Spending on cause related marketing is down significantly, but still shows an increase over last year.
North American companies are expected to spend a total of $1.55 billion on cause partnerships this year, a 2.2% increase from the $1.52 billion in 2008, according to sponsorship marketing company IEG, LLC.
The increase indicates that marketers understand that cause campaigns have a positive impact on shoppers. Some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest, IEG said.
“Recent research has shown that consumers expect corporations to increase their support of causes in this economy,” Dan Kowitz, vice president of IEG Sponsorship Consulting, said in a release.
For example, anti-hunger organization Share Our Strength has posted a roughly 15% increase in revenue from cause marketing programs over the past year, signing new deals with AT&T, Inc.; Hickory Farms, Inc. and others, IEG said.
This year, Mott’s partnered with Susan G. Komen for the Cure and Feeding America in a national cause campaign.
The company is leveraging the Komen partnership with the Pink to the Core campaign, which features limited edition packaging, and Feeding America with the Wake Up with Mott’s and Marcia Cross program, around which consumers can make a donation by sending a pre-recorded telephone message about the need to fight hunger from the actress to family and friends. For each call, Mott’s donates $1 to the nonprofit, with a cap of $134,000—the cost of feeding one million people.
Companies also are increasingly leveraging sports and other types of sponsorships to promote their nonprofit partners. For example, Farmers Group, Inc. is using its new tie to the WNBA Los Angeles Sparks to promote its longstanding partnership with March of Dimes. The insurer is activating the tie with the We Assist You Assist promotion that asks consumers to pledge a donation tied to the number of assists the team makes throughout the season. Farmers will match the total raised from fans.
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