High-profile controversies have sent a chilling effect across an industry facing down another contentious election year and crusades against “wokeness.”
Prpose-driven marketing came under fire in 2023, with controversies roiling high-profile brands for months on end. The outcry, which extended beyond online kerfuffles to actually dent sales and revenue, has sent a chilling effect across an industry already contending with economic constraints. While the case for purpose remains strong, with plenty of research touting the potential benefits to the bottom line, these false steps be a symptom of a larger underlying problem related to weak brand-building.
“The importance of purpose-led marketing has probably never been greater,” said Margot Acton, a managing partner specializing in brand strategy at Kantar. “Algorithms are finding people. If you’re not a brand that snaps to my mind as important and meaningfully different in ways that I care about, then you’re actually going to be in trouble.”
As the U.S. heads into another contentious election cycle and inflation is slow to cool, brand-building will be tested by a walking-on-eggshells environment, with purpose one of the most vulnerable tactics amid crusades against “wokeness.” Purpose has flexible definitions but is generally understood as the values a brand stands for beyond making money, such as protecting the environment or diversity, equity and inclusion.
More of the hard work for those causes may happen behind the scenes instead of manifesting in buzzword-heavy ad campaigns, speaking to how purpose needs to be a function that touches all aspects of the C-suite, not just the CMO. The close of 2023 could also serve as a point of reflection for marketers who eagerly jumped on the purpose bandwagon without a readiness to commit to a cause for the long haul, alienating consumers on several fronts.
“Some of the basic tenets and premises got forgotten,” said Rosemarie Ryan, co-founder and CEO at Co:Collective, a strategy consultancy focused on helping businesses implement purpose. “There’s been some damage that’s been done.”
A perfect storm
A confluence of factors tripped up purpose-led marketing initiatives and ultimately led to weaker brand-building output this year. The economy remains mired in uncertainty, making marketers more beholden to quarterly performance measures. Backing up work that gets criticized is a tall ask for CMOs who may fear their jobs are at risk on the off chance that a single campaign element becomes a hot-button national discussion.
“When you can say kiss my ass, you can say kiss my ass,” said Brandon Rochon, head of creative at independent ad agency Hothouse. “Right now, you can’t.”
Underpinning the unease are heightened political divisions, which rarely cooled from the last two election cycles and are again running high heading into 2024. Online safeguards and civility feel in crisis in a fragile moment. X, formerly known as Twitter, has reportedly seen an uptick in hate speech under loosened moderation rules mandated by Elon Musk. Musk himself has been under fire since acquiring the platform last year, most recently for expressing support for antisemitic conspiracy theories.
“When things blow up, the data gets buried. We look at the immediate reaction and not the longer-term implications.”
Co-Founder and CEO, Co:Collective
But the toxicity is hardly localized to X and disinformation continues to spread across social media, amplified by rising concerns around AI and deepfakes. Meanwhile, premium publishers have struggled, if not outright shuttered, in a weakened ad market. Marketers have tried to keep their campaigns away from contentious topics, including abortion and climate change, under the guise of brand safety but undercut authentic news and analysis in the process.
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