn’t have a point. She gave
Elon Musk’s Tesla as a perfect example of a company that has woven brand purpose into
its whole business model – encompassing commercial ambition, customer benefit and a
social mission. Tesla aims to solve climate change by selling electric cars to people who
need to buy a car and are worried about the changing climate. Karaian summed up her
talk with a statement about what brands can learn; “Make things [products] that make a
difference and make money by making a difference”.
Does Brand Purpose have a point?
The arguments against brand purpose certainly inspired skepticism with regards to the
way Stengel initially presented brand purpose and the way some brands currently
approach brand purpose, acting as a stark reminder that brands that are executing brand
purpose half-heartedly will not see the benefits it can bring. But these arguments did not
lead to skepticism towards brand purpose itself. Purpose matters and when done well,
authentically and with a full heart it can make a real difference and have real business
results.

4. G E T P L A N N I N G S M A R T W I T H A P G
Does Brand Purpose have a point?
If you are interested in learning more about the subject of this article, please contact
Giovanni Palazzo-Corner, Researcher, palazzo-cornerg@bbdoknows.com
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