Code (Red) for Cause-Related Marketing [1]
Submitted by Diane Farsetta [2] on
A year into the Red campaign -- a cause-related marketing [3] effort that allows partners to profit from charity -- $100 million has been spent on marketing, but only $18 million has been raised worldwide for the Global Fund to Fight AIDS, Tuberculosis and Malaria [4]. "The disproportionate ratio between the marketing outlay and the money raised is drawing concern among nonprofit watchdogs, cause-marketing experts and even executives in the ad business," reports Advertising Age. "It threatens to spur a backlash, not just against the Red campaign ... but also for the brands involved," Gap, Apple and Motorola. The Global Fund's Rajesh Anandan defended Red: "The launch cost of this kind of campaign is going to be hugely frontloaded." The website buylesscrap.org [5] parodies Red, stating, "Shopping is not a solution," and encouraging direct donations to the Global Fund. Professor Mark Rosenman explained, "There is a broadening concern that business is taking on the patina of philanthropy and crowding out philanthropic activity and even substituting for it. It benefits the for-profit partners much more [3] than the charitable causes."