Ad 2 San Diego Cause Marketing Night

Cause MarketingPartnerships…The Fifth “P”

Ad 2 San DiegoAugust 27, 2009

Christine Guardia, Cause Cultivator, KooDooZ

What is CSR?

Source: www.industryplayer.com/corporate_social_responsibility.php

Corporate Sponsorship• 41% of Americans said companies should increase their spending on cause marketing

•13% of Americans said companies should increase their spending on sports sponsorships

•20% of Americans said companies should increase their spending on cultural events

Sources: IEG 2009 Estimate and Performance Research Survey

Cause Marketing Spending

Sources: Cause Marketing Forum and IEG

What is Cause Marketing?Marketing involves brands and

nonprofit organizations working together for their mutual benefit

Not the same as corporate giving or philanthropy

Win-Win-Win

Cause Marketing BenefitsNonprofit Brand Consumer

Increased public awareness

Increased brand recognition

Increased knowledge of cause

More funding More sales More purchasing power

Enhanced reach

Enhanced public relations

Enhanced personal connection

Types of Cause Marketing: #1 Cause Promotion

Honey is used in more than 40% of Häagen-Dazs flavors

Campaign for Real Beauty

targets women and

girls

Heart disease is #1 killer of women

in U.S. - not only a “man’s disease”

Key: Fit - good fit yields results up to 10 times better than a poor fit

Types of Cause Marketing: #2 Portion of the Proceeds

$1.7M for Statue of Liberty in

1983 and 28% increase in

AMEX card use

$1 donated for each WWF Collectibear sold; $1.8M as of 2008

In three years, raised $130M and

impacted 4M people

Key: Transparency - disclose the $ or % given to the nonprofit/cause

Types of Cause Marketing: #3 BOGO (Buy One Give One)

Over 140,000 shoes donated

Over 200,000 jeans donated

Over 31M life-saving vaccines

provided

Key: Can be campaigns, but social entrepreneurs building into biz model

Traditional vs. Cause Marketing: Partnerships…The Fifth “P”

85% indicated it is OK for companies to include a cause in marketing

79% were likely to switch to a cause brand if comparable in price & quality

38% had purchased a cause-related product in the past 12 months

Source: 2008 Cone Cause Evolution Study

S.M.A.R.T.E.R. Approach Strategy Marketing Plan Alignment Relationships Transparent Evaluate  Revise and Repeat 

Source: Bruce W. Burtch, CMO Club podcast 8/19/09

Gen Y / Millennials / Gen NETSpend nearly $200B annually More receptive to cause marketing:

• 88% were likely to switch to a cause brand if comparable in price & quality

• 51% had purchased a cause-related product in the past 12 months

• 41% prefer message includes the percentage of the purchase of each product that will go to the nonprofit

Sources: http://www.onpoint-marketing.com/generation-y.htm and 2008 Cone Cause Evolution Study

New Frontier: Social Media 10% of all time spent on the internet is on

social media sites  It took radio 38 years to reach 50 million

listeners, TV 13 years to reach 50 million viewers, but in less than nine months, Facebook added 100 million users

YouTube is likely to show over 75 billion video streams to around 375 million unique visitors during 2009 

Source: http://econsultancy.com/blog/4402-20+-more-mind-blowing-social-media-statistics

FacebookFacebookCauses

FacebookPages

Twitter 4 Good

Twestival: 200+ worldwide tweetups on 2/12/09 raised $250,000 for charity: waterTweetsGiving: Raised $11,000 for school in Tanzania from 98% new donors12for12K: Trying to raise $12,000 per month for 12 different charities in 2009

Pledge to End Hunger: 4,800 pledges signed and $28,000 raised primarily via online tools

Crowd-Sourced PhilanthropyIn its second year, awarded $2.5M to winning projects

167,000 Facebook users voted to allocate $3M to 10

nonprofits

Five organizations will receive $20,000

Contact InformationWebsite:  www.KooDooZ.com

Blog: http://KooDooZ.wordpress.com/

Twitter: @Cause4KDZ (Cause Cultivator)

@KooDooZ (Founder)

@ChallengeKDZ (Partner Challenges)