The moral of a brand
Richard Edelman, the CEO of global communications firm Edelman, spoke with The Post about advertising and activism.
How are brands helping companies increase revenue?
Eighty-five percent of Gen Z buys on the basis of brand values or two-thirds of all people.
I’m not talking about Patagonia or Ben & Jerry’s, brands that are on the edge . . . There are brands like Dove that have taken on issues like real beauty — they choose values for a brand that align with the business model. It’s to sell products. Take an issue and magnify it.
How do you decide what values make sense for a brand to embrace?
JPMorgan Chase & Co. is granting up to $5,000 to anyone who is a low-income firsttime homeowner, oriented to closing the gap in home ownership. That’s smart — putting money where your mouth is.
You think marketers can be targeting a clientele with unmet needs?
Audience is looking for brands to stand in for government . . . and if people feel that a company is doing that, they’ll reward the company with purchases.
You think branding is integral to a company’s revenue?
It’s the wrong advice to cut branding at this moment. Let’s take IKEA. They needed more footfall, so they had a buyback Friday where they bought back furniture and then increased their footfall like crazy — it was a business problem we solved. The brand is the tip of the spear for how companies are viewed.
Younger generations want to know where things are produced, was it sustainably done. Otherwise, I’m going to blast it on social media.
Smart companies will make themselves face forward on societal issues that make sense for the brand. If it’s a reach, consumers will question it.
What are some bad examples of brands taking on issues?
The Pepsi commercial where Kendall Jenner supposedly ended racial tension.
It’s a fine line though. Do you think taking a stance on issues opens up companies to more scrutiny?
Let’s take mayonnaise. For Unilever, they’re using mayonnaise to market “end food waste.” At a time when food inflation is crazy, that is incredibly intelligent. They are sourcing the soybean oil from 400 farms in Iowa that use regenerative agriculture and aren’t using pesticides so an edge consumer will decide to start buying Hellmann’s because it’s more sustainable.
Otherwise, new, young brands will flank established brands. Taking on food waste helps you get attention with a new audience.
So that’s how institutional players can compete with nascent brands? Kaepernick
Absolutely, the Nike-Colin play made them feel like a small brand. That’s the jiujitsu you have to do on upstart brands. It’s a brand halo for companies.
What about a brand that’s come under scrutiny recently, that’s anathema to the zeitgeist?
Shell is a good example — they should talk about aviation fuel that’s plant-based, their e-car series. The likelihood of speeding after getting in a fight with your significant other, goes up. So now we have a p.r. campaign: If you’ve had a fight, go for a walk before you drive. It’s about brand trust and brand reputation. This gives brands a different cool factor.
What about companies pulling out of Russia?
One thousand companies got out of Russia in three months; in South Africa, it took 20 years for 200 companies to escape. The extent to which business listened to people saying, “I’m not buying this product.” Nearly 40% of people said they’d change their purchases based on whether or not a company is in Russia. My argument is that brands need to be agile.